1. Chap 5: INFORMATION SYSTEM AND BUSINESS STRATEGY [LAUDON] chap 3
Dr. Ir. Yeffry Handoko Putra, M.T
Magister Sistem Informasi UNIVERSITAS KOMPUTER INDONESIA

2. Business strategy is a set of activities and decisions firms make that determine the following:
Products and services the firm produces
Industries in which the firm competes
Competitors, suppliers, and customers of the firm
Long-term goals of the firm

3. Strategy usually takes place at three different levels
Business. A single firm producing a set of related products and services
Firm. A collection of businesses that make up a single, multidivisional firm
Industry. A collection of firms that make up an industrial environment or ecosystem

4. Design / Reengineering
Strategy and IS
Industry Structure
(5 Competing Forces)
Competitive
Strategy
Business Process
Design / Reengineering
Value Chain
Analysis
Information
Systems

5. Michael Porter Strategic Theorema
Entry threat/
Entry barriers
I am a big fan of Michael E Porter and his 5 forces model and if I look at the standard computer market through the five forces, I would say that it is a zero or one star industry due to following reasons: (a) Power of supplier is moderate/high. It could be easy to buy standard products but technologically advanced products are only sold to people who invest considerable amount of money and time with the suppliers. Where as standard chip manufacturers will always sell it at a higher price. (b) Power of buyer is high. People can buy a different computer if you give a $10 webcam for free. (c) Threat of new entrant is high: Any guy with some computer skills can learn to assemble a computer in 1-2 days. (d) Substitutes: High: Ipads, mobile devices and tablets (e) Rivalry: Very high. Fierce competion in the market, So if HP would have done better with the suppliers it could have got better products and new technologies to roll out. The Blue Ocean strategy would then kick in and say "I would make a product that is highly innovative and would change the market" and that was what apple did. I think, by writing this, I just attempted to see things in a different way but probably ended with the same solution.
Emerging technologies

6. Porter Generic Strategies
Cost Leadership: High volume and low profit margin
Differentiation strategy: High margin/price, low volume
Focus
Source:
read the comments

7. Generic Strategies and Industry Forces

8. Business-Level Strategy: The Value Chain Model

9. organisational value chain

10. Electronic business and electronic commerce in the emerging digital firm

11. The value web
The value web is a networked system that can synchronize the value chains of business partners within an industry to respond rapidly to changes in supply and demand

12. BUSINESS STRATEGY LEVERAGING TECHNOLOGY IN THE VALUE CHAIN
INFORMATION SYSTEMS PRODUCTS AND SERVICES SYSTEMS TO FOCUS ON MARKET NICHE
SUPPLY CHAIN MANAGEMENT AND EFFICIENT CUSTOMER RESPONSE SYSTEMS

13. Stockless inventory compared to traditional and just-in-time supply methods

14. The industry value chain

16. Organization Principle
One plan is better than no plan at all
If no goal, business only waste time or waste resources
Plan, do, check and act (PDCA) cycle

17. Level of Organisation CEO, Director R&D, Procurement Division Manager
Establish Objectives, policies and strategies
Translate Objectives into specific objective, preparing report and meeting
Head department, district or division manager
Unit manager
Responsible on specific objectives
Not manager

18. Who are managers?
Manager set and monitor organisational objectives by allocating human and material resources and directing operations.
They bring together the individuals in an organisation with its goals and needs, establishing individual and collective responsibilities to achieve what is necessary for the business
Managers have a variety of organisational roles and perform a number of functions, but essentially they are all decision makers.

19. What do managers do
Planning  Strategic, tactical, operational
Control Centralized/delegation, formalisation/informalisation, degree of personal supervision
Check
Act and Evaluation Decision making

20. Management Role Interpersonal role
Figurehead roles
Leadership roles: hiring, promoting, training, motivating, diciplining staff
Liaison roles
Informational role: monitor, disseminator, spokes person
Decisional role
Entrepreneurial manager
Disturbance handler
Resouce-allocator
Negotiator
These roles of monitor, disseminator and spokesperson
are highly relevant, given the increasing
importance of information as an organisational
resource. Managers as monitors receive and
collect information from outwith the organisational
boundary, such as informal gossip with
contacts or formal meetings in other organisations.
Such information then has to be filtered
and evaluated and a decision made as to the
extent of its usefulness.
The manager as disseminator passes and
shares information with subordinates. This
information may not otherwise be accessible to
them and might need to remain confidential.
Such passing on of information is time consuming
and managers must therefore use
careful judgement as to what is important and
relevant and what is not.
The spokesperson role involves managers representing
their organisation to outsiders, such as
representatives of major oil companies giving
TV interviews to put over environmentally
friendly policies.
Effective managers develop networks of contacts
to obtain and share information. Many
contacts made while carrying out figurehead
and liaison roles may provide managers with a
great deal of important information which then
serves them in their roles as monitor, disseminator
and spokesperson.
The entrepreneurial manager is largely concerned
with innovation and change, designing
and instigating planned change to improve the
organisation’s position. Managers perform this
role when initiating new projects or entering a
new business market.
Managers are often problem solvers. The
role of disturbance-handler involves taking corrective
action in response to problems previously
unforeseen. Broken contracts by suppliers or
customers and strikes or crises arising from poor
management of a situation over time are examples
of circumstances in need of a disturbance
handler.
As resource-allocators managers must choose
between competing demands for human, physical
and financial resources. Decisions may
involve, for example, the amount of budget to
be allocated to advertising or how many staff
are required for different shifts.
Managers frequently need to be judicious
negotiators, discussing and bargaining with
individuals or groups to reach agreement.
Negotiations may occur between functions or
departments within the same organisation or
with external groups such as government agencies
or suppliers.

22. Managerial function and IS roles (Mintzberg, 1994)

23. THE COMPETITIVE FORCES MODEL
Kompetitor Pin yang saling bekerja sama memperluas network penjualan PIN

24. Impact of the Internet on Competitive Forces and Industry Structure

25. BUSINESS ECOSYSTEMS: KEYSTONE AND NICHE FIRMS
FIGURE 3-16 An ecosystem strategic model
The digital firm era requires a more dynamic view of the boundaries among industries, firms, customers, and suppliers, with competition occurring among industry sets in a business ecosystem. In the ecosystem model, multiple industries work together to deliver value to the customer. IT plays an important role in enabling a dense network of interactions among the participating firms.

26. NETWORK ECONOMICS