Chapter 2
Competing with
Information Technology
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
❖
Identify several basic competitive
strategies and explain how they use
information technologies to confront
the competitive forces faced by
business.
❖
Identify several strategic uses of
Internet technologies and give
examples of how they can help a
business gain competitive advantages.
2-*
Learning Objectives
❖
Give examples of how business
process reengineering frequently
involves the use of Internet
technologies.
❖
Identify the business value of using
Internet technologies to become an
agile competitor or form a virtual
company.
❖
Explain how knowledge management
systems can help a business gain
strategic advantages.
2-*
Section 1
Fundamentals of Strategic
Advantage
2-*
I. Strategic IT
❖
Technology is now the actual cause and
driver of business strategies
❖
Technology is no longer an afterthought in
forming business strategies
2-*
II. Competitive Strategy
Concepts
❖
Strategic Information Architecture – the
collection of strategic information systems
that shape/support the competitive
position/strategies of a firm
2-*
II. Competitive Strategy
Concepts
❖
Competitive Forces (Porter)
Rivalry of Competitors
❖ Threat of New Entrants
❖ Threat of Substitutes
❖ Bargaining Power of Customers
❖ Bargaining Power of Suppliers
❖
❖
Competitive Strategies
Cost Leadership Strategy
❖ Differentiation Strategy
❖ Innovation Strategy
❖ Growth Strategy
❖ Alliance Strategy
❖
2-*
II. Competitive Strategy
Concepts
2-*
III. Strategic Uses of Information
Technology
❖
Other Strategic Initiatives
❖
Locking by Building Relationships
❖
❖
❖
Lock In Customers
Lock In Suppliers
Lock Out Competitors
❖
Switching Costs – make customers/supplier
dependent on mutually...