Uber Ceo to Cio Case Study
Essay by Tasneem Kudrati • September 17, 2017 • Case Study • 1,811 Words (8 Pages) • 1,318 Views
- Which of the five strategic IT questions is the Uber CEO asking the CIO? State the question and support this with specific quotes and material from the case.
The five strategic IT questions asked by the UBER CEO to CIO are as follows: (Power point Slide no 27).
- How can IT be used to reengineer core value activities and change the basis of competition?
- How can IT change the nature of relationships and the balance of power among buyers and suppliers?
- How can IT build or reduce barriers to entry?
- How can IT increase or decrease switching costs?
- How can IT add value to existing products and services or create new ones?
These are some strategic IT questions analyzed through brief understanding from the UBER case.
Market entry Playbook: through the article, we had examined when Uber entered any of the markets, they would demonstrate the skills of understanding the concept of the importance of how UBER in the market is a facilitator. In the article, we come across the statements that depict the process how UBER as a technology is easy to accept in the all different markets (pg., 2).
The working arrangement made for the drivers: As the app was a facilitator and a way to understand the demand and supply. The drivers had to give a test on the geographically and road traffic rules of the along with the training of how to map the demand and supply situation of the facility provided by the UBER (pg., 3).
Attractive to the market: As the concept was modern and UBER was a facilitator. This technology of the app helped not only the drivers to work on their convenience but also for the demand of people to not only use UBER services, not for luxury but at the same time as necessity (pg., 4, Sayan Chatterjee; Kayleigh Fitch)
Price mechanism: As to understand how we come to a pricing we have to understand the mechanism through the actual potential of the demand and supply and then priced accordingly (pg., 5, Sayan Chatterjee; Kayleigh Fitch).
Resentments, Regulations, and Impact on the Future: The UBER throughout its foundation faced a challenge to prove to be a facilitator in the market for ground transportation and provide services to people for luxury and necessity. The typical standard pattern of working of taxi drivers disrupted. The future for UBER was to be progressing and change the traditional style of driving the cab and have the taxis services reduce due to a leverage provided with the help of the facilitator in the market of technology as a facilitator (pgs., 6 & 7, Sayan Chatterjee; Kayleigh Fitch).
- Drawing upon material from the book, is Uber an example of collaborative co-creation and delivery of a service? Why or why not? Use specific information from the book (and cited with page numbers) to support your position.
Yes, the UBER is the collaborative and co-creation and delivery of service as the firm is a facilitator and not actual producer of any tangible products, UBER is a service provider. The idea of the information system triangle where the business strategy, organizational strategy, and the information strategy are explained and observed in the UBER case.
The plan of activities by UBER technologies was to provide the service by being a facilitator and earn profits. As UBER technology upon their startup only catered to travel around and in the city by the use of expensive and luxury cars for journeys. Later the UBER service even used general other model cars for the service to provide around the city, and this became a convenient way for the people. By just a few clicks on the mobile and other devices. The mission of UBER is defined precisely with the strategies implemented for the business to be in success. The collaboration, engagement, and innovation were the aspects depicted in the UBER case. The essence of a strategy to understand on what and the business will seek to accomplish. The plan starts with a mission. A mission is firm and a dominant statement which helps the organization to achieve it is visions and its purpose.
The Organizational Strategy analyzed in UBER case by the hiring the local manager who understood the market and the mechanism of demand and supply to be determined by the algorithm being developed by the UBER technology. “Organizational, control, and cultural variables are managerial levers used by decision makers to effect changes in their organizations.” (Pg. 25, Managing and Using Information Systems: A Strategic Approach, 6th Edition). The goal was to produce awareness of the utilization of the service and the application on a daily routine basis. People could work in an environment where it more flexible earn and this would be not locally but start to be involved in the global setup.
The information strategy helps “to determine the company capabilities” (pg.,27, Managing and Using Information Systems: A Strategic Approach, 6th Edition). The UBER technologies use the application set up for mobiles and on the other systems was incorporated to utilize and book the services as per the convenience of the traveler around the globe using the application through the navigation within various cities and hubs. Connecting and mapping are being one of the important aspects and making it work across 24 by seven are also analyzed. Continued to be tech supportive through being always looked into the various ways to make it user-friendly for the drivers and the travelers. UBER services are popularly utilized in cities and across the globe.
- How has Uber used IT to change Porter's Five Forces? Identify how each of the forces has been influenced by what Uber is doing and use information from the case to support your position.
UBER used IT to change the Porters Five Forces on various occasions in the case.
- The threat of new entrants: As UBER did not only stop in servicing the people in providing trips around the city and traveling in expensive, luxury cars to affordable cars for the people using the services they would like to utilize. At the same time, UBER technologies are expanding their services in various other domains such as motorbike pickups in Paris, delivering ice creams by using ice creams trucks and start to be the lifeline “the logistical nervous system of the city” (Sayan Chatterjee; Kayleigh Fitch).
- Bargaining power of suppliers: As UBER overtook the traditional service provided by the taxis to drive people within the cities. The leverage to get into the market through not having restrictions as UBER never had fleets of cars or any substantial investment made.
UBER is a facilitator which allows people who want to serve as drivers can coordinate and make money. The part of the earnings to the UBER technologies and rest of the money to the drivers.
- Bargaining power of buyers: The users of the service have the authority for agreement today. As one of the incidents in the UBER case explains the traveler’s dilemma required the help of the driver to put the luggage in the truck would be appreciated. The customer service spontaneously replied, with an apology and investigated the matter. Access to information, at any given point from social media including the channel to continuously review the feedbacks, low costs via any form of conventional digital modes, and price sensitivity (Sayan Chatterjee; Kayleigh Fitch).
- The threat of producing substitute services: UBER IT is a digital business, and the producing replacements would be the technology here itself. UBER technology is digital, hybrid digital/physical substitute. UBER taxi service and LYFT Taxi, are examples, the digital app for consumers based on their ability to consume the service as and when required.
- Rivalry among existing competitors: The regulations and restrictions taken for granted as per convenience and comparative low-cost. No real investment required at any given point. Especially, the “platform” model is seen considerable success in the marketplace by just being involved in corporate social responsibility.
- What emerging technologies can Uber use to address its competitive situation? State the problem that they are confronted with, the technology they should use, and then how the technology should address that problem. You can draw from either the book or the lecture, but support your position with quotes from the case.
The problem UBER has been facing and confronted with the issue of safety which is one of the biggest problem even spoken observed in the case. (pg., 6, Sayan Chatterjee; Kayleigh Fitch). The attitude of the drivers is also another issue highlighted in the case. The price mechanism and rules and leverages are also the main themes highlighted in the case. While speaking of the regulations the fees for the license to be a taxi driver in the USA is one of the expensive cost, and the UBER drivers get a leverage of not having the same, while at the same time the taxes are not calculated as per the regulations of a taxi driver earning. UBER IT also faces the challenge related to the relationship between the driver and the company. The UBER is a technology company, and if dissolved then the government would charge the driver for entire ride as a revenue and subject to city and state taxes.
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