Using Information Technology for Competitive Advantage

1 / 90
About This Presentation
Title:

Using Information Technology for Competitive Advantage

Description:

MIS 480 GROUP PRESENTATION Using Information Technology for Competitive Advantage Jolanta Zadlo & Gary Gray It s All About E Case Study: General Electric e ... – PowerPoint PPT presentation

Number of Views:58
Avg rating:3.0/5.0
Slides: 91
Provided by: M228
Learn more at: http://www.umsl.edu

less

Transcript and Presenter's Notes

Title: Using Information Technology for Competitive Advantage


1
MIS 480 GROUP PRESENTATION
Using Information Technology for Competitive
Advantage
Jolanta Zadlo Gary Gray
2
IT as a Competitive Weapon
  • IT and Competitive Advantage
  • Sustainability of Competitive Advantage
  • Case Studies
  • Sabre
  • GE
  • Conclusion

3
Definition Information Technology
Information Technology (IT) is the amalgamation
of hardware, software, data, people and
procedures that enables or inhibits business
objectives depending on managements involvement
in IT.
Source Why General Managers Need to Understand
Information Technology, lecture notes, Lacity,
2002
4
How the information revolution affects
competition
  • Changes industry structure thereby altering the
    rules of competition
  • Creates competitive advantage by giving new
    ways to outperform rivals
  • Spawns whole new businesses

Source How information gives you competitive
advantage, Porter and Millar, 1985
5
How IT creates a competitive advantage
  • Differentiate a product or service
  • Improve business processes (lower costs)
  • Change a business structure
  • Create new business

Source IS 480 lecture notes, Lacity, 2002
6
Competitive advantage comes from
critical differentiators
Critical Commodities Critical Differentiators
Useful Commodities Eliminate/Migrate
Critical
Useful
Commodity Differentiator
Source IS 480 lecture notes, Lacity, 2002
7
IT as a Competitive Weapon - Sustainability
Very few companies sustain their competitive edge
over the long term
Sustainability occurs when it is difficult or
impossible for the competition to respond
IT as a Basis for Sustainable Competitive
Advantage, Feeny Ives
8
IT as a Competitive Weapon - Sustainability
  • IT Resources-Easily Duplicated
  • Capital for investment
  • Proprietary technology
  • Technical Skills

IT as a Basis for Sustainable Competitive
Advantage, Feeny Ives
9
IT as a Competitive Weapon - Sustainability
  • IT Resources-NOT Easily Duplicated
  • Managerial IT Skills
  • Understanding business needs
  • Collaborating with colleagues
  • Managing market technical risk of innovation

IT as a Basis for Sustainable Competitive
Advantage, Feeny Ives
10
IT as a Competitive Weapon - Sustainability
Sustainable Advantage
  1. How long before a competitor responds?
  2. Which competitors can/will respond?
  3. Will the response be effective?

Supply System Analysis
Competitor Analysis
Project Life-cycle Analysis
Lead Time
Competitive Asymmetry
Pre-emption Potential
IT as a Basis for Sustainable Competitive
Advantage, Feeny Ives
11
IT as a Competitive Weapon - Sustainability
  • 3 Pillars Supporting Sustainable Advantage
  • Lead Time
  • Information leaks
  • Followers take short cuts
  • Followers implement better solutions
  • Competitor Analysis
  • (Difficulty of competitor to respond or copy
    application)
  • Supply system analysis
  • Market capture
  • Switching costs

12
Case studies selected
AmericanAirlines
General Electric Company

13
Sabre Holdings Corporation Current Company
Background
  • SP Fortune 500 Company
  • 2.1B in revenues in 2001
  • TSG The Sabre Group
  • Traded on the NYSE 1996
  • Current Price about 21
  • Headquarters Dallas/Fort Worth, TX


Source www.sabre.com
14
Sabre Holdings Corporation Current Company
Background
  • 7,000 employees in 45 countries
  • Sabre connects more than 60,000
  • travel agency locations worldwide,
  • providing content for 400 airlines
  • (complete flight data, seat maps, etc) ,
  • 55,000 hotel properties (room availability, type,
    price), 52 car rental companies, nine cruise
    lines, 33 railroads and 229 tour operators.


