1南京理工大學機械工程學院工業工程系

?NJUSTDep.OfIndustrialEngineering企業信息化EnterpriseInformatization2參考教材：1.《企業信息化教程》韋沛文等編著清華大學出版社2.《管理信息系統精要》肯尼思·C·勞東編著人民大學出版社3.ManagementInformationSystems-ManagingtheDigitalFirm,12thEdition

3本課程主要內容介紹企業信息化的基本概念，企業信息化整體解決方案、集成平臺，應用實施等內容，使學生掌握企業信息化相關理論，以及實施方法和支撐環境等技術，注重企業遠景規劃、產品發展、管理變革信息技術支撐的良好匹配與協調，以適應未來數字化企業的要求。4TheCourseHelpYouLearnNonroutineSkillsThisisthebestcourseyouchooseforlearningthesefourkeyskills.AbstractReasoningSystemsThinkingCollaborationAbilitytoExperiment5AbstractReasoningistheabilitytomakeandmanipulatemodels.Systemsthinkingistheabilitytomodelthecomponentsofthesystem,toconnecttheinputsandoutputsamongthosecomponentsintoasensiblewholethatreflectsthestructureanddynamicsofthephenomenon.

Youwillbeaskedtocritiquesystems;youwillbeaskedtocomparealternativesystems;youwillbeaskedtoapplydifferentsystemstodifferentsituations.Allofthosetaskswillprepareyouforsystemsthinkingasaprofessional.6Collaboration

istheactivityoftwoormorepeopleworkingtogethertoachieveacommongoal,result,orworkproduct.Effectivecollaborationisn’taboutbeingnice.Infact,surveysindicatethesinglemostimportantskillforeffectivecollaborationistogiveandreceivecriticalfeedback.AbilitytoExperimentSuccessfulexperimentationisnotthrowingbucketsofmoneyateverycrazyideathatentersyourhead.Instead,experimentationismakingareasonedanalysisofanopportunity,envisioningpotentialsolutions,evaluatingthosepossibilities,anddevelopingthemostpromisingones,consistentwiththeresourcesyouhave.78第1章信息系統概述InformationSystemsinthe2010s9主要內容1.1PerspectivesonInformationSystems1.2PositioningITtoOptimizePerformance1.3BusinessPerformanceManagementandMeasurement1.4StrategicPlanningandCompetitiveModels1.5WhyITIsImportanttoYourCareer,andITCareers101.1PERSPECTIVESONINFORMATIONSYSTEMS1.1.1Informationinformationisknowledgederivedfromdatainformationisdatapresentedinameaningfulcontext，rmationisdataprocessedbysumming,ordering,averaging,grouping,comparing,orothersimilaroperations.具有一定意義和相互聯系的事實表達。11data？dataisdefinedasrecordedfactsorfigures.原始始、、不不相相關關的的事事實實表表達達，，是是對對客客體體或或事事件件的的測測量量或或觀觀測測值值。。12Informationissubjective，thatmeansoneperson’’sinformationmaybeanotherperson’’sdata.Figure1-113數據據和和信信息息的的關關系系信息息是是我我們們對對數數據據的的解解釋釋，，或或者者說說是是數數據據的的內內在在含含義義。。數據據經經過過處處理理、、建建立立相相互互關關系系并并給給予予明明確確的的意意義義后后才才成成為為信信息息。。14什么么是是知知識識？？是對對信信息息的的推推理理、、驗驗證證。。從從中中得得出出系系統統化化的的規規律律、、概概念念或或經經驗驗。。知識識按按性性質質分分類類know-what，關關于于事事實實方方面面的的know-why，事事物物的的客客觀觀原原理理和和規規律律性性方方面面的的，，屬屬于于科科學學方方面面的的know-how技巧巧、、技技藝藝、、能能力力方方面面的的，，屬屬于于技技術術方方面面的的know-who，特特定定的的社社會會關關系系、、社社會會分分工工和和知知道道者者的的特特長長與與水水平平，，屬屬于于經經驗驗與與判判斷斷方方面面的的。。15前兩兩種種類類型型的的知知識識和和第第三三種種類類型型知知識識的的一一部部分分就就屬屬于于可可編編碼碼化化的的知知識識，，一一般般較較易易獲獲得得，，第第三三種種知知識識的的另另一一部部分分和和第第四四種種類類型型知知識識一一般般屬屬于于隱隱含含性性知知識識與與判判斷斷類類知知識識即即““意意會會知知識識””，，一一般般難難以以獲獲得得和和掌掌握握。。什么么是是智智慧慧？？16數據據管管理理：：對客客觀觀對對象象的的表表達達、、識識別別和和檢檢測測。。信息息管管理理：從從技技術術層層進進行行數數據據的的存存儲儲、、傳傳輸輸、、顯顯示示使使之之發發生生增增值值等等處處理理過過程程。。知識識管管理理：利利用用知知識識的的獲獲取取方方法法（（如如數數據據挖挖掘掘技技術術））與與管管理理領領域域知知識識相相結結合合進進行行的的創創新新。。