CHAPTER 3 : STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

BUSINESS PROCESS RE-ENGINEERING

QUESTION

How organization  use it to improve their business by using business process re-engineering.

ANSWER

 Business process re-engineering is the analysis and redesign of workflow within and between enterprise for example manager could discover the best process for performing work and re-engineering the process to optimized productivity.

 The role in business process re-engineering in IT (information technology) such as below.

• expert system, allowing generalists to perform specialist tasks.
• shared database, making information available at many place.
• wireless data communication and portable computers, allowing field personnel to work office independent

• automatic identification and tracking, allowing things to tell where they are instead of requiring to be found.

 This diagram show the process of BUSINESS RE-ENGINEERING 

CHAPTER TWO CASE : say "charge it" with your cell phone

QUESTIONS

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.

2. Using Poter's five forces describe the barriers to entry for this technology.

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

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

5. what types of regulatory issues might occur due to this type of technology?

ANSWER

1. Yes i agree this technology as a potential traditional companies. therefore the counter strategies could traditonal telephone companies adopt to prepare for this technology by using focused strategies. focused strategy normally target to a niche market they only focus one group of user in their product. for example, M mobile  in malaysia just focus to calling and massaging.its not have many application in the systems compared to others mobiles smartphone companies. M mobile should maintain it strategy to compete with others mobile companies because not all people like to using smartphone and perhaps they do not know how to use the application in the smartphone.

2. By using Porter's five forces the barriers to entry for this new technology is buyer power. Nowadays buyers has many choices to choose the best supplier. buyers should maintain their customer to make sure their customer loyal and use their product. for example, in blackberry smartphone using an application of IOS and samsung were using an application of adnroid. therefore the existence of the competitors cause barriers to them to improve and move aggressively to produce quality product well then, customer will choose the best and quality product. Next is supplier power, they need to diversify their product to maintain and complete with other supplier.for example acer using window and apple using mac. next threat of substitute product and service. when many technology product in market they want to compete with each other to be the best product. for example, if customer does not like one of the smartphone from samsung, they can change to HTC.
  Threat a new entrants is the Porter's five forces the barriers to entry for this new technology. they want to introduce and attract people to buy their product. for example Motorola. event Motorola product producing traditional mobile product to compete with other company. lastly is rivalry among existence competitors. they do not think about another advanced product. for example, product already have in market, they just focus to compete with each other and to produce the same product like touch screen smartphone.

3. the Porter's three generic strategies is the new technology following is differentiation will create competitive advantage by distinguish their product on one or more features to their customer. For example, an apple product, they use an application of Mac, the identity logo is an apple shape, the colors are colorful, the shape are interesting. it can be distinguish clearly with the others product like nokia.

4. The value chain of business of using cell phone as a payment method such smartphone like android. this diagram show the flow of using cell phone as a payment method.

5. the regulatory issues might occur due to this type of technology is fraud. for example, is using others people credit cards to make transaction

PORTERS 5 FORCES MODEL

   The diagram above shows that the five forces model that contain threat of new entrant, bargaining power of customer, threat of substitutes, bargaining power of suppliers and rivalry among competitors.

   Firstly, buyer power, buyer power is the ability of buyers to affect the price they pay for the items, meaning that customer are the buyer. buyer has many substitute product that they can choose and this is an advantages for customer to choose what the best product that they can buy it. so that for supplier they have to produce an attractive product to attract customer and customer will satisfied with their product for an example is telecommunication company, such as celcom and maxis. customer has rights to choose the best telecommunication company that give goods service to them.

  secondly is supplier power, its consist of all parties involved, directly or indirectly in obtaining raw material or a product. supplier power is the suppliers ability to influence the price they charge for supplies such as material, labor and services. for example is KFC stand for Kentucky fried chicken, the main raw material is chicken, they has to get supplier for them to supply the  fresh chicken, if supplier do not supply chicken their business will no operated. the supplier power will high at, when buyers have a few choices of whom to buy chicken too supply for them. besides, the low is when their choices are many, means that if to many supplier buyer has many choice to buy from the best supplier.

   next, threat of substitutes product and services it becomes high when there are many alternative to a product or services and low when  there are few alternatives from which to choose. for an example to travel in country there are many transportation that we can choose such as air plane, buses, train and others. besides in new era many product smartphone that customer substitutes. for example for a product is android such as samsung and for smartphone such as blackberry. 

   besides, threats of new entrants. when to many competitors produce the same product or enter the market and it will barriers to enter the market or to compete with others company. if there were has many same product in the market they will might faces difficulties to compete with others competitors. for example, nowadays to many smartphone in market such as blackberry, samsung, apples and others. this company will face difficulties to compete with each others. every product has their own speciality and customer will buy if the product are satisfied them or fulfil their criteria 

.

   Rivalry among existing competitors.there will high when competition is fierce in a market and low when competitors are more complacent. although competitions is always more intense in some industries that in others. the overall trends is toward increase competition in almost every industry. 

   

summary chapter 1

   asssalamualaikum, this blog has been created to shown to write the summaries about business driven technology in every chapters that we have already learn. IT is global, we used it in daily life such as at work, spent time by online face-booking, twitter, tagged and others. Now days we should now how to used an IT in daily life because in ERA 2000 all things in daily life we has using an IT.

 What is an IT in business, it’s provide an overview of how organizations operate in competitive environment and must continually define and redefine their business strategies to create competitive advantages. As a business student should recognize relationship or function between business and technology and understand information technology role in daily business activities and global business technology. The example for the IT technology in business or services activities is supply chain management, customer relationship management, enterprise resources planning, outsourcing, integration, e-business, and others.

   Why we should study information technology’s role in business? There is because information technology is everywhere in business. Understanding information technology provides great insight to anyone learning about business. Student if understand technology have an advantage in business, and gain a detailed understanding of information technology is important to all student. Next, how does information technology impact on business operations. Understanding information technology begins with gaining and understanding of how business function and IT role in creating inefficiencies and effectiveness towards the organization. For an organization to succeed every department or functional area must work together sharing common information.

   There show the common department in an organization function. Firstly is accounting department, finance department, human resources department, sales and marketing department, and operation and management information’s system department. In the departmental companies has the challenges for the example is finance department, finance department has to deal with strategic financial issues including money, banking, investment and assets.