Chapter 1: Technology and the Modern Enterprise
Having tech knowledge is crucial in just about every sector of business, no matter what kind of job you have. It’s really just an intro chapter telling us that technology and technology based jobs are increasing and highly attractive, as they grow rapidly
Strategic Information Systems
* Defined by the purpose and objective by which they are created * Purpose is to fulfill organizational processing needs
* Improve efficiency and success
4 Components of an Information System
* These are interdependent (changes in 1 component may affect all 4). This is referred to as SYSTEMIC EFFECTS
First order change
* Only effects TECHNICAL subsystem
* This makes it the easiest to evision, justify and manage
Second Order Change
* Effects the People Component
* Increased Informational intensity, new skills and responsibilities, as well as different groups of people involved.
Third Order Change
* Third order change effects organizational structure
* Reporting relationships, changing the organizational structure, incentives / disincentives * Seeks to transform how the organization operates
* Requires significant managerial and executive involvement
Chapter 2: Strategy & Technology
Firms strive for a sustainable competitive advantage. How do we achieve this?: * 5 forces (buying power, supplier power, threat of entry, threat of substitutes, barriers) * *****Operational Effectiveness: performing the same tasks better than your rivals perform them************ * Try to prevent Fast Follower Problem – the problem that occurs when tech savvy rivals see what the first mover did, learn from their success and missteps, and produce a similar product at a cheaper cost, or a superior product * However, Operational effectiveness isn’t enough! We also need: * ****Strategic Positioning – Performing different activities than your rivals, or the same activities in a different way********* * Technology can also create Strategic differences – advantages that rivals will struggle to match.
Resource-Based view of Competitive Advantage
* The idea that people must control a set of exploitable resources. They must be 1. Valuable
3. Imperfectly Imitable
Value chain: set of activities through which a product or service is created and delivered to customers
Imitation-resistant value chain: This means that firms have developed a way of doing business that others will struggle to replicate, and in nearly every successful effort of this kind, technology plays a key enabling role
Straddling: Occupying more than one position, but failing to match the benefits of your more efficient, singularly focused competitor
Primary Components of Value Chain (IOOMS):
Think MOOSI, or IS MOO, MOO IS etc
1. Inbound Logistics – getting needed materials and other inputs into the firm from suppliers 2. Operations – turning inputs into products or services 3. Outbound Logistics – delivering products or services to consumers 4. Marketing and Sales – Customer engagement, price, promotion 5. Support – Service, maintenance, customer support
Secondary Components of Value Chain (FI, HRM, R&D, P):
1. Firm Infrastructure – functions that support the whole firm (general management, planning, finance, information systems, etc) 2. Human Resource Management – recruiting, hiring, training & developing 3. Technology / research development – new product and service design 4. Procurement - Buying
Technology can help improve the value chain. Firms can buy software to improve things like Supply chain management (SRM), customer relationship management (CRM), and Enterprise Resource Planning (ERP) software. However, anyone can buy this system, so although it improves the value of the value chain, it is not a sustainable competitive advantage.
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