Ch 2 Notes
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Feb 20, 2024
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MIS-Chapter 2 Notes
Chapter 2: Strategy and Information Systems
Study Questions
How does organizational strategy determine information systems structure?
What five forces determine industry structure?
How does analysis of industry structure determine competitive strategy?
How does competitive strategy determine value chain structure?
How do business processes generate value?
How does competitive strategy determine business processes and the structure of information systems?
How do information systems provide competitive advantages?
2029?
Figure 2-1 Organizational Strategy Determines Information Systems
Five Forces Determine Industry Structure
Competitive Forces
o
Competition from vendors who manufacture substitutes.
o
Competition from new competitors
o
Competition from existing rivals
Bargaining Power Forces
o
Bargaining power of suppliers
o
Bargaining power of customers
Figure 2-3 Examples of Five Forces
MIS-Chapter 2 Notes
Figure 2-4 Five Forces at Falcon Security
Figure 2-5 Porter’s Four Competitive Strategies
MIS-Chapter 2 Notes
Ethics Guide-The Lure of Love Bots
The problem: 15% of the total subscribers were female, while
85% were male.
“The key to maintaining subscribers on this type of site is keeping them interested.”
To keep subscribers paying, “all we have to do it send them some messages from a dummy account.”
All interactions can be handled with AI bots.
Are the owner’s actions illegal? Unethical?
Ethics Guide
This guide illustrates the uncomfortable position many managers face when they possess knowledge that cannot be communicated to others in the company:
o
As a manager, if an employee asks you directly about that information, you can either divulge it or lie. Which would you choose? What are the consequences of either choice?
o
In general, what are the consequences on the organization’s culture of moving from a low-cost strategy to a differentiation strategy?
o
Is there an alternative between inappropriately divulging information and lying? What is it? What disadvantages does that alternative have?
o
In general, what are the consequences on the organization’s culture of moving from a differentiation
strategy to a low-cost strategy?
o
In general, what are the consequences on the organization’s culture of moving from a low-cost strategy to a differentiation strategy?
Figure 2-6 Drone Manufacturer’s Value Chain
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MIS-Chapter 2 Notes
Figure 2-7 Task Descriptions for Primary Activities of the Value Chain
Figure 2-8 Three Examples of Business Processes
Figure 2-9 Improved
Material Ordering Process
MIS-Chapter 2 Notes
Figure 2-10 and Figure 2-11 and Figure 2-12
Amazon Eats Whole Foods
Amazon recently purchased the grocery retailer Whole Foods for more than $13 billion.
Whis move is perceived by many as a strategic move against Amazon’s major competitor-Walmart.
Walmart sells more groceries than any other company in the United States.
Whole Foods will help Amazon increase its grocery business.
Amazon Go has no checkout lines or point-of-sale terminals.
o
https://www.amazon.com/b?node=16008589011
Do you think other grocery chains are concerned about this move by Amazon?
Do you see any downsides of the Amazon Go model?
Can you identify any other industries that Amazon may choose
to enter in the next 5 years?
Using IS to Create Competitive Advantages
Enhances existing products.
Differentiates products.
Locks in customers
Raises barriers to market entry.
Increases profit margins by decreasing costs and decreasing errors.
Maintains customer account data.
o
IS collects information for ABC (adds value)
o
IS saves customers time by automatically filling in part of form (adds value for customer)
Package and information delivery system
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IS helps customers to select delivery address and generate shipping labels.
o
What value does the shipper get?
Strategy and Information Systems in 2029
Pace of change in integration of new technology fast and increasing
Augmented reality devices, like Magic Leap and Microsoft’s HoloLens, will change competitive landscape
New businesses based on advances in self-driving cars, drones, 3D printing
New products constructed in someone’s garage
Hacking Smart Things
MIS-Chapter 2 Notes
Internet of Things (loT)
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Internet-enabled devices
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Outfitting every object with internet access hazardous even dangerous proposition
Unintended risks associated with incorporating this capability into things
Internet of Threats
What about securing data stored on Internet-enabled smart devices?
o
How to protect 10,20,30 different Internet-enabled devices in your home?
o
Could a hacker hijack webcam in your living room or hijack your car?
o
What businesses and government agencies could benefit?
What are some benefits or risks for businesses adopting new Internet-enabled devices?
How about supply chain, customer service? What else?
The Amazon of Innovation
Amazon’s business lines three categories:
Online retailing
o
Own inventory
o
Associates program
o
Consignment
Order fulfillment
Cloud services
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