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How information gives you competitive advantage

Presented by : sandeep Gunjan

Abhinabh ShikharRishabh Jain

Sidhant Serawat

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Introduction

Information revolution It changes industry structure and therefore the rule of

competition

it creates competitive advantage by giving companies new way to outperform their rivals

It spawns whole new businesses

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Discussion Why IT has acquired significance and how it is affecting all

business

How the new technology changes the nature of competition

Outline a procedure that managers can use to assess the role of IT in their business

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Transforming the value chain• It generates more data about activities and products .

Information that was not available before . There is a higher information content now

• It enhance the linkage between both inside and outside the company

• It allows companies to coordinates activities in widely dispersed geographical location

Strategic Significance (cont.)

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Transforming value chainInformation technology is permeating the value chain at every point, transforming the way value activities are performed and the nature of the linkages among them.

Support activities

Primary activities

Firm infrastructureHuman resource management

Technology development

Procurement

Marketing and sales

Inbound logistics

Operations Outbound logistics

Service

Automated warehouse

Flexible manufacturing

Automated order processing

Telemarketing

Remote terminals for salespersons

Remote servicing of equipment Computer scheduling

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Changing the nature of competition

Information technology is changing the rules of competition in three ways:

– Changing industry structure– Creating competitive advantage– Spawning new businesses

Changing the nature of competition

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Bargaining power of suppliers

Bargaining power of buyers

Threat of new entrance

Threat of substitute product or services

Rivalry among existing competitors

Five competitive forces

Changing industry structure

Changing the nature of competition

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Changing the nature of competition Competitive Advantage Cost advantage Differentiation advantage

Cost lowering: wide set information provides opportunity to reduce excessive expense at any part of value chain

Enhancing differentiation: IT make it possible to customize the product.