Source www.sabre.com
15
Sabre Holdings Corporation Financial Data
  • Revenues from operations declined 19 in 2001
    due to 9/11 events and lower US and worldwide
    travel volumes, but were more than compensated
    for by revenue from outsourcing to EDS, profits
    did not fare as well.


Source Sabres 2001 Summary Annual Report
16
Sabre Holdings Corporation Financial Picture

Source Sabres 2001 Summary Annual Report
17
Sabre Holdings Corporation Information Technology
  • Both Carol Kelly, Senior VP and CIO,
  • and Craig Murphy, Senior VP and CTO
  • report to the CEO
  • Sabre outsourced its mainframe and data center
    to EDS. However, Sabre has retained a sizeable
    investment in IT.


Source Interview of Jim Menge, VP Technology
Sales, Sabre
18
What is Sabre
Semi- Automatic Business
Research Environment

Source Computerworld, Technology Takes Flight,
Sep 2002
19

IT to Improve Business Processes
American Airlines developed Sabre to automate the
process of reserving airline seats.

Source Computerworld, Technology Takes Flight,
9/02
20
American Airlines improves a business process
  • 1959 American Airlines (AA) and IBM sign a
    contract for the joint development of a real-time
    reservation system that combines in a centralized
    electronic unit, 2 basic reservation records
    the passenger name record (PNR) and the seat
    inventory. AA spends 150M on the development of
    the system. Sabre was based upon technology
    created by MIT for DOD.


Source Data Management, Sep 1981 Computerworld
Mar 1999
21
American Airlines improves a business process
  • AAs reservation process used a system based on
    computer cards and teletypes and required the
    efforts of 12 people, at least 15 steps and up to
    3 hours to record
  • a roundtrip reservation.
  • The error rate was 8.
  • Sabre reduced costs and the error rate.


Source www.sabre.com
22
American Airlines improves a business process
  • 1960 American Airlines (AA) installed the
    first Sabre system, a computer reservation system
    (CRS). Represented state-of-the-art technology
    and processed 84,000 calls per day. Research,
    development and installation cost 40 million
    with an investment of 400 man-years of effort.


Source www.sabre.com
23
American Airlines improves a business process
  • 1964 AA completes cutover to Sabre with a
    coast to coast network in the US.
  • Sabre is the largest, private real-time data
    processing system.


Source www.sabre.com
24
Competitive Edge
Competitive advantage from process change

Source www.sabre.com
25
Competitive Edge
  • AA saved 30 of its investment in staff alone
  • Sabre delivers an error rate of less than 1
  • Sabre creates a competitive edge that lasts for
    5 to 7 years


Source www.sabre.com
26
Competitive Edge
  • Other CRS providers today
  • Apollo rolled out by United in 1976
  • Worldspan Delta, Northwest and TWA
  • Amadeus largest foreign owned CRS
  • Sabre continues as the industry leader today
  • Worldspan is the only airline owned CRS


Source www.sabre.com and BTMC records
27
Sabre System History 1970s
  • 1972 Sabre system upgraded to IBM 360s
  • 1976 Sabre system first installation
  • in a travel agency by year end 130 locations
  • and captured about 86 of the market
  • United Airlines introduces Apollo
  • 1978 Sabre stores 1M fares


Source www.sabre.com
28
Sabre System History 1980s
  • 1981 Sabre has a slight market share
    advantage over Apollo
  • The competitive edge has all but disappeared
  • 1981 AA introduces the first airline frequent
    flyer program
  • 1984 Sabre introduces low-fare search engine
    a service unmatched in the industry


Sources Business Week, Aug 1982, Direct
Marketing, Jul 1983 and www.sabre.com
29
Sabre System History 1980s
  • 1985 AA allows travel agencies to use
    personal computers to tap into the Sabre system
    via computer online services to access airline,
    hotel and car rental reservations
  • 1986 AA/Sabre installs the industrys first
    automated yield management system
  • 1988 Sabre system stores 36 million fares


Source www.sabre.com
30
Sabre System History 1980s
  • 1987 With airlines in their 8th year of
    deregulation, information and transaction
    processing has become more profitable than
    selling seats. AAs Sabre System produced pretax
    margins of 30 vs. 5.2 percent from tickets.


