How Information gives petitive Advantage.doc

How Information gives petitive Advantage
How Information gives petitive Advantage
Information Revolution ing
How will advances in IT petition?
What strategies should pany pursue to exploit IT?
Of many opportunities in IT, which are the most urgent?
Know How about the IT
Strategic Significance
Changing the nature petition
Competing in the Age of Information
Strategic Significance
IT is changing the panies operate
It is affecting the entire process by which pany create the products
It is reshaping the product itself
Some conceptions
Value Chain/activity
Margin
Support activities
Primary activities
Firm infrastructure
Human resource management
Technology development
Procurement
Marketing and sales
Inbound logistics
Operations
Outbound logistics
Service
Value Chain
Value chain is a system of interdependent activities, which are connected by linkages
Linkages often create trade-offs, also require activities to be coordinated
Value Chain is not only pany but also outside
Competitive advantage in either cost or differentiation is a function of pany’s value chain
Value Chain is not only pany but also outside
Supplier Value chains
Firm Value chains
Buyer Value chains
Channel Value chains
Upstream value
Firm value
Downstream value
Competitive scope
Competitive scope has four key dimensions: segment scope, Vertical scope, geographic scope, industry scope
Competitive scope is a powerful tool for petitive advantage
Broad scope can pany to exploit interrelationships between the value chains serving different scopes
By selecting one scope, pany may be able to tailor the value chain to the selection
IT transforming the value chain
Information technology is permeating the value chain at every point
transforming the way value activities are performed and the nature of linkages1>.
petitive scope and reshaping the way products meet buyer needs
IT is advancing faster than technology for physical processing
During Industrial Revolut