MIS
Management Information Systems
1. Competitive Strategies and IS.
Exam Amazon website, discuss how Amazon have used or could possibly use all eight strategies to create competitive advantage. (Note, the following table is simply a way to organize all information. You are by no means constraint to use one or two sentences in each cell. Write as much as you can, as long as you make your point. Thanks! )
|
Ways to increase Comp Adv |
What they have done (that you know) or could have done? |
|
Create a new product or service |
|
|
Enhance products or services |
|
|
Differentiate products or services |
|
|
Lock in customers and buyers |
|
|
Lock in suppliers |
|
|
Raise barriers to entry |
|
|
Reduce costs |
2. Read the Guide “Your Personal Competitive Advantage” (posted on cougar course. Reflect upon yourself and discuss your main competitive advantages. Also discuss how you can improve your personal competitive advantage using the eight strategies listed on slide 14. (the same eight on the left column in problem 1.)
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Management Information Systems
Chapter 2 Strategy and Information Systems
Study Questions:
Q2-1 How does organizational strategy determine information systems structure?
Q2-2 What five forces determine industry structure?
Q2-3 How does analysis of industry structure determine competitive strategy?
Q2-4 How does competitive strategy determine value chain structure?
Q2-5 How do business processes generate value?
Q2-6 How does competitive strategy determine business processes and the structure of information systems?
Q2-7 How do information systems provide competitive advantages?
Q2-8 2029?
Q1: How Does Organizational Strategy Determine Information Systems Structure?
Q2: Industry Structure
Porter’s Five Forces Model
Examples of Five Forces
Force Example of Strong Force Example of Weak Force
Bargaining Power of Customers Toyota as a customer to purchase auto paint from it’s supplier Your bargaining power over the university policies and procedures
Threat of substitutions Frequent traveler’s choices of auto rental Patients with special disease choosing the only drug effective
Bargaining power of suppliers Textbook providers deciding the price of textbooks The bargaining power of the Chinese manufacturers over Walmart
Threat of new entrants Corner latte stand facing strong threats Professional Football teams
Rivalry Used car dealers, real estate agents, Chinese manufacturers, etc. Internal Revenue Service
Q3: Industry Structure Determines Competitive Strategy
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Q4: Porter’s Value Chain Model
Value Chain is a network of value-creating activities (primary and support activities)
Margin and Linkages:
Margin:
= value created by each activity less the cost of the activity
Company strive for margins by either improving the value or reducing the cost.
Primary activities are those directly create value
Support activities are those indirectly create value
Linkage
Interactions across value activities
It pushes people to think outside their silos, streamlining business processes to create higher value, or reduce costs.
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Example of Value Chain Structure
Q5: How do Business Processes Create Values?
Business Process: a network of activities that generate value by transforming inputs into outputs.
Business Process Redesign by integrating data and
providing better information.
Old Process with silo database
New Process with linked database
Q6: How Business Processes are affected by competitive strategies?
To sum up, all IT/IS investments must align
with the strategic goals of your business!
Process
Implementations
Product
Implementations
Q7: How do IS/IT provide competitive advantages?
Researchers have identified the following eight ways to increase competitive advantages:
Create a new product or service
Enhance products or services
Differentiate products or services
Lock in customers and buyers
Lock in suppliers
Raise barriers to market entry
Establish alliances
Reduce costs
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