Download 3-7-MR


Q1 – How does organizational strategy determine information systems
structure?
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Q2 – What five forces determine industry structure?
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Q3 – What is competitive strategy?
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Q4 – What is a value chain?
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Q5 – How do business processes generate value?
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Q6 – How does competitive strategy determine business processes and the
structure of information systems?
Q7 – How do information systems provide
competitive advantages?
© Pearson Prentice Hall 2009
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Q7 – How Do Information Systems Provide Competitive Advantages?
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There are two ways businesses can respond to the five competitive
forces.
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They can gain a competitive advantage via their products and
services.
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Creating new products and services, or
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Enhancing its existing products or services, or
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Differentiating its products and services from its competitors
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Information systems can help create a competitive advantage by
being part of the product or by providing support to the product.
© Pearson Prentice Hall 2009
3-2
Q7 – How Do Information Systems Provide Competitive Advantages?

A company can gain a competitive advantage by using business
processes to
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Lock in customers via high switching costs, making it too expensive for
the customer to switch to a competitor.
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Lock in suppliers via easy-to-use connections, discouraging them from
changing to another business.
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Create entry barriers for new competitors, thereby raising the costs to
enter the market.
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Establish alliances with other organizations and set standards, reducing
purchase costs and providing benefits for everyone.
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Reduce costs which in turn reduces prices and increases profitability.
© Pearson Prentice Hall 2009
3-3
Q7 – How Do Information Systems Provide Competitive Advantages?

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ABC, Inc, an actual company, used information systems
to create a competitive advantages by
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Investing heavily in information technology from the beginning
and
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Leading the shipping industry in application of information
systems.
The following slide shows some of the Web pages ABC,
Inc uses within its information system.
© Pearson Prentice Hall 2009
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Q7 – How Do Information Systems Provide Competitive Advantages?
Fig3-13 ABC, Inc Web Page to Select recipient from customer records
© Pearson Prentice Hall 2009
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Q7 – How Do Information Systems Provide Competitive Advantages?
Fig 3-14 ABC, Inc Web page to select contact from customer records
© Pearson Prentice Hall 2009
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Q7 – How Do Information Systems Provide Competitive Advantages?
Fig 3-15 ABC, Inc Web page to specify email notification
© Pearson Prentice Hall 2009
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