Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise Eleventh Edition Chapter Competing with Information Technology
Eleventh Edition 1 Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise C h a p t e r 2 Competing with Information Technology
James A.O'Brien Introduction to Information Systems Eleventh Edition Chapter Objectives ldentify several basic competitive strategies and explain how they can use information technologies to confront the competitive forces faced by a business. Ildentify several strategic uses of information technology for electronic business and commerce,and give examples of how they give competitive advantages to business. Give examples of how business process reengineering frequently involves the strategic use of e-business technologies
James A. O’Brien Introduction to Information Systems Eleventh Edition 2 • Identify several basic competitive strategies and explain how they can use information technologies to confront the competitive forces faced by a business. • Identify several strategic uses of information technology for electronic business and commerce, and give examples of how they give competitive advantages to business. • Give examples of how business process reengineering frequently involves the strategic use of e-business technologies. Chapter Objectives
James A.O'Brien Introduction to Information Systems Eleventh Edition Chapter Objectives ldentify 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 advantages
James A. O’Brien Introduction to Information Systems Eleventh Edition 3 • 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 advantages. Chapter Objectives
James A.O'Brien Introduction to Information Systems Eleventh Edition 4 The Competitive Environment Threat of New Entrants Bargaining Power of Suppliers Rivalry Among Existing Competitors Threat of Substitutes Bargaining Power of Customers
James A. O’Brien Introduction to Information Systems Eleventh Edition 4 The Competitive Environment Threat of New Entrants Rivalry Among Existing Competitors Bargaining Power of Customers Bargaining Power of Suppliers Threat of Substitutes
James A.O'Brien Introduction to Information Systems Eleventh Edition Fundamental Competitive Strategies-Cont. Cost Leadership Strategies Differentiation Strategies Innovation Strategies Growth Strategies Alliance Strategies
James A. O’Brien Introduction to Information Systems Eleventh Edition 5 Fundamental Competitive Strategies - Cont. Differentiation Strategies Innovation Strategies Growth Strategies Alliance Strategies Cost Leadership Strategies
James A.O'Brien Introduction to Information Systems Eleventh Edition 6 Strategic Uses of Information Technology Im proving Promote Locking in Strategy Business Business Customers Process Innovation and Suppliers IT Role Use IT to Use IT to -Use IT to reduce costs create new improve quality of doing products or .Use IT to link business services business to customers and suppliers Create New Maintain Valuable Outcome Enhance Business Customers and Efficiency Opportunities Relationships
James A. O’Brien Introduction to Information Systems Eleventh Edition 6 Strategic Uses of Information Technology Improving Business Process Promote Business Innovation Locking in Customers and Suppliers Use IT to reduce costs of doing business •Use IT to improve quality •Use IT to link business to customers and suppliers Use IT to create new products or services Enhance Efficiency Create New Business Opportunities Maintain Valuable Customers and Relationships Strategy IT Role Outcome
James A.O'Brien Introduction to Information Systems Eleventh Edition Strategic Uses of Information Technology Raise Build a Build a Strategy Barriers Strategic IT Strategic to Entry Platform Information Base IT Role Increase Leverage Use IT to amount of investment in provide investment or IS resources information to complexity of from operat- support firm's IT needed to ional uses to competitive compete strategic uses strategy Create New Enhance Outcome Increase Business Organizational Market Share Opportunities Collaboration
James A. O’Brien Introduction to Information Systems Eleventh Edition 7 Strategic Uses of Information Technology Raise Barriers to Entry Build a Strategic IT Platform Build a Strategic Information Base Increase amount of investment or complexity of IT needed to compete Use IT to provide information to support firm’s competitive strategy Leverage investment in IS resources from operational uses to strategic uses Increase Market Share Create New Business Opportunities Enhance Organizational Collaboration Strategy IT Role Outcome
James A.O'Brien Introduction to Information Systems Eleventh Edition 8 The Value Chain Administrative Coordination Support Services Human Resource Management Technology Development a6ejueapV Procurement of Resources Inbound Outbound Marketing Logistics Operations Logistics and Customer Sales Service Competitive
James A. O’Brien Introduction to Information Systems Eleventh Edition 8 The Value Chain Administrative Coordination & Support Services Human Resource Management Technology Development Procurement of Resources Inbound Logistics Operations Outbound Logistics Marketing and Sales Customer Service
James A.O'Brien Introduction to Information Systems Eleventh Edition The Internet Value Chain Marketing and Sales and Support and Internet Product Distribution Customer Capability Research Feedback Data for .Access to Benefits .Low cost market customer com- to distribution research, ments online Company .Reaches new establishes customers .Immediate re- consumer -Multiplies sponse to responses contact points customer problems Opportunity for Enhanced Increase Lower Advantage Customers Market Share Cost Margins Satisfaction
James A. O’Brien Introduction to Information Systems Eleventh Edition 9 The Internet Value Chain Marketing and Product Research Sales and Distribution Support and Customer Feedback Data for market research, establishes consumer responses •Access to customer comments online •Immediate response to customer problems •Low cost distribution •Reaches new customers •Multiplies contact points Increase Market Share Lower Cost Margins Enhanced Customers Satisfaction Internet Capability Benefits to Company Opportunity for Advantage
James A.O'Brien Introduction to Information Systems Eleventh Edition 10 Strategic Positioning of Internet Technologies High Global Market Product and Services Penetration Transformation Strategy E-Commerce Website E-Business;Extensive Value-added IT Services Intranets and Extranets Solution Cost and Performance Efficiency Improvements in Improvements Business Effectiveness E-Mail,Chat Systems Intranets and Extranets Low E-Business Processes Connectivity High Internal Drivers
James A. O’Brien Introduction to Information Systems Eleventh Edition 10 Strategic Positioning of Internet Technologies Global Market Penetration E-Commerce Website Value-added IT Services Product and Services Transformation E-Business; Extensive Intranets and Extranets Cost and Efficiency Improvements E-Mail, Chat Systems Performance Improvements in Business Effectiveness Intranets and Extranets Strategy Solution Low High High E-Business Processes Connectivity Internal Drivers