Strategic Information System for

Business
Lecture 2

Ronald Wong
2020
SISB Update

Lecture 2 2
 快速支付啟動 大型銀行不收費
今登記月底用 跨行轉帳由數日縮至數秒
 支援全天候跨行即時轉帳的快速支付系統（ Faster Payment System ，簡稱 FPS ）今日
啟動，大部分銀行即日起接受客戶登記，本月底可以正式開始使用服務，屆時跨行轉帳的
到帳時間，將由以往的數日，縮短至數秒內完成。
 未因颱風影響啟動時間
 金管局原定於今早率參與機構舉行啟動儀式，但因颱風關係，當局決定取消活動。發言人
表示，曾考慮是否推遲系統啟動，惟現階段暫停將涉及極為複雜的技術問題，經審慎考慮
並徵詢其他參與機構意見後，決定按計劃啟動 FPS 。
 據了解， FPS 啟動初期先開放予銀行職員及部分客戶試用，其他客戶則可於即日起登入手
機或網上銀行，以手機號碼或電郵地址登記及連接銀行戶口，待 9 月 30 日起即可隨時從
不同銀行、儲值支付工具之間實時調撥港元及人民幣，打破過往跨行轉帳需時最少 2 日，
並要收費的障礙。

https://fps.hkicl.com.hk/eng/fps/index.php
https://www.youtube.com/watch?v=PDwkADGn9PM

Lecture 2 3
 交銀收費 5 元起 將推優惠
 綜合所得銀行資料，包括滙豐、恒生、東亞、花旗及華僑永亨等大部分銀行均未就個人客戶使用
FPS 跨行轉帳收費，暫時只有交銀香港需要徵費。據交銀香港的客戶通知書上列明，收費分特快及
一般兩種，按照款項的幣種，徵收每筆 50 元及 5 元的費用。記者曾致電客戶熱綫查詢，職員表示
不論涉款多少亦須支付手續費。
 交行發言人回應指，雖然會對零售客戶使用 FPS 訂立收費，但服務推出後會立即推出推廣優惠，
吸引客戶使用服務，並會不時檢討有關收費。
 有銀行界人士坦言，銀行接入 FPS 需承擔系統建設及資金等成本，但業界普遍傾向先觀望市場反
應，同時金管局亦不鼓勵銀行於個人層面徵費，因此大部分銀行均未擬收費。他續指，大部分銀行
均免費提供服務，收費或導致客戶流失，相信短期內不會有其他銀行跟隨。
 另有業內人士以自動櫃員機比喻，雖然提供服務要承擔一定成本，但隨着 FPS 將被廣泛應用，
「估計（個人層面）在可見的將來都不會收費」。
 FPS 由香港銀行同業結算有限公司（ HKICL ）營運，並會以 7x24 的方式運作，屆時已登記的用
戶只需透過手機號碼、電郵地址或經 FPS 產生的獨有系統識別碼收付款，支援港幣及人民幣結
算。
https://invest.hket.com/article/2162280/%E5%BF%AB%E9%80%9F%E6%94%AF%E4%BB%98%E5%95%9F%E5%8
B%95%20%E5%A4%A7%E5%9E%8B%E9%8A%80%E8%A1%8C%E4%B8%8D%E6%94%B6%E8%B2%BB
Assessed by 18/9/2018

Lecture 2 4
Lecture 2 5
Lecture 2 6
What is Blockchain Technology
“The blockchain is an incorruptible digital ledger of economic
transactions that can be programmed to record not just financial
transactions but virtually everything of value.”

Don & Alex Tapscott, authors Blockchain Revolution (2016)

How blockchains could change the world

https://www.mckinsey.com/industries/high-tech/our
-insights/how-blockchains-could-change-the-world

Lecture 2 7
Lecture 2 8
4 Key features
 Decentralized validation. When a transaction such as a ticket sale occurs, new data blocks describing it are
added to a chain only after consensus is reached among the relevant participants on the validity of the action –
for example, when the seller is validated as the owner of a ticket that is sold

 Redundancy. The blockchain is continuously replicated on all or at least a group of nodes in a network. As a
result, no single point of failure exists.

