Chapter 2 Competing with Information Technology Mc GrawHillIrwin

Chapter 2 Competing with Information Technology 授課老師：台大 管系 楊立偉 Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Section 1 Fundamentals of Strategic Advantage 2 -2

I. Strategic IT v Technology is now the actual cause and driver of business strategies 以技術帶動企 業策略 v Technology is no longer an afterthought in forming business strategies 2 -3

II. Competitive Strategy Concepts v Strategic Information Architecture – the collection of strategic information systems that shape/support the competitive position/strategies of a firm 2 -4

II. Competitive Strategy Concepts 競爭策略 n 成本 n 差異化 n 創新 n 成長 n 聯盟 n 其它 與之競爭的力量 （五力分析） Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

II. Competitive Strategy Concepts v Competitive Forces (Porter) v Rivalry of Competitors v Threat of New Entrants v Threat of Substitutes v Bargaining Power of Customers v Bargaining Power of Suppliers v Competitive Strategies v Cost Leadership Strategy v Differentiation Strategy v Innovation Strategy v Growth Strategy v Alliance Strategy 2 -6

III. Strategic Uses of Information Technology v Other Strategic Initiatives v Locking by Building Relationships v v v Lock In Customers Lock In Suppliers Lock Out Competitors v Switching Costs – make customers/supplier dependent on mutually beneficial inter-enterprise information systems v Raise Barriers to Entry – discourage or delay other firms from entering a market v Leverage Investment in IT – develop new products and services that are not possible without strong IT capabilities 2 -7

II. Competitive Strategy Concepts Examples Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

II. Competitive Strategy Concepts Examples Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

II. Competitive Strategy Concepts Examples Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Competitive Advantage and Competitive Necessity v What is Competitive Advantage? v What is the problem with competitive advantage? v What is Competitive Necessity? v What is the relationship between Competitive Advantage and Competitive Necessity? Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

IV. Building A Customer-Focused Business – Strategic Focus on Customer Value 顧客導向 以顧客為中心 Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

IV. Building A Customer-Focused Business – Strategic Focus on Customer Value v Recognizing that Quality, not Price, has become the primary factor in a customer’s perception of value v Internet technologies can make customers the focal point of ebusiness applications 以客戶為中心 2 -13

V. The Value Chain and Strategic IS Value Chain – the series/chain/network of activities that add value to products/services v Primary Processes – directly related to manufacture of products or delivery of services v 企業一定有其主要之產品或服務，提供產品或服 務之加值活動過程，即為企業之價值鍊，是一種 思考及檢視企業的方法 2 -15

V. The Value Chain and Strategic IS v Support Processes – business activities that support daily operations of the firm and indirectly contribute to products/services v Value Chain Examples v The Value Chain Concept can help identify where and how to apply strategic capabilities of IT 2 -16

Section 2 Using Information Technology for Strategic Advantage 2 -17

I. Strategic Uses of IT Support everyday operations (nonstrategic) v Use IT as a major competitive differentiator (strategic) v 2 -18

II. Reengineering Business Processes v Business Process Reengineering (BPR) High Potential Payback, but High Risk of Failure v Organizational Redesign v v Process Teams v Case Managers v The Role of Information Technology – IT plays a major role in BPR 2 -20

III. Becoming An Agile Company v Business today is changing from mass market products/services that were standardized, long-lived, informationpoor, exchanged in one-time transactions to global competition with niche markets that are individualized, short-lived, information-rich, exchanged on an ongoing basis with customers 2 -21

III. Becoming An Agile Company v 4 Basic Strategies: v v v Customer Perception of Goods and Services Partnering with Customers, Suppliers, and Even Competitors Organize to Thrive on Change and Uncertainty Leverage Impact of Personnel and Their Knowledge Types of Agility v v v Customer Partnering Operational 2 -22

III. Becoming An Agile Company Examples Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

IV. Creating A Virtual Company Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

IV. Creating A Virtual Company v Virtual Company – Uses the Internet, intranets and extranets to create virtual workgroups and support alliances with business partners Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

V. Building a Knowledge-Creating Company Knowledge Management – 3 levels: Enterprise Knowledge; Information Creation, Sharing, and Management; Document Management Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

V. Building a Knowledge-Creating Company v One sure Source of Competitive Advantage is Knowledge v The Business of a “Knowledge-Creating” company is Continuous Innovation v Explicit Knowledge – written down or stored on computers v Tacit Knowledge – “how-to” knowledge residing in the workers; very important but little incentive to share this information so it is never written down 2 -27

VI. Knowledge Management Systems v Goal of Knowledge Management – to create, organize, and disseminate important business knowledge whenever and wherever it is needed in the organization v Knowledge Management systems: v v Facilitate organizational learning and knowledge creation Provide rapid feedback top knowledge workers Encourage employee behavioral change Significantly improve business performance 2 -28

VI. Knowledge Management Systems v Making personal knowledge available is the central activity of a knowledge-creating company v This takes place continuously at all levels of the organization v Knowledge management has become a major strategic use of information technology 2 -29