Technology and modern enterprise Essay Example for Free

engineering science and modern enterprise EssayToday billions in advertising dollars break a elan old media and ar pouring into digital efforts, and this shift is reshaping industries and redefining skills needed to r individually todays consumers. Firms are harnessing social media for new harvest ideas and for millions in sales. Many of the worlds most successful engineering profligatesorganizations that have had tremendous impact on consumers and businesses across industrieswere created by young people. Today, tech knowledge smoke be a key differentiator for the job seeker. Its the worker without tech skills that needs to be concerned. The aspiring investment banker who doesnt understand the occasion of engine room in firms and industries bottomt perchance provide an accurate guess at how much a company is worth. Lecture 2 Chapter 2-4 dodge and technology, case of Zara and Netflix Sustainable competitive advantage financial performance that consistently outperforms t heir industry peers.According to Porter, the close so many firms suffer aggressive, margin-eroding competition is because theyve defined themselves according to functional effectiveness rather than strategic positioning. Operational effectiveness denotes to performing the same tasks better than rivals perform them. Everyone wants to be better, but the danger in operational effectiveness is sameness. The fast fol press down problem exists when savvy rivals watch a pioneers efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior intersection point at a lower cost. Operational effectiveness is critical. Firms must invest in techniques to improve quality, lower cost, and design efficient customer experiences. But for the most part, these efforts bottomland be matched. Because of this, operational effectiveness is unremarkably not sufficient enough to yield sustainable dominance over the competition.In contrast to operational ef fectiveness, strategic positioning refers to performing different activities from those of rivals, or the same activities in a different way. Technology itself is often very easy to replicate, and those assuming advantage lies in technology alone whitethorn decree themselves in a profit-eroding arms race with rivals able to match their moves step by step. But enchantment technology can be copied, technology can also play a critical role in creating and strengthening strategic differencesadvantages that rivals will struggle to match. Higher inventory turns mean the firm is exchange product faster, so it collects money quicker than its rivals do. Resource based view of competitive advantage can help if a firm is to maintain sustainable competitive advantage, it must control a post of exploitable resources that have four critical characteristics. These resources must be (1) valuable, (2) rare, (3) imperfectly imitable (tough to imitate), and (4) non-substitutable.Dense wave divisio n multiplexing (DWDM) enabled active fiber to carry more transmissions than ever before. The end resultthese new assets werent rare and each day they seemed to be less valuable. Firms that craft an imitation-resistant value chain have developed a way of doing business that others will struggle to replicate, and in about every successful effort of this kind, technology plays a key enabling role. Sources of switching costs learning costs, information and data, financial commitment, contractual commitments, search costs, allegiance programs. In order to win customers from an established superjacent, a late-entering rival must offer a product or service that not still exceeds the value offered by the incumbent but also exceeds the incumbents value and any customer switching costs.Commodities are products or services that are nearly identically offered from multiple vendors. Consumers buying commodities are highly price-focused since they have so many similar choices. In order to bre ak the commodity trap, many firms leverage technology to differentiate their goods and services. Data is not only a switching cost, it also plays a critical role in differentiation. Network effects (sometimes called lucre externalities or Metcalfes Law) exist when a product or service becomes more valuable as more people use it. Switching costs also play a role in determining the strength of network effects. Tech user investments often go far beyond solely the cost of acquiring a technology. Nothing lasts forever, and shifting technologies and market conditions can render once conceptive assets as obsolete.It doesnt matter if its easy for new firms to enter a market if these newcomers cant create and leverage the assets needed to dispute incumbents. Beware of those who say, IT doesnt matter or refer to the myth of the first mover. This thinking is overly simplistic. Its not a time or technology pencil lead that provides sustainable competitive advantage its what a firm does with its time and technology lead. If a firm can use a time and technology lead to create valuable assets that others cannot match, it may be able to sustain its advantage.But if the work done in this time and technology lead can be easily matched, then no advantage can be achieved, and a firm may be threatened by new entrants. Industry competition and attractiveness can be described by considering the following five forces (1) the intensity of rivalry among existing competitors, (2) the potential for new entrants to challenge incumbents, (3) the threat posed by substitute products or services, (4) the power of buyers, and (5) the power of suppliers.