Chapter 1 Questions Explain information technology’s role in business and describe how you measure success?Information technology (IT) refers to the "management and use of information using computer-based tools". It includes acquiring, processing, storing, and distributing information. Information technology is everywhere in businesses and understanding it provides great insight to any learning about business.
By implementing information technology, the organisation must undertake initiatives to achieve its broad general business goals. From this all departments can benefit from the implementation of effective information technology solutions
For example,within marketing departments: IT is the process associated with promoting the sale of goods or services.
Measuring for success: Key performance indicatior (KPI); measures that are tied to business drivers.
Efficiency IT metrics: Measures the performance of the IT system itself including throughput, speed, and avaliability. Gettinf the most from each resource.
Effectiveness IT metrics: Measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases. Setting the right goals and seeing they are accomplished.
List and describe each of the forces in Porter’s Five Forces Model? The five forces model helps to determine the relative attractiveness of an industry. It includes:- Buyer Power: : in the five forces model is high when buyers have many sellers to choose from and is low when their choices are few. One way to reduce buyer power is through loyalty power.
- Supplier Power: high when one supplier has a concentrated power over an industry. Buyers have few choices of whom to buy from and low when their choices are many. All parties involved in the procurement of a product or raw material are links in the supply chain.
- Threat of substitute products or service’s: is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.
- Threat of new entrants: is high when it is easy for new competitors to enter a market and low when there are significant barriers to entering a market.
- Rivalry among existing competitors: is high when competition is fierce in a market and low when competition is more complacent. The overall trend is towards increased competition in almost every industry..
Describe the relationship between business processes and value chains? A business process is a standardised set of activities that accomplish a specific task. The value chain approach views an organisation as a series of processes, each of which adds value to the product or service. This approach determines the success or failure rate of its chosen strategy. The relationship between the two is that both must provide unique value to the customer.Compare Porter’s three generic strategies?Cost leadership - Offers low cost that appeal to a large audience.Differentiation - Offers higher appearances and/or features to reach a large stratified audience.Focused Strategy - Describes the scope over which the company should compete based on cost leadership or differentiation.
Explain information technology’s role in business and describe how you measure success?
Information technology (IT) refers to the "management and use of information using computer-based tools". It includes acquiring, processing, storing, and distributing information. Information technology is everywhere in businesses and understanding it provides great insight to any learning about business.
By implementing information technology, the organisation must undertake initiatives to achieve its broad general business goals. From this all departments can benefit from the implementation of effective information technology solutions
For example,within marketing departments: IT is the process associated with promoting the sale of goods or services.
Measuring for success: Key performance indicatior (KPI); measures that are tied to business drivers.
Efficiency IT metrics: Measures the performance of the IT system itself including throughput, speed, and avaliability. Gettinf the most from each resource.
Effectiveness IT metrics: Measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases. Setting the right goals and seeing they are accomplished.
List and describe each of the forces in Porter’s Five Forces Model?
The five forces model helps to determine the relative attractiveness of an industry. It includes:
- Buyer Power: : in the five forces model is high when buyers have many sellers to choose from and is low when their choices are few. One way to reduce buyer power is through loyalty power.
- Supplier Power: high when one supplier has a concentrated power over an industry. Buyers have few choices of whom to buy from and low when their choices are many. All parties involved in the procurement of a product or raw material are links in the supply chain.
- Threat of substitute products or service’s: is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.
- Threat of new entrants: is high when it is easy for new competitors to enter a market and low when there are significant barriers to entering a market.
- Rivalry among existing competitors: is high when competition is fierce in a market and low when competition is more complacent. The overall trend is towards increased competition in almost every industry..
Describe the relationship between business processes and value chains?
A business process is a standardised set of activities that accomplish a specific task. The value chain approach views an organisation as a series of processes, each of which adds value to the product or service. This approach determines the success or failure rate of its chosen strategy. The relationship between the two is that both must provide unique value to the customer.
Compare Porter’s three generic strategies?
Cost leadership - Offers low cost that appeal to a large audience.
Differentiation - Offers higher appearances and/or features to reach a large stratified audience.
Focused Strategy - Describes the scope over which the company should compete based on cost leadership or differentiation.
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