istm_6251_module_3-n_1.pptx

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