Extra Cases
Jason C. H. Chen, Ph.D.
Professor of MIS
School of Business Administration
Gonzaga University
Spokane, WA 99258 USA
chen@[Link]
ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Information System Strategy Triangle
Business (Firm)
Strategy
Organizational Strategy IS/IT Strategy
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Information System Strategy Triangle for
ZIP CAR
1. Innovation (w/ new business model)
2. New Market and Revenue Increase
1. Small staff with little
human interaction Business (Firm)
2. Online community
(Zipsters )
Strategy
3. E-Business organization
(Car reservations were for a
specific pick up time and
location around the city, often in
neighborhoods)
Organizational Strategy IS/IT Strategy
1. Internet
2. Wireless and Social
Networking technologies
(e.g., RFID, GPS, and
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Zipsters)
2. Discuss the synergy between the business
strategy of Zipcar and information
technology.
• Ans: There is tremendous synergy between
Zipcars business and IT strategy.
• Zipcar is heavily dependent upon an automated
process, and supports social networking of its
clients, so that they can freely provide feedback
on the company and its products and services.
• IT completely supports what Zipcar is trying to
accomplish
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
3. Are there any network externalities in the
workings of Zipcar? If so, do they add value?
How?
• Through their use of social networking they
provide value to the customer by providing an
open exchange of ideas, and feedback to Zipcar.
• Network Externalities: Definition - The phenomenon whereby a
service becomes more valuable as more people use it, thereby
encouraging ever-increasing numbers of adopters.
– Network effects
• While the word-of-mouth method is often more influential in the
beginning, analysis may play a significant role later in the cycle.
In other words, you may adopt a service initially because
someone you know uses it; later, you may adopt a service
because "everyone" uses.
– IT Role?
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
4. As the CEO of Zipcar, what would you do to
sustain a competitive advantage?
• Continue to innovate through the use of IT and
by listening to customer feedback on the social
network sites. Look for strategic partnerships
with suppliers or other potential providers of
services that Zipcar could leverage to improve
its service or add extra value.
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
5. Analyze the business model of Zipcar using Porter’s
five forces model.
• Ans: Zipcar has created a model that would be difficult
for other companies to imitate with its technology
infrastructure and low overhead. This model would be
difficult for traditional car rental companies to model
due to their existing infrastructure and model.
• Buyers could utilize other rental companies, but they
would lose the convenience offered by the Zipcar model
of hourly rental agreements, and convenient locations.
• Zipcar does not really have to worry about supplier
power since it does not rely on proprietary goods.
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Roche’s New Scientific
Method
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
1. How does the business strategy affect information systems and organizational
decisions?
Business Strategy:
• Genomics
revolution
(breakthrough)
Business Strategy
IS/IT Strategy:
Organizational Strategy: • Process data
• Building teams • Incorporate GeneChip and
• Reward teams FailFast approach
• Hire people
• Create new culture (where failure is
all right, as long as you fail fast)
Organizational IS/IT Strategy
Strategy
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
2. What generic strategy does Roche appear to be using based upon this case? Provide
a rationale for your response.
Roche’s business strategy appears to be first to market with a
new drug to cure cancer or other diseases whose genes are
identified in through the genomics project. Thus, they appear
to be applying the differentiation strategy of having a drug
that adds value in the cure of a disease
It could be argued, though, that Roche is applying a
focus/differentiation strategy by concentrating on cancer or
strokes… it is not entirely clear what Roche’s overarching
business strategy is from the case
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
3. How do information systems support Roche’s business
strategy?
• The case discusses a number of ways in
which IS supports Roche’s business
strategy:
– to screen compounds,
– to run simulations or GeneChip experiments
with potential new drugs, and
– to identify and locate genes that are associated
with stroke using Decode.
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Extra (Apply the hypercompetition model to Roche. Which of the 7 Ss are demonstrated
in this case?
The hypercompetition model suggests that speed and
aggressiveness of moves and countermoves in any given market
can create strategic advantage. Clearly this case demonstrates
Roche’s concern with a speedy discovery. An example is its ‘Fail
Fast’ philosophy. To uncover successful drugs, it is conducting
thousands of experiments… a series of small steps. To compete,
Roche is taking advantage of its deep pockets and is relying on
its timing and know-how. Below are some possible applications
of D’Aveni’s 7-Ss:
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
7-S Application
Superior stakeholder satisfaction Maximizing customer satisfaction by adding value
through the discovery of breakthrough drugs to cure
cancer, stroke, or other disabling diseases
Strategic soothsaying Seeking new knowledge in a variety of ways: applying
new technologies such as GeneChip; advertising for
new employees in a wide range of sources, including
Science magazine; leveraging on the knowledge of it
employees through more collaboration and teamwork
Positioning for speed Using IS to process large volumes of data more
efficiently; applying ‘Fail Fast’ philosophy to identify
winners more speedily
Positioning for surprise Altering its organizational and IS strategies to speed the
discovery of new breakthrough drugs
Shifting the rules of competition Using breakthrough discoveries of revolutionary drugs
to treat major diseases can result in new ways to serve
customers that transforms the industry; Trying to take
advantage of discoveries in the genomics projects
Signaling strategic intent ?
Simultaneous and sequential ?
strategic thrusts
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ã John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
