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Introduction to Information Technology 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Chapter 13: Strategic Systems and Reorganization Prepared by: Roberta M. Roth, Ph.D. University of Northern Iowa Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-1
Chapter Preview In this chapter, we will study: How IT can support an organization’s strategy A model that helps reveal competitive strategies that IT can support Real examples of strategic information systems How organizations must adapt their structures with IT support to remain competitive How business processes can be revised with IT support to enhance competitiveness How IT can enable new organizational forms (e.g., the Virtual Corporation) Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-2
Strategic Information Systems Strategic Information Systems – systems that support or shape an organization’s competitive strategy May significantly change the way the business operates Makes substantial contribution toward achieving strategic goals May increase performance and productivity significantly Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-3
Strategic Information Systems Outward focus: aimed at direct competition in an industry Inward focus: enhance the competitive position of the firm through… Increasing employee productivity Improving teamwork Enhancing communication Strategic Alliances - two or more companies share an inter-organizational system for mutual benefit Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-4
Competitive Strategy & IT Strategy is the creation of a
unique and valuable position, involving a set of activities different than what rivals do IT creates competitive advantage by giving companies new ways to outperform their rivals Create new applications Enable reengineering of business processes Enable innovation Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter JohnProvide © 2003 Wiley & Sons, Inc. competitive intelligence
13-5
Competitive Intelligence Gather information about
competitors’ performance and activities Gather information about markets, technologies, and governmental actions Often enabled by use of intelligent agents Not the same as industrial espionage Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-6
Competitive Intelligence on the Internet
Intelligence Search Strategy Review competitor’s Web sites Analyse related newsgroups Examine publicly available financial documents
Description
Reveal information about marketing information Find out what people think about a company and its products By entering a number of databases and analyse findings
Do market research at your own Web site
Pose questions to Web site visitors
Use an information delivery service to gather news on competitors
Find what is published on the Internet about competitors
Use corporate research companies
Provide information ranging from risk analysis to stock market analysts’ reports about competitors
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-7
Porter’s Competitive Forces Model and IT
Porter’s Competitive Forces Model Competition - at the core of a firm’s success or failure Used to develop strategies for companies to increase their competitive edge Demonstrates how IT can enhance the competitiveness of corporations 5 major forces: Threat of entry of new competitors
Threat of substitute products or services
Bargaining power of suppliers
Bargaining power of customers (buyers)
Rivalry among existing firms in the industry Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-8
Porter’s Five Forces Model
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-9
Porter’s Competitive Forces Model and IT Response Strategies (Per Porter and Others) – may be supported in part by IT Cost leadership strategy - producing at lowest cost Differentiation strategy - being unique Focus strategy - selecting a narrow-scope segment Growth strategy - increasing market share Alliances strategy - working with business partners Innovation strategy - developing new products Internal efficiency strategy - improving the manner in which business processes are executed Customer-oriented strategy - concentrating Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-10
Impact of IT on Competitive Forces
Key Forces Affecting Business the Industry Implications Threat of new • Additional capacity entrants • Reduced prices • New basis for competition
High power suppliers
High power buyers
• Raise prices/costs • Reduce quality of supply • Reduce availability • Forces prices down • Higher quality demanded • Service flexibility required • Encourage competition
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Potential IT Responses
• Exploit existing economies of scale • Differentiate products / services, • Control distribution channels • Segment markets • Implement sourcing systems • Extend quality control into suppliers’ operations • Use forward planning with suppliers • Differentiate and improve products/ services • Increase switching costs of buyers • Facilitate buyers product selection 13-11
Impact of IT on Competitive Forces Key Forces Affecting the Industry
Business Implications
Substitute products threatened
• Limits potential and profit • Imposes price ceilings
Intense competition from rivals
• Price competition • Need to develop new products and services • Distribution and service become critical • Customer loyalty required
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Potential IT Responses • Use differentiation strategy • Incorporate IT into product, service, or method of provision • Improve price/performance • Redefine products and services to increase value • Redefine market segments • Differentiate products and services in distribution channels and to consumers • Get closer to the end consumer - understand the user requirements
