Chapter 2
Competing with
Information Technology
授課老師：台大工管系 楊立偉
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Section 1
Fundamentals of Strategic Advantage
2-2
I. Strategic IT

Technology is now the actual cause and
driver of business strategies 以技術帶動企
業策略

Technology is no longer an afterthought in
forming business strategies
2-3
II. Competitive Strategy Concepts

Strategic Information Architecture – the
collection of strategic information systems
that shape/support the competitive
position/strategies of a firm
2-4
II. Competitive Strategy Concepts
競爭策略
 成本
 差異化
 創新
 成長
 聯盟
 其它
與之競爭的力量
（五力分析）
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
II. Competitive Strategy Concepts

Competitive Forces (Porter)
Rivalry of Competitors
 Threat of New Entrants
 Threat of Substitutes
 Bargaining Power of Customers
 Bargaining Power of Suppliers


Competitive Strategies
Cost Leadership Strategy
 Differentiation Strategy
 Innovation Strategy
 Growth Strategy
 Alliance Strategy

2-6
III. Strategic Uses of Information Technology

Other Strategic Initiatives

Locking by Building Relationships



Lock In Customers
Lock In Suppliers
Lock Out Competitors

Switching Costs – make customers/supplier
dependent on mutually beneficial inter-enterprise
information systems

Raise Barriers to Entry – discourage or delay
other firms from entering a market

Leverage Investment in IT – develop new
products and services that are not possible
without strong IT capabilities
2-7
II. Competitive Strategy Concepts
Examples
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
II. Competitive Strategy Concepts
Examples
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
II. Competitive Strategy Concepts
Examples
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitive Advantage and
Competitive Necessity

What is Competitive
Advantage?

What is the problem with
competitive advantage?

What is Competitive
Necessity?

What is the relationship
between Competitive
Advantage and
Competitive Necessity?
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
IV. Building A Customer-Focused Business – Strategic
Focus on Customer Value
顧客導向
以顧客為中心
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
IV. Building A Customer-Focused
Business – Strategic Focus on
Customer Value
 Recognizing
that Quality, not Price,
has become the primary factor in a
customer’s perception of value
 Internet
technologies can make
customers the focal point of ebusiness applications 以客戶為中心
2-13
V. The Value Chain and Strategic IS
協調支援：流程管理系統
人力資源管理：員工福利管理系統
技術發展：產品研發系統
支援流程
資源採購：供應商管理系統
競爭優勢
主要流程
進貨物流
作業
生管系統
彈性製造系統 訂單處理系統 目標行銷系統 客戶關係管理系統
McGraw-Hill/Irwin
出貨流程
行銷業務
客戶服務
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
V. The Value Chain and Strategic IS
Value Chain – the series/chain/network of
activities that add value to
products/services
 Primary Processes – directly related to
manufacture of products or delivery of
services

企業一定有其主要之產品或服務，提供產品或服
務之加值活動過程，即為企業之價值鍊，是一
種思考及檢視企業的方法
2-15
V. The Value Chain and Strategic IS

Support Processes – business activities
that that support daily operations of the
firm and indirectly contribute to
products/services

Value Chain Examples

The Value Chain Concept can help identify
where and how to apply strategic
capabilities of IT
2-16
Section 2
Using Information Technology for
Strategic Advantage
2-17
I. Strategic Uses of IT
Support everyday operations (nonstrategic)
 Use IT as a major competitive
differentiator (strategic)

2-18
II. Reengineering Business Processes
改變程度
漸進 - 劇烈
流程變化
改善程序 - 全新程序
既有程序 - 無
起始點
變動頻率
一次或持續 - 週期性
所需時間
短- 長
範圍
窄-廣
時間水平
參與方式
執行方式
過去與現在 - 未來
由下而上 - 由上而下
文化 - 文化與結構
促成因素
統計 - 資訊科技
中-高
風險
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
II. Reengineering Business Processes

Business Process Reengineering (BPR)
High Potential Payback, but High Risk of
Failure
 Organizational Redesign

Process Teams
 Case Managers


The Role of Information Technology –
IT plays a major role in BPR
2-20
III. Becoming An Agile Company

Business today is changing from mass
market products/services that were
standardized, long-lived, informationpoor, exchanged in one-time
transactions to global competition with
niche markets that are individualized,
short-lived, information-rich,
exchanged on an ongoing basis with
customers
2-21
III. Becoming An Agile Company

4 Basic Strategies:





Customer Perception of Goods and Services
Partnering with Customers, Suppliers, and Even
Competitors
Organize to Thrive on Change and Uncertainty
Leverage Impact of Personnel and Their
Knowledge
Types of Agility



Customer
Partnering
Operational
2-22
III. Becoming An Agile Company
Examples
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IV. Creating A Virtual Company
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
IV. Creating A Virtual Company

Virtual Company – Uses the Internet, intranets and
extranets to create virtual workgroups and support
alliances with business partners
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
V. Building a Knowledge-Creating Company
Knowledge Management – 3 levels: Enterprise Knowledge; Information
Creation, Sharing, and Management; Document Management
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
V. Building a Knowledge-Creating
Company

One sure Source of Competitive Advantage is
Knowledge

The Business of a “Knowledge-Creating” company
is Continuous Innovation

Explicit Knowledge – written down or stored on
computers

Tacit Knowledge – “how-to” knowledge residing in
the workers; very important but little incentive to
share this information so it is never written down
2-27
VI. Knowledge Management Systems

Goal of Knowledge Management – to create,
organize, and disseminate important
business knowledge whenever and wherever
it is needed in the organization

Knowledge Management systems:




Facilitate organizational learning and knowledge
creation
Provide rapid feedback top knowledge workers
Encourage employee behavioral change
Significantly improve business performance
2-28
VI. Knowledge Management Systems

Making personal knowledge available is the
central activity of a knowledge-creating
company

This takes place continuously at all levels of
the organization

Knowledge management has become a major
strategic use of information technology
2-29