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How does organizational strategy determine Information System Structure?
- 1) Industry Struture
- 2) Competitive Strategy
- 3) Value Chains
- 4) Business Processes
- 5) Information Systems
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Competitive strategy determines the structure, features, and functions of every information system. What is the most likely reason behind this statement?
Organizations goals and objectives are determined by competitive strategy. Competitive strategy determines value chains, which determine business process.
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Value Chain
A network of value-creating activities -generic chain contains 5 PRIMARY ACTIVITES and 4 SUPPORT ACTIVITIES
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Industrial (such as Bank), main areas focus on______,______, and_____. (3个)
Operations, Sale and Marketing, and Customer Service
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Two types of activities inValue Chain
- Primary Activity - major activity to perform
- Support Activity
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5 Primary Activities in the Value chain (5个)
- 1)Inbound Logistics (AcquireBicycleParts)
- 2)Operations/Manufacturing (Produce Bicycle)
- 3)Outbound Logistics (Ship Bicycle)
- 4)Sales and Marketing (Market & Sell Bicycle)
- 5)Customer Service (Service Customers)
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5 Primary Activities (of Value chain)
Each of these adds value to the product
- 1)Inbound Logistics - receiving, storing, and disseminating(distribute) inputs to the product. (Raw Material)
- 2)Operations/Manufacturing - Transforming inputs into the final product.
- 3)Outbound Logistics - collecting, storing, and distributing the product to buyers.
- 4)Sales and Marketing - Inducing buyers to purchase the product and providing a means for them to do so.
- 5)Customer Service - Assisting customers' use of the product and thus maintaining and enhancing the products' value
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Which of the following cannot be considered a part of the sales process?
Inducing buyers to purchase the product and providing a means for them to do so
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Lynn is going through this week's delivery schedule. She calls her team and assigns territories for each executive. She contacts the fleet supervisor to arrange trucks for transportation. Which activity of the value chain is Lynn executing?
Outbound Logistics
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Which of the following activities of a computer manufacturer CANNOT be considered a part of INBOUND LOGISTICS? (3个)
- Outbound Logistics
- Sales and Marketing
- Customer Service
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Differences b/w Service Industry and Product Development Industry
Service Industry dose not have Inbound logistics and Outbound logistics
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Most of the value in a service company is generated by (3个)
- Operations
- Marketing and sales
- Customer Service (service activities)
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Examples such as Bank and Insurance) main areas focus on? (3个)
- Operations/Manufacturing
- Sales and Marketing
- Customer Service
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4 Support Activities in Value Chain (4个)
- Procurement (Manage Supplier Relationship)
- Technology (Investigate New Designs)
- Human Resources (Hire & Support Employees)
- Firm Infrastructure (Manage Company Resources)
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Procurement (采购)
Raw Materials
- From suppliers to acquire raw materials
- How to deal with suppliers
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Technology
R&D(Research& Development), New Techniques, Methods, Procedure
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Human Resources
- Training
- Recruiting
- Compensation
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Firm Infrastructure (坚定的基础设施)
- General Management
- Finance
- Accounting
- Legal
- Goverment Affairs
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Def. Support Activities in the Value Chain
-contribute indirectly to the production, sale and service of the product
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4 Support Activities + Decription (of the Value Chain )
- 1.Procurement - This concerns how resources are acquired for a business
- 2.Technology -Activities concerned with managing information processing and the development and protection of "knowledge" in a business
- 3.Human Resource -Those activities concerned with recruiting, developing, motivating andrewarding the workforce of a business
- 4.Infrastructure-Concerned with a wide range of support systems and functions such asfinance, planning, quality control and general senior management
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Companies all over the world try to be innovative, creative, and modern in their business areas in the way they deliver business process
- A)Technology -(correct answer)
- B)Operation
- C)Customer Service
- D)Procurement
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Example of the bicycle maker transforms raw materials into a finished bicycle, a process that adds more value.
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Each stage of 5 primary activities of the generic chain accumulates costs and adds value to the product.
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Margin=____-_____
Value(of output) - Cost
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What is VALUE?
amount of money a customer is wiling to pay for a resource, product, or service.
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what is the Cost of the business process
is the cost of inputs plus the cost of activities.
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what is Margin(差额)?
The difference between the value that an activity generates and the cost of the activity(盈利和成本的差价）
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Which of the following statements is consistent with the central idea of business process design?
