Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices Extra Cases Jason C. H. Chen, Ph.D. Professor of MIS School of Business Administration Gonzaga University Spokane, WA USA

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 2 Information System Strategy Triangle Business (Firm) Strategy Organizational Strategy IS/IT Strategy N

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 3 Information System Strategy Triangle for ZIP CAR Business (Firm) Strategy Organizational Strategy IS/IT Strategy N 1. Innovation (w/ new business model) 2. New Market and Revenue Increase 1. Small staff with little human interaction 2. Online community (Zipsters ) 3. E-Business organization (Car reservations were for a specific pick up time and location around the city, often in neighborhoods) 1. Internet 2. Wireless and Social Networking technologies (e.g., RFID, GPS, and Zipsters)

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices Discuss the synergy between the business strategy of Zipcar and information technology. Ans: There is tremendous synergy between Zipcars business and IT strategy. Zipcar is heavily dependent upon an automated process, and supports social networking of its clients, so that they can freely provide feedback on the company and its products and services. IT completely supports what Zipcar is trying to accomplish

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices Are there any network externalities in the workings of Zipcar? If so, do they add value? How? Through their use of social networking they provide value to the customer by providing an open exchange of ideas, and feedback to Zipcar. Network Externalities: Definition - The phenomenon whereby a service becomes more valuable as more people use it, thereby encouraging ever-increasing numbers of adopters. –Network effects While the word-of-mouth method is often more influential in the beginning, analysis may play a significant role later in the cycle. In other words, you may adopt a service initially because someone you know uses it; later, you may adopt a service because "everyone" uses. –IT Role?

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices As the CEO of Zipcar, what would you do to sustain a competitive advantage? Continue to innovate through the use of IT and by listening to customer feedback on the social network sites. Look for strategic partnerships with suppliers or other potential providers of services that Zipcar could leverage to improve its service or add extra value.

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices Analyze the business model of Zipcar using Porter’s five forces model. Ans: Zipcar has created a model that would be difficult for other companies to imitate with its technology infrastructure and low overhead. This model would be difficult for traditional car rental companies to model due to their existing infrastructure and model. Buyers could utilize other rental companies, but they would lose the convenience offered by the Zipcar model of hourly rental agreements, and convenient locations. Zipcar does not really have to worry about supplier power since it does not rely on proprietary goods.

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 8 Roche’s New Scientific Method

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 9 Organizational Strategy Business Strategy IS/IT Strategy Business Strategy: Genomics revolution (breakthrough) IS/IT Strategy : Process data Incorporate GeneChip and FailFast approach Organizational Strategy: Building teams Reward teams Hire people Create new culture (where failure is all right, as long as you fail fast) 1. How does the business strategy affect information systems and organizational decisions?

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices What generic strategy does Roche appear to be using based upon this case? Provide a rationale for your response. Roche’s business strategy appears to be first to market with a new drug to cure cancer or other diseases whose genes are identified in through the genomics project. Thus, they appear to be applying the differentiation strategy of having a drug that adds value in the cure of a disease It could be argued, though, that Roche is applying a focus/differentiation strategy by concentrating on cancer or strokes… it is not entirely clear what Roche’s overarching business strategy is from the case

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices How do information systems support Roche’s business strategy? The case discusses a number of ways in which IS supports Roche’s business strategy: –to screen compounds, –to run simulations or GeneChip experiments with potential new drugs, and –to identify and locate genes that are associated with stroke using Decode.

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 12 Extra (Apply the hypercompetition model to Roche. Which of the 7 Ss are demonstrated in this case? The hypercompetition model suggests that speed and aggressiveness of moves and countermoves in any given market can create strategic advantage. Clearly this case demonstrates Roche’s concern with a speedy discovery. An example is its ‘Fail Fast’ philosophy. To uncover successful drugs, it is conducting thousands of experiments… a series of small steps. To compete, Roche is taking advantage of its deep pockets and is relying on its timing and know-how. Below are some possible applications of D’Aveni’s 7-Ss:

Dr. Chen, Information Systems – Theory and Practices  John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 13 7-SApplication Superior stakeholder satisfactionMaximizing customer satisfaction by adding value through the discovery of breakthrough drugs to cure cancer, stroke, or other disabling diseases Strategic soothsayingSeeking new knowledge in a variety of ways: applying new technologies such as GeneChip; advertising for new employees in a wide range of sources, including Science magazine; leveraging on the knowledge of it employees through more collaboration and teamwork Positioning for speedUsing IS to process large volumes of data more efficiently; applying ‘Fail Fast’ philosophy to identify winners more speedily Positioning for surpriseAltering its organizational and IS strategies to speed the discovery of new breakthrough drugs Shifting the rules of competitionUsing breakthrough discoveries of revolutionary drugs to treat major diseases can result in new ways to serve customers that transforms the industry; Trying to take advantage of discoveries in the genomics projects Signaling strategic intent? Simultaneous and sequential strategic thrusts ?