Source Business Week, 1987
31
Sabre System History 1980s
  • 1988 Sabre system stores 36 million fares
  • 1989 A computer foul-up shut down AAs Sabre
    ticketing system for 12 hours, apparently the
    result of a glitch written into the system. The
    system failure left 14,000 travel agencies and a
    large part of AA without flight information.
  • Lesson ?


Sources New York Times and Business Week, 1989
32
Sabre System History 1990s
  • 1995 Sabre begins to prepare for Y2K
    software is distributed to 40,000 travel agents
    in 1998. Y2K costs estimated at 78M.
  • 1996 Sabre names its first CIO


Source www.sabre.com Computerworld, May 1996
and Computerworld, Mar 1998
33
The Web Threat
Airlines begin to focus on the Web as a means to
further reduce their distribution costs

Source www.sabre.com
34
A New Way to Cut Costs
  • 1995 AA and all major US carriers reduce
    travel agency commissions on domestic flights.
    Commission is capped at 50.
  • Additional reductions are made in 1997 (
    decreased from 10 to 8), 1998 (international
    commissions capped at 100), 1999 ( decreased to
    5), 2001 (domestic caps reduced to 20) and 2002
    (commissions eliminated)


Source www.sabre.com and BTMC records
35
Sabre System History 1990s
  • 1996 Sabre becomes a separate subsidiary of
    AMR and AMR releases 18 to be publicly traded
    (total spin-off in 2000)


Source www.sabre.com
36
Sabre System History 1990s
  • 1996 Travelocity.com, currently the
    industrys leading online consumer travel website
    is launched.


Source www.sabre.com
37
Sabre System History 1990s
  • By 1998 Sabre had evolved into a global
    distribution system (GDS) for travel reservations
    connecting more than 30,000 travel agents and 3
    million online customers with 400 airlines, 50
    car rental companies, 35,000 hotels and dozens of
    railways, tour companies and cruise lines.
  • About 1 of all airline tickets are purchased
    on the web in early 1998.


Source Computerworld, Sep 2002 Forbes, Apr 1998
38
Sabre System History 1990s
  • 1999 SabreVirtually There, a web based
    system that provides travelers itinerary and
    destination info via the internet


Source www.sabre.com
39
The Web Threat
  • 1995 Sabre considers development of the first
    corporate online booking tool BTS. The project
    is incubated for 2 to 3 years.
  • 1997 Development of the BTS begins.
  • 1998 BTMC agrees to beta test Sabres BTS for
    Boeing travelers.


Source interview and BTMC records
40
Online Booking
  • 1998 Sabre is unable to expand BTS to be a
    multi-CRS system.
  • 1999 BTMC terminates agreement with Sabre and
    signs with small startup firm Internet Travel
    Network for a multi-CRS system.
  • BTS is available today in a Spanish version
    which is still in use today.


Source BTMC interview and BTMC records
41
Online Booking
  • 2000 Sabre acquires GetThere.com, formerly
    Internet Travel Network for 757M. GetTheres
    online product is currently the leading provider
    of online booking solutions. Purchase completed
    to gain customer base and keep competitors from
    purchasing.


