C H A P T E R BA 325 Competing with Information Technology Behzad Hosseini 2 Strategic and Competitive Opportunities.

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C H A P T E R BA 325 Competing with Information Technology Behzad Hosseini 2 Strategic and Competitive Opportunities

BA 325 Behzad Hosseini requires: innovation & creativity high-level support cooperation between: business & tech people (project team) interorganizational systems fresh perspective Competitive Advantage

BA 325 Behzad Hosseini Porter’s Three Frameworks for Competitive Advantage 1.The Five Forces Model 2.The Three Generic Strategies 3.The Value Chain

BA 325 Behzad Hosseini Five Forces Model Buyer Power: many suppliers Supplier Power: few suppliers –ex. OPEC Threat of substitutes or switching costs Threat of new entrants Rivalry among existing competitors

BA 325 Behzad Hosseini Three Generic Strategies cost leadership differentiation focused strategy –cost leadership or differentiation

BA 325 Behzad Hosseini Value Chain a series of processes in an organization some add value for customers some reduce value IT can improve these processes

BA 325 Behzad Hosseini E-Commerce: What’s New? Internet capabilities: mass customization/ personalization disintermediation global reach

BA 325 Behzad Hosseini Mass Customization and Personalization mass customization - custom CDs personalization - Amazon.com collaborative filtering

BA 325 Behzad Hosseini Disintermediation Intermediate players are bypassed

BA 325 Behzad Hosseini Global Reach the Internet is global EC can reach customers anywhere instant delivery of digital products