1. Management Information Systems Organizational Strategy, Information Systems, and Competitive Advantage Chapter 3

2. 2 This Could Happen to You Marketing Director needs to write memo to her boss  Explain how blog would provide a competitive advantage  Will be used to justify expense to his manager

3. 3 Study Questions Q1. How does organizational strategy determine information systems structure? Q2. What five forces determine industry structure? Q3. What is competitive strategy? Q4. What is a value chain? Q5. How do value chains determine business processes? Q6. How do information systems provide competitive advantages?

4. 4 Q1. Organizational Strategy Determines organization’s goal and objectives Developed from organizational structure Creates the value chain for organization Establishes the structure, features, and functions of information systems

5. 5 組織策略決定了資訊系統

6. 6 Q2. What Five Forces Determine Industry Structure? Porter’s five competitive forces:  Bargaining power of customers  Threat of substitution  Bargaining power of suppliers  Threat of new entrants  Rivalry among existing firms

7. 7 Porter’s Five Forces Figure 3-2

8. 8 Example of Five Forces Figure 3-3

9. 9 Q3. What Is Competitive Strategy? Organization’s response to structure of its industry Porter identified four competitive strategies:  Cost leadership across industry  Cost leadership focused on particular industry segment  Differentiation across industry  Differentiation focused on particular industry segment Porter says goals, objectives, culture, and activities must be consistent with strategy

10. 10 波特的四個競爭策略

11. 11 Q5. What is a Value Chain? Network of value-creating activities Primary activities Support activities Linkages

12. 12 Generic Value Chain Model Figure 3-5

13. 13 Primary Activities Five activities  Inbound logistics  Operations  Outbound logistics  Marketing and sales  Service Stages accumulate costs and add value to product  Net result is total margin of chain

14. 14 價值鏈裡的主要活動

15. 15 Support Activities Four activities  Firm infrastructure  Human resources  Technological development  Procurement Contribute indirectly to production, sale, and service Add value and costs  Produce margin that is difficult to calculate

16. 16 Linkages Interactions across value activities Sources of efficiencies Readily supported by information systems Reduce inventory costs

17. 17 Q5. Business Processes Network of activities, resources, facilities, and information Accomplish a business function Implement value chains or portions of value chains

18. 18 價值鏈如何決定企業流程及資訊系統？ 企業流程就是把整個或部分價值鏈具體實作出來的方法  所以每個價值鏈裡都會有一或多個企業流程 「最低價」的店家會以最少、最基本的流程來支援它的價值 鏈；「高品質」的店家會以較費工夫的企業流程（加以資訊 系統的支援）來處理，好讓公司的服務和另一家店差異化 但就如波特所說，這些流程及系統一定要能附加足夠的價值 來超過所需的成本  不然的話，公司的利潤會是負值

19. 19 自行車出租店的部分作業價值鏈

20. 20 Business Process Design Porter’s idea  Create integrated, cross-departmental business systems  Do not automate or improve existing systems  Instead, create new processes  Integrate activities of all departments  Across entire value chain

21. 21 Organizational Strategy Determines Information Systems Figure 3-1

22. 22 競爭優勢準則一覽表 Q6 資訊系統如何給公司帶來競爭優勢？

23. 23 Competitive Advantage via Products Organizations gain a competitive advantage by:  Creating new products or services  Enhancing existing products or services  Differentiating their products or services

24. 24 資訊系統在產品上的兩個職分

25. 25 Competitive Advantage via Business Processes (1) Organizations can gain a competitive advantage by implementing business systems  Locking in customers  High switching costs  Locking in suppliers  Making it easy to connect to and work with organization

26. 26 Competitive Advantage via Business Processes (2)  Create entry barriers  Making it expensive for new competition to enter market  Establish alliances  Establish standards  Promote product awareness  Reducing costs  Increased profitability

27. 27 ABC’s Information System Uses information systems to maintain customer account data  Collects information for ABC  Saves customers time by automatically filling in part of form Package and information delivery system  Customer can select delivery address and generate shipping labels

28. 28 從客戶紀錄裡點選收件人的 ABC 公司網頁

29. 29 從客戶紀錄裡點選聯絡人的 ABC 公司網頁

30. 30 設定電子郵件通知的 ABC 公司網頁

31. 31 列印運輸標籤的 ABC 公司網頁

32. 32 ABC’s Information System Created a Competitive Advantage Information systems create advantage by:  Enhancing existing products  Differentiating products  Locking in customers  Raising barriers to entry  Delivering net savings

33. 33 Ethics Guide (1) Searching the Internet is a matter of knowledge and access Digital divide between those who have access and those who don’t  Divide continues to deepen  Internet access available at public places  Not everyone served  Not as convenient  Advantages accrue to those with access

34. 34 Ethics Guide (2)  Intellectual capital resides on Internet  Savings for businesses  Product support  Warehousing  Mailings Digital divide segregates haves and have-nots

35. 35 Ethics Guide (3) Do organizations have a responsibility to address this matter? If most have access, do we have to supply the few without printed materials? Is it the government’s responsibility to supply Internet service? How can any economy compete with an Internet- based economy in the global arena?

36. 36 Applying Knowledge of Industry Structure (1) Knowledge of industry structure gives background and perspective Makes it easier to talk with management Enables Dee to:  Understand the organization’s competitive advantage  Translate strategy into her project  Build a better blog

37. 37 Applying Knowledge of Industry Structure (2) Dee’s memo should incorporate:  List of competitive advantage factors  Help sales team differentiate themselves  Lock in customers  Raise barriers to market entry