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IS 2080C Prof Rapine Week 2 Notes

by: Brady Zuver

IS 2080C Prof Rapine Week 2 Notes IS 2080C

Marketplace > University of Cincinnati > Business > IS 2080C > IS 2080C Prof Rapine Week 2 Notes
Brady Zuver
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These notes go over chapter 2 where we discussed Pressures faced by businesses, the responses and IT support that could be received, Competitive advantages and Strategic Information Systems, and th...
IS 2080C
Class Notes
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This 5 page Class Notes was uploaded by Brady Zuver on Wednesday August 31, 2016. The Class Notes belongs to IS 2080C at University of Cincinnati taught by Prof.Rapien in Fall 2016. Since its upload, it has received 33 views. For similar materials see IS 2080C in Business at University of Cincinnati.


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Date Created: 08/31/16
IS 2080C Prof. Rapine Chapter 2 Section 2.1 Business Pressures, Organizational Responses and IT Support 1. Market Pressures a. Globalization and Strong Competition i. Change in the terms of relative size of the world 1. World is “getting smaller” due to advances in Technology and as world trade increases 2. 3 “Phases” of Globalization a. Phase 1: 1492-1800 i. European Colonization, Rise of Exploration ii. Brawn, Horsepower, Wind Power, Steam Power b. Phase 2:1800-2000 i. Multinational Companies drove change 1. First Half: Global integration through transportation such as Railroad and Steam Engine 2. Second Half: Through integration with falling telecommunications costs with telephone, PC, satellites and fiber- optic cable c. Phase 3: 2000-Now i. Competitive Playing field 1. Software and Global Fiber-optic and wireless networks b. Friedman’s 10 Flatteners i. Fall of Berlin wall ii. Netscape Goes Public 1. Stocks grew 1000% iii. Development of work-flow software iv. Uploading 1. Allowing information to get out extremely fast. a. Do not have to wait till the 6 o’clock news for info v. Outsourcing 1. Sending work outside of your company a. Not necessarily out of country vi. Offshoring 1. Sending jobs out of your country’s boarders vii. Supply Chaining 1. Ensuring suppliers are providing quality products to you viii. Insourcing 1. Bring jobs into company that were not originally ther ix. Informing 1. Making employees know all about parts of their jobs 2. Not relying on Managers- Managers become facilitators x. Information and Communication Technologies 2. Changing nature of the Workforce a. More Diverse i. Women, Minorities, Persons with Disabilities ii. Telecommuters 1. Working from home- via phone, internet, etc. b. Powerful Customers i. Consumer Sophistication ii. More Knowledgeable iii. More Options 3. Technology Pressure a. Technological Obsolescence and Innovation i. Creates Substitute products, alternative options ii. Better Quality b. Information Overload i. Rapid Rate of New Info ii. Ease of Duplication or Transmission of Data iii. Increase in Channels 1. Thousands of TV channels now, YouTube Channels, Social Media Channels iv. Low signal-to-noise ratio 1. Lots of noise, not very much signal v. Large amounts of historical data to sift 1. So much old information it is impossible to retain it all vi. Lack Methods for comparing and processing different kinds of info 1. Is it possible to compare a Video and a Blog? How do you decide which one is better? 4. Societal/Political/Legal Pressures a. Social Responsibility- Why Practice? Consumers more likely to buy from Socially Responsible than one who is not i. “Go Green” Carbon footprint management 1. Facilities must be designed and managed in an environmentally friendly way ii. International and US environmental Laws b. Digital Divide i. One laptop per child initiative ii. Solar-powered Tablets in Ethiopia c. Government Regulation and Deregulation i. Sarbanes Oxley 1. Financial Reporting Standards improved ii. US Patriot Act 1. Reduced Restrictions intelligence gathering, detainment, deportation, financial regulations. iii. Gramm-Leach-Bailey Act 1. Allowed Financial Institutions to consolidate a. Commercial Banks, Investment Banks, Securities Firms and Insurance Companies iv. Health Insurance Probability and Accountability Act (HIPPA) a. Set standards for electronic healthcare d. Protection Against Terrorist Attacks i. e. Ethical Issues i. Email Monitoring (Privacy) 1. Your UC email is owned by UC, can be accessed by UC at any time ii. Consumer Data Collection 1. Google, Apple constantly collecting data iii. Copyright Protection and Infringement 1. Protected by US standards, not necessarily protected worldwide iv. Digital Rights Management 5. Responses to Business Pressures a. Strategic Systems i. Create processes that push back on issues that your company might face b. Customer Focus i. Focusing on customers rather than other aspects of the business c. Make-to-order and Mass Customization i. NIKEiD, Dell, Bodymetrics d. E-business and E-commerce Chapter 2.2 Competitive Advantage and Strategic Information Systems 1. Porter’s Competitive Forces a. Rivalry i. Between your organization and competing organizations b. Threat of Entry of new competitors i. High when easy to enter Market ii. Need barriers to entry 1. Licenses are an example of a barrier iii. Internet increased threat 1. Internet allows easier access into industries c. Threat of Substitute Products i. High when there are many substitutes ii. Information-Based industries at greatest risk 1. Continual new developments in technology 2. If no Boogle, can use Bing, Yahoo! or other search engines d. Bargaining Power of Buyers i. High when buyers have many choices ii. Internet Increased buyer power 1. Allows customers to shop many companies from home iii. Switching costs 1. Cancellation fees on cell phone services a. More likely to stay to avoid fees e. Bargaining Power of suppliers i. High when buyers have few choices 1. Electricity and water in Cincinnati ii. Internet Impact is mixed 2. Strategies for Comparative Advantage a. Cost leadership (Walmart) i. Strategy that gets products cheapest ii. Buying so much in bulk they get better deals on goods b. Differentiation (Southwest Airlines) i. No seat assignments, first come first serve seating ii. Rich and poor treated the same 1. No first class iii. No baggage fees iv. Flight attendants c. Innovation (Citibank) i. ATM d. Operational effectiveness (Amazon) i. Same day delivery to Amazon Stores, Next Day (or 2 Day) shipping e. Customer orientation (Dell) Section 2.3 Business – IT Alignment 1. Alignment Characteristics a. IT viewed as an engine to continually transform business, creating new revenue streams i. Innovating new things for the business b. Organizations view internal and external customers and their customer service functions as supremely important i. Customers, Employees, Suppliers, Etc. must be serviced best and are happy 1. Happy customers more likely to return and even promote c. Rotate business and IT professionals across different job functions and departments i. To develop and understanding of what is possible in IT d. Provide overarching goals that are clear to each IT and business employees e. Ensure the IT employees understand how the companies make and lose money f. Create a vibrant and inclusive company culture i. Be able to work with each other g. Only 16% of C-level executives say their business and IT are aligned i. Age gap, older executives might not understand new technologies causing misalignment 2. Closing the Gaps a. Provide examples of business pressures and describe IT responses b. Identify competitive forces described by Porter, and explain web impacts of each c. Describe strategies adopted to counter competitive forces and achieve a competitive advantage d. Define business-IT alignment, describe the characteristics of effective alignment


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