Info systems Test 10 24 2011 Difference between variable and parameter Solver variables are the ones you can change Parameters constraints TPS MIS ESS DSS level of management DSS at top DSS what if questions use internal and external information Registration system TPS system collects data MIS data DSS if zara wants to open in brazil management uses ESS DSS because its lont term non routine DSS has less uncertainty more of what if analysis measure firms comeptitve advantage Sustainable competitive advantage Accounting price turning price stock price proxy Rare valuable hard to substutibe imperfectly imitable industry o level of rivalry o power of buyers What is the basic difference of value chain analysis and 5 force model 5 forces looks at industry and how competitive it is within its o suppliers o threat of new entrants o threat of subst products value chain focuses internally on operation of firm o find areas where you can invest in IT to gain a competitive adv o 5 primary integrated directly into product o 4 support support the addition of value to product or service 5 forces model still applies in the digital age Could be true or false Not developed for digital age more of an 80 s model This is why we have value chain analysis and then value web NEW MODEL IS VALUE WEB o Collection of firms that coordinate value chains using IT to produce a product collectively 1st mover is a competitive advantage Amazon invested a ton of in R and D to keep advantage 1st mover does not give u a sustainable competitive advantage fast followers like apple would gain a sustainable comp adv Switching costs are costs of switching from one product or service to another lock customers in with customer experience and relations to increase switching costs gain loyalty because it becomes inconvenient for them to switch 5 Technology Drivers Moores Law computing power doubles every 18 months Mobile Technology MetCafe Network Effect the number of people increases exponentially as a function of network Law of Mass Digital Storage amount of data stored doubles every year Declining Communication Costs Main Components of IT infrastructure Long Tail unlimited amount of inventory that a company can have Example Netflix is very good Collaborative Filtering Netflix uses database to make recommendation o Amazon also does this an external company Outsourcing taking a function or a whole product and giving it to Crowd Sourcing Disintermediation removing the middle man Intermediation adding the middle man to the supply chain o Example Internet you can buy directly from producer Virtualization cloud computing grid computing
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