Fluent Essays

The vast majority of the population associates Blockchain with cryptocurrency Bitcoin; however, there are many other uses of blockchain; such as Litecoin, Ether, and other currencies. In this discussion, please describe at least two cryptocurrencies with applicable examples. Discuss some similarities and differences. Lastly, discuss if you have any experience using any cryptocurrencies.At least one scholarly source should be used in the discussion thread.Review chapters 1 & 2 and ANSWER THE DISCUSSION PLEASE THE ATTAHMENTS FOR MATERIAL TEXTBOOK: Pearlson, K., Saunders, C., Galletta, D. (2020). Managing and Using Information Systems: A Strategic Approach, 7th Edition. Hoboken, NJ: John Wiley & Sons, Inc. ISBN: 978-1119560562 ch02.pptx ch01.ppt ch01_1_.pptx Unformatted Attachment Preview Managing and Using Information Systems: A Strategic Approach – Sixth Edition Keri Pearlson, Carol Saunders, and Dennis Galletta © Copyright 2016 John Wiley & Sons, Inc. Chapter 2 Strategic Use of Information Resources Zara • Chapter opening case • How often do customers visit Zara each year? • When do customers buy the designs? Why? • How many designs do they make each year? • Is this possible without IT? © 2016 John Wiley & Sons, Inc. 3 © 2016 John Wiley & Sons, Inc. 4 Information Resources as Strategic Tools What are information resources? IT assets and capabilities (not just assets!) © 2016 John Wiley & Sons, Inc. 5 IT Assets and Capabilities IT Assets • IT infrastructure IT Capabilities • Technical Skills • Hardware • Software and company apps • Network • Data • Website • Information Repository • Customer information • Employee information • Marketplace information • Vendor information • Proficiency in systems analysis • Programming and web design skills • Data analysis/data scientist skills • Network design and implementation skills • IT Management Skills • Business process knowledge • Ability to evaluate technology options • Project management skills • Envisioning innovative IT solutions • Relationship Skills • Spanning skills such as business-IT relationship management • External skills such as vendormanagement © 2016 John Wiley & Sons, Inc. 6 IT Assets • Infrastructure • Information, technology, people and processes available to perform business processes and tasks. (not just technology!) • Might even include resources not owned by the firm (e.g., eBay, Facebook, LinkedIn) • Information repository • Data captured, organized, and retrievable by the firm © 2016 John Wiley & Sons, Inc. 7 IT Capabilities • Technical Skills (designing, developing, implementing IS) • Management Skills (managing the IT function and IT projects) • Relationship Skills • Outside the organization (vendors, customers) • Within the organization (managers) © 2016 John Wiley & Sons, Inc. 8 Examples • Assets: • Proprietary technology (e.g., platforms) • Online community • Customer information • Capabilities: • Knowledge • Technical skills of IT staff • Friendly, helping nature of IT staff © 2016 John Wiley & Sons, Inc. 9 The Strategic Landscape • Managers must take multiple views of the strategic landscape, such as: • First view - Porter’s five competitive forces model. • Second view - Porter’s value chain. • Third view – focuses on the types of IS resources needed (Resource Based View). © 2016 John Wiley & Sons, Inc. 10 Five competitive forces with potential strategic use of information resources © 2016 John Wiley & Sons, Inc. 11 Application of five competitive forces model. Competitive Force IT Influence on Competitive Force Threat of New Entrants Can be lowered if there are barriers to entry. Sometimes IS can be used to create barriers to entry Bargaining Power of Buyers Can be high if it’s easy to switch. Switching costs are increased by giving buyers things they value in exchange such as lower costs, effort, or time; or useful information Bargaining Power of Suppliers Strongest when there are few firms to choose from, quality of inputs is crucial, or the volume of purchases is insignificant to the supplier Threat of Substitute Products Depends on buyers’ willingness to substitute and the level of switching costs buyer’s face Industrial Competitors Rivalry is high when it is expensive to leave an industry, the industry’s growth rate is declining, or products have lost differentiation © 2016 John Wiley & Sons, Inc. 12 Application of five competitive forces – Zara example Competitive Force IT Influence on Competitive Force Threat of New Entrants Zara supports its tightly knit group of designers, market specialists, production managers, and planners. These relationships take time. Rich customer information in its database would take time to develop. Bargaining Power of Buyers Recently, Zara has created a laser-created database of sizes for 10,000 “real” women volunteers. New products will be more likely to fit. Bargaining Power of Suppliers Computer-controlled cutting machine can cut 1,000 layers at a time. A large number of sewers are available. Threat