OMIS2000- Chapter Notes

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Unformatted text preview: deliver the required products/services at the right price and location. Synergies: when the output of some units can be used as inputs to others units, or 2 organizations pool markets and expertise, these relationships lower costs and generate profits. Ex. TD and Canada Trust merged for this reason One us of IT in these synergy situations are to tie together the operations of disparate business units so that they can act as a whole. Ex. Air Canada and Canadian Airlines merged; Air Canada only eliminated the competition and also gained access to airport landing gates and customers including the customers’ profiles and loyalty card data. OMIS 2000 Final Exam Gahtan 9 Enhancing Core Competencies: a core competency is an activity for which a firm is a world- class leader. Network- based Strategies: include the use of network economics, virtual company model, and business ecosystems - Network economics: when the law of diminishing returns fail, an additional input = actually beneficial. Ex. eBay relies on more and more users to become more viral and more profitable. Network economics also provides strategic benefits to commercial software benefits - Virtual company model: aka virtual org, uses networks to link people, assets, and ides, enabling it to ally w/ other companies to create and distribute products/services w/o being limited by traditional organizational boundaries or physical locations. Ex. Li & Fung works as a virtual company to produce products for companies such as Guess, Ann Taylor, Reebok, etc. - Business ecosystems: keystone and niche firms – business ecosystems =...
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