Information Systems in the Organization

Frameworks

• Value chain
• Competitive forces
• Global business drivers
• Customer resource life cycle

Porter’s Value Chain

• Inbo-
• und

• Opera-
• tions

• Out-
• bound

• Mar-
• keting

• Service

• PRIMARY

• SUPPORT

• Administration
• Human Resources
• Technology Development
• Procurement

Porter’s Value Chain

• This framework can help understand how Information Technologies can support different ones of the nine activities to add value.

Competitive Forces

• New competitors
• Bargaining power of suppliers
• Bargaining power of customers
• Substitute products
• Rivalry from existing firms

Competitive Forces

• Responses to maintain industry excellence
• Cost Leadership
• Differentiation
• Focus

Global Business Drivers

• Joint resources
• Flexible operations
• Risk reduction
• Global products
• Quality
• Suppliers
• Corporate customers

Incremental vs Radical Change: TQM vs Reengineering

• Incremental:
• Focus on processes to eliminate, rather than correct problems.
• Radical:
• Focus on inputs and outputs to completely revise the methods

TQM

• Total Quality Management
• Goals
• Measures
• Root Causes
• Total quality management is a cultural change designed to take advantage of the desire of individual workers to do a better job.

TQM W. Edwards Deming & Joseph Juran

• A philosophy, not a business practice
• Incremental Process Change
• Control what you measure
• Empower employees
• Prevent rather than correct defects