Pertemuan 25 • Materi : – Understanding e-Business Strategic and Tactical • Buku Wajib & Sumber Materi : – Turban, Efraim, R. Kelly Rainer and Richard E. Potter (2003). Introduction to Information Technology. Second Edition. John Wiley & Sons, Inc. Bab 13
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Pertemuan 25 Materi : –Understanding e-Business Strategic and Tactical Buku Wajib & Sumber Materi : –Turban, Efraim, R. Kelly Rainer and Richard E. Potter.
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Pertemuan 25
• Materi :– Understanding e-Business Strategic and
Tactical
• Buku Wajib & Sumber Materi :– Turban, Efraim, R. Kelly Rainer and Richard
E. Potter (2003). Introduction to Information Technology. Second Edition. John Wiley & Sons, Inc. Bab 13
Strategic Information Systems• Strategic Information Systems :
systems that support or shape an organization’s competitive strategy
• May significantly change the way the business operates
• Makes substantial contribution toward achieving strategic goals
• May increase performance and productivity significantly
Strategic Information Systems• Outward focus: aimed at direct competition
in an industry
• Inward focus: enhance the competitive position of the firm through…– Increasing employee productivity– Improving teamwork– Enhancing communication
• Strategic Alliances : two or more companies share an inter-organizational system for mutual benefit
Competitive Strategy & IT• Strategy is the creation of a unique and
valuable position, involving a set of activities different than what rivals do
• IT creates competitive advantage by giving companies new ways to outperform their rivals– Create new applications– Enable reengineering of business processes– Enable innovation– Provide competitive intelligence
Competitive Intelligence on the Internet
Intelligence Search Strategy Description
Review competitor’s Web sites Reveal information about marketing information
Analyse related newsgroups Find out what people think about a company and its products
Examine publicly available financial documents
By entering a number of databases and analyse findings
Do market research at your own Web site
Pose questions to Web site visitors
Use an information delivery service to gather news on competitors
Find what is published on the Internet about competitors
Use corporate research companies Provide information ranging from risk analysis to stock market analysts’ reports about competitors
Porter’s Competitive Forces Model and IT
• Porter’s Competitive Forces Model– Competition - at the core of a firm’s success or
failure– Used to develop strategies for companies to
increase their competitive edge– Demonstrates how IT can enhance the
competitiveness of corporations– 5 major forces:
Threat of entry of new competitors Threat of substitute products or services
Bargaining power of suppliers Bargaining power of customers (buyers)
Rivalry among existing firms in the industry
Porter’s Five Forces Model
Porter’s Competitive Forces Model and IT
• Response Strategies (Per Porter and Others) – may be supported in part by IT– Cost leadership strategy - producing at lowest cost– Differentiation strategy - being unique– Focus strategy - selecting a narrow-scope segment– Growth strategy - increasing market share– Alliances strategy - working with business partners– Innovation strategy - developing new products– Internal efficiency strategy - improving the manner
in which business processes are executed– Customer-oriented strategy - concentrating on
making customers happy
Impact of IT on Competitive ForcesKey Forces Affecting
the IndustryBusiness
ImplicationsPotential IT Responses
Threat of new entrants
• Additional capacity• Reduced prices• New basis for competition
• Exploit existing economies of scale
• Differentiate products / services,
• Control distribution channels• Segment markets
High power suppliers
• Raise prices/costs• Reduce quality of supply• Reduce availability
• Implement sourcing systems• Extend quality control into
suppliers’ operations• Use forward planning with
suppliersHigh power buyers
• Forces prices down• Higher quality
demanded• Service flexibility
required• Encourage competition
• Differentiate and improve products/ services
• Increase switching costs of buyers
• Facilitate buyers product selection
Key Forces Affecting the Industry
Business Implications
Potential IT Responses
Substitute products threatened
• Limits potential and profit
• Imposes price ceilings
• Use differentiation strategy• Incorporate IT into
product, service, or method of provision
Intense competition from rivals
• Price competition• Need to develop new
products and services• Distribution and
service become critical
• Customer loyalty required
• Improve price/performance• Redefine products and
services to increase value• Redefine market segments• Differentiate products and
services in distribution channels and to consumers
• Get closer to the end consumer - understand the user requirements
Impact of IT on Competitive Forces
The Need for Organizational Change
• Organizational structures and processes established in the Industrial Revolution are no longer effective, due to…– Globalization– Pressure for rapid change– Increasingly demanding customers– Opportunities afforded by IT
• Focus on vertical, functional organization is inappropriate
• Need integration that spans departmental and organizational boundaries
Business Process Reengineering• Solution based on fundamental rethinking and
radical redesign of business processes to achieve dramatic improvements in measures of performance
• Elements:– Job Enrichment– Employee Empowerment– Process Simplification– Mass Customization– Reduced Cycle Time
Changes in Work Rules Brought by ITOld Rule
Intervening Technology
New Rule Information appears in
only one place at one time
Shared databases, client/server architecture, electronic mail
Information appears simultaneously wherever needed
Only an expert can perform complex work.
Expert systems, neural computing Novices can perform complex work.
Managers make all decisions.
Decision support systems, enterprise support systems, expert systems
Decision making is part of everyone’s job
Field personnel need offices to receive, send, store, and process information.
Wireless communication and portable computers, information highways, electronic mail
Field personnel can manage information from any location.