i nformation s ystems for c ompetitive a dvantage chapter 2
TRANSCRIPT
INFORMATION SYSTEMS FOR COMPETITIVE ADVANTAGE
Chapter 2
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SIX MAJOR ROLES AND GOALS OF IT 1. Increase employee productivity by reducing time,
errors and costs using 2. Enhance decision making 3. Improve team collaboration 4. Create business partnerships and alliances 5. Enable global reach all over the world taking into
consideration the culture of each nation or society. 6. Facilitate organizational transformation as the
organization evolves and responds to the ever-changing marketplace.
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• What sources of competitive advantage can you identify the New England Patriots have by using information technology?
• Are these long term, sustainable competitive advantages?
• From our list of Roles and goals of Technology, what does the IS of the NFL do?
NFL Coaches
NFL Coaches
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THREE PRIMARY USES OF INFORMATION SYSTEMS
______________Providing support to complete a task faster, more cheaply, and perhaps with greater accuracy and/or consistency
______________Providing support to complete a task faster, more cheaply, and perhaps with greater accuracy and/or consistency
____________________________Providing support to improve day-to-day operations by creating, acquiring, and transferring knowledge
____________________________Providing support to improve day-to-day operations by creating, acquiring, and transferring knowledge
____________________________Providing support in a way that enables the firm to gain or sustain competitive advantage over rivals
____________________________Providing support in a way that enables the firm to gain or sustain competitive advantage over rivals
WHY USE INFORMATION SYSTEMS
IS FOR AUTOMATING: DOING THINGS FASTER
Styles of Processing
• Manual Processing• Technology Supported Processing• Fully Automated Processing
AutomationProviding support to complete a task faster, more cheaply, and perhaps with greater accuracy and/or consistency
AutomationProviding support to complete a task faster, more cheaply, and perhaps with greater accuracy and/or consistency
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BENEFITS OF AUTOMATION – LOAN EXAMPLE
Table 2.1
IS FOR ORGANIZATIONAL LEARNINGDOING THINGS BETTER
Organizational Learning (Informating)Providing support to improve day-to-day operations by creating, acquiring, and transferring knowledge
Organizational Learning (Informating)Providing support to improve day-to-day operations by creating, acquiring, and transferring knowledge
____________________________
______________
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ORGANIZATIONAL LEARNING EXAMPLE
IS FOR SUPPORTING STRATEGYDOING THINGS SMARTER
Sources of Competitive Advantage• best-made ___________• superior ______________ service• lower cost than rivals• proprietary ______________ technology• shorter lead-times in ___________ & testing new products• brand name and ______________• more ___________ for their money
____________________________Providing support in a way that enables the firm to gain or sustain competitive advantage over rivals
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STRATEGY
IS FOR COMPETITIVE ADVANTAGE
IS and Value Chain Analysis The roles of IS in Value Chain Analysis The technology strategy Fit
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VALUE CHAIN ANALYSIS
Is a process of analyzing an organization’s activities to determine where value is added to products and/or services and what costs are incurred in doing so.
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INFORMATION SYSTEMS ROLES IN THE VALUE CHAIN
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1. Describe Net Flix’s competitive advantage and what are the sources of that competitive advantage ?
2. Discuss where you feel Net Flix uses of information systems helps them add value in the Value chain.
Net FlixNet Flix
MAKING THE BUSINESS CASE FOR A SYSTEM
Business CaseIdentifying the ___________ provided by an information system
Business Case Development IssuesSeveral common issues create difficulty in defining business
cases for information systems including:• Measurement ___________• Time Lags• ___________ • Mismanagement
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MAKING THE BUSINESS CASE FOR A SYSTEM
___________ Lags• Describes the ___________ in time from when the IT
expenditure was made and when the ___________ are realized
• Why?
___________ Problems• benefits are difficult to pinpoint --may be ___________ the
wrong things• Expected ___________ not always defined in advance, so they
are never seen (they must be identified to measure).• The biggest increases in productivity come from system
effectiveness but many metrics focus on system efficiency
___________ Problems• benefits are difficult to pinpoint --may be ___________ the
wrong things• Expected ___________ not always defined in advance, so they
are never seen (they must be identified to measure).• The biggest increases in productivity come from system
effectiveness but many metrics focus on system efficiency
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MAKING THE BUSINESS CASE FOR A SYSTEM
___________ IS may be beneficial to individual firms, but not for an entire
industry or the economy as a whole • Strategic information systems may help one firm increase its
market share at the expense of others (redistributing) • Expectations have increased as technology has become
prevalent. We forget the gains that have been realized.
___________ IS has not been ___________ and ___________ well• Some believe that people simply build bad systems,
implement them poorly, and rely on technology fixes for problems that require joint technology/process solutions
• Inappropriate IS investments can mask or even increase organizational slack and inefficiency
MAKING A SUCCESSFUL BUSINESS CASE
Individuals in organizations generally use one, or in most cases, a combination of the following argument types to justify investments in information systems
Based on ___________
Based on _________
__
Based on _________
__
BUSINESS CASE ARGUMENTS BASED ON ___________
Arguments based on beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on
BUSINESS CASE ARGUMENTS BASED ON ___________
Arguments based on the notion that if the system is not implemented, the firm will lose out to the competition or, worse, go out of business
BUSINESS CASE ARGUMENTS BASED ON FEAR
Factors to consider
Industry factors RegulationNature of
competition
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THE FIVE FORCES MODEL – ANALYZE COMPETITIVE FORCES IN AN
INDUSTRY
How IS can have a factor in the industry
BUSINESS CASE ARGUMENTS BASED ON ___________
Arguments based on data, quantitative analysis and/or indisputable factors
PRESENTING THE BUSINESS CASE
Know the _________
• The IS manager• Company executives
Convert to _________terms
Devise _________ variables
Measure what is _________to management
Assessing value for IT _________
Changing mindsets about IS
COMPETITIVE ADVANTAGE IN BEING AT THE CUTTING EDGE
The need for constant IS _________
The cutting edge vs. the
_________ edge
Requirements for being on the _________ edge
_________ the new, new thing
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UTZ CHIPS CASE ANSWER THE FOLLOWING Analyze the industry that UTZ is in
using the porter model, is it a good industry to be in?
What competitive advantage do you feel Utz has? How does information play into that competitive advantage
Where in the value chain should they next upgrade their use of technology for the biggest biggest gains – how would you present that to management?