Theories Flashcards
Porter’s 5 Forces:
Five major forces of competition determine industry structure and how economic value is divided among the industry players in an industry
–> Threat of New Entrants
–> Bargaining Power of Suppliers
–> Bargaining Power of Buyers
–> Threat of Substitute Products or Services
–> Rivalry Among Existing Competitors
Christensen’s Theory of Disruptive Innovation:
–> New, simpler, and cheaper products or services initially target a small, overlooked customer base
–> These innovations gradually improve and eventually disrupt established market leaders
Osterwalder’s business model canvas:
A strategic tool for developing and visualizing business models. It consists of nine key building blocks:
–> Customers: Who we serve
–> Value: What we offer
–> Channels: How we deliver
–> Relationships: How we interact
–> Revenue: How we make money
–> Resources: What we need
–> Activities: What we do
–> Partnerships: Who helps us
–> Costs: What it costs us
SWOT Analysis
A strategic planning tool used to identify and analyze the internal and external factors that can impact an organization’s success
–> Strengths: What we do well
–> Weaknesses: What we can improve
–> Opportunities: External factors we can use to our advantage
–> Threats: External factors that could harm us
VMOS Analysis
A strategic tool used to assess and prioritize opportunities or challenges based on their potential impact and feasibility
–> Visibility: How clear is the situation?
–> Momentum: How much progress has been made?
–> Opportunity: What are the potential benefits?
–> Solution: What actions can we take?
Porter’s Competitive Strategies:
Strategies that businesses can use to gain a competitive advantage within their industry
–> Cost Leadership: Be the cheapest
–> Differentiation: Be unique or special
–> Focus (Niche) Strategy: Target a specific group
–> Stuck in the Middle: Company lacks clear strategy, vulnerable to competitors; not cheapest or most unique
McFarlan’s Strategic Grid:
A framework used to assess and categorize information technology (IT) projects based on their strategic importance and level of management attention.
It consists of four quadrants:
–> Strategic Segment:
Depends on existing and new IS for competitive advantage
–> Turnaround Segment:
Current IS not beneficial, but future investment could improve competitiveness.
–> Factory Segment:
Relies on current IS, but further investment won’t enhance competitiveness.
–> Support Segment:
Doesn’t expect competitive advantage from IS, present or future.
Balanced Scorecard:
The Balanced Scorecard helps organizations align business activities to the vision and strategy, improve internal and external communications, and monitor performance against strategic goals
–> Financial Measures: Traditional financial metrics (e.g., revenue, profit)
–> Customer Perspective: Customer satisfaction and retention
–> Internal Business Processes: Efficiency and effectiveness of operations
–> Learning and Growth: Innovation and employee development
IS Affordance
–> IS Affordance: How technology helps users perform specific actions
–> Design Focus: Clear, consistent, and intuitive mapping of technology capabilities to user actions
–> Goal: Make technology easy to understand and use
Picture Framework
A tool for making complex information more accessible and understandable
–> People: What is the IT used for?
–> Inspiration: What other IT will serve as inspiration or analogy?
–> Context: Which social context is the IT to be used in
–> Technology: What technology will be used to implement the IT?
–> Users: Who are the users of the IT?
Gartner’s Emerging Tech Hype Cycle
Helps businesses understand the trajectory of emerging technologies and make informed decisions about investment and adoption
–> Innovation: Introduction of new tech
–> Hype Peak: Maximum excitement
–> Disillusionment: Real-world challenges arise
–> Understanding: Improved comprehension
–> Maturity: Wide adoption and productivity
TOE Framework
Helps businesses understand the various factors that influence the adoption and implementation of technological innovations
–> Technological Context: Characteristics of the technology
–> Organisational Context: Internal factors within the organization
–> Environmental Context: External factors outside the organization
Dynamic Capabilities Theory
Helps organizations build and leverage their internal and external competencies to achieve sustainable competitive advantage in dynamic and uncertain environments
–> Capabilities: Internal competencies
–> Absorptive Capacity: Ability to learn and apply new knowledge
–> Environmental Turbulence: External instability and change
–> Agility: Quick and effective response to change
Technology acceptance model (TAM)
Helps in understanding and predicting individuals’ acceptance and adoption of new technologies based on their perceptions of usefulness and ease of use
–> Perceived Usefulness: How valuable the system is perceived to be
–> Perceived Ease of Use: How easy it is perceived to be to use the system
–> Behavioural Intention to Use: Willingness to adopt and use the system
–> System Usage: Actual use of the system
