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22 Cards in this Set
- Front
- Back
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What is Labour productivity and its ratio? |
It's the ratio of dividing the total GDP of a country divided by the total paid hours worked. |
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Why is increasing labour productivity important? |
It is the best measure for growth in Canada, as Canada's economy has been stagnant in the last couple years as it produces around $50/hour against the US and Norway who are at 67 and $75 respectively. Increasing productivity is all about working smarter through the use of innovation |
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What is the productivity Paradox? |
The productive paradox was created by Robert Solow and it speaks about how an increase in information technology does not lead to an increase in productivity. |
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What are 3 different ways IT can benefit by investing into IT |
1. Investing in productivity, it allows companies to eliminate humans doing small tedious tasks, and automatic tasks
2. Changing the structure of competition, by having one firm increase their IT department, it forces other companies to help keep up and invest in their IT department. 3. By helping end customers, it allows for investments in IT that will help make services much quicker and cheaper for customers |
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What is the difference between Efficiency and Effectiveness |
Efficient is about doing this right with minimal cost and latency in productivity
Effectiveness is: about doing the right thing, or offering goods and products that consumers find valuable |
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What employment trends are we seeing |
More high end and low end jobs but middle class end jobs are being replaced by technology
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What is a Porters Value Chain |
A network of activities that help create value and margins in products and services through each step of the business process |
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What are the two kinds of activities of a value chain
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There are primary and support activities
1. Primary: are activities that add direct value to the customer or service. Primary activities lead to an increase in cost and value so there has to be a margin of chain 2. Support: indirect response to benefitting customers like payroll system. Also add value and costs but much harder to calculate |
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What do primary activities cover on the value chain |
1. Inbound/outbound logistics: receiving and distributing products
2. Sales/Marketing 3. Operations: using inputs to modify final product 4. Services: Supporting cx through use of product |
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What do Support activities cover |
1. infrastructure costs: maintenance of the buildings
2. Technology investments 3. Human resources 4. Procurement |
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What are the two types of streams in the manufacturing industry |
Moving down the stream, which is the process of a company taking a raw product and moving towards front end customers Moving up the stream is when stores such as coffee shops begin to make their own raw goods. |
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How are organizational strategy and industry structure related? |
- AN organizations strategy reflects how it plans to meet its goals and objectives. - A companies strategy is based off the competitive structure of the industry that the company is in - A companies IT strategy has to match that of the companies general goals and objectives |
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What forces determine the competitive industry structure? (Porters, five force model) |
1. Bargaining power of cx's (customers) 2. Threat of substitutions (substitute vendors) 3. Bargaining power of suppliers (suppliers) 4. Threat of new entrants (new rivals) 5. Rivalry among existing firms. |
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Describe the steps of competitive strategies
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The competitive forces that suggest a particular structure for the industry Firms base their competitive strategies of those forces, as they use their strategies to plan out how to respond to a certain industry structure. A companies IT strategy should help complement the companies overall goal. |
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Porters 4 Competitive Strategies |
1. Cost leadership across the industry (Cost, Industry wide) 2. Cost leadership focused on a specific segment in an industry (Cost, focus) 3. Differentiation across the industry (differentiation, industry wide) 4.differentiation focused on a specific segment in an industry (differentiation, focus) GOALS, OBJECTIVES, CULTURE AND ACTIVIES MUST BE IN LINE WITH STRATEGY |
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What changes happen through innovation, and which through technology? |
When it comes to changing structures it often goes through innovation Innovation comes through the application of Technology |
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Two types of technologies |
Sustaining: new technologies that maintain the rate of improvement for customers. Compare new mainstream technologies to old mainstream technologies Disruptive: Introduce a new package of attributes to the accepted mainstream |
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Explain the process of Diffusion of innovation |
1. Knowledge: The moment you first hear of a new product. 2. Persuasion: when you start getting intrigued by the product and you begin to familiarize yourself with it 3. Decision: This is where you outweigh the pros and cons of the product 4. Implementation: Where you have it and see if you like it or not 5. Confirmation: the final stage is where you're content with the product and decide to keep it |
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Technology Cycle |
Innovators Early Adopters CHASM Early Majority (The tornado) The bowling alley Late Majority (Main Street) Laggard (End of life) |
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Why do companies innovate? and what are the two types of innovation |
they innovate to find a competitive advantage 2 types of innovations 1. Products: By creating new products, differentiation, or enhancing products 2. Business Processes: Locking in cx (high switching cost), Locking in supplies (making it easy to work and communication with organiz. Create Entry barriers (make it expensive for new competitors. Establishing allies (establish standards,promote product awareness), Reduce costs (increased profitability). |
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Information technology short term |
IT can provide short term advantages BUT: 1. will it last? (ATM's) 2. Competitors often react by copying 3. The more ubiquitous (found everywhere) the less the competitive advantage it provides |
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Information Technology Long term |
Companies must integrate technology with people and procedures inside of organizations - while competitors can purchase the technology it takes a long time for people to be trained and gain the necessary experience - Trying to match high IS created a high bar for competitors to reach and it will be very costly for them |
