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Chap002
- 1. Competing with Information Technology Chapter 2 Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
- 8. Competitive Forces and Strategies
- 9. Five Competitive Strategies Strategies Cost Leadership Alliance Growth Innovation Differentiation
- 11. Ways to Implement Basic Strategies
- 12. Other Competitive Strategies Strategy Lock in customers and suppliers Raise barriers to entry Create switching costs Build strategic IT capabilities Leverage investment in IT
- 13. Customer-Focused Business Business value in customer focus Focus on customer value Keeps customers loyal Anticipates their future needs Quality, not price, has become the primary determinant of value Responds to customer concerns Provides top-quality customer service
- 14. Providing Customer Value Use CRM systems to focus on the customer Track individual preferences Keep up with market trends Supply products, services, and information anytime , anywhere Tailor customer services to the individual Companies that consistently offer the best value…
- 15. Building Customer Value via the Internet
- 17. Using IS in the Value Chain
- 18. Strategic Uses of IT Companies that emphasize strategic business use of IT use it to gain competitive differentiation Products Services Capabilities
- 20. BPR vs. Business Improvement
- 23. Reengineering Order Management Supplier-managed inventory systems using the Internet and extranets Cross-functional ERP software to integrate manufacturing, distribution, finance, HR processes CRM systems using intranets and the Internet Customer-accessible e-commerce websites for order entry, status checking, payment, and service Customer, product, and order status databases accessed via intranets and extranets IT that supports the reengineering process…
- 24. Becoming an Agile Company Old Marketplace New Marketplace Standardized mass-market products and services Long-lived Information poor Exchanged in one-time transactions Global competition Niche products Individualized Short-lived Information rich Exchanged on an ongoing basis
- 26. Strategies for Agility Brings products to market quickly and cost-effectively Cooperates with customers, suppliers, competitors An agile company… Organizes to thrive on change and uncertainty Leverages the impact of its people and the knowledge they possess Provides incentives for employee responsibility, adaptability, innovation Presents products as solutions to customers’ problems
- 27. How IT Helps a Company be Agile
- 28. Creating a Virtual Company Organizations Assets Ideas People A virtual company uses IT to link… Suppliers Subcontractors Competitors Customers Inter-enterprise information systems link…
- 30. Virtual Company Strategies Basic Business Strategies Reduce concept-to-cash time through sharing Share information & risk with alliance partners Link complimentary core competencies Migrate from selling products to selling solutions Increase facilities and market coverage Gain access to new markets & share market or customer loyalty
- 31. Building a Knowledge-Creating Company A knowledge-creating company or learning organization… Consistently creates new business knowledge Disseminates it throughout the company Builds it into its products and services Builds it into its products and services
- 32. Two Kinds of Knowledge Explicit Knowledge Data, documents, and things written down or stored in computers Tacit Knowledge The “how to” knowledge in workers’ minds Represents some of the most important information within an organization A knowledge-creating company makes tacit knowledge available to others
- 35. Knowledge Management Systems (KMS) Knowledge management systems… Are a major strategic use of IT Manage organizational learning and know-how Help knowledge workers create, organize, and make available important knowledge Make this knowledge available wherever and whenever it is needed
- 36. Knowledge Management Systems (KMS) Best practices Reference works Processes Forecasts Procedures Fixes Formulas Patents Knowledge includes…
Notas do Editor
- Cost Leadership Become low-cost producers, help suppliers or customers reduce costs, and increase cost to competitors Example: Priceline uses online bidding so the buyer sets the price Differentiation Strategy Differentiate a firm’s products from competitors’, or focus on a particular segment or niche of market Example: Moen uses online customer design Innovation Strategy Unique products, services, or markets. Radical changes to business processes Example: Amazon’s online, full-service customer systems Growth Strategy Expand company’s capacity to produce, expand into global markets, or diversify into new products or services Example: Wal-Mart’s merchandise ordering via global satellite tracking Alliance Strategy Establish linkages and alliances with customers, suppliers, competitors, consultants, and other companies. This includes mergers, acquisitions, joint ventures, virtual companies Example: Wal-Mart uses automatic inventory replenishment by supplier
- Lock in Customers and Suppliers Deter them from switching to competitors Create Switching Costs Make customers and suppliers dependent on the use of innovative IS Raise Barriers to Entry Discourage or delay other companies from entering the market Increase the technology or investment needed to enter Build Strategic IT Capabilities Take advantage of strategic opportunities when they arise Improve efficiency of business practices Leverage Investment in IT Develop products and service that would not be possible without a strong IT capability