【正文】 vis petitors? – How do we achieve petitive advantage over rivals in order to achieve or maximize profitability? 66 PORTER’S COMPETITIVE FORCES MODEL AND STRATEGIES ? Michael Porter’s petitive forces model, also called the fiveforces model, has been used to develop strategies for panies to identify their petitive edge. The model also demonstrates how IT can enhance petitiveness ? According to Porter’s petitive forces model, there are five major forces in an industry that affect the degree of petition and thus impact profit margins and ultimately profitability . These forces interact, so although you will read about them individually, it is their interaction that determines the industry’s profit potential. 67 ? For example, while profit margins for pizzerias may be small, the ease of entering that industry draws new entrants into it. Conversely, profit margins for delivery services may be large, but the cost of the IT to support the service is a huge barrier to entry into the market. 68 ? An explanation of the five industry (market) forces. 69 1. Threat of entry of new petitors. ? Industries with large profit margins attract more petitors (called entrants) into the market than do industries with small profit margins. It’s the same principle that applies to jobs—people are attracted to higherpaying jobs, provided that they can meet or acquire the criteria for that job. In order to gain market share, entrants typically sell at lower prices or offer some incentive. Those panies already in the industry may be forced to defend their market share by lowering prices, which reduces their profit margin . Thus, this threat puts downward pressure on profit margins by driving prices down. 70 ? This force also refers to the strength of the barriers to entry into an industry, which is how easy it is to enter an industry . The threat of entry is lower (less powerful) when existing panies have ISs that are difficult to duplicate or very expensive. ? Those ISs create barriers to entry that reduce the threat of entry. 71 2. Bargaining power of suppliers. ? Bargaining power is high where the supplier or brand is powerful。 ability to create a new market or product ? Threats: price wars or other fierce reaction by petitors。 motivated workforce ? Weaknesses: lack of expertise。 they can take actions. ? The software and procedure ponents are both sets of instructions: Software is instruction for hardware, and procedures are instructions for people. ? Finally, data is the bridge between the puter side on the left and the human side on the right. ? Now, when we automate a business process, we take work that people are doing by following procedures and move it so that puters will do that work, following instructions in the software. Thus, the process of automation is a process of moving work from the right side to the left. 36 ? A business is not alive, and it cannot act. It is the people within a business who sell, buy, design, produce, finance, market, account, and manage. So, information systems exist to help people who work in a business to achieve the goals and objectives of that business. 37 Business Processes Information Processing Activities Business Value Management Activities Supply Chain Management Enterprise Management Customer Management Knowledge Management Data Collection and Storage Transformation Into Business Systems Dissemination Planning Coordinating Controlling Modeling and Decision Making Firm Profitability and Strategic Position A Business Perspective on Information Systems Figure 15 38 Information systems are more than puters ORGANIZATIONS TECHNOLOGY MANAGEMENT INFORMATION SYSTEMS Figure 16 39 ? ORGANIZATIONS – Information systems are an integral part of anizations. The key elements of an anization are its people, structure, business processes, politics, and culture. – Organizations are posed of different levels and specialties. Experts are employed and trained for different functions. The major business functions performed by business anizations, consist of sales and marketing, manufacturing and production, finance and accounting, and human resources. 40 – An anization coordinates work through a structured hierarchy and through its business processes. The hierarchy arranges people in a pyramid structure of rising authority and responsibility. The upper levels of the hierarchy consist of managerial, professional, and technical employees, whereas the lower levels consist of operational personnel. 41 ? Most anizations’ business processes include formal rules that have been developed over a long time for acplishing tasks. These rules guide employees in a variety of procedures. Many business processes are incorporated into information systems. ? Organizations require many different kinds of skills and people. In addition to managers, knowledge workers design products or services and create new knowledge, and data workers process the anization’s paperwork. Production or service workers actually produce the anization’s products or services. ? Each anization has a unique culture, or fundamental set of assumptions, values, and ways of doing things, that has been accepted by most of its members. Parts of an anization’s culture can always be found embedded in its information systems. 42 ? MANAGEMENT – Management’s job is to make sense out of the many situations faced by anizations, make decisions, and formulate action plans to solve anizational problems. Managers allocate the human and financial resources to coordinate the work and achieve success. – But managers must do more than manage what already exists. They must also create new products and services. A substantial