INFO systems tutorial week 3

Impact of information systems on organisations:

- Make certain industries redundant and introduce new ones
- More efficient and Cheaper
- Flattens hierarchical management
Challenges of information systems:
- Costly
- Implementation transition from legacy
- RESISTANCE TO CHANGE involves changes in business cultures,
business culture and the way that people work.
Porters five competitive forces:
- Traditional competitors
- New Market entrants: high barriers of entry make it difficult for
new markets to enter and this indicates that you have good
market leadership. Barriers can be created by high start up costs,
and prerequisites.
- Substitute products: cheaper products available may challenge
the competitive advantage of the firm.
- Customers: customer is empowered through technology to switch
between certain brands that are cheaper or of higher quality
- Suppliers: power depends on the number of suppliers the firm
has. The least number of suppliers, the greater the power of
suppliers to change costs. More suppliers give the firm power to
switch between them.
Value chain Model:
- Shows the basic activities of the firm and is divided into support
activities and private activities.
- Support activities:
o Human Resources (recruitment and Training)
o Technology (Research and Development)
o Procurement (purchasing input, acquisition of equipment
and goods transactions of the good and services)
o Administration and Management
- Primary activities:
o Marketing and Sales (connecting consumers and the firm)
o Inbound Logistics (receiving, warehousing, managing stock
replenishment, etc)
o Outbound logistics (from organisation to consumers the
distribution aspect to consumers and distributors)
o Operations (transformation from inputs to outputs)
o Service (maintenance-customer queries, etc)
PORTERS VS VALUE CHAIN in identifying competitive advantages
Value web:
- Value chain model that is applied to the whole industry, including
the firm and others around them. Shows the relationship of firms
with other firms and their interaction.
- 4 key relationships with the firm include: Suppliers suppliers
suppliers, strategic alliance and partner firms, Customers
customers customerand Indirect suppliers

UPS has excelled in:

Outbound logistics and service-frequent contact with the customer and
enables consumers to track and receive products quickly and efficiently
mobile applications (primary) and technology.
What makes Ups innovative in terms of customers?
- Scannable bar code: can be created by consumers, provides
information on the sender, detailed information, route,
destination, etc.
- GPS routing device: tracks the most efficient or faster routes.
faster delivery and meeting consumer needs. UPS has saved 28
million miles and 3 million gallons per year.
- OMS: handles delivery of critical parts for a number of industries,
such as those in pharmaceuticals.
- DIAD: Delivery Information Acquisition device: has route of driver
loaded on the DIAD, enables consumer signature, and contains
info on ETA, etc. efficient transmission of data
- 340 methods: employee training
- mobile apps enables consumers to track their orders.
UPS partnered with Pratt and Whitney who specialised in jet engines, etc.
Upss value chain is added to the value chain of Pratt and Whitney this is
depicted in the value web model.
UPS questions:
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