Using technology to Develop Competitive Advantages

2. Value Chain and Porters 5 Forces
Review

3.  Internal to the Business
◦ Innovation
◦ Streamlined production
◦ Effective planning
◦ Employee motivation
◦ Rapid generation of
solutions to issues – tactical
planning
◦ Proficient development of
ideas and realization of
those ideas –strategic
planning
Internal to
a business
is termed
“Business
Facing”

4.  External to the Business
◦ Effective marketing and
sales
◦ Product development and
innovation
◦ Service development
◦ Quality manufacturing
◦ Distribution processes
◦ Billing processes
◦ Order processing
◦ Customer service
External to
the
business is
termed
“Customer
Facing”

5. While there may be
differences in technologies
the company’s sell, what are
some of the differences in
technologies the company’s
may use.
Technology used in a
company are vastly different
than technologies a
company sells!

6. Business Challenges and Solutions
a. Opportunities for new technology arise
b. You have powerful competitor
a. A new business
strategy is
developed
b. New products and
services are
selected
a. Creation or modification is
done to:
a. Track strategy
b. Manage new product
offerings
a. The strategy is
implemented
b. Partnering with
other vendors is
achieved
a. Sales are increased
b. Better service is
provided

7. Business Challenges and Solutions
a. Opportunities for new technology arise
b. You have powerful competitor
a. A new business
strategy is
developed
b. New products and
services are
selected
a. Creation or modification is
done to:
a. Track strategy
b. Manage new product
offerings
a. The strategy is
implemented
b. Partnering with
other vendors is
achieved
a. Sales are increased
b. Better service is
provided
Cycle starts over again

8. Business Challenges and Solutions
Business
Challenges
and
Solutions
Now tie Porters 5
Forces
Into
Business Challenges
and Solutions

9. Overall Issue in any business, alignment of IT
with business objectives

10.  Identify and understand
business goals and strategies
 Break strategic goals into
concrete activities and
processes
 Identify metrics for measuring
progress – Key Performance
Indicators (KPI’s)
 Determine how IT can help
achieve business goals
 Be able to measure actual
performance of the strategies

11.  Identify and understand
business goals and strategies
 Break strategic goals into
concrete activities and
processes
 Identify metrics for measuring
progress – Key Performance
Indicators (KPI’s)
 Determine how IT can help
achieve business goals
 Be able to measure actual
performance of the strategies

12. Information systems can be created to enable
new products and services or improve existing
products and services

13. Information systems can be created to enable
new products and services or improve existing
products and services

14. Information Systems and Market Focus
Analysis of customer
buying habits
Record, track and
report on customer
preferences
Analysis of product
profitability and cost
of goods sold (COGS)
Project which
products to sell and
which ones not to sell

15. Information Systems and Market Focus
Analysis of customer
buying habits
Record, track and
report on customer
preferences
Analysis of product
profitability and cost
of goods sold (COGS)
Project which
products to sell and
which ones not to sell

16. How has technology
impacted business?
Lets look at the
internet in
conjunction with the
five forces.
•Widens market
•Increases competitors
•Reduces differences
•Pressures competition on price
Existing Competitors
•Reduces barriers to entry
•Provides technology for driving business process
New Entrants
•Facilitates creation of new products and services
Substitute Products and Services
•Bargaining power shifts to customer
Customers Bargaining Power
•Procurement over internet raises power over suppliers
•Suppliers can benefit from reduced barriers to entry
•Elimination of intermediaries
Suppliers Bargaining Power
Technology plays with
business from all
aspects. It can help
and hurt a business. It
can help and hurt a
consumer. It can help
and hurt a supplier. It
can enhance and
restrict market
activity.
In other words,
technology can
be good or bad
depending on
how a business
makes use of it.