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IT 360T > IT: Chapter 3: Achieving Competitive Advantage with Informaiton Systems > Flashcards

IT: Chapter 3: Achieving Competitive Advantage with Informaiton Systems Flashcards

1
Q

One way to understand Competitive advantage is

A

Porter’s Competitive Forces Model

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2
Q

ABBREV: Five competitive forces that shape fate of firm

A

TNSCS

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3
Q

Five competitive forces that shape fate of firm

A 
Traditional Competitors
New Market Entrants
Substitute products and services
Customers
Suppliers
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4
Q

Traditional competitors

A

continuously devise new products new efficiencies, switching costs

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4
Q

New market entrants

A

some have low barriers to entry

newer companies may have advantages

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5
Q

substitute products and services

A

can purchase somewhere else if your prices are too high

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6
Q

Customers

A

can customers easily switch?

Can customers force firm to compete based on price?

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7
Q

Suppliers

A

The more suppliers a firm has, the greater control it can exercise over suppliers

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8
Q

ABBREV: Information Strategies for Dealing with Competitive Forces

A

LPFS

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9
Q

Information Strategies for Dealing with Competitive Forces

A

Low-cost leadership
Product differentiation
Focus on market niche
Strengthen customer and supplier intimacy

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10
Q

Low-cost leadership

A

use information systems to achieve the lowest operational costs and the lowest prices

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11
Q

Example of low-cost leadership

A

walmart

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12
Q

Product differentiation

A

use information systems to enable new products and services or greatly change the customer convenience using existing products and services

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13
Q

Example of product differentiation

A

Nike iD

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14
Q

Focus on market niche

A

use information systems to enable specific market focus, and serve narrow target market better than competitors

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15
Q

Example of focus on market niche

A

Hilton Hotel’s ONQ system

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16
Q

Strengthen customer and supplier intimacy

A

strong linkages to customer and suppliers increase switching costs and loyalty

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17
Q

Example of Strengthen customer and supplier intimacy

A

Toyota, Amazon

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18
Q

ABBREV: the internet’s impact on competitive advantage

A

EELCTC

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19
Q

the internet’s impact on competitive advantage

A
  • Enables new products and services
  • Encourage substitute products
  • lowers barrier to entry
  • Changes balance of power to customer and suppliers
  • Transforms some industries
  • Creates new opportunities for creating new markets
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20
Q

Value chain model

A

highlights the specific activities in a business where competitive strategy can best be applied where information systems are likely to have strategic impact

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21
Q

ABBREV: Parts of the Business Value Chain Model

A

PSBB

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22
Q

Parts of the Business Value Chain Model

A

Primary activities
Support activities
Benchmarking
Best Practices

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23
Q

Primacy Activities

A

directly related to the production and distribution of the firm’s products and services

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24
Q

Support activities

A

make the delivery of the primary activities possible

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25
Q

Support activities consists of

A

Administration Management
Human Resources
Technology

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26
Q

Benchmarking

A

involves comparing the efficiency and the effectiveness of your business processes against strict standards and then measuring performance against those standards

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27
Q

Best practices

A

identified by consulting companies, research organizations, government agencies, industry associations as the most successful solutions or problem-solving methods for consistently and effectively achieving a business objective

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28
Q

A firm’s value chain is linked to

A

the value chains of its suppliers, distributors, and customers

29
Q

Value web

A

collection of independent firms that use information technology to coordinate their value chains to produce a product collectively

30
Q

Synergies develops when

A

outputs of some units can be used as inputs to other units

31
Q

Synergies have

A

lower costs and generate profits

32
Q

Synergies is enabled by

A

information systems that ties together disparate units so they act as a whole

33
Q

Core competency

A

activities in which firm is world-class leader

34
Q

Core competency relies on

A

knowledge that is gained over many years of experience as well as knowledge research

35
Q

What enhances competency

A

any information system that encourages the sharing of knowledge across business units

36
Q

Network-based strategies include

A

Network economics

Virtual company

37
Q

Networks economics

A

marginal costs of adding another participant are near zero whereas marginal gain is much larger

38
Q

Virtual company

A

uses networks to link people, resources, and ally with other companies to create and distribute products without traditional organizational boundaries or physical locations

39
Q

Disruptive technologies

A

technologies with disruptive impact on industries and businesses rendering existing products, services and business models obsolete

40
Q

firms movers of disruptive technologies may

A

fail to see potential allowing second movers to reap rewards (fast followers)

41
Q

ABBREV: Globalization benefits

A

SHS

42
Q

Globalization benefits

A
  • scale economies and resource reduction
  • higher utilization rates, fixed capital costs, and lower cost per unit of production
  • speeding time to market
43
Q

ABBREV: Global business and system Strategies

A

DMFT

44
Q

Global business and system Strategies

A

Domestic exporters
Multinationals
Franchisers
Transnationals

45
Q

Domestic exporters

A

heavy centralization of corporate activities in home country

46
Q

Multinationals

A

concentrates financial management at central home base while decentralizing production, sales, and marketing to other countries

47
Q

Franchisers

A

products created, designed, financed, and initially produced in home country but rely on foreign units for further production, marketing, and hum resources

48
Q

Transnationals

A

regional (not national) headquarters and perhaps world headquarters optimizing resources as needed

49
Q

ABBREV: Global System Configurations

A

CDDN

50
Q

Global System Configurations

A

Centralized systems
Duplicated systems
Decentralized Systems
Network systems

51
Q

Centralized systems

A

all developments and operation at domestic home base

52
Q

Duplicated systems

A

developments at home base but operations managed b autonomous unit in foreign locations

53
Q

Decentralized systems

A

each foreign unit designs own solutions and systems

54
Q

Network systems

A

development and operations occur in integrated and coordinated fashion across all units

55
Q

ABBREV: types of Quality

A

PCTS

56
Q

types of Quality

A

Producer perspective
Customer perspective
Total Quality management (TQM)
Six Sigma

57
Q

Producer perspective

A

conformance to specifications and absence of variation from specs

58
Q

Customer perspective

A

physical quality, quality of service, psychological quality

59
Q

Total Quality management (TQM

A

all people, functions responsible for quality

60
Q

Six Sigma

A

measure of quality

61
Q

ABBREV: how information systems improve quality

A

RBUII

62
Q

how information systems improve quality

A
  • Reduce cycle time and simplify production process
  • Benchmarking
  • Use customer demands to improve products and services
  • Improve design quality and precision
  • Improve production precision and tighten production tolerances
63
Q

Improve design quality and precision using

A

Computer-aided Design (CAD) systems

64
Q

Computer-aided Design (CAD) systems

A

automates the creation and revision of design using computers and sophisticated graphic software

65
Q

Business Process Management (BPM)

A

an approach to business which aims to continuously improve business processes

66
Q

BPM uses variety of tools to

A
  • understand existing processes

- design and optimize new processes

67
Q

ABBREV: Steps in BPM

A

IADIC

68
Q

Steps in BPM

A
  • Identify process for change
  • Analyze existing processes
  • Design new process
  • Implement new process
  • Continuous measurement
69
Q

Business Process Reengineering (BPR)

A

a radical form of fast change

70
Q

BPR is not

A

a continuous improvement, but elimination of old processes, replacement with new processes in a brief time period

71
Q

BPR can produce

A

dramatic gains in productivity and more organizational resistance to change

IT 360T (10 decks)

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