IE4

• Organizational strategy is a high-level plan or set of actions that an organization develops and implements to achieve specific goals and objectives.
• Organizational strategy serves as a roadmap for how the organization will allocate its resources, make decisions, and compete in its industry or market.
• Organizational strategy typically involves a combination of long-term vision, goals, and plans that guide the organization in making choices and setting priorities.
• According to the definition of MIS, information systems exist to help organizations achieve their strategies.
• ABC INC. transitioned from a package delivery service to a comprehensive package-and-information delivery service with a focus on enhancing customer experience and operational efficiency.
• The system creates a competitive advantage through enhanced service, standout differentiation, new service, customer loyalty, higher entry barriers, and cost savings.
• Competitive strategy determines an organization’s goals and objectives, thus, competitive strategy ultimately determines every information system's structure, features, and functions.
• Organizational strategy determines information systems structure through Michael Porter's three different models.
• In the cost leader model, business activities need to be developed to provide essential functions at the lowest possible cost.
• In the differentiation model, a business might choose to develop more costly processes, but it would do so only if those processes provided benefits that outweighed their costs.
• The term "value chain" is used because it represents a series of activities that add value to a product or service as it moves through various stages from raw materials to the hands of the end customer.
• Two key concepts in value chain structure are value and margin.
• Value is the amount of money that a customer is willing to pay for a resource, product, or service.
• Margin is the difference between the value that an activity generates and the cost of the activity.
• Value chain linkages refer to the interactions and connections between different activities within a business.
• These linkages are vital because they enable various parts of the company to work together efficiently and effectively.
• Linkages ensure that one activity's output becomes another activity's input, creating a seamless flow of processes.
• Business processes generate value by creating products or services, enhancing products or services, differentiating products or services, and implementing processes.
• Competitive strategy determines the structure of information systems and the business processes.
• Operations value chains for bicycle rental companies include physical stores, multiple delivery options, low prices, affordable goods, pickup and delivery, online-focused, fast delivery, wide variety, convenience-focused, cashierless stores, and international reach.
• Amazon's competitive advantages include physical stores, multiple delivery options, low prices, affordable goods, pickup and delivery, online-focused, fast delivery, wide variety, convenience-focused, cashierless stores, and international reach.
• Apple's competitive advantages include unique design and aesthetics, ecosystem integration, app store, camera technology, brand loyalty, and first mover advantage.
• First mover advantage is a common misconception that doesn't guarantee an advantage over rivals and often detrimental or tend to cause harm.
• Second mover advantage is a strategy where a company follows a pioneering company and imitates its product or service.
• Competitive advantage via business processes is the strategic advantage gained by an organization through the effective design, execution, and continuous improvement of its internal operations and workflows.
• Competitive advantages via business processes can be gained by creating entry barriers, establishing alliances, reducing costs, and creating new products or services.
• An actual company uses information systems to create competitive advantages by offering multiple delivery options, low prices, affordable goods, pickup and delivery, online-focused, fast delivery, wide variety, convenience-focused, cashierless stores, and international reach.