Sources www.sabre.com, interview
Computerworld, Aug 2000
42
The Web Threat
  • Sabres recent response to the web which
    threatens its core business model
  • Sabre signs deals with Hotwire.com and
    Priceline.com to provide key technology both
    companies are also competitors of Sabres
    Travelocity.com


Source Computerworld, Aug 2000
43
The Initial Outsourcing
  • In August 1996, Sabre signed a 7 year
    outsourcing deal which transferred responsibility
    for its travel reservations network. A
    partnership of Paris-based airline network SITA
    and Atlanta-based Equant essentially purchased
    the network for 450M for 7 years. Sabre
    transferred 80 of its network engineers to SITA.


Source Computerworld, December 1997
44
Outsourcing a mature product
  • In July 2001, Sabre signed a 10 year, 2.2B
    outsourcing contract with EDS. EDS purchased
    Sabres IT infrastructure assets and data centers
    and Sabres airline technology outsourcing
    business. Over 4,000 Sabre employees transferred
    to EDS. This transaction represented 600M in
    revenue to Sabre.


Source Computerworld July 2001 and interview
45
The Future
  • Sabre continues to develop and release new
    products on an ever increasing pace.
  • Continued change required to maintain customer
    satisfaction. Revenues from the traditional
    CRS/GDS model must be replaced by new lines of
    business.


46
Success with IT Strategies
  • 1980s Killer Application
  • AA/UA-Reservation Systems
  • American Hospital Supply-Online ordering system
  • Frito-Lay-Handheld devices for sales
  • Early 1990s Re-engineering
  • Redesigning business processes around technology
  • Mid 1990s Information Management
  • Knowledge Management
  • ERP
  • CRM

http//www.cio.com/archive/050101/davenport_conten
t.html
47
Success with IT Strategies
  • Late 1990s e-Commerce
  • Today
  • e-Commerce is not enough
  • IT investment in the business core (touches
    customer)
  • Business commitment
  • Commitment to change (continually re-invent and
    never rest)
  • Using multiple technologies and management
    approaches (not just one)
  • Company must excel in front office(e-commerce,
    CRM) , back office (ERP), and data warehousing,
    mining, and KM
  • Information focus (to make smart decisions)

http//www.cio.com/archive/050101/davenport_conten
t.html
48
Its All About E
49
Case StudyGeneral Electric
  • Company Overview
  • Digitization Strategy
  • Examples
  • Buy Side
  • Plastics
  • Appliances
  • Power Systems
  • Aircraft Engines
  • Sell Side
  • Make Side
  • Summary

e-business Is Business Just Simpler, Faster, and
Better
50
General ElectricCompany Overview
  • Formed in 1892
  • Only company part of the Dow Jones's Industrial
    Index since the Indexs debut
  • 67,588 patents, 2 Nobel Prizes and numerous
    other honors
  • Operates in more than 100 countries and employs
    313,000 people worldwide
  • GE is considered to be one of the largest and
    most diversified industrial corporations in the
    world

www.ge.com
51
General ElectricCompany Overview
  • Short-cycle businesses contributed approximately
    20 of GE's net earnings in 2001
  • Consumer Products (Lighting Appliances)
  • Plastics
  • Industrial Systems
  • NBC
  • Specialty Materials
  • Long-cycle businesses contributed approximately
    40 of GE's net earnings in 2001
  • Medical Systems
  • Power Systems
  • Transportation Systems
  • Aircraft Engines
  • Financial services contributed approximately 40
    of GE's net earnings in 2001

52
GE Digitization Strategy
  • Before 1999 - IT at GE was non existent
  • 1999 - Jack Welch orders each business to
    Destroy your business/ Grow your business
  • Use information technology to create a leaner,
    faster, more customer focused company, accelerate
    high margin, capital efficient growth., Jeff
    Immelt, CEO
  • 2001- GE Top e-business innovator (eweek)