 Immutable storage. Blockchain confounds hackers because to tamper with data they would have to alter not just
one block in a chain but also all successive blocks and the majority of their replications. In addition, data is
registered in the blockchain with a digital fingerprint that includes a date and time stamp; any attempt to change
data would be apparent because the new digital fingerprint would not match the old one.

 Encryption. Digital signatures based on pairs of cryptographic private and public keys enable network participants
to authenticate which participant owns an asset, initiated a transaction, signed a smart contract, or registered
data in the blockchain. Click to
open an
article

Adobe Acrobat
¤å¥ó

Lecture 2 9
Transparent and incorruptible
 The blockchain network lives in a state of consensus, one that automatically checks in
with itself every ten minutes.  A kind of self-auditing ecosystem of a digital value, the
network reconciles every transaction that happens in ten-minute intervals. Each group of
these transactions is referred to as a “block”. Two important properties result from this:

 Transparency data is embedded within the network as a whole, by definition it is public.

 It cannot be corrupted altering any unit of information on the blockchain would mean
using a huge amount of computing power to override the entire network.

 In theory, this could be possible. In practice, it’s unlikely to happen. Taking control of the
system to capture Bitcoins, for instance, would also have the effect of destroying their
value

Lecture 2 10
The Blockchain & Enhanced security
 By storing data across its network, the blockchain eliminates the risks that come with data being held centrally.

 Its network lacks centralized points of vulnerability that computer hackers can exploit. Today’s internet has
security problems that are familiar to everyone. We all rely on the “username/password” system to protect our
identity and assets online. Blockchain security methods use encryption technology.

 The basis for this are the so-called public and private “keys”. A “public key” (a long, randomly-generated string
of numbers) is a users’ address on the blockchain. Bitcoins sent across the network gets recorded as belonging
to that address. The “private key” is like a password that gives its owner access to their Bitcoin or other digital
assets.

 Store your data on the blockchain and it is incorruptible. This is true, although protecting your digital assets will
also require safeguarding of your private key by printing it out, creating what’s referred to as a paper wallet.

Lecture 2 11
Web 3.0
 The blockchain gives internet users the ability to create value and authenticates digital
information. What will new business applications result?

Lecture 2 12
Lecture 2 13
Lecture 2 14
Evolution Of Information Resources
 IS strategy from the 1960s to the 1990s was driven by internal organizational
needs
– Lower existing transaction costs
– Provide support for managers by collecting and distributing information
– Redesign business processes
 In the 2010 era IS strategy was driven by social IT platforms and new capabilities
– A new evolution of applications, processes, and strategic opportunities

Lecture 2 15
 Figure 2.1 – Mission statements of computer companies
Era I Era II Era III Era IV Era V Era VI
1960s 1970s 1980s 1990s 2000+ 2100+

Primary Efficiency Effectiveness Strategic Strategic Value Value

role of IT creation creation
Automate Solve Increase Transform
problems Create Community
existing individual industry/
collaborative and social
paper-based and create and group organizatio
partnerships business
processes opportunities effectiveness n

Justify IT ROI Increasing Competitive Competitive Adding value Creating

expenditures productivity position position relationships
and better
decision
quality
Target of Organization Organization/ Individual Business Customer/ Customer/
systems group manager/ processes supplier employee
group ecosystem ecosystem supplier
ecosystem
Information Application Data driven User driven Business Knowledge People
models specific driven driven driven
(or
relationship
driven)

Lecture 2 16
 Figure 2.1 – Mission statements of computer companies (Cont.)

