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2 - Information
Skill Builders

For many businesses information is the key to high quality customer service. Thus, some firms use information, and thus customer service, as a key differentiating factor, while others might compete on price. Compare the book component of Web sites Amazon and AllBooks4Less. Which site competes on price and which on information? What are the implications for data management if a firm uses information to compete?

A site that competes on the basis of information must be information rich. For example, Amazon has book reviews, tables of contents, and sample pages. It let's readers maintain a wish list and provides suggested books based on past purchases. In contrast, AllBooks4Less shows the cover, a brief description, and the price.

If a firm competes on the basis of information it must have a more elaborate data management system and efficient means of capturing the diverse data (e.g., reviews by readers) that support its competitive strategy. It also needs to provide additional information-based services (e.g., a wish list).

 

This page is part of the promotional and support material for Data Management (sixth edition) by Richard T. Watson
For questions and comments please contact the author

Date revised: 19-Oct-2016