[show abstract][hide abstract] ABSTRACT: In this paper we analyze price, quality and versioning strategies that information goods producers use to deter entry and maintain market power. We �nd that under competition, �rms provide higher quality information goods with a better \price-quality ratio" than in monopoly. In a Stackelberg game, the leader �rm that provides the high quality information good decreases its quality level to maintain a �rst mover advantage. We also show that a monopolist can implement versioning strategies in the low-end market to deter entry, and di�erent versions exist as a signal to prevent potential entry. A vertically di�erentiated market is often referred to as a \natural oligopoly" for traditional goods, whereas it can be regarded as a \natural monopoly" for information goods.
Information Systems & Economics eJournal. 09/2010;
[show abstract][hide abstract] ABSTRACT: The process of economic evolution from agriculture to manufacturing to services is nearing its end in the U.S. and other developed economies. Another major evolution along a different dimension is now underway: it is from a material-based economy to an information-based economy. In the past, the product–service dichotomy has proved useful as an organizing principle for the study of operations management. Today, however, a material–information categorization of products and services appears to be equally important and useful. The information sector now comprises the major share of the U.S. private economy and includes many of the largest industrial sectors and firms. We discuss the implications of this evolution for research and teaching in operations management (OM).The basic questions addressed here are: In what ways are information products, services, processes and chains similar to, or different from, those in the material world? To what extent is it possible to manage operations in information industries using the existing operations management concepts and techniques? The conclusions are mixed. To a great extent, traditional concepts are indeed applicable and useful. However, there are significant differences. For example, quantification and measurement pose a fundamental problem in the study of information industries. As a result, there are difficulties in analyzing some of the most basic OM issues related to productivity, cost, value, and transformation. Nevertheless, the process-centric methods of operations management can be quite effective in analyzing firms and industries that produce information goods and services. An understanding of process economics and information chains is also central to the analysis of competition given the impact of new technologies on processes, firms, information chains and information industries. We conclude that while there is much in the information sector that can be addressed with our current toolkit, some very interesting and challenging issues still remain open for research. From the perspective of management education too, operations management in the information economy is an area of growing importance, with some easy wins and some significant challenges.
[show abstract][hide abstract] ABSTRACT: Technology alignment requires recognizing technology is as enabler of the firm's business strategy and a source of value creation only when it is properly used to support the business' goals. This work explores the degree of technology alignment under two strategic contexts: 1) small firms in a backwards integration setting where the firms are suppliers of large retailers, and 2) independent small retailers. Findings reveal small suppliers of large retailers align their technology infrastructure to the requirements of the dominant customers. Then they have implemented identification and communication electronic standards, are connected to customer's Intranet or establish communication via Internet, and have the technical expertise to perform electronic transactions with their customers. In contrast, the independent small retailers exhibit low levels of technology alignment in the sense of using information systems mainly to control cash flows and make tax payments instead of using technology to support their strategies of differentiation on customer's service. The results provide evidence that participation in a supply chain accelerates technology adoption among small firms.
Management of Engineering & Technology, 2008. PICMET 2008. Portland International Conference on; 08/2008
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