Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Competing with
Information
Technology
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-1
Learning Objectives
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
1. Identify several basic competitive
strategies and explain how they can
use information technologies to
confront the competitive forces faced
by a business.
2. Identify several strategic uses of
Internet technologies, and give
examples of how they give competitive
advantages to a business.
3. Give examples of how business process
reengineering frequently involves the
strategic use of Internet technologies.
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-2
Learning Objectives
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
4. Identify the business value
of using Internet
technologies to become an
agile competitor or to form a
virtual company.
5. Explain how knowledge
management systems can
help a business gain
strategic advantages.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-3
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Fundamentals
of Strategic Advantage
Strategic IT
• Supports Efficient Business
Operations
• Workgroup or Enterprise
Collaboration
• Effective Business Decisions
Real World Case 1- GE,
Click to go to
Dell, Intel, and Others Case 1
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-4
Strategic Advantage
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Competitive Strategy Concepts
Strategic Information Systems
• Support Competitive
Position
• Can Be Any Kind of
Information System
• Gain Competitive
Advantage
• Reduce a Competitive
Disadvantage
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-5
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Competitive Strategies
Strategic Advantage
Cost
Leadership
Differentiation
Innovation
Growth
Alliance
Other
Strategies
Rivalry of Threat of Threat of Bargaining Bargaining
Competitors New
Substitutes Power of Power of
Entrants
Customers Suppliers
Competitive Forces
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-6
Strategic Advantage
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Other Competitive Strategies
• Lock in Customers
• Lock in Suppliers
• Switching Costs
• Barriers to Entry
• Leverage Investment
in IT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-7
Strategic Advantage
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Wal-Mart and Others
• Satellite Network Linking all
Point-of-Sale Terminals
• Immediate Sales and
Inventory Information
• Extended to Customers and
Suppliers
• Interenterprise Information
Systems
• Stockless Inventory
Replenishment Systems
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-8
Value Chain & Strategic IT
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
Support Processes
• Administrative
Coordination and
Support Services
• Human Resources
Management
• Technology Development
• Procurement of Resources
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-9
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Value Chain & Strategic IT
Primary Business Processes
• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing and Sales
• Customer Service
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-10
Value Chain & Strategic IT
Real World Cases
KEY TERMS
BACK NEXT
SUPPORT
PROCESSES
The Value Chain of a Firm
Administrative Coordination & Support Services
Collaborative Workflow Intranet
Human Resources Management
Employee Benefits Intranet
Technology Development
Product Development Extranet with Partners
Procurement of Resources
E-Commerce Web Portals for Suppliers
PRIMARY BUSINESS
PROCESSES
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Inbound
Outbound Marketing
Operations
Logistics
Logistics & Sales
Automated
Just-in-Time
Warehousing
ComputerAided
Flexible
Manufacturing
Online
Point-of-Sale
And Order
Processing
Target
Marketing
Customer
Service
Customer
Relationship
Management
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-11
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Using IT for
Strategic Advantage
Strategic Uses of IT
• Major Competitive
Differentiator
• Use IT to Develop
Competitive Advantage
Real World Case 2Intec Engineering:
Click to go to
Case 2
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-12
Using IT for
Strategic Advantage
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Building a CustomerFocused Business
• Building Customer Value
• Fast Response to
Individual Customer
Needs
• Use of Internet, Intranets,
and Extranets
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-13
Using IT for
Strategic Advantage
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Hilton Hotels
• Hilton.Com Reservation
System
• Services Tailored
Automatically to Last Visit
• High Level of Personalization
• Deeper Personal Relationship
• Direct-to-Customer Business
Model Via the Web
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-14
Building Customer Value
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
Customer
Place Orders
Directly
Customer
Database by
Preferences &
Profitability
Internet
Web Personalization Builds
Loyalty
Intranets
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
Intranets
Extranets
Transaction
Database
Customer
Database
Employee
View of
Customer is
Complete
Customer
Orders
Through
Partners
Build a Web
Community of
Customers, etc.
Customers
Check Own
History
Customers
Linked With
Distribution
Intranets
Extranets
Internet
2-15
Reengineering Business Processes
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Business
Improvement
Level of Change Incremental
Business
Reengineering
Radical
Process
Change
Improved New
Version of Process
Brand New
Process
Starting Point
Existing Processes
Clean Slate
Frequency of
Change
One-time or
Continuous
Periodic One-time
Change
Time Required
Short
Narrow, Within
Functions
Long
Broad, CrossFunctional
Horizon
Past and Present
Future
Participation
Bottom-up
Top-down
Path to
Execution
Cultural
Cultural Structural
Typical Scope
Primary Enabler Statistical Control
Moderate
Risk
Copyright 2005, McGraw-Hill/Irwin, Inc.
