Competing with Information Technology

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Learning Objectives. Identify several basic competitive strategies and explain how they can use information technologies to confront the competitive forces faced by a business.Identify several strategic uses of Internet technologies, and give examples of how they give competitive advantages to a business.Give examples of how business process reengineering frequently involves the strategic use of Internet technologies..
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Competing with Information Technology

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1. Competing with Information Technology Click to add notesClick to add notes

2. Learning Objectives Identify several basic competitive strategies and explain how they can use information technologies to confront the competitive forces faced by a business. Identify several strategic uses of Internet technologies, and give examples of how they give competitive advantages to a business. Give examples of how business process reengineering frequently involves the strategic use of Internet technologies.

3. Learning Objectives 4. Identify the business value of using Internet technologies to become an agile competitor or to form a virtual company. 5. Explain how knowledge management systems can help a business gain strategic advantages.

4. Fundamentals of Strategic Advantage Strategic IT Supports Efficient Business Operations Workgroup or Enterprise Collaboration Effective Business Decisions Real World Case 1- GE, Dell, Intel, and Others Emphasis on the use of IT to develop strategies to create a competitive advantage in a business. Give examples of IT: 1. Supporting efficient business operations 2. Enhancing collaboration between workgroups or enterprise wide 3. Guiding effective business decision making Click Arrow to go to Real World Case 1-GE, Dell, Intel, and othersEmphasis on the use of IT to develop strategies to create a competitive advantage in a business. Give examples of IT: 1. Supporting efficient business operations 2. Enhancing collaboration between workgroups or enterprise wide 3. Guiding effective business decision making Click Arrow to go to Real World Case 1-GE, Dell, Intel, and others

5. Competitive Strategy Concepts Strategic Information Systems Support Competitive Position Can Be Any Kind of Information System Gain Competitive Advantage Reduce a Competitive Disadvantage Strategic Advantage Demonstrate how IS strategies can enhance a competitive position Give examples how IS can be used to gain a competitive advantage or reduce a disadvantage.Demonstrate how IS strategies can enhance a competitive position Give examples how IS can be used to gain a competitive advantage or reduce a disadvantage.

6. Strategic Advantage PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Explain the role of each of the following and how they integrate into the solution to create a competitive advantage: Competitive Advantage is created or maintained with the company succeeds in performing some activity of value to customers significantly better than does its competition. Competitive advantage can be developed by following one or more of these strategies: Cost Leadership. Differentiation. Innovation. Growth. Alliances. The five generic competitive forces that operate in the firm's relevant environment are: Threat of New Entrants. Bargaining Power of Suppliers. Rivalry of Competitors. Bargaining Power of Customers. Threat of Substitutes.PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Explain the role of each of the following and how they integrate into the solution to create a competitive advantage: Competitive Advantage is created or maintained with the company succeeds in performing some activity of value to customers significantly better than does its competition. Competitive advantage can be developed by following one or more of these strategies: Cost Leadership. Differentiation. Innovation. Growth. Alliances. The five generic competitive forces that operate in the firm's relevant environment are: Threat of New Entrants. Bargaining Power of Suppliers. Rivalry of Competitors. Bargaining Power of Customers. Threat of Substitutes.

7. Strategic Advantage Other Competitive Strategies Lock in Customers Lock in Suppliers Switching Costs Barriers to Entry Leverage Investment in IT Emphasis on how IT developed competitive strategies can help forge relationships with customers as well as suppliers Give examples where cost reductions or other savings may create a preference relationship between partnersEmphasis on how IT developed competitive strategies can help forge relationships with customers as well as suppliers Give examples where cost reductions or other savings may create a preference relationship between partners

8. Wal-Mart and Others Satellite Network Linking all Point-of-Sale Terminals Immediate Sales and Inventory Information Extended to Customers and Suppliers Interenterprise Information Systems Stockless Inventory Replenishment Systems Strategic Advantage Describe how Wal-Mart and other firms with a superior understanding of IT uses successfully link all aspects of their business ranging from customers to suppliers and enhancing enterprise decision makingDescribe how Wal-Mart and other firms with a superior understanding of IT uses successfully link all aspects of their business ranging from customers to suppliers and enhancing enterprise decision making

9. Value Chain & Strategic IT Support Processes Administrative Coordination and Support Services Human Resources Management Technology Development Procurement of Resources Explain how IT provides support for the decisions required by each of these vital business functionsExplain how IT provides support for the decisions required by each of these vital business functions

10. Value Chain & Strategic IT Primary Business Processes Inbound Logistics Operations Outbound Logistics Marketing and Sales Customer Service Give examples of each of the above primary business processes that enhance the value chainGive examples of each of the above primary business processes that enhance the value chain

