1. CHAPTER 2
Organizational Strategy, Competitive Advantage, and Information Systems

2. CHAPTER OUTLINE
2.1 Business Processes 2.2 Business Process Reengineering and Business Process Management 2.3 Business Pressures, Organizational Responses, and Information Technology Support

3. CHAPTER OUTLINE (cont)
2.4 Competitive Advantage and Strategic Information Systems 2.5 Business – Information Technology Alignment

4. LEARNING OBJECTIVES
1. Understand the concept of business processes, and provide examples of business processes in the functional areas of an organization. 2.Differentiate between the terms business process reengineering and business process management. 3.List and provide examples of the three types of business pressures, and describe one IT response to each.

5. LEARNING OBJECTIVES (continued)
4. Identify the five competitive forces described by Porter, and explain how the Web impacts each one.
5.Describe the strategies that organizations typically adopt to counter the five competitive forces and achieve competitive advantage.
6.Define business – information technology alignment, and describe the characteristics of effective alignment.

6. 2.1 Business Processes Business Process
Cross-Functional Business Processes

7. 2.2 Business Process Reengineering and Business Process Management

8. 2.3 Business Pressures, Organizational Responses, and IT Support
Market Pressures
Technology Pressures
Societal Pressures

9. Market Pressures The Global Economy and Strong Competition
The Changing Nature of the Workforce
Powerful Customers

10. The Stages of Globalization (From Thomas Friedman in The World is Flat)
Globalization 1.0 (from 1492 to 1800)
Globalization 2.0 (from 1800 to 2000)
Globalization 3.0 (from 2000 to the present)

11. Thomas Friedman’s Ten Flatteners
Fall of the Berlin Wall
Netscape goes public
Development of work-flow software
Uploading
Outsourcing
Offshoring
Supply Chaining
Insourcing
Informing
The Steroids

12. The Steroids Computing Instant messaging and file sharing
Voice over Internet Protocol
Videoconferencing
Computer graphics
Wireless technologies

13. Technology Pressures Technological Innovation and Obsolescence
Information Overload

14. Societal/Political/Legal Pressures
Social Responsibility
Government Regulation and Deregulation
Protection Against Terrorist Attacks
Ethical Issues

15. Organizational Responses
Strategic Systems
Customer Focus
Make-to-Order and mass customization
E-business and E-commerce

16. 2.4 Competitive Advantage and Strategic Information Systems

17. Porter’s Competitive Forces Model

18. Porter’s Competitive Forces Model
Threat of entry of new competitors
Barriers to entry

19. Porter’s Competitive Forces Model
Bargaining power of suppliers
Bargaining power of buyers

20. Porter’s Competitive Forces Model
Threat of substitute products or services
Rivalry among firms in an industry

21. Porter’s Value Chain Model
Primary activities
Support activities

22. Strategies for Competitive Advantage
Cost Leadership
Differentiation
Innovation
Operational Effectiveness
Customer-orientation

23. Closing Case
The Problem
The Solution
The Results