Chapter 3 Achieving competitive advantage with information systems

Chapter 3 Achieving competitive advantage with information systems

1. Digital Strategy revail

   • AT&T vs Verizon
     • Competition and bussiness model System change, Apple and Skype
     • Strategy change due to information Systems
       • AT&T
         • Low price
       • Verizon
         • High cost and product quality

2. Information Systems to achive competitive advantages

   • Porter's competitive forces model
     • • Traditional Competitors
         • The innovative and more efficient drive the market
       • New Market Entrance
         • Requares outside financing
         • Little brand recognition
       • Substitute products and services
         • Proce is a driver on the customer desition
         • New susbstitutes are create
       • Suppliers
         • business prices can't grow as fast as the supplier pricess rise
       • Customer
         • Attact customers to the business inted of the competitors,change prices
     • The business Value Chain Model
       • Where the competitive strategies can be applied
       • Expanding the value Chain: The Value Web
         • Amazon.com
           • Web Value
         • Web Synchronizes
           • Web value
   • Information Sysmtems improve Quality
     • Reduce cycle time and simplify the production process
     • Benchmark
     • Use customers demands to improve products and services
     • Improve Design Quality and precision
     • Improve production Precision and tighten production tolerances

3. Information System Strategies for dealing with competitive forces

   • Align the IT with the business objetives
   • Low-cost Leadership
     • Walmart
       • Efficient customer response system
         • Cash register systems
         • Supplyers orders directly produce
         • Purchaseing systems
   • Production Diferentiation
     • Mass Customization
   • Focus on Market Niche
     • serve to a narrow target of clients
   • Customer and Suppler intimacy
     • Close the gab between manofactures and the customers

4. Strategies

   • Synergies
     • Business units as one, no Silos
     • Other BU can use the others information
   • Enhancing core competencies
     • Knowledge is the base on the business
     • Be the one with a unique product or development in high quality
   • Network-Base Strategies
     • In-side or Out-side networking
     • Virtual Company's link people or resources to othe people
     • Direct manofactures PO placements

5. Business process Management

   • BPM
     • 1) Identify processes for change
     • 2) Analyze existing processes
       • Books store "as-is"
         • Book store
     • 3) Design the new process
     • 4) Implement the new process
     • 5) Continuous measurement
   • BPR

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