Analytical Frameworks & Process Analysis Flashcards
What is KIT and what does it do?
knowledge, information, technology
improves organizational performance
What is something that will cause a company to earn a lot of money and have a lot of growth?
Superior performance
What makes a company able to survive long term?
its ability to survive
- competition against: existing competitors, DNF
What are Porter’s Five Forces?
- supplier power
- buyer power
3, competitive rivalry - threat of substitution
- threat of new entry
What is supplier power?
An assessment of how easy it is for suppliers to drive up prices. This is driven
by the: number of suppliers of each essential input; uniqueness of their product or service; relative
size and strength of the supplier; and cost of switching from one supplier to another.
What is buyer power?
An assessment of how easy it is for buyers to drive prices down. This is driven by
the: number of buyers in the market; importance of each individual buyer to the organization; and
cost to the buyer of switching from one supplier to another. If a business has just a few powerful
buyers, they are often able to dictate terms.
What is competitive rivalry?
The main driver is the number and capability of competitors in the market.
Many existing competitors, offering undifferentiated products and services, will reduce market
attractiveness.
What is the threat of substitution?
Where close substitute products exist in a market, it increases the
likelihood of customers switching to alternatives in response to price increases. This reduces both
the power of suppliers and the attractiveness of the market.
What is the threat of new entry?
Profitable markets attract new entrants, which erodes profitability. Unless
the industry (incumbents) has strong and durable barriers to entry, for example, patents,
economies of scale, capital requirements or government policies, then profitability will decline to a
competitive rate.
What is proprietary/non-proprietary software/hardware?
proprietary: owned and licensed by a single firm
non-proprietary: not
(typically a patent is required for something to be proprietary)
What does hardware compatibility mean?
when a software works well with a specific hardware
What does MECE stand for?
mutually exclusive & collectively exhaustive
ME: information should be grouped into categories so that each category is separate and distinct without any overlap
CE: all categories taken together should deal with all possible options without leaving any gaps
What is digital disruption?
the shift that occurs when the introduction of a new digital technology significantly undermines the Economic, Technological, Organizational, and/or Business logics in an industry
What is the purpose of digital transformation?
to harness tech to change how an org competes in market & transform internal structures/capabilities it uses to compete
What are the 3 degrees of digital change?
Digitization, Digitalization, Digital transformation
What is digitization?
occurs when a business shifts from manual and paper-based ways of processing data
and information to computerized approaches. Businesses adapt digitization techniques to improve
how data can be used and processed. For instance, through digitization, businesses can transform
data and leverage it to enhance operations and revenues
What is digitalization?
occurs when an organization shifts from isolated islands of digital technologies to
networked and integrated technology systems which improve process flows, analyses, accuracy,
operational and speed
What is digital transformation?
occurs when an organization uses technology to critically change the way it
competes as well as its internal capabilities and internal digital assets. Digital transformation
leverages digital technology to radically improve, restructure, or entirely create new value to their
customers. For instance, Spotify has removed the need for physically collecting CDs to have a
music library. Now, with just a few clicks of a button, one can stream their favorite music anytime,
anywhere
What is DARSIL?
a framework for understanding the past, present, and future.
D define: what problems caused initiation of digital transformation
A analyze: which processes/systems need to be changed
R review: which available digital technologies are potential solutions
S select: which technologies did the company deploy
I integrate: how were these techs integrated into business/customer processes?
L learn: where is the digital transformation journey complete/incomplete
To find out: What is going on in an industry?
Use Porter’s 5 forces framework
To find out: What are my options?
use MECE framework
To find out: what is the best option?
use weighted matrix framework
How to use the Weighted Matrix approach?
“AFTER using porter’s 5 forces to determine industry happenings and using MECE to determine the possible options:
1) decide how you’re going to make the decision. Criteria to use: feasibility, desirability, viability
2) determine criteria that will be used to quantify each category
3) gather data that will represent each decision-making category
4) use the weighted matrix approach to compare the options (table format)
- determine weights to use for each category and criterion
- determine the Likert scale to be used
- compare the criteria using the Likert scale
- derive the weighted sums”
What does MECE stand for?
mutually exclusive & collectively exhausted. Categories must not overlap and all categories must be covered
What is Business Process?
the sequential arrangement of activities to achieve a business goal
Standard BP symbols:
> start/end: oval
decision: diamond
delay: rounded bottom rectangle
flow: arrow
activity: horizontal rectangle
storage by a computer: cylinder
What are the 2 types of process flow charts?
”> simple process chart (one line across)
> process charts with swim lanes (multiple lines, more in depth)”