Information Technology
High
2-16
Order Management Process
KEY TERMS
BACK NEXT
Business Processes
Real World Cases
C
O
N
F
I
G
U
R
A
T
I
O
N
P
R
O
P
O
S
A
L
Business
Functions
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
SALES
MANUFACTURING
FINANCE
C
O
M
M
I
T
M
E
N
T
C
R
E
D
I
T
C
H
E
C
K
I
N
G
D
E
L
I
V
E
R
Y
B
I
L
L
I
N
G
C
O
L
L
E
C
T
I
O
N
S
LOGISTICS
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-17
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Order Management Process
Johnson Controls:
Success with Reengineering
• Web-Based Reengineering
Project
• Fixing a Problem During
Engineering Costs 1/10 of
Correction at the Prototype
Stage
• Web-Based Collaboration Saved
80% on R&D Investments
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-18
Reengineering Order
Management
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
• Customer Relationships Using
Intranets and the Internet
• Supplier Managed Inventories Using
the Internet
• Cross-Functional ERP Software
Integrating Manufacturing,
Distribution, Finance, and Human
Resource Processes
• Customer-Access to Web Order Entry,
Status-Checking, Payment, and
Services
• Customer, Product, and Order Status
Databases accessed via Intranets and
Extranets by Employees and Suppliers
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-19
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Reengineering Order
Management
Agilent Technologies:
•
•
•
•
Failure in Reengineering
Rocky ERP Reengineering
Project
Lost $105 Million in Revenue
and $70 Million in Profits
Implementation Disruptions
More Extensive than Expected
ERP Changes Affect People,
Processes, Policies, and
Company Culture
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-20
Becoming an Agile
Company
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
1. Customers Perceive Products and
Services as Solutions to their
Individual Problems
2. Cooperates with Customers,
Suppliers, and Even Competitors
to Bring Products to Market
Quickly and at Lowest Cost
3. Organized to Thrive on
Uncertainty
4. Leverages the Impact of its People
and Knowledge
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-21
Becoming an Agile
Company
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Dell Computer –
Agility in Action
• Customer-Focused Company
• Champion of Mass
Customization
• Build-to-Order Business Model
• 25,000 on a Typical Day
• Tight Supply Chain
Management
• Rarely More than Two Hours
Worth of Parts Inventory
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-22
The Virtual Company
Interenterprise IS
Alliance Subcontractors
Alliance Major
Supplier
Boundary of a Firm
Customer
Response
and OrderFulfillment
Teams
Extranets
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Intranets
Alliance Major
Customer
Manufacturing
Teams
Real World Cases
KEY TERMS
BACK NEXT
END
Alliance Small
Suppliers
Cross-Functional
Teams
Copyright 2005, McGraw-Hill/Irwin, Inc.
Engineering
Teams
Alliance Complementary
Services
2-23
Virtual Company Strategies
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
• Share Infrastructure and Risk with
Alliance Partners
• Link Complementary Core
Competencies
• Reduce Concept-to-Cash Time
Through Sharing
• Increase Facilities and Market
Coverage
• Gain Access to New Markets and
Share Market or Customer Loyalty
• Migrate from Selling Products to
Selling Solutions
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-24
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Virtual Company Strategies
Cisco Systems: Virtual
Manufacturing Alliances
• Alliances Create a Virtual
Manufacturing Company
• Three Companies Involved in
the Alliance
• Provides and Agile Build-toOrder Capability in Fiercely
Competitive Industry
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-25
Knowledge Creating Company
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Learning Organizations
Knowledge Management
Explicit Knowledge
Knowledge Management
Systems (KMS)
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-26
Knowledge Management
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Enterprise
Intelligence
Information
Creation, Sharing,
and Management
Document Management
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-27
Knowledge Management
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Siemens AG: Global Knowledge
Management System
• Stop Employee Problem of
Knowledge Hoarding
• Created ShareNet Web Site
• Profitable Real-time
Worldwide Collaboration
Real World Case 3Yellow, JetBlue and
Gentex:
Copyright 2005, McGraw-Hill/Irwin, Inc.