www.ge.com
53
GE Digitization Strategy
IT Spending 2000 - 2.5 billion 2001 - 3.0
billion 2002 - 3.5 billion
Gary Reiner, CIO
"You won't see one ounce of slowdown in tech
spending. Jack Welch 1/2001
http//www.eweek.com/article2/0,3959,94717,00.asp
54
GE Digitization Strategy
GE Internal Presentation
55
e-Business Value
56
e_at_GE
Digitization provides ways to improve our
customer interface and work on our own internal
productivity at the same time. It is just
beginning. Our investments in information
technology will grow about 15 this year. It is
really going to help us transform the cost base
of GE. Its going to help us buy better. Its going
to help us interface with customers better. But
primarily its going to help us in terms of the
inner workings of GE make us more efficient,
leaner, and closer to the customer." -- Jeff
Immelt, Chairman and CEOCustomer City Swings,
April 2001
57
e-Business Organizational Approach
CEO
  • High Level Leader
  • Knows the Business
  • Track Record of Delivering
  • Well Respected - Great Team Player/Influencer
  • Understands Commercial Operations
  • Has or Can Play on Business Leader Staff

e-Business Leader
BD Leader
Marketing Leader
CIO
Other e-Business Functional Leaders
  • External or Internal
  • Internet Generation
  • Creative, Entrepreneurial
  • Start Up Experience
  • Marketing/IT Background
  • External Hire
  • e-Commerce Industry Experience
  • Business Savvy
  • Technical Expertise

CWC.com Leader Focus Enhance Build Your
Customer Web Center
Buy Side e-Commerce Leader
DYB.com/GYB.com Leader Focus Destroy Your
Business/ Grow Your Business
Chief Architect .Com Technical Team
Technical Functionality
Back End Infrastructure
GE Internal Presentation
58
e_at_GE Statistics Sell
After a year of trying web sales, it really
hadnt changed the world. Gary Reiner, CIO
GE, Forbes 4/30/2001
GE Annual Reports
59
e_at_GE - Sell Plastics-Overview
  • Company
  • Leading global manufacturer and distributor of
    plastics resins and plastics, including
    polycarbonate, ABS, SAN, ASA, PPE, PC/ABS, PBT
    and PEI resins.
  • 10K employees
  • 5.3 Billion in sales
  • Customers
  • Automotive (i.e. Ford), computers (i.e. Dell),
    telecommunications, appliances, optical media,
    packaging, and building and construction

www.geplastics.com
60
e_at_GE - Sell Plastics-Overview
  • 1994 - 1,500 pages of corporate literature,
    product information, press announcements,
    photographs, and design guides on the Net
  • 1997 - First to sell resins on the web
  • Today
  • industry's leading e-Commerce Web site
  • speeding up and simplifying the whole range of
    customer services
  • Voted best of the web (Forbes 9/18/2002)
  • Full service portal
  • 200,000 registered users, 20K visits/week, 2,000
    pages of online material

61
e_at_GE - Sell Plastics-Overview
  • gepolymerland.com
  • Web site designed to give an easy, super-fast
    way to manage a resin business
  • Provides information needed to stay on top of
    your business
  • Available 24 hours a day, seven days a week.

it's all about speed, efficiency and making
every minute count
www.gepolymerland.com
62
e_at_GE - Sell gepolymerland.com
  • Interact
  • Discussion groups
  • Chats
  • Career center
  • Calendar
  • Yellow Pages
  • Research
  • Material selection database
  • Technical Tips and case studies
  • Problem solving guidelines
  • Technical inquiries
  • Literature online
  • Buy
  • Real time orders online FAST
  • Shipping confirmation in minutes
  • Track and trace shipments
  • MSDS and Certifications online
  • secure Company information
  • Design Services
  • Part/toll design assistance
  • Computer-aided engineering services
  • Design questions

it's all about speed, efficiency and making
every minute count
www.gepolymerland.com
63
e_at_GE - Sell Plastics-Performance
2001 GE Annual Report http//www.line56.com/arti
cles/default.asp?ArticleID4086ml3
64
e_at_GE - Sell Plastics-Summary
  • Information on the net helps customers operate
    more productively and save money
  • product information
  • warehouse inventory
  • shipment status
  • 24x7 convenience

