Introduction to Information Strategy and Economics,1,ISMT 510,Agenda,Introduction - What you will learn - Course structure - Teaching style - Grading policy - Pointers for success Strategy - Value chain - Competitive advantage - Porters five forces model,Class participation Assignments Final Exam,2,ISMT 510,Teaser,We are seeing a growing tendency for companies to sell products in bundles to customers. e.g. Microsoft Office which is a bundle of Word, Powerpoint etc which used to be primarily sold separately in the past. What factors make bundling more attractive?,3,ISMT 510,Teasers,A leading manufacturer of printers spent additional money to slow down its printers. Intel spent extra effort (and money) on each chip to disable certain processors to slow it down. Wasnt faster supposed to be better? Then why are these companies degrading their products?,4,ISMT 510,More teasers,On p2p networks like Kazaa, empty and big files having attractive names like “Lord of the rings” are frequently available. There were some rumors that it was the RIAA which was involved in posting these files. What is the rationale for people to make this allegation against RIAA.?,5,ISMT 510,What you will learn,This course will help you: Understand the relationships between Economics, Strategy, and Competitive Advantage Explore different ways that Information Technology (IT) and Electronic Commerce (EC) can be used to create Competitive Advantage Describe the economic principles that may enable firms to create profitable e-business strategies Evaluate options for leveraging technology to create sustainable e-business strategies,6,ISMT 510,Course structure,Lecture 1 Introduction, IS strategy,Lecture 2 Pricing, Versioning,Lecture 3 Network effect, Lock-in,Lecture 4 Contextual Marketing, Privacy,Lecture 5 Innovations, Standards,Lecture 6 Intermediaries B2B,Lecture 7 Auctions, piracy,Final Exam In Class,7,ISMT 510,Teaching Style,Lecture,Articles, Text book,Case Study,Fundamentals,Application,Preparation material,8,ISMT 510,The 3 Ps (your role),Preparation - Articles, textbook chapter, case Participation - Contribution to discussion in class Performance - Assignments and final exam,9,ISMT 510,Grading,Distribution of grade for class will approximately follow school guidelines A: 35-40%, B: 45-60%, C:5-10%, F- if required,10,ISMT 510,Class participation,Dos (examples) - Bringing work related relevant experience - Analysis of an article/case being discussed - Citing anecdotal evidence of the concept being discussed - SWOT analysis Donts (examples) - Restate facts straight from the case/article - Being discourteous to other students when they are making a point,11,ISMT 510,Class participation,Points: 0-4 Quality of point made not number of times spoken Recorded right after class (online access) Six sessions (Lectures 2-7). Top five scores will be considered (5 4 = 20),12,ISMT 510,Assignments,Individual Two 17.5 points each (17.5 2 = 35) Based on case studies Timely completion,13,ISMT 510,Final exam,Will cover: - Lecture - Textbook chapters assigned - Articles and cases assigned In class exam Format: TBD,14,ISMT 510,Pointers for success,Be prepared - Read and analyze cases and other reading assignments before class - Finish assignments on time - Be punctual Participate in class discussion Provide Feedback,15,ISMT 510,Feedback,Important to structure future lectures. Did the lecture satisfy teaching objectives? Rate the lecture in terms of clarity Comment http:/teaching.ust.hk/ismt510,16,ISMT 510,Agenda,Introduction - What you will learn - Course structure - Teaching style - Grading policy - Pointers for success Strategy - Strategic positioning - Sustainable advantage - Porters five forces model - Value configuration,17,ISMT 510,Learning objectives,Distinguish between strategy and operational effectiveness Identify the six principles of strategic positioning Identify the strategic mistakes made by dotcoms Explain how a firms performance is determined and identify the different types of business models Analyze an industry structure using Porters five forces model Explain how a sustainable adv. can be achieved Identify the different types of value configurations,18,ISMT 510,Detailed plan,Strategy Determinants of performance Sustainable advantage - how to achieve it Porters five forces model Value Configuration,- Strategic vs. operational effectiveness - Key issues in strategic positioning - Mistakes made by dot-coms,- Value chain - Value shop - Value network,- Business models and types - Impact of Internet,19,ISMT 510,What is Strategy?,Strategy is a comprehensive master plan stating how the corporation will achieve its mission and objectives. Strategy is the creation of a unique and valuable position, involving a different set of activities (Porter). Strategies can exist at multiple levels - Corporate, Business unit, Functional area,20,ISMT 510,What is Strategic Management,Strategic management is the set of managerial decisions and actions