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On the other hand, a company that has a more flexible, responsive strategy, inventory turns might not be a priority, but inventory availability, shorter lead times, and customer service might be. As a result, such a company might want systems and technology that help perform quicker changeovers on manufacturing equipment, automated distribution management systems for orders to be processed more quickly, and tight integration with key customers to determine its ever-changing product and service requirements.
Companies utilizing this type of competitive strategy, such as Dell Computer, may use information systems to customize and personalize products to fit specifications of individual consumers.
Focusing on a market niche —An organization may use information systems to enable specific market focus and serve a narrow target market better than competitors. This strategy involves analyzing customer buying habits and preferences and making advertising pitches to smaller and smaller target markets.
Strengthening customer and supplier relationships —An organization may establish strong links to customers and suppliers while increasing switching costs and loyalty. Automakers use IS to facilitate direct access from suppliers to production schedules so that they can improve their forecasts and schedules. Many e-commerce sites keep track of user preferences for purchases and suggest titles to existing customers.
As in many other aspects of the business world, with competitive strategy there are multiple ways to do things.
For example, Dell strives for both low cost and a responsive, customized product, and it is very successful, with inventory turns of 90 times per year and a lead time for a customized computer of around 4 days. In addition, the Internet has had a huge impact on competition and has transformed many industries.
The Internet has reduced the costs of operating globally, enabling smaller businesses to compete on a global scale and helping to establish new products and services with faster time to market. It has also increased the bargaining power of customers and suppliers through transparency and scope and speed of communication.
Using IS to gain a competitive advantage requires coordination of people, process, and technology, which as will discuss throughout this book see Figure 1. What is the Capability Maturity Model? Hirotaka Takeuchi Takeuchi Hirotaka; 16 October is a Japanese professor and author specialized in marketing, competitive strategy, and knowledge management.
He is also considered to be one of the…. He is dedicated to helping…. Business Process Reengineering or BPR for short, is a methodology and technique with which organisations radically change their business processes with the aim of becoming more efficient and more modern. The Beyond Budgeting model aims to realise an organisation that is extremely adaptable like restructuring the entire organisational structure and implementing a new performance management process.
Marty Linsky is an American professor who contributed to the foundation of the concept of Adaptive Leadership. After reading you will understand the basics of this powerful training and development tool.
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