Chapter 3 Achieving competitive advantage with information systems

Digital Strategy revail
1. AT&T vs Verizon
  1. Competition and bussiness model System change, Apple and Skype
  2. Strategy change due to information Systems
    1. AT&T
      1. Low price
    2. Verizon
      1. High cost and product quality
Information Systems to achive competitive advantages
1. Porter's competitive forces model
  1. 1. Traditional Competitors
      1. The innovative and more efficient drive the market
    2. New Market Entrance
      1. Requares outside financing
      2. Little brand recognition
    3. Substitute products and services
      1. Proce is a driver on the customer desition
      2. New susbstitutes are create
    4. Suppliers
      1. business prices can't grow as fast as the supplier pricess rise
    5. Customer
      1. Attact customers to the business inted of the competitors,change prices
  2. The business Value Chain Model
    1. Where the competitive strategies can be applied
    2. Expanding the value Chain: The Value Web
      1. Amazon.com
        Web Value
      2. Web Synchronizes
        Web value
2. Information Sysmtems improve Quality
  1. Reduce cycle time and simplify the production process
  2. Benchmark
  3. Use customers demands to improve products and services
  4. Improve Design Quality and precision
  5. Improve production Precision and tighten production tolerances
Information System Strategies for dealing with competitive forces
1. Align the IT with the business objetives
2. Low-cost Leadership
  1. Walmart
    1. Efficient customer response system
      1. Cash register systems
      2. Supplyers orders directly produce
      3. Purchaseing systems
3. Production Diferentiation
  1. Mass Customization
4. Focus on Market Niche
  1. serve to a narrow target of clients
5. Customer and Suppler intimacy
  1. Close the gab between manofactures and the customers
Strategies
1. Synergies
  1. Business units as one, no Silos
  2. Other BU can use the others information
2. Enhancing core competencies
  1. Knowledge is the base on the business
  2. Be the one with a unique product or development in high quality
3. Network-Base Strategies
  1. In-side or Out-side networking
  2. Virtual Company's link people or resources to othe people
  3. Direct manofactures PO placements
Business process Management
1. BPM
  1. 1) Identify processes for change
  2. 2) Analyze existing processes
    1. Books store "as-is"
      1. Book store
  3. 3) Design the new process
  4. 4) Implement the new process
  5. 5) Continuous measurement
2. BPR

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Chapter 3 Achieving competitive advantage with information systems

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