Information Systems - Chapter 2: Competing with Information Technology

Chapter 2Competing with Information TechnologyLearning ObjectivesIdentify several basic competitive strategies and explain how they use information technologies to confront the competitive forces faced by business.Identify several strategic uses of Internet technologies and give examples of how they can help a business gain competitive advantages.Learning ObjectivesGive examples of how business process reengineering frequently involves the use of Internet technologies.Identify the business value of using Internet technologies to become an agile competitor or form a virtual company.Explain how knowledge management systems can help a business gain strategic advantages.Section 1Fundamentals of Strategic AdvantageI. Strategic ITTechnology is now the actual cause and driver of business strategiesTechnology is no longer an afterthought in forming business strategiesII. Competitive Strategy ConceptsIV. Building A Customer-Focused Business – Strategic Focus on Customer ValueRecognizing that Quality, not Price, has become the primary factor in a customer’s perception of valueInternet technologies can make customers the focal point of e-business applicationsSection 2Using Information Technology for Strategic AdvantageI. Strategic Uses of ITSupport everyday operations (non-strategic)Use IT as a major competitive differentiator (strategic)II. Reengineering Business ProcessesBusiness Process Reengineering (BPR)High Potential Payback, but High Risk of FailureOrganizational RedesignProcess TeamsCase ManagersThe Role of Information Technology – IT plays a major role in BPRIII. Becoming An Agile CompanyBusiness today is changing from mass market products/services that were standardized, long-lived, information-poor, exchanged in one-time transactions to global competition with niche markets that are individualized, short-lived, information-rich, exchanged on an ongoing basis with customersIV. Creating A Virtual CompanyVirtual Company – Uses the Internet, intranets and extranets to create virtual workgroups and support alliances with business partnersVirtual Company StrategiesShare infrastructure and risk with alliance partnersLink complimentary core competenciesReduce concept-to-cash time through sharingIncrease facilities and market coverageGain access to new markets and share market or customer loyaltyMigrate from selling products to selling solutionsV. Building a Knowledge-Creating CompanyOne sure Source of Competitive Advantage is KnowledgeThe Business of a “Knowledge-Creating” company is Continuous InnovationV. Building a Knowledge-Creating CompanyExplicit Knowledge – written down or stored on computersTacit Knowledge – “how-to” knowledge residing in the workers; very important but little incentive to share this information so it is never written downVI. Knowledge Management SystemsGoal of Knowledge Management – to create, organize, and disseminate important business knowledge whenever and wherever it is needed in the organizationKnowledge Management systems:Facilitate organizational learning and knowledge creationProvide rapid feedback top knowledge workersEncourage employee behavioral changeSignificantly improve business performance