CIS 2010 Chp. 2 Notes
CIS 2010 Chp. 2 Notes CIS 2010
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This 4 page Class Notes was uploaded by Hagar Notetaker on Thursday September 1, 2016. The Class Notes belongs to CIS 2010 at Georgia State University taught by James Senn in Fall 2016. Since its upload, it has received 138 views.
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Date Created: 09/01/16
CIS 2010 Hagar Baruch 8/30/16 Chapter 2 2 ways to view enterprise 1. Operationally a. How efficiently it carries out activities i. Transactions and business processes This is business strategy 2. Strategically a. Where it chooses to compete & how effective it is as competitor Competitive Advantage & Strategic Info Systems (IS) Competitive Strategy o Statement identifying business’s approach to compete, its goods, & plans and policies required to attain those goods Strategic IS o IS that helps an organization achieve & maintain competitive advantage Tools Competitive Advantage Model o Defines generic company competitive strategies available to enterprise Value Chain o Tools to describe & analyze sequence of activities through which the organization’s inputs transformed to valuable outputs & reveal options to alter costs or distinguish firm from competitors Competitive forces model o Tool for examining structure of an industry, including current power structure & threats that could change industry’s attractiveness 5 competitive forces Strategies for Competitive Advantage Cost leadership o Can I reduce my costs below those of competitors? Differentiation o I am better because I’m different Innovation o I’m doing something new & you can’t catch up Operational effectiveness o I can do same thing more efficiently than you Customer-Orientation o I treat my customers better than you do CIS 2010 Hagar Baruch 8/30/16 Cost Leadership Differentiation Focus: Lowest cost Better Industry across that product/service Wide industry across industry Focus: Lowest cost Better Industry within industry product/service Segment segment within segment 2.4 Value Chain Model Value chain o Sequence of activities through which organization’s inputs are transformed into valuable points Primary Activities o Related to production & distribution of products & services Support Activities o Support primary activities contributing to competitive advantage 5 Primary activities for manufacturing 1. Inbound logistics a. Inputs i. Quality control receiving, supply schedule, etc. 2. Operations Can change based off company a. Manufacturing and testing 3. Outbound logistics 4. Marketing & sales 5. After sale services CIS 2010 Hagar Baruch 8/30/16 4 principal support activities 1. Firm’s infrastructure a. Finance, accounting, management 2. Human resource management 3. Product & tech development a. R & D 4. Procurement Competitive Forces 1. Threat of entry of new competition 2. Bargaining power of suppliers 3. Bargaining power of customers/buyers 4. Threat of substitute products or services 5. Rivalry among existing firms within industry Threats of new entrants Rivalry Supplier Power Your Company Competitor Buyer Power Threats of substitute products How would you counter? 1. Switching costs a. Lock in preferred customers 2. Entry barriers a. Deter any potential competitors CIS 2010 Hagar Baruch 8/30/16 Examples: 1. Bargaining power of customers a. Strong: Toyota’s purchase of auto paint b. Weak: Your power over procedures & policies of your university 2. Threats of substitutes a. Strong: Frequent traveler’s choice of auto rental b. Weak: Patient’s using only drug affective for their disease 3. Bargaining power of supplier a. Strong: Students buying gas b. Weak: grain farmer in surplus years 4. Threat of new entrants a. Strong: Corner latte stall b. Weak: Professional football team 5. Rivalry a. Strong: used car dealer b. Weak: internal revenue service 2.5 Business-Info Tech Alignment Tight integration of IT o Function with organization’s strategy, mission, & goals 6 characteristics of excellent business-IT alignment 1. IT viewed as engine of innovation a. Continually transforming business & often creating new revenue streams 2. Organizations view their internal and external customers & their customers service function as supremely important 3. Organizations rotate business & IT professionals across departments & job functions 4. Organizations provide overarching goals that are completely clear to each IT & business 5. Organizations ensure & IT employees understand how company makes (or loses) money 6. Organizations create a vibrant & inclusive company culture Major reasons Bus-IT alignment doesn’t occur 1. Business managers & IT managers have different objectives 2. Business & IT departments are ignorant of other group’s expertise 3. Lack of communication
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