2025_Seminar_2_Value_and_strategy_1_

Course Information

• Course Title: Transforming Business with Information Systems (BISM1201)

• Seminar Focus: Value, Competition, Strategy, and Processes.

• Course Coordinator and Lecturer: Shahrzad Roohy GoharEmail: sh.roohygohar@business.uq.edu.au

• Course Email for General Queries: bism1201@business.uq.edu.au

Communication Guidelines

• Use the course email for general queries: bism1201@business.uq.edu.au.

• For content-related questions, utilize the Ed discussion board.

• Reach out to your tutor for tutorial task queries.

Seminar Learning Objectives

• Understand Porter’s Competitive Forces Model and Porter’s Value Chain Model.

• Analyze how information systems assist in business competition.

• Explore information systems strategies for businesses.

• Examine business process management/modeling for competitive enhancement.

• Refer to sections 3.1-3.4 of the textbook for teaching resources.

N26: A Bank Without Branches

Company Overview

• Founders: Valentin Stalf and Maximilian Tayenthal in 2013.

• Launch: January 2015.

• Customer Base: 3.5 million across 24 European countries.

• Funding: Raised over $500M; valued at over $3 billion, recognized as Europe's most valuable FinTech startup.

Technology and Infrastructure

• Operates entirely in the cloud on a single system.

• Lacks legacy systems, enabling flexibility and adaptability.

Customer-Centric Processes

• Prioritizes simplicity and usability globally.

• Online account opening possible within 8 minutes.

• Challenges faced:

  • Account closures led to the implementation of guidelines.

  • Introduced Cash26 for cash transactions at partner checkouts using app-generated barcodes.

  • Addressed phishing attack complaints by enhancing security and customer support.

Strategic Advantages

• Cloud-based operations allow flexibility and scalability.

• Fully online processes enhance customer convenience.

• Innovations such as Cash26 improve user experience.

Strategic Challenges

• Ongoing security issues such as phishing attacks.

• Managing customer relations concerning support and account management.

• Maintaining reputation amidst negative media.

Future Directions

• Invest in advanced security systems and explore AI integration.

• Enhance customer support systems structures.

• Leverage cloud technology for competitive advantage.

The Role of Information Systems (IS) in Business

Potential Advantages

• Disrupt business models across industries.

• Eliminate costs associated with physical premises.

• Grant global market access, flexibility, and scalability.

• Provide environmental benefits by reducing physical resource usage.

Key Objectives of Information Systems

1. Achieve Operational Excellence: Maximize efficiency and profitability.

2. Develop New Offerings: e.g., app-based service models (Uber, Airbnb).

3. Enhance Customer Intimacy: Build loyal customer relations.

4. Improve Decision Making: Utilize real-time data to streamline operations.

5. Establish Competitive Advantage: Outperform competitors through superior product/service offerings.

6. Survival: Maintain market relevance and compliance with regulations.

7. ESG Leadership: Lead in environmental, social, and governance practices.

Porter’s Competitive Forces Model

Five Forces

1. Rivalry Among Existing Competitors: Intensity of competition impacts pricing and product development.

2. Threat of New Entrants: Barriers to entry such as cost and regulation affect market entry.

3. Threat of Substitutes: Availability of alternative products can impact firm profitability.

4. Bargaining Power of Buyers: Consumers can influence services and pricing based on alternatives.

5. Bargaining Power of Suppliers: Supplier dynamics can impact cost and production schedules.

Business Value Chain Model

Value Chain Activities

• Support Activities: Includes administration, HR, technology, procurement.

• Primary Activities: Encompasses inbound logistics, operations, outbound logistics, sales and marketing, service.

Business Process Management (BPM)

Definition

• Management of interconnected tasks and processes to add value to the organization and customers.

Key Concepts

• Business processes should be continuously improved and optimized.

• Use of IS is critical in enhancing operational efficiency and fostering customer intimacy.

Business Process Reengineering (BPR)

Overview

• A radical approach to change business processes within a short time frame.

• Aims for substantial gains in productivity but may introduce organizational resistance.

Artificial Intelligence in Business

Strategic Role

• Enhances decision-making and operational efficiency.

• Drives personalization, automation, and fraud detection while raising ethical considerations such as bias and over-reliance.

Summary and Next Steps

• Prepare for Seminar 3 on organizational information systems, covering sections 2.1 and 2.2 from the textbook.

• Complete Tutorial 2 tasks and engage in LinkedIn Excel videos.

• Reflect on how IS aligns with business objectives and strategies for competitive advantage.