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INFS5978 Accounting Information Systems Wk 2 S1 2014

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INFS 5978INFS 5978INFS 5978INFS 5978

INFS5978

Accounting Information Sys tems

School of Information Systems Technolog y and Management

Account ing InformationAccount ing Information

SystemsSystems

AISAIS

Account ing InformationAccount ing Information

SystemsSystems

AISAIS

Ch 1: COMPETING IN THE INFORMATION AGE

SECTION 1.1 INFORMATION SYSTEMS INBUSINESS

Business and the information age

The role of IT in business

Data, information, BI and knowledge

ITs impact on business operations

Systems thinking

Roles and responsibilities in IT

INFS 5978 AIS S1 2014 Wk 2 Slide 2Copyright 2013 McGraw-Hill Australia Pty Ltd

esources

Global IT

SECTION 1.2 BUSINESS STRATEGY Identifying competitive advantages

The Five Forces Model: evaluating industry attractiveness

The three generic strategies: choosing a business focus

Value chain analysis: executing business strategies


LEARNING OUTCOMES

1.1 Describe the information age and the differences

among data, information, business intelligence and

knowledge.

1.2 Identify the different departments in a company and


w y ey mus wor oge er o ac eve success.

1.3 Explain systems thinking and how management

information systems enable business communications.

1.4 Describe and compare the different roles and

responsibilities in information technology.


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BUSINESS AND THE INFORMATION AGE

Fact a confirmed or validated piece of data or

information


Information age the present time, when

infinite numbers of facts are widely available to

anyone who can use a computer


BUSINESS AND THE INFORMATION AGE

Examples of the power of business and

technology

Amazon not a technology company; primary

business focus was selling books, nowsells


everything!

Netflix not a technology company; primary

business focus is renting videos

Zappos not a technology company; primary

business focus is selling shoes


THE ROLE OF INFORMATIONTECHNOLOGY (IT) IN BUSINESS

Management Information Systems (MIS)

a general name for the business function and


people, technologies and procedures

(collectively called information systems [IS]) to

solve business problems


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DATA, INFORMATION, BUSINESS

INTELLIGENCE AND KNOWLEDGE

The core drivers of the information age


Information

Business intelligence

Knowledge


Data raw facts that describe the characteristics of an event or object



Information data converted into a meaningfuland useful context



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Business intelligence information

collected from multiple sources, such assuppliers, customers, competitors, partners

and industries, that analyses patterns, trends

and relationships for strategic decision



Knowledge includes the skills,experience and expertise, coupled with

information and intelligence, that creates a

persons intellectual resources


their ability to interpret and analyse

information


ITs IMPACT ON BUSINESS OPERATIONSChallenge: departmental companies

Common departments working independently



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Solution: management information systemsCommon departments working interdependently

SYSTEMS THINKING



Systems thinking a way of monitoring theentire system by viewing multiple inputs being

processed or transformed to produce outputs,

while continuously gathering feedback on each

part



ROLES AND RESPONSIBILITIES IN IT

Chief information of ficer (CIO) oversees all uses of IT

and ensures the strategic alignment of IT with business

goals and objectives

Chief technology off icer (CKO) responsible for ensuring


the speed, accuracy, availability and reliability of the

organisations IT

Chief security of ficer (CSO) responsible for ensuring the

security of IT systems, and for developing strategies and

IT safeguards against attacks from hackers and viruses


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ROLES AND RESPONSIBILITIES IN IT

continued

Chief privacy o fficer (CPO) responsible for

ensuring the ethical and legal use of information


Chief knowledge officer (CKO) responsible for

collecting, maintaining and distributing the

organisations knowledge


IT RESOURCES



GLOBAL IT



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GLOBAL IT continued

Global IT and business strategies


Cultural business challenges

Political business challenges

Geo-economic business challenges


SECTION 1.2

BUSINESS STRATEGY



SECTION 1.1 INFORMATION SYSTEMS INBUSINESS Business and the information age

The role of IT in business

Data, information, BI and knowledge

ITs impact on business operations

Systems thinking

Roles and responsibilities in IT


esources

Global IT

SECTION 1.2 BUSINESS STRATEGY Identifying competitive advantages

The Five Forces Model: evaluating industry attractiveness

The three generic strategies: choosing a business focus

Value chain analysis: executing business strategies


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LEARNING OUTCOMES

1.5 Explain why competitive advantages aretemporary.

1.6 Describe Porters Five Forces Model andex lain each of the five forces.


.