Chemical Week 5/10/2000
65
e_at_GE - Sell Plastics-Summary
  • Beyond transactions-long term value creation
  • Aim to draw in engineers, plant managers, and
    others
  • ColorXpress allows customers to match and order
    color chips
  • Vendor Managed Inventory (VMI) uses a
    proprietary online monitoring technology to
    monitor storage silos and stabilize order
    patterns for customers
  • Design Solution Centeroffers a full range of
    online technical software tools to aid in
    application development.
  • Content encourages repeat visits
  • Customer support/technical assistance
  • Educational offerings (online seminars)
  • 500 events in 2001
  • multilingual
  • reached 15,000 customers
  • Continually broadening its interactive base of
    knowledge

www.geplastics.com
66
e_at_GE - Sell Appliances-Overview
  • Company
  • GEA is nearly a 6 billion business in North
    America, Europe, Asia and South America.
  • Each year GEA sells more than 15 million
    appliances in 150 world markets under the
    Monogram, GE Profile, GE, and Hotpoint brand
    names.

www.geappliances.com
67
e_at_GE - Sell Appliances-Overview
Products
  • refrigerators
  • freezers
  • ranges
  • dishwashers
  • washing machines
  • dryers
  • microwave ovens
  • speed cooking ovens
  • room air conditioners
  • water filtration
  • softening and heating systems

Customers Retailers Individuals
68
e_at_GE - Sell Appliances-Overview
  • Kiosk based virtual inventory model
  • Program allows customers to walk into a Home
    Depot or Wal-Mart store, buy an appliance online
    at a kiosk, and select a delivery date/time
  • Web based systems at GE warehouses help
    coordinate fulfillment and promise deliveries
    within 15 minutes of customer specification
  • Manufacturer assumes all warehousing, delivery,
    and installation duties
  • Goal Making channel partners more successful

direct ship is going to be the differentiating
factor for competition in the future. There is
too much redundancy in the way that business is
conducted. Larry Johnston, CEO GE Appliances
Wolf, Alan, GEs Johnston Why the Web is
Imperative, Twice 10/23/2000
69
e_at_GE - Sell Appliances-Performance
GE Annual Reports
70
e_at_GE - Sell Appliances-Summary
  • Retail Win
  • No capital commitment by merchant
  • Registering sales of products that are not
    physically there
  • Elimination of inventory and delivery costs
  • Customer Win
  • Precision fulfillment system
  • GE Win
  • Increase revenue

Something as un-sexy as logistics has become the
game changer. GE Spokesperson
Wolf, Alan, Wal-mart Enters Majap Program with
GE Appliance Pilot Program, Twice 9/4/2000
71
e_at_GE - Sell Aircraft Engines
  • B2B web center that enables real-time
    transactions with 300 customers 24x7
  • Catalog of 250,000 parts
  • Order entry
  • Inventory status
  • Order/shipping status
  • Account information
  • Value added services
  • Enhancing customer productivity
  • Saved parts list
  • Configuration histories
  • Advanced search tools
  • On-line troubleshooting using fiber optic video

Competitors Pratt Whitney or Rolls Royce have
yet to develop anywhere near as effective a Web
Strategy as GE.
http//www.cio.com/sponsors/050100_ebiz_story2_sid
e5.html http//www.forbes.com/best/2000/0717/038
s01.html
72
e_at_GE - Sell Power Systems
  • Turbine Optimizer
  • Web based tool
  • Compares turbine performance with same models
    across the world
  • Shows dollar value of improvement
  • Ability to schedule service call for improvement

It used to take 2 weeks to analyze a problem,
now it only takes an hour.
http//www.forbes.com/best/2000/0717/038s01.html
73
e_at_GE Make Internal Processes Overview
  • Eliminate manual processes
  • Eliminate paper generating processes
  • Increases volume per sales rep
  • Reduce back office processes and increase front
    office face time with customer

Every process we can digitize will help reduce
our costs and further increase our speed -- both
key competitive advantages in today's
marketplace.
GE Internal Presentation
74
e_at_GE Make Internal Processes Overview
  • Finance
  • HR
  • Employee Evaluations
  • Employee Applications
  • Sales
  • invoicing
  • reconciling

