Using MIS 3e Chapter 3 - GradeBuddy

Information Systems for Competitive Advantage

David Kroenke

Using MIS 3e Chapter

3

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3-2

• Recall from Chapter 1 that MIS is the development and use of information systems that enable organizations to achieve their goals and objectives. In Chapter 2, you learned how information systems can help people collaborate.

• This chapter focuses on how information systems support competitive strategy and how IS can create competitive advantages. As you will learn in your organizational behavior classes, a body of knowledge exists to help organizations analyze their industry, select a competitive strategy, and develop business processes.

• In the first part of this chapter, we will survey that knowledge and show how to use it, via several steps, to structure information systems.

• Then, in the last section, we will discuss how companies use information systems to gain a competitive advantage.

Chapter Preview


Q1 How does organizational strategy determine information systems structure?

Q2 What five forces determine industry structure?

Q3 How does analysis of industry structure determine competitive strategy?

Q4 How does competitive strategy determine value chain structure?

Q5 How do business processes generate value?

Q6 How does competitive strategy determine business processes and the structure of information systems?

Q7 How do information systems provide competitive advantages?

Q8 2020?

Study Questions


• Organization goals and objectives are determined by competitive strategy.

• Competitive strategy determines information system structure, features, and functions.

How Does Organizational Strategy Determine Information Systems

Structure?

Fig 3-1 Organizational Strategy Determines Information Systems


Improved Material Ordering Process


• Key to a company’s competitive advantage is to increase the margin of its products by adding value, reducing costs, or both.

• Business process redesign helps a business streamline its activities in order to increase its margins.

• Most difficult part of process redesign is associated with employee resistance.

Business Process Summary









Q8 2020?

Study Questions


How could the following concepts help you get and keep a job? Switching costs?Differentiating products?Creating barriers?Establishing alliances?Reducing costs, increasing revenues?

Guide: Your Personal Competitive Advantage









Q8 2020?

Active Review


• (Video)1. Analyze the five competitive forces for Bosu’s market.

2. Visit www.bosu.com. What appears to be Bosu’s competitive strategy? Explain your answer.

3. Explain the nature of the five primary value chain activities for Bosu.

4. Review the principles of competitive advantage in Figure 3-8. What information systems can Bosu create to enhance its product or differentiate it from existing and emerging competition?

5. What information systems can Bosu develop to create barriers to entry to the competition?

6. What information systems can Bosu develop to lock in customers?

7. What information systems can Bosu develop to establish alliances?

Case Study 3: Bosu Balance Trainer


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mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2011 Pearson Education, Inc. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

Using MIS 3e Chapter 3 - GradeBuddy

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