McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 2 Competing with Information Technology 授課老師：台大工管系 楊立偉

2-2 Section 1 Fundamentals of Strategic Advantage

2-3 I. Strategic IT  Technology is now the actual cause and driver of business strategies 以技術帶動企 業策略  Technology is no longer an afterthought in forming business strategies

2-4 II. Competitive Strategy Concepts  Strategic Information Architecture – the collection of strategic information systems that shape/support the competitive position/strategies of a firm

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. II. Competitive Strategy Concepts 與之競爭的力量（五力分析） 競爭策略 成本 成本 差異化 差異化 創新 創新 成長 成長 聯盟 聯盟 其它 其它

2-6 II. Competitive Strategy Concepts  Competitive Forces (Porter)  Rivalry of Competitors  Threat of New Entrants  Threat of Substitutes  Bargaining Power of Customers  Bargaining Power of Suppliers  Competitive Strategies  Cost Leadership Strategy  Differentiation Strategy  Innovation Strategy  Growth Strategy  Alliance Strategy

2-7 III. Strategic Uses of Information Technology  Other Strategic Initiatives  Locking by Building Relationships  Lock In Customers  Lock In Suppliers  Lock Out Competitors  Switching Costs – make customers/supplier dependent on mutually beneficial inter-enterprise information systems  Raise Barriers to Entry – discourage or delay other firms from entering a market  Leverage Investment in IT – develop new products and services that are not possible without strong IT capabilities

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. II. Competitive Strategy Concepts Examples

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. II. Competitive Strategy Concepts Examples

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. II. Competitive Strategy Concepts Examples

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Competitive Advantage and Competitive Necessity  What is Competitive Advantage?  What is the problem with competitive advantage?  What is Competitive Necessity?  What is the relationship between Competitive Advantage and Competitive Necessity?

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. IV. Building A Customer-Focused Business – Strategic Focus on Customer Value 顧客導向以顧客為中心

2-13 IV. Building A Customer-Focused Business – Strategic Focus on Customer Value  Recognizing that Quality, not Price, has become the primary factor in a customer’s perception of value  Internet technologies can make customers the focal point of e- business applications 以客戶為中心

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. V. The Value Chain and Strategic IS 支援流程 主要流程 進貨物流生管系統 作業彈性製造系統 出貨流程訂單處理系統行銷業務目標行銷系統客戶服務客戶關係管理系統 協調支援：流程管理系統 人力資源管理：員工福利管理系統 技術發展：產品研發系統 資源採購：供應商管理系統 競爭優勢

2-15 V. The Value Chain and Strategic IS  Value Chain – the series/chain/network of activities that add value to products/services  Primary Processes – directly related to manufacture of products or delivery of services 企業一定有其主要之產品或服務，提供產品或服 務之加值活動過程，即為企業之價值鍊，是一 種思考及檢視企業的方法

2-16 V. The Value Chain and Strategic IS  Support Processes – business activities that that support daily operations of the firm and indirectly contribute to products/services  Value Chain Examples  The Value Chain Concept can help identify where and how to apply strategic capabilities of IT

2-17 Section 2 Using Information Technology for Strategic Advantage

2-18 I. Strategic Uses of IT  Support everyday operations (non- strategic)  Use IT as a major competitive differentiator (strategic)

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. II. Reengineering Business Processes 改變程度 流程變化 起始點 變動頻率 所需時間 範圍 時間水平 參與方式 執行方式 促成因素 風險 漸進 - 劇烈 改善程序 - 全新程序 既有程序 - 無 一次或持續 - 週期性 短 - 長 窄 - 廣 過去與現在 - 未來 由下而上 - 由上而下 文化 - 文化與結構 統計 - 資訊科技 中 - 高

2-20 II. Reengineering Business Processes  Business Process Reengineering (BPR)  High Potential Payback, but High Risk of Failure  Organizational Redesign  Process Teams  Case Managers  The Role of Information Technology – IT plays a major role in BPR

2-21 III. Becoming An Agile Company  Business today is changing from mass market products/services that were standardized, long-lived, information- poor, exchanged in one-time transactions to global competition with niche markets that are individualized, short-lived, information-rich, exchanged on an ongoing basis with customers

2-22 III. Becoming An Agile Company  4 Basic Strategies:  Customer Perception of Goods and Services  Partnering with Customers, Suppliers, and Even Competitors  Organize to Thrive on Change and Uncertainty  Leverage Impact of Personnel and Their Knowledge  Types of Agility  Customer  Partnering  Operational

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. III. Becoming An Agile Company Examples

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. IV. Creating A Virtual Company

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. IV. Creating A Virtual Company  Virtual Company – Uses the Internet, intranets and extranets to create virtual workgroups and support alliances with business partners

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. V. Building a Knowledge-Creating Company Knowledge Management – 3 levels: Enterprise Knowledge; Information Creation, Sharing, and Management; Document Management

2-27 V. Building a Knowledge-Creating Company  One sure Source of Competitive Advantage is Knowledge  The Business of a “Knowledge-Creating” company is Continuous Innovation  Explicit Knowledge – written down or stored on computers  Tacit Knowledge – “how-to” knowledge residing in the workers; very important but little incentive to share this information so it is never written down

2-28 VI. Knowledge Management Systems  Goal of Knowledge Management – to create, organize, and disseminate important business knowledge whenever and wherever it is needed in the organization  Knowledge Management systems:  Facilitate organizational learning and knowledge creation  Provide rapid feedback top knowledge workers  Encourage employee behavioral change  Significantly improve business performance

2-29 VI. Knowledge Management Systems  Making personal knowledge available is the central activity of a knowledge-creating company  This takes place continuously at all levels of the organization  Knowledge management has become a major strategic use of information technology