Click to go to
Case 3
2-28
Summary
Strategic Uses of Information Technology
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
• Cut Costs
• Differentiate and Innovate
Products and Services
• Promote Growth
• Develop Alliances
• Lock in Customers & Suppliers
• Create Switching Costs
• Create Barriers to Entry
• Leverage IT Investment
• Develop Competitive Advantage
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-29
Summary
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Building a Customer-Focused Business
• Develop Business Value
• Make Customer Value the
Strategic Focus
• Use of Internet, Intranets,
and Extranets to Track and
Serve Customer Needs and
Interests
• Provide Services Tailored to
Specific Customer Needs
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-30
Summary
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Reengineering Business
Processes
• Enable Radical Changes to
Business Processes
• Improves Efficiency and
Effectiveness
• IT Supports Innovative
Changes in Work Flows, Job
Requirements, and
Organizational Structures in
a Company
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-31
Summary
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Becoming an Agile Company
• Rapid Response to Market
Changes
• Broad Product Ranges
• Short Model Lifetimes
• Heavy Dependence Upon IT
to Respond to Customer’s
Unique Situations
• Enhance Cost Effectiveness
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-32
Summary
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Creating a Virtual Company
• Use of Internet and IT
Provide Computing and
Communications Resources
• IT Enables Management of
a Network of People,
Knowledge, Financial, and
Physical Resources
• Takes Advantage of Rapidly
Changing Markets
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-33
Summary
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Building a Knowledge-Creating
Company
• Creates a Lasting
Competitive Advantage
• Innovative Use of
Organization Knowledge
• Supports Development and
Management of New
Organization Knowledge
• Integrates Into New
Products and Services
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-34
KEY TERMS
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Agile Competitor
Business Process Reengineering
Competitive Forces
Competitive Strategies
Creating Switching Costs
Customer-Focused e-business
Identifying e-business and ecommerce Strategies
Knowledge-Creating Company
Knowledge Management System
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-35
KEY TERMS
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Leveraging Investment in IT
Locking in Customers and
Suppliers
Raising Barriers to Entry
Strategic Information System
Strategic uses of Information
Technology
Strategic uses of Internet
Technologies
Total Quality Management
Value Chain
Virtual Company
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-36
Optional Case Studies
Real World Case 1
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
G.E., Dell, Intel, and Others: The
Competitive Advantage of I.T.
Click to go to
Case 1
Real World Case 2
Intec Engineering Company: The
Strategic Value of Knowledge
Information Systems
Click to go to
Case 2
Real World Case 3
Yellow, JetBlue, and Gentex:
Using I.T. for Competitive
Advantage
Click to go to
Case 3
Real World Case 4
CDW and Harrah’s Entertainment:
Developing Strategic CustomerLoyalty Systems
Copyright 2005, McGraw-Hill/Irwin, Inc.
Click to go to
Case 4
2-37
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Module II – Information Technologies
Computer Hardware
Real World Cases
Chapter 3
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-38
GE - Dell - Intel
and Others:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
The Competitive Advantage of
Information Technology
1. Do you agree with the
argument made by Nick
Carr to support his
position that IT no longer
gives companies a
competitive
advantage?
Why or why not?
Return to
Chapter 2
Return to
Cases Page
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-39
GE - Dell - Intel
and Others:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Discussion points would
include the following:
• IT costs now the same as other traditional costs
and as such do not have as great an impact on a
company’s strategic planning.
• If all companies in an industry invest in similar
levels of IT then IT cannot be a strategic
advantage to a given company.
• The IT infrastructure changes rapidly and
requires a continual investment in new IT and
impacts a company’s strategic planning.
• The IT infrastructure’s continual improvements
allow a company to adjust the mix of traditional
resources such as physical and human resources.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-40
GE - Dell - Intel
and Others:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
The Competitive Advantage of
Information Technology
2. Do you agree with the
argument made by the
business leaders in this
case in support of the
competitive advantage
that IT can provide to a
business? Why or why
not?
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-41
GE - Dell - Intel
and Others:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Discussion points would
include the following:
• The productivity lifeblood for a service oriented
company is IT and not plants and equipment.
• How it is used determines the competitive
advantage of the IT infrastructure.
• Some segments of the IT infrastructure are
reaching maturity and not much can be gained
by additional changes; however other areas
aren’t close to maturity and gains in competitive
advantage can still be made.
• All companies are not at the same level of IT
usage and you cannot generalize that increased
IT expenditures no longer have value to a
company.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-42
GE - Dell - Intel
and Others:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
The Competitive Advantage of
Information Technology
3. What are several ways that
IT could provide a
competitive advantage to a
business? Use some of the
companies mentioned in this
case as examples. Visit their
websites to gather more
information to help you
answer.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-43
GE - Dell - Intel
and Others:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
Ways to provide a competitive
advantage may include:
• Improve the customer relationship
management system.
