IT2 HW
Organisational Characteristics
Over-riding principle:
Maximising outputs using limited inputs
Features:
Established processes
Politics
Culture
Environment
Structure
Impact of IS
Economic
Transaction cost theory
Agency cost theory
Behavioural
Flattening
Decentralised
Resistance to change
Increased value?
Security?
Better data?
Better product fit?
Knowledge?
Some transaction numbers…
60 million domestic passengers a month on US airlines
7 000 000 000 different purchasing transactions at Walmart each year.
2 000 000 000 people ride the London bus network each year
Porter’s Five Forces
The Value Chain
The Third Dimension
Unobtrusive Data Capture
The extent to which – during the normal business cycle – data is collected and stored in a readily usable format
7
Four Barriers to Erosion
Competitor Analysis
System Development Analysis
Value Network Analysis
Sustainability Framework
Can your competitors replicate it?
How long will it take them?
Will replication work?
Switching costs
ISTM 6251 Summer 2016 GWU Module 3/6
High
HighLow
Degree of Customizabiilty
Reward Strategy Personalization
Acquisition StrategyLow Payoff
Th eo
re ti
ca l R
ep ur
ch as
e R
at e
De gre
e o f U
nob stru
sive
Dat a C
apt ure
Low
High