Term
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Definition
Rivalry Between Existing Players
Threat of New Entrants
Threat of Substitutes
Bargaining Power of Suppliers
Bargaining Power of Buyers |
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Term
| The Eight Enhanced Forces |
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Definition
Globalization
Technological
Economic
Ecological
Political
Standards
Laws/Regulations
Financial
Social/Cultural |
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Term
| Rivalry Between Existing Players |
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Definition
generally not passive and will fight for survival, finding new ways to be competitive.
Rivalry can be more intense when there are many players of the same relative size.
hanges in the ecosystem can also cause rivalry to intensify. |
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Term
| Rivalry Between Existing Players -- Strategies (7) |
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Definition
1 Changing Prices
2 Product/Service Differentiation
3 Increase Switching Costs
4 Creative use of Channels
5 Exploit Relationships with Suppliers
6 Exploit Relationships with Buyers
7 Eliminate the competitor |
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Term
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Definition
Rebates, Coupons, and outright price reductions can give a firm an advantage.
Prices so low as to be considered “predatory” legal action may be taken by effected firms or by government agencies. |
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Term
| Product/Service Differentiation |
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Definition
| Offering better value from non-price product attributes |
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Term
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Definition
| Attach future benefits with frequent flier programs |
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Term
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Definition
| Changing how a product eventually gets to the end consumer |
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Term
| Exploit Relationships with Suppliers |
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Definition
| Block competitors through the use of long term contracts |
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Term
| Exploit Relationships with Buyers |
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Definition
| Block competitors from serving key buyers through the use of long term contracts |
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Term
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Definition
| Purchase them or drive them out of the market by reducing prices below their pain point. |
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Term
| Threat of New Entrants -- Strategies (6) |
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Definition
1. Operational Scale
2. Loyalty
3. Image
4. Intellectual Property
5. Linking
6. Channel Control |
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Term
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Definition
| Increase minimum efficient scales of operations |
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Term
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Definition
| Create a marketing / brand image creating loyalty as a barrier |
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Term
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Definition
| Create a socially positive use image |
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Term
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Definition
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Term
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Definition
| Alliances with related products / services |
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Term
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Definition
| Control the access to the customer |
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Term
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Definition
| high when it is easy for new competitors to enter a market |
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Term
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Definition
high when there are many alternatives to a product or service
When __________ is high, profit margins will tend to be low. |
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Term
| Threat of Substitutes -- Generic Strategies |
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Definition
| When dealing with ___________ companies may aggressively price their products, provide a socially positive use image, or create brand loyalty to keep customers from switching. |
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Term
| Bargaining Power of Suppliers |
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Definition
Supplier-buyer relationship.
_____________ is high when the businesses they supply have few choices of whom to buy from and low when the choices are many. |
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Term
| Determinates of Supplier Power: |
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Definition
| Differentiation of Inputs Switching Costs of Suppliers Presence of Substitute Products Supplier Concentration. Importance of Volume to Supplier Cost Relative to Total Purchases in the Industry Impact of Inputs on Cost or Differentiation |
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Term
| Bargaining Power of Buyers |
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Definition
| ______________ is high when they have many choices of whom to buy from and low when their choices are few. |
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Term
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Definition
| When buyer power is very strong |
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Term
| Bargaining Power of Buyers EXAMPLE |
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Definition
| Target and Wal-Mart.... big box retailers |
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Term
| Bargaining Power of Suppliers EXAMPLE |
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Definition
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Term
| Threat of Substitutes EXAMPLE |
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Definition
| Plan paper from any copier (free) can substitute for a planner ($15 to $50) |
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Term
| Threat of New Entrants EXAMPLE |
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Definition
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Term
| Rivalry Between Existing Players |
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Definition
| Extensive variety of products offered .... #2 yellow pencil isn’t yellow anymore. |
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Term
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Definition
is the increasing connectivity,
integration, and interdependence of the
technological, economic, ecological, political,
standards, regulatory, financial and
social/cultural dimensions of the world’s regions.
