Chapter 3 Flashcards
are primary production factors provided by the environment.
Capital and Labor
transforms these inputs into products and services into production
Organization
are consumed by the environments in return for supply inputs
Products and Services
All organizations, including business firms, become very efficient over time because individuals in the firm develop _____ for producing goods and services.
routines
is a powerful unifying force that restrains political conflict and promotes common understanding, agreement on procedures, and common practices.
Organizational Culture
is one of the greatest difficulties of bringing about organizational change- especially the development of new information system.
Political Resistance
The kind of information systems you find in the business firm and the nature of problems with these systems often reflects the type of _______
organizational structure.
firms and individuals seek to economize on transaction costs, much as they do on production costs.
Transaction Cost Theory
Large, bureaucratic organizations, which primarily developed before the computer age, are often inefficient, slow to change, and less competitive than newly organizations.
IT Flattens Organizations
based more on history and sociology than economics also support the notion that IT should flatten hierarchies.
Post-Industrial Theories
Internet, specially World Wide Web
), has an important impact on the relationships between many firms and external entities, and even on the organization of business processes inside a firm
This is the most widely used model for understanding competitive advantage.
Porter’s Competitive Forces Model
All firms share market space with other competitors who are continuously devising new, more efficient ways to produce by developing their brands and imposing switching costs on their customers
Traditional Competitors
In a free economy with mobile labor and financial resources new companies are always entering the market place. In some industries, there are very low barriers to entry, whereas in other industries, entry is difficult
New Market Entrants
In just about every industry, there are substitutes that your customers might use if your prices become too high. New technologies create new substitutes all the time
Substitute Products and Services
A profitable company depends in large measure on its ability to attract and retain customers
Customers
The market power of suppliers can have a significant impact on firm profits, especially when the firm cannot raise prices as fast as can suppliers.
Suppliers
Use information to achieve the lowest cost and the lowest prices.
Low-Cost Leadership
Use information system to enable new products and services, or greatly change the customer’s convenience by using your existing products and services
Product Differentiation
Use information system to enable specific market focus, and serve this narrow target market better than competitors.
Focus on Market Niche
Use information system to tighten linkages with suppliers and develop intimacy with customers
Strengthen Customer and Supplier Intimacy
Highlights specific activities in business where competitive strategies can be best be applied and where information systems are most likely to have a strategic impact.
Value Chain Model
Are more directly related to the production and distribution of the firm’s products and services, which create value for the customer.
Primary Activities
It makes the delivery of the primary activities possible and consist of organization infrastructure, human resources, technology, and procurement.
Support activities
It 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
The idea of synergy 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
Is an activity for which a firm is a world-class leader. It relies on the knowledge that is gained over many years.
Core Competencies
Network-based Strategy
It includes the use of:
- network economics,
- a virtual company model
- business ecosystems.
a movement between sociotechnical systems.
strategic transitions