of Substitute Products IT helps Zara offer extremely fashionable clothing that would last 10 wears. The result is trendy clothes at reasonable prices, making substitutes difficult Industrial Competitors Zara tracks breaking trends and customer preferences. The result is the highest sales per square foot in the industry without much advertising, low inventories, only 10\% of inventory unsold, new products from idea to shelves in 15 days, and manufacturing efficiencies © 2016 John Wiley & Sons, Inc. 13 Porter’s Value Chain Model • Value Chain model addresses the activities that create, deliver, and support a company’s product or service. • Two broad categories: • Primary activities – relate directly to the value created in a product or service. • Support activities – make it possible for the primary activities to exist and remain coordinated. • Competition can come from: • Lowering the cost to perform an activity, increasing profit. • Adding value to a product or service so buyers will be willing to pay more (again, increasing profit). © 2016 John Wiley & Sons, Inc. 14 Value chain of the firm. © 2016 John Wiley & Sons, Inc. 15 The Value System • The value chain model can be extended by linking many value chains into a value system. • Much of the advantage of supply chain management comes from understanding how information is used within each value chain within the larger system. © 2016 John Wiley & Sons, Inc. 16 The value system: interconnecting relationships between organizations. © 2016 John Wiley & Sons, Inc. 17 Zara and Primary Activities Primary Activity Zara’s Value Chain Inbound Logistics • IT-enabled JIT (just in time) strategy • Most dyes are purchased from Zara subsidiaries • Suppliers are located near production facilities Operations • • • • • Outbound Logistics • Clothes move on miles of conveyer belts • Clothes reach stores within 48 hours of the order Marketing and Sales • Limited inventory permits low percent of unsold goods (10\%) • Point-of-Sales systems linked to HQ • Managers provide information on customer needs daily via handheld computers Service • No focus on service; clothes only last 10 wears IT supports decisions about fabric, cut, and pricing Products are hung on hangers to avoid ironing at stores Price tags are already on the products 60\% of merchandise is produced in house Fabric is cut and dyed by robots in 23 highly automated factories © 2016 John Wiley & Sons, Inc. 18 Zara and Secondary Activities Secondary Activity Zara’s Value Chain Organization • Tightly-knit collaboration between designers, store managers, market specialists, production managers, production planners Human Resources • Managers are trained to understand customer needs and report to designers daily • Managers help Zara keep on cutting edge of fashion Technology • All primary activities are supported by integrated technology • Automated conveyers speed up logistics Purchasing • Vertical integration reduces the amount of purchasing needed © 2016 John Wiley & Sons, Inc. 19 Sustainability •Attaining competitive advantage is one thing • A firm often exploits rare and valuable resources •But sustaining competitive advantage is another • Resources must be difficult to transfer or relatively immobile © 2016 John Wiley & Sons, Inc. 20 Sustainability Framework Source: Piccoli & Ives © 2016 John Wiley & Sons, Inc. 21 But Isn’t Sustaining an Advantage a “Deadly Distraction?” • Some focus on sustaining would be useful • Some sustaining steps are not too difficult or expensive • It will help profitability while inventing more “disruptive” measures • It might save the firm if disruption measures fail • But some focus on disruption is also useful • Sometimes sustaining requires too much effort • Disruption can have a huge payoff © 2016 John Wiley & Sons, Inc. 22 The Resource Based View © 2016 John Wiley & Sons, Inc. 23 IT Assets at Zara © 2016 John Wiley & Sons, Inc. 24 IT Capabilities at Zara © 2016 John Wiley & Sons, Inc. 25 Social Capital as an IT Resource • Social capital: • the sum of the actual and potential resources embedded within, available through, and derived from the individual or firm’s network of relationships • Structural – Who is connected to whom • Relational – How the people interact (e.g., respect, friendship) • Cognitive – How the people think and the impact of a shared language © 2016 John Wiley & Sons, Inc. 26 Relationships with Other Firms • Strategic Alliances • Inter-organizational relationship that affords one or more company a strategic advantage • Example: Zynga and Facebook • Business ecosystems provide abundant examples • Co-opetition • Companies cooperate and compete at the same time • Example: Microsoft builds laptops but also supplies operating systems to other laptop makers © 2016 John Wiley & Sons, Inc. 27 Potential Risks • There are many potential risks that a firm faces when attempting to use IT to outpace their competition. • Executives should be aware of these risks in advance! • Awakening a sleeping