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Chap 3 MIS16

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Tuấn Trần Bảo
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28 views

Chap 3 MIS16

Uploaded by

Tuấn Trần Bảo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Which features of

organizations do
managers need to • An organization is a stable, formal social structure
that takes resources from the environment and
know about to build processes them to produce outputs. This technical
definition focuses on three elements of an
and organization. Capital and labor are primary
production factors provided by the environment.
use information
systems
successfully?
Features of Organizations
• Routines and Business Processes
• Organizational Politics
• Organizational Culture
• Organizational Environments
• Organizational Structure
What is the impact of information systems on
organizations?
• Economic Impacts
• Organizational and Behavioral Impacts
• IT Flattens Organizations
• Postindustrial Organizations
• Understanding Organizational Resistance to Change
How do Porter’s
competitive forces model,
the value chain model,
synergies,
core competencies,
and network economics
help companies develop
competitive strategies
using information
systems?
Information System Strategies for Dealing with
Competitive Forces
• There are four generic strategies, each of which often is enabled by
using information technology and systems:
• low-cost leadership,
• product differentiation,
• focus on market niche,
• and strengthening customer and supplier intimacy.
The Business Value Chain Model
• The value chain model highlights specific activities in the business
where competitive strategies can best be applied (Porter, 1985) and
where information systems are most likely to have a strategic impact.
• This model identifies specific, critical leverage points where a firm can
use information technology most effectively to enhance its
competitive position.
• The value chain model views the firm as a series or chain of basic
activities that add a margin of value to a firm’s products or services.
These activities can be categorized as either primary activities or
support activities.
Value Web
• Internet technology has made it possible to create highly
synchronized industry value chains called value webs.
• A value web is a collection of independent firms that use information
technology to coordinate their value chains to produce a product or
service for a market collectively.
• It is more customer driven and operates in a less linear fashion than
the traditional value chain.
Value web
For instance, if you are Amazon.com, you want to build systems that
• Make it easy for suppliers to display goods and open stores on the
Amazon site
• Make it easy for customers to pay for goods
• Develop systems that coordinate the shipment of goods to customers
• Develop shipment tracking systems for customers
Synergies, Core Competencies, and Network-
Based Strategies
• Synergies - The idea of synergies is that when the output of some units can be used as
inputs to other units or two organizations pool markets and expertise, these relationships
lower costs and generate profits.
• A core competency is an activity for which a firm is a world-class leader. Core
competencies may involve being the world’s best miniature parts designer, the best
package delivery service, or the best thin-film manufacturer. In general, a core
competency relies on knowledge that is gained over many years of practical field
experience with a technology.
Synergies, Core Competencies, and Network-
Based Strategies
• Network Economics Network economics refers to market situations where the economic
value being produced depends on the number of people using a product. For certain
products and markets, the real economic value comes from the fact that other people
use the product. In these situations, “network effects” are at work.
What are the
challenges
posed by
strategic 01 02 03
Sustaining Aligning IT Managing
information Competitive with Business Strategic
systems, and Advantage Objectives Transitions

how should
they be
addressed?

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