Chapter 3 Strategy, Info Systems, Competitive Advantage
It was observed that IT had no impact on productivity, however businesses still invested in it.
• Tangible benefits for organizations
• Economybecoming increasingly service-based,hard to measure productivity
• Invisible/intangible benefits associated with IT
Realisation of IT Value
1. Productivity ─ is the firm more efficient and effective?Better/fasteroutput?
2. Structure of Competition ─ change nature of competitionof industry
3. Benefits to end customer ─ cheaper, better goods/services
Investment of IT
• Can't invest in "technologyfor technology's sake"
• Need to understand the business value they are seeking and how IT can help secure it
• Needs knowledge of IT and business, ∴organisations value these people
• Need a balance
• "doing the right things & doing things right"
• network of activities,improve effectiveness/valueof good/service
• Margin ─ difference between price consumer willing to pay & cost of good through chain
• Primary activities─ value added directly
• Support Activities ─ support primary, add value indirectly
• Info systems increase productivity through developmentof efficient/effectivesupport
Industry Structure & Organisation Strategy
• Five Forces Model ○ Porter, used to assess industry structure
○ 5 forces determine ind