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12 Cards in this Set
- Front
- Back
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Summary According to Michael Porter, companies can only compete effectively in markets by one of two approaches: |
Summary Low cost: Having the lowest unit production costs in the industry Differentiation: Persuading customers that the product is better, different or unique |
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Summary The steps in the 'strategic agenda' to exploit the information system according to Porter and Millar are: |
Assess the information intensity of the industry. Determine the role of information technology in the industry structure. Identify and rank the ways in which IT might create a competitive advantage. Investigate how IT might spawn new businesses. Develop a plan for taking advantage of IT. |
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Summary According to Porter and Millar, three areas where the 'information revolution' affects competition are: |
IT changes industry structure and, in doing so, alters the rules of competition. IT creates competitive advantage by giving companies new ways to outperform their rivals. IT spawns new businesses, often from within a company's existing operations. |
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Competitive advantage is using knowledge of the competitive forces to? |
Put the organisation in a position where it exerts more competitive force on others than they do on it. |
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According to Porter and Millar, industries can be classified according to their information characteristics in a two-by-two matrix. The axes of the matrix show the following: |
The extent to which information is a component part of the product or service offered (on the x-axis) The number of information exchanges that must take place in order for a transaction to take place (on the y-axis) |
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How can information system be used to gain competitive advantage through, cost control? |
The information system can be used for cost recording and analysis. Information regarding the cost base of rivals may also be used to facilitate a benchmarking exercise. |
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How can information system be used to gain competitive advantage throug, differentiation? |
The information system must gather and analyse data relating to customer needs, and also the extent to which those needs are satisfied by other products or services. |
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According to Porter, a firm's value chain does not exist in isolation, but is part of a 'value system' that links it to the value chains of customers and suppliers. how can competitive advantage be gain due to this? |
By modelling the value system of the industry, an organisation would be able to identify and assess opportunities to integrate their information system with those of customers and suppliers. Such linkages are likely to deter customers and suppliers from dealing with the organisation's rivals, thus providing a competitive advantage. "AMAZON" |
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Information systems are one functional area of an organisation and it complements and supports other areas like marketing, finance, human resourcing and operations. Organisational information systems can be categorised as follows? |
Data processing systems or transaction processing systems Management information systems Executive information systems Decision support systems Expert systems |
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Big Data most commonly refers to large volumes of data beyond the normal processing, storage and analysis capacity of typical database application tools. What are the the risks of Big Data |
The availability of skills to use Big Data systems, The security of data is a major concern; There can be a risk to the data protection of organisations; There is a risk that valuable time is spent measuring relationships that have no organisational value; There may be technical difficulties associated with integrating existing systems. |
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What are potential benefits of big data? |
Drive Innovation Quicker Business Query answering Faster Decision Making Gaining competitive advantage Improving productivity |
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What are the 4 V's issues for big Data
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Veracity - (accuracy of different data) Velocity - (amount of source of data) Volume - (size of data) Variety - (different formats of data) |
