Quiz 1 Flashcards
What is an information system?
“Information systems are interrelated components working together to collect,
process, store, and disseminate information to support decision making, coordination,
control, analysis, and visualization in an organization.”
All definitions have the components that make up an information system and the role those components play in an organization.
The components of an information system
Hardware, software, data (tech aspect)
People, process
The productivity paradox
Our inability to unequivocally
document any contribution of IT is caused by -
1) Mismeasurement of outputs and inputs
2) Lags due to learning and adjustment
3) Redistribution and dissipation of profits
4) Mismanagement of information and technology
Porter’s 5 forces model
(1) the intensity of rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute goods or services, (4) the bargaining power of buyers, and (5) the bargaining power of suppliers
Value chain model
The value chain is the “set of activities through which a product or service is created and delivered to customers.” The primary components are as follows:
• Inbound logistics—getting needed materials and other inputs into the firm from suppliers
• Operations—turning inputs into products or services
• Outbound logistics—delivering products or services to consumers, distribution centers, retailers, or other partners
• Marketing and sales—customer engagement, pricing, promotion, and transaction
• Support—service, maintenance, and customer support
The secondary components are the following:
• Firm infrastructure—functions that support the whole firm, including general management, planning, IS, and finance
• Human resource management—recruiting, hiring, training, and development
• Technology / research and development—new product and process design
• Procurement—sourcing and purchasing functions
Strategic Use of IS for Dealing with Competitive Forces
- Deliver a product or a service at a lower cost
- Deliver a product or service that is differentiated
- Help an organization focus on a specific market segment
- Enable innovation
Examples:
ü Business Process Management Systems
ü Electronic Data Interchange (supply change)
ü Collaborative Systems (multiple users)
ü Decision Support Systems (decision making)
IS and Competitive Advantage
- Competitive Advantage – Performance that consistently outperforms their industry peers
- Operational effectiveness Vs strategic positioning
- Resource based view – Develop resources that are valuable rare, imperfectly imitable (tough to imitate), and non-substitutable
Operational effectiveness vs strategic positioning
Operational effectiveness refers to performing the same tasks better than rivals perform them. Everyone wants to be better, but the danger in operational effectiveness is “sameness.”
Strategic positioning refers to performing different activities from those of rivals, or the same activities in a different way.
Fast follower problem
The fast follower problem exists when savvy rivals watch a pioneer’s efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost.
Higher inventory turns
Higher inventory turns mean the firm is selling product faster, so it collects money quicker than its rivals do.
Resource-based view of competitive advantage
These resources must be (1) valuable, (2) rare, (3) imperfectly imitable (tough to imitate), and (4) nonsubstitutable.
Imitation-resistant value chain
imitation-resistant value chain have developed a way of doing business that others will struggle to replicate, and in nearly every successful effort of this kind, technology plays a key enabling role.
Brand
A firm’s brand is the symbolic embodiment of all the information connected with a product or service, and a strong brand can also be an exceptionally powerful resource for competitive advantage.
Scale and economies of scale
Advantages related to a firm’s size are referred to as scale advantages. Businesses benefit from economies of scale when the cost of an investment can be spread across increasing units of production or in serving a growing customer base. Firms that benefit from scale economies as they grow are sometimes referred to as being scalable.
Switching costs
Switching costs exist when consumers incur an expense to move from one product or service to another.
