Chapter 1: Real World Case WH Smith PLC

1
Chapter 1 Real World Case WH Smith PLC

• Why did WH Smith need a new retail management
  system?
• What were their goals? How well did the system
  meet the goals?
• How has the staff been included in the process?
  Is this important? Why or why not?

2
Chapter 1 Quiz True/False

• One of major components of an Information System
  (IS) is the people resource. The people resources
  of an information system deals exclusively with
  the IS specialists.
• Since 1960s information systems have been widely
  available to a broad spectrum of end users.
• The number 1,023 is an example of data, while the
  fact that a customer's account balance is 1,023
  is information.
• E-Business is defined as the use of Internet
  technologies to internetwork and empower business
  processes, electronic commerce, and enterprise
  communication and collaboration within a company
  and with its customers, suppliers, and other
  business stakeholders.
• WH Smiths web-based SCM system allows its store
  managers to easily access sales and inventory
  data.

3
Chapter 2 Learning Objectives

• Michael Porters 5 Competitive Forces Model
• Value Chain Competitive Strategies
• Strategic Use of Information Technology

4
Porters 5 Competitive Forces Model
http//www.investopedia.com/features/industryhandb
ook/porter.asp
5
The Value Chain
Views a firm as a series, chain, or network of
activities that add value to its products and
services.
6
Competitive Strategies

• Cost Leadership (e.g. Wal-Mart)
• Differentiation (e.g. Nordstrom)
• Innovation (e.g. eBay)
• Growth (e.g. Starbuck)
• Alliance (e.g. Sears, LandsEnd)
• Others (e.g. lock in customers/suppliers, high
  switching cost, barrier to entry, etc.)

7
Strategic Uses Of Information Technology

• Focus on the customer (e.g. CRM)to deliver
  high(er) customer value
• Business Process Reengineering (BPR)for cost,
  quality, speed, and service improvements
• Total Quality Management (TQM) from customers
  perspective (e.g. Six Sigma) to improve business
  quality
• Agility
• Virtual company

8
An Agile Company

• Provides solution to customers (unique)
  individual problem value-based pricing
• Be able to cooperate with customers, suppliers,
  other companies/competitors
• Is organized so that it can thrive on change and
  uncertainty
• Leverages impact of people and their knowledge

9
A Virtual Company

• IT links people, assets, and ideas
• Forms virtual workgroups and alliances with
  business partners (with complementary core
  competencies)
• Shares infrastructure risk with partners
• Gains access to new market (market shares)
  customers
• Inter-organizational (Enterprise-wide) IS