1.7 Compare Porters three generic strategies.

1.8 Demonstrate how a company can addvalue by using Porters value chainanalysis.


IDENTIFYING COMPETITIVE ADVANTAGES

Business str ategy a leadership plan that

achieves a specific set of goals or objectives,

such as:


eve opng a new pro uc or servce

entering a new market

increasing customer loyalty

attracting new customers

increasing sales


IDENTIFYING COMPETITIVE ADVANTAGEScontinued

Competitive advantage a product or service that

an organisations customers place a greater value

on than similar offerings from a competitor


First-mover advantage occurs when an

organisation can significantly affect its market

share by being first to market with a competitive

advantage


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Competitive i ntelligence the process of

gathering information about the competitive

environment to improve the companys ability to

IDENTIFYING COMPETITIVE ADVANTAGEScontinued


Competitive intelligence tools

Five Forces Model

three generic strategies

value chain analysis


THE FIVE FORCES MODEL

EVALUATING INDUSTRY ATTRACTIVENESS



BUYER POWER

Buyer power high when buyers have manychoices of whom to buy from and low whentheir choices are few


reluctant to switch to another product

Loyalty program rewards customers basedon the amount of business they do with aparticular organisation


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SUPPLIER POWER


Supplier power suppliers ability to influence the prices

they charge for supplies

Supply chain consists of all parties involved, directly orindirectly, in the procurement of a product or raw material


THREAT OF SUBSTITUTE

PRODUCTS OR SERVICES

Threat of substitu te products or services

high when there are many alternatives to a


product or service, and low when there are

few alternatives


THREAT OF NEW ENTRANTS

Threat of new entrants high when it is easy

for new competitors to enter a market, and low

when there are significant entry barriers


Entry barrier a feature of a product or

service that customers have come to expect

and that entering competitors must also offer

for survival


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RIVALRY AMONG EXISTING COMPETITORS

Rivalry among existing competitors high

when competition is fierce in a market, and

low when competitors are more complacent


Product differentiation occurs when a

company develops unique differences in its

products or services with the intent to

influence demand


USING THE FIVE FORCES MODEL TO ANALYSE

THE AIRLINE INDUSTRY

Perform a Porters Five Forces analysis of each

of the following for a company entering the

commercial airline industry:


Buyer power

Supplier power

Threat of substitute products/services

Threat of new entrants

Rivalry among competitors


THE 3 GENERIC STRATEGIES CHOOSING A BUSINESS FOCUS



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VALUE CHAIN ANALYSIS

EXECUTING BUSINESS STRATEGIESBusiness process a standardised set of

activities that accomplish a specific task,

such as a specific process


Value chain analysis views a firm as a

series of business processes that each add

value to the product or service


Primary value activities

Inbound logistics acquires raw materials & resources, &

distributes

Operations transforms raw materials or inputs into goods

VALUE CHAIN ANALYSIS EXECUTING

BUSINESS STRATEGIES continued


& services

Outbound logistics distributes goods & services to

customers

Marketing and sales promotes, prices & sells products

to customers

Service provides customer support


Support value activities

Firm infrastructure includes the company format or

departmental structures, environment and systems

VALUE CHAIN ANALYSIS EXECUTINGBUSINESS STRATEGIES continued


Human resource management provides employee

training, hiring and compensation

Technology development applies MIS to processes

to add value

Procurement purchases inputs such as raw materials,

resources, equipment and supplies


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Preparation for Week 3

Access Moodle

Readin for Wk 3 e-Business and Mobile


Business Baltzan Text Chapter 3

Prepare for Lab 2 Week 3 MYOB

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