MIS

CASE – IT Doesn't Matter!

S13 1

N. Carr writes in ???? (Hint: published in HBR in 2003)

what was BIG in IT and Business scene about then? (Hint: Y2K)

How does Carr define "IT?“ (Find actual Quote in Text)Does he see a difference between “IT” and

“MIS”?

What is Carr's most basic argument?

MIS

Changing Competitive Advantagefrom IT ?

S13 2

How does Carr describe the change in Comp. Adv. of IT over time?

What older techs does Carrcompare IT with?

Does Carr say business no longer needs IT?

What does Carr recommend to Business?

MIS

Quiz on Carr

S13 3

15 minutesClosed book/notes

Implementing a CBISusing

Value Chain

Competitive Strategies

MIS

Competitive Strategies V1

S13 5

MIS

Competitive Strategy V2

S13

Slide 6

MIS

The Value Chaincontributions to profit margin

7S13

MIS

Value Chain is a Systemrecall “system concept - IPOF”

8

Each Value Chain Business Process is a System with

Inputs, Processes, Outputs, SubSystemsSome physical, some Information

Within a Competitive Strategy there are opportunities

Reengineer / Reform / Rebuild Business Processes, especially Info

ProcessesWhat CBIS system components are hardest to

change?

S13

MIS

Metrics in the Value Chain

S13 9

Value – What will Customer Pay for it

Margin – Difference between the Value and the Cost of it.

Important metric of effective competition is Profit Margin.

MIS

Metrics of the Value Chain

S13 10

What financial ratio is Profit Margin?

Profit Margin = net income / SalesWhat happens to Profit Margin if:

Revenue (Sales) go up faster than net income

Net Income goes up faster than Revenue

Net Income goes up at the same rate as Revenue

MIS

Using the Value Chain Model

S13 11

How does each Business Process (especially Info Processes)contribute to Profit Margin?

A useful Business Process has to add more value than it adds cost.

For this class the take away here is>> Will a CBIS (a mega BP) add value?

Example of a Siena College value added CBISExample of a possible value loosing CBIS