Conducting an Industry Analysis – OTIS

Description – Management Information Systems – Conducting an Industry Analysis For this project, assume that you are a mid-level manager at OTIS. You have been asked by the CIO of your organization to prepare a report that analyzes the company’s current strategic position in the market and recommend at least two information systems that would improve the organization’s current strategic position or make it a market leader. You may recommend more than two if you like. Out of the two information systems, identify which one would be more feasible to implement in the organizations. Justify your answer. Use the following list of suggestions to help you write the report. 1. Define the firms’ industry and where it is positioned in the value chain. 2. Describe the firm relative to Porter’s five competitive forces. 3. You may also find it useful to analyze the websites of the organization’s top two or three competitors. 4. What is the firm’s business strategy(ies): cost leadership, differentiation, niche, growth, and/or innovation? 5. In what way(s) is the organization using its current IT infrastructure and information resources to fulfill that business strategy(ies)? 6. Based on your research so far, identify and describe in detail ways in which IT can help the firm achieve a better market strategic position or perhaps even a competitive advantage. Below are a few examples to trigger your thoughts: a. Innovative applications: Federal Express was the first company in its industry to use IT for tracking the location of every package in its system. FedEx was also the first company to make this database accessible to its customers over the Internet. FedEx has gone on to provide e-fulfillment solutions based on IT and is even writing software for this purpose b. Competitive weapons: Amazon.com’s one-click shopping system is considered so significant and important to the company’s reputation for superior customer service that it has patented the system c. Changes in processes: Berri is Australia’s largest manufacturer and distributor of fruit juice products. The principal goal of its enterprise resource planning system implementation was “to turn its branch-based business into a national organization with a single set of unified business processes” in order to achieve millions of dollars in costsavings. Other ways in which IT can change business processes include better control over remote stores or offices by providing speedy communication tools, streamlined product design time with computer-aided engineering tools, and better decision-making processes by providing managers with timely information reports d. Links with business partners: Rosenbluth’s Global Distribution Network allows it to connect agents, customers, and travel service providers around the globe, an innovation that allowed it to broaden its marketing range e. Cost reductions: A Booz, Allen & Hamilton study found that: a traditional bank transaction costs $1.07, whereas the same transaction over the Web costs about 1 cent; a traditional airline ticket costs $8 to process, an e-ticket costs $1 (ibm.com/partnerworld/pwhome.nsf/vAssetsLookup/ad2.pdf/$file/ad2.pdf). In the customer service area, a customer call handled by a live agent costs $33, but an intelligent agent can handle the same request for less than $2 (Schwartz, 2000) f. Relationships with suppliers and customers: Master Builders sells chemical additives that improve the performance characteristics of concrete. The company offers customers MasterTrac, a tank-monitoring system that automatically notifies Master Builders when additive inventories fall below an agreed-on level. Master Builders then resupplies the tanks on a just-in-time basis. The customer benefits from an assured supply of product, less capital tied up in inventory, and reduced inventory management time and processing. Master Builders benefits because competitors face a more difficult task to convince concrete companies to switch to them (Vandenbosch and Dawar, 2002) g. New products: Federal Express’s package-tracking software is one example. In Australia, ICI Explosives no longer views its business model as just selling explosives; it now also writes contracts for broken rock. ICI engineers developed computer models that specify drilling procedures and explosives use for different types of rock faces to produce rock in the sizes that the customer needs. According to Vandenbosch and Dawar (2002), “The redefinition of ICI’s role not only generated much higher margins for the business, it also gave ICI a much more defensible competitive position” h. Competitive intelligence using data analytics