11. Value Chain & Strategic IT PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK The Value Chain Concept views a firm as a series of basic activities (the "chain") that add value to its products and services that support a profit margin for the firm. For each activity, the role of strategic information systems (SIS) can contribute significantly to that activity's contribution to the value chain: Support Processes. Support activities create the internal infrastructure that provides direction to and support for the specialized work of primary activities: Management and Administrative Services. The key role of SIS here is in automated office systems. Human Resources Management. SIS role: Employee Skills Database. Technology Development. SIS role: Computer-Aided Design. Procurement of Resources. SIS role: EDI with suppliers. Primary Business Processes. These activities directly contribute to the transformation process of the organization. Inbound Logistics. SIS role: Automated Warehousing, JIT. Operations. SIS role: Computer-Aided Manufacturing. Outbound Logistics. SIS role: Online Data Entry. Marketing and Sales. SIS role: Market Analysis. Service. SIS role: Diagnostic Expert System.PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK The Value Chain Concept views a firm as a series of basic activities (the "chain") that add value to its products and services that support a profit margin for the firm. For each activity, the role of strategic information systems (SIS) can contribute significantly to that activity's contribution to the value chain: Support Processes. Support activities create the internal infrastructure that provides direction to and support for the specialized work of primary activities: Management and Administrative Services. The key role of SIS here is in automated office systems. Human Resources Management. SIS role: Employee Skills Database. Technology Development. SIS role: Computer-Aided Design. Procurement of Resources. SIS role: EDI with suppliers. Primary Business Processes. These activities directly contribute to the transformation process of the organization. Inbound Logistics. SIS role: Automated Warehousing, JIT. Operations. SIS role: Computer-Aided Manufacturing. Outbound Logistics. SIS role: Online Data Entry. Marketing and Sales. SIS role: Market Analysis. Service. SIS role: Diagnostic Expert System.

12. Using IT for Strategic Advantage Strategic Uses of IT Major Competitive Differentiator Use IT to Develop Competitive Advantage Real World Case 2- Intec Engineering: Emphasis on showing how IT can differentiate competitive firms granting a competitive advantage to the most astute Click Arrow to go to Real World Case 2 ? Intec EngineeringEmphasis on showing how IT can differentiate competitive firms granting a competitive advantage to the most astute Click Arrow to go to Real World Case 2 ? Intec Engineering

13. Using IT for Strategic Advantage Building a Customer-Focused Business Building Customer Value Fast Response to Individual Customer Needs Use of Internet, Intranets, and Extranets A key strategy for becoming a successful e-business is to maximize customer value. The focus on customer value recognizes that quality rather than price becomes the primary determinant in a customer?s perception of value. Technologies like intranets, the Internet, and extranet websites create new channels for interactive communications within a company, with customers, and with suppliers, business partners, and others in the external business environment, thereby, encouraging cross-functional collaboration with customers in product development, marketing, delivery, service and technical support.A key strategy for becoming a successful e-business is to maximize customer value. The focus on customer value recognizes that quality rather than price becomes the primary determinant in a customer?s perception of value. Technologies like intranets, the Internet, and extranet websites create new channels for interactive communications within a company, with customers, and with suppliers, business partners, and others in the external business environment, thereby, encouraging cross-functional collaboration with customers in product development, marketing, delivery, service and technical support.

14. Using IT for Strategic Advantage Hilton Hotels Hilton.Com Reservation System Services Tailored Automatically to Last Visit High Level of Personalization Deeper Personal Relationship Direct-to-Customer Business Model Via the Web Discuss how the Hilton.com reservation system provides a high level of personalization and is used to develop a deeper more personal relationship with the customer-even over the Web.Discuss how the Hilton.com reservation system provides a high level of personalization and is used to develop a deeper more personal relationship with the customer-even over the Web.

15. Building Customer Value PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK A successful Customer-Focused e-business attempts to ?own? the customer's total business experience through such approaches as: Letting the customer place orders directly, and through distribution partners Building a customer database that captures customers' preferences and profitability, and allowing all employees access to a complete view of each customer. Letting customers check order, history and delivery status Nurturing an online community of customers, employees, and business partners. PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK A successful Customer-Focused e-business attempts to ?own? the customer's total business experience through such approaches as: Letting the customer place orders directly, and through distribution partners Building a customer database that captures customers' preferences and profitability, and allowing all employees access to a complete view of each customer. Letting customers check order, history and delivery status Nurturing an online community of customers, employees, and business partners.

