Scribd
Upload
19 views2 pages

Week 3

IT

Uploaded by

mmlibiommv
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
19 views2 pages

Week 3

IT

Uploaded by

mmlibiommv
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

STRATEGIC INFORMATION SYSTEM (SIS) •New products:

A successful business requires the proper management of A firm can leverage its investment in IT to create new products that
organizational and financial data and statistics via reliable strategic are in demand in the marketplace.
information systems. •Competitive intelligence:
IT provides competitive (business) intelligence by collecting and
analyzing information about products, markets, competitors, and
SIS - is known as a system for managing information and environmental changes .
supporting strategic decision-making
PORTER’S COMPETITIVE FORCES MODEL
importance of strategic information system: The model recognizes five major forces that could endanger a
company’s position in a given industry.
1. Support for Decision Making
2. Integration of Data 1.The threat of entry of new competitors
3. Competitive Advantage
4. Alignment with Strategy 2.The bargaining power of suppliers
5. High-level Management
3.The bargaining power of customers (buyers)

4.The threat of substitute products or services


GENERIC STRATEGIES
•Growth strategy: 5.The rivalry among existing firms in the industry
Increase market share, acquire more customers, or sell more
products.
•Alliance strategy:
Work with business partners in partnerships, alliances, joint
ventures, or virtual companies.
•Innovation strategy:
Introduce new products and services, put new features in existing
products and services, or develop new ways to produce them.
•Operational effectiveness strategy:
Improve the manner in which internal business processes are
executed so that a firm performs similar activities better than rivals.
•Lock in customers or suppliers strategy:
Encourage customers or suppliers to stay with you rather than
going to competitors.
•Increase switching costs strategy:
Discourage customers or suppliers from going to competitors for
economic reasons.
STRATEGIC MANAGEMENT GENERIC STRATEGIES

Strategic management is the way an organization maps or crafts Analyzing the forces that influence a company’s competitive
the strategy of its future operations. position will assist management in crafting a strategy aimed at
establishing a sustained competitive advantage. To establish such a
1. SWOT Analysis position, a company needs to develop a strategy of performing
2. Product Life Cycle activities differently than a competitor.
INFORMATION TECHNOLOGY
•Cost leadership strategy: Produce products and/or services at the
lowest cost in the industry.
•Innovative applications:
Create innovative applications that provide direct strategic
advantage to organizations. •Differentiation strategy: Offer different products, services, or
product features.
•Competitive weapons:
Information systems themselves are recognized as a competitive
weapon •Niche strategy: Select a narrow-scope segment (niche market)
and be the best in quality, speed, or cost in that market.
•Changes in processes:
IT supports changes in business processes that translate to strategic
advantage
•Links with business partners:
IT links a company with its business partners effectively and
efficiently.
•Cost reductions:
IT enables companies to reduce costs.
•Relationships with suppliers and customers:
IT can be used to lock in suppliers and customers, or to build in
switching costs.
MANAGERIAL ISSUES

•Risk in implementing strategic information systems. The


investment involved in implementing an SIS is high. Frequently
these systems represent a major step forward and utilize new
technology. Considering the contending business forces, the
probability of success, and the cost of investment, a company
considering a new strategic information system should undertake a
formal risk analysis.

•Planning. Planning for an SIS is a major concern of


organizations (Earl, 1993). Exploiting IT for competitive
advantage can be viewed as one of four major activities of SIS
planning. The other three are aligning investment in IS with
business goals, directing efficient and effective management of IS
resources and developing technology policies and architecture.

•Sustaining competitive advantage. As companies become larger


and more sophisticated, they develop sufficient resources to quickly
duplicate the successful systems of their competitors. Sustaining
strategic systems is becoming more difficult and is related to the
issue of being a risk-taking leader versus a follower in developing
innovative systems.

•Ethical issues. Gaining competitive advantage through the use of


IT may involve actions that are unethical, illegal, or both.
Companies use IT to monitor the activities of other companies that
may invade the privacy of individuals working there. In using
business intelligence (e.g., spying on competitors), companies may
engage in tactics such as pressuring competitors’ employees to
reveal information or using software that is the intellectual property
of other companies without the knowledge of these other
companies.

You might also like