Strategic Information Technology Systems
Identify the value chain and competitive forces in Porter’s model. Based on “The Mini-cases: 5 companies, 5 strategies, 5 transformations” article and cases, what effect did the value chain and competitive forces have on those organizations? What strategies did those organizations undergo to respond to sustainability?
In this Case, you will investigate the effects of IT on competition and value chain activities. A value chain approach is an effective way for management to search for IT opportunities. A value chain is a series of interdependent activities designed to produce services or products in an organization. IT offers incentives to improve tasks and functions simply by altering activities, which can then provide efficiencies. Conversely, IT mismanagement can significantly and negatively affect customers, suppliers, and the organization as a whole.
Value chains play an important role in organizations’ efforts to attain competitive advantage. There are two broad types of activities—primary and support. IT can expedite the primary activities including procurement of materials and goods, and can influence how products and services are delivered and marketed. Automation has simplified operations and replaced routine tasks. Marketing and sales make use of the latest technologies and mobile devices to respond to customer demands. Similarly, the support activities in the value chain help ensure policies and procedures that better sustain elements such as the corporate infrastructure, human resources, and IT departments. In short, support activities buffer primary activities which are focused on to customers, suppliers, and the conversion of raw materials into finished products
There are five required readings and a video for this Case:
NetMBA. (2011). The value chain. Business Knowledge Center. Retrieved from http://www.netmba.com/strategy/value-chain/
Porter, M. E. (2008, January). The five competitive forces that shape strategy. Harvard Business Review, 79-93. Available in the Trident Online Library.
Harvard Business Publishing. (2008). Interview with Michael Porter: The five competitive forces that shape strategy. [Video file]. Retrieve from http://www.youtube.com/watch?v=mYF2_FBCvXw
Berns, M., Townsend, A., Khajat, Z., Bagopal, B., Reeves, M., et al. (2009). The Mini-cases: 5 companies, 5 strategies, 5 transformations. The Magazine MIT Sloan Management Review Special Report. Retrieved from http://files.meetup.com/1325336/MITSloan%20Mgmt%20Review%20The%20Biz%20of%20Sustainability.pdf