16. Reengineering Business Processes Reengineering is more than automating business processes to make modest improvements in the efficiency of business operations. Reengineering is a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed, and service. Reengineering is more than automating business processes to make modest improvements in the efficiency of business operations. Reengineering is a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed, and service.

17. Order Management Process PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Describe the stages in the order management process relating them to the respective business functions. Emphasize how IT can enhance each of the steps using real world examples. PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Describe the stages in the order management process relating them to the respective business functions. Emphasize how IT can enhance each of the steps using real world examples.

18. Johnson Controls: Success with Reengineering Web-Based Reengineering Project Fixing a Problem During Engineering Costs 1/10 of Correction at the Prototype Stage Web-Based Collaboration Saved 80% on R&D Investments Order Management Process Emphasis on the Johnson Controls Case centers on the reengineering process It demonstrates that cost for correcting a problem are dramatically lower if executed prior to the prototype stage. Wide-scale Web collaboration saved 80% on their R&D investments-no reinventing the wheel.Emphasis on the Johnson Controls Case centers on the reengineering process It demonstrates that cost for correcting a problem are dramatically lower if executed prior to the prototype stage. Wide-scale Web collaboration saved 80% on their R&D investments-no reinventing the wheel.

19. Reengineering Order Management Customer Relationships Using Intranets and the Internet Supplier Managed Inventories Using the Internet Cross-Functional ERP Software Integrating Manufacturing, Distribution, Finance, and Human Resource Processes Customer-Access to Web Order Entry, Status-Checking, Payment, and Services Customer, Product, and Order Status Databases accessed via Intranets and Extranets by Employees and Suppliers Provide examples where IT can improve the above steps in the order management process Make the point that reengineering includes retraining and re-indoctrinating personnelProvide examples where IT can improve the above steps in the order management process Make the point that reengineering includes retraining and re-indoctrinating personnel

20. Agilent Technologies: Failure in Reengineering Rocky ERP Reengineering Project Lost $105 Million in Revenue and $70 Million in Profits Implementation Disruptions More Extensive than Expected ERP Changes Affect People, Processes, Policies, and Company Culture Reengineering Order Management The Agilent Technologies Case makes the point that an ERP reengineering project that failed to measure the changes affecting the people policies and company culture was doomed to significant failure and loss of profits.The Agilent Technologies Case makes the point that an ERP reengineering project that failed to measure the changes affecting the people policies and company culture was doomed to significant failure and loss of profits.

21. Becoming an Agile Company Customers Perceive Products and Services as Solutions to their Individual Problems Cooperates with Customers, Suppliers, and Even Competitors to Bring Products to Market Quickly and at Lowest Cost Organized to Thrive on Uncertainty Leverages the Impact of its People and Knowledge Describe the steps above to become an agile company flexible and sensitive to change and leverages the impact of its people and attained knowledgeDescribe the steps above to become an agile company flexible and sensitive to change and leverages the impact of its people and attained knowledge

22. Becoming an Agile Company Dell Computer ? Agility in Action Customer-Focused Company Champion of Mass Customization Build-to-Order Business Model 25,000 on a Typical Day Tight Supply Chain Management Rarely More than Two Hours Worth of Parts Inventory Explain how Dell Computer meets the definition of an agile company Demonstrate the speed with which they can respond to market and customer change. Explain how Dell Computer meets the definition of an agile company Demonstrate the speed with which they can respond to market and customer change.

23. The Virtual Company Interenterprise IS PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Describe the virtual company and its boundaries with its external partners. Show how intranets are used to collaborate internally and extranets with outside entities. Note color coding of internal components and how they work together in cross-functional teams for problem solving. PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Describe the virtual company and its boundaries with its external partners. Show how intranets are used to collaborate internally and extranets with outside entities. Note color coding of internal components and how they work together in cross-functional teams for problem solving.

24. Virtual Company Strategies Share Infrastructure and Risk with Alliance Partners Link Complementary Core Competencies Reduce Concept-to-Cash Time Through Sharing Increase Facilities and Market Coverage Gain Access to New Markets and Share Market or Customer Loyalty Migrate from Selling Products to Selling Solutions Explain how each of the above virtual company strategies are enhanced by the use of IT Provide real world examples of each if possible.Explain how each of the above virtual company strategies are enhanced by the use of IT Provide real world examples of each if possible.

25. Virtual Company Strategies Cisco Systems: Virtual Manufacturing Alliances Alliances Create a Virtual Manufacturing Company Three Companies Involved in the Alliance Provides and Agile Build-to-Order Capability in Fiercely Competitive Industry The Cisco Systems Case shows how its agility is enhanced by forming virtual manufacturing alliances with allied companies The end result is a greater measure of success in a fiercely competitive industry.The Cisco Systems Case shows how its agility is enhanced by forming virtual manufacturing alliances with allied companies The end result is a greater measure of success in a fiercely competitive industry.

