ISYS 210 Lecture Notes - Lecture 3: Information System, Switching Barriers, Cash Register

• School: Texas A&M University
• Department: Mgmt Info Systems
• Course: ISYS 210
• Professor: Wanda Curtsinger

Document Summary

Illustrates digital technology"s role in gaining and maintaining a competitive advantage. Illustrates how difficult it is to sustain competitive advantage, especially in an arena of quickly changing technologies. Five competitive forces shape fate of firm. Competitors in market space continuously devise new products, new efficiencies, switching costs. Some industries have low barriers to entry. Substitutes customers can purchase if your prices too high. Can customers force firm and competitors to compete on price alone (transparent marketplace) The more suppliers a firm has, the greater control it can exercise over suppliers. Information system strategies for dealing with competitive forces. Basic strategy: align it with business objectives. 75% of businesses fail to align their it with their business objectives, leading to lower profitability. Break strategic goals into concrete activities and processes. Determine how it can help achieve business goals. Use information systems to achieve the lowest operational costs and the lowest prices.