COMPETING WITH INFORMATION TECHNOLOGY

Chapter 2

TUJUAN

1. Mengidentifikasi strategi kompetitif dasar dan menjelaskan bagaimana bisnis dapatmenggunakan IT untuk menghadapi kekuatan kompetitif yang dihadapinya.

2. Mengidentifikasi menggunakan beberapa strategi TI dan memberikan contoh bagaimana mereka memberikan keunggulan kompetitif untuk bisnis.

3. Memberikan contoh bagaimana rekayasa ulang proses bisnis sering melibatkan penggunaan strategi TI.

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TUJUAN (CONT’D)

4. Mengidentifikasi nilai bisnis menggunakan teknologi internet untuk menjadi pesaing tangkas atau membentuk perusahaan virtual.

5. Menjelaskan bagaimana pengetahuan sistem manajemen dapat membantu sebuah bisnis mendapatkan keuntungan strategis.

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CASE 1: FEDEX CORPORATION: INVESTASI TI UNTUK KEUNGGULAN KOMPETITIF FedEx dan perusahaan lain banyak yang tahu bahwa

manajemen yang tepat dan penggunaan teknologi informasi dapat memberikan keunggulan kompetitif.

TI mereka telah menghubungkan 39 hub di seluruh dunia dengan 677 pesawat terbang, lebih dari 90.000 kendaraan, dan lebih dari 200.000 karyawan mengirimkan 6 juta paket per hari di 220 negara.

FedEx menghabiskan lebih dari $1 milyar pada TI setiap tahun.

FedEx lebih memfokuskan pada pendapatan, teknologi kepuasan pelanggan daripada teknologi operasional.

FedEx cenderung sebagai innovator daripada pengikut pada aplikasi TI.

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PERTANYAAN:

1. Bagaimana strategi investasi TI dan fokus FedEx dan pesaing utamanya UPS berdeda? Perusahaan mana yang mempunyai strategi yang lebih baik? Mengapa?

2. Apakah strategi TI FedEx’s “move, communicate, and shoot” bagus untuk kompetisi persaingan dengan UPS? Mengapa? Apakah hal tersebut merupakan contoh yang bagus dari strategi kompetisi untuk tipe perusahaan yang lain?

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PERTANYAAN:

3. Carter CIO FedEx mengataan bahwa perusahaannya saat ini sedang dalam business of engineering time. Apakah hal tersebut gambaran yang business yang bagus untuk FedEx? Mengapa? Seberapa penting TI untuk pengertian bisnis dari FedEx? Gunakan contoh kasus untuk menggambarkan jawaban Anda.

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REAL WORLD INTERNET ACTIVITY

1. Gunakan Internet untuk membandingkan status FedEx, UPS, dan DHL dalam hal pendapatan, profitabilitas, paket dikirimkan, dan ukuran lain kesuksesan bisnis. Siapa yang memenangkan pertempuran kompetitif? Mengapa?

Simak apa yang pe-bisnis komentator dan analis keuangan melaporkan di Web untuk membantuAnda menjawab.

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REAL WORLD GROUP ACTIVITY

2. Gunakan Internet untuk menemukan lebih lanjut tentang bagaimana FedEx terlibat dalam pertempuran perang melawan teror, berdasarkan apa yang dilaporkan dalam kasus ini.

Misalnya, FedEx telah membuat beberapa pengungkapan kontroversial dari informasi pelanggan untuk badan-badan intelijen.

Diskusikan tanggung jawab perusahaan FedEx untuk membantu dalam perang melawan teror sekaligus melindungi privasi pelanggan, serta masalah lain yang ditemukan dalampenelitian Anda.

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STRATEGIC IT

Teknologi tidak lagi ketinggalan jaman dalam pembentukan strategi bisnis, tetapi sebegai pemicu dan pengendali.