26. Knowledge Creating Company Learning Organizations Knowledge Management Explicit Knowledge Knowledge Management Systems (KMS) Define the concept of knowledge creation in a company Explain the advantage of exploiting a firm's knowledge Explain how knowledge management systems can provide this knowledge base to perpetuity.Define the concept of knowledge creation in a company Explain the advantage of exploiting a firm's knowledge Explain how knowledge management systems can provide this knowledge base to perpetuity.

27. Knowledge Management PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Graphic above demonstrates the steps in knowledge creation in the development of enterprise intelligence.PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Graphic above demonstrates the steps in knowledge creation in the development of enterprise intelligence.

28. Siemens AG: Global Knowledge Management System Stop Employee Problem of Knowledge Hoarding Created ShareNet Web Site Profitable Real-time Worldwide Collaboration Real World Case 3- Yellow, JetBlue and Gentex: Knowledge Management The Siemens AG Case demonstrates how a sharing Web site helped to stop the employee hoarding of knowledge The result was a very profitable real-time worldwide collaboration system. Click the arrow to go to real world case 3-Yellow, JetBlue, and Gentex.The Siemens AG Case demonstrates how a sharing Web site helped to stop the employee hoarding of knowledge The result was a very profitable real-time worldwide collaboration system. Click the arrow to go to real world case 3-Yellow, JetBlue, and Gentex.

29. Summary Strategic Uses of Information Technology Cut Costs Differentiate and Innovate Products and Services Promote Growth Develop Alliances Lock in Customers & Suppliers Create Switching Costs Create Barriers to Entry Leverage IT Investment Develop Competitive Advantage

30. Summary Building a Customer-Focused Business Develop Business Value Make Customer Value the Strategic Focus Use of Internet, Intranets, and Extranets to Track and Serve Customer Needs and Interests Provide Services Tailored to Specific Customer Needs

31. Summary Reengineering Business Processes Enable Radical Changes to Business Processes Improves Efficiency and Effectiveness IT Supports Innovative Changes in Work Flows, Job Requirements, and Organizational Structures in a Company

32. Summary Becoming an Agile Company Rapid Response to Market Changes Broad Product Ranges Short Model Lifetimes Heavy Dependence Upon IT to Respond to Customer?s Unique Situations Enhance Cost Effectiveness

33. Summary Creating a Virtual Company Use of Internet and IT Provide Computing and Communications Resources IT Enables Management of a Network of People, Knowledge, Financial, and Physical Resources Takes Advantage of Rapidly Changing Markets

34. Summary Building a Knowledge-Creating Company Creates a Lasting Competitive Advantage Innovative Use of Organization Knowledge Supports Development and Management of New Organization Knowledge Integrates Into New Products and Services

35. KEY TERMS Agile Competitor Business Process Reengineering Competitive Forces Competitive Strategies Creating Switching Costs Customer-Focused e-business Identifying e-business and e-commerce Strategies Knowledge-Creating Company Knowledge Management System

36. KEY TERMS Leveraging Investment in IT Locking in Customers and Suppliers Raising Barriers to Entry Strategic Information System Strategic uses of Information Technology Strategic uses of Internet Technologies Total Quality Management Value Chain Virtual Company

38. Computer Hardware

39. GE - Dell - Intel and Others: Do you agree with the argument made by Nick Carr to support his position that IT no longer gives companies a competitive advantage? Why or why not?

40. GE - Dell - Intel and Others: IT costs now the same as other traditional costs and as such do not have as great an impact on a company?s strategic planning. If all companies in an industry invest in similar levels of IT then IT cannot be a strategic advantage to a given company. The IT infrastructure changes rapidly and requires a continual investment in new IT and impacts a company?s strategic planning. The IT infrastructure?s continual improvements allow a company to adjust the mix of traditional resources such as physical and human resources. Discussion points would include the following: IT costs are now the same as other traditional costs such as human resources, physical resources, etc. As such IT costs are not as important in terms of the impact on a company?s strategic planning. If all companies in a competitive industry invest in IT at the same approximate level of expenditure then IT cannot be a strategic advantage to a given company. The IT infrastructure changes rapidly and thus a continual investment in new IT influences a company?s strategic planning. The IT infrastructure and the continual improvements made to it allow a company to adjust the mix of traditional resources such as physical and human resources to provide a highly competitive company. Discussion points would include the following: IT costs are now the same as other traditional costs such as human resources, physical resources, etc. As such IT costs are not as important in terms of the impact on a company?s strategic planning. If all companies in a competitive industry invest in IT at the same approximate level of expenditure then IT cannot be a strategic advantage to a given company. The IT infrastructure changes rapidly and thus a continual investment in new IT influences a company?s strategic planning. The IT infrastructure and the continual improvements made to it allow a company to adjust the mix of traditional resources such as physical and human resources to provide a highly competitive company.

