Chapter 1 Flashcards
Data
Raw facts that describe the characteristics of an event or object
Information
data converted into a meaningful and useful context
Areas of a company
Accounting, finance, HR, marketing, operations management, sales
What are the 3 tools to analyze competitive intelligence and develop competitive advantages?
- Five Forces Model
- 3 generic strategies
- Value chain analysis
Porter’s Five Forces Model
- Buyer power
- Supplier power
- Threat of substitute products or services
- Threat of new entrants
- Rivalry among existing competitors
Buyer power
Customers’ power to drive down prices (loyalty programs lower it)
Supplier power
Suppliers’ power to influence how much they charge for supplies
Threat of substitute products or services
Customers’ power to purchase alternatives
Threat of new entrants
Competitors’ power to enter a new market
Rivalry among existing competitors
Competitors’ power
Silo
when each dept. does its own thing without working together
5 elements of MIS
Hardware, software, data, business process, people
Competitive advantage
a feature on which customers place a greater value than they do on a similar product offered by competitors
Nicholas Carr’s argument
IT doesn’t matter and doesn’t create strategic advantage
Mark Andreessen
software is eating the world