Era I Era II Era III Era IV Era V Era VI

1960s 1970s 1980s 1990s 2000+ 2100+

Dominate Mainframe, Minicomputer, Microcomputer, Client Server, Internet, Social

technology “decentralized “distributed
“centralized mostly global platforms,
intelligence” intelligence”
intelligence” “centralized “ubiquitous social
intelligence” intelligence” networks,
mobile, cloud

Basis of Scarcity Scarcity Scarcity Plentitude Plentitude Plentitude

value

Underlying Economics Economics Economics Economics of Economics of Economics of

economics of of of information information relationships
information information information separated separated bundled with
bundled with bundled with bundled with from from economics of
economics of economics of economics of economics of economics of information
things things things things things

Lecture 2 17
The Strategic Role for IS – Value
Creation
 IS help firms address their internal and external circumstances
 Enable managers to identify and use information resources strategically
 IS enable firms to gain advantage over the competition.
 Firms draw on modern and innovative applications

Lecture 2 18
Information Resources as Strategic
Tools
 The manager need to combine all the available firm’s resources:
 Internal resources -
– Financial, production, human, and information resources,
 External resources -
– The Internet and various global opportunities
 Information resources is defined as the available data, technology, people, and
processes available to perform business processes and tasks.

Lecture 2 19
Information Resources
 Information resources can be either assets or capabilities.
– IT asset is anything, tangible or intangible, that can be used by a firm in its
processes for creating, producing and/or offering its products, goods or
services. (i.e. IT infrastructure).
– IT capability is something that is learned or developed over time for the firm
to create, produce or offer it products.

Lecture 2 20
IT Assets

 IS infrastructure:
– Includes data, technology, people, and processes.
– The infrastructure provides the foundation for the delivery of a firm’s products or services.
 Information repository
– Logically-related data that is captured, organized and retrievable by the firm.
– Designed to improve the firm’s efficiency.

Lecture 2 21
IT Assets (Cont.)
 Web 2.0 space include resources used but not owned by the firm (eBay,
Facebook, Linked-In etc.).
– Available as a service such as Internet-based software (Software as a Service, or SAAS)
– Managers can manage customer information with an externally based IT resource
– Managers can find expertise or an entire network of individuals ready to participate in the
innovation processes of the corporate using relatively little capital or expense. (i.e. Facebook,
Linked-In).

Lecture 2 22
Categories of IT Capabilities
 Technical skills - applied to
designing, developing and
implementing information systems.
 IT management skills - critical for
managing the IT function and IT
projects.
 Relationship skills - can either
be externally-focused or spanning
across departments.
 Committing and developing
information resources require
substantial financial resources.

Lecture 2 23
 Figure 2.2 Information resources
Type of Information Resource
IT Asset
IS infrastructure
Information repository
IT Capability
Technical skill
IT management skills
Relationship skills
Lecture 2
Definition Example
Anything that can be used by a firm in its processes for creating, producing and/or offering
its products (goods or services)
Base foundation of the IT portfolio Hardware, software, network, data components,
shared through the firm proprietary technology, web-based services
Data that is logically related and Critical information about customers that can be
organized in a structured form used to gain strategic advantage. Much of this
accessible and able for decision information is increasingly available on the web.
making purposes.
Something that is learned or developed over time in order for the firm to create, produce or
offer it products in IT assets
Ability applied to designing, developing Proficiency in systems analysis and design;
and implementing information systems programming skills
Ability to managing IT function and IT Being knowledgeable about business processes
projects and managing systems to support them;
evaluating technology options; envisioning creative
IS solutions to business problems
Ability of IS specialists to work with Spanning: having a good relationship between IT
parties outside the IS department. and business managers
Externally-forced: have a good relationship with an
outsourcing vendor
24
Advantages of Information Resource
 Information resource value :
– Eras I through III – value was derived from scarcity reflected in the cost to produce the
information.
– Era IV – value was derived from plenitude
Network effects is the value of a network node to a person or organization, it
increases when others join the network. (i.e. e-mail)
– Rather than use production costs to guide the determination of price, information products
might be priced to reflect their value to the buyer.

