Chapter 2 Flashcards
A business must deal with customers, suppliers, competitors, new entrants, and substitutes.
Competitive forces
Cost leadership, differentiation of products, and new product innovation are examples.
Competitive Strategies
Using investments in technology to keep firms out of an industry.
Raise barriers to entry
- Making it unattractive for a firm’s customers or suppliers to switch to its competitors.
Lock in customers and suppliers
Strategies designed to increase the time, money, and effort needed for customers or suppliers to change to a firm’s competitors.
Create switching costs
Information systems that reengineer business processes or promote business innovation are examples.
Strategic information systems
This strategic focus recognizes that quality, rather than price, has become the primary determinant in customers choosing a product or service.
Customer value
Highlights how strategic information systems can be applied to a firm’s business processes and support activities for competitive advantage
Value chain
A business finding strategic uses for the computing and telecommunications capabilities it has developed to run its operations.
Leverage investment in IT
Information technology helping a business make radical improvements in business processes
Business process reengineerinG
A business can prosper in rapidly changing markets while offering its customers individualized
solutions to their needs
Agile Company
A network of business partners formed to take advantage of rapidly changing market opportunity
Virtual Company
. Learning organizations that focus on creating, disseminating, and managing business knowledge.
Knowledge-creating company
Information systems that manage the creation and dissemination of organizational knowledge.
Knowledge management system
Using the Internet and extranets to link a company’s information systems to those of its customers and suppliers
Interenterprise information
systems
