企业信息化概述

1南京理工大学机械工程学院工业工程系

©NJUSTDep.OfIndustrialEngineering企业信息化EnterpriseInformatization2参考教材：1.《企业信息化教程》韦沛文等编著清华大学出版社2.《管理信息系统精要》肯尼思·C·劳东编著人民大学出版社3.ManagementInformationSystems-ManagingtheDigitalFirm,12thEdition

3本课程主要内容介绍企业信息化的基本概念，企业信息化整体解决方案、集成平台，应用实施等内容，使学生掌握企业信息化相关理论，以及实施方法和支撑环境等技术，注重企业远景规划、产品发展、管理变革信息技术支撑的良好匹配与协调，以适应未来数字化企业的要求。4TheCourseHelpYouLearnNonroutineSkillsThisisthebestcourseyouchooseforlearningthesefourkeyskills.AbstractReasoningSystemsThinkingCollaborationAbilitytoExperiment5AbstractReasoningistheabilitytomakeandmanipulatemodels.Systemsthinkingistheabilitytomodelthecomponentsofthesystem,toconnecttheinputsandoutputsamongthosecomponentsintoasensiblewholethatreflectsthestructureanddynamicsofthephenomenon.

Youwillbeaskedtocritiquesystems;youwillbeaskedtocomparealternativesystems;youwillbeaskedtoapplydifferentsystemstodifferentsituations.Allofthosetaskswillprepareyouforsystemsthinkingasaprofessional.6Collaboration

istheactivityoftwoormorepeopleworkingtogethertoachieveacommongoal,result,orworkproduct.Effectivecollaborationisn’taboutbeingnice.Infact,surveysindicatethesinglemostimportantskillforeffectivecollaborationistogiveandreceivecriticalfeedback.AbilitytoExperimentSuccessfulexperimentationisnotthrowingbucketsofmoneyateverycrazyideathatentersyourhead.Instead,experimentationismakingareasonedanalysisofanopportunity,envisioningpotentialsolutions,evaluatingthosepossibilities,anddevelopingthemostpromisingones,consistentwiththeresourcesyouhave.78第1章信息系统概述InformationSystemsinthe2010s9主要内容1.1PerspectivesonInformationSystems1.2PositioningITtoOptimizePerformance1.3BusinessPerformanceManagementandMeasurement1.4StrategicPlanningandCompetitiveModels1.5WhyITIsImportanttoYourCareer,andITCareers101.1PERSPECTIVESONINFORMATIONSYSTEMS1.1.1Informationinformationisknowledgederivedfromdatainformationisdatapresentedinameaningfulcontext，rmationisdataprocessedbysumming,ordering,averaging,grouping,comparing,orothersimilaroperations.具有一定意义和相互联系的事实表达。11data？dataisdefinedasrecordedfactsorfigures.原始始、、不不相相关关的的事事实实表表达达，，是是对对客客体体或或事事件件的的测测量量或或观观测测值值。。12Informationissubjective，thatmeansoneperson’’sinformationmaybeanotherperson’’sdata.Figure1-113数据据和和信信息息的的关关系系信息息是是我我们们对对数数据据的的解解释释，，或或者者说说是是数数据据的的内内在在含含义义。。数据据经经过过处处理理、、建建立立相相互互关关系系并并给给予予明明确确的的意意义义后后才才成成为为信信息息。。14什么么是是知知识识？？是对对信信息息的的推推理理、、验验证证。。从从中中得得出出系系统统化化的的规规律律、、概概念念或或经经验验。。知识识按按性性质质分分类类know-what，关关于于事事实实方方面面的的know-why，事事物物的的客客观观原原理理和和规规律律性性方方面面的的，，属属于于科科学学方方面面的的know-how技巧巧、、技技艺艺、、能能力力方方面面的的，，属属于于技技术术方方面面的的know-who，特特定定的的社社会会关关系系、、社社会会分分工工和和知知道道者者的的特特长长与与水水平平，，属属于于经经验验与与判判断断方方面面的的。。15前两两种种类类型型的的知知识识和和第第三三种种类类型型知知识识的的一一部部分分就就属属于于可可编编码码化化的的知知识识，，一一般般较较易易获获得得，，第第三三种种知知识识的的另另一一部部分分和和第第四四种种类类型型知知识识一一般般属属于于隐隐含含性性知知识识与与判判断断类类知知识识即即““意意会会知知识识””，，一一般般难难以以获获得得和和掌掌握握。。什么么是是智智慧慧？？16数据据管管理理：：对客客观观对对象象的的表表达达、、识识别别和和检检测测。。信息息管管理理：从从技技术术层层进进行行数数据据的的存存储储、、传传输输、、显显示示使使之之发发生生增增值值等等处处理理过过程程。。知识识管管理理：利利用用知知识识的的获获取取方方法法（（如如数数据据挖挖掘掘技技术术））与与管管理理领领域域知知识识相相结结合合进进行行的的创创新新。。