17Allinformationisnotequal:Someinformationisbetterthanotherinformation.Figure1-218AccurateAccuracyiscrucial;managersmustbeabletorelyontheresultsoftheirinformationsystems.TheISfunctioncandevelopabadreputationintheorganizationifasystemisknowntoproduceinaccurateinformation.Insuchacase,theinformationsystembecomesawasteoftimeandmoney.Donotbemisledbyawell-formattedreport,orafancyquery,andactivegraphics.Whenyoubegintouseanewinformationsystem,beskeptical.Cross-checktheinformationyouarereceiving.19TimelyGoodinformationistimely—producedintimeforitsintendeduse.Amonthlyreportthatarrives6weekslateismostlikelyuseless.Aninformationsystemthattellsyounottoextendcredittoacustomerafteryouhaveshippedthegoodsisunhelpfulandfrustrating.NoticethattimelinesscanbemeasuredagainstacalendarYouneedtogiveappropriateandrealistictimelinessneeds.Insomecases,developingsystemsthatprovideinformationinnearrealtimeismuchmoredifficultandexpensivethanproducinginformationafewhourslater.Ifyoucangetbywithinformationthatisafewhoursold,saysoduringtherequirementsspecificationphase.20Consideranexample.Supposeyouworkinmarketingandyouneedtobeabletoassesstheeffectivenessofnewonlineadprograms.YouwantaninformationsystemthatnotonlywilldeliveradsovertheWeb,butthatalsowillenableyoutodeterminehowfrequentlycustomersclickonthoseads.Determiningclickratiosinnearrealtimewillbeveryexpensive;savingthedatainabatchandprocessingitsomehourslaterwillbemucheasierandcheaper.Ifyoucanlivewithinformationthatisadayortwoold,thesystemwillbeeasierandcheapertoimplement.21RelevantInformationshouldberelevantbothtothecontextandtothesubject.Consideringcontext,you,theCEO,needinformationthatissummarizedtoanappropriatelevelforyourjob.Alistofthehourlywageofeveryemployeeinthecompanyisunlikelytobeuseful.Morelikely,youneedaveragewageinformationbydepartmentordivision.22JustBarelySufficientInformationneedstobesufficientforthepurposeforwhichitisgenerated,butjustbarelyso.Weliveinaninformationage;oneofthecriticaldecisionsthateachofushastomakeeachdayiswhatinformationtoignore.Thehigheryouriseintomanagement,themoreinformationyouwillbegiven,and,becausethereisonlysomuchtime,themoreinformationyouwillneedtoignore.So,informationshouldbesufficient,butjustbarely.23WorthItsCostInformationisnotfree.Therearecostsfordevelopinganinformationsystem,costsofoperatingandmaintainingthatsystem,andcostsofyourtimeandsalaryforreadingandprocessingtheinformationthesystemproduces.Forinformationtobeworthitscost,anappropriaterelationshipmustexistbetweenthecostofinformationanditsvalue.Informationsystemsshouldbesubjecttothesamefinancialanalysestowhichotherassetsaresubjected.24信息的的基本本特征征真實性性。真真實性性是信信息的的第一一性，，不符符合事事實的的表述述沒有有價值值。(2)增值性性。信信息的的增值值性即即指人人們通通過利利用信信息，，可以以獲得得效益益?？煽梢詮膹臅r間間、內內容和和形式式三個個維度度，確確定人人們對對信息息的需需求，，從而而來確確定信信息的的價值值。準確性性衡量信信息的的真實實性的的程度度相關性性衡量信信息是是否能能很好好地反反映用用戶所所關心心事物物運動動的狀狀態和和方式式，使使用戶戶通過過信息息把握握或控控制事事物的的發展展完整性性衡量信信息所所包含含的內內容是是否完完整地地反映映用戶戶所關關心事事物運運動的的狀態態和方方式。。