Lecture 2 25
Advantages of Information Resource
(Cont.)
 Information resource appropriation:
– Determining where a resource’s value lies and how it can be improved in a
firm’s favor.
– The attributes of information resources that impact the value make it
possible to create and sustain competitive advantage (i.e. Zara).
 Information resource distribution across firms:
– Early adopters may experience a competitive advantage from using an
information resource.
– The experience gained may lead to inequities between firms.
– Different experiences with a resource creates value, and a create strategic
advantage.

Lecture 2 26
Advantages of Information Resource
(Cont.)
– The value of information mushrooms under conditions of information asymmetries.
– Possessor of information may use it against, or sell it to, companies or individuals who are not
otherwise able to access the information.
 Mobility of Information resource:
– Reliance on the individual skills of IT professional
– Risky as key individuals will leave the firm, taking their experience with them.
– Development of unique knowledge-sharing processes, and creation of an organizational memory.

Lecture 2 27
Advantages of Information Resource
(Cont.)
 Capturing of lessons learned from all team members after the completion of each
project.
 Using social technologies to record interactions and activity streams.
 Information resource become obsolete:
– Information resources lose value over time.
 Understanding the nature of the information resources at hand is a prerequisite to
using them effectively.
 Aligning IS strategy with business strategy enables the general manager
maximizes its profit potential.

Lecture 2 28
Using Information Resources to
Influence Competitive Forces
 Porter’s five forces model show the major forces that shape the competitive
environment of the firm (figure 2.3 and 2.4).

1. Threat of New Entrants: new firms that may enter a companies market.
2. Bargaining Power of Buyers: the ability of buyers to use their market
power to decrease a firm’s competitive position
3. Bargaining Power of Suppliers: the ability suppliers of the inputs of a
product or service to lower a firm’s competitive position
4. Threat of Substitutes: providers of equivalent or superior alternative
products
5. Industry Competitors: current competitors for the same product.

Lecture 2 29
 Figure 2.3 Five competitive forces with potential strategic
use of information resources.

Lecture 2 30
 Figure 2.4 Application of five competitive forces model for Zara.

Competitive Force IT Influence on Competitive Force

Threat of New Zara’s IT supports its tightly-knit group of designers, market specialists, production managers and production
planners. New entrants are unlikely to provide IT to support relationships that have been built over time. Further it
Entrants has a rich information repository about customers that would be hard to replicate.

Bargaining Power of With its constant infusion of new products, buyers are drawn to Zara stores. Zara boasts more than 11,000 new
designs a year, whereas competitors typically offer only 2,000 – 4,000. Further, because of the low inventory that
Buyers the Zara stores stock, the regulars buy products they like when they see them because they are likely to be gone
the next time they visit the store. More recently Zara has employed laser technology to measure 10,000 women
volunteers so that it can add the measurements of ‘real’ customers into its information repositories. This means
that the new products will be more likely to fit Zara customers.

Bargaining Power of Its computer-controlled cutting machine cuts up to 1000 layers at a time. It then sends the cut materials to
suppliers who sew the pieces together. The suppliers’ work is relatively simple and many suppliers can do the
Suppliers sewing. Thus, the pool of suppliers is expanded and Zara has greater flexibility in choosing the sewing
companies. Further, because Zara dyes 50% of the fabric in its plant, it is less dependent on suppliers and can
respond more quickly to mid-season changes in customer color preferences.

Threat of Substitute Industry competitors long marketed the desire of durable, classic lines. Zara forces on meeting customer
preferences for trendy, low-cost fashion. It has the highest sales per square foot of any of its competitors. It does
Products so with virtually no advertising and only 10% of stock is unsold. It keeps its inventory levels very low and offers
new products at an amazing pace for the industry (i.e., 15 days from idea to shelves). Zara has extremely
efficient manufacturing and distribution operations.

Industrial Competitors Zara offers extremely fashionable lines that are only expected to last for approximately 10 wears. It offers trendy,
appealing apparel at a hard-to-beat price.

Lecture 2 31
Porter’s Value Chain Model
 Value chain model addresses the activities that create, deliver, and
support a company’s product or service (see Figure 2.5).
 Two broad categories:
– Primary activities – relate directly to the value created in a product or service.
– Support activities – make it possible for the primary activities to exist and remain
coordinated.

