IT Lecture 2
Card Set Information
IT Lecture 2
BADM Schwarz Lecture
BADM 7050 Lecture 2 cards
Role of IT in the three types of economy: industrial, information, and digital
: Used to perform existing information work more quickly and efficiently
: Used to manage work better
: Makes pervasive changes in the structure and operation of work, business practices, organizations, industries, and the global economy
What determines market power for a firm?
The point within a value chain where maximum economies of scale and scope
Why is globalization a two-way street?
Internet allows small firms to have global reach, but local tastes still matter
Ex. Walmart going into Germany
What is decapitalization
Power of intangibles (ideas and knowledge) are now more important than tangibles (buildings, capital, equipment)
Managing talent is as important as managing finances
Internal organization has gone from __-__ to __-__
Customers now shape products
How are outsourcing and strategic alliances important in the internal organizational environment?
Firms should focus on core competency
Don't waste resources on things the firm doesn't do well
What is causing the demise of hierarchy?
Cannot cope with rapid change
It takes too long to communicate up and down the chain
IT competitive advantage is created by?
IT competitive advantage isn't in the technology itself, but what is done with it
Enterprise Resource Planning
ERP systems consolidate all business operations into a uniform and enterprise-wide system environment.
Expensive and troublesome, especially for companies wanting to modify the ERP software to fit their "unique" processes
A fundamental organizational change
Ex. SAP, PeopleSoft
Proprietary vs Open software systems
Proprietary - Microsoft - all programs require windows
Open - IBM - want a standard that all applications can use - the push now is for open systems