Lecture 3

Question 1

IT Assets

Answer 1

Anything that can be used by a firm in its processess for creating, producing or **offering products **

Goods/Service

• IT Infrastructure
• Software (IS)
• Information repsository
• Used to protect information
• TANGIABLE
  
  • Can be bought
  • Sold
  • Repaired
  • Maintained

Question 2

What is IT Capabilities?

Answer 2

• Something that is learned or developed overtime and used by the firm to create, produce or offer its products using **IT assets **
• Technical Skill
• Relationship Skill
• Learnt Objective
• IT Management Skill
• INTANGIABLE

Question 3

The three traditional views on strategy:

Answer 3

• Porter’s Five Forces (5Fs) External Analysis
• Porter’s Value Chain (VC) Internal Analysis
• Resource Based View of the Firm (RBV)

Question 4

Portor’s Five Forces - Draw the diagram

Answer 4

Porter five forces analysis is a framework to analyze level of competition within an industry and business strategy development.

Question 5

What is the Potential threat of new entrants?

Answer 5

AIM: Offer products/services that are difficult to displace based on unique features

Companies try to build “barriers” to prevent others to enter, lowering competition

Question 6

Bargaining power of suppliers

Answer 6

• Suppliers strive to lock-in customers
• Suppliers lock-in reduces options in procurement and, therefore, the profitability of a company
• Not able to compete without Information System
  
  • Find new ways to provide imitaitive services to keep **loyal customers **

Question 7

Bargaining power of Buyers

Answer 7

• Customers can shape the competitive environment
• Companies can use IS to build switching costs and prevent customers to leave

Question 8

Threat of substitue of products

Answer 8

Competition increases with the number of substitute products to satisfy customers ** **

Question 9

Value Chain

Answer 9

Value Chain model address: The activities, creates, deliver + support a **company’s product/services **

Question 10

Resource-Based View of the Firm

Answer 10

• Firm as a bundle of resources
• The objectives is to achieve
• Useful to determine if a firm’s srategy has created value by using IT

Short-term competitive advantage :

VALUEABLE or RARE

Sustainable (over-time) Competitive

• Hard to imitate
• Hard to substitute