BU415 Chapter Notes - Chapter 8: Life-Cycle Assessment, Value Chain, Customer Service
Document Summary
Chapter 8 value creation with information system. The emergence of influential strategic models focusing on competitive positioning and competitive advantage shone light on the value creation potential of it. Three analytical tools introduced / adapted to search for strategic information system opportunities at this time: Industry analysis: value chain analysis, customer service life cycle analysis. Industry analysis: grounded in the basic notion that different industries offer different potential for profitability. Suggests that industry differences can be analyzed a priori by managers using an analytical framework: known as the five forces framework, use to decide to enter an industry or forgo investment. Threat of new entrants: extent to which the industry is open to entry by new competitors / whether significant barriers to entry make it so that the existing firms need not worry about competition from outside. Identifying potential opportunities to improve profitability of the industry.
