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Strategic Information Systems

Strategic Information Systems. Elements of Strategic Management. Long-Range Planning Response Management Innovation Explore the interrelationships. Strategic Management. Innovation New products Extended products Differentiated products Super systems Customer terminals

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Strategic Information Systems

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  1. Strategic Information Systems

  2. Elements of Strategic Management • Long-Range Planning • Response Management • Innovation Explore the interrelationships...

  3. Strategic Management • Innovation • New products • Extended products • Differentiated products • Super systems • Customer terminals • Electronic delivery • Computer-aided sales • Internet web site • Role of IT • Applications • Reengineering • Business intelligence

  4. Figure 03.01 Caterpillar Story Can we generalize?

  5. 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

  6. Figure 03.04

  7. Porter’s Competitive Forces Strategies • Cost leadership • Differentiation • Focus • Strategic positioning • Customer service

  8. Figure 03.05

  9. Use of Porter’s Model • List players • Analyze business drivers • Devise a strategy • Investigate supportive information technologies

  10. Porter’s Value Chain Analysis Model • Primary activities • Support activities

  11. Porter’s Value Chain Analysis Model - Support Activities • Firm infrastructure • Human resource management • Technology department • Procurement

  12. Porter’s Value Chain Analysis Model - Primary Activities • Inbound logistics • Operations • Outbound logistics • Marketing / sales • Service

  13. Figure 03.06

  14. Figure 03.07

  15. Porter and Millar Framework • Industry structure has changed • Rules of competition have changed • Organizations have outperformed competition using IT

  16. Bakos and Treacy Framework • Bargaining power and comparative efficiency • Search related costs • Unique product features • Switching costs • Internal efficiency • Interorganizational efficiency

  17. 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

  18. Strategic Information Systems Applications • Cost leadership • Differentiation • Growth • Alliances • Innovation • Improve internal efficiency • Customer-oriented approaches

  19. Strategic Information Systems Applications • Florida Power and Light - computerized TQM • Geisinger - intranet • J.C. Penny - custom made suits • MacGregor - EDI • Otis: IT used to block competitors

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