tm -1 the next economy jason c. h. chen, ph.d. professor of mis gonzaga university spokane, wa...
TRANSCRIPT
TM -1
The Next Economy
Jason C. H. Chen, Ph.D.
Professor of MIS
Gonzaga University
Spokane, WA 99258, USA
TM -2
The Economies
• Price• Place• Product• Promotion
• Relationship• Retrenchment• Relevancy• Reward
OLD Economy (4P) Next Economy (4R)
Information
MIS/IS/IT:Internet/Data mining/CRM…
TM -3
The Economies
• Price• Place• Product• Promotion
• Relationship• Retrenchment• Relevancy• Reward
OLD Economy Next Economy
MIS/IS/IT/ICT:Internet/ Data mining/CRM …
• Customer• Cost• Convenience• Communication
New Economy
Information Knowledge
(4P’s) (4C’s) (4R’s)
TM -4
Questions from Customers …Your customer asks:
We are promoting our products, tell me …
Post Economy (2001-2008)
Solution …
NEW Economy (1994-2000)
How can INTERNET save (help) us?
Where are our customers?
How can we contact them?
TM -5
The Evolutions of Economy
OLD Economy
Post Economy(2001-2008)
NEW Economy
(1994-2000)
Product/Service Information/Internet
Knowledge
Market share Time to market/Site visitation
Wallet share/Profit
Economies of Scale/Efficiency
TechnologyImprovement
Retaining customers/Win service
Based on
Measurementof success
Focus
N
TM -6
Four Important Entities for a Successful Enterprise
• Capital （资本）• Technical （技术）• Human （人才）• Information （信息）
TM -7
Organizational Ware
OrganizationalWare
HW
SW
Strategy
Structure
Culture
N
TM -8
Value proposition1. Business model
2. Core competencies
competition structure/culture
Strategic intent
Finance
Managem
ent Process
H/R
Technology
… Strategy
• Positioning on product/market
• Differentiation/choice of competitive advantage• Competitive posture
Industry characteristics，Market growth，
Demand characteristics，Barrier of entry， etc.
fulfill
IT Role?N
Consistent
Essentials for a Successful Enterprise
Analysis(Porter, SWOT)
Corporate strategy
Business strategy
Functional strategy
Business landscapeInternal/External
future positioning
Positioning
3. Execution (processes?)
TM -9
Major Issues for the Next Society
1. Internationalization
2. Technology
3. Population
4I + 1K
InternationalizationIntegrationInnovationInformation andKnowledge
TM -10
Three Themes …
Three themes are of interest/important to the business professionals:
1. Enterprise systems
2. E-Business
3. Information Technology
Software packages designed to provide complete integration of an organization’s business processing systems and all related data.
The application of electronic networks (including the Internet) to undertake business processes between organizations and either individuals or other organizations.
It encompasses any hardware, software, or communication technology that might be adopted by an organization to support or control a business process, enable management decisions, or provide a competitive advantage.
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PORTER’S FIVE COMPETITIVE FORCES MODEL
THE FIRMTRADITIONAL COMPETITORS
NEW MARKET ENTRANTS
SUPPLIERS
SUBSTITUTE PRODUCTS & SERVICES
CUSTOMERS
Threats
Bargaining power
NDr. Chen, The Trends of the Information Systems Technology TM -11
Internal Forces1.customer focus2.communication3.core competencies4.complexity5.quality
TM -12
Competitive Force ModelNew entrants
Suppliers Buyers
Substitutes
Industry competitors
Intensity of rivalry
Bargaining powerof suppliers
Bargaining powerof buyers
Threat of substitutes
Threat of new entrants
Entry barriersEconomies of scaleProprietary product differencesBrand identitySwitching costCapital requirementsAccess to distributionGovernment policyExpected retaliation
Determinants of supplier powerImportance of volume to supplierPresence of substitute inputsSwitching cost ...
Determinants of buyer powerBargaining Leverage Price SensitivityBuyer volume Brand identitySwitching cost Product differences Buyer information Buyer profits ….
Determinants of substitution threatRelative price/performance of substitutesSwitching cost…
Rivalry DeterminantsIndustry growthBrand identitySwitching cost….
(Source: Porter, 1980)N