41. GE - Dell - Intel and Others: 2. Do you agree with the argument made by the business leaders in this case in support of the competitive advantage that IT can provide to a business? Why or why not?

42. GE - Dell - Intel and Others: The productivity lifeblood for a service oriented company is IT and not plants and equipment. How it is used determines the competitive advantage of the IT infrastructure. Some segments of the IT infrastructure are reaching maturity and not much can be gained by additional changes; however other areas aren?t close to maturity and gains in competitive advantage can still be made. All companies are not at the same level of IT usage and you cannot generalize that increased IT expenditures no longer have value to a company. Points to consider would include: The lifeblood for productivity in a service oriented company is IT and not plants and equipment. How it is used determines the competitive advantage of the IT infrastructure. Some segments of the IT infrastructure are reaching maturity and not much can be gained by additional changes; however other areas aren?t close to maturity and gains in competitive advantage can still be made. All companies are not at the same level of IT usage and you cannot generalize that increased IT expenditures no longer have value to a company. Points to consider would include: The lifeblood for productivity in a service oriented company is IT and not plants and equipment. How it is used determines the competitive advantage of the IT infrastructure. Some segments of the IT infrastructure are reaching maturity and not much can be gained by additional changes; however other areas aren?t close to maturity and gains in competitive advantage can still be made. All companies are not at the same level of IT usage and you cannot generalize that increased IT expenditures no longer have value to a company.

43. GE - Dell - Intel and Others: 3. What are several ways that IT could provide a competitive advantage to a business? Use some of the companies mentioned in this case as examples. Visit their websites to gather more information to help you answer.

44. GE - Dell - Intel and Others: Improve the customer relationship management system. Create new uses for information to remain competitive. Leveraging the knowledge-capital as an integral part of strategic planning. Determining the best mix of knowledge, software and hardware to be highly competitive. Ways to provide a competitive advantage may include: Improve the customer relationship management system. Create new uses for information to remain competitive. Leveraging the knowledge-capital as an integral part of strategic planning. Determining the best mix of knowledge, software and hardware to be highly competitive. Improve the value chain for the company.Ways to provide a competitive advantage may include: Improve the customer relationship management system. Create new uses for information to remain competitive. Leveraging the knowledge-capital as an integral part of strategic planning. Determining the best mix of knowledge, software and hardware to be highly competitive. Improve the value chain for the company.

45. GE - Dell - Intel and Others: Improve the customer relationship management system. Create new uses for information to remain competitive. Leveraging the knowledge-capital as an integral part of strategic planning. Determining the best mix of knowledge, software and hardware to be highly competitive. Improve the value chain for the company. Ways to provide a competitive advantage may include: Improve the customer relationship management system. Create new uses for information to remain competitive. Leveraging the knowledge-capital as an integral part of strategic planning. Determining the best mix of knowledge, software and hardware to be highly competitive. Improve the value chain for the company.Ways to provide a competitive advantage may include: Improve the customer relationship management system. Create new uses for information to remain competitive. Leveraging the knowledge-capital as an integral part of strategic planning. Determining the best mix of knowledge, software and hardware to be highly competitive. Improve the value chain for the company.

46. What is the potential value for competitive advantage that a business might gain from knowledge management systems? Why might this value be difficult to measure? Intec Engineering:

47. Quickly building new knowledge into its products and services. Facilitate organizational learning and knowledge creation. Provide rapid feedback to knowledge workers by encouraging behavior changes in employees and improving business performance. Help company become more innovative as an agile provider of high-quality products and customer services. Help company become a formidable competitor in the marketplace. Intec Engineering: Discussion points would include: Quickly building new knowledge created within the company into its products and services. Facilitate organizational learning and knowledge creation. Provide rapid feedback to knowledge workers by encouraging behavior changes in employees and improving business performance. Help the company to become a more innovative and agile provider of high-quality products and customer services. Help the company to become a formidable competitor in the marketplace. Discussion points would include: Quickly building new knowledge created within the company into its products and services. Facilitate organizational learning and knowledge creation. Provide rapid feedback to knowledge workers by encouraging behavior changes in employees and improving business performance. Help the company to become a more innovative and agile provider of high-quality products and customer services. Help the company to become a formidable competitor in the marketplace.

