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Synergies

Synergies. The idea of synergies is that when the output of sum units can be used inputs to other units or two organization pool market and expertize these relationships lower cost andgenerate profit. .

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Synergies

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  1. Synergies • The idea of synergies is that when the output of sum units can be used inputs to other units or two organization pool market and expertize these relationships lower cost andgenerate profit.

  2. Core competency is an activity for which afirm is aworld class leader . way to use IS for competitive advantage is using system to nhance cor competencies . The argnment is that the proformance of firms will icreaseinsofer as these business unit developacentralcorcopetency. core competencies

  3. Network economic • Economic factories and agriclture production experiences diminishing returns .the more any givin resources is applied to production , the lower the marginal gain in output , until apoint is reached where the additional input produce no additional output.this is the law of diminishing returns and its foundation for most modern economic .

  4. Network based strategies Tecnology have strategies the take advantage of firms abilities to creat networks ,networke based strategies include 1-network economic 2- virtual company 3- business ecosystem .

  5. Virtual company • Its organization uses networks to link people asset ideas enabling it to ally with other companies to creat and distrbute production and sevices without limited by traditional organizational boundaries or physical location .

  6. Business ecosystem • The concept of business ecosystem builds on the idea of the value web describe earlier .the main defference being that the corporation takes place across many industries rather than many firms .

  7. Sustaining competetive advantage • Copmetetiveadvantegs is not always sustaining , its changes globalization has made thes changes even more and rapid and unpredictablethe internet can make competitive a dvantegs quickly because all firms uses the tecnolegy .

  8. Aligning IT with business objective • A- Research on IT has found : • more successfully afirmcan align information tecnology with business goals and more profit • B- only one quarter of firms avhieve alignment of IT with business .

  9. Peforming a stategic system analsis • Manegersahould ask the following questions : • 1-what is the structure of the industry in which the firm located ? • 2- what are the business ,firm,industry value chains for this particular firms? • 3- have we aligned IT with our business strategy and goals? These questions help manegers to proform strategic system analysis.

  10. Strategic transition • Amovement between levels of sociotechnical systems

  11. Management decion problems • Examples about manegement decision problems : • 1-macys through its subsidiaries opreatesopproximately 800 department in US ,senior manegment decided that maycs needs to tailor merchandise more to local tastes .

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