Information Systems in BusinessChap002docresWord下载.docx

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4.IdentifythebusinessvalueofusingInternettechnologiestobecomeanagilecompetitororformavirtualcompany.

5.Explainhowknowledgemanagementsystemscanhelpabusinessgainstrategicadvantages.

SUMMARY

•StrategicUsesofInformationTechnology.Informationtechnologiescansupportmanycompetitivestrategies.Theycanhelpabusinesscutcosts,differentiateandinnovateinitsproductsandservices,promotegrowth,developalliances,lockincustomersandsuppliers,createswitchingcosts,raisebarrierstoentry,andleverageitsinvestmentinITresources.Thus,informationtechnologycanhelpabusinessgainacompetitiveadvantageinitsrelationshipswithcustomers,suppliers,competitors,newentrants,andproducersofsubstituteproducts.RefertoFigures2.3and2.5forsummariesoftheusesofinformationtechnologyforstrategicadvantage.

•BuildingaCustomer-FocusedBusiness.AkeystrategicuseofInternettechnologiesistobuildacompanythatdevelopsitsbusinessvaluebymakingcustomervalueitsstrategicfocus.Customer-focusedcompaniesuseInternet,intranet,andextranete-commerceWebsitesandservicestokeeptrackoftheircustomers’preferences;

tosupplyproducts,services,andinformationanytime,anywhere;

andtoprovideservicestailoredtotheindividualneedsofthecustomers.

•ReengineeringBusinessProcesses.Informationtechnologyisakeyingredientinreengineeringbusinessoperationsbecauseitenablesradicalchangestobusinessprocessesthatdramaticallyimprovetheirefficiencyandeffectiveness.Internettechnologiescanplayamajorroleinsupportinginnovativechangesinthedesignofworkflows,jobrequirements,andorganizationalstructuresinacompany.

•BecominganAgileCompany.Abusinesscanuseinformationtechnologytohelpitbecomeanagilecompany.Thenitcanprosperinrapidlychangingmarketswithbroadproductrangesandshortmodellifetimesinwhichitmustprocessordersinarbitrarylotsizes;

itcanalsoofferitscustomerscustomizedproductswhileitmaintainshighvolumesofproduction.AnagilecompanydependsheavilyonInternettechnologiestohelpitrespondtoitscustomerswithcustomizedsolutions,andtocooperatewithitscustomers,suppliers,andotherbusinessestobringproductstomarketasrapidlyandcosteffectivelyaspossible.

•CreatingaVirtualCompany.Formingvirtualcompanieshasbecomeanimportantcompetitivestrategyintoday’sdynamicglobalmarkets.Internetandotherinformationtechnologiesplayakeyroleinprovidingcomputingandtelecommunicationsresourcestosupportthecommunications,coordination,andinformationflowsneeded.ManagersofavirtualcompanydependonITtohelpthemmanageanetworkofpeople,knowledge,financial,andphysicalresourcesprovidedbymanybusinesspartnerstotakeadvantageofrapidlychangingmarketopportunities.

•BuildingaKnowledge-CreatingCompany.Lastingcompetitiveadvantagetodaycanonlycomefromtheinnovativeuseandmanagementoforganizationalknowledgebyknowledge-creatingcompaniesandlearningorganizations.Internettechnologiesarewidelyusedinknowledgemanagementsystemstosupportthecreationanddisseminationofbusinessknowledgeanditsintegrationintonewproducts,services,andbusinessprocesses.

KEYTERMSANDCONCEPTS

1.AgileCompany(60):

Anorganizationwiththeabilitytoprofitablyoperateinacompetitiveenvironmentofcontinualandunpredictablechangesbyproducinghigh-quality,high-performance,customer-configuredproductsandservices.

2.BusinessProcessReengineering(56):

Thefundamentalrethinkingandradicalredesignofbusinessprocessestoachievedramaticimprovementsincost,quality,speed,andservice.

3.CompetitiveForces(44):

Abusinessmustconfront

1)rivalryofcompetitorswithinitsindustry

2)threatofnewentrants

3)threatofsubstitutes

4)thebargainingpowerofcustomers

5)thebargainingpowerofsuppliers.

4.CompetitiveStrategies(47):

Abusinesscandevelop:

1)costleadership

2)productdifferentiation

3)innovation

4)growth

5)alliance

orotherstrategiestoconfrontitscompetitiveforces.

5.SwitchingCosts(50):

Thecostintime,money,effort,andinconveniencethatitwouldtakeacustomerorsuppliertoswitchitsbusinesstoafirm’scompetitors.

