Your SlideShare is downloading. ×
  • Like
Download presentation source
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Download presentation source

  • 171 views
Published

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
171
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
2
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Welcome to BA530 John A. Hengeveld Karyn Lazarus
  • 2. Agenda for Today
    • Syllabus 2
    • Introduction and Logistics
    • A Firm in Competition
    • Porter Value Chain
    • Dimensions of Competition
    • Information Flow in a Firm
  • 3. Introduction and Logistics
    • Student Introductions
    • Class Syllabus & Schedule Review
    • Case Writeup and Presentation Criteria
    • Teams
    • Any questions??
  • 4. Syllabus – Overview pt 1
    • This course will be a unique and challenging mix of:
      • introduction to strategy
      • introduction to information management systems
      • introduction to successful learning in a business school environment.
  • 5. The Strategy Triangle Business Strategy Organization Strategy Information Strategy Goal of this class, Introduce students To these two topics
  • 6. Learning Objectives 1
    • Understand…a firm’s competitive advantage and the generic strategies for achieving competitive advantage in today’s high paced business world.
      • Define and apply concepts of core competency, competitive fit, environmental analysis and sources of competitive advantage.
      • Develop a basic understanding of the concept of sustained competitive advantage and the role it plays in generating and determining a firm’s strategic choices.
  • 7. Learning Objectives
    • To understand the essential relationships between information, business processes and information technology in the work systems of a firm.
    • To understand implications of information management and competitive strategy and how the firm’s information management options are shaped by larger economic and institutional contexts.
    • To acquire a basic familiarity with the core components in information systems and how they support the information needs of the firm.
    • Establish norms of working in a team environment, and exercise team skills through collaboration on case analysis, material review and presentations .
  • 8. Case Analysis Method
    • A note on Case Learning
  • 9. Written Grading standard:
      • Organization of report 15%
      • Writing “correctness” 10%
      • Goes Beyond the Obvious 10% “depth”
      • Recommendation:
        • Aptness: 20%
        • Persuasion: 15%
      • Analysis:
        • Business Situation Analysis: 10%
        • Identification/Justification Criteria for decision 10%
        • Analysis of Alternatives and Rationale for recommendation: 10%
  • 10. Case Presentation Criteria
    • Clearly demonstrate an understanding of the issues of the case and the business situation facing the key figures – 30%
    • Make a clear prescription or recommendation which addresses the real problems. – 30%
    • Defend your position against questions – 30%
    • Style (professional quality, well presented, keeps the class awake) – 10%
  • 11. Competing in a Global Environment Information, Management and Systems Segment Business Strategy Organization Strategy Information Strategy
  • 12. A firm and competition
    • We need to gain some alignment on some key concepts….
    • What is a firm and why does it exist?
    • What is a firm competing for?
    • Why does it compete?
    • What are industries, types of competition.
  • 13. What is Profit?
  • 14. What is strategy??
  • 15. Common Elements of Successful Strategy Grant: Figure 1.1 Successful Strategy Simple Consistent & Long Term Objectives Effective Implementation Profound Understanding of the Competitive Environment Objective Appraisal of Resources
  • 16. Grants Definition
    • The task of business strategy is to determine
      • HOW the firm will deploy its resources within its environment to satisfy its long term goals and
      • HOW to organization itself to implement that strategy.
  • 17. Graphically Goals and Values Resources Capabilities Structure & Systems Grant: Figure 1.2 The Firm Strategy Competitors Customers Suppliers Industry Environment
  • 18. Strategic Analysis
    • The formulation of strategy begins with
      • Analysis of the industry and its operating environment and dynamics
      • Analysis of the firm and is capabilities to deploy against the key success factors of an industry
  • 19. The Porter Value Chain Firm Infrastructure Human Resource Management Technology Development Procurement Support Activities Primary Activities Inbound Logistics Operations Outbound Logistics Marketing & Sales Service
  • 20. Industry Analysis
    • Analysis of Industry Structure
    • Forecasting Industry Profitability
  • 21. Industry Structure Grant: Figure 3.2 Many Firms No Barriers Homogeneous Product Perfect Information Flow Perfect Competition Few Significant Barriers Potential for Product Differentiation Imperfect Availability of Information High Barriers 2 Firms One Firm Oligopoly Duopoly Monopoly Concentration Entry/Exit Barriers Product Differentiation Information
  • 22. Porter’s 5-forces analysis: Determinants of industry attractiveness Threat of New Entrants Bargaining Power of Suppliers Threat of Substitutes Customer Buying Power Rivalry among Existing Competitors 2 examples
  • 23. Competing in the Age of Information
    • Assess information intensity of its products and businesses
    • Determine the role of information technology in industry structure (5 forces analysis)
    • Identify and rank ways in which information technology might create competitive advantage (hint: value chain)
    • Investigate how information technology might spawn new business
    • Develop a plan for taking advantage of information technology
    From Porter Article
  • 24. Types of Resources
    • Tangible
      • Financial
      • Physical
    • Intangible
      • Technology
      • Reputation
      • Culture
    • Human
      • Specialized Skills and Knowledge
      • Communication and Interactive abilities
      • Motivation
  • 25. Profit Potential of Resources From Grant: Contemporary Strategy Analysis, Blackwell, 1998 The Profit Earning Potential of a Resource or Capability Scarcity Relevance Durability Mobility Replicability The Extent of the Competitive Advantage Established Sustainability of Competitive Advantage Appropriability Property Rights Relative Bargaining Power Embeddedness
  • 26. Information Systems
    • What is data, information, knowledge?
    • What are systems?
    • How does information get used in a firm?
