Operational Excellence
New products, services and business models
Customer and Supplier Intimacy
Improved Decision Making
Competitive Advantage
Survival
Value Chain Model
Primary Activities
Inbound Logistics (warehousing systems)
Operations (machining systems)
Sales and Marketing (electronic ordering)
Service (equipment maintenance)
Outbound Logistics (automated shipment scheduling)
Support Activities
Admin/Management (messaging/scheduling)
Infrastructure (hardware/software used by primaries)
HR (workforce planning)
Technology development
Procurement (electronic ordering from suppliers)
IS can be used for
Synergising companies together for lower operating costs (tying together disparate units)
Enhancing core competencies
Network-based Strategies
Network economics (value created by amount of users)
Virtual Company Model (enhance flexibility/adaptability)
Business Ecosystems (niche firms use keystone firms as platforms to address niche market demand, eg phones and android)
Click and mortar - Two domains to capture value, has tactile aspect. IS would be more complex, difficult to integrate into system.
Click only (pure play) - Low cost, very flexible/adaptable. No tactile aspect, competition fiercer, online security issues.
Intranets/Extranets
Information timeliness/accuracy
Technology Integration (allows separate systems to communicate cross-platform)
Low cost, High value (not much training needed, automation of processes, quick access to information)
Collaboration easier
Video conferencing
E-Tailing
Product benefits - unlimited variety/number
Place benefits - ubiquity
Price benefits - high inventory turnover, large volume, lower prices due to lower costs
Able to target Long Tail
Drawbacks
Physical product delivery
Direct product experience (tactile)
Enterprise Resource Planning (ERP)
Connects systems and legacy systems of an organisation together
Can be integrated (may not be