• Create new uses for information to
remain competitive.
• Leveraging the knowledge-capital as an
integral part of strategic planning.
• Determining the best mix of knowledge,
software and hardware to be
highly competitive.
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-44
GE - Dell - Intel
and Others:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Ways to provide a competitive
advantage may include:
• Improve the customer relationship
management system.
• Create new uses for information to
remain competitive.
• Leveraging the knowledge-capital as an
integral part of strategic planning.
• Determining the best mix of knowledge,
software and hardware to be
Return to
Chapter 2
highly competitive.
• Improve the value chain for the
Return to
Cases Page
company.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-45
Intec Engineering:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
The Strategic Value of Knowledge
Management Systems
1. What is the potential value
for competitive advantage
that a business might gain
from knowledge
management systems? Why
might this value be difficult
to measure?
Return to
Chapter 2
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-46
Intec Engineering:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Discussion points would
include the following:
• Quickly building new knowledge into its
products and services.
• Facilitate organizational learning and
knowledge creation.
• Provide rapid feedback to knowledge
workers by encouraging behavior changes in
employees and improving business
performance.
• Help company become more innovative as an
agile provider of high-quality products and
customer services.
• Help company become a formidable
competitor in the marketplace.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-47
Intec Engineering:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
The Strategic Value of Knowledge
Management Systems
2. Do you approve of how
Intec Engineering is
measuring the value of
their KMS? Why or why
not? How else could the
strategic value of their
KMS be measured?
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-48
Intec Engineering:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Points to consider would include:
• The value of the KMS can be
quantified.
• The quality of the KMS is not
adequately measured.
• The focus on measuring the value of
the KMS permits Intec to consider
the value of their employees’ time.
• The real value is one of Intec being
able to expand its knowledge base
through questions being answered.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-49
Intec Engineering:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
The Strategic Value of Knowledge
Management Systems
3. Does Intec’s knowledge
management system
give them a competitive
advantage? Give several
examples from the case
to support your answer.
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-50
Intec Engineering:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
The Strategic Value of Knowledge
Management Systems
• The Beijing project with
different specifications
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-51
Intec Engineering:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
The Strategic Value of Knowledge
Management Systems
• The Beijing project with
different specifications
• The prospective customer in
Australia
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-52
Intec Engineering:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
The Strategic Value of Knowledge
Management Systems
• The Beijing project with
different specifications
• The prospective customer in
Australia
• Ability to reduce the time of
projects for clients so
daily revenue is
generated sooner by
the client
Return to
Chapter 2
Return to
Cases Page
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-53
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Using Information Technology
for Competitive Advantage
1. What strategies in the
use of IT for
competitive advantage
are being used by each
of the companies in this
case? Explain your
choices.
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-54
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Choices would include:
Progressive –
• Lower Costs
• Differentiate
• Innovate
• Promote Growth
• Leverage investment in IS
people, hardware, software,
databases, and networks from
operational uses into strategic
applications.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-55
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Choices would include:
Yellow –
• Lower Costs
• Innovate
• Leverage investment in IS
people, hardware, software,
databases, and networks
from operational uses into
strategic applications.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-56
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Choices would include:
JetBlue –
• Lower Costs
• Differentiate
• Innovate
• Develop interenterprise
information systems to
create switching costs.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-57
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Choices would include:
Gentex –
• Lower Costs
• Promote Growth
• Leverage investment in IS
people, hardware, software,
databases, and networks
from operational uses into
strategic applications.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-58
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Using Information Technology
for Competitive Advantage
2. Visit the website of one
these companies for more
information on their
business. What other
competitive strategies
could you recommend for
this company? Explain
your recommendations.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-59
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Choices would include:
Progressive –
•Develop Alliances
•Develop interenterprise systems
creating switching costs that
lock in customers.
•Include IT components in
services to make substitution of
competing services more
difficult.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-60
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Choices would include:
Yellow –
•Differentiate
•Develop alliances
•Develop interenterprise systems
creating switching costs that lock
in customers.
•Include IT components in
services to make substitution of
competing services more difficult.
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-61
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Choices would include:
JetBlue –
•Promote Growth
•Develop Alliances
•Include IT components in services to
make substitution of competing
services more difficult.
•Leverage investment in IS people,
hardware, software, databases, and
networks from operational uses into
strategic applications.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-62
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Choices would include:
Gentex –
•Innovate
•Develop Alliances
•Leverage investment in IS people,
hardware, software, databases, and
networks from operational uses into
strategic applications.