Lecture 2 32
 Figure 2.5 Value chain of the firm.

Lecture 2 33
 Case Study: TAL

Lecture 2 34
Lecture 2 35
Lecture 2 36
Lecture 2 37
Lecture 2 38
Resources to Attain Competitive
Advantage
 A resource is considered valuable when it enables the firm to become more
efficient or effective.
 A resource is rare when other firms do not possess it.
– Stakes or resources required just to be in the business.(i.e. banks and ATMs)
– Initially rare and valuable resources were the communities many companies
implemented using social IT.
– These communities were a valuable resource for the firms that sponsored
them, and only a few existed.

Lecture 2 39
Resources to Sustain Competitive
Advantage
 Many firms who invested in systems learned that gaining a competitive
advantage does not automatically mean that you can sustain it over the long
term.
 Need to continue to innovate and to protect against resource imitation,
substitution, or transfer.
 Technical knowledge, especially that relates to the firm’s operation, a gung-ho
company culture, and managerial experience in the firm’s environment is less
easy to obtain and, hence, considered harder to transfer to other firms.

Lecture 2 40
Strategic Alliances
 An interorganizational relationship that affords one or more companies in the
relationship a strategic advantage.
 E.g., the alliance between Zynga and Facebook helped Zynga benefit from the
revenue resulting from its gamers on Facebook community.
 IS can be the platform upon which a strategic alliance functions.
 E.g., The alliance between Delta and e-Travel helped Delta reduce agency
reservation fees and offered e-Travel new corporate leads.
 Linking value chains through SCM is another way firms build an IT-facilitated
strategic alliance.

Lecture 2 41
Types of Strategic Alliances
 Co-opetition: a new strategy whereby companies cooperate and compete at the
same time with companies in their value net.
 Value net includes a company and its competitors and complementors, as well
as its customers and suppliers, and the interactions among all of them.
 Complementor is a company whose product or service is used in conjunction
with a particular product or service to make a more useful set for the customer.
 Co-opetition is the strategy for creating the best possible outcome for a
business by optimally combining competition and cooperation.

Lecture 2 42
Co-Creating IT and Business Strategy
 Information is increasingly a core component of the product or service offered by
the firm.
 IT strategy is business strategy – they cannot be created without each other.

https://www.100open.com/six-ways-to-co-create-with-your-customers/
Lecture 2 43
Airbnb Co-creation

Lecture 2 44
 Other Strategic analytical tools

Lecture 2 45
What is a SWOT analysis and why should
you use one?
A SWOT analysis guides you to
identify the positives and negatives
inside your organization (Strength &
Weakness) and outside of it, in the
external environment (Opportunity &
Threat). Developing a full awareness
of your situation can help with both
strategic planning and decision
-making.

Lecture 2 46
Product Portfolio (Boston) Matrix
HIGH
Star Wildcat

Market
Growth
& Cash
Use Cash Cow

$$ $ Dog

LOW
HIGH Relative Market Share LOW
& Cash Generation
Adapted from Ray Trygstad, Illinois Institute of Technology, 2003 Adapted from Ward & Peppard, Strategic Planning for Information Systems, John Wiley & Sons 2002

Lecture 2 47
Product Portfolio Model
 Useful in Growth & Maturity stages of four stage product cycle
– Emergence
– Growth
– Maturity
– Decline

Adapted from Ray Trygstad, Illinois Institute of Technology, 2003

Lecture 2 48
IT Support for Wildcat Products
 Low market share, high growth market
 Focus on:
– Product and/or process development
or
– Customer identification, segmentation, communication

Adapted from Ray Trygstad, Illinois Institute of Technology, 2003

Lecture 2 49
IT Support for Star Products
 High market share, high growth market
 Focus on:
– Identifying customers & requirements
and/or
– Business innovation to meet market requirements & differentiate

