Professional Documents
Culture Documents
Eleventh Edition
James A. O’Brien
Chapter
2
Competing
with
Information Technology
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 2
Chapter Objectives
• Identify several basic competitive strategies
and explain how they can use information
technologies to confront the competitive forces
faced by a business.
• Identify several strategic uses of information
technology for electronic business and
commerce, and give examples of how they give
competitive advantages to business.
• Give examples of how business process
reengineering frequently involves the strategic
use of e-business technologies.
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 3
Chapter Objectives
• Identify the business value of using e-business
technologies for total quality management, to
become an agile competitor, or to form a virtual
company.
• Explain how knowledge management systems
can help a business gain strategic advantages.
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 4
Threat of
Substitutes Bargaining Power
of Customers
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 5
Differentiation Strategies
Innovation Strategies
Growth Strategies
Alliance Strategies
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 6
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 7
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 8
Marketing
Inbound Outbound Customer
Operations and
Logistics Logistics Service
Sales
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 9
Opportunity
for Lower
Enhanced
Increase
Advantage Cost Margins
Customers
Market Share Satisfaction
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 10
Customer-Focused e-Business
Let customers
place orders
directly
Let customers
check order history
and delivery status Let customers
place orders thru
Build a distribution
community partners
of customers,
employees,
and partners Customer Transaction
Database Database
Link Employees
Give all and distribution
employees a partners
complete view
of customers
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 12
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 13
Cooperate with
Anticipation of Business Partners
future needs and Competitors
Customization
Conformance
Give Customers Organize to
Solutions Master
to Problems Change
Leverage the
Impact of
People and
IS Resources
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 14
Virtual Corporations
Adaptability
Borderless Excellence
Six
Characteristics
of Virtual
Companies
Technology Trust-Based
Opportunism
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 15
Technical Solution
Support Knowledge
Staff
Customers
Development
Engineers Intranet
The
Internet
Product
Other
Managers
Vendors
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 16
Chapter Summary
• Information systems can play several strategic
roles in business.
• The Internet, intranets, extranets, and other
Internet-based technologies can be used
strategically for e-business and e-commerce
that provide a competitive advantage.
• A key strategic use of Internet technologies is
to build an e-business which develops its
business value by making customer value its
strategic focus.
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 17
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 18
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.