Information systems and organisational issues

Outline1. Organizations and Information Systems2. How Information Systems Impact Organizations andBusiness Firms3. Using Information Systems to AchieveCompetitive AdvantageUsing Information Systems to AchieveCompetitive Advantage•Why do some firms become leaders in their industry?• Michael Porter’s competitive forces model–Provides general view of firm, its competitors, andenvironment–Five competitive forces shape fate of firm1. Traditional competitors2. New market entrants3. Substitute products and services4. Customers5. Suppliers3-3334 © Prentice Hall 2011 3-34Porter’s Competitive Forces ModelPorter’s Competitive Forces Model (cont.)FIGURE 3-10In Porter’s competitive forces model, the strategic position of the firm and itsstrategies are determined not only by competition with its traditional directcompetitors but also by four other forces in the industry’s environment: newmarket entrants, substitute products, customers, and suppliers.•Traditional competitors–All firms share market space with competitors whoare continuously devising new products, services,efficiencies, switching costs•New market entrants–Some industries have high barriers to entry, e.g.computer chip business–New companies have new equipment, youngerworkers, but little brand recognition35 © Prentice Hall 2011 3-3536 © Prentice Hall 2011 3-36