Explain information technology’s role in business:
IT is critical to all businesses, as it:
Reduces costs,
Improved productivity
Generates growth,
An enabler to support the business
Assists with efficiency
Improved productivity
Generates growth,
An enabler to support the business
Assists with efficiency
 | |
| How IT can benefit all parts of a business |
Describe how you measure success?
Efficiency: | Effectiveness |
Drucker 'Do things right' Focuses on the actual technology How it runs!? Measures the performance of the IT system, including Speed and availability, Information accuracy, Web traffic and Response time Benchmarks: Baseline values the system seeks to obtain Benchmarking: Continually measuring system results with benchmarks- and identifying improvements | Drucker: 'Do the right things' Focus on the business goals, strategies and objectives The impact IT has on business processes and activities Includes usability, customer satisfaction, conversion rates, financial etc Set the right goals to ensure these are achieved Mean time to repair: how long it takes to resolve an outrage First fix rate: The percentage of incidents that are correctly repaired the first time Change Success rate: % (& number for scope) of changes that are successfully deployed without creating an incident Server to System Administration Ratio: Number of servers that can be handled by an administrator (high performers= 1:125, medium/low performers= 1:25) |
List and describe each of the forces in Porter’s Five Forces Model:
5 Forces Model- evaluating business segments
Determines the relative attractiveness of an industry
Buyer Power:
High: when buyers have many choices of whom to buy from
Low: when their choices are few
Reduce buyer power through loyalty programs!!
Reward customers based on the amount of business they do within a particular organization
Technology helps- make business more accessible eg websites
Reward customers based on the amount of business they do within a particular organization
Technology helps- make business more accessible eg websites
Supplier Power
High: when one supplier has a concentrated power over an industry (many buyers- few choices to choose from)
Low: when there are many suppliers (buyers have a wide choice)
Supply chain: Power is often with supplier:
Threat of substitute products or services
High: when there are many alternatives eg butter, spread, magarine
Low: when there are few alternatives eg specific medicines, or specific medical equipment
Switching costs: costs (not always financial) that can make customers reluctant to switch eg switching cost of supplier with specific company or industry knowledge can be very high, Eg banks getting rid of fees
Switching costs: costs (not always financial) that can make customers reluctant to switch eg switching cost of supplier with specific company or industry knowledge can be very high, Eg banks getting rid of fees
Threat of new entrants
High: when it is easy for new entrants to enter a market eg online bike sales
Low: when there are significant entry barriers eg new telecommunications company
Entry barrier: a product or service that customers have come to expect and must be offered to compete and survive eg high entry cost for new car manufacturer
Entry barrier: a product or service that customers have come to expect and must be offered to compete and survive eg high entry cost for new car manufacturer
Rivalry amongst existing competitors:
High: when competition is fierce in a market
Low: when competition is more complacent
Describe the relationship between business processes and value chains
VALUE CHAINS ANALYSIS
Value creation is the result of effective business processes and efficient value chains
Business process:
A standardized set of activities that accomplish a specific task
A standardized set of activities that accomplish a specific task
Value chain:
Views an organization as a series of processes, each of which adds value to the product or service
Views an organization as a series of processes, each of which adds value to the product or service
Primary value activities
Acquire raw materials and manufacture, deliver, market, sell and provide after sales services
Acquire raw materials and manufacture, deliver, market, sell and provide after sales services
Support value activities:
Support the primary value activities
Support the primary value activities
 |
| Porters Value Chain Analysis |
Compare Porter’s three generic strategies
3 generic strategies creating a business focus:
- Follow one when entering a new market
o Broad cost leadership
Eg antivirus or itunes (not having to buy entire CD)
o Broad differentiation
Eg- apple- different to PC, or Amazon- buying books online, or buying Dell computers online
o Focused strategy
Eg Iphones and Apple Computers
 | |
| Example of use of Porters 3 generic strategies |
Information technology is very important for computer fields. It is almost search than create latest and advantage feature full product for users.
ReplyDeleteit support