giant – a large competitor with deeper pockets may be nudged into implementing IS with even better features (Schwab/eTrade; FedX/UPS) • Demonstrating bad timing – sometimes customers are not ready to use the technology designed to gain strategic advantage (Apple’s Newton, Shelternet) • Implementing IS poorly – information systems can fail because they are poorly implemented (Nike; Hershey) • Failing to deliver what users want – systems that don’t meet the firm’s target market likely to fail (Streamline.com groceries) • Running afoul of the law – Using IS strategically may promote litigation (Airline reservation systems) © 2016 John Wiley & Sons, Inc. 28 Co-Creating IT and Business Strategy • Not just alignment, but partnership • Example: FedEx • Are you paying only for the delivery? • Or are you also paying for information about the delivery? • Fedex would not be able to accomplish the delivery without the IS components. • Can you separate IT strategy from your business strategy? • The trend is towards integrating the two. © 2016 John Wiley & Sons, Inc. 29 Managing and Using Information Systems: A Strategic Approach – Sixth Edition Keri Pearlson, Carol Saunders, and Dennis Galletta © Copyright 2016 John Wiley & Sons, Inc. Chapter 1 The Information Systems Strategy Triangle Managing and Using Information Systems: A Strategic Approach by Keri Pearlson & Carol Saunders Introduction • • • • How knowledgeable must a general manager be about IS? What are the ramifications of an improperly implemented IS? Can IS be examined in isolation? Why or why not? What function does IS play in the business strategy of an organization? Copyright 2006 John Wiley & Sons, Inc. 2 Real World Example • • • • National Linen Service was facing poor earnings due to increased competition and a weak economy. They created a strategic systems department to increase competitiveness. A new system was implemented, BOSS, that deleted expired customer contracts hurting their bottom line. The unintended consequences of the system were not taken into account. Copyright 2006 John Wiley & Sons, Inc. 3 The Impact of IS • • • • The Information Systems Strategy Triangle is a simple framework for understanding the impact of IS on organizations. Successful firms have an overriding business strategy. This business strategy drives both Organizational and Information strategy. All decisions are driven by the firm’s business objectives. Copyright 2006 John Wiley & Sons, Inc. 4 Figure 1.1 The Information Systems Strategy Triangle Copyright 2006 John Wiley & Sons, Inc. 5 IS Strategy Triangle • • • • • Business Strategy drives all other strategies. Organizational and Information Strategy are then dependent upon the Business Strategy. Changes in any strategy requires changes in the others to maintain balance. IS Strategy is affected by the other strategies a firm uses. IS strategy always involves consequences. Copyright 2006 John Wiley & Sons, Inc. 6 BRIEF OVERVIEW OF BUSINESS STRATEGY FRAMEWORKS Think About IT • • • • What is a business strategy? Which factors influences a business strategy? How does a business change its strategy without losing balance within its organization and IS structure? Are there specific events that induce a business to change its strategies and what are they? Copyright 2006 John Wiley & Sons, Inc. 8 Generic Strategies Framework • • Michael Porter describes how businesses can build a sustainable competitive advantage. He identified three primary strategies for achieving competitive advantage: • • • Cost leadership – lowest-cost producer. Differentiation – product is unique. Focus – limited scope. Copyright 2006 John Wiley & Sons, Inc. 9 Figure 1.2 Three strategies for achieving competitive advantage. Copyright 2006 John Wiley & Sons, Inc. 10 Porter’s Competitive Advantage • • • • • Remember that a companies overall business strategy will drive all other strategies. Porter defined these competitive advantages to represent various business strategies found in the marketplace. Cost leadership strategy firms include Walmart, Suzuki, Overstock.com, etc. Differentiation strategy firms include Coca Cola, Progressive Insurance, Publix, etc. Focus strategy firms include the Ritz Carlton, Marriott, etc. Copyright 2006 John Wiley & Sons, Inc. 11 Differentiation Strategy Variants • • • Shareholder value model: create advantage through the use of knowledge and timing (Fruhan) Unlimited resources model: companies with a large resource can sustain losses more easily than ones with fewer resources (Chain Store vs Mom & Pop). The problem with Porter and these variants are that the rate of change is no longer easily managed and sustained. Copyright 2006 John Wiley & Sons, Inc. 12 Hypercompetition • • • D’Aveni developed a model that stated that sustainable competitive advantage could NOT be sustained. Called the “Hypercompetition and the New 7 Ss Framework”. Competitive advantage is rapidly erased by competition and the market. Copyright 2006 John Wiley & Sons, Inc. 