Adapted from Ray Trygstad, Illinois Institute of Technology, 2003

Lecture 2 50
 IT Support for Cash Cow Products
 High market share, low growth market
 Focus on:
– Keeping costs low
and
– Control of business relationships
& activities

$$$
Adapted from Ray Trygstad, Illinois Institute of Technology, 2003

Lecture 2 51
IT Support for ‘Dog’ Products
 Low market share, low growth market
 Focus on:
– Reducing costs or securing customers to improve profit performance
– Very little innovation as line may be discontinued

Adapted from Ray Trygstad, Illinois Institute of Technology, 2003

Lecture 2 52
Balanced Scorecard
 GOALS & PERFORMANCE MEASURES
– Financial perspective
• How do we look to shareholders?
– Customer perspective
• How do customers see us?
– Internal Business perspective (BPR)
• What must we excel at?
– Innovation & Learning perspective
• Can we continue to improve & create value?

Lecture 2 53
An Example

Lecture 2 54
 Generic IS strategies

Lecture 2 55
Parson’s Strategies for IT Management

 Centrally Planned
 Leading edge
 Free Market
 Monopoly
 Scarce resource

Lecture 2 56
Centrally Planned - Star
 A believe that management would facilitates uncovering the whole picture and
that this larger, overall, view makes for better decisions
 Senior management fully aware of developments
 Emphasis upon the strategy planning process, using them as a path towards
business value from IS
 Most appropriate for strategic systems
 The planning cycle of business and IS are closely integrated
 Normally spans a number of business areas or business units
 Task force approach is best suited
 Centrally planned does not equal centrally controlled

Lecture 2 57
Leading Edge - Wildcat
 Adopted because of a belief that innovation technology use can create business
gains and therefore highly risks the organization can generate huge payback
 Senior management believes this will yield competitive advantage
 Willing to fund experimentation & recognize that not all will succeed
 Evaluation should be in relation to potential business idea
 New technology confined to ‘high potential’ are until proven

Lecture 2 58
Free Market – Wildcat & Dog
 Adopted out of a belief that the Market makes the best decision and since users
are responsible for business results they are the most equipped to make these
best decisions
 Line managers responsible for performance
– Able to make beneficial decisions about IT unhindered by other groups
 Business problems resolved by IS/IT solutions close to the problem
 Most effective in producing support systems
 May also be used for ‘high potential’ systems

Lecture 2 59
Monopoly – Cash Cow
 Information is corporate assets and only be across functionally available if
controlled by a single service sources
 Centralized IT management standardizes solutions
 Often will use best overall cost, long-term best set of solutions rather than optimal
solutions
 If well directed ensures high quality, integrated, maintainable systems
 Required for ‘key operational’ systems

Lecture 2 60
Scarce Resource - Dog
 A belief that information is a finite and hence limited resource whose
development requires a clear justification
 Controls IT through budget limitations
 Investments with greatest return will get priority
 Promotes local solutions, discourages flexible or integrated solutions
 Forces users & IT to find lowest-cost solution
 Very appropriate for ‘support’ applications

Lecture 2 61
 How information gives you competitive
advantage

Based on M. Porter “How information gives you competitive advantage”, Harvard Business Review, 2001

Lecture 2 62
 Strategic Significance of Information
Technology
 How to link your IS/IT planning in accordance to the value chain – to create value
of each key business process
 Looking at the competitive scope of your organization
– Segment group
– Vertical scope [degree of vertical integration]
– Geographic scope
– Industry scope [ranges of related industries that the company competes]

 Based on M. Porter “How information gives you competitive advantage”, Harvard Business Review, 2001

Lecture 2 63
 Strategic Significance of Information
Technology
 Technological transformation
– Transforming the product. Example: GE application service data base supports a consumer
hotline that helps differentiate GE services support
– Changing the industry structure
– Strategic innovation to create competitive advantages
– Spin off to be a new business
 Link up your upstream suppliers to downstream customers

 Based on M. Porter “How information gives you competitive advantage”, Harvard Business Review, 2001