48. Intec Engineering: 2. Do you approve of how Intec Engineering is measuring the value of their KMS? Why or why not? How else could the strategic value of their KMS be measured?

49. The value of the KMS can be quantified. The quality of the KMS is not adequately measured. The focus on measuring the value of the KMS permits Intec to consider the value of their employees? time. The real value is one of Intec being able to expand its knowledge base through questions being answered. Intec Engineering: Points to consider would include: The value of the KMS can be quantified. The quality of the KMS is not adequately measured. The focus on measuring the value of the KMS permits Intec to consider the value of their employees? time. The real value is one of Intec being able to expand its knowledge base through questions being answered. Points to consider would include: The value of the KMS can be quantified. The quality of the KMS is not adequately measured. The focus on measuring the value of the KMS permits Intec to consider the value of their employees? time. The real value is one of Intec being able to expand its knowledge base through questions being answered.

50. Intec Engineering: 3. Does Intec?s knowledge management system give them a competitive advantage? Give several examples from the case to support your answer.

51. The Beijing project with different specifications Intec Engineering: The Beijing project with different specifications. The prospective customer in Australia. Ability to reduce the time of projects for clients so daily revenue is generated sooner by the client. The Beijing project with different specifications. The prospective customer in Australia. Ability to reduce the time of projects for clients so daily revenue is generated sooner by the client.

52. The Beijing project with different specifications The prospective customer in Australia Intec Engineering: The Beijing project with different specifications. The prospective customer in Australia. Ability to reduce the time of projects for clients so daily revenue is generated sooner by the client. The Beijing project with different specifications. The prospective customer in Australia. Ability to reduce the time of projects for clients so daily revenue is generated sooner by the client.

53. The Beijing project with different specifications The prospective customer in Australia Ability to reduce the time of projects for clients so daily revenue is generated sooner by the client Intec Engineering: The Beijing project with different specifications. The prospective customer in Australia. Ability to reduce the time of projects for clients so daily revenue is generated sooner by the client. The Beijing project with different specifications. The prospective customer in Australia. Ability to reduce the time of projects for clients so daily revenue is generated sooner by the client.

54. Progressive - Yellow JetBlue and Gentex: 1. What strategies in the use of IT for competitive advantage are being used by each of the companies in this case? Explain your choices.

55. Progressive ? Lower Costs Differentiate Innovate Promote Growth Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications. Progressive - Yellow JetBlue and Gentex: Choices would include: Progressive ? Lower Costs Differentiate Innovate Promote Growth Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications.Choices would include: Progressive ? Lower Costs Differentiate Innovate Promote Growth Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications.

56. Yellow ? Lower Costs Innovate Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications. Progressive - Yellow JetBlue and Gentex: Yellow ? Lower Costs Innovate Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applicationsYellow ? Lower Costs Innovate Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications

57. JetBlue ? Lower Costs Differentiate Innovate Develop interenterprise information systems to create switching costs. Progressive - Yellow JetBlue and Gentex: JetBlue ? Lower Costs Differentiate Innovate Develop interenterprise information systems to create switching costs.JetBlue ? Lower Costs Differentiate Innovate Develop interenterprise information systems to create switching costs.

58. Gentex ? Lower Costs Promote Growth Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications. Progressive - Yellow JetBlue and Gentex: Gentex ? Lower Costs Promote Growth Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications.Gentex ? Lower Costs Promote Growth Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications.

59. Progressive - Yellow JetBlue and Gentex: 2. Visit the website of one these companies for more information on their business. What other competitive strategies could you recommend for this company? Explain your recommendations.

60. Progressive ? Develop Alliances Develop interenterprise systems creating switching costs that lock in customers. Include IT components in services to make substitution of competing services more difficult. Progressive - Yellow JetBlue and Gentex: Choices would include: Progressive ? Develop Alliances Develop interenterprise systems creating switching costs that lock in customers. Include IT components in services to make substitution of competing services more difficult.Choices would include: Progressive ? Develop Alliances Develop interenterprise systems creating switching costs that lock in customers. Include IT components in services to make substitution of competing services more difficult.

61. Yellow ? Differentiate Develop alliances Develop interenterprise systems creating switching costs that lock in customers. Include IT components in services to make substitution of competing services more difficult. Progressive - Yellow JetBlue and Gentex: Yellow ? Differentiate. Develop alliances Develop interenterprise systems creating switching costs that lock in customers. Include IT components in services to make substitution of competing services more difficult.Yellow ? Differentiate. Develop alliances Develop interenterprise systems creating switching costs that lock in customers. Include IT components in services to make substitution of competing services more difficult.

