BUS 237 : Chapter7 review.docx

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 237
• Professor: Kamal Masri

Document Summary

Recall: in chapter 3, we looked at the ways in which organizations achieve a competitive advantage using is. There are two basic ways to develop competitive advantage through systems: one was by changing the product: by introducing new products or services or enhancing current products or services. Example: zipcar uses the web and electronic card-reading technology to provide customers with access to short-term car rentals at a reasonable price. These services would not be reasonably priced without the information systems that support them. Zipcar therefore is a good example of a company that uses information systems that enable the introduction of a new or enhanced service: the second way of competing is through business processes. Organizations look to technology to help lock in customers, reduce costs, and create entry barriers for competitors in the market. Information systems can affect competitive advantage by making the primary and support activities in an organization more productive than those of competitors.