Kenneth C. Laudon,Jane P. Laudon Management Information System 12th Edition pdf

core com-

petency

is an activity for which a firm is a world-class leader. Core competen-

cies may involve being the world’s best miniature parts designer, the best

package delivery service, or the best thin-film manufacturer.  In general, a core

competency relies on knowledge that is gained over many years of practical

FIGURE 3-12

THE VALUE WEB

The value web is a networked system that can synchronize the value chains of business partners

within an industry to respond rapidly to changes in supply and demand.

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Part One

Organizations, Management, and the Networked Enterprise

field experience with a technology.  This practical knowledge is typically sup-

plemented with a long-term research effort and committed employees.

Any information system that encourages the sharing of knowledge across

business units enhances competency. Such systems might encourage or

enhance existing competencies and help employees become aware of new

external knowledge; such systems might also help a business leverage existing

competencies to related markets. 

For example, Procter & Gamble, a world leader in brand management and

consumer product innovation, uses a series of systems to enhance its core

competencies. Some of these systems for collaboration were introduced in the

Chapter 2 ending case study. An intranet called InnovationNet helps people

working on similar problems share ideas and expertise. InnovationNet connects

those working in research and development (R&D), engineering, purchasing,

marketing, legal affairs, and business information systems around the world,

using a portal to provide browser-based access to documents, reports, charts,

videos, and other data from various sources. It includes a directory of subject

matter experts who can be tapped to give advice or collaborate on problem solv-

ing and product development, and links to outside research scientists and

entrepreneurs who are searching for new, innovative products worldwide.

N e t w o r k - B a s e d   S t r a t e g i e s

The availability of Internet and networking technology have inspired strategies

that take advantage of firms’ abilities to create networks or network with each

other. Network-based strategies include the use of network economics, a virtual

company model, and business ecosystems.

Network Economics.

Business models based on a network may help firms

strategically by taking advantage of