Explain the concept “Every advantage is eroded”. Do you agree or disagree with this statement made by D’Aveni when information system is involved? Justify your answer.
“Every advantage is eroded” is a D’Aveni’s Hypercompetition and it is generally about competition and competitor’s advantage behavior. It describes the fact what happen to the advantage over the period of long time. According to it almost every advantage is useless at some point because it gets known by other people or other people try to use this advantage, and it becomes a disadvantage for you. As we know there is always competition in the market and everybody try to steal your ideas specially the competitor wants to get to the lead of you, and uses your advantage, and in this situation this advantage get duplicated which is not good for your business. Advantage is very important for a business because of this advantage the business is in the lead from others, and if this advantage no longer advantage then it becomes a deadly thing of expenditure of doing business. I agree that in information system there is also the advantage gets wear away, and business should keep looking for new ways to get new advantage over the period of time. For instance if you make a software then it’s an advantage for some period of time only, until the time your competitor develops a better software then you.
Some claim that no sustainable competitive advantages gained from IT other than the capability of the IT organization itself. Do you agree or disagree? Justify your position with specific examples.
Sustainable competitive advantages with the strategy create a value for the business which is reliable business. A sustainable competitive advantage requires information and resources of the business and the industry create basis of competitive advantages. There are two stages in getting sustainable competitive advantage firstly attain and secondly sustaining. I completely disagree and deem that IT gives gain rather than capacity of IT organization because IT is powerful mechanism of success which is implemented by many companies such as big industrial banks like Citi Bank, and Standard Chartered Bank. FedEx is a business which is utilizing IT to gain sustainable competitive advantages, and they prove to be very effective in using technology.
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Cisco Systems has a network of component suppliers, distributors, and contract manufacturers that are linked through Cisco’s extranet. When a customer orders a Cisco product at Cisco’s Web site, the order triggers contracts to manufacturers of printed circuit board assemblies when appropriate and alerts distributors and component suppliers. Cisco’s contract manufacturers are aware of the order because they can log on to Cisco’s extranet and link up with Cisco’s own manufacturing execution systems. What are the advantages of Cisco’s strategic alliances? Does this Cisco example demonstrate SCM? Why or why not?
In a business a value chain help focus on adding value alter of its partners and value is created using external oriented relationship skills. The extranet of Cisco is a method to communicate between Cisco and its partner which give them both (companies) opportunities to lead in the market. Usually a strategic alliances gives a strategic advantage, and IT can help produce the product develop by alliance so the coordination between partners is facilitated. There are several advantages of Cisco strategic alliance which are similar like of Delta with e-Travel. Cisco uses a SCM which is IT facilitated alliances, and based upon reliance and admiration. There is harmony between different manufactures, supplier and Cisco in regard to function of SCM.
Mary Kay, Inc. sells facial skin care products and cosmetics around the globe. The business model is to provide one-to-one, highly personalized service. More than 500,000 Independent Beauty consultants (IBCs) sell in 29 markets worldwide. Each IBC runs products for sale to those clients. Recently the IBCs were offered support through an e-commerce system with two major components: mymk.com and Mary Kay InTouch. Mymk.com allows IBCs to create instant online site where customers can shop anytime directly with their personal IBC. Mary Kay InTouch streamlines the ordering process by automatically calculating discounts, detecting promotion eligibility, allowing the IBCs to access up-to-date product catalogs, and providing a faster way to transact business with the company.
How would the organizational strategy need to change to respond to Mary Kay’s new business strategy? Do you see any alignment or misalignment between the Information Systems Strategy and the business strategy? Justify.
There are many model of organizational strategy and one of them is business diamond which includes four component of organization which drives any strategy a business is seeking. Modern organizational designs make extreme use of IT and explore how IT can facilitate in management control at the organizational or individual level. I see clear aliment of information system strategy and business strategy in Mary Kay because of introduction of mymk.com and Mary Kay InTouch. Both these services show that strategy of Mary Kay is according to its goal by achieving good business using good technology.
What changes would you suggest Mary Kay, Inc. managers make in their management systems in order to realize the intended benefits of the new systems? Specifically, what types of changes would you expect to make in the evaluation system, reward systems, and feedback system? Explain.
In business information system are fundamental organization design component for vital endurance of the business. Usually the organizational strategy involves design, culture, and organization must have organizational knowledge of what information system can do and how it affects the business. The evaluation system should be able to flow in the organization and there should be careful decision taking and protection of right in reward systems. Information system effects managerial control so feedback requires planning and analyzing so that customers can benefit from the product you are producing.
How can IT alter an individual’s work? Why might a worker resist the alteration of his or her work due to new technology? How can a manager insure that the impact this alteration is positive rather than negative? Discuss.
There are new trends in the organization such as virtual organizations which can make an individual work from anywhere and anytime. Individual nowadays use many technologies such as e-mail, instant messaging, intranet, web logs, which can alter the individual work in immense level. IT can also create effect by use of employee supervision, evaluation so IT can alter individual work. A worker might resist the alteration of his or her work due to new technology because he or she can be continuously monitored by use of IT and their performance can be increased or decreased by use of IT. Manager can insure that impact of alteration is positive by bringing diversity in technology, communication and team members. Manager can also make positive attitude about technology and motivate the workers to use new technology in their daily life.
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