Technology allows - ANSWER Benchmarking, disrupting the system
How IT affects business - ANSWER -IT allows you to move between
industries to benchmark
-technology should not drive your business
-figure out your goal and see if technology helps
-automates, supports human information processing
-facilitates new processes and strategy
-transforms existing markets
-transforms existing markets - ANSWER -replacing physical goods with
digital goods
-music, movies, cable. Consumer electronics
-facilitates new processes and strategy - ANSWER -new business strategy (sell
directly to customers)
-new product strategy (customized products)
-automates, supports human information processing - ANSWER -expands the
productivity of knowledge workers
-has been a role of IT in business for many decades
Cost Leadership - ANSWER -substitute information for physical goods
-substitute IT for labor
-increase output from same payroll
Focus - ANSWER -can focus as a low-cost player in a narrow market
-can focus using differentiation in a narrow market segment
Differentiation - ANSWER -Increase product quality
-Increase product "fit"
-Increase product variety
4 characteristics of differentiation - ANSWER valuable
, rare
imperfectly imitable
non-substitutable
Competitive advantage key resources - ANSWER -imitation resistant value
chain
-brand (lowers search cost, inspire trust, viral marketing)
-scale
-switching costs and data
-differentiation
-network effects
-distribution channels
-patents (intellectual property)
value chain - ANSWER set of interrelated activities that bring products or
services to market
imitation-resistant value chains - ANSWER a way of doing business that
competitors struggle to replicate and that frequently involves technology in a
key enabling role
firms can buy software and tools - ANSWER -supply chain management
(SCM)
-customer relationship management (CRM)
-enterprise resource planning software (ERP)
Danger with value chain - ANSWER -if a firm adopts a unique process to a
generic one it may have given up a key resource of competitive advantage
-especially if other companies can buy same stuff
-also stick to core competencies
Brand: - ANSWER -a strong brand can be an exceptionally powerful resource
for competitive advantage
-consumers use brands to lower search costs
viral marketing - ANSWER leveraging consumers to promote a product or
service
How IT affects business - ANSWER -IT allows you to move between
industries to benchmark
-technology should not drive your business
-figure out your goal and see if technology helps
-automates, supports human information processing
-facilitates new processes and strategy
-transforms existing markets
-transforms existing markets - ANSWER -replacing physical goods with
digital goods
-music, movies, cable. Consumer electronics
-facilitates new processes and strategy - ANSWER -new business strategy (sell
directly to customers)
-new product strategy (customized products)
-automates, supports human information processing - ANSWER -expands the
productivity of knowledge workers
-has been a role of IT in business for many decades
Cost Leadership - ANSWER -substitute information for physical goods
-substitute IT for labor
-increase output from same payroll
Focus - ANSWER -can focus as a low-cost player in a narrow market
-can focus using differentiation in a narrow market segment
Differentiation - ANSWER -Increase product quality
-Increase product "fit"
-Increase product variety
4 characteristics of differentiation - ANSWER valuable
, rare
imperfectly imitable
non-substitutable
Competitive advantage key resources - ANSWER -imitation resistant value
chain
-brand (lowers search cost, inspire trust, viral marketing)
-scale
-switching costs and data
-differentiation
-network effects
-distribution channels
-patents (intellectual property)
value chain - ANSWER set of interrelated activities that bring products or
services to market
imitation-resistant value chains - ANSWER a way of doing business that
competitors struggle to replicate and that frequently involves technology in a
key enabling role
firms can buy software and tools - ANSWER -supply chain management
(SCM)
-customer relationship management (CRM)
-enterprise resource planning software (ERP)
Danger with value chain - ANSWER -if a firm adopts a unique process to a
generic one it may have given up a key resource of competitive advantage
-especially if other companies can buy same stuff
-also stick to core competencies
Brand: - ANSWER -a strong brand can be an exceptionally powerful resource
for competitive advantage
-consumers use brands to lower search costs
viral marketing - ANSWER leveraging consumers to promote a product or
service
