Ch 2 Notes

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Slippery Rock University of Pennsylvania *

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Information Systems

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Feb 20, 2024

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MIS-Chapter 2 Notes Chapter 2: Strategy and Information Systems Study Questions  How does organizational strategy determine information systems structure?  What five forces determine industry structure?  How does analysis of industry structure determine competitive strategy?  How does competitive strategy determine value chain structure?  How do business processes generate value?  How does competitive strategy determine business processes and the structure of information systems?  How do information systems provide competitive advantages?  2029? Figure 2-1 Organizational Strategy Determines Information Systems Five Forces Determine Industry Structure  Competitive Forces o Competition from vendors who manufacture substitutes. o Competition from new competitors o Competition from existing rivals  Bargaining Power Forces o Bargaining power of suppliers o Bargaining power of customers Figure 2-3 Examples of Five Forces

MIS-Chapter 2 Notes Figure 2-4 Five Forces at Falcon Security Figure 2-5 Porter’s Four Competitive Strategies

MIS-Chapter 2 Notes Ethics Guide-The Lure of Love Bots  The problem: 15% of the total subscribers were female, while 85% were male.  “The key to maintaining subscribers on this type of site is keeping them interested.”  To keep subscribers paying, “all we have to do it send them some messages from a dummy account.”  All interactions can be handled with AI bots.  Are the owner’s actions illegal? Unethical? Ethics Guide  This guide illustrates the uncomfortable position many managers face when they possess knowledge that cannot be communicated to others in the company: o As a manager, if an employee asks you directly about that information, you can either divulge it or lie. Which would you choose? What are the consequences of either choice? o In general, what are the consequences on the organization’s culture of moving from a low-cost strategy to a differentiation strategy? o Is there an alternative between inappropriately divulging information and lying? What is it? What disadvantages does that alternative have? o In general, what are the consequences on the organization’s culture of moving from a differentiation strategy to a low-cost strategy? o In general, what are the consequences on the organization’s culture of moving from a low-cost strategy to a differentiation strategy? Figure 2-6 Drone Manufacturer’s Value Chain

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