IS 379 Lecture Notes - Lecture 3: Thomas Friedman, Value Chain, Switching Barriers
Difference between IT and Computer science
IT assess business need and apply technology solution.
While Computer Scientist develop and design computers and their subsystems.
Who wrote the World is Flat
Thomas Friedman
3 Eras of globalization
Era 1 (1492-1800) - lead by countries (imperialism)
Era 2 (1800-2000) - lead by companies (industrialization, cost of transportation and telecomm
decreased)
Era 3 (2000-present)- lead by group and individuals (world is flat)
What is Globalization
Integration and interaction among people, group, companies located in different nations
What cause Globalization
Globe spanning networks of exchange
(economic globalization)
10 forces or ''flateners" that levelled the global economic playing field
1. Fall of Berlin wall and Windows came up
2. Netscape goes public
3. Workflow software
4. Uploading (open source, wiki)
5. Outsourcing ( transferring portions of work to outside suppliers rather than completing it internally)
6. Offshoring (relocating entire operation to other country)
7. Supply chaining
8. Insourcing ( delagating operation to another company)
9. Informing (google)
find more resources at oneclass.com
find more resources at oneclass.com
10. The steroids (Wireless, Voice over internet (VoIP)
Trend in 2016 not in "the world is flat"
Crowdfunding, Cloud computing, Dominant players
Convergence 1
The flatteners complimented each other creating a global, web-enabled platform pushing the sharing of
knowledge. Time, location and soon language does not matter anymore.
Convergence 2
Horizontalization: means that individual and companies collaborate with each other. Chaning the way
business is done.
Triple convergence
1. creation of new global platform, ability to share knowledge no matter the location time and soon
language
2. Horizontalization: collaboration between companies
3. New players: BRIC opened their economies
Convergence 3
New players: Brazil, Russia, India and China opened their economies. Increasing collaboration between
companies
3 ways IT affect the busineses
1. Automates and Support human info. processing, more productivity
2. Facilitates new strategies and process
3. Transforms existing markets
2 ways to look for SCA
1. Operational effectiveness
2. Differentiation
find more resources at oneclass.com
find more resources at oneclass.com
How to maintain SCA
Control ressources that have 4 things:
1.Value 2. Rare 3. Imperfectly imitable 4. Non-substitutable
8 Key resource for SCA
1. Imitation-resistant value chain
2. Brand
3. Scale
4. Data
5. Network Effects
6. Distribution Channels
7. Patents
extra 8. Differentiation
What is a value chain
set of interrelated activities that brings product/service to market
Component in value chain
Infrastructure, HR and Technology
Activities in value chain that brings product to market
1. inbound logistics 2. operations 3 outbound logistics
4. marketing and sales 5. service
Value chain software
ERP, SCM, CRM
Risk with buying value chain software
Removes SCA in value chain because every company as access to these software.
Reason why Apple develop its own software.
find more resources at oneclass.com
find more resources at oneclass.com