availability of information has increased |
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Term
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Definition
| broad concept that covers the usage and knowledge of tools and crafts, and how it affects the ability to control and adapt to the environment. |
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Term
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Definition
| A region’s ___________ ability to produce, distribute, exchange, and consume goods and services |
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Term
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Definition
| concerned about global warming and the ecological footprint of business in their region... consequences of not being proactive can be dire including, bad publicity, consumer boycotts, fines / tax levies |
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Term
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Definition
| Tariffs may exist or be enacted to protect local businesses. The stability of the government and the ability to maintain law and order may itself be a concern. |
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Term
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Definition
| three types of standards: official, defacto, and custom |
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Term
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Definition
rules and regulations
Copyrights and protection of intellectual property (IP) may also be an issue. |
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Term
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Definition
| some type of ___________ infrastructure that supports monetary or barter exchange for goods and services. Tax laws, inflation, and exchange rates affect the attractiveness of a market as will GDP and the labor rates. |
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Term
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Definition
| ethno/demographic and norms. |
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Term
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Definition
| standards set by recognized industry, social, or government bodies. |
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Term
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Definition
| not official but are so strong that they are in general accepted use – “It’s always been done that way.” |
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Term
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Definition
| generally social in nature and are often very hard to discern. |
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Term
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Definition
focuses on population growth rates, language, health and welfare, income distribution, educational distribution, age distribution as well as other key demographics.
COLOR, MORAL JUDGEMENTS... |
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Term
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Definition
| society's web of rituals, traditions, and routines that are socially enforced. Violations of ________ can be punished with sanctions or in some cases enforced by law. |
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Term
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Definition
A partnership between
Those with technical skills
The information systems group
General and functional managers |
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Term
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Definition
| A high degree of fit and consonance between the priorities and activities of the IS function and the strategic direction of the firm |
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Term
| clear understanding of the firm |
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Definition
What makes it successful
The business strategy
Its future goals and objectives |
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Term
| Advantages of IS Planning Process |
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Definition
Plans enable communication
Plans enable unity of purpose
Plans simplify decision making over time |
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Term
| Plans enable communication |
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Definition
To support intra-organizational communication
To create a shared mental image of team members’ role |
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Term
| Plans enable unity of purpose |
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Definition
To specify the objective of IS deployment
Clear responsibilities are agreed upon |
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Term
| Plans simplify decision making over time |
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Definition
| To create a context for decision making |
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Term
| Strategic IS Planning Process |
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Definition
Gathering information about the current state of IS resources
Providing a roadmap for decision-making about information systems |
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Term
| Strategic Business Planning |
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Definition
| An organization's mission and future direction, performance targets, and strategy |
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Term
| Effective IS planning can only occur.... |
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Definition
| when there is a clear understanding of the firm |
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Term
What makes it successful?
The business strategy?
