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IT 360T > IT: Chapter 3: Achieving Competitive Advantage with Informaiton Systems > Flashcards

IT: Chapter 3: Achieving Competitive Advantage with Informaiton Systems Flashcards

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1
Q

One way to understand Competitive advantage is

A

Porter’s Competitive Forces Model

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2
Q

ABBREV: Five competitive forces that shape fate of firm

A

TNSCS

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3
Q

Five competitive forces that shape fate of firm

A 
Traditional Competitors
New Market Entrants
Substitute products and services
Customers
Suppliers
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4
Q

Traditional competitors

A

continuously devise new products new efficiencies, switching costs

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4
Q

New market entrants

A

some have low barriers to entry

newer companies may have advantages

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5
Q

substitute products and services

A

can purchase somewhere else if your prices are too high

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6
Q

Customers

A

can customers easily switch?

Can customers force firm to compete based on price?

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7
Q

Suppliers

A

The more suppliers a firm has, the greater control it can exercise over suppliers

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8
Q

ABBREV: Information Strategies for Dealing with Competitive Forces

A

LPFS

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9
Q

Information Strategies for Dealing with Competitive Forces

A

Low-cost leadership
Product differentiation
Focus on market niche
Strengthen customer and supplier intimacy

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10
Q

Low-cost leadership

A

use information systems to achieve the lowest operational costs and the lowest prices

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11
Q

Example of low-cost leadership

A

walmart

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12
Q

Product differentiation

A

use information systems to enable new products and services or greatly change the customer convenience using existing products and services

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13
Q

Example of product differentiation

A

Nike iD

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14
Q

Focus on market niche

A

use information systems to enable specific market focus, and serve narrow target market better than competitors

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15
Q

Example of focus on market niche

A

Hilton Hotel’s ONQ system

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16
Q

Strengthen customer and supplier intimacy

A

strong linkages to customer and suppliers increase switching costs and loyalty

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17
Q

Example of Strengthen customer and supplier intimacy

A

Toyota, Amazon

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18
Q

ABBREV: the internet’s impact on competitive advantage

A

EELCTC

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19
Q

the internet’s impact on competitive advantage

A
  • Enables new products and services
  • Encourage substitute products
  • lowers barrier to entry
  • Changes balance of power to customer and suppliers
  • Transforms some industries
  • Creates new opportunities for creating new markets
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20
Q

Value chain model

A

highlights the specific activities in a business where competitive strategy can best be applied where information systems are likely to have strategic impact

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21
Q

ABBREV: Parts of the Business Value Chain Model

A

PSBB

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22
Q

Parts of the Business Value Chain Model

A

Primary activities
Support activities
Benchmarking
Best Practices

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23
Q

Primacy Activities

A

directly related to the production and distribution of the firm’s products and services

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24
Support activities
make the delivery of the primary activities possible
25
Support activities consists of
Administration Management Human Resources Technology
26
Benchmarking
involves comparing the efficiency and the effectiveness of your business processes against strict standards and then measuring performance against those standards
27
Best practices
identified by consulting companies, research organizations, government agencies, industry associations as the most successful solutions or problem-solving methods for consistently and effectively achieving a business objective
28
A firm's value chain is linked to
the value chains of its suppliers, distributors, and customers
29
Value web
collection of independent firms that use information technology to coordinate their value chains to produce a product collectively
30
Synergies develops when
outputs of some units can be used as inputs to other units
31
Synergies have
lower costs and generate profits
32
Synergies is enabled by
information systems that ties together disparate units so they act as a whole
33
Core competency
activities in which firm is world-class leader
34
Core competency relies on
knowledge that is gained over many years of experience as well as knowledge research
35
What enhances competency
any information system that encourages the sharing of knowledge across business units
36
Network-based strategies include
Network economics | Virtual company
37
Networks economics
marginal costs of adding another participant are near zero whereas marginal gain is much larger
38
Virtual company
uses networks to link people, resources, and ally with other companies to create and distribute products without traditional organizational boundaries or physical locations
39
Disruptive technologies
technologies with disruptive impact on industries and businesses rendering existing products, services and business models obsolete
40
firms movers of disruptive technologies may
fail to see potential allowing second movers to reap rewards (fast followers)
41
ABBREV: Globalization benefits
SHS
42
Globalization benefits
- scale economies and resource reduction - higher utilization rates, fixed capital costs, and lower cost per unit of production - speeding time to market
43
ABBREV: Global business and system Strategies
DMFT
44
Global business and system Strategies
Domestic exporters Multinationals Franchisers Transnationals
45
Domestic exporters
heavy centralization of corporate activities in home country
46
Multinationals
concentrates financial management at central home base while decentralizing production, sales, and marketing to other countries
47
Franchisers
products created, designed, financed, and initially produced in home country but rely on foreign units for further production, marketing, and hum resources
48
Transnationals
regional (not national) headquarters and perhaps world headquarters optimizing resources as needed
49
ABBREV: Global System Configurations
CDDN
50
Global System Configurations
Centralized systems Duplicated systems Decentralized Systems Network systems
51
Centralized systems
all developments and operation at domestic home base
52
Duplicated systems
developments at home base but operations managed b autonomous unit in foreign locations
53
Decentralized systems
each foreign unit designs own solutions and systems
54
Network systems
development and operations occur in integrated and coordinated fashion across all units
55
ABBREV: types of Quality
PCTS
56
types of Quality
Producer perspective Customer perspective Total Quality management (TQM) Six Sigma
57
Producer perspective
conformance to specifications and absence of variation from specs
58
Customer perspective
physical quality, quality of service, psychological quality
59
Total Quality management (TQM
all people, functions responsible for quality
60
Six Sigma
measure of quality
61
ABBREV: how information systems improve quality
RBUII
62
how information systems improve quality
- Reduce cycle time and simplify production process - Benchmarking - Use customer demands to improve products and services - Improve design quality and precision - Improve production precision and tighten production tolerances
63
Improve design quality and precision using
Computer-aided Design (CAD) systems
64
Computer-aided Design (CAD) systems
automates the creation and revision of design using computers and sophisticated graphic software
65
Business Process Management (BPM)
an approach to business which aims to continuously improve business processes
66
BPM uses variety of tools to
- understand existing processes | - design and optimize new processes
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ABBREV: Steps in BPM
IADIC
68
Steps in BPM
- Identify process for change - Analyze existing processes - Design new process - Implement new process - Continuous measurement
69
Business Process Reengineering (BPR)
a radical form of fast change
70
BPR is not
a continuous improvement, but elimination of old processes, replacement with new processes in a brief time period
71
BPR can produce
dramatic gains in productivity and more organizational resistance to change

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