IT dapat merubah cara bersaing dalam bisnis. Strategi system information adalah

Any kind of information system That uses IT to help an organization

Gain a competitive advantage Reduce a competitive disadvantage Or meet other strategic enterprise objectives

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COMPETITIVE FORCES AND STRATEGIES

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COMPETITIVE FORCES

Jika bisnis yang ingin berhasil harus mengembangkan strategi untuk melawan kekuatan-kekuatan : Persaingan dari pesaing dalam industri Ancaman pendatang baru ke dalam

industri dan pasarnya Ancaman yang ditimbulkan oleh produk

pengganti yang mungkin merebut pangsa pasar Kekuatan customer Kekuatan suppliers

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FIVE COMPETITIVE STRATEGIES

Cost Leadership Become low-cost producers Help suppliers or customers reduce costs Increase cost to competitors Example, Priceline uses online seller bidding so

buyer sets the price Differentiation Strategy

Develop ways to differentiate a firm’s products from its competitors

Can focus on particular segment or niche of market

Example, Moen uses online customer design12

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COMPETITIVE STRATEGIES (CONT.) Innovation Strategy

Find new ways of doing business Unique products or services Or unique markets Radical changes to business processes to alter the

fundamental structure of an industry Example, Amazon uses online full-service

customer systems Growth Strategy

Expand company’s capacity to produce Expand into global markets Diversify into new products or services Example, Wal-Mart uses merchandise ordering by

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COMPETITIVE STRATEGIES (CONT.)

Alliance Strategy Establish linkages and alliances with

Customers, suppliers, competitors, consultants and other companies

Includes mergers, acquisitions, joint ventures, virtual companies

Example, Wal-Mart uses automatic inventory replenishment by supplier

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USING THESE STRATEGIES

The strategies are not mutually exclusive Organizations use one, some or all

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USING IT FOR THESE STRATEGIES

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OTHER COMPETITIVE STRATEGIES

Lock in customers and suppliers And lock out competitors Deter them from switching to competitors Build in switching costs Make customers and suppliers dependent on the

use of innovative IS Barriers to entry

Discourage or delay other companies from entering market

Increase the technology or investment needed to enter

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OTHER COMPETITIVE STRATEGIES (CONT.) Include IT components in products

Makes substituting competing products more difficult

Leverage investment in IT Develop new products or services not possible

without IT

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CUSTOMER-FOCUSED BUSINESS

What is the business value in being customer-focused? Keep customers loyal Anticipate their future needs Respond to customer concerns Provide top-quality customer service

Focus on customer value Quality not price has become primary

determinant of value

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HOW CAN WE PROVIDE CUSTOMER VALUE? Track individual preferences Keep up with market trends Supply products, services and information

anytime, anywhere Provide customer services tailored to

individual needs Use Customer Relationship Management

(CRM) systems to focus on customer

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BUILDING CUSTOMER VALUE USING THE INTERNET

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VALUE CHAIN

View the firm as a chain of basic activities that add value to its products and services

Activities are either Primary processes directly related to

manufacturing or delivering products Support processes help support the day-to-day

running of the firm and indirectly contribute to products or services

Use the value chain to highlight where competitive strategies can best be applied to add the most value

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USING IS IN THE VALUE CHAIN

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CASE 2: GE ENERGY AND GE HEALTHCARE: USING IT TO CREATE STRATEGIC CUSTOMER RELATIONSHIPS

Networking and data storage & analysis technologies enable companies like GE to gain a competitive advantage by providing unique products and services to their customers.

This strategic investment in IT has a dramatic effect on the profitability of GE’s services.

The strategic business partnership results in a longer-term relationship than traditional methods.

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CASE STUDY QUESTIONS

1. What are the business benefits of using information technology to build strategic customer relationships for GE Energy and GE Healthcare? What are the business benefits for their customers?

2. What strategic uses of information technology discussed in this chapter and summarized in Figures 2.3 and 2.5 do you see implemented in this case? Explain the reasons for your choices.

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CASE STUDY QUESTIONS

3. How could other companies benefit from the use of IT to build strategic customer relationships? Provide or propose several examples of such uses. Explain how each benefits the business and its customers.

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REAL WORLD INTERNET ACTIVITY

1. Use the Internet to discover if GE Energy and GE Healthcare are expanding or strengthening their uses of IT to build strategic customer relationships. What benefits are they gaining for themselves and claiming for their customers?