6.Customervalue(52):

Theperceptionofvalueorbenefit,onthepartofacustomer,associatedwithagiventransactionorbusinessrelationship.Organizationscanprovidethisbyrecognizingthatqualityratherthanpricehasbecometheprimarydeterminant.Organizationsmustfocusonanticipatingfutureneeds,respondingtocustomerconcerns,andprovidetop-qualityservice.

7.Interenterpriseinformationsystems(62):

Consistsofmultipleextranetslinkingsuppliers,customers,subcontractors,andcompetitorstogetherinsupportofavirtualcompany.

8.Knowledge-CreatingCompany(63):

Alsoknownas"

learningorganizations"

arecompaniesthatconsistentlycreatenewbusinessknowledge,disseminateitwidelythroughoutthecompany,andquicklybuildthenewknowledgeintotheirproductsandservices.

9.KnowledgeManagementSystem(64):

Aninformationsystemthathelpsmanageorganizationallearningandbusinessknow-how.Thesesystemshelpknowledgeworkerscreate,organize,andmakeavailableimportantbusinessknowledge,whereverandwheneverit’sneededinanorganization.

10.LeveragingInvestmentinIT(50):

Developingnewproductsandservicesmadepossiblebyinvestmentsininformationtechnology.

11.LockinCustomersandSuppliers(50):

Buildingvaluablerelationshipswithcustomersandsuppliers,whichdeterthemfromabandoningafirmforitscompetitorsorintimidatingitintoacceptinglessprofitablerelationships.

12.RaiseBarrierstoEntry(50):

Creatingtechnological,financial,orlegalrequirementswhichdeterfirmsfromenteringanindustry.

13.StrategicInformationSystem(44):

Informationsystemsthatsupportsorshapesthecompetitivepositionandstrategiesofanorganization.

14.ValueChain(54):

Aviewofanorganizationasaseriesofactivitieswitheachactivityaddingvaluetoitsproductsandservices.

15.VirtualCompany(62):

Alsocalledavirtualcorporationorvirtualorganization,isanorganizationthatusesinformationtechnologytolinkpeople,assets,andideas.

ANSWERSTOREVIEWQUIZ

Q.

A.

KeyTerm

1

3

Competitiveforces

9

10

LeverageinvestmentinIT

2

4

Competitivestrategies

Businessprocessreengineering

12

Raisebarrierstoentry

11

Agilecompany

Lockincustomersandsuppliers

15

Virtualcompany

5

Switchingcosts

13

8

Knowledge-creatingcompany

6

Strategicinformationsystems

14

Knowledgemanagementsystem

7

Customervalue

Interenterpriseinformationsystems

ValueChain

ANSWERSTODISCUSSIONQUESTIONS

1.Supposeyouareamanagerbeingaskedtodevelope-businessande-commerceapplicationstogainacompetitiveadvantageinanimportantmarketforyourcompany.Whatreservationsmightyouhaveaboutdoingso?

Why?

Unlesstheindividualisfamiliarwiththetoolsinvolvedindevelopinginformationtechnologyapplications,theywillhaveahighlevelofapprehension.Reservationswouldincludethefearofbeingoutofone'

sdepthandfeelingsofhelplessness,insecurity,anddependenceonothers.Imightalsowonderwhetherornotanappropriateapplicationmightbeobtainedofftheshelf.Offtheshelfsoftware,thoughnoteasilycustomizable,generallycostslessthancustomsoftwaredevelopment.Lastly,Imightalsobeconcernedabouthowthesoftwaremayaffectmyownorganization.Changeisn'

teasy,andifitisn'

tsupportedattheverytopmanagementlevels,itmayfailduetolackoforganizationalwill.

2.Howcouldabusinessuseinformationtechnologytoincreaseswitchingcostsandlockinitscustomersandsuppliers?

Usebusinessexamplestosupportyouranswers.

Abusinessmightundertakeprojectstointegratesomeofitsinformationsystemswithitscustomers'

systemsinordertoprovidethemwithmoretimely,accurate,andusefulinformation.Itmightevendirectlyprovideapplicationsforitscustomer'

suseatlowornocosttothecustomer.Customerslaterconsideringchangingsupplierswouldlosethesebenefits.Indeed,theveryprocessofdevelopingthesetoolswillhelpmanagersincreasetheirfamiliaritywiththeircustomersandallowthemtotunetheirinformationresourcestotheirneeds.Thisrelationshipwillfurtherservetolockincustomers.Forexample,FedExprovidesitscustomerswithpackagetrackinginformation.Andmedicalsupplycompaniesprovidehospitalswithinventorymanagementandre-orderingsystems.

3.HowcouldabusinessleverageitsinvestmentininformationtechnologytobuildstrategicITcapabilitiesthatserveasabarriertoentrybynewentrantsintoitsmarkets?

Thisisbutone

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