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Learn how to apply Porter's Competitive Forces Model in strategic information systems planning, analyzing business drivers to devise effective strategies and harness IT for competitive advantage. Explore managerial issues, such as risk, planning, sustainability, and ethics.
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Elements of Strategic Management • Innovation • Role of IT • Competitive intelligence
Porter’s Competitive Forces Model • Threat of new competitors • Bargaining power of suppliers • Bargaining power of customers • Threat of substitute products or services • Rivalry among existing firms
Porter’s Competitive Forces Strategies • Cost leadership • Differentiation • Focus • Strategic positioning • Customer service
Use of Porter’s Model • List players • Analyze business drivers • Devise a strategy • Investigate supportive information technologies
Porter and Millar Five-Step Process • Access information intensity • Determine the role of IT in the industry structure • Identify and rank the ways in which IT can create competitive advantage • Investigate how IT might spawn new businesses • Develop a plan for taking advantage of IT
Strategic Information Systems Applications • Cost leadership • Differentiation • Growth • Alliances • Innovation • Improve internal efficiency • Customer-oriented approaches
Managerial Issues • Implementing strategic information systems can be risky • Strategic information systems require planning • Sustaining competitive advantage is challenging • Ethical issues