MIS Chapter 3 example #28153

Strategy determines value chains, which determines business processes. Business processes determine requirements and functions of information systems.

Industry Structure → Competitive Strategy → Value Chain → Business Processes → Information Systems

•Competitive Forces 1) Competition from vendors who manufacture substitutes 2) Competition from new competitors 3) Competition from existing rivals •Bargaining power forces 4) bargaining power of suppliers 5) bargaining power of customers

Cost vs Differentiation and Industry-wide vs Focus

Inbound logistics, Operations/Manufacturing, Outbound Logistics, Sales and Marketing, Customer Service

Receiving, storing, disseminating inputs to the product

Transforming inputs into the final product

Collecting, storing, and physically distributing the product to buyers

Inducing buyers to purchase the product and providing a means for them to do so

Assisting customer's use of the product and thus maintaining and enhancing the product's value

Business processes implement value chains or portions of value chains. Each value chain is supported by one or more business process. The information systems are then implemented in order to make the operation run smoothly and productively

•Product Implementations: •Create a new product or service: Such as a eReader that works with all the books that bookstore sells. •Enhance products or services Make the environment more welcoming and interactive for customers to find products •Differentiate products or services Make textbooks the store sells new come with a dvd that has all the content on it. •Process Implementations: •Lock in customers and buyers Give them rewards for being loyal, like discounts on future book purchases •Lock in suppliers Give them a reason to sell cheaper to your store •Raise barriers to market entry Create excellent value for customers •Establish alliances Gain support from other competitors •Reduce costs Go green, and find ways to automate repetitive tasks

Maintain customer account data -IS collects information for ABC (adds value) - IS saves customers time by automatically filling in part of form (adds value for customers) Package and information delivery system - IS helps customers to select delivery address and generate shipping labels - What value does shipper get?

a product (like GPS in a car), or they can support a product .