13-12
Sustaining a Competitive Advantage
Early examples of SIS were difficult to
sustain Outward systems will probably eventually be duplicated by competition
Combining SISs with structural changes
in the organization can provide a sustainable strategic advantage Inward systems can be kept secret Install a comprehensive, complex, innovative, and expensive system that cannot easily be duplicated Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-13
Competing Globally Global opportunities also increase
competitive pressure Global strategies and IT must be aligned for success Electronic commerce provides many options for global competitive advances
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-14
The Need for Organizational Change
Organizational structures and processes
established in the Industrial Revolution are no longer effective, due to… Globalization Pressure for rapid change Increasingly demanding customers Opportunities afforded by IT
Focus on vertical, functional organization
is inappropriate Need integration that spans departmental and organizational boundaries Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-15
Business Process Reengineering Solution based on fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in measures of performance Elements: Job Enrichment Employee Empowerment Process Simplification Mass Customization Reduced Cycle Time Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-16
BPR - The Enabling Role of Information Technology The IT tools for BPR
Simulation and visual simulation tools - to support the modeling activities of BPR
Flow diagrams – depict information flows Work analysis - analyze current and proposed processes
Workflow software – depict flow of work from place to place through the organization
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-17
Changes in Work Rules Brought by IT
Old Rule
Information appears in only one place at one time Only an expert can perform complex work. Managers make all decisions.
Intervening Technology Shared databases,
Information client/server appears architecture, simultaneously electronic mail wherever Expert systems, neural needed can Novices computing perform complex work. Decision support systems, Decision making enterprise support is part of systems, expert systems everyone’s job
Field personnel need offices to receive, send, store, and process information.
Wireless communication and portable computers, information highways, electronic mail
You have to locate items manually.
Tracking technology, groupware, workflow software, client/server High-performance computing systems
Plans get revised periodically.
New Rule
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Field personnel can manage information from any location. Items are located automatically Plans get revised instantaneously whenever needed. 13-18
Changes in Work Rules Brought by IT
Old Rule
People must come to one place to work together. Customized products and services are expensive and take a long time to A long period of time develop. is spanned between the inception of an idea and its implementation (time to market) Work should be moved to countries where labor is inexpensive (offshore production).
Intervening Technology Groupware and
group support systems, telecommunication, electronic mail, CAD-CAM, CASE tools, client/server online systems for JIT decision making, expert systems CAD-CAM, electronic data interchange, groupware, imaging (document) processing Robots, imaging technologies, objectoriented programming, expert systems
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
New Rule
People can work together from different locations. Customized products can be made fast and inexpensively (mass Time-to-market customization). can be reduced by 90 percent Work can be also done in countries with high wages and salaries.
13-19
Restructuring Entire Organizations Customer
Account manage r supporte d by ...
Customer demographics Checkin g account s Savings account s
Installm ent loans Mortgag e loans
Trusts
Etc
Expert system Backed up by ...
Statem ent
Reengineered bank with integrated system Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Consolida ted statement
Checkin g expect
Loan expect
Etc 13-20
Networked Organization Resemble computer networks and are supported by
computerized systems Shift toward the networked organization due to the movement toward an information-based economy Hierarchical Organization Formal Highly structured Manage Control Direct Employees a cost Information management-owned Hierarchical organizations Risk avoidance Individual contributions Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Networked Organization Informal Loosely structured Delegate/lead Ownership/participatio n Empower Employees an asset Information shared ownership Flatter/ manageable organizations Risk management Team contributions 13-21
Networked Organization - Roles of Managers and Subordinates Hierarchical Organization
Flattened Organization
Use of Authority by the Manager
Manager Manager makes presents decisions ideas and and announces invites or “sells” question it. s. 1 2
Manage r present s tentativ e decisio n3 subject to 2nd Edition Introduction to Information Technology, change. Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Network Organization
Area of Freedom for Subordinates Manager Manage Manager Manager presents r permits allows problem, defines subordinatessituational gets limits; to function leadership to suggestion asks within limits occur based s, makes group to defined by on which decision. make superior. node of the decision network 7is 4 5 6 . best equipped to solve 13-22 problem.
