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Unformatted text preview: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information Systems for Competitive Advantage LEARNING OBJECTIVES • Understand ways in which organizational strategy determines information systems structure. • Know the five forces that determine industry structure. • Understand competitive strategy. • Understand what is meant by a value chain. • Understand how business processes generate value. • Understand how competitive strategy determines business processes and the structure of information systems. • Know how information systems provide competitive advantage. CHAPTER OUTLINE • How Does Organizational Strategy Determine Information Systems Structure? • What Five Forces Determine Industry Structure? • What Is Competitive Strategy? • What Is a Value Chain? o Primary Activities in the Value Chain o Support Activities in the Value Chain o Linkages in the Value Chain • 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 Advantage? o Competitive Advantage via Products o Competitive Advantage via Business Processes o How Does an Actual Company Use IS to Create Competitive Advantages? o How Does This System Create a Competitive Advantage? 3-1 Kroenke - Using MIS 2e - Instructor’s Manual USING YOUR KNOWLEDGE 1. Apply the value chain model to a retailer such as Target ( http://www.target.com ). What is its competitive strategy? Describe the tasks Target must accomplish for each of the primary value chain activities. How does Target’s competitive strategy and the nature of its business influence the general characteristics of Target’s information systems? Target’s competitive strategy is differentiation/focus. Target strives to have higher quality and more stylish products at reasonable prices in the discount department store segment of the consumer retail industry. Target uses advertising conveying its hip and stylish products at value prices to attract customers. Target must ensure its inbound logistics keep stores stocked with merchandise. Target’s operations ensure a pleasing shopping experience with pleasant, well-designed displays. Target’s outbound logistics ensure that customers can readily make their purchases. Finally, Target must provide after-sale service to its customers, especially regarding returns and defective products. Target’s information systems will focus on store inventory management and distribution. 2. Apply the value chain model to a mail-order company such as L.L. Bean ( http://www.llbean.com ). What is its competitive strategy? Describe the tasks L.L....
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- Spring '10