Thursday 13 December 2012
CHAPTER 2 : IDENTIFYING COMPETITIVE ADVANTAGE
PORTER'S 5 FORCES MODEL
Michael Porter's 5 forces model is useful tool to aid organization in challenging decision whether to join new industry or industry segment. the forces that contain in 5 forces are :-
buyer power - it is high when buyers have many choices of whom to buy. meanwhile, it is low when the customers choices are few. to reduce the buyer power(and create competitive advantage), an organization must make it more attractive to buy from the company not from the competitors. best practices of IT based. loyalty program in travel industry for example rewards on free airlines tickets or hotel stays.
supplier power - it is high when buyers have few choices of whom to buy from. it is low when buyers choices are many. best practices of IT to create competitive advantage. for example like B2B(business to business) marketplace -private exchange allow a singe buyer to post it needs and then open the bidding to any supplier who would care to bid. REVERSE AUCTION is an auction format in which increasingly lower bids.
threat of substitute products and services - it is high when there are many alternatives to a product or services. meanwhile it isl ow when there are few alternatives from which to choose. ideally, an organization would like to be on a market in which there are few substitutes of their product or services. best practice of IT for example electronic product that is in same function but different brands. to the extent that customers can use different products to fulfill the same need, the threat of substitutes exist.
switching cost- costs can make customer reluctant to switch to another product or services.
threat of new entrants- it is high when it's easy for new competitors to enter a market. it's low when there are significant entry barriers to entering a market. entry barriers is a product or service feature that customer have come to expect from organization and must be offered by entering organization to compete and survive. best practices of IT for example new bank must offers online paying bills, account monitoring to compete.
rivalry among existence competitors- it is high when competitors is fierce in a market.it is low when competition is more complacent. best practices of IT for example wal-mart and its suppliers using IT enable system for communication and track product at aisles by effective tagging system.it also reduce cost by using effective supply chain.
Michael Porter's 5 forces model is useful tool to aid organization in challenging decision whether to join new industry or industry segment. the forces that contain in 5 forces are :-
buyer power - it is high when buyers have many choices of whom to buy. meanwhile, it is low when the customers choices are few. to reduce the buyer power(and create competitive advantage), an organization must make it more attractive to buy from the company not from the competitors. best practices of IT based. loyalty program in travel industry for example rewards on free airlines tickets or hotel stays.
supplier power - it is high when buyers have few choices of whom to buy from. it is low when buyers choices are many. best practices of IT to create competitive advantage. for example like B2B(business to business) marketplace -private exchange allow a singe buyer to post it needs and then open the bidding to any supplier who would care to bid. REVERSE AUCTION is an auction format in which increasingly lower bids.
threat of substitute products and services - it is high when there are many alternatives to a product or services. meanwhile it isl ow when there are few alternatives from which to choose. ideally, an organization would like to be on a market in which there are few substitutes of their product or services. best practice of IT for example electronic product that is in same function but different brands. to the extent that customers can use different products to fulfill the same need, the threat of substitutes exist.
switching cost- costs can make customer reluctant to switch to another product or services.
threat of new entrants- it is high when it's easy for new competitors to enter a market. it's low when there are significant entry barriers to entering a market. entry barriers is a product or service feature that customer have come to expect from organization and must be offered by entering organization to compete and survive. best practices of IT for example new bank must offers online paying bills, account monitoring to compete.
Sunday 9 December 2012
MGT300 : IT IN BUSINESS
Chapter 1 : BUSINESS DRIVEN TECHNOLOGY
from what i have learn in chapter 1, i can say that IT is really important in our daily life. nowadays, electronics like smart phones, I pads, laptops and computers that can connect us to the other persons are found everywhere, for example in the office, home, car and many more. today, IT also really important for running the businesses. why i say this.? this is because with the existing of IT or technology, an organization can reducing their cost in using the papers. they also can increase their productivity as well as services. besides, an organization can generating the growth in terms of the increasing of employees. at the same time, with the using of IT it is easy to communicate whether with the shareholder or business partners and automatically can save the cost. in addition, Information Technology (IT) is a field that concerned with the use of technology in managing and processing the information. it is also can cover many field that deal with the use of electronic computers and computer software. for example, we can convert, store, protect, process, transmit, and retrieve information securely in an organization. Management Information System (MIS) is a business function for an organization to promote and market their product, for finance, operations and human resources. MIS have 3 important elements that are data, information and business intelligence, IT resources and IT cultures. for IT resources, we have 3 resources that is from people, information and information technology. meanwhile, for IT cultures we have Information Functional Culture, Information Sharing Culture, Information Inquiring Culture and also Information Discovery Culture.
Subscribe to:
Posts (Atom)