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Chapter 2 Strategy and Information Systems

Chapter 2 Strategy and Information Systems. Business Strategy. Need for strategy Strategic business planning determine mission and objectives identify future performance against objectives develop strategy Strategies Business IS strategy Business IT strategy.

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Chapter 2 Strategy and Information Systems

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  1. Chapter 2Strategy and Information Systems

  2. Business Strategy • Need for strategy • Strategic business planning • determine mission and objectives • identify future performance against objectives • develop strategy • Strategies • Business IS strategy • Business IT strategy

  3. Competitive Forces Within an Industry • Five forces model • suppliers • customers • substitute products • new entrants • competitor rivalry

  4. Environmental Influences on the Organization • PEST analysis • political/legal • economic • sociocultural • technological

  5. The Nolan Stage Model 1. Initiation 2. Contagion 3. Control 4. Integration 5. Data administration 6. Maturity

  6. The Nolan Stage Model (Continued) Figure 2.4The six-stage Nolan model

  7. The Earl Model Figure 2.5Earl’s model of multiple learning curves Source: Adapted from Galliers and Sutherland, 1991

  8. Exploitation of IT Through the Value Chain • Primary activities • Support activities Figure 2.7The value chain

  9. Value Chain Figure 2.8Information technology in the value chain

  10. The Strategic Grid Figure 2.9The strategic grid Source: Adapted from Applegate et al, 1999

  11. Critical Success Factors • Example: mail order company • Objective • increase market share by 5% per annum • CSFs: effective advertising, faster order processing, faster distribution • IS applications: market research database, computerized telephone ordering, computerized delivery scheduling

  12. IS Strategy Today • Business strategy and IT strategy • alignment • mainstream vs. innovative • Enterprise resource planning • Business process re-engineering • business process improvements • Outsourcing

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