In order to gain sufficient value from information system, organization must support their technology investment with appropriate complementary investment in organizations and managements as well as social assets. The organization assets required to optimize returns from information technology investment include the organization’s hierarchy, efficient business processes and models, supportive organizational culture, and strong information system development team. The management complementary assets involve strong management support for technology investment and change, Incentives for management innovation, teamwork and collaborative work environments, training programs, and a flexible and knowledgeable management culture. The social assets required including internet and telecommunication infrastructure, education programs raising labor force computer literacy, appropriate technology standards, law and regulations.
Chapter 2, Q1
Business processes are set of activities that define how tasks are organized, coordinated, and focused to produce valuable products and services. It also represents a unique way in which organization coordinate work, information, and knowledge. Business process can have significant impact on the performance of business since they determine how well organization can execute its business, and it can improve firm’s competitiveness.
Chapter 2, (Case Study), Q2
The system, LID3 enables the stores to track inventory the moment it arrives and when it leaves the store. It captures all the information in real time and sends it to centralized database in which management gets clearer picture of the flow of inventory in order to make better decisions. The implementation of this system has result in many benefits including time saving and improved productivity. It ensure that products are always in stock by automating shelf replenishment, optimize inventory allocation among stores by monitor inventory from central database, allocate more store labor to sale floor to serve customers. The system LID3 integrates with the supply chain and point of sale system as well as wireless devices using centralized database. The company can use the information captured in centralized database to created effective, precise report. These give users reports that are based on their specific needs and can be delivered in format that they have easy access to, such as email attachment or Excel spreadsheet. These reports help employees to track inventory on the floor and in the stockroom, and allow management to get more precise information of stores quickly in order to make better purchasing and staffing decisions.
Chapter 3, Q2
Porter's five-forces model looks at the strength of five competitive forces, which, when taken together, determine long-term profitability and competition. The five forces are competitive factors which determine industry competition and include: industry competitors, substitute products and services, customers, suppliers, and new market entrants.
Rivalries naturally develop between companies competing in the same market. Competitors use means such as advertising, introducing new products, more attractive customer service and warranties, and price competition to enhance their standing and market share in industry. The competitive rivalry will be generally high if there is little differentiation between the products sold to customers, competitors are approximately the same size of each other, and if the competitors all have similar strategies.
2. New market entrants:
New entrants to an industry can raise the level of competition, thereby reducing its attractiveness. The threat of new entrants largely depends on the barriers to entry. High entry barriers exist in some industries (e.g. Computer chip business) whereas other industries are very easy to enter (e.g. restaurants).
3. Substitute products and services...