On competition chapter 3 how information gives you competitive advantage
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Transcript of On competition chapter 3 how information gives you competitive advantage
2
Strategic Significance
Value chain with information technology for “Competitive advantage”
Convergent and linkage of technology that process the information.
Transforming the Value Chain
Transforming the Product
Direction and Pace of Change
4Information Technology in Value Chain
Planning model
Automated Personal Scheduling
CAD, Electronic Market Research
Online Procurement Part
Automated warehouse
FlexibleManufacturing
AutomatedOrder Processing
Telemarketing
Remote terminal for sale person
Remote Servicing of Equipment
Usage of Information Technology in Value Chain
6
Direction and Pace of change
Information content of Product Vs. Value Chain
Low
High
Low High
Value Chain
Product
7
Changing Nature of Competition
• Changing Industry Structure
• Creating Competitive Advantage
• Spawning New Business
8
Changing Industry Structure
IT can improving or eroding the attractiveness of industry
Information Technology Unfreezing Industry and Create New
needs
9
Creating Competitive Advantage
Lowering Cost, Enhancing differentiation, and changing competitive scope
Lowering cost Differentiation Competitive Scope
Flexible Differentiation Differentiation
11Competing in the Age of Information Technology
Assessment
Determine
create competitive advantage
Spawn new business
Develop Plan
13
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