75
e_at_GE Make Internal Processes Overview
  • Travel
  • Booking
  • Expensing
  • 2001 savings 200 million in improved
    efficiencies and reduced travel
  • Support Central
  • Education

GE Internal Presentation
76
e_at_GE Make Internal Processes
  • Stakeholders
  • Employees
  • Management
  • Stockholders
  • Customers

77
e_at_GE Make Internal Processes
2000 - 1.5 billion savings on streamlined
internal processes Future - 10 billion in
savings
e-Make is about streamlining processes and
reducing unit costs
http//www.pcmag.com/article2/0,4149,33527,00.asp
78
e_at_GE Buy
  • Stakeholders
  • Management
  • Stockholders

79
e_at_GE Buy
Negotiate ? e-Auction Everything
  • real-time online purchasing auction for both
    incumbent and non-incumbent GE suppliers
  • reverse auction
  • allows GE purchasing managers to monitor
    competitive pricing and drive down total costs
  • 3 billion worth of goods and services on
    auction (2000)
  • businesses achieved 10-20 price deflation
    across the board

GE Internal Presentation
80
e_at_GE Buy
Transact Capture ? Digitally Capture All
POs, Invoices, Payments
  • easier to obtain current data
  • fewer errors in purchase orders
  • quicker turnaround reconciling bills

GE Internal Presentation
81
e_at_GE Buy Supplier Workflow
GE Internal Presentation
82
e_at_GE Buy
Constrict ? Usage
Implement Automated Workflow Approvals 5
on 20B 1B Contract Adherence Establish
One Data Source for Pre-Negotiated Contracts
3 on 20B 600M Productivity Streamline
Sourcing Process 5 of 3000 people 20M
GE Internal Presentation
83
e_at_GE Buy Summary
  • Savings
  • 2001 Anticipated 600 million in savings
  • Transactions
  • 2000 6 billion transactions
  • 2001 15 billion transactions
  • Future 30 billion transactions

e-Buy is about buying smarter and processing more
efficiently
http//www.pcmag.com/article2/0,4149,33527,00.asp
84
e-Business Value
Competitive Advantage through differentiation
(value added customer services) and cost reduction
85
e_at_GE
e-Business strategy continues to build on the
business model that has enabled the company to
outpace SP 500 earnings growth through every
cycle
http//www.ge.com
86
e_at_GE
Digitization mandate - Straight from the top
IT leveraged to cut costs and differentiate
  • Differentiation
  • Online tools and services
  • Increased front office operations

Digitization is changing our relationship with
our customer. At the customer for the customer
(ACFC)-the way that we differentiate.
http//www.ge.com
87
IT as a Competitive Weapon - Sustainability
Sustainable Advantage
Do our case studies have sustainable advantage
? Sabre GE (Plastics, Appliances)
Supply System Analysis
Competitor Analysis
Project Life-cycle Analysis
Lead Time
Competitive Asymmetry
Pre-emption Potential
IT as a Basis for Sustainable Competitive
Advantage, Feeny Ives
88
Web Business Staying Power
  • Simplicity
  • Applying traditional business thinking to a new
    channel
  • Use web to improve business and create valuable
    services
  • Awareness of customer needs
  • e-Business is a constantly moving target
  • Need for sound relationships

http//www.cio.com/archive/120101/power_content.ht
ml Davidson, Stephen, B2B ExchaangesLessons
from the Trading Pit, Journal of Internet Law,
4/2002, v5 i10 p1(10)
89
IT as a Competitive Weapon - Summary
IT can be used as a competitive weapon through
cost reduction and differentiation
Very few companies sustain competitive advantage
using IT
IT projects need to be evaluated for
sustainability in addition to traditional risk
e-Business is a constantly moving target
90
Future of IT
Competitive Advantage?
or
Competitive Necessity?
Write a Comment
User Comments (0)