Empowerment Employees have decision-making or
approval authority in instances where such authority formerly belonged to managers Empowerment and Information Technology Providing the right information at the right time allows employees to make decisions Increase the availability of knowledge Tools enable employees to be more creative and productive with higher quality work Training can be enhanced by IT Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-23
Ethical and Societal Issues Unethical tactics Pressuring competitor’s employees to reveal information Using software that is the intellectual property of other companies without permission Using IT to monitor the activities of employees and customers and in so doing invading the privacy of individuals Societal Issues Reengineering efforts involve dramatic changes in people’s jobs and working relationships Jobs are eliminated Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-24
Virtual Corporations Characteristics of Virtual Corporations
(VC)
Excellence - each partner brings its core competence
so an all-star winning team is created. No single company can match what the virtual corporation can achieve. Full utilization of resources - some resources of the business partners may be underutilized when not in a VC. Opportunism - the partnership is opportunistic. A VC is organized to seize market opportunities. Lack of borders - it redefines traditional boundaries. Trust - business partners in a VC are far more reliant on each other and more trusting than ever before. Adaptability to change - the VC can quickly adapt to environmental changes because its structure is relatively simple. Introduction to Information Technology, 2nd Edition 13-25 Turban, Rainer & Potter Technology IT makes the VC effective and efficient. © 2003 John Wiley & Sons, Inc.
Chapter Summary Strategic information systems can
provide an competitive advantage Porter’s Competitive Forces model helps reveal competitive strategies that may be supported with IT Reorganization supported by IT may be needed to stay competitive IT can provide a number of key innovations, including mass customization, cycle time reduction, empowerment, self-direct teams IT enables the creation of virtual corporations
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-26
Copyright © 2003 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United Stated Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein.
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-27
Chapter 13: Strategic Systems and Reorganization Prepared by: Roberta M. Roth, Ph.D. University of Northern Iowa Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-1
Chapter Preview In this chapter, we will study: How IT can support an organization’s strategy A model that helps reveal competitive strategies that IT can support Real examples of strategic information systems How organizations must adapt their structures with IT support to remain competitive How business processes can be revised with IT support to enhance competitiveness How IT can enable new organizational forms (e.g., the Virtual Corporation) Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-2
Strategic Information Systems Strategic Information Systems – systems that support or shape an organization’s competitive strategy May significantly change the way the business operates Makes substantial contribution toward achieving strategic goals May increase performance and productivity significantly Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-3
Strategic Information Systems Outward focus: aimed at direct competition in an industry Inward focus: enhance the competitive position of the firm through… Increasing employee productivity Improving teamwork Enhancing communication Strategic Alliances - two or more companies share an inter-organizational system for mutual benefit Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-4
Competitive Strategy & IT Strategy is the creation of a
unique and valuable position, involving a set of activities different than what rivals do IT creates competitive advantage by giving companies new ways to outperform their rivals Create new applications Enable reengineering of business processes Enable innovation Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter JohnProvide © 2003 Wiley & Sons, Inc. competitive intelligence
13-5
Competitive Intelligence Gather information about
competitors’ performance and activities Gather information about markets, technologies, and governmental actions Often enabled by use of intelligent agents Not the same as industrial espionage Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-6
Competitive Intelligence on the Internet
Intelligence Search Strategy Review competitor’s Web sites Analyse related newsgroups Examine publicly available financial documents
Description
Reveal information about marketing information Find out what people think about a company and its products By entering a number of databases and analyse findings
Do market research at your own Web site
Pose questions to Web site visitors
Use an information delivery service to gather news on competitors
Find what is published on the Internet about competitors
Use corporate research companies
Provide information ranging from risk analysis to stock market analysts’ reports about competitors
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-7
Porter’s Competitive Forces Model and IT
