Experiencing MIS 7th by m kronenke chapter 03
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Chapter 3
Strategy and Information Systems
“And we’ve got a lot of process and systems work to do."
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Differentiates itself by having a large inventory of parts.
Competitive strategy is threatened by 3D printing.
Manufacturing 3D printing line means building new business processes and systems.
Innovations threaten competitive strategies.
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Study Guide
Q1: How does organizational strategy determine information systems structure?
Q2: What five forces determine industry structure?
Q3: How does analysis of industry structure determine competitive strategy?
Q4: How does competitive strategy determine value chain structure?
Q5: How do business processes generate value?
Q6: How does competitive strategy determine business processes and the structure of information systems?
Q7: How do information systems provide competitive advantages?
Q8: 2024?
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Q1: How Does Organizational Strategy Determine Information Systems Structure?
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Q2: What Five Forces Determine Industry Structure?
Competitive Forces
• Competition from vendors of substitutes.
• Competition from new competitors.
• Competition from existing rivals.
Bargaining Power Forces
• Bargaining power of suppliers.
• Bargaining power of customers.
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Use 5-forces Model to Identify Sources of Strong Competition
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Assessing the Five Forces at AllRoad
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Q3: How Does Analysis of Industry Structure Determine Competitive Strategy?
Porter's Four Competitive Strategies
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Bottom Line
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To be effective goals, objectives, culture, and activities must be consistent with strategy.
In MIS, this means all information systems must reflect and facilitate the organization's competitive
strategy.
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Yikes! Bikes!
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You are the operations manager for Yikes! Bikes, a manufacturer of high-end mountain bicycles.
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New owners plan to pursue lowest-cost vendor strategy by importing low-cost, lower quality bikes.
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New owners are not being honest with employees about cutting jobs.
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Say you might be promoted to new general manager. Should you trust them?
Q: Are the owner’s actions illegal? Unethical?
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Q4: How Does Competitive Strategy Determine Value Chain Structure?
Linkages
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Task Descriptions for Primary Activities of the Value Chain
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Q5: How Do Business Processes Generate Value?
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Improved Material Ordering Process
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Q6: How Does Competitive Strategy Determine Business Processes and the Structure of Information
Systems?
Low-Cost Rental Value Chain
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High-Service Rental Value Chain
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Using MIS InClass Exercise 3: Competitive Strategy Over the Web
Industry
Information
Structure
Value Chains
Systems
Business
Competitive Strategy
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Processes
www.sportsauthority.com vs. www.soccer.com
www.target.com vs. www.sephora.com
www.woot.com vs. www.amazon.com
www.petco.com vs. www.wag.com
www.llbean.com vs. www.rei.com
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Q7: How Do Information Systems Provide Competitive Advantages?
Principles of
Competitive
Advantage
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How Does an Actual Company Use IS to Create Competitive Advantages?
• Maintains customer account data
IS collects information for ABC (adds value).
IS saves customers time by automatically filling in part of form (adds value for customer).
• Package & information delivery system
IS helps customer to select delivery address and generate shipping labels.
What value does shipper get?
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Two Roles for Information Systems Regarding Products
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ABC, Inc., Web Page to Select a Contact from the Customer’s Records
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ABC, Inc., Web Page to Specify Email Notification
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ABC, Inc., Web Page to Print a Shipping Label
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Q8: 2024?
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Models of business strategy, competitive advantages, and relationship to processes and IS unlikely to
change.
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Pace of business will accelerate.
New ideas and innovations and require businesses to be constantly on alert for changes that may affect
their strategy.
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Be a modern-day prospector and use technology to create new products.
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