Its future goals and objectives? |
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Definition
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Term
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Definition
| An organization's mission and future direction, performance targets, and strategy |
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Term
| Information Systems Assessment |
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Definition
The process of
Taking stock of the firm’s current IS resources
Evaluating how well they are fulfilling the needs of the organization
IS resources x=x IT resources |
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Term
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Definition
| hardware, software and networking components of the IT infrastructure |
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Term
| Data and information resources |
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Definition
| databases and other information repositories |
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Term
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Definition
| skills, attitudes, preconceptions, reporting structures and incentive systems of IS professionals and the user community |
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Term
Know Where You Start
Output: |
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Definition
| a snapshot of the current “state of IS resources” in the organization |
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Term
| Information Systems Vision |
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Definition
| Know Where You Want To Go |
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Term
| Information Systems Assessment |
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Definition
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Term
| Strategic Business Planning |
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Definition
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Term
| Information Systems Vision |
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Definition
| Defines the ideal state the firm should strive for, in its use and management of its resources |
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Term
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Definition
| IS may play a strategic role |
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Term
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Definition
| IS may be a “necessary evil” |
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Term
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Definition
Critical Success Factors (CSF) methodology
Strategic Impact Grid |
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Term
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Definition
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Term
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Definition
| Key Performance Indicators |
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Term
| Critical Success Factors (CSF) / Key Performance Indicators (KPI) |
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Definition
The limited number of areas which managers must effectively control to ensure that the firm will survive and thrive
Ensures that the planning team is able to prioritize
Focuses on business objectives, not on information systems |
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Term
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Definition
| The quantifiable metrics a company uses to evaluate progress toward critical success factors (and are benchmarked) |
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Term
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Definition
| Detailed measures that feed KPIs |
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Term
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Definition
| Elements that drive metrics |
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Term
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Definition
| measures the performance of the IT system itself including throughput, speed, and availability |
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Term
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Definition
| measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases |
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Term
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Definition
| Baseline values the system seeks to attain |
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Term
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Definition
| a process of continuously measuring system results, comparing those results to optimal system performance, and identifying steps and procedures to improve system performance |
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Term
| The Strategic Impact Grid |
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Definition
| It enables simultaneous evaluation of the firm’s current and future information systems needs |
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Term
| Current need for reliable information systems |
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Definition
| Focuses on current day-to-day operations and the functionalities of the existing systems |
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Term
| Future needs for new information system functionalities |
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Definition
| Focuses on the strategic role that new IT capabilities play for the organization |
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Term
| The strategic impact grid |
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Definition
| defines what the use of information systems resources should be going forward |
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Term
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Definition
IS are not mission critical for current operations
New systems promise little strategic differentiation |
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Term
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Definition
Even a small disruptions to IS infrastructure can endanger the firm’s well-being and future viability.
A limited potential for new systems and functionalities to make a substantial contribution |
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Term
| Support Quadrant The firm: |
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Definition
Views IS as a tool to support and enable operations
Considers IS to offer little potential to significantly benefit the organization
Is generally conservative in IS investments |
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Term
| Factory Quadrant The firm: |
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Definition
Closely monitors its current systems
Needs to be willing to fund their maintenance and upgrade.
But takes a conservative stance toward future investments. |
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Term
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Definition
IS are not mission critical for current operations
New IS or new functionalities of existing systems will be critical for the business’ future viability and success |
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Term
| Turnaround Quadrant The firm: |
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Definition
Is readying to change its information systems posture
Needs to engage in some reorganization |
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Term
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Definition
IS are critical to the firm’s current operations
New IS or new functionalities of existing systems is critical for the future viability and prosperity of the business |
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Term
| Strategic Quadrant The firm: |
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Definition
| should be extremely proactive with respect to information systems and IT investments |
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Term
| Information Systems Guidelines |
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Definition
| Know How You Are Going To Get There |
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Term
| Information systems architecture |
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Definition
| A set of statements specifying how the firm should use its technical and organizational IS resources to achieve the IS vision |
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Term
| Information systems architecture Purposes |
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Definition
Enable communication
Establish responsibility
Guide future decision making |
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Term
| Purposes of IS Guidelines |
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Definition
Communication
Identify responsibilities
Long range decision support |
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Term
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Definition
To simplify tactical and operational decision-making
To ensure that future decisions are aligned with the information systems vision |
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Term
| Identify responsibilities |
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Definition
| To set expectations for behavior |
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Term
| Long range decision support |
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Definition
Must be general enough to provide direction over a number of years
Must be actionable |
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Term
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Definition
Address future decisions pertaining to
The hardware and software infrastructure
Networking services
The storage and protection of organizational data and information |
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Term
| Organizational IS Guidelines |
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Definition
Address those decisions that pertain to....
Human resources
The organization of the IS function
Reporting and hierarchical structures
Focus on .....
IT governance issues
Outsourcing and vendors relationships
Human resource decisions |
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