Porter’s Competitive Forces Model Competition - at the core of a firm’s success or failure Used to develop strategies for companies to increase their competitive edge Demonstrates how IT can enhance the competitiveness of corporations 5 major forces: Threat of entry of new competitors
Threat of substitute products or services
Bargaining power of suppliers
Bargaining power of customers (buyers)
Rivalry among existing firms in the industry Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-8
Porter’s Five Forces Model
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-9
Porter’s Competitive Forces Model and IT Response Strategies (Per Porter and Others) – may be supported in part by IT Cost leadership strategy - producing at lowest cost Differentiation strategy - being unique Focus strategy - selecting a narrow-scope segment Growth strategy - increasing market share Alliances strategy - working with business partners Innovation strategy - developing new products Internal efficiency strategy - improving the manner in which business processes are executed Customer-oriented strategy - concentrating Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-10
Impact of IT on Competitive Forces
Key Forces Affecting Business the Industry Implications Threat of new • Additional capacity entrants • Reduced prices • New basis for competition
High power suppliers
High power buyers
• Raise prices/costs • Reduce quality of supply • Reduce availability • Forces prices down • Higher quality demanded • Service flexibility required • Encourage competition
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Potential IT Responses
• Exploit existing economies of scale • Differentiate products / services, • Control distribution channels • Segment markets • Implement sourcing systems • Extend quality control into suppliers’ operations • Use forward planning with suppliers • Differentiate and improve products/ services • Increase switching costs of buyers • Facilitate buyers product selection 13-11
Impact of IT on Competitive Forces Key Forces Affecting the Industry
Business Implications
Substitute products threatened
• Limits potential and profit • Imposes price ceilings
Intense competition from rivals
• Price competition • Need to develop new products and services • Distribution and service become critical • Customer loyalty required
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Potential IT Responses • Use differentiation strategy • Incorporate IT into product, service, or method of provision • Improve price/performance • Redefine products and services to increase value • Redefine market segments • Differentiate products and services in distribution channels and to consumers • Get closer to the end consumer - understand the user requirements
13-12
Sustaining a Competitive Advantage
Early examples of SIS were difficult to
sustain Outward systems will probably eventually be duplicated by competition
Combining SISs with structural changes
in the organization can provide a sustainable strategic advantage Inward systems can be kept secret Install a comprehensive, complex, innovative, and expensive system that cannot easily be duplicated Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-13
Competing Globally Global opportunities also increase
competitive pressure Global strategies and IT must be aligned for success Electronic commerce provides many options for global competitive advances
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-14
The Need for Organizational Change
Organizational structures and processes
established in the Industrial Revolution are no longer effective, due to… Globalization Pressure for rapid change Increasingly demanding customers Opportunities afforded by IT
Focus on vertical, functional organization
is inappropriate Need integration that spans departmental and organizational boundaries Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-15
Business Process Reengineering Solution based on fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in measures of performance Elements: Job Enrichment Employee Empowerment Process Simplification Mass Customization Reduced Cycle Time Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-16
BPR - The Enabling Role of Information Technology The IT tools for BPR
Simulation and visual simulation tools - to support the modeling activities of BPR
Flow diagrams – depict information flows Work analysis - analyze current and proposed processes
Workflow software – depict flow of work from place to place through the organization
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-17
Changes in Work Rules Brought by IT
Old Rule
Information appears in only one place at one time Only an expert can perform complex work. Managers make all decisions.
Intervening Technology Shared databases,
Information client/server appears architecture, simultaneously electronic mail wherever Expert systems, neural needed can Novices computing perform complex work. Decision support systems, Decision making enterprise support is part of systems, expert systems everyone’s job
Field personnel need offices to receive, send, store, and process information.
Wireless communication and portable computers, information highways, electronic mail
You have to locate items manually.
Tracking technology, groupware, workflow software, client/server High-performance computing systems
Plans get revised periodically.
