Week 02 – IT and Competitive Strategy (I)
Online discussion questions – Jan 23
- In Otis case page 8, “Traditionally we had focused on the management of physical assets. The next step in our evolution will be the management of information flows between all the participants …” What does it mean by “information management” and why is this important?
- Would the changes with e*Logistics be easy? Who would be unhappy with this change? How do you think Otis managed and overcame these challenges?
- In Otis case page 8, “To achieve continuous transformation, the e*Logistics program makes sure the business process change sticks. … With the e*Logistics program, best practices from SIP are baked into the organization and institutionalized…” What does it mean by “sticks” and “baked”?
In-class discussion questions for Jan 23
We will discuss these questions in-class on Fri, Jan 23. Do not post comments on this.
- For a new elevator to be produced and installed at a new building, what steps is Otis taking? Who are involved in this process?
- What were the problems before e*Logistics in Otis’ business processes?
- How does e*Logistics address these problems and what are the improvement achieved by it?
- Who would be unhappy with the changes in the business processes caused by e*Logistics?
- How do you think Otis managed and overcame these challenges? Who do you think played a key role?
Online discussion questions – Jan 21
- In what cases is it easy or inexpensive for you to change a service provider that you’ve been dealing with? (i.e. little switching cost)
- What are the examples of a bundle around us? (other than what discussed in-class – cable/Internet, Xbox/game, elevator/service, etc.)
Week 2 – IT and Competitive Strategies (I) – class slides and videos (UPDATED)
Week 02 – IT and Strategy (I) (color).pdf
Week 02 – IT and Strategy (I) (bw).pdf
The Five Competitive Forces – Porter Interview – HBR (http://www.youtube.com/watch?v=mYF2_FBCvXw)
Auction for Life – YouTube (http://www.youtube.com/watch?v=q9Z9oGQmJ98)
In-class discussion questions for Jan 21
- According to the Otis case, which business is more profitable? Elevator manufacturing or service? Why?
- In the Otis case, “The service market attracted many participants because of its steady demand, low barriers of entry, and high profitability.” (p. 3) Doesn’t it mean that the service market is not profitable for Otis?
- How often do you change your doctor? Why?
- Will Otis customers (building owners or managers) change an elevator service company often? Why or why not?
- Can you think of an example of bundle around us? Why do firms sell a bundle?
- Why would bundling up an elevator (product) and maintenance services together (i.e. total solutions) be more profitable than selling an elevator and services individually?
- How were things going before OTISLINE? How now are things going after OTISLINE?
- What are the improvements in customer service from OTISLINE?
We will discuss these questions in-class on Wed, Jan 21. Do not post comments on this.
Week 2 – Otis Case Best Brief – Brooke Lehman
Grading Otis reading brief completed
Online discussion questions – Jan 16
- When would buyers have a strong bargaining power vis-a-vis sellers (except the number of buyers, price-sensitivity, and switching costs)?
- What are the examples of switching costs (other than mobile contracts, network effects)?
In-class discussion questions for Jan 16
- What does it mean by a bargaining power of buyers? When would buyers have a strong bargaining power?
- Any example of switching costs for buyers?
- Suppose you’ve got $300 millions from winning a lottery. You want to start a new airline company. What does it takes for you to make the first flight take off?
- What would be substitutes for a travel by flight? Wha would be substitutes for grocery stores?
- According to the Otis case, which business is more profitable? Elevator manufacturing or service?
- In the Otis case, “The service market attracted many participants because of its steady demand, low barriers of entry, and high profitability.” (p. 3) Doesn’t it mean that the service market is not profitable for Otis?
We will discuss these questions in-class on Friday, Jan 16. Do not post comments on this.
Friday, Jan 16 – Sign up for presentation!
For next class, we need two volunteers to present one of these two articles for five minutes.
- Harvard Business Case – “Otis Elevator: Accelerating Business Transformation with IT”
- Harvard Business Review – “The Five Forces That Shape Strategy” by M.E. Porter
One reading brief will be waived, and participation credits will be also given. I will send the Five Forces article to the presenter. Email to minspang@temple.edu or leave a comment to volunteer.