Lecture 2 64
 How to Create Competitive Advantages
 Lowering cost
 Enhancing differentiation
– bundling information with the physical product package sold to the buyer
 Changing competitive scope
– increase its ability to coordinate and create interrelationships among industries that separate
before;
– decentralization;
– introduce new pricing system
 Create new business
– Create derived demand of new products

 Based on M. Porter “How information gives you competitive advantage”, Harvard Business Review, 2001

Lecture 2 65
Amazon Go
 ON MONDAY, AMAZON took the wraps off Amazon Go, a real-world grocery store that
comes with a twist: there’s no checkout process. You just grab the stuff you want and
walk out; the order posts to your Amazon account afterwards. There are no cashiers, no
lines, no fumbling for a credit card. And while experts agree that Go looks very much like
the future of retail, it’s less clear whether Amazon has all of the pieces in place.

 It runs the entire ecosystem. “Amazon controls what gets stocked in the store,”
Luan says. “So Amazon can choose things that they are very good at identifying, and it
can skip all the hard problems for a long time.” It’s hard for Amazon to go wrong when
Amazon itself is controlling who’s going into the space, the infrastructure of the space,
and the products in the space. And even if it does still have lots left to figure out, that’s
what betas are for.

https://www.youtube.com/watch?v=NrmMk1Myrxc https://www.wired.com/2016/12/amazon-go-grocery-store/
Accessed 11 January 2017

Adobe Acrobat
Lecture 2 Document 66
How IS/IT affected competitive forces
1. How can IS/IT build barrier of entry
2. How can IS/IT build in switching cost for customers
3. How can IS/IT change the basis of competition
4. How can IS/IT change the balance of power in supplier / customer
relationship
5. How can IS/IT generate new product/ service

Lecture 2 67
Steps to build up your IS/ IT competitive
advantage
1. Assess information intensity
– potential importance of information
– Identify priority business units for investment in IT/IS both on breath and depth
2. Determine the role of information technology in industry structure
– In reference to the 5 forces model
3. Identify and rank the ways in which information technology might create
competitive advantage
– How to leverage to expand the business globally
– How flexible of the system
– Will it help to create new segment

Based on M. Porter “How information gives you competitive advantage”, Harvard Business Review, 2001

Lecture 2 68
Steps to build up your IS/ IT competitive
advantage
4. Investigate how information technology might spawn new business
5. Develop a plan for taking advantage of information technology
• Rank the strategic investment on both hardware and software
• Ensure cross functional link
• IS mgr to provide leadership to coordinate the system and coaching in system development

Based on M. Porter “How information gives you competitive advantage”, Harvard Business Review, 2001

Lecture 2 69
Case Study

Lecture 2
AlipayHK 星爍無人店
 AlipayHK 聯手信和集團旗下商場奧海城，攜手將科技融入生活，希望為港人帶來全新升
級新零售購物體驗，帶來了全港首間「 AlipayHK 星爍無人店」，整個空間佔地逾 4,000
平方呎。
 由即日起至 10 月 1 日，用戶可以在無人店閘門旁的電子螢幕，透過鏡頭識別用戶的臉部
表情，系統偵測笑容成功後，就可以電子錢包掃碼進入無人店，並應用科技全自動掃描手
上所挑選商品，拿著商品直接走向自助支付區，系統即時就可以感應到商品及價錢，用手
機掃瞄一下，就可完成支付了！

https://www.youtube.com/watch?v=aSyJYZa5bL8
https://unwire.hk/2018/09/05/alipayhkstore/life-tech/

Lecture 2 71
The Workflow

Lecture 2 72
Quick Questions
 How information technology transform the business and society?

 Do you agree the GPS attendance system may cause privacy issue? Why? Do
you like it – in personal and in a company perspective.
 Do you think the unmanned shop can replace the traditional shops? Why or Why
not?
 What are the advantages of the unmanned shop?

 What are the challenges of the unmanned shop?

Lecture 2
Lecture 2 74
 ~ The End ~
Thank you!

Lecture 2 75