Mis Son

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Mis Son

  1. 1. INTERNET and STRATEGIC POSITIONING <ul><li>Ebubekir Arslan </li></ul><ul><li>Tankut Tarım </li></ul><ul><li>Ali Tuncer </li></ul><ul><li>21.04.2009 </li></ul>
  2. 2. How Can the Internet be Used to Create Economic Value? <ul><li>Industry Structure : Determines the profitability of an average competitor </li></ul><ul><li>Sustainable Competitive Advantage : Allows a company to outperform the average competitor </li></ul>
  3. 3. Competitive Advantage <ul><li>3 basic strategies: </li></ul><ul><ul><li>Cost leadership </li></ul></ul><ul><ul><ul><li>Prices lower than the competition </li></ul></ul></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><ul><li>Products with some quality that makes them more attractive than the competition </li></ul></ul></ul><ul><ul><li>Focus </li></ul></ul><ul><ul><ul><li>Concentration on niche market s </li></ul></ul></ul>
  4. 4. The Internet and Competitive Advantage <ul><li>How to achieve it? </li></ul><ul><ul><li>Operational Effectiveness : Doing the same things as your competitors but doing them better </li></ul></ul><ul><ul><li>Strategic Positioning : Doing things differently than your competitors </li></ul></ul>
  5. 5. Six Principles of Strategic Positioning <ul><li>Start with right goal: long-term return on investment </li></ul><ul><li>Deliver a value proposition different from competitors </li></ul><ul><li>Have a distinctive value chain </li></ul><ul><li>Robust strategies involve trade-offs </li></ul><ul><li>Define how all elements of what a company does fit together </li></ul><ul><li>Continuity of direction </li></ul>
  6. 6. Strategic positioning <ul><li>While a new means of conducting business has become available the fundamentals of competition remain unchanged </li></ul><ul><li>Use of the Internet creates economic value by: </li></ul><ul><ul><li>Creating new opportunities </li></ul></ul><ul><ul><li>Providing unique, common information technology platform </li></ul></ul><ul><ul><li>Offering complementary service </li></ul></ul><ul><ul><li>Creating i n ter - connected value chain </li></ul></ul><ul><ul><li>Enhanc ing the customer’s experience </li></ul></ul>
  7. 7. Internet and Value Chain: 5 Overlapping Stages <ul><li>1st stage: Automated discrete transactions ; order entry and accounting </li></ul><ul><li>2nd stage: Functional enhancement of individual activities ; sales force operations and HR management </li></ul><ul><li>3rd stage: Cross -functional activities; CRM, SCM, ERP </li></ul><ul><li>4th stage: Integration of value chain and entire value system, applications that connect CRM, SCM, ERP </li></ul><ul><li>5th stage: Real-time optimization </li></ul>
  8. 8. IT ’ s Role in Strategy and the Internet <ul><li>Internet provides a stronger, interconnected information architecture </li></ul><ul><li>Older software and ERP systems forced companies to conform to their structure </li></ul><ul><ul><li>Reducing opportunities for differentiation </li></ul></ul><ul><ul><li>This no longer occurs </li></ul></ul><ul><li>Systems to fit their unique processes </li></ul>
  9. 10. Internet used by IT <ul><li>Firm Infrastructure </li></ul><ul><ul><li>web-based, distributed financial and ERP systems </li></ul></ul><ul><li>Human Resource Management </li></ul><ul><ul><li>Self-service personnel and benefits admin., Web-based training </li></ul></ul><ul><li>Technology Development </li></ul><ul><ul><li>Collaborative design across locations, Knowledge directories </li></ul></ul><ul><li>Procurement </li></ul><ul><ul><li>Internet-enabled demand planning, automated “requisition to pay” </li></ul></ul>
  10. 11. Internet used by IT <ul><li>Supply Chain Management </li></ul><ul><ul><li>Inbound Logistics </li></ul></ul><ul><ul><ul><li>Real-time integrated scheduling, shipping, warehouse management </li></ul></ul></ul><ul><ul><li>Operations </li></ul></ul><ul><ul><ul><li>Integrated information exchange, components suppliers </li></ul></ul></ul><ul><ul><li>Outbound Logistics </li></ul></ul><ul><ul><ul><li>Real-time transaction of orders, customer and channel access to product development </li></ul></ul></ul><ul><ul><li>Marketing and Sales </li></ul></ul><ul><ul><ul><li>On-line sales channels, real-time inside and outside access to customer information </li></ul></ul></ul><ul><ul><li>After-Sales Service </li></ul></ul><ul><ul><ul><li>On-line support of customer service reps., customer self-service via web sites </li></ul></ul></ul>

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