ISYS1000 Lecture Notes - Lecture 2: Retail, Carbon Footprint, Cost Leadership
29 May 2018
School
Department
Course
Professor
Module 2 – Orgaisatioal Strategy,
Copetitive advatage ad Iforatio
Systes
LEARNING OUTCOMES
2.1 Business pressures, organisational responses and its support
2.2 Competitive advantage and strategic information systems
2.3 Business-IT alignment
2.1 BUSINESS PRESSURES, ORGANISATIONAL RESPONSES AND ITS
SUPPORT
3 TYPES OF BUSINESS PRESSURES
Market pressures
Globalisation
The integration and interdependence of economic, social, cultural and ecological facets of
life, made possible by IT which is greatly increasing competition.
The global market must contend with the cost of labour, which is generally higher in more
developed countries, than in developing countries. As developed countries offer benefits
such as healthcare, it drives the cost of doing business even higher. As a result, many labour
intensive industries have moved operations overseas, to countries with lower labour costs.
Changing nature of workforce
The workforce is becoming more diversified. There is an increasing number of women,
single parents, minorities and persons with disabilities. ICT helps integrate all employees
into traditional workforce.
Powerful customers
Customers are more knowledgeable, therefore increasing consumer sophistication and
expectations. Customers can use the internet to find detailed information about products
and services, compare prices and purchase items at electronic auctions. Increased customer
intimacy: organisations ae euied to ko thei ustoe, to e ale to pedit thei
needs.
Technology pressures
Technological innovation and obsolescence
Todays state of the art products may be obsolete tomorrow as rapid changes force
businesses to keep up with consumer demands.
Information overload
The amount of information doubles almost every year. Organisations need tools that can
handle these data processing demands.
find more resources at oneclass.com
find more resources at oneclass.com
Societal, political & legal pressures
Social responsibility
IT executives must understand how IT impacts facets of life such as the environment,
employees health and safety, and the security of consumers using the internet to trade.
Using online marketplaces forces companies to be responsible for the safety and security of
those using online marketplace. Social responsibility is about perceptions, and it can affect
osues peeptio geatly, if you ae ot aeful eough.
Companies use IT to help monitor carbon throughout the organisation in an attempt to help
reduce their carbon footprint.
Compliance with government regulations
Goeets dot disuss ad ok egulatios as uikly as tehology hages.
Protection against terrorist attacks
IT can protect businesses by providing security systems and possibly identifying patterns of
behaviours associated with terrorist activities, including cyber attacks.
Ethical issues
Information ethics relates specifically to standards of right and wrong in information
poessig paties. If hadled pooly, ethial issues a daage a ogaisatios iage
and destroy employee morale.
ORGANISATIONAL RESPONSES
Strategic systems
ICT helps organisations increase market share/profits, better negotiate with suppliers,
prevent competitors entering their markets.
Customer focus
Organisations strive to keep customers happy or risk losing them to competitors e.g. CRM,
self-service.
Make-to-order and Mass customisation
Producing customised products and services; and in large quantity.
Make-to-order is producing customised products and services. Mass production is producing
a large number of identical items. Mass customisation also produces a large quantity of
items, but it customises them to fit the needs and preferences of individual customers
e-Business and e-Commerce
e-Commerce: buying, selling, transferring, exchanging products, services, or information via
computer networks, incl. the internet
e-Business: servicing customers (B2C), collaborating with business partners (B2B),
performing e-transactions within organisation
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
2. 1 business pressures, organisational responses and its support. The integration and interdependence of economic, social, cultural and ecological facets of life, made possible by it which is greatly increasing competition. The global market must contend with the cost of labour, which is generally higher in more developed countries, than in developing countries. As developed countries offer benefits such as healthcare, it drives the cost of doing business even higher. As a result, many labour intensive industries have moved operations overseas, to countries with lower labour costs. There is an increasing number of women, single parents, minorities and persons with disabilities. Ict helps integrate all employees into traditional workforce. Customers are more knowledgeable, therefore increasing consumer sophistication and expectations. Customers can use the internet to find detailed information about products and services, compare prices and purchase items at electronic auctions. Increased customer intimacy: organisations a(cid:396)e (cid:396)e(cid:395)ui(cid:396)ed to (cid:858)k(cid:374)o(cid:449)(cid:859) thei(cid:396) (cid:272)usto(cid:373)e(cid:396), to (cid:271)e a(cid:271)le to p(cid:396)edi(cid:272)t thei(cid:396) needs.
