Lecture 4: Digitization and Competitive Advantage Flashcards
What is operational effectiveness?
Performing the same tasks as rivals but better
What are techniques used in operational effectiveness?
- Product quality
- Optimizing production processes
- Reducing overhead costs
- Improving customer experiences
What is the danger of operational effectiveness strategy?
Resulting in sameness, making product a commodity and fierce competition
What are the two forms strategic positioning?
- Performing different tasks than rivals
2. Performing the same tasks i a totally different manner
What is the resource based view for competitive advantage?
The tangible and intangible assets which are tied semipermanently to the firm
For a competitive advantage, resources must be…
- Valuable
- Rare
- Imperfectly imitable
- Non-substitutable
What is a imitation resistant value chain?
A set of activities to create and deliver value to customers that cannot be easily replicated
What is the brand of a company?
The symbolic embodiment of all the information connected with a product
What is scalability?
Products and services that can be extended to a large number of customers at low marginal costs
What are switching costs?
Expenses incurred when switching to a competing product
What is a RFID system?
- RFID systems consists of tags and readers
- Tags can be passive or active
- Passive tags use energy from reader waves to send response
- Active tags contain small energy source to send response
- RFID does not require line of sight
What are three benefits of using RFID?
- Automation of processes
- Process transformation
- Further insight regarding performance
What are potential issues of using RFID?
- Data privacy
- Costs
What are all aspects of Information Systems?
- Hardware and software
- Data
- Procedures
- People
What are three lessons from the Netflix case?
- Digital goods and the long tail
- The long-enough tail
- Collaborative filtering and data asset
