TOPIC 1: INFORMATION AND COMPETITIVE ADVANTAGES

On the 24^th September class of HRIS, I learnt about how information system helps organization to be advantages among their competitors. As technology been a crucial element in business today, it’s become core to organization success to influence market and generating profit.

The lecturer emphasize on Porter’s Competitive forces model is a frameworks that determine the nature of competition in organization. As Porter (2001) state that the web’s overall impart is to increase competition and directly influence the organization profit.

The competitive force:

1.      Threat of entry of new competitors

This force explains how easy another organization of same industry can enter to compete. It’s also emphasized on barrier that needs to cope by new entrant to compete in market.

2.      The supplier power

This force is about the position of supplier and to identify if there are many sellers or monopoly exists. However, the organization can find alternative supplier with lower cost using information technology (IT).

3.      The buyer power

This force explains the position of buyer in market. The buyer have high power when there is various choices and products in market. Organization can use IT to promote and sell product such as online orders.

4.      The threat of substitutes

This force is about how another product can substitute our product or service. The substitution can be in term of cheaper cost and various features

5.      Competitors rivalry

This force is about competitive organization in market. Usually the competitive rival is equally same size, same product or service, quite same strategies and same cost or price.

The lecturer then explains that these competitive forces should be considered to develop strategies to overcome these forces. The competitive strategies and how the IT is use to implement it in organization:

1.      Cost leadership

IT will minimize the process and can lower the cost of products or service which increase the number of customers and suppliers.

2.      Differentiation

IT is use to develop new feature that focusing in small number of selected and targeted market.

3.      Innovation

IT is use to develop changes such as implementation of Employee Self-Service and Enterprise System.

4.      Growth

IT is use to expand and managing market regional and globally.

5.      Alliance

Create online system that linked by internet to strengthen and support the business relation.

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Reference:

1.      R. Kelly Rainer, C. G. (2010). Introduction to Information Systems:. John Wiley & Sons.

2.      http://www.quickmba.com/strategy/porter.shtml