competing with information technology l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Competing with Information Technology PowerPoint Presentation
Download Presentation
Competing with Information Technology

Loading in 2 Seconds...

play fullscreen
1 / 30

Competing with Information Technology - PowerPoint PPT Presentation


  • 676 Views
  • Uploaded on

2. Competing with Information Technology. Objectives. 2. Identify basic competitive strategies and explain how IT may be used to gain competitive advantage. Identify strategic uses of information technology.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Competing with Information Technology' - benjamin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
objectives
Objectives

2

  • Identify basic competitive strategies and explain how IT may be used to gain competitive advantage.
  • Identify strategic uses of information technology.
  • How does business process engineering frequently use e-business technologies for strategic purposes?
objectives continued
(Objectives – continued)

2

  • Identify the business value of using e-business technologies for total quality management, to become an agile competitor, or to form a virtual company.
  • Explain how knowledge management systems can help a business gain strategic advantage.
fundamentals of strategic advantage5
Fundamentals of Strategic Advantage

2

  • Competitive Forces (Porter)
    • Bargaining power of customers
    • Bargaining power of suppliers
    • Rivalry of competitors
    • Threat of new entrants
    • Threat of substitutes
competitive strategies the role of it
Competitive Strategies & the Role of IT

2

  • Cost Leadership (low cost producer)
    • Reduce inventory (JIT)
    • Reduce manpower costs per sale (see Real World Case 1)
    • Help suppliers or customers reduce costs
    • Increase costs of competitors
    • Reduce manufacturing costs (process control)
competitive strategies the role of it continued
Competitive Strategies & the Role of IT (continued)

2

  • Differentiation
    • Create a positive difference between your products/services & the competition.
    • May allow you to reduce a competitor’s differentiation advantage.
    • May allow you to serve a niche market.
competitive strategies the role of it continued8
Competitive Strategies & the Role of IT (continued)

2

  • Innovation
    • New ways of doing business
      • Unique products or services
      • New ways to better serve customers
      • Reduce time to market
      • New distribution models
competitive strategies the role of it continued9
Competitive Strategies & the Role of IT (continued)

2

  • Growth
    • Expand production capacity
    • Expand into global markets
    • Diversify
    • Integrate into related products and services.
competitive strategies the role of it continued10
Competitive Strategies & the Role of IT (continued)

2

  • Alliance
    • Broaden your base of support
      • New linkages
    • Mergers, acquisitions, joint ventures, “virtual companies”
    • Marketing, manufacturing, or distribution agreements.
competitive strategies the role of it continued11
Competitive Strategies & the Role of IT (continued)

2

  • Other Competitive Strategies
    • Locking in customers or suppliers
      • Build value into your relationship
    • Creating switching costs
      • Extranets
      • Proprietary software applications
competitive strategies the role of it continued12
Competitive Strategies & the Role of IT (continued)

2

  • Other Competitive Strategies (continued)
    • Raising barriers to entry
      • Improve operations or promote innovation
    • Leveraging investment in IT
      • Allows the business to take advantage of strategic opportunities
the value chain
The Value Chain

2

  • Views a firm as a series, chain, or network of activities that add value to its products and services.
    • Improved administrative coordination
    • Training
    • Joint design of products and processes
    • Improved procurement processes
    • JIT inventory
    • Order processing systems
value chain continued
Value Chain (continued)

2

Support Processes

Primary

Business

Processes

section ii
Section II

2

  • Using Information Technology for Strategic Advantage
strategic uses of information technology
Strategic Uses Of Information Technology

2

  • Major competitive differentiator
  • Develop a focus on the customer
    • Customer value
      • Best value
      • Understand customer preferences
      • Track market trends
      • Supply products, services, & information anytime, anywhere
      • Tailored customer service
strategic uses of it continued
Strategic Uses of IT (continued)

2

  • Business Process Reengineering (BPR)
    • Rethinking & redesign of business processes
    • Combines innovation and process improvement
    • There are risks involved.
    • Success factors
      • Organizational redesign
      • Process teams and case managers
      • Information technology
strategic uses of it continued18
Strategic Uses of IT (continued)

2

  • Improve business quality
    • Total Quality Management (TQM)
      • Quality from customer’s perspective
      • Meeting or exceeding customer expectations
      • Commitment to:
        • Higher quality
        • Quicker response
        • Greater flexibility
        • Lower cost
slide19

2

Strategic Uses of IT (continued)

  • Becoming agile
    • Four basic strategies
      • Customers’ perception of product/service as solution to individual problem
      • Cooperate with customers, suppliers, other companies (including competitors)
      • Thrive on change and uncertainty
      • Leverage impact of people and people’s knowledge
slide20

2

Strategic Uses of IT (continued)

  • The virtual company
    • Uses IT to link people, assets, and ideas
    • Forms virtual workgroups and alliances with business partners
    • Interorganizational information systems
the virtual company continued
The Virtual Company (continued)

2

  • Strategies
    • Share infrastructure & risk with alliance partners
    • Link complementary core competencies
    • Reduce concept-to-cash time through sharing
slide22

2

The Virtual Company (continued)

  • Strategies (continued)
    • Increase facilities and market coverage
    • Gain access to new markets and share market or customer loyalty
    • Migrate from selling products to selling solutions
learning organizations
Learning Organizations

2

  • Exploit two kinds of knowledge
    • Explicit
    • Tacit
slide25

2

Learning Organizations (continued)

  • Knowledge management systems
    • Help create, organize, and share business knowledge wherever and whenever needed within the organization
discussion questions
Discussion Questions

2

  • You have been asked to develop e-business & e-commerce applications to gain competitive advantage. What reservations might you have about doing so?
  • How could a business use IT to increase switching costs and lock in its customers and suppliers?
discussion questions continued
Discussion Questions (continued)

2

  • How could a business leverage its investment in IT to build strategic IT capabilities that serve as a barrier to entry by new entrants into its markets?
  • What strategic role can information technology play in business process reengineering and total quality management?
slide28

2

Discussion Questions (continued)

  • How can Internet technologies help a business form strategic alliances with its customers, suppliers, and others?
  • How could a business use Internet technologies to form a virtual company or become an agile competitor?
slide29

2

Discussion Questions (continued)

  • IT can’t really give a company a strategic advantage, because most competitive advantages don’t last more than a few years & soon become strategic necessities that just raise the stakes of the game. Discuss.
  • MIS author & consultant Peter Keen says: “We have learned that it is not technology that creates a competitive edge, but the management process that exploits technology.” What does he mean?
references
References

2

  • James A. O'Brien; George M. Marakas. Management Information Systems: Managing Information Technology in the Business Enterprise 6th Ed., Boston: McGraw-Hill/ Irwin,2004