Competing With IT

COMPETING
WITH IT
Presented by: Group 05
Strategic IT
In today's business world, technology is no longer a peripheral

concern, but a central driver of strategy. Information
technology (IT) has the power to revolutionize how companies
compete. A strategic information system is any IT system
designed to give a business an edge. This can be achieved by
creating a competitive advantage, lessening a disadvantage, or
simply aligning with the company's overall strategic goals.
Competitive strategy concepts
01 First is the rivalry among existing competitors, a constant fight for market share and profitability.
02 Second, the threat of new entrants disrupts the status quo and challenges established players.
03 Third, companies must be wary of substitute products or services that could steal customers.
04 Fourth, the bargaining power of suppliers can significantly impact a company's bottom line by
influencing prices or product quality.
05 Finally, businesses must consider the bargaining power of buyers, who with strong buying power
can negotiate lower prices or demand more features.
Strategies
Cost Leadership Differentiation Strategy Innovation Strategy
Become more efficient at producing

goods or services, find ways to help Target a particular market segment or Develop radical changes to business
suppliers or customers reduce their niche, or create unique products or processes or create entirely new
costs, or increase the costs faced by services. products or services.
competitors.
An example of this strategy is Moen, a An example of this strategy is
An example of this strategy is faucet company that allows customers Amazon's online, full-service customer
Priceline, an online travel company
to design their own faucets online. systems that allows customers to
that uses a bidding system where
track orders, review products, and get
buyers set the price for hotel rooms
recommendations.
and other travel arrangements.
Strategies
Growth Strategy Alliance Strategy
Expand company's capacity to produce existing The text in the image says: Alliance Strategy
products or services, expand into global markets, or An alliance strategy involves establishing linkages
diversify into new products or services. and alliances with other companies. These
companies can include customers, suppliers,
An example of this strategy is Wal-Mart's competitors, consultants, and others. There are
merchandise ordering via global satellite tracking, different ways to form alliances according to the
which allowed them to streamline their supply image, including mergers, acquisitions, joint
chain and reduce costs. ventures, and virtual companies.
Build a
customer-
focuesd business
What is the business value in being
Customer-
customer-focused?
Keep customer loyal
Focused
Anticipate their future needs
Respond to customer concerns
business Focus on customer value

Quality, not price, has become the primary
determinant of value
Consistnely
Companies that consistently
offer the best value form the Providing
customer’s perspective
Customer
01. Track individual preferences
Value
02. Keep up with market trends
03. Supply products, services, and information anytime,

anywhere
04. Tailor customer services to the individual
05. Use Customer Relationship Management (CRM) system to

focus on the customer
Building
Customer
Value via
the
Internet
The Value
Chain and
Strategic IS
The Value Chain and
Strategic IS
01 View the firm as a chain of basic activities that add value to

its products and services
Primary process directly relate to manufacturing or

delivering products
The value
Support processes help support the day-to-day running
chain and
of the firm and indirectly strategic IS
02 Use the value chain to highlight where competitive

strategies will add the most value
Using IS in the Value
Chain
Strategies Products
A company that emphasisezes
strategic business use of IT would
use it to gain a competitive
differentiation
Services
Capabilities
Reengineering Business
Processes
Called BRP or simply Reengineering
Fundamental rethinking and radical redesign of business
processes
Seeks to achieve improvements in cost, quality, speed, and service
Potential payback is high, but so is the risk of disruption and failure
Organizational redesign approaches are an important enabler of
reengineering
Includes use of IT, process teams, case managers
BPR Versus Business
Improvement
The Role of IT
IT plays a major role in reengineering most business processes
Can substantially increase process efficiencies
Improves communication
Facilitates collaboration
A Cross-Functional
Process
Many processes are reengineered with...
Enterprise resource planning software
Web-enabled electronic business and commerce systems
Reengineering Order
Management
IT that supports this process...
CRM systems using intranets and the Internet
Supplier-managed inventory systems using the Internet and
extranets
Cross-functional ERP software to integrate manufacturing,
distribution, finance, and human resource processes
Customer-accessible e-commerce websites for order entry,
status checking, payment, and service
Customer, product, and order status databases accessed via
intranets and extranets
Becoming
an Agile
Company
Thêm văn bản khác

Becoming an Agile
Company
Agility is the ability to prosper
In rapidly changing, continually fragmenting global markets
By selling high-quality, high-performance, customer-configured
products and services
By using Internet technologies
An agile company profis in spite of

Broad product ranges
Short model lifetimes
Individualized products
Arbitrary lot sizes
Strategies
Customers perceive the Organizes to thrive on change
products or services and uncertainty
Present products as solutions to Flexible organizational structures keyed

customer’s problems to the requirements of different and
Price products on the basis of their constantly changing customer
value as solutions, rather than their cost opportunities
to produce.
Cooperates with customers, Leveranges the impact and

supplier, other companies, even knowledge
with competitor
Brings products to market as quicly and
nurturing an entrepreneurial spirit, an cost-effectively as possible
agile company provides powerful No matter where resource are located
incentives for employee responsibility, or who owns them.
adaptability, and innovation.
How IT
Helps a
Company
be Agile
Creating a Virtual
company
01
A virtual company uses IT to link
Creating
People
Organizations
Assets
a Virtual
Ideas
02
Inte-enterprise information
systems link
Company
Customers
Suppliers
Subcontractors
Compertitors
A Virtual
Company
Basic business strategies
Virtual
Company
Strategies
01. Share information and risk with alliance partners
02. Link complimentary core competencies
03. Reduce concept-to-cash time through sharing
04. Increase facilities and market coverage
05. Gain access to new markets and share market or customer

loyalty
06. Migrate from selling products to selling solutions

Build knowledge in
organizations
Building a
Knowledge-
Creating
A knowledge-creating company or learning
Company
organization...
Consistently creates new business
knowledge
Disseminates it throughout the company
Builds it into its products and services
Two Kinds of Knowledge
Explicit Knowledge
Data, documents, and things written down or stored in computers
Tacit Knowledge
The “how-to” knowledge in workers’ minds
Represents some of the most important information within an
organization
A knowledge-creating company makes such tacit knowledge
available to others.
Knowledge Management
Successful knowledge management
Creates techniques, technologies, systems, and rewards for
getting employees to share what they know
Makes better use of accumulated workplace and enterprise
knowledge
Knowledge Management
Techniques
Knowledge Management Systems
Knowledge management systems (KMS)
A major strategic use of IT
Manages organizational learning and know-how
Helps knowledge workers create, organize, and make available
important knowledge
Makes this knowledge available wherever and whenever it is
needed
Knowledge includes
Processes, procedures, patents, reference works, formulas, best
practices, forecasts, and fixes
Thank's For
Watching

Competing With IT

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COMPETING

In today's business world, technology is no longer a peripheral

Cost Leadership Differentiation Strategy Innovation Strategy

Become more efficient at producing

Growth Strategy Alliance Strategy

business Focus on customer value

03. Supply products, services, and information anytime,

04. Tailor customer services to the individual

05. Use Customer Relationship Management (CRM) system to

01 View the firm as a chain of basic activities that add value to

Primary process directly relate to manufacturing or

02 Use the value chain to highlight where competitive

Thêm văn bản khác

An agile company profis in spite of

Present products as solutions to Flexible organizational structures keyed

Cooperates with customers, Leveranges the impact and

02. Link complimentary core competencies

03. Reduce concept-to-cash time through sharing

04. Increase facilities and market coverage

05. Gain access to new markets and share market or customer

06. Migrate from selling products to selling solutions

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