How Does Organizational Strategy Determine Is Requirements?

How does organizational strategy determine information system requirements? Strategy determines value chains, which determines business processes. Business processes determine requirements and functions of information systems. You just studied 14 terms! Keeping This In View, How competitive strategy determines the structure of business processes? When an organization selects a competitive strategy, it designs business processes that include and link value-generating activities. The processes themselves will determine the organization's IT requirements. It is therefore critical that businesses align their IT with their business objectives. Keeping This In View, How does the competitive strategy determine the value chain structure? Thus, an organisation's goals and objectives are determined by its competitive strategy. Competitive strategy determines value chains , which in turn determines business processes; the structure of business processes then determines the design of the supporting information systems.

how does organizational strategy determine is requirements?

Similar Questions

What must facilitate the organization’s competitive strategy?

According to Porter, all information systems in the organization must facilitate the organization’s competitive strategy to be effective. According to Porter’s five forces model, a company is profitable if all the five forces are strong. Business processes implement value chains or portions of value chains.

What is the definition of competitive strategy within the context of industry structure?

What is Competitive Strategy? Competitive Strategy is defined as the long term plan of a particular company in order to gain competitive advantage over its competitors in the industry. It is aimed at creating defensive position in an industry and generating a superior ROI (Return on Investment).

What is a competitive strategy Mis?

Organizations examine the structure of their industry and determine a competitive strategy that strategy determines value change which determine business processes which then determines the design of supporting information systems. Flow chart of how org strategy determines is.

What are the 5 forces that determine industry structure?

Porter’s Five Forces is a framework for analyzing a company’s competitive environment. The number and power of a company’s competitive rivals, potential new market entrants, suppliers, customers, and substitute products influence a company’s profitability.

What five forces determine industry structure?

Industry analysis and structure

The five competitive forces reveal that competition extends beyond current competitors. Customers, suppliers, substitutes and potential entrants—collectively referred to as an extended rivalry—are competitors to companies within an industry.

How the industry structure affects the competitive strategy choices?

According to industrial economics, the structure of an industry influences both the rules of the competition and the strategies that are potentially available to the company to help it improve a weak competitive position or take advantage of a strong one.

Which of the following is a key for companies when choosing a competitive strategy?

Which of the following is a key for companies when choosing a competitive strategy? The competitive strategy of companies must be distinctive and maintainable.

How do business processes generate value?

Business Processes are designed to add value for the customer and should not include unnecessary activities. The outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company).

What is a value chain system?

The term value chain refers to the various business activities and processes involved in creating a product or performing a service. A value chain can consist of multiple stages of a product or service’s lifecycle, including research and development, sales, and everything in between.

Why value chain analysis is needed to determine a competitive position?

A value chain analysis helps decision-makers understand which activities are most valuable and which ones could be optimized (perhaps even eliminated through technology and automation) to give the business a competitive advantage.

Why should we match corporate structure with strategy?

Changes in strategy often require changes in the way an organization is structured, for two major reasons. First, structure largely dictates how objectives and policies will be established. For example, objectives and policies established under a geographic organizational structure are couched in geographic terms.

How does Porter’s value chain facilitate the workings of the resource based view in achieving competitive advantage?

Porter’s Value Chain is a useful strategic management tool. It works by breaking an organization’s activities down into strategically relevant pieces, so that you can see a fuller picture of the cost drivers and sources of differentiation, and then make changes appropriately.

What is meant by competitive strategy how should an organization set about determining its competitive strategy?

A firm’s competitive strategy concerns how to compete in the business areas the firm operates. In other words, competitive strategy means to define how the firm intends to create and maintain a competitive advantage with respect to competitors.

Why competitive strategy is important?

Competitive strategy is also important so that the organization does not wander from its vision and Mission. The competitive strategy helps to keep the organization focused on its goals. In the product cycle, when the product is on a plateau or flat phase where there is no growth, neither degrowth.

How do organizations use information systems to gain competitive advantage?

Information systems aid companies in competing with other competitors by maintaining low costs, differentiating products or services, focusing on market niche, strengthening ties with customers and suppliers, and increasing market entry high competition.

How can MIS be used to gain strategic advantage?

In Management Information Systems by Effy Oz (2008), there are eight ways to gain competitive advantage: Reducing cost, raising barriers to market entrants, establishing high switching costs, creating new products or services, differentiating products or services, enhancing products or services, establishing alliances.

What are some of the factors to consider in determining MIS design should provide your business with a competitive advantage?

Three factors are vital in the successful implementation of MIS. These are organization factors, technology factors and management factors. There are several other factors but these three are the most important ones according to observation. All other factors can be incorporated into these three factors.

What is the main purpose of Porter’s five forces model?

Michael Porter’s Five Forces model is an important tool for understanding the main competitive forces at work in an industry. This can help you to assess the attractiveness of an industry, and pinpoint areas where you can adjust your strategy to improve profitability.

What is the purpose of Porter’s five forces analysis?

Using Porter’s Five Forces may be useful in such a situation. Porter’s Five Forces is a process that involves considering 5 of the major concerns about the progress of your company. There can be a lot of things that someone tries to compare and most of them could be potentially useless.

What is VRIO framework in strategic management?

VRIO is an initialism for the four question framework asked about a resource or capability to determine its competitive potential: the question of Value, the question of Rarity, the question of Imitability (Ease/Difficulty to Imitate), and the question of Organization (ability to exploit the resource or capability).

What is industry structure in strategic management?

Industry structure is defined as the basic, underlying characteristics that shape the competitive strategy for a group of firms producing products that are close substitutes for each other (Porter, 1980).

How does an industry’s structure affect the intensity of competition?

Structure of costs refers to the share of fixed costs, as opposed to variable costs in a given industry. This structure belongs to the important factors influencing intensity of competition because high fixed costs encourage price cutting to fill capacity. Consequently, competition will be more fierce.

What determines the choice of the competitive priorities that a company should emphasize for its key processes?

The firm’s customers will determine which of the competitive priorities are emphasized. Cost – Firms whose customers prioritize price will be very interested in having processes that enable them to keep their costs low.

Which one of the following strategies is used to secure competitive advantage by taking competitors?

Offensive marketing warfare strategies used to secure competitive advantage by attacking competitors: Explanation: The Offensive marketing warfare strategies are used to stable competitive advantages; marketplace leaders, runners-up or suffering competition are generally attacked.

What is a strategic benefit?

A strategic benefit plan is a 3- to 5-year plan crafted by you and your insurance broker or consultant that outlines goals, strategies, and action plans with regard to your employee benefits program. In creating the plan, you and your broker should analyze ways to contain costs through various plan improvements.

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