Question.

1. Do you view this technology as a potential threat to traditional telephone companies? If so, what counter-strategies could traditional telephone companies adopt to prepare for this technology?

 Answer.

Yes, this technology as a potential threat to traditional telephone companies. Traditional telephone companies have to upgrade the something different to attract for their customers. For example, public phone still has an old design and the traditional telephone companies have to create a new design such as make it the touch screen, create many application in this public phone or put the Bluetooth. This change may be attract or interested from their customers. Then, traditional telephone company also can sale the top up cell phones in the public phone for easy the customers to buy and no need to bother go to the shop. Furthermore,  the traditional telephone companies can create the internet that the customers can use the public phone and surfing the internet. Maybe it is something different that the traditional telephone companies can make their customer satisfied when using the new product from traditional telephone companies. Conclusion, the traditional telephone companies can make a different or something new if they want to adopt for this technology to compete with others companies to attract the customers.

Question.

2. Using Portes's Five Forces describe the barriers to entry for this new technology.

Answer.

Question.

3. Which of Porter's three generic strategies is the new technology following?

Answer.

Focused strategy

• target to niche market.
• concentrates on either cost leadership or differentiation. 

Question.

4. Describe the value chain of the business of using cell phones as a payment method.

 Answer.

Value chain increase the infrastructure of phone companies and improve technology development are:

• Payment method can receive/store information from the consumers purchases and send that to the phone company.

• More people will engage in this type of payment method.

Competitive Advantage

Five Forces Model

Five Forces Model consist of:
1) Threat of new entrants
2) Bargaining power of customers
3) Treat of substitutes
4) Bargaining power of suppliers
5) Rivalry among competitors

Buyer Power

• High - when buyers have many choices of whom to buy.
• Low - when their choices are few.
• To reduce buyer power (and create competitive advantage), an organization must make it more attractive to buy from the company not from the competitors. 
• Best practices of IT-based. 

Supplier Power

• High - when buyers have a few choices of whom to buy from.
• Low - when their choices are many.

Threat of Substitute Products & Services

• High - when there are many alternatives to a product or service.
• Low - when there are many few alternatives from which to choose.
• Ideally, an organization would like to be on a market in which there are few substitutes of their product or services.

Threat of new entrants

• High - when it is easy for new competitors to enter a market.
• Low - when there are significant entry barriers to entering a market.
• Entry barriers is a product or service feature that customers have come to expect from organizations and must be offered by entering organization to compete and survive.
• Best practices of IT.

Rivalry among existence competitors

• High - when competition is fierce in a market.
• Low - when competition is more complacent.
• Best practices of IT.

The end. Thank you.

Chapter 1

CHAPTER 1
BUSINESS DRIVEN TECHNOLOGY

LEARNING OBJECTIVES

• Distinguish management information system (MIS) and information technology (IT)
• Describe the relationships among people, information technology and information.
• Identify four  different departments in a typical business and explain how technology helps them to work together.
• Distinguish the four different types of organizational information cultures and decide which culture applies to your school.

IT  IN YOUR DAILY LIFE

• Today, electronics that connect to one another are found everywhere – in the office, home, car, etc:

•  Bluetooth wireless technology eliminates many of the wires that clutter our offices, homes.

It's impact on business operations:

• Reducing cost
• Improving productivity
• Generating growth

INFORMATION TECHNOLOGY BASICS

Information Technology Basics (IT)

• is a field concerned with the use of technology in managing and process information
• covering many field that deal with the use of electronics computers and computers software to convert, store, protect, process, transmit and retrieve information securely.
• can be an important enabler of business success and innovation
• not useful unless the right people know how to use and manage it effectively.

Management Information System (MIS)

• is a business function just as marketing, finance, operations and human resources.
• is a general name for the business function and academic discipline covering the application of the people, technologies,and procedures – collectively called information systems - to solve business problems.

Important elements of MIS:

• Data, information and business intelligence
• IT resources
• IT cultures 

 

ORGANIZATIONAL  INFORMATION CULTURES

Information-Functional Culture
*employees use information as a means of exercising influence or power over others

Information-Sharing Culture

*employees across departments trust each other to use information (especially about problems and failures) to improve performance.

Information-Inquiring Culture

*employees across departments search for information’s to better understand the future and align themselves with current trends and new directions.

Information-Discovery Culture

*employees across departments are open to new insight about crises and radical changes and seek way to create competitive advantages.