Ch3 & 4 Flashcards
– is a stable, formal social structure that takes resources from the environment and processes them to produce outputs.
Organization
– are precise rules, procedures, and practices that have been developed to cope with virtually all expected situations.
Routines/Standard Operating Procedures
– are substitute products that perform as well as or better (often much better) than anything currently produced.
Disruptive Technologies
– according to this theory, firms and individuals seek to economize on transaction costs, much as they do on production costs.
Transaction Cost Theory
– according to this theory, the firm is viewed as a “nexus of contracts” among self-interested individuals rather than as a unified, profit-maximizing entity.
Agency Theory
– based more on history and sociology than economics also support the notion that IT should flatten hierarchies.
Postindustrial Theories
– provides a general view of the firm, its competitors, and the firm’s environment
Michael Porter’s Competitive Forces Model
This uses information systems to enable new products and services or greatly change the customer convenience in using the existing products and services.
Product Differentiation
– directly links consumer behavior to distribution and production and supply chains.
Efficient Customer Response System
use information systems to achieve the lowest operational costs and the lowest prices.
Low-Cost Leadership –
– ability to offer individually tailored products or services using the same production resources as mass production.
Mass Customization
– use information systems to enable a specific market focus and serve this narrow target market better than competitors.
Market Niche
the cost of switching from one product to a competing product.
Switching Costs –
– the growing use of sensors in industrial and consumer products.
Internet of Things (IoT)
– This provides specific information and critical leverage points which assists the company in identifying what information technology should be used to effectively enhance its competitive standing.
Value Chain Model
– are most directly related to the production and distribution of the firm’s products and services, which create value for the customer. Primary activities include inbound logistics, operations, outbound logistics, sales and marketing, and service. Inbound logistics includes receiving and storing materials for distribution to production.
Primary Activities
– make the delivery of the primary activities possible and consist of organization infrastructure (administration and management), human resources (employee recruiting, hiring, and training), technology (improving products and the production process), and procurement (purchasing input).
Support Activities
– involves comparing the efficiency and effectiveness of your business processes against strict standards and then measuring performance against those standards.
Benchmarking
– 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.
Value Web
– is an activity for which a firm is a world-class leader.
Core Competency
– 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.
Synergies
