Case from chapter 2 " charge it " with your cell phone

                                         

1. Do you view this technology as a potential threat to traditional telephone companies? if so, what counterstrategies could traditional telephone companies adopt to prepare for this technology?

• yes, if possible somehow tie the profit to the cell phone to traditional telephone companies to : 

* make some money off it without putting them out of business.

•  make traditional telephone more appealing to people and possibly cheaper packages than what they already have 

• Traditional telephone companies have lost a large part of their market share, and the associated revenues, to cell phone companies.  If this new technology attracts even more customers to the cell phone market, the traditional telephone companies stand to lose additional market share and revenues.  For this reason, this type of technology is a definite threat to the traditional telephone companies.  The traditional telephone companies will have to find new ways to entice customers.  One possibility would be to implement the ability for the home phone owner, who is also an ISP customer, to purchase online retail goods and have the charge applied to their home telephone bills.

2. Describe barriers to entry for new technology using Porter's Five.

• Entry barrier- product or service feature that customers have come to expect from organizations in a particular  industry  and must be offered by an entering organization to compete and survive

*Cell phone company must offer customer an array of services that this new technology will provide.

• Switching cost - are cost that can make customer reluctant to switch to another product or services.

*Cell phone companies can monitor what customers buy

*after many times of visiting sites they can tailor  products to what the customer likes

*if they shop else where, there will be a switching cost since the new shopping site does not have a profile of the past's purchases the customer made.

•    The barriers to entry include the new technology (special chip for the phone) required to support associating a cell phone with a credit card, partnership between the credit card company and the cell phone company, minimizing security issues associated with the technology, and gaining consumer trust.  One of the biggest barriers to entry will be convincing cell phone users that the technology is secure.  

3.  Which of Porter’s three generic strategies is this new technology following? 

• This technology is following a differentiation strategy for a broad market
• •Focused strategy- target a niche market
• •Targeting the growing market of cell phone users and purchasing products and services from the cell phone

4. Describe the value chain of using cell phones as a payment method.

• value chain increase the infrastructure of phone companies and improve technology development

•payment method can receive/store information from the consumers purchases and send that to the phone company. 

•more people will engage in this type of payment method.  

5. What types of regulatory issues might occur due to this type of technology?

•people will be skeptical with putting personal information out there not knowing what kind of security protection the company has.

•people will find a way to hack into cell phones.  

                                                                                       

SUMMARIZE FROM CHAPTER 1

   All is about Information Technology (IT). As we know all business today using IT to achieve their goal. From this chapter reader can learn and know all about Management Information System (MIS) and Information Technology (IT) and also describe the relationships among people, information technology and information .Reader also can differentiate and identify the different of department in a typical business and how technology help an organization to work together and know the different types of organizational information cultures.


This technology give an impact on business operation for example its can reducing the  costs, improving productivity and generating growth. Information Technology (IT) is a field concerned with the use of technology in managing and processing information. its covering many field that deal with the use of electronic computers and software. Management Information Technology (MIS) is a business function just as a marketing, finance, operations, and human resources.

DATA
 raw facts that describe the characteristic of an event.



INFORMATION
Data converted into a meaningful and useful context
Information from sales events could include best-selling item,worst-selling item.

BUSINESS INTELLIGENCE

Application and technology that are used together
Help companies gain more knowledge



IT RESOURCES

• People
• information
• information technology

                                                           IT CULTURES

   Will be influence the way people use information and reflect the importance that company leader attribute to the use of information in achieving success.