1. C H A P T E R BA 325 Competing with Information Technology Behzad Hosseini 2 Strategic and Competitive Opportunities

2. BA 325 Behzad Hosseini requires: innovation & creativity high-level support cooperation between: business & tech people (project team) interorganizational systems fresh perspective Competitive Advantage

3. BA 325 Behzad Hosseini Porter’s Three Frameworks for Competitive Advantage 1.The Five Forces Model 2.The Three Generic Strategies 3.The Value Chain

4. BA 325 Behzad Hosseini Five Forces Model Buyer Power: many suppliers Supplier Power: few suppliers –ex. OPEC Threat of substitutes or switching costs Threat of new entrants Rivalry among existing competitors

5. BA 325 Behzad Hosseini Three Generic Strategies cost leadership differentiation focused strategy –cost leadership or differentiation

6. BA 325 Behzad Hosseini Value Chain a series of processes in an organization some add value for customers some reduce value IT can improve these processes

7. BA 325 Behzad Hosseini E-Commerce: What’s New? Internet capabilities: mass customization/ personalization disintermediation global reach

8. BA 325 Behzad Hosseini Mass Customization and Personalization mass customization - custom CDs personalization - Amazon.com collaborative filtering

9. BA 325 Behzad Hosseini Disintermediation Intermediate players are bypassed

10. BA 325 Behzad Hosseini Global Reach the Internet is global EC can reach customers anywhere instant delivery of digital products