•Include IT components in services to
make substitution of competing
services more difficult.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-63
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Using Information Technology
for Competitive Advantage
3. How could other
companies apply the
competitive strategies being
used by the companies in
this case? Use examples
from both a large and small
business perspective to
illustrate your answer.
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-64
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Large business perspective –
• Maintain or increase investment in IT to
improve operating activities if they can be
improved.
• Use investment in IT to be innovative to
distinguish company from competition.
• IT can be used to develop alliances with
customers and suppliers.
• Leverage investment in IS people,
hardware, software, databases, and
networks from operational uses into
strategic applications.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-65
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Small business perspective –
• Maintain or increase investment in
IT to improve operating activities if
they can be improved.
• Use the investment in IT to establish
alliances for the first time.
• Use IT to differentiate your
company from the competition.
• Use IT to be innovative to
distinguish your company from the
competition.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-66
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Using Information Technology
for Competitive Advantage
• The use of IT can permit a larger
company to develop
interenterprise systems.
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-67
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Using Information Technology
for Competitive Advantage
• The use of IT can permit a larger
company to develop
interenterprise systems.
• IT can create barriers to restrict
competition from entering the
marketplace.
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-68
Progressive - Yellow
JetBlue and Gentex:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Using Information Technology
for Competitive Advantage
• The use of IT can permit a larger
company to develop
interenterprise systems.
• IT can create barriers to restrict
competition from entering the
marketplace.
• IT can be leveraged to advance the
company into more profitable uses
Return to
for strategic applications.
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-69
CDW and Harrah’s
Entertainment:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Developing Strategic CustomerLoyalty Systems
1. Does CDW’s customer
loyalty program give
them a competitive
advantage? Why or why
not?
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-70
CDW and Harrah’s
Entertainment:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Discussion points to consider:
• Loyalty program is a system that
differentiates CDW from its
competitors.
• CDW used IT in an innovative way
to move beyond a CRM package to a
system that measures customer
satisfaction and loyalty.
• The loyalty program provides CDW
with an alliance strategy with its
customers by locking in the
customers to the CDW system.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-71
CDW and Harrah’s
Entertainment:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Developing Strategic CustomerLoyalty Systems
2. What is the strategic
value of Harrah’s
approach to
determining and
rewarding customer
loyalty?
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-72
CDW and Harrah’s
Entertainment:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Discussion points to consider:
• Differentiate Harrah from its
competitors in terms of service to
different groups of customers.
• Promote growth through improved
targeting of multiple customer
groups on a real-time basis.
• Creating switching costs in multiple
customer groups to lock customers
in all groups into continuing to
have loyalty to Harrah’s.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-73
CDW and Harrah’s
Entertainment:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
Developing Strategic CustomerLoyalty Systems
3. What else could CDW
and Harrah’s do to truly
become customerfocused businesses?
Visit their websites to
help you suggest several
alternatives.
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-74
CDW and Harrah’s
Entertainment:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Suggestions could include:
CDW –
• Online competitive pricing or auction
features as products age.
• Web site redesign to improve
appearance.
• Better leverage IT so that every order
is filled as quickly as possible by
creating alliances with suppliers that
permit direct shipment to customers
to ensure best price and delivery for
loyal customers.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-75
CDW and Harrah’s
Entertainment:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Suggestions could include:
Harrah’s -
• Leverage IT investments by
expanding the analytical mining of
the data.
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-76
CDW and Harrah’s
Entertainment:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Suggestions could include:
Harrah’s -
• Leverage IT investments by
expanding the analytical mining of
the data.
• Differentiate Harrah’s from its
competitors by using the data
mining to expand products and
services offered to repeat customers.
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-77
CDW and Harrah’s
Entertainment:
Strategic
Advantage
Competitive
Strategy
Concepts
Strategic Uses of
Information
Technology
The Value Chain
Section II
Customer –
Focused Business
Reengineering
Processes
The Virtual Co.
Building a
KnowledgeCreating Co.
Real World Cases
KEY TERMS
BACK NEXT
END
Suggestions could include:
Harrah’s -
• Leverage IT investments by
expanding the analytical mining of
the data.
• Differentiate Harrah’s from its
competitors by using the data
mining to expand products and
services offered to repeat customers.
• Use IT to develop new products and
services that will attract new Cases
Return to
Page
customers to Harrah’s.
Copyright 2005, McGraw-Hill/Irwin, Inc.
2-78