信信息的的表現現形式式有多多種，，例如如表格格、圖圖形、、文字字等，，而圖圖形又又分多多種。。而選選擇表表現形形式需需要考考慮維維清晰晰性和和詳盡盡性。。同樣樣一種種信息息，選選擇的的表現現形式式不同同，信信息產產生的的價值值也會會不同同。及時性性反映信信息是是否能能及時時提供供給相相關的的用戶戶，新穎性性則測量量信息息是否否是及及時更更新的的。25（3）抽象象性必須區區分信信息的的載體體與內內容，，信息息有可可能在在不同同的載載體之之間轉轉化與與傳遞遞。需需要注注意的的是，，人們們往往往將主主要注注意力力集中中在信信息的的載體體（例例如計計算機機網絡絡的建建設））或技技術手手段上上，而而忽略略了信信息的的內容容。（4）不對稱稱性由于各各種原原因的的限制制（如如專業業知識識、市市場需需求、、制作作技術術等）），在在市場場中交交易的的雙方方所掌掌握的的信息息是極極不相相等的的，買買賣雙雙方掌掌握信信息的的程度度各有有不同同，這這就形形成了了信息息的不不對稱稱。26（5）滯滯后性性信息滯滯后于于數據據。信信息的的滯后后時間間包括括信息息的間間隔時時間和和加工工時間間。信息的的間隔隔時間間是指指獲取取同一一信息息的必必要間間隔時時間。。信息的的加工工時間間是指指獲取取某信信息由由數據據加工工所需需要的的加工工時間間。管理信信息系系統的的一個個基本本目標標就是是要縮縮短數數據的的加工工時間間。27（6）有效性性信息的增值值性只表現現在一定的的時間內。。過了這個個時期，信信息就不會會產生效益益，即信息息的有效性性。信息如同一一種產品，，具有其生生命周期。。信息的生生命周期即即指信息從從產生、收收集、加工工、傳輸、、使用到失失效的全過過程。28（7）共享性性信息不同于于與其他物物質資源，，它具有共共享性，不不具有獨占占性，在同同一時間可可以為多人人所掌握。。這種共享享是一種非非零和的共共享，即共共享的諸方方受益、受受損是不確確定的，各各方因同一一信息而獲獲得的增值值并不等于于少數方獨獨占該信息息所獲得的的增值。29（8）可擴散散性信息的可擴擴散具有兩兩種效應：：正效應是利利于知識的的擴散，節節省人力、、資金等資資源的消耗耗；負效應造成成信息的貶貶值，不利利于信息的的保密。要注重信息息的保密性性，減少信信息的擴散散的負效應應。在企業業內部，要要充分利用用信息的共共享性，在在信息有效效的時間內內，在內部部快速擴散散，對外部部則應該抑抑制信息擴擴散的負效效應。30（9）信息的的粒度（granularity）粒度用來度度量信息的的詳細程度度。為信息的使使用者提供供不同粒度度的信息有有助于他們們能更好地地把握事物物運動的狀狀態和方式式。柳州產品品系列產品組組規格F5M42地區區國外國內大區省份城市時間間年-季-月-周-日4G63MPI4G64R5M214G63CARB上海廣州一季二季三季四季銷售量沈陽長春福州1.1.3InformationSystemsandInformationTechnology:CoreConceptsAninformationsystem(IS)collects,processes,stores,analyzes,anddistributesinformationforaspecificpurposeorobjective.Input.Dataandinformationaboutbusinesstransactionsarecapturedorcollectedbypoint-of-sale(POS)scannersandWebsitesandreceivedbyotherinputdevices.Processing.Dataistransformed,converted,andanalyzedforstorageortransfertoanoutputdevice.Output.Data,information,reports,andsoonaredistributedtodigitalscreensorhardcopy(paper),sentasaudio,ortransferredtootherISsviacommunicationnetworks.Feedback.Afeedbackmechanismmonitorsandcontrolsoperations.3132ManagementInformationSystems(MIS)thedevelopmentanduseofinformationsystemsthathelpbusinessesachievetheirgoalsandobjectives.Thisdefinitionhasthreekeyelements:developmentanduse,informationsystems,andbusinessgoalsandobjectives.33InformationSystem(IS)isanassemblyofhardware,software,data,procedures,andpeoplethatproducesinformation.FiveComponentsofanInformationSystem34Figure1-435Thesefivecomponentsaresymmetrical.Theoutermostcomponents,hardwareandpeople,arebothactors;theycantakeactions.Thesoftwareandprocedurecomponentsarebothsetsofinstructions:Softwareisinstructionforhardware,andproceduresareinstructionsforpeople.Finally,dataisthebridgebetweenthecomputersideontheleftandthehumansideontheright.Now,whenweautomateabusinessprocess,wetakeworkthatpeoplearedoingbyfollowingproceduresandmoveitsothatcomputerswilldothatwork,followinginstructionsinthesoftware.Thus,theprocessofautomationisaprocessofmovingworkfromtherightsidetotheleft.36Abusinessisnotalive,anditcannotact.Itisthepeoplewithinabusinesswhosell,buy,design,produce,finance,market,account,andmanage.So,informationsystemsexisttohelppeoplewhoworkinabusinesstoachievethegoalsandobjectivesofthatbusiness.37BusinessProcessesInformationProcessingActivitiesBusinessValueManagementActivitiesSupplyChainManagementEnterpriseManagementCustomerManagementKnowledgeManagementDataCollectionandStorageTransformationIntoBusinessSystemsDisseminationPlanningCoordinatingControllingModelingandDecisionMakingFirmProfitabilityandStrategicPositionABusinessPerspectiveonInformationSystemsFigure1-538InformationsystemsaremorethancomputersORGANIZATIONSTECHNOLOGYMANAGEMENTINFORMATIONSYSTEMSFigure1-639ORGANIZATIONSInformationsystemsareanintegralpartoforganizations.Thekeyelementsofanorganizationareitspeople,structure,businessprocesses,politics,andculture.Organizationsarecomposedofdifferentlevelsandspecialties.Expertsareemployedandtrainedfordifferentfunctions.Themajorbusinessfunctionsperformedbybusinessorganizations,consistofsalesandmarketing,manufacturingandproduction,financeandaccounting,andhumanresources.40Anorganizationcoordinatesworkthroughastructuredhierarchyandthroughitsbusinessprocesses.Thehierarchyarrangespeopleinapyramidstructureofrisingauthorityandresponsibility.Theupperlevelsofthehierarchyconsistofmanagerial,professional,andtechnicalemployees,whereasthelowerlevelsconsistofoperationalpersonnel.41Mostorganizations’businessprocessesincludeformalrulesthathavebeendevelopedoveralongtimeforaccomplishingtasks.Theserulesguideemployeesinavarietyofprocedures.Manybusinessprocessesareincorporatedintoinformationsystems.Organizationsrequiremanydifferentkindsofskillsandpeople.Inadditiontomanagers,knowledgeworkersdesignproductsorservicesandcreatenewknowledge,anddataworkersprocesstheorganization’spaperwork.Productionorserviceworkersactuallyproducetheorganization’’sproductsorservices.Eachorganizationhasauniqueculture,orfundamentalsetofassumptions,values,andwaysofdoingthings,thathasbeenacceptedbymostofitsmembers.Partsofanorganization’’sculturecanalwaysbefoundembeddedinitsinformationsystems.42MANAGEMENTManagement’’sjobistomakesenseoutofthemanysituationsfacedbyorganizations,makedecisions,andformulateactionplanstosolveorganizationalproblems.Managersallocatethehumanandfinancialresourcestocoordinatetheworkandachievesuccess.Butmanagersmustdomorethanmanagewhatalreadyexists.Theymustalsocreatenewproductsandservices.Asubstantialpartofmanagementresponsibilityiscreativeworkdrivenbynewknowledgeandinformation.Informationtechnologycanplayapowerfulroleinredirectingandredesigningtheorganization.43Managerialrolesanddecisionsvaryatdifferentlevelsoftheorganization.Seniormanagersmakelong-rangestrategicdecisionsaboutwhatproductsandservicestoproduce.Middlemanagerscarryouttheprogramsandplansofseniormanagement.Operationalmanagersareresponsibleformonitoringthefirm’sdailyactivities.Eachlevelofmanagementhasdifferentinformationneedsandinformationsystemrequirements.44TECHNOLOGYInformationtechnologyisoneofmanytoolsmanagersusetocopewithchange.ComputerhardwareSoftwarestoragetechnologyCommunicationstechnology45TheInternethascreatedanew“universal”technologyplatformonwhichtobuildallsortsofnewproducts,services,strategies,andbusinessmodels.Thissametechnologyplatformhasinternaluses,providingtheconnectivitytolinkdifferentsystemsandnetworkswithinthefirm.InternalcorporatenetworksbasedonInternettechnologyarecalledintranets.Privateintranetsextendedtoauthorizedusersoutsidetheorganizationarecalledextranets,andfirmsusesuchnetworkstocoordinatetheiractivitieswithotherfirmsformakingpurchases,collaboratingondesign,andotherinterorganizationalwork.46InformationTechnology(IT)referstoallofthecomputer-basedinformationsystemsusedbyorganizationsandtheirunderlyingtechnologies（theproducts,methods,inventions,andstandardsthatareusedforthepurposeofproducinginformation.）Informationtechnologiesandsystemsarerevolutionizingtheoperationoffirms,industries,andmarkets.ThebusinessvalueofITisdeterminedisdeterminedbytherelationshipsamongISs,people,andbusinessprocesses——allofwhichareinfluencedstronglybyorganizationalculture.47MajorCapabilitiesofISsandSupportedBusinessObjectivesPerformhigh-speed,high-volume,numericalcomputations?Providefast,accuratecommunicationandcollaborationunrestrictedbytimeandlocation?StorehugeamountsofinformationthatisaccessibleviaprivatenetworksandtheInternet?Automatesemiautomaticbusinessprocessesandmanuallydonetasks.?EnableautomationofroutinedecisionmakingandfacilitatecomplexdecisionmakingIScapabilitiessupportthesebusinessobjectives:?Improveproductivity(productivityisameasurementortheratioofinputstooutputs)?Reducecostsandwaste?Improvetheabilitytomakeinformeddecisions?Facilitatecollaboration?Enhancecustomerrelationships?Developnewanalyticcapabilities?Providefeedbackonperformance4849CONTEMPORARYAPPROACHESTOINFORMATIONSYSTEMSTechnicalApproachesBehavioralApproachesManagementScienceOperationsResearchSociologyEconomicsComputerSciencePsychologyThetechnicalapproachtoinformationsystemsemphasizesmathematicallybasedmodelstostudyinformationsystem.Computerscienceisconcernedwithestablishingtheoriesofcomputability,methodsofcomputation,andmodelsofefficientdatastorageandaccess..Managementscienceemphasizesthedevelopmentofmodelsfordecision-makingandmanagementpractices.Behavioralissuesincludestrategicbusinessintegration,design,implementation,utilization,andmanagement.Operationsresearchfocusesonmathematicaltechniquesforoptimizingselectedparametersoforganizations,suchastransportation,inventorycontrol,,andtransactioncosts.1.2PositioningITtoOptimizePerformanceDuringthe2010s,managersareexploringnewstrategiestoimprovebusinessperformance,orprofitability.Oneapproachistodeveloptheagilityneededtoidentifyandcaptureopportunitiesmorequicklythanrivals.Organizationscanbenefitfromopportunitiesmadepossiblebyhighperformancemobiledevicesandhigh-speedmobiletelecommunicationnetworks.Examplesarethe3Gand4Gnetworksofcellularserviceproviders.Mobiletechnologyhastorndownthewallsbetweenourbusiness,professional,andpersonallives.50OrganizationsdependonITtobeabletoadapttomarketconditionsandgainacompetitiveedge.Thatcompetitiveadvantageisshort-livedifcompetitorsquicklyduplicateit.Noadvantageisverylong-lasting.Therefore,companiesneedtoupgrade,develop,and/ordeploynewISstoremaininthecompetitivegame.Duringthelastdecade,companieswereadaptingtosocialnetworking,andbecameextensionsofbusinessestoreachcustomers,prospects,andbusinesspartners.51Abusinessmodelisamethodofdoingbusinessbywhichacompanycangeneratesalesrevenueandprofittosustainitself.Themodelspellsouthowthecompanycreatesoraddsvalueintermsofthegoodsorservicesthecompanyproduces.Somemodelsareverysimple.Forexample,Applemakesandsellscellphonesandgeneratesprofitfromthesesales.Ontheotherhand,aTVstationprovidesfreebroadcasting.Itssurvivaldependsonacomplexmodelinvolvingfactorssuchasadvertisersandcontentproviders.52Acomprehensivebusinessmodeliscomposedofthesesixelements:1.Adescriptionofallproductsandservicesthebusinesswilloffer2.Adescriptionofthebusinessprocessrequiredtomakeanddelivertheproductsandservices3.Adescriptionofthecustomerstobeservedandthecompany’srelationshipswiththesecustomers,includingwhatconstitutesvaluefromcustomers’perspective(customers’valueproposition)53Acomprehensivebusinessmodeliscomposedofthesesixelements:4.Alistoftheresourcesrequiredandtheidentificationofwhichonesareavailable,whichwillbedevelopedin-house,andwhichwillneedtobeacquired5.Adescriptionoftheorganization’’ssupplychain,includingsuppliersandotherbusinesspartners6.Adescriptionoftherevenuesexpected(revenuemodel),anticipatedcosts,sourcesoffinancing,andestimatedprofitability(financialviability)541.3BusinessPerformanceManagementandMeasurementPerformanceismeasuredbyhowwellthosegoalsandobjectivesaremet.Despitehowsimplethissounds,measuringbusiness(ororganizational)performanceisextremelychallenging.Howdoyoumanageperformance?Assumethatacompany’’sgoalsareincreasedsalesandimprovedcustomerloyalty.Salesrevenueisarathereasy-to-calculatequantitativemetric.Incontrast,customerloyaltyisaqualitativemetricandprobablyhasalongertimedimension.Youcanimmediatelyknowhowmuchcustomershavepurchasedonaparticularday,butnothowmanycustomersyou’’velostthatday.55Inordertomanageperformance,twofundamentalrequirementsare:（1）Beingabletomeasure.Youcannotmanagewhatyoucannotmeasure.Statedinreverse,ifyoucannotmeasureaprocess,youcannotmanageorcontrolit.Tobereliable,““measuring”needstobefact-basedand/ordata-driven.Otherwise,managersaremakingdecisionsbasedonconditionsofuncertainty.Themoreaccurateandtimelythedata,thebettertheabilitytomeasure.56（2）Knowingthatyourindicatorismeasuringtherightthing.Measuringperformancerequires:IdentifyingthemostmeaningfulmeasuresofperformanceBeingabletomeasurethemcorrectlySelectingthesetofmeasuresthatprovidesaholisticindicatoroftotalbusinessperformanceIdentifyingwhoshouldreceivethereportsandinwhattimeframe57PerformanceMeasurementProcess.Measuringperformanceisamultistepcyclicalprocess.Themajorstepsinbusinessperformancemanagementare:Step1.Decideondesiredperformancelevels.Namely:Whatdoesthecompanywanttoachieve?Suchtargetsaredecideduponandexpressedasgoalsandobjectives,basedontheorganization’smission.Also,specificmetricsshouldbesetfordesirableandmeasurableperformancetopicssothatthecompanycanevaluateitssuccess.Step2.Determinehowtoattaintheperformancelevels.Theissueis:Howtogetthere?Thisisdeterminedbythecorporatestrategiesandspecificshort-,medium-,andlong-termplans.58Step3.Periodicallyassesswheretheorganizationstandswithrespecttoitsgoals,objectives,andmeasures.Theissuehereistofind:Howarewedoing?ThisisaccomplishedbymonitoringperformanceandcomparingittothevaluessetinStep1.Step4.Adjustperformanceand/orgoals.Ifperformanceistoolow——thatis,thereisanegativegapbetweenwherewewanttobeandwhereweare——correctiveactionsneedtobetaken:Howdoweclosethegap?59BusinessEnvironmentalPressures.Thebusinessenvironmentconsistsofavarietyoffactors—societal,legal,political,technological,andeconomic.ImpactofBusinessEnvironmentFactors.Thebusinessenvironmentfactorscanimpacttheperformanceofindividuals,departments,andentireorganizations.Somefactorscreateconstraints,whileotherscostagreatdealofmoneyordiverteffortsawayfromthebusiness.NewlawsandregulationsalmostalwaysinvolvetheimplementationofnewISsforcompliance,especiallyduringthefirstyearsaftertheygointoeffect.6061621.4StrategicPlanningandCompetitiveModelsIngeneral,strategicanalysisisthescanningandreviewofthepolitical,social,economic,andtechnicalenvironmentoftheorganization.Thepurposeofthisanalysisoftheenvironment,competition,andcapacityistolearnaboutthestrengths,weaknesses,opportunities,andthreats(SWOT)oftheexpansionplanbeingconsidered.SWOTanalysis,asitiscalled,involvestheevaluationofstrengthsandweaknesses,whichareinternalfactors,andopportunitiesandthreats,whichareexternalfactors.63Examplesare:Strengths:reliableprocesses;agility;motivatedworkforceWeaknesses:lackofexpertise;competitorswithbetterITinfrastructureOpportunities:adevelopingmarket;abilitytocreateanewmarketorproductThreats:pricewarsorotherfiercereactionbycompetitors;obsolescence64SWOTisonlyaguideandshouldbeusedtogetherwithothertoolssuchasPorter’sfive-forcesanalysismodel.SWOTanalysisisoftendoneattheoutsetofthestrategicplanningprocessStrategicplanningisaseriesofprocessesinwhichanorganizationselectsandarrangesitsbusinessesorservicestokeeptheorganizationviableevenwhenunexpectedeventsdisruptoneormoreofitsbusinesses,markets,products,orservices.Strategicplanninginvolvesenvironmentalscanningandprediction,orSWOTanalysis,foreachbusinessrelativetocompetitorsinthatbusiness’smarketorproductline.65Strategydefinestheplanforhowabusinesswillachieveitsmission,goals,andobjectives.Itspecifiesthenecessaryfinancialrequirements,budgets,andresources.Strategyaddressesfundamentalissuessuchasthecompany’spositioninitsindustry,itsavailableresourcesandoptions,andfuturedirections.Astrategyaddressesquestionssuchas:Whatisthelong-termdirectionofourbusiness?Whatistheoverallplanfordeployingourresources?Whattrade-offsarenecessary?Whatresourceswillitneedtoshare?Whatisourpositionvis-à-viscompetitors?Howdoweachievecompetitiveadvantageoverrivalsinordertoachieveormaximizeprofitability?66PORTER’SCOMPETITIVEFORCESMODELANDSTRATEGIESMichaelPorter’scompetitiveforcesmodel,alsocalledthefive-forcesmodel,hasbeenusedtodevelopstrategiesforcompaniestoidentifytheircompetitiveedge.ThemodelalsodemonstrateshowITcanenhancecompetitivenessAccordingtoPorter’scompetitiveforcesmodel,therearefivemajorforcesinanindustrythataffectthedegreeofcompetitionandthusimpactprofitmarginsandultimatelyprofitability.Theseforcesinteract,soalthoughyouwillreadaboutthemindividually,itistheirinteractionthatdeterminestheindustry’sprofitpotential.67Forexample,whileprofitmarginsforpizzeriasmaybesmall,theeaseofenteringthatindustrydrawsnewentrantsintoit.Conversely,profitmarginsfordeliveryservicesmaybelarge,butthecostoftheITtosupporttheserviceisahugebarriertoentryintothemarket.68Anexplanationofthefiveindustry(market)forces.69Threatofentryofnewcompetitors.Industrieswithlargeprofitmarginsattractmorecompetitors(calledentrants)intothemarketthandoindustrieswithsmallprofitmargins.It’’sthesameprinciplethatappliestojobs——peopleareattractedtohigher-payingjobs,providedthattheycanmeetoracquirethecriteriaforthatjob.Inordertogainmarketshare,entrantstypicallysellatlowerpricesoroffersomeincentive.Thosecompaniesalreadyintheindustrymaybeforcedtodefendtheirmarketsharebyloweringprices,whichreducestheirprofitmargin.Thus,thisthreatputsdownwardpressureonprofitmarginsbydrivingpricesdown.70Thisforcealsoreferstothestrengthofthebarrierstoentryintoanindustry,whichishoweasyitistoenteranindustry.Thethreatofentryislower(lesspowerful)whenexistingcompanieshaveISsthataredifficulttoduplicateorveryexpensive.ThoseISscreatebarrierstoentrythatreducethethreatofentry.712.Bargainingpowerofsuppliers.Bargainingpowerishighwherethesupplierorbrandispowerful;forexample,Apple,Microsoft,andautomanufacturers.Powerisdeterminedbyhowmuchacompanypurchasesfromasupplier.Themorepowerfulcompanyhastheleveragetodemandbetterpricesorterms,whichincreaseitsprofitmargin.Conversely,supplierswithverylittlebargainingpowertendtohavesmallprofitmargins.723.Bargainingpowerofcustomersorbuyers.Thisforceisthereverseofthebargainingpowerofsuppliers.ExamplesareDellComputers,Walmart,andgovernments.Thisforceishighwherethereafewlargecustomersorbuyersinamarket.4.Threatofsubstituteproductsorservices.Wherethereisproduct-for-productsubstitution,suchase-mailforfax,thereisdownwardpressureonprices.Asthethreatofsubstitutesincreases,profitmargindecreasesbecausesellersneedtokeeppricescompetitivelylow.735.Competitiverivalryamongexistingfirmsintheindustry.Fiercecompetitioninvolvesexpensiveadvertisingandpromotions,intenseinvestmentsinresearchanddevelopment(R&D),orothereffortsthatcutintoprofitmargins.Thisforceismostlikelytobehigh