17Allinformationisnotequal:Someinformationisbetterthanotherinformation.Figure1-218AccurateAccuracyiscrucial;managersmustbeabletorelyontheresultsoftheirinformationsystems.TheISfunctioncandevelopabadreputationintheorganizationifasystemisknowntoproduceinaccurateinformation.Insuchacase,theinformationsystembecomesawasteoftimeandmoney.Donotbemisledbyawell-formattedreport,orafancyquery,andactivegraphics.Whenyoubegintouseanewinformationsystem,beskeptical.Cross-checktheinformationyouarereceiving.19TimelyGoodinformationistimely—producedintimeforitsintendeduse.Amonthlyreportthatarrives6weekslateismostlikelyuseless.Aninformationsystemthattellsyounottoextendcredittoacustomerafteryouhaveshippedthegoodsisunhelpfulandfrustrating.NoticethattimelinesscanbemeasuredagainstacalendarYouneedtogiveappropriateandrealistictimelinessneeds.Insomecases,developingsystemsthatprovideinformationinnearrealtimeismuchmoredifficultandexpensivethanproducinginformationafewhourslater.Ifyoucangetbywithinformationthatisafewhoursold,saysoduringtherequirementsspecificationphase.20Consideranexample.Supposeyouworkinmarketingandyouneedtobeabletoassesstheeffectivenessofnewonlineadprograms.YouwantaninformationsystemthatnotonlywilldeliveradsovertheWeb,butthatalsowillenableyoutodeterminehowfrequentlycustomersclickonthoseads.Determiningclickratiosinnearrealtimewillbeveryexpensive;savingthedatainabatchandprocessingitsomehourslaterwillbemucheasierandcheaper.Ifyoucanlivewithinformationthatisadayortwoold,thesystemwillbeeasierandcheapertoimplement.21RelevantInformationshouldberelevantbothtothecontextandtothesubject.Consideringcontext,you,theCEO,needinformationthatissummarizedtoanappropriatelevelforyourjob.Alistofthehourlywageofeveryemployeeinthecompanyisunlikelytobeuseful.Morelikely,youneedaveragewageinformationbydepartmentordivision.22JustBarelySufficientInformationneedstobesufficientforthepurposeforwhichitisgenerated,butjustbarelyso.Weliveinaninformationage;oneofthecriticaldecisionsthateachofushastomakeeachdayiswhatinformationtoignore.Thehigheryouriseintomanagement,themoreinformationyouwillbegiven,and,becausethereisonlysomuchtime,themoreinformationyouwillneedtoignore.So,informationshouldbesufficient,butjustbarely.23WorthItsCostInformationisnotfree.Therearecostsfordevelopinganinformationsystem,costsofoperatingandmaintainingthatsystem,andcostsofyourtimeandsalaryforreadingandprocessingtheinformationthesystemproduces.Forinformationtobeworthitscost,anappropriaterelationshipmustexistbetweenthecostofinformationanditsvalue.Informationsystemsshouldbesubjecttothesamefinancialanalysestowhichotherassetsaresubjected.24信息的的基本本特征征真实性性。真真实性性是信信息的的第一一性，，不符符合事事实的的表述述没有有价值值。(2)增值性性。信信息的的增值值性即即指人人们通通过利利用信信息，，可以以获得得效益益。可可以从从时间间、内内容和和形式式三个个维度度，确确定人人们对对信息息的需需求，，从而而来确确定信信息的的价值值。准确性性衡量信信息的的真实实性的的程度度相关性性衡量信信息是是否能能很好好地反反映用用户所所关心心事物物运动动的状状态和和方式式，使使用户户通过过信息息把握握或控控制事事物的的发展展完整性性衡量信信息所所包含含的内内容是是否完完整地地反映映用户户所关关心事事物运运动的的状态态和方方式。。