Business idea

11/08/2022

In any company, IT has a dominant effect on competitive
advantages in either cost or differentiation. The technology
also affects value activity themselves or allows companies to
gain competitive advantage by utilizing changes in
competitive scope. Porter (1996) stated; the IT is affecting
competition in three fundamental ways:
• It changes industry structure and, in so doing, alters the
rules of competition.
• It creates competitive advantage by giving companies new
way to outperform their rivals.
• It spawns whole new business, often from within a
company’s existing operations.

11/08/2022

About strategic, competitive advantage plays a fundamental
role in the success of a given business within its sector.
Information technology has become fundamental to
acquiring competitive advantage. The combination of
process improvements, cost reductions, communications and
quality assurance all contribute to the competitive advantage
of a business unit. However, the constant identification and
analysis of new risks and opportunities are critical to the
ongoing success of a business. Evolving Internet aggregation
technologies, including social networks, blogs and
subscription databases, are becoming important tools needed
to achieve and maintain advantages within the business
sector. The transfer of information is a significant impact of
information technology in business. Companies gather
information from both internal and external sources with
more efficiently than in previous years. Email is now a
common form of business communication that results in
near-instant messages that deliver important information.

10/08/2022

The strategic role of information systems involves using
information technology to develop products, services, and
capabilities that give a company strategic advantages over
the competitive forces it faces in the global marketplace.
This creates strategic information systems, information
systems that support or shape the competitive position and
strategies of an enterprise. So a strategic information system
can be any kind sentence of information system (TPS, MIS,
DSS, etc.) that helps an organization:
1) Gain a competitive advantage
2) Reduce a competitive disadvantage
3) Meet other strategic enterprise objectives

10/08/2022

A BPR program will fail if:
• It is seen as a way to make minor adjustments and
improvements to existing processes. If there is no clear
willingness to put all existing process onto the chopping
block, there is no chance of success.
• It is seen as a one-time cost cutting exercise. In reality,
cost reductions are often a handy by product of the activity
but not the primary concern. It is also not a one-time
activity but an ongoing change in mindset
• There is no success in gaining dedicated long term
commitment from management and the employees.
Bringing people onboard is a difficult task and many BPR
initiatives never take off because enough effort is not put
into securing support
• There is less effort to redesign and more to automate.
• One department is prioritized at the expense of the
process. There needs to be an openness towards studying
every single process in detail and a willingness to change
whatever is needed to achieve overall efficiency.
• There is too much internal focus and not enough of an eye
on the industry and what competitor best practices can be
used as benchmarks.

09/08/2022

A BPR program can be successful if:
• There are cost advantages to be achieved that help the
organization become more competitive in its industry
• A strategic view of all operational processes is taken with
relevant questions being asked about the established way
of work and how it can be developed over the long term
into more efficient business practices.
• There is a willingness to look beyond tasks and traditional
functional boundaries with a focus outcomes.

09/08/2022

Adapting the organization: Managing change brought about
by BPR activities is the final effort towards a successful
project. Providing updated documentation, organizational
structures, governance models as well as updated charts of
authority and responsibility leave little room for confusion
and allow a smooth transition into the new way of work.

09/08/2022

Information system and technology capabilities: An
efficient and relevant IT system is an essential BPR enabler.
Without such a system, it is not possible to keep a check on
all factors affecting the change. Before setting out on a
radical BPR activity, it is vital to set in place information
systems that can deal with the magnitude of the change.
Design, build and test the new prototype: Before any new
product is launched, a prototype is tested out. A failure at a
testing stage should never be implemented at a larger scale.
BPR projects fail more often than not for a variety of
reasons but a basic reason is the inability to identify and
accept any limitations at the testing stage. Among other
factors, both the management’s attitude towards the new
way of work and the employees’ outlook towards the change
should be carefully assessed.

08/08/2022

Indeed, such ability depends on a firm’s external fit because external fit
stimulates a positive attitude from actors in the external business environment toward the
firm, thereby enabling firms to become embedded within the local landscape and within
social networks in which economic transactions at the BoP are blend (Narayan & Pritchett,
2000; Sánchez, Rodriguez, & Ricart, 2005; Tsai & Ghoshal, 1998). Such embeddedness
enables firms to deal with market imperfections in the BoP business environment as it
enhances legitimacy and trust, which may function as a governance mechanism
(Nooteboom, Berger, & Noorderhaven, 1997; Petersen & Pedersen, 2002; Zaheer, 1995)
and can be a substitute for legal contracts (Granovetter, 1985). Embeddedness also enables
firms to build transaction capacity with the local business ecosystem (Hart, 2005; Letelier
et al., 2003; Miller, 1996a). This includes building transaction transparency, a shared set of
values, fairness and equality in transactions, and respect for agreements, irrespective of
whether these are explicit or implicit and whether they are legal or social (Hart, 2005;
Prahalad, 2005).

08/08/2022

One way that external fit enhances effectiveness and efficiency is by advancing a
firm’s ability to deal with market imperfections in the BoP business environment thereby
stimulating financial performance. As argued by Viswanathan et al. (2007), assumptions
that hold for markets at the top-of-the-pyramid may not hold at the BoP. These include the
absence of information asymmetries, the absence of market frictions, the assumption that
government expenditure is in the best interest of the constituents, and well-developed and
upheld legal codes. Therefore, a firm’s financial performance depends directly on the
extent to which its business model is capable of dealing with these market imperfections.
Dealing with these market imperfections requires personal relationships (Viswanathan et
al., 2007). I

08/08/2022

Learn it

4. Expanded Research Agenda
The expanded research agenda is summarized in Figure 2. IT embeddedness is a central concept
that is tied to co-creation of value, information mindset, and value expansion. It is important to note
that desired business capabilities drive IT embeddedness. Therefore, effective convergence of
desired business capabilities and IT capabilities is a prerequisite to realizing capabilities between
organizations (co-creation), creating information value (information mindset), and ultimately realizing
a wide repertoire of value (value expansion).

08/08/2022

We contend that the role of information in enabling business capabilities deserves a distinct place in
the IT value research agenda. This is because information, with or without technology, can improve
business capabilities and even creates new capabilities. IT-izing a capability (discussed above) has a
dual impact on information value. First, the embedded IT enables a mechanism to gather continuous,
consistent, and expansive data about processes, products, customers, and their interactions. For
example, an embedded RFID chip is a part of the digital tracking capability for the movement and
storage location of pallets of a chemical compound. However, it also enables information gathering
that can be used to further improve this business capability (e.g., optimized routing of pallets) or
create another one (e.g., better service through real time tracking by customers).

02/08/2022

The articles of incorporation — or a certificate of incorporation — is a comprehensive legal document that lays out the basic outline of your business. It's required by every state when you incorporate. The most common information included is the company name, business purpose, number of shares offered, value of shares, directors, and officers.