Experiencing MIS 9th by m kronenke chapter 03
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Chapter 3
Strategy and Information Systems
“We Can't Be Everything to Everybody.”
• Known for providing security monitoring.
• Current focus on security contracts.
• Mateo wants to focus on law enforcement agencies, search & rescue, federal government.
• Good money in agricultural surveying, industrial inspection, real estate videos, and wedding videos. too.
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Study Questions
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: 2026?
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Q1: How Does Organizational Strategy Determine Information Systems Structure?
Strategy Determines Information Systems
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Q2: What Five Forces Determine Industry Structure?
Competitive Forces
• Competition from vendors who manufacture 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
Falcon Security
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Q3: How Does Analysis of Industry Structure Determine Competitive Strategy?
Porter's Four Generic
Competitive Strategies
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Yikes! Bikes!
•
Yikes! Bikes, a manufacturer of high-end mountain bicycles.
•
You are operations manager.
•
New owners plan to pursue lowest-cost vendor strategy by importing low-cost, low quality bikes.
•
New owners are not being honest with employees about cutting jobs.
•
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?
Three Examples
of Business
Processes
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Improved Material Ordering Process Using Integrated Databases
Two Integrated
Databases
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Q6:How Does Competitive Strategy Determine Business Processes and the Structure of Information Systems?
Low-Cost Rental Operations Value Chain
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High-Service Rental Value Chain
High-Cost Rental Operations Value Chain
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Business Process and Information Systems for
High-Service Bike Rental
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So What? Driving Strategy
• Identify some implications of driverless vehicles.
• What vulnerabilities could be exploited by equipping one of these vehicles with Internet access?
• What are some logistical issues that could arise from a delivery vehicle without a human operator?
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So What? Driving Strategy
4.
5.
6.
What other complex tasks exist might prove feasible for automation?
How might the proliferation of driverless cars affect the automotive insurance industry?
Do you think a driverless vehicle is something everyone would want, even if sold at affordable price?
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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?
• Enhances existing products.
• Differentiates products.
• Locks in customers.
• Raises barriers to market entry.
• Increases profit margins by decreasing costs and decreasing errors.
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How Does an Actual Company Use IS to Create Competitive Advantages? (cont'd)
• 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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Web Page to Select a Contact from the Customer’s Records
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ABC Web Page to Select a Contact from Customer’s Records
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Web Page to Specify Email Notification
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