信信息的的表现现形式式有多多种，，例如如表格格、图图形、、文字字等，，而图图形又又分多多种。。而选选择表表现形形式需需要考考虑维维清晰晰性和和详尽尽性。。同样样一种种信息息，选选择的的表现现形式式不同同，信信息产产生的的价值值也会会不同同。及时性性反映信信息是是否能能及时时提供供给相相关的的用户户，新颖性性则测量量信息息是否否是及及时更更新的的。25（3）抽象象性必须区区分信信息的的载体体与内内容，，信息息有可可能在在不同同的载载体之之间转转化与与传递递。需需要注注意的的是，，人们们往往往将主主要注注意力力集中中在信信息的的载体体（例例如计计算机机网络络的建建设））或技技术手手段上上，而而忽略略了信信息的的内容容。（4）不对称称性由于各各种原原因的的限制制（如如专业业知识识、市市场需需求、、制作作技术术等）），在在市场场中交交易的的双方方所掌掌握的的信息息是极极不相相等的的，买买卖双双方掌掌握信信息的的程度度各有有不同同，这这就形形成了了信息息的不不对称称。26（5）滞滞后性性信息滞滞后于于数据据。信信息的的滞后后时间间包括括信息息的间间隔时时间和和加工工时间间。信息的的间隔隔时间间是指指获取取同一一信息息的必必要间间隔时时间。。信息的的加工工时间间是指指获取取某信信息由由数据据加工工所需需要的的加工工时间间。管理信信息系系统的的一个个基本本目标标就是是要缩缩短数数据的的加工工时间间。27（6）有效性性信息的增值值性只表现现在一定的的时间内。。过了这个个时期，信信息就不会会产生效益益，即信息息的有效性性。信息如同一一种产品，，具有其生生命周期。。信息的生生命周期即即指信息从从产生、收收集、加工工、传输、、使用到失失效的全过过程。28（7）共享性性信息不同于于与其他物物质资源，，它具有共共享性，不不具有独占占性，在同同一时间可可以为多人人所掌握。。这种共享享是一种非非零和的共共享，即共共享的诸方方受益、受受损是不确确定的，各各方因同一一信息而获获得的增值值并不等于于少数方独独占该信息息所获得的的增值。29（8）可扩散散性信息的可扩扩散具有两两种效应：：正效应是利利于知识的的扩散，节节省人力、、资金等资资源的消耗耗；负效应造成成信息的贬贬值，不利利于信息的的保密。要注重信息息的保密性性，减少信信息的扩散散的负效应应。在企业业内部，要要充分利用用信息的共共享性，在在信息有效效的时间内内，在内部部快速扩散散，对外部部则应该抑抑制信息扩扩散的负效效应。30（9）信息的的粒度（granularity）粒度用来度度量信息的的详细程度度。为信息的使使用者提供供不同粒度度的信息有有助于他们们能更好地地把握事物物运动的状状态和方式式。柳州产品品系列产品组组规格F5M42地区区国外国内大区省份城市时间间年-季-月-周-日4G63MPI4G64R5M214G63CARB上海广州一季二季三季四季销售量沈阳长春福州1.1.3InformationSystemsandInformationTechnology:CoreConceptsAninformationsystem(IS)collects,processes,stores,analyzes,anddistributesinformationforaspecificpurposeorobjective.Input.Dataandinformationaboutbusinesstransactionsarecapturedorcollectedbypoint-of-sale(POS)scannersandWebsitesandreceivedbyotherinputdevices.Processing.Dataistransformed,converted,andanalyzedforstorageortransfertoanoutputdevice.Output.Data,information,reports,andsoonaredistributedtodigitalscreensorhardcopy(paper),sentasaudio,ortransferredtootherISsviacommunicationnetworks.Feedback.Afeedbackmechanismmonitorsandcontrolsoperations.3132ManagementInformationSystems(MIS)thedevelopmentanduseofinformationsystemsthathelpbusinessesachievetheirgoalsandobjectives.Thisdefinitionhasthreekeyelements:developmentanduse,informationsystems,andbusinessgoalsandobjectives.33InformationSystem(IS)isanassemblyofhardware,software,data,procedures,andpeoplethatproducesinformation.FiveComponentsofanInformationSystem34Figure1-435Thesefivecomponentsaresymmetrical.Theoutermostcomponents,hardwareandpeople,arebothactors;theycantakeactions.Thesoftwareandprocedurecomponentsarebothsetsofinstructions:Softwareisinstructionforhardware,andproceduresareinstructionsforpeople.Finally,dataisthebridgebetweenthecomputersideontheleftandthehumansideontheright.Now,whenweautomateabusinessprocess,wetakeworkthatpeoplearedoingbyfollowingproceduresandmoveitsothatcomputerswilldothatwork,followinginstructionsinthesoftware.Thus,theprocessofautomationisaprocessofmovingworkfromtherightsidetotheleft.36Abusinessisnotalive,anditcannotact.Itisthepeoplewithinabusinesswhosell,buy,design,produce,finance,market,account,andmanage.So,informationsystemsexisttohelppeoplewhoworkinabusinesstoachievethegoalsandobjectivesofthatbusiness.37BusinessProcessesInformationProcessingActivitiesBusinessValueManagementActivitiesSupplyChainManagementEnterpriseManagementCustomerManagementKnowledgeManagementDataCollectionandStorageTransformationIntoBusinessSystemsDisseminationPlanningCoordinatingControllingModelingandDecisionMakingFirmProfitabilityandStrategicPositionABusinessPerspectiveonInformationSystemsFigure1-538InformationsystemsaremorethancomputersORGANIZATIONSTECHNOLOGYMANAGEMENTINFORMATIONSYSTEMSFigure1-639ORGANIZATIONSInformationsystemsareanintegralpartoforganizations.Thekeyelementsofanorganizationareitspeople,structure,businessprocesses,politics,andculture.Organizationsarecomposedofdifferentlevelsandspecialties.Expertsareemployedandtrainedfordifferentfunctions.Themajorbusinessfunctionsperformedbybusinessorganizations,consistofsalesandmarketing,manufacturingandproduction,financeandaccounting,andhumanresources.40Anorganizationcoordinatesworkthroughastructuredhierarchyandthroughitsbusinessprocesses.Thehierarchyarrangespeopleinapyramidstructureofrisingauthorityandresponsibility.Theupperlevelsofthehierarchyconsistofmanagerial,professional,andtechnicalemployees,whereasthelowerlevelsconsistofoperationalpersonnel.41Mostorganizations’businessprocessesincludeformalrulesthathavebeendevelopedoveralongtimeforaccomplishingtasks.Theserulesguideemployeesinavarietyofprocedures.Manybusinessprocessesareincorporatedintoinformationsystems.Organizationsrequiremanydifferentkindsofskillsandpeople.Inadditiontomanagers,knowledgeworkersdesignproductsorservicesandcreatenewknowledge,anddataworkersprocesstheorganization’spaperwork.Productionorserviceworkersactuallyproducetheorganization’’sproductsorservices.Eachorganizationhasauniqueculture,orfundamentalsetofassumptions,values,andwaysofdoingthings,thathasbeenacceptedbymostofitsmembers.Partsofanorganization’’sculturecanalwaysbefoundembeddedinitsinformationsystems.42MANAGEMENTManagement’’sjobistomakesenseoutofthemanysituationsfacedbyorganizations,makedecisions,andformulateactionplanstosolveorganizationalproblems.Managersallocatethehumanandfinancialresourcestocoordinatetheworkandachievesuccess.Butmanagersmustdomorethanmanagewhatalreadyexists.Theymustalsocreatenewproductsandservices.Asubstantialpartofmanagementresponsibilityiscreativeworkdrivenbynewknowledgeandinformation.Informationtechnologycanplayapowerfulroleinredirectingandredesigningtheorganization.43Managerialrolesanddecisionsvaryatdifferentlevelsoftheorganization.Seniormanagersmakelong-rangestrategicdecisionsaboutwhatproductsandservicestoproduce.Middlemanagerscarryouttheprogramsandplansofseniormanagement.Operationalmanagersareresponsibleformonitoringthefirm’sdailyactivities.Eachlevelofmanagementhasdifferentinformationneedsandinformationsystemrequirements.44TECHNOLOGYInformationtechnologyisoneofmanytoolsmanagersusetocopewithchange.ComputerhardwareSoftwarestoragetechnologyCommunicationstechnology45TheInternethascreatedanew“universal”technologyplatformonwhichtobuildallsortsofnewproducts,services,strategies,andbusinessmodels.Thissametechnologyplatformhasinternaluses,providingtheconnectivitytolinkdifferentsystemsandnetworkswithinthefirm.InternalcorporatenetworksbasedonInternettechnologyarecalledintranets.Privateintranetsextendedtoauthorizedusersoutsidetheorganizationarecalledextranets,andfirmsusesuchnetworkstocoordinatetheiractivitieswithotherfirmsformakingpurchases,collaboratingondesign,andotherinterorganizationalwork.46InformationTechnology(IT)referstoallofthecomputer-basedinformationsystemsusedbyorganizationsandtheirunderlyingtechnologies（theproducts,methods,inventions,andstandardsthatareusedforthepurposeofproducinginformation.）Informationtechnologiesandsystemsarerevolutionizingtheoperationoffirms,industries,andmarkets.ThebusinessvalueofITisdeterminedisdeterminedbytherelationshipsamongISs,people,andbusinessprocesses——allofwhichareinfluencedstronglybyorganizationalculture.47MajorCapabilitiesofISsandSupportedBusinessObjectivesPerformhigh-speed,high-volume,numericalcomputations•Providefast,accuratecommunicationandcollaborationunrestrictedbytimeandlocation•StorehugeamountsofinformationthatisaccessibleviaprivatenetworksandtheInternet•Automatesemiautomaticbusinessprocessesandmanuallydonetasks.•EnableautomationofroutinedecisionmakingandfacilitatecomplexdecisionmakingIScapabilitiessupportthesebusinessobjectives:•Improveproductivity(productivityisameasurementortheratioofinputstooutputs)•Reducecostsandwaste•Improvetheabilitytomakeinformeddecisions•Facilitatecollaboration•Enhancecustomerrelationships•Developnewanalyticcapabilities•Providefeedbackonperformance4849CONTEMPORARYAPPROACHESTOINFORMATIONSYSTEMSTechnicalApproachesBehavioralApproachesManagementScienceOperationsResearchSociologyEconomicsComputerSciencePsychologyThetechnicalapproachtoinformationsystemsemphasizesmathematicallybasedmodelstostudyinformationsystem.Computerscienceisconcernedwithestablishingtheoriesofcomputability,methodsofcomputation,andmodelsofefficientdatastorageandaccess..Managementscienceemphasizesthedevelopmentofmodelsfordecision-makingandmanagementpractices.Behavioralissuesincludestrategicbusinessintegration,design,implementation,utilization,andmanagement.Operationsresearchfocusesonmathematicaltechniquesforoptimizingselectedparametersoforganizations,suchastransportation,inventorycontrol,,andtransactioncosts.1.2PositioningITtoOptimizePerformanceDuringthe2010s,managersareexploringnewstrategiestoimprovebusinessperformance,orprofitability.Oneapproachistodeveloptheagilityneededtoidentifyandcaptureopportunitiesmorequicklythanrivals.Organizationscanbenefitfromopportunitiesmadepossiblebyhighperformancemobiledevicesandhigh-speedmobiletelecommunicationnetworks.Examplesarethe3Gand4Gnetworksofcellularserviceproviders.Mobiletechnologyhastorndownthewallsbetweenourbusiness,professional,andpersonallives.50OrganizationsdependonITtobeabletoadapttomarketconditionsandgainacompetitiveedge.Thatcompetitiveadvantageisshort-livedifcompetitorsquicklyduplicateit.Noadvantageisverylong-lasting.Therefore,companiesneedtoupgrade,develop,and/ordeploynewISstoremaininthecompetitivegame.Duringthelastdecade,companieswereadaptingtosocialnetworking,andbecameextensionsofbusinessestoreachcustomers,prospects,andbusinesspartners.51Abusinessmodelisamethodofdoingbusinessbywhichacompanycangeneratesalesrevenueandprofittosustainitself.Themodelspellsouthowthecompanycreatesoraddsvalueintermsofthegoodsorservicesthecompanyproduces.Somemodelsareverysimple.Forexample,Applemakesandsellscellphonesandgeneratesprofitfromthesesales.Ontheotherhand,aTVstationprovidesfreebroadcasting.Itssurvivaldependsonacomplexmodelinvolvingfactorssuchasadvertisersandcontentproviders.52Acomprehensivebusinessmodeliscomposedofthesesixelements:1.Adescriptionofallproductsandservicesthebusinesswilloffer2.Adescriptionofthebusinessprocessrequiredtomakeanddelivertheproductsandservices3.Adescriptionofthecustomerstobeservedandthecompany’srelationshipswiththesecustomers,includingwhatconstitutesvaluefromcustomers’perspective(customers’valueproposition)53Acomprehensivebusinessmodeliscomposedofthesesixelements:4.Alistoftheresourcesrequiredandtheidentificationofwhichonesareavailable,whichwillbedevelopedin-house,andwhichwillneedtobeacquired5.Adescriptionoftheorganization’’ssupplychain,includingsuppliersandotherbusinesspartners6.Adescriptionoftherevenuesexpected(revenuemodel),anticipatedcosts,sourcesoffinancing,andestimatedprofitability(financialviability)541.3BusinessPerformanceManagementandMeasurementPerformanceismeasuredbyhowwellthosegoalsandobjectivesaremet.Despitehowsimplethissounds,measuringbusiness(ororganizational)performanceisextremelychallenging.Howdoyoumanageperformance?Assumethatacompany’’sgoalsareincreasedsalesandimprovedcustomerloyalty.Salesrevenueisarathereasy-to-calculatequantitativemetric.Incontrast,customerloyaltyisaqualitativemetricandprobablyhasalongertimedimension.Youcanimmediatelyknowhowmuchcustomershavepurchasedonaparticularday,butnothowmanycustomersyou’’velostthatday.55Inordertomanageperformance,twofundamentalrequirementsare:（1）Beingabletomeasure.Youcannotmanagewhatyoucannotmeasure.Statedinreverse,ifyoucannotmeasureaprocess,youcannotmanageorcontrolit.Tobereliable,““measuring”needstobefact-basedand/ordata-driven.Otherwise,managersaremakingdecisionsbasedonconditionsofuncertainty.Themoreaccurateandtimelythedata,thebettertheabilitytomeasure.56（2）Knowingthatyourindicatorismeasuringtherightthing.Measuringperformancerequires:IdentifyingthemostmeaningfulmeasuresofperformanceBeingabletomeasurethemcorrectlySelectingthesetofmeasuresthatprovidesaholisticindicatoroftotalbusinessperformanceIdentifyingwhoshouldreceivethereportsandinwhattimeframe57PerformanceMeasurementProcess.Measuringperformanceisamultistepcyclicalprocess.Themajorstepsinbusinessperformancemanagementare:Step1.Decideondesiredperformancelevels.Namely:Whatdoesthecompanywanttoachieve?Suchtargetsaredecideduponandexpressedasgoalsandobjectives,basedontheorganization’smission.Also,specificmetricsshouldbesetfordesirableandmeasurableperformancetopicssothatthecompanycanevaluateitssuccess.Step2.Determinehowtoattaintheperformancelevels.Theissueis:Howtogetthere?Thisisdeterminedbythecorporatestrategiesandspecificshort-,medium-,andlong-termplans.58Step3.Periodicallyassesswheretheorganizationstandswithrespecttoitsgoals,objectives,andmeasures.Theissuehereistofind:Howarewedoing?ThisisaccomplishedbymonitoringperformanceandcomparingittothevaluessetinStep1.Step4.Adjustperformanceand/orgoals.Ifperformanceistoolow——thatis,thereisanegativegapbetweenwherewewanttobeandwhereweare——correctiveactionsneedtobetaken:Howdoweclosethegap?59BusinessEnvironmentalPressures.Thebusinessenvironmentconsistsofavarietyoffactors—societal,legal,political,technological,andeconomic.ImpactofBusinessEnvironmentFactors.Thebusinessenvironmentfactorscanimpacttheperformanceofindividuals,departments,andentireorganizations.Somefactorscreateconstraints,whileotherscostagreatdealofmoneyordiverteffortsawayfromthebusiness.NewlawsandregulationsalmostalwaysinvolvetheimplementationofnewISsforcompliance,especiallyduringthefirstyearsaftertheygointoeffect.6061621.4StrategicPlanningandCompetitiveModelsIngeneral,strategicanalysisisthescanningandreviewofthepolitical,social,economic,andtechnicalenvironmentoftheorganization.Thepurposeofthisanalysisoftheenvironment,competition,andcapacityistolearnaboutthestrengths,weaknesses,opportunities,andthreats(SWOT)oftheexpansionplanbeingconsidered.SWOTanalysis,asitiscalled,involvestheevaluationofstrengthsandweaknesses,whichareinternalfactors,andopportunitiesandthreats,whichareexternalfactors.63Examplesare:Strengths:reliableprocesses;agility;motivatedworkforceWeaknesses:lackofexpertise;competitorswithbetterITinfrastructureOpportunities:adevelopingmarket;abilitytocreateanewmarketorproductThreats:pricewarsorotherfiercereactionbycompetitors;obsolescence64SWOTisonlyaguideandshouldbeusedtogetherwithothertoolssuchasPorter’sfive-forcesanalysismodel.SWOTanalysisisoftendoneattheoutsetofthestrategicplanningprocessStrategicplanningisaseriesofprocessesinwhichanorganizationselectsandarrangesitsbusinessesorservicestokeeptheorganizationviableevenwhenunexpectedeventsdisruptoneormoreofitsbusinesses,markets,products,orservices.Strategicplanninginvolvesenvironmentalscanningandprediction,orSWOTanalysis,foreachbusinessrelativetocompetitorsinthatbusiness’smarketorproductline.65Strategydefinestheplanforhowabusinesswillachieveitsmission,goals,andobjectives.Itspecifiesthenecessaryfinancialrequirements,budgets,andresources.Strategyaddressesfundamentalissuessuchasthecompany’spositioninitsindustry,itsavailableresourcesandoptions,andfuturedirections.Astrategyaddressesquestionssuchas:Whatisthelong-termdirectionofourbusiness?Whatistheoverallplanfordeployingourresources?Whattrade-offsarenecessary?Whatresourceswillitneedtoshare?Whatisourpositionvis-à-viscompetitors?Howdoweachievecompetitiveadvantageoverrivalsinordertoachieveormaximizeprofitability?66PORTER’SCOMPETITIVEFORCESMODELANDSTRATEGIESMichaelPorter’scompetitiveforcesmodel,alsocalledthefive-forcesmodel,hasbeenusedtodevelopstrategiesforcompaniestoidentifytheircompetitiveedge.ThemodelalsodemonstrateshowITcanenhancecompetitivenessAccordingtoPorter’scompetitiveforcesmodel,therearefivemajorforcesinanindustrythataffectthedegreeofcompetitionandthusimpactprofitmarginsandultimatelyprofitability.Theseforcesinteract,soalthoughyouwillreadaboutthemindividually,itistheirinteractionthatdeterminestheindustry’sprofitpotential.67Forexample,whileprofitmarginsforpizzeriasmaybesmall,theeaseofenteringthatindustrydrawsnewentrantsintoit.Conversely,profitmarginsfordeliveryservicesmaybelarge,butthecostoftheITtosupporttheserviceisahugebarriertoentryintothemarket.68Anexplanationofthefiveindustry(market)forces.69Threatofentryofnewcompetitors.Industrieswithlargeprofitmarginsattractmorecompetitors(calledentrants)intothemarketthandoindustrieswithsmallprofitmargins.It’’sthesameprinciplethatappliestojobs——peopleareattractedtohigher-payingjobs,providedthattheycanmeetoracquirethecriteriaforthatjob.Inordertogainmarketshare,entrantstypicallysellatlowerpricesoroffersomeincentive.Thosecompaniesalreadyintheindustrymaybeforcedtodefendtheirmarketsharebyloweringprices,whichreducestheirprofitmargin.Thus,thisthreatputsdownwardpressureonprofitmarginsbydrivingpricesdown.70Thisforcealsoreferstothestrengthofthebarrierstoentryintoanindustry,whichishoweasyitistoenteranindustry.Thethreatofentryislower(lesspowerful)whenexistingcompanieshaveISsthataredifficulttoduplicateorveryexpensive.ThoseISscreatebarrierstoentrythatreducethethreatofentry.712.Bargainingpowerofsuppliers.Bargainingpowerishighwherethesupplierorbrandispowerful;forexample,Apple,Microsoft,andautomanufacturers.Powerisdeterminedbyhowmuchacompanypurchasesfromasupplier.Themorepowerfulcompanyhastheleveragetodemandbetterpricesorterms,whichincreaseitsprofitmargin.Conversely,supplierswithverylittlebargainingpowertendtohavesmallprofitmargins.723.Bargainingpowerofcustomersorbuyers.Thisforceisthereverseofthebargainingpowerofsuppliers.ExamplesareDellComputers,Walmart,andgovernments.Thisforceishighwherethereafewlargecustomersorbuyersinamarket.4.Threatofsubstituteproductsorservices.Wherethereisproduct-for-productsubstitution,suchase-mailforfax,thereisdownwardpressureonprices.Asthethreatofsubstitutesincreases,profitmargindecreasesbecausesellersneedtokeeppricescompetitivelylow.735.Competitiverivalryamongexistingfirmsintheindustry.Fiercecompetitioninvolvesexpensiveadvertisingandpromotions,intenseinvestmentsinresearchanddevelopment(R&D),orothereffortsthatcutintoprofitmargins.Thisforceismostlikelytobehigh