Management Information Systems BPMN 6053

GROUP PRESENTATIONKOO SUET YAN (Jerry) 806665WONG HUI YEE (Chloe) 806667LEE CHIN YEW (Steven) 805542WONG KAM PHUN 805550

DATE : 20TH NOVEMBER 2011LECTURER: DR. ARIFFIN

Michael Porter’sFive Forces

Model

Porter’s Five Forces

Portfolio Analysis• Strategy at the time (1970s) was focused on

two dimensions of the portfolio grids:-

- Industry Attractiveness- Competitive Position

Business Strength Matrix

Business policy objective• Porter identified the relevant

variablesand the questions that the user must answer in order to develop

conclusions tailored to a particular industry and company

• Porter developed his elaborate framework for the structural analysis

of industry attractiveness within the framework of Business Policy.

Porters Five Forces• Threat of Entry• Bargaining Power of Suppliers• Bargaining Power of Buyers• Development of Substitute • Products or Services• Rivalry among Competitors

Barriers to Entry

• large capital requirements or the need to gain economies of scale quickly

• strong customer loyalty or strong brand preferences.

• lack of adequate distribution channels or access to raw materials

Power of Suppliers… high when

• A small number of dominant, highly concentrated suppliers exists.

• Few good substitute raw materials or suppliers are available.

• The cost of switching raw materials or suppliers is high.

Power of Buyers…high when

• Customers are concentrated, large or buy in volume .

• The products being purchased are standard or undifferentiated making it easy to switch to other suppliers.

• Customers’ purchases represent a major portion of the sellers’ total revenue.

Substitute products

competitive strength high when…• The relative price of substitute

products declines • Consumers’ switching costs decline.• Competitors plan to increase market

penetration or production capacity

Rivalry among competitors

intensity increases as:• The number of competitors increases

or they become equal in size.• Demand for the industry’s products

declines or industry growth slows.• Fixed costs or barriers to leaving the

industry are high.

Strategic Groups

• Firms that face similar threats or opportunities in an industry but which differ from the threats and opportunities faced by other sets of firms in the same industry (e.g., in the beverage industry: soft drinks group versus alcoholic beverages).

Strategic Groups• Rivalry generally is more

intense within strategic groups than between them because members of the same group focus on the same market segments with similar products, strategies and resources

Industry & Product Life Cycles

Conclusion

• As rivalry among competing firms intensifies, industry profits decline, in some cases to the point where an industry becomes inherently unattractive.

What is e-collaboration?• Is the context of supply chain integration that has

been interpreted in many different ways by both organisations and individuals.

• Seen as a new way doing business and a strategic plan which could fundamentally change the traditional business relationships

• Is using electronic technologies among different individuals to accomplish a common task.

What is e-collaboration?• Encompasses not only computer-mediated

collaborative work but also collaborative work that is supported by other types of technologies that do not fit most people’s definition of a “computer.”

• Major players like Microsoft and IBM offering e-collaboration products and services.

Example of E-Collaboration

• Information sharing between retailers and suppliers

• Access and sharing of data sources, tools, models, algorithms

• teleconferencing suite (Tools)• from cell phones to wireless personal digital

assistants (Tools)

Why do we need e-collaboration?• The flexibility and adaptability.• To increase the need of information visibility• Sharing along the supply chain• Efficient communication in a distributed network• Cost reduction• Increased potential opportunities on partnership

Conceptual Elements• The collaborative task• The e-collaboration technology• The individuals involved in the collaborative task• The mental schemas possessed by the individuals• The physical environment surrounding the

individuals• The social environment surrounding the

individuals

Conclusion• Has a promising future, in terms of both

academic research and commercial software development.

• Is likely to benefit from a critical assessment of how it can be applied to the benefit of individuals, organizations, and society.

Discuss IT and Strategies

• Refers to the technological side of an information system

• It includes the hardware, software, databases, networks, and other electronic devices.

• To describe an organization’s collection of information systems, their users, and the management that oversees them

Strategic information systems (SISs)

• Systems that support or shape a business unit’s competitive strategy

• is characterized by its ability to significantly change the manner in which business is conducted, in order to give the firm strategic advantage

A competitive strategy

• is a broad-based formula for how a business is going to compete, what its goals should be, and what plans and policies will be required to carry out those goals

• advantage is at the core of a firm’s success or failure• helps an organization gain a competitive advantage

through its contribution to the strategic goals of an organization and or its ability to significantly increase performance and productivity

A competitive strategy

• An SIS enables companies to gain competitive advantage and to benefit greatly at the expense of those that are subject to competitive disadvantage

• strategic information systems is aimed at increasing direct competition in an industry and visible to all

Information technology contribution

• Innovative applications• Competitive weapons• Changes in processes• Links with business partners• Cost reductions • Relationships with suppliers and customers• New products• Competitive intelligence