Management Information Systems Tutorial 3

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Management Information Systems Tutorial 3 (Week 4) 1. Identify and describe the features of organizations that help explain differences in organizations’ use of information systems. One feature of organizations is routines and business processes. Routines, sometimes called standard operating procedures, are precise rules, procedures and practices that have been developed to cope with virtually all expected situations. Business processes are collections of such routines. A business firm in turn is a collection of business processes. New information system applications require that individual routines and business processes change to achieve high levels of organizational performance. Another feature of organizations is organizational…show more content…
Sometimes, entire industries are put out of business. In other cases, disruptive technologies simply extend the market, usually with less functionality and much less cost than existing products. Eventually they turn into low-cost competitors for whatever was sold before. Some organizations are able to create these technologies and ride the wave to profits, others learn quickly and adapt their business, and others are obliterated because their products, services and business models become obsolete. There are also cases where no firms benefit and all the gains go to customers. 3. Define Porter’s competitive forces model and explain how it works. Michael Porter’s competitive forces model provides a general view of a firm, its competitors and environment. Five competitive forces shape the fate of a firm – traditional competitors, new market entrants, substitute products and services, customers and suppliers. In traditional competition, all firms share market space with competitors who are continuously devising new products, services, efficiencies and switching costs. New companies are always entering the marketplace. Some industries have high barriers to entry such as the computer chip business. New companies have new equipment, younger workers but little brand recognition. Substitute products and services are substitutes that a firm’s customers might use if their prices become too

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