13 • Assumptions of D’Avenis Hypercompetition and the New 7 Ss Framework model: • • • • Every advantage is eroded. Sustaining an advantage can be a deadly distraction. Goal of advantage should be disruption, not sustainability Initiatives are achieved through series of small steps. Copyright 2006 John Wiley & Sons, Inc. 14 Figure 1.3 Disruption and the new 7 Ss Copyright 2006 John Wiley & Sons, Inc. 15 D’Aveni’s new 7 Ss • • The 7 Ss are useful for determining different aspects of a business strategy and aligning them to make the organization competitive in the hypercompetitive arena. The 7 Ss are (see Figure 1.4): 1. Superior stakeholder satisfaction: maximize customer satisfaction by adding value strategically 2. Strategic soothsaying: use new knowledge to predict new windows of opportunity 3. Positioning for speed: prepare the org. to react as fast as possible 4. Positioning for surprise: surprise competitors 5. Shifting the rules of competition: serve customers in novel ways 6. Signaling strategic intent: communicate intensions in order to stall competitors 7. Simultaneous and sequential strategic thrusts: take steps to stun and confuse competitors in order to disrupt or block their efforts Copyright 2006 John Wiley & Sons, Inc. 16 Application of Hypercompetition • • • General Electric applied the Hypercompetition Model to its business units in the Destroy Your Business (DYB) project. GE recognized that if they didn’t understand and recognize their own weaknesses they could not remain competitive. Employees were tasked to determine ways to “destroy their business unit”. Once they have identified these areas of weakness they apply the Grow Your Business (GYB) strategy to find fresh ways to reach new customers and better serve existing customers. Copyright 2006 John Wiley & Sons, Inc. 17 IS Planning and Strategic Advantage Models • • • • • General Managers cannot afford to rely solely on IS personnel to make IS decisions. Business strategy drives IS decision making. Changes in IS potential should trigger business reassessments (i.e. the Internet). Information Systems Strategy Triangle shows the proper balance of strategies. The models are helpful in discussing the role of IS in building and sustaining competitive advantage. Copyright 2006 John Wiley & Sons, Inc. 18 Framework Key Idea Application to Information Systems Porter’s generic strategies framework Firms achieve competitive advantage through cost leadership, differentiation, or focus. Understanding which strategy is chosen by a firm is critical to choosing IS to complement that strategy. D’Aveni’s hypercompetition model Speed and aggressive moves and countermoves by a firm create competitive advantage The 7 Ss give the manager suggestions on what moves and countermoves to make. IS are critical to achieve the speed needed for these moves. Figure 1.5 Summary of key strategy frameworks. Copyright 2006 John Wiley & Sons, Inc. 19 BRIEF OVERVIEW OF ORGANIZATIONAL STRATEGIES Copyright 2006 John Wiley & Sons, Inc. 20 Organizational Strategy • • • • Organizational strategy includes the organization’s design as well as the choices it makes in its work processes. How will the company organize in order to achieve its goals and implement its business strategy? Business Diamond – simple framework for identifying crucial components of an organization’s plan (Figure 1.6) Managerial Levers – another framework for organizational design, states that successful execution of the firm’s organizational strategy is the best combination of organizational, control, and cultural variables (Figure 1.7). Copyright 2006 John Wiley & Sons, Inc. 21 Figure 1.6 The Business Diamond Copyright 2006 John Wiley & Sons, Inc. 22 Figure 1.7 Managerial Levers Copyright 2006 John Wiley & Sons, Inc. 23 Understanding Organization Strategy To understand organizational strategy we must answer the following questions: 1. What are the important structures and reporting relationships within the organization? 2. What are the characteristics, experiences, and skill levels of the people within the organization? 3. What are the key business processes? 4. What control systems are in place? 5. What is the culture of the organization? Copyright 2006 John Wiley & Sons, Inc. 24 Framework Key Idea Usefulness in IS Discussions Business Diamond There are 4 key components of an organization: business processes, values and beliefs, management control systems, and tasks and structures. Using IS in an organization will affect each of these components. Use this framework to identify where these impacts are likely to occur Managerial levers Organizational variables, control variables, and cultural variables are the levers managers can use to affect change in their organizations This is a more detailed model than the Business diamond and gives specific areas where IS can be used to manage the organization and to change it Figure 1.8 Summary of organizational strategy frameworks Copyright ... Purchase answer to see full attachment