2. Use the Internet to discover other companies whose products are networked, monitored, diagnosed, and managed at customers’ sites like the GE companies in this case. Alternatively, choose other companies you can research on the Internet and propose several ways they could implement and benefit from similar uses of information technology. 27

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REAL WORLD GROUP ACTIVITY

3. What business control and security concerns might a business customer have with the extent of its dependency on GE for the use and maintenance of assets that are vital to the operation of the business?

Discuss the rationale for these concerns and what measures both the business and GE could take to reduce any security threats and improve a customer’s secure control of the business assets it obtains from GE.

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BUSINESS PROCESS REENGINEERING

Called BPR or Reengineering Fundamental rethinking and radical redesign Of business processes To achieve improvements in cost, quality, speed

and service Potential payback high Risk of failure is also high

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HOW BPR DIFFERS FROM BUSINESS IMPROVEMENT

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A CROSS-FUNCTIONAL PROCESS

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REENGINEERING ORDER MANAGEMENT

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AGILITY

Agility is the ability of a company to prosper In a rapidly changing, continually fragmenting Global market for high-quality, high-

performance, customer-configured products and services

An agile company can make a profit with Broad product ranges Short model lifetimes Mass customization

Individual products in large volumes

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FOUR STRATEGIES FOR AGILITY

An agile company: Provides products as solutions to their

customers’ individual problems Cooperates with customers, suppliers and

competitors to bring products to market as quickly and cost-effectively as possible

Organizes so that it thrives on change and uncertainty

Leverages the impact of its people and the knowledge they possess

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HOW IT HELPS A COMPANY BE AGILE

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VIRTUAL COMPANY

A virtual company uses IT to link People, Organizations, Assets, And ideas

Creates interenterprise information systems to link customers, suppliers, subcontractors and

competitors

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A VIRTUAL COMPANY

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STRATEGIES OF VIRTUAL COMPANIES

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KNOWLEDGE CREATION

Knowledge-creating company or learning organization Consistently creates new business knowledge Disseminates it throughout the company And builds in the new knowledge into its

products and services

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TWO KINDS OF KNOWLEDGE

Explicit knowledge Data, documents and things written down or

stored on computers Tacit knowledge

The “how-to” knowledge which reside in workers’ minds

A knowledge-creating company makes such tacit knowledge available to others

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KNOWLEDGE ISSUES

What is the problem with organizational knowledge being tacit?

Why are incentives to share this knowledge needed?

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KNOWLEDGE MANAGEMENT TECHNIQUES

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Source: Adapted from Marc Rosenberg, e-Learning: Strategies for Delivering Knowledge in the Digital Age (New York: McGraw-Hill, 2001), p.70.

KNOWLEDGE MANAGEMENT SYSTEMS (KMS) KMS manage organizational learning and

business know-how Goal:

Help knowledge workers to create, organize, and make available knowledge

Whenever and wherever it’s needed in an organization

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CASE 3: GE, DELL, INTEL, GM, AND OTHERS: DEBATING THE COMPETITIVE ADVANTAGE OF IT

Does IT matter? No:

Nicholas Carr argues that IT is infrastructure like electricity

Too commonplace to get competitive advantage Yes:

IT is not just networks and computers The important part is the software and

information and how IT is used For Wal-Mart, GE, Dell, and many other

companies, IT is a huge advantage and will continue to be. 44

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CASE STUDY QUESTIONS

1. Do you agree with the argument made by Nicholas Carr to support his position that IT no longer gives companies a competitive advantage? Why or why not?

2. Do you agree with the argument made by the business leaders in this case in support of the competitive advantage that IT can provide to a business? Why or why not?

3. What are several ways that IT could provide a competitive advantage to a business? Use some of the companies mentioned in this case as examples. Visit their Web sites to gather more information to help you answer. 45

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REAL WORLD INTERNET ACTIVITY

1. Nicholas Carr’s article created a storm of debate that is still raging. Using the Internet, see if you can find Carr’s original article. Also, try to find some more opinions for and against Carr’s arguments beyond those provided in the case.

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REAL WORLD GROUP ACTIVITY

2. The core of Carr’s arguments has some significant implications for businesses. Discuss your opinion of Carr’s arguments. What are some of the implications of the argument that come to mind? How might they serve to change the way we use computers to support corporate strategy?

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