    • How can information be used to generate competitive advantage
  • 27. DATA VS. INFORMATION Websters Collegiate Dictionary Data . "... factual information... used as a basis for reasoning, discussion, or calculation." Information . "2c: facts, data." "1: the communication or reception of knowledge or intelligence." "2a: knowledge obtained from investigation, study, or instruction." Alter’s textbook Data . ”… facts, images, or sounds that may or may not be pertinent or useful for a particular task." Information . ”… data whose form and content are appropriate for a particular use."
  • 28. Okay… what about “knowledge”?
    • (Data vs. information, continued)
      • Data is a kind of ‘proto-information’ (or information potential) that hasn’t (yet) made sense to someone and that hasn’t (yet) made a difference.
    Websters Collegiate Dictionary Information . "2c: facts, data." "1: the communication or reception of knowledge or intelligence." "2a: knowledge obtained from investigation, study, or instruction." “ Information is created from streams of data through the application of knowledge .”
  • 29. SIMPLE MODEL OF AN OPEN SYSTEM INPUTS TRANS- FORMATION PROCESS OUTPUTS INFORMATION PROCESSOR & AGENT OF CONTROL ENVIRONMENT COMMUNICATION:
  • 30. SYSTEM A system is a set of interrelated COMPONENTS that WORK TOGETHER to achieve some predetermined OBJECTIVES by drawing on RESOURCES available from the system's ENVIRONMENT and producing OUTPUTS that satisfy the objectives in some way. COMPONENTS : people, objects, subsystems; i.e., it’s differentiated WORK TOGETHER : interdependencies and integration … which implies coordination and control (management) OBJECTIVES : the goals and purposes of the system; they provide the basis for evaluating system performance RESOURCES : the inputs to the system ENVIRONMENT : defines constraints, including resource limits and demand for the output OUTPUTS : what the system produces
  • 31.  
  • 32. SYSTEM A system is a set of interrelated COMPONENTS that WORK TOGETHER to achieve some predetermined OBJECTIVES by drawing on RESOURCES available from the system's ENVIRONMENT and producing OUTPUTS that satisfy the objectives in some way. COMPONENTS : people, objects, subsystems; i.e., it’s differentiated WORK TOGETHER : interdependencies and integration … which implies coordination and control (management) OBJECTIVES : the goals and purposes of the system; they provide the basis for evaluating system performance RESOURCES : the inputs to the system ENVIRONMENT : defines constraints, including resource limits and demand for the output OUTPUTS : what the system produces
  • 33. DIFFERENTIATION The establishment and maintenance of distinctive “ parts” within the business firm that are specialized for accomplishing certain kinds of tasks and for performing certain kinds of functions effectively and efficiently. functional hierarchical
  • 34. TASKS IN THE FUNCTIONAL AREAS (in brief) Manufacturing & production o inbound logistics, production, outbound logistics o production planning, facilities development, product engineering, operations scheduling, materials acquisition, inventories, manufacture and assembly, order processing, shipping, ... Finance & accounting o financial assets management, firm capitalization o financial records management Sales & marketing o product, pricing, promotion, placement (distribution) o product development, market research, forecasting, competitor analysis, distribution networks, differentiation and promotion, ... Human resources o recruitment, retention, development o labor needs, performance appraisal, training, compensation, legal compliance, ...
  • 35. Senior management: Strategic planning o long-term decisions o environmental scanning, forecasting o capital budgeting o product and market directions o . . . Middle management: Tactical decision making o short-range planning o planning for daily operations o operational monitoring and response o . . . Operational management: Operational control o standardized procedures o routine work o clerical tasks o . . .
  • 36.  
  • 37. INTEGRATION Getting the differentiated elements of the business firm working together as a whole so that firm-wide goals can be achieved… … and integration depends on coordinating flows of information .
  • 38. Materials SUPPLIERS PRODUCTION SUBSYSTEM SALES & MARKETING SUBSYSTEM Product CUSTOMERS Product Functional Integration
  • 39. CUSTOMERS Materials SUPPLIERS Money Information Information Information Money PRODUCTION SUBSYSTEM SALES & MARKETING SUBSYSTEM FINANCE & ACCOUNTING SUBSYSTEM Product CUSTOMERS Product Functional Integration CUSTOMERS & OTHER FINANCIAL SOURCES
  • 40. Hierarchical Integration Strategic objectives Information Transformation Decisions Decisions Tactical objectives Information Operational objectives Senior mgmt level Middle mgmt level Operational mgmt level Production layer/Transaction processing systems Transformation Transformation Decisions Information Information Decisions Information Decisions
  • 41. Summary: What information does… It supports the diverse work activities in the differentiated components of the business firm. It gets the differentiated components working together as a whole so that firm-wide goals can be achieved… o integrating production and control o integrating differentiated functions o integrating managerial levels
  • 42. Setup of the HE Butt case
    • HE Butt was 3 rd largest grocery retailer in the US in 1992 ($3.2B)
    • Mass merchandisers entered the market and represented a serious threat.. Why?
    • Implement ECR system which moved buying logistics to suppliers!
      • Radically increased inventory turns
      • Eliminated “death by price promotion”
      • Levered improvements in scanner technology to automate inventory management
  • 43. Simplified Grocery Value Chain Factory Warehouse Manufacturers Distributors Stores Warehouse $$ $$ Info Info Goods Goods Customers Raw Materials Storage Shelves HE Butt Grocery: A Leader in ECR Impl (Abridged) HBSP
  • 44. HE Butt Discussion Questions
    • (note.. These things need to be in your writeup, but they are only part of what you need to do…..)
    • What is going on in the industry and what are the dynamics of competition? (ie: provide an industry and competitive analysis)
    • What is HE Butts generic strategy?
    • What do you think of the plan in Exhibit 1?