62. JetBlue ? Promote Growth Develop Alliances Include IT components in services to make substitution of competing services more difficult. Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications. Progressive - Yellow JetBlue and Gentex: JetBlue ? Promote Growth Develop Alliances. Include IT components in services to make substitution of competing services more difficult. Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications.JetBlue ? Promote Growth Develop Alliances. Include IT components in services to make substitution of competing services more difficult. Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications.

63. Gentex ? Innovate Develop Alliances Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications. Include IT components in services to make substitution of competing services more difficult. Progressive - Yellow JetBlue and Gentex: Gentex ? Innovate Develop Alliances Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications. Include IT components in services to make substitution of competing services more difficult.Gentex ? Innovate Develop Alliances Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications. Include IT components in services to make substitution of competing services more difficult.

64. Progressive - Yellow JetBlue and Gentex: 3. How could other companies apply the competitive strategies being used by the companies in this case? Use examples from both a large and small business perspective to illustrate your answer.

65. Maintain or increase investment in IT to improve operating activities if they can be improved. Use investment in IT to be innovative to distinguish company from competition. IT can be used to develop alliances with customers and suppliers. Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications. Progressive - Yellow JetBlue and Gentex: Large business perspective ? Maintain or increase the annual investment in IT to improve operating activities if they can be improved. Use the investment in IT to be innovative to distinguish your company from the competition. IT can be used to develop alliances with customers and suppliers. Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications.Large business perspective ? Maintain or increase the annual investment in IT to improve operating activities if they can be improved. Use the investment in IT to be innovative to distinguish your company from the competition. IT can be used to develop alliances with customers and suppliers. Leverage investment in IS people, hardware, software, databases, and networks from operational uses into strategic applications.

66. Maintain or increase investment in IT to improve operating activities if they can be improved. Use the investment in IT to establish alliances for the first time. Use IT to differentiate your company from the competition. Use IT to be innovative to distinguish your company from the competition. Progressive - Yellow JetBlue and Gentex: Small business perspective ? Maintain or increase the annual investment in IT to improve operating activities if they can be improved. Use the investment in IT to establish alliances for the first time. Use IT to differentiate your company from the competition. Use IT to be innovative to distinguish your company from the competition. Small business perspective ? Maintain or increase the annual investment in IT to improve operating activities if they can be improved. Use the investment in IT to establish alliances for the first time. Use IT to differentiate your company from the competition. Use IT to be innovative to distinguish your company from the competition.

67. The use of IT can permit a larger company to develop interenterprise systems. Progressive - Yellow JetBlue and Gentex: The use of IT can permit a larger company to develop interenterprise systems. IT can create barriers to restrict competition from entering the marketplace. IT can be leveraged to advance the company into more profitable uses for strategic applications.The use of IT can permit a larger company to develop interenterprise systems. IT can create barriers to restrict competition from entering the marketplace. IT can be leveraged to advance the company into more profitable uses for strategic applications.

68. The use of IT can permit a larger company to develop interenterprise systems. IT can create barriers to restrict competition from entering the marketplace. Progressive - Yellow JetBlue and Gentex: The use of IT can permit a larger company to develop interenterprise systems. IT can create barriers to restrict competition from entering the marketplace. IT can be leveraged to advance the company into more profitable uses for strategic applications.The use of IT can permit a larger company to develop interenterprise systems. IT can create barriers to restrict competition from entering the marketplace. IT can be leveraged to advance the company into more profitable uses for strategic applications.

69. The use of IT can permit a larger company to develop interenterprise systems. IT can create barriers to restrict competition from entering the marketplace. IT can be leveraged to advance the company into more profitable uses for strategic applications. Progressive - Yellow JetBlue and Gentex: The use of IT can permit a larger company to develop interenterprise systems. IT can create barriers to restrict competition from entering the marketplace. IT can be leveraged to advance the company into more profitable uses for strategic applications.The use of IT can permit a larger company to develop interenterprise systems. IT can create barriers to restrict competition from entering the marketplace. IT can be leveraged to advance the company into more profitable uses for strategic applications.

70. CDW and Harrah?s Entertainment: 1. Does CDW?s customer loyalty program give them a competitive advantage? Why or why not?

