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Business Strategy Analysis

Enterprise 2.0 as a Strategic Systems

Technology

Case Study

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Informs business strategy

Competitive forces include Bargaining power of suppliers and customers

Competitors adapt their strategies to maintain market position

New market entrants: new companies or substitute product and service offerings

Internet age: fiercer competition intensifying the above (e.g. price bargaining)

Porter sees it somewhat negatively–

the reality is that the internet also produces newopportunities

IS can support partnerships with other firms to develop industry wide standards forinformation exchange & transactions

Improves efficiencies

Reduces risks from new entrants: increased entry costs, reduced product substitutions Establish value webs

Links/helps response to government agency, institutions etc.

We will see this in Online Business Ecosystems...

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Web 2.0 represents an important shift in the way digital information

is created, shared, stored, distributed, and manipulated.

In the years ahead, it will have a significant impact in the way

businesses use both the Internet and enterprise-level IT applications.

Web 2.0 describes a set of next-generation Internet technologies.

These protocols and tools make it easier to create online

applications that behave dynamically, much like traditional PC-basedsoftware.

They're also highly social, encouraging users to manipulate and

interact with content in new ways.

Web 2.0 pushes computing power off the desktop and onto the

Internet

As a general rule, Web 2.0 tools are also less expensive than

traditional software — and many are even free.

Because they're Web-based, all you need to get started is an up-to-

date browser.

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Web (1990s)>>

Web 2.0 (2000s) >>

Web 3.0 (2010s)

>>.....

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1. Community-driven Content in which participants

share information, even inside firewalls (e.g. intranetcollaborative group decision systems)

2. Involves complex, hard-to-create data sources that getricher the more people use them

3. Services (not software) with cost-effective scalability4. Lightweight user interfaces, development and business

models e.g. Facebook

5. Trusting users as co-developers

6. Harnessing collective intelligence7. Leveraging the Long-tail through customer self-service

8. Software above the level of single device

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Customers e.g. Amazon.com

Suppliers e.g. Ariba.com

Alliance partners e.g. ANX.com

As well as...

Regulators (eGovernment solutions), ProfessionalNetworks (e.g. Linked In) etc.

And...

Employees....

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Enterprise 2.0 uses Web 2.0 in the Enterprise

Sometimes called ―Enterprise Social Software‖

Use of freeform social networking platforms inorganisations: wikis, social nets, web feeds, blogs..

Managers care about use: ―Enterprise 2.0 is really

about how the technologies are used (not aboutwhat the technologies are)‖

 Andrew MacAfee: principal research scientist at the Center for DigitalBusiness in the MIT Sloan School of Management

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Classic WIKI Knowledge Base -Wikipedia

WIKIs and collaborative work

WIKIs Application Software

ExampleMindquarry

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Long Tail: information technology in general andInternet markets in particular could substantially

increase the collective share of hard to findproducts by greatly lowering search costs/. Thiscreates a longer tail in the distribution of sales

Leveraging the long tail - blogging

1. a small number of weblogs have many links going into them

2. "the long tail" of millions of weblogs may have only a handfulof links going into them

3. businesses with distribution power can sell a greater volume

of otherwise hard to find items at small volumes than of popular items at large volumes

e.g. Amazon described their Long Tail as follows: "We sold morebooks today that didn't sell at all yesterday than we sold todayof all the books that did sell yesterday‖

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lightweight integration and composite applicationdevelopment, often by end-users, directly to lines

of business.

Enterprise Mashup services are now offering highly

capable solutions. Examples: Mashup Solutions and How They Work

Corizon‘s Enterprise Mashup Platform

Introduction to how it works

Example of Creating A Mashup Using IBM tools

Presto from Jackbe.com (check out ―creating an app‖)

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Web 2.0 capabilities clearly have strategic

organisational importance

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1. Visit Stoneyfield Farm website. How are they using social networking

technologies in the business? – 10 minutes2. Read through the Case Study – 10 minutes

3. Organise into groups: Appoint a recorder – to record the discussion and

to present the findings. Appoint a chairperson to keep the discussion on

track and watch time

Spend 40 minutes answering the following questions:1. Using Porters CFA, analyse Stoneyfield Farms strategic position. What

challenges and problems does Stoneyfield Farm face?

2. What are the advantages of using blogs for Stonyfield Farm‘s business?

3. What are the disadvantages of using blogs for Stonyfield Farm‘s

business?4. What are the core values of Stoneyfield? How are these values

expressed in their use of IS in their business?

5. Prepare and summarise discussion notes. Bring your findings back to

class.

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We can conclude that the composition of an

organisation and the attitudes, norms and behavioursof organisations, their ‗culture‘, are vitally important

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The prevailing culture in the organisation is important

for the role of new technology

We saw this at Stoneyfield Farm

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Homework / activity

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1. Sign your name and place the same number youused for the first questionnaire on the first page of the sheet. Only you and I will ever know the nameand number

2. Work your way carefully through the SAVI2 values-

at-work questionnaire3. Fold up your questionnaire

Be careful! The questionnaire is tricky to complete

Don‘t forget to place your number and name on eachcompleted questionnaire

Hand the questionnaire back to the lecturertomorrow first thing

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