الأحد، 18 مايو 2014

chapter 2

Information Systems and the Modern Organization

nBusiness Process: a collection of related activities that produce a product or a service of value to the organization, its business partners, and/or its customers.

nOne functional area

nCross-functional

 

 

Business Process Reengineering (BPR):



 


a radical redesign of a business process that improves Its efficiency and effectiveness, often by beginning with a “clean sheet.”

 

 


Business Process Management (BPM)

A management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.

üCustomer satisfaction
üCost reduction
üQuality
üDifferentiation
 

Business Pressures:

n The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities.

n Significant changes in any of these factor are likely to create business pressure on the organization.
 
nMarket Pressures
nTechnology Pressures
nSocietal Pressures
 
 
 
see the video  
 

 

 

Organizational Responses

 



nStrategic Systems

nincrease market share and/or profits

nbetter negotiate with suppliers

nprevent competitors from entering their markets.

nCustomer Focus

nRetaining current customers and attracting new ones

 

nMake-to-Order and mass customization

nproducing customized products and services

nReebok

nDell

nE-business and E-commerce

nBuying and selling products and services electronically.

n E-business is a broader concept than e-commerce.

nB2C , C2C, B2B

 

 

Competitive Advantage and  Strategic Information Systems

 


nCompetitive Advantage
An advantage over competitors in some measure such as cost, quality, or speed, leads to control of a market and to larger-than average profits.
 
 
 
nStrategic Information Systems
provide a competitive advantage by helping an organization to implement its strategic goals and to increase its performance and productivity
 
 
þCost Strategy
Example: Using computer-aided manufacturing systems to lower production costs
       creating web sites for electronic commerce to lower marketing costs
þDifferentiation Strategy
Example: Providing fast and complete customer support services via the  Internet
þInnovation Strategy
Example :Introduce unique product/service that include IS compo net

þCustomer- orientation Strategy : concentrate on making customers happy
 
 
 
 

 Types of Competitive Advantages
 
 
 
 
 
Porter’s Competitive Forces Model
The best-known framework for analyzing competitiveness is Michael Porter’s competitive forces model (Porter, 1985).
 
Text Box:  
Figure 2: Porter's Competitive Force Model
 
 


nThreat of entry of new competitors is high when it is easy to enter a market and low when significant barriers to entry exist. 

nA barrier to entry is a product or service feature that customers expect from organizations in a certain industry. 
nFor most organizations, the Internet increases the threat that new competitors will enter a market.

 
nThe bargaining power of suppliers is high when buyers have few choices and low when buyers have many choices.

nInternet impact is mixed.  Buyers can find alternative suppliers and compare prices more easily, reducing power of suppliers.

nOn the other hand, as companies use the Internet to integrate their supply chains, suppliers can lock in customers.

 


nThe bargaining power of buyers is high when buyers have many choices and low when buyers have few choices.
nInternet increases buyers’ access to information, increasing buyer power.
nInternet reduces switching costs, which are the costs, in money and time, to buy elsewhere.  This also increases buyer power.
nThe threat of substitute products or services is high when there are many substitutes for an organization’s products or services and low where there are few substitutes.

nInformation-based industries are in the greatest danger from this threat (e.g., music, books, software).  The Internet can convey digital information quickly and efficiently.

 
The rivalry among firms in an industry is high when there is fierce competition and low when there is not

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