Organisational Characteristics Over-riding principle: Maximising outputs using limited inputs Features: Established processes Politics Culture Environment Structure Impact of IS Economic Transaction cost theory Agency cost theory Behavioural Flattening Decentralised Resistance to change Increased value? Security? Better data? Better product fit? Knowledge? Some transaction numbers… 60 million domestic passengers a month on US airlines 7 000 000 000 different purchasing transactions at Walmart each year. 2 000 000 000 people ride the London bus network each year Porter’s Five Forces The Value Chain The Third Dimension Unobtrusive Data Capture The extent to which – during the normal business cycle – data is collected and stored in a readily usable format 7 Four Barriers to Erosion Competitor Analysis System Development Analysis Value Network Analysis Sustainability Framework Can your competitors replicate it? How long will it take them? Will replication work? Switching costs ISTM 6251 Summer 2016 GWU Module 3/6 High HighLow Degree of Customizabiilty Reward Strategy Personalization Acquisition StrategyLow Payoff Th eo re ti ca l R ep ur ch as e R at e De gre e o f U nob stru sive Dat a C apt ure Low High .

1. Organisational Characteristics
Over-riding principle:
Maximising outputs using limited inputs
Features:
Established processes
Politics
Culture
Environment
Structure
Impact of IS
Economic
Transaction cost theory
Agency cost theory
Behavioural
Flattening
Decentralised
Resistance to change
Increased value?
Security?
Better data?
Better product fit?
Knowledge?

2. Some transaction numbers…
60 million domestic passengers a month on US airlines
7 000 000 000 different purchasing transactions at Walmart
each year.
2 000 000 000 people ride the London bus network each year
Porter’s Five Forces
The Value Chain
The Third Dimension

3. Unobtrusive Data Capture
The extent to which – during the normal business cycle – data is
collected and stored in a readily usable format
7
Four Barriers to Erosion
Competitor Analysis
System Development Analysis
Value Network Analysis
Sustainability Framework
Can your competitors replicate it?
How long will it take them?
Will replication work?
Switching costs
ISTM 6251 Summer 2016 GWU Module 3/6

4. High
HighLow
Degree of Customizabiilty
Reward Strategy Personalization
Acquisition StrategyLow Payoff
Th
eo
re
ti
ca
l R
ep
ur
ch
as
e
R
at
e
De

5. gre
e o
f U
nob
stru
sive
Dat
a C
apt
ure
Low
High