New Rule
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Field personnel can manage information from any location. Items are located automatically Plans get revised instantaneously whenever needed. 13-18
Changes in Work Rules Brought by IT
Old Rule
People must come to one place to work together. Customized products and services are expensive and take a long time to A long period of time develop. is spanned between the inception of an idea and its implementation (time to market) Work should be moved to countries where labor is inexpensive (offshore production).
Intervening Technology Groupware and
group support systems, telecommunication, electronic mail, CAD-CAM, CASE tools, client/server online systems for JIT decision making, expert systems CAD-CAM, electronic data interchange, groupware, imaging (document) processing Robots, imaging technologies, objectoriented programming, expert systems
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
New Rule
People can work together from different locations. Customized products can be made fast and inexpensively (mass Time-to-market customization). can be reduced by 90 percent Work can be also done in countries with high wages and salaries.
13-19
Restructuring Entire Organizations Customer
Account manage r supporte d by ...
Customer demographics Checkin g account s Savings account s
Installm ent loans Mortgag e loans
Trusts
Etc
Expert system Backed up by ...
Statem ent
Reengineered bank with integrated system Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Consolida ted statement
Checkin g expect
Loan expect
Etc 13-20
Networked Organization Resemble computer networks and are supported by
computerized systems Shift toward the networked organization due to the movement toward an information-based economy Hierarchical Organization Formal Highly structured Manage Control Direct Employees a cost Information management-owned Hierarchical organizations Risk avoidance Individual contributions Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Networked Organization Informal Loosely structured Delegate/lead Ownership/participatio n Empower Employees an asset Information shared ownership Flatter/ manageable organizations Risk management Team contributions 13-21
Networked Organization - Roles of Managers and Subordinates Hierarchical Organization
Flattened Organization
Use of Authority by the Manager
Manager Manager makes presents decisions ideas and and announces invites or “sells” question it. s. 1 2
Manage r present s tentativ e decisio n3 subject to 2nd Edition Introduction to Information Technology, change. Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
Network Organization
Area of Freedom for Subordinates Manager Manage Manager Manager presents r permits allows problem, defines subordinatessituational gets limits; to function leadership to suggestion asks within limits occur based s, makes group to defined by on which decision. make superior. node of the decision network 7is 4 5 6 . best equipped to solve 13-22 problem.
Empowerment Employees have decision-making or
approval authority in instances where such authority formerly belonged to managers Empowerment and Information Technology Providing the right information at the right time allows employees to make decisions Increase the availability of knowledge Tools enable employees to be more creative and productive with higher quality work Training can be enhanced by IT Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-23
Ethical and Societal Issues Unethical tactics Pressuring competitor’s employees to reveal information Using software that is the intellectual property of other companies without permission Using IT to monitor the activities of employees and customers and in so doing invading the privacy of individuals Societal Issues Reengineering efforts involve dramatic changes in people’s jobs and working relationships Jobs are eliminated Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-24
Virtual Corporations Characteristics of Virtual Corporations
(VC)
Excellence - each partner brings its core competence
so an all-star winning team is created. No single company can match what the virtual corporation can achieve. Full utilization of resources - some resources of the business partners may be underutilized when not in a VC. Opportunism - the partnership is opportunistic. A VC is organized to seize market opportunities. Lack of borders - it redefines traditional boundaries. Trust - business partners in a VC are far more reliant on each other and more trusting than ever before. Adaptability to change - the VC can quickly adapt to environmental changes because its structure is relatively simple. Introduction to Information Technology, 2nd Edition 13-25 Turban, Rainer & Potter Technology IT makes the VC effective and efficient. © 2003 John Wiley & Sons, Inc.
Chapter Summary Strategic information systems can
provide an competitive advantage Porter’s Competitive Forces model helps reveal competitive strategies that may be supported with IT Reorganization supported by IT may be needed to stay competitive IT can provide a number of key innovations, including mass customization, cycle time reduction, empowerment, self-direct teams IT enables the creation of virtual corporations
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-26
Copyright © 2003 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United Stated Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein.
Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc.
13-27
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