MIS chapter 3 review questions
define the value web and show how it is related to the value chain
A value web is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service. It is more customer driven and operates in a less linear fashion than the traditional value chain. The value web is a networked system that can synchronize the business processes of customers, suppliers, and trading partners among different companies in an industry or in related industries.
distinguish between BPM and business process re-engineering BPR
BPM is incremental and an ongoing BPR is a radical rethinking and redesign of business processes
traditional competitors
Companies in the same business selling the same or very similar products.
low-cost leadership
Use information systems to achieve the lowest operational costs and the lowest prices example Walmart
customer and supplier intimacy
Use information systems to develop strong ties and loyalty with customers and suppliers example Toyota corporation, Amazon
focus on market niche
Use information systems to enable focused strategy on a single market niche, specialize example Hilton hotels, Harrahs
explain how disruptive technologies create strategic opportunities
a technology and resulting business innovation comes along to change the business landscape and environment radically. they extend the market, with less functionality and much less cost than existing products and turn into low-cost competitors. some farms can create these technologies and ride the wave to prophets, whereas others learn quickly to adapt their business
define BPM and explain how it helps firms become more competitive
an approach to business that aims to improve business process is continuously BPM is never concluded because it's continuous improvement requires continual change 1. identify processes for change hyphen understanding which business processes need improvement 2. analyze existing processes - should be modeled and documented, noting inputs outputs resources in the sequence of activities to look for in efficiencies 3. designed the new processes - once the process is meth and measured in terms of time and cost the process team tries to improve the process by designing a new one 4. implement the new process- translate into a new set of procedures and work rules 5. continuous measurement - and needs to be measured continually to keep from losing the effectiveness of the business experience
explain how the value chain model can be used to identify opportunities for information systems
can you use information systems to improve operational efficiency and improve customer and supplier intimacy, can be used to improve the relationship with customers and with suppliers who lie outside the firm's value chain but belong to the firm's extended value chain where they are absolutely critical to your success. encourage you to benchmark your business processes against your competitors are others in related industries and then identify industry best practices
global business organization and system configurations
centralized systems (domestic exporter) - systems development and operations occur totally domestic HomeBase duplicated systems (franchiser) - development occurs at the home base but operations are handled over units in foreign locations decentralized systems (domestic exporter, multinational, franchiser)- each foreign unit designs its own unique solutions and systems networked systems (multinational, transnational) -; systems development and operations occur in an integrated and coordinated fashion across all units
list and describe the four main ways of organizing a business internationally and the types of systems configuration for global business organizations
domestic exporter - corporate activities in the home country of origin multinational - control out of essential home base while operations are in other countries franchisors - products created and produced in home country but relies on foreign personnel for further production transnational all the value adding activities or manage from a global perspective without reference to national borders taking advantage of any local competitive advantageous
explain how businesses benefit by using network economics
firms can use internet sites to build communities of like-minded customers who want to share their experiences. example is eBay. a business based on a network of millions of users that has built an online community by using the internet
define and describe the value chain model
highlights specific activities in the business we're competitive strategies can best be applied and where information systems are most likely to have a strategic impact. primary activities, support activities
define and describe business ecosystem and how it can provide competitive advantage
industry sets - collections of industries that provide related services and products that deliver value to the customer. auntie plays an important role in enabling a dense network of interactions among the participating firms
describe how the internet has changed competitive forces and competitive advantage
internet technology is based on universal standards that any company can use, making it easier for rivals to compete on price alone and for new competitors to enter the market. Internet raises the bargaining power of customers.
List and describe four competitive strategies enabled by information systems that firms can pursue
low-cost leadership, product differentiation, focus on the market niche, customer and supplier intimacy
support activities
make the delivery of the primary activities possible. organization infrastructure -administration and management human resources- employee recruiting, hiring, and training technology- improving products in the production process procurement- purchasing input
Suppliers
more suppliers a firm has, the greater control I can exercise over those suppliers in terms of price, quality, and delivery schedules.
primary activities
most directly related to the production and distribution and the firm's products and services, which create value for the customer. inbound logistics- receiving and storing materials for distribution to production operations- transforms inputs into finished products outbound logistics- storing and distributing finished products sales and marketing- promoting and selling the firm's products service- maintenance and repair the firm's goods and services
substitute products and services
products and services outside the industry that serve the same customer needs as the industry's products and services. the Morse institute products and services in your industry the less you can control pricing and the lower your profit margins.
define quality and compare the producer and consumer definitions of quality
quality is a form of differentiation. from the producer quality signifies conformance to specifications or the absence of variation from those specifications customers are concerned with quality of the physical product, durability safety ease-of-use installation. customers are concerned with quality of service, and concepts of quality include psychological aspects - the company's knowledge of the products and the courtesy and sensitivity of sales and support staff and reputation of the product
describe the various ways in which information systems can improve in quality
reduce cycle Time - the total elapsed time from the beginning of the process to its end using benchmarking to set standards for products, services, and other activities improving customer service, and making customer service the number one priority will improve the quality of the product itself using computer-aided design system software and 3D printing making the production process more precise decreasing the amount of variation from one part to another
how do information systems help businesses compete using quality and design?
simplifying a product or service, facilitating benchmarking, reducing product development cycle time, and increasing quality and precision and design and production
explain how information systems promote synergies and core competencies that enhance competitive advantage
synergy- can help tie together the operations of disparate business unit so they can act as a whole. would help merged companies consolidate operations, lower retelling cost, and increase cross-marketing of financial products enhancing core competencies -that the performance of all business units can increase as these business unit develop a central core of competencies which is an activity for which a firm has an industry leader, best-in-class leader. encourages the sharing of knowledge across business units and enhance his competency
Define Porter's Competitive Forces model and explain how it works
the most widely used model for understanding competitive advantage. the model provides a general view of the firm, its competitors, and the firm's environment. five competitive forces shape the fate of the firm: New market entrants, suppliers, customers, substitute products, traditional competitors
Customers
the power of the customer grows if they can easily switch to a competitors products and services or if they can force a business and its competitors to compete on price alone in a transparent market and where all processes are known instantly and little product differentiation.
describe how globalization has increased opportunities for businesses
to reduce the cost of operating on a global scale, deepening the possibilities for large company and creating many opportunities for small and medium-sized firms. puts manufacturing firms in nearly instant contact with their suppliers.
product differentiation
use information systems to differentiate products and provide new services and products Uber, Nike, Apple, Starbucks
define and describe a virtual company and the benefits of pursuing a virtual company strategy
uses networks to link people to create and distribute products and services without being limited by boundaries or physical location. it's cheaper to acquire products, services or capabilities from external vendors
New market entrants
Some industries have low barriers to entry; Newer companies may have advantages. they are not locked into old plants and equipment, often hire younger workers who are less expensive and more innovative and are not encumbered by old worn-out name brands and they are hungry. have less experienced workforce and have little brand recognition
