Week 8 Flashcards
When is an information system strategic?
When it directly supports the organizational strategy and thus gives the organization competitive advantage.
- Lower cost;
- Differntiated product/service;
- New focus on new market segment;
- Enables innovation;
Gives some remarks on dominoes smartphone orderering
- Ordering through smartphone (and later smartwach)
- Enables the customer to order anytime anywhere (differentiated service)
- Reduces amount of people taking orders (lower cost)
- Increase in revenue
- > Not sustainable, other companies could copy
What do you need to talk about when talking about added value?
- How does it add value?
- To who does it add value?
Which models are there to identify SIS?
- Porters Five Forces
- Porters Value Chain
- Customer Service Life Cycle (CSLC)
- Virtual Value Matrix
- Customer Data strategies
What are two ways according to Porter a firm can obtain competitive advantage?
- Cost Advantage
- Differentation Advantage
What is Porters Five Forces analysis (include the forces)?
A framework for industry analysis. Analysis competition and dynamics in the industry to analyze if competitive advantage can be achieved and how easy that is
- Threat of substitution
- Bargaining Power Suppliers
- Bargaining Power Buyers
- Barriers to Entry
- Industry rivalry
-> For this course, use IT in your explanation of the forces.
What is Porters Value Chain Analysis
Looks at the primary activities of a firm (operations, sales, logistics) as well as the support activities.
- > Analyses how value is created in the company
- > you can use it to analyse how IT can add value for each of the activities
What is meant with the Value Network in relation to the Value Chain Analysis?
Extend your view to the whole value chain, not only at your company. So look at the links between the supplier and your company and between your company and the customer as well.
What is the customer service life cycle (CSLC)?
A framework to map the relationship between a firm and a customer. Goal is to identify the stages where the customer is dissatisfied so that the company can improve on those areas.
-> Stepping in the shoes of the customer
What are the four stages of the customer service life cycle (and what do they mean) ?
- Requirement phase
- > How does a customer act if he thinks about needing a new product (at airline website, he wants to see deals and destinations - Acquisition phase
- >How does he buys the product (online seat selection instead of travel agency) - Ownership
- > What does he need while he owns the product/service (analyze when customers normally buy an upgrade, send them offers) - Retirement
- >What does he do when he does not want it anymore (recycle?)
What is the (virtual) value matrix?
Similar to the value chain analysis. But now you also look at each activity in the value chain and analyze where you can capture and synthesize data/information. You also look where in the value chain this data can be used to increase strategic value.
What three classes of strategic initiative are identified in the value matrix?
- Improve the visibility in activities
- Mirroring capabilities - Transforming physical activities into IT activities (virtual testing)
- New digital value - Develop completely new services
What is meant with customer data stragies?
Depending on the level of repurchase rate and degree of customizability, you can use different approaches to retain existing customers or acquire new customers.
What are the 4 customer data strategies?
- Low Payoff (no custom ; no repurchase)
> hotel on hawaii - Reward Strategy (no custom, high repurchase)
>airline reward system - Personalization (high custom, high repurchase)
>cool bags - Acquisition (high custom, low repurchase)
>weddingplanner
What is meant by unobtrusive data capture?
Extent to which data is collected and stored in a readily usable format during the normal business cycle