A business process is a network of activities that generate value by transforming inputs into outputs.
-increase margin
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Value Chain Linkages
1)def.
2)example
3)Directed link
- def. -Interactions across value activities readily supported by information systems
- ex. -Manufacturing systems use linkages to reduce costs
- Such as:
- Sales forecasts to plan production >
- Production plan used to determine raw materials needs >
- Material needs used to schedule purchases >
- Just-in-time inventory >
- Reduced inventory sizes and costs
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the central idea of Business process design
Organizations should not automate or improve existing functional systems.
rather, they should create new, more efficient business processes that integrate the activities of all departments involved in a value chain.
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How Do Business Processes Generate Value?(6个）
- Business Process
- Cost of a business process
- Margin of a Business process
- Activity
- Resources
- Facilities Store Resources
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Business Process
Network of activities that gnerate value by transforming inputs into outputs
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Cost of a business process
Cost of inputs plus cost of activities
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Margin of a business process
Equals value of the outputs minus cost
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Activity
Transforms input resources into output resources
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Resources
Flow between or among activities
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Facilities store resources
Inventories, store physical items
- ex:warehouse
- electronic data base
- IS help to store information
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when there are activities connected together, then the business process is direct link to activities, the link help to deliver business process
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3 Business processes Generate Value for a bicycle manufacturer?
- Materials ordering process - (transform cash into raw materials)
- Manufacturing process - (raw materials into finished goods)
- Sales process - (finished goods into cash)
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the streamlining (精简) of business processes
increase margin (add value, reduce cost) --- competitive advantage
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Improved Material Ordering Process
Purchase Bicycle parts activity queries(查询) both raw materials inventory database and finished goods inventory database
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querying both databases allows the purchasing deparment to make decisions on raw materials quantities and customer demand
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By using query data, purchasing can ________ of raw materials inventory, ________ production costs and thus _________to the value chain
- reduce the size
- reducing production costs
- adding margin
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Which of the following principles of competitive advantage is related to PRODUCT implementations? (3个)
- Create New Product/Service
- Enhance Product/Service
- Differentiate Product/Service
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Which of the following principles of competitive advantage is related to PROCESS implementations? (5个)
- Lock in customers and buyers
- Lock in suppliers
- Raise barriers to market entry
- Establish alliances
- Reduce costs
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Def. of Lock in Customers and buyers
(creating high switch costs) make it difficult or expensive for customers to switch to another products
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Def. of lock in suppliers
make it difficult or expensive to switch to another organization or make it easy to connect to and work with the organization
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Def. of creating barriers to maket entry
make difficult and expensive for new competition to enter the market
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Def. of establish alliance
Alliances establish standards, promote product awareness and needs, develop market size,reduce purchasing costs, and provide other benefits (联盟制定标准，促进产品的认知度和需求，发展市场规模，降低采购成本，并提供其他福利)
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def. of Reduce Costs
reductions enable the organization to reduce prices and to increase profitability. Greater shareholder value, more cash,further infreastructure(基础设施) development for greater competitive advantage.
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How does this Information system create a Competitive Advantage?
- Enhances existing products
- Differentiates products
- Lacks in customers
- Raises Barriers to market entry
- Increases profit margins by decreasing costs and decreasing errors
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Huen Software, an application provider to the gaming industry, decided to increase its portfolio by developing 3-D graphics-supported games for the mobile gaming industry. By doing this, which competitive strategy is Huen Software implementing?
- (INDUSTRY-WIDE) (DIFFERENTIATION)
- Creating new products or services (PRODUCT IMPLEMENTATION)
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PowerCruise, a holiday cruise firm, recently offered its existing customers an extension of six months to their membership without any additional charges. By doing this, which competitive strategy is PowerCruise implementing?
Focus Cost
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Information System reduce costs by effeciency and effectiveness
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An organization wants to achieve competitive advantage through process implementations. Which of the following actions would help them do that?
- Lock in customers and buyers
- Lock in suppliers
- Raise barriers to market entry
- Establish alliances
- Reduce costs
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Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.
Switching costs
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Organizations can lock in suppliers by making it difficult to switch to another organization or by ________.
Making it easy to connect and work with the organizations
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A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product. Identify the strategy used here.
Establishing high switching costs A: Lock in customers (process implementation), industry-wide differentiation
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