71. Loyalty program is a system that differentiates CDW from its competitors. CDW used IT in an innovative way to move beyond a CRM package to a system that measures customer satisfaction and loyalty. The loyalty program provides CDW with an alliance strategy with its customers by locking in the customers to the CDW system. CDW and Harrah?s Entertainment: Discussion points to consider: Loyalty program is a system that differentiates CDW from its competitors. CDW used IT in an innovative way to move beyond a CRM package to a system that measures customer satisfaction and can benchmark loyalty. The loyalty program provides CDW with an alliance strategy with its customers by locking in the customers to the CDW system. Discussion points to consider: Loyalty program is a system that differentiates CDW from its competitors. CDW used IT in an innovative way to move beyond a CRM package to a system that measures customer satisfaction and can benchmark loyalty. The loyalty program provides CDW with an alliance strategy with its customers by locking in the customers to the CDW system.

72. CDW and Harrah?s Entertainment: 2. What is the strategic value of Harrah?s approach to determining and rewarding customer loyalty?

73. Differentiate Harrah from its competitors in terms of service to different groups of customers. Promote growth through improved targeting of multiple customer groups on a real-time basis. Creating switching costs in multiple customer groups to lock customers in all groups into continuing to have loyalty to Harrah?s. CDW and Harrah?s Entertainment: Points to include in the discussion would include: Differentiate Harrah from its competitors in terms of service to different groups of customers. Promote growth through improved targeting of multiple customer groups on a real-time basis. Creating switching costs in multiple customer groups to lock customers in all groups into continuing to have loyalty to Harrah?s. Points to include in the discussion would include: Differentiate Harrah from its competitors in terms of service to different groups of customers. Promote growth through improved targeting of multiple customer groups on a real-time basis. Creating switching costs in multiple customer groups to lock customers in all groups into continuing to have loyalty to Harrah?s.

74. CDW and Harrah?s Entertainment: 3. What else could CDW and Harrah?s do to truly become customer-focused businesses? Visit their websites to help you suggest several alternatives.

75. CDW ? Online competitive pricing or auction features as products age. Web site redesign to improve appearance. Better leverage IT so that every order is filled as quickly as possible by creating alliances with suppliers that permit direct shipment to customers to ensure best price and delivery for loyal customers. CDW and Harrah?s Entertainment: Suggestions could include: CDW ? Online competitive pricing or auction features as products age. Web site redesign to improve appearance. Better leverage IT to ensure that every order is filled as quickly as possible by creating alliances with supplies that permit direct shipment from the supplier to customers to ensure best price and delivery for loyal customers. Suggestions could include: CDW ? Online competitive pricing or auction features as products age. Web site redesign to improve appearance. Better leverage IT to ensure that every order is filled as quickly as possible by creating alliances with supplies that permit direct shipment from the supplier to customers to ensure best price and delivery for loyal customers.

76. Harrah?s - Leverage IT investments by expanding the analytical mining of the data. CDW and Harrah?s Entertainment: Harrah?s - Leverage IT investments by expanding the analytical mining of the data. Differentiate Harrah?s from its competitors by using the data mining to expand products and services offered to repeat customers. Use IT to develop new products and services that will attract new customers to Harrah?s.Harrah?s - Leverage IT investments by expanding the analytical mining of the data. Differentiate Harrah?s from its competitors by using the data mining to expand products and services offered to repeat customers. Use IT to develop new products and services that will attract new customers to Harrah?s.

77. Harrah?s - Leverage IT investments by expanding the analytical mining of the data. Differentiate Harrah?s from its competitors by using the data mining to expand products and services offered to repeat customers. CDW and Harrah?s Entertainment: Harrah?s - Leverage IT investments by expanding the analytical mining of the data. Differentiate Harrah?s from its competitors by using the data mining to expand products and services offered to repeat customers. Use IT to develop new products and services that will attract new customers to Harrah?s.Harrah?s - Leverage IT investments by expanding the analytical mining of the data. Differentiate Harrah?s from its competitors by using the data mining to expand products and services offered to repeat customers. Use IT to develop new products and services that will attract new customers to Harrah?s.

78. Harrah?s - Leverage IT investments by expanding the analytical mining of the data. Differentiate Harrah?s from its competitors by using the data mining to expand products and services offered to repeat customers. Use IT to develop new products and services that will attract new customers to Harrah?s. CDW and Harrah?s Entertainment: Harrah?s - Leverage IT investments by expanding the analytical mining of the data. Differentiate Harrah?s from its competitors by using the data mining to expand products and services offered to repeat customers. Use IT to develop new products and services that will attract new customers to Harrah?s.Harrah?s - Leverage IT investments by expanding the analytical mining of the data. Differentiate Harrah?s from its competitors by using the data mining to expand products and services offered to repeat customers. Use IT to develop new products and services that will attract new customers to Harrah?s.


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