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Advantages of Strategic Information System Quantsapp Advisory Review
Strategic Information System Any information system--EIS, OIS, TPS, KMS--that changes the goals, processes, products, or environmental relationships to help an organization gain a competitive advantage or reduce a competitive disadvantage.
Strategic Information System • An advantage over competitors in some measure such as cost, quality, or speed • Competiti ve Advantage • Improving Core Competen cy • Employee productivity & Operational efficiency
Before we continue •SIS born because all of industrial competition •SIS need Strategic Management…… •SIS is not ordinary Information System…..
Strategic Management ? Strategic management is the way an organization maps or crafts the strategy of its future operations.
Strategic Management ?IT • Innovative applications: Create innovative applications that provide direct strategic advantage to organizations. • Competitive weapons: Information systems themselves are recognized as a competitive weapon • 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.
Strategic Management ?IT • 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. • New products: A firm can leverage its investment in IT to create new products that are in demand in the marketplace • Competitive intelligence: IT provides competitive (business) intelligence by collecting and analyzing information about products, markets, competitors, and environmental changes
Quick Summary Strategic Information System Improving Core Competency Relationship Competitive Advantage Cost Reduction New Products Innovative application Link with partners Process Change
Competitor Analysis • What are their strengths & weaknesse s? • What are they Doing and can do? • Is • What Drives them? Competiti on intense? • First Competi tive Force
New Entry Barriers • What Actions are required to build market share? • Incumbent Reaction? • If nothing slows entry of competitors competition will become intense • Production Process? • Second Competi tive Force
Substitute Products • Customers becoming acclimated to using substitutes • Products or services from another industry enter the market • Is the substitute market growing? • Third Competi tive Force
Supply Chain adds value – question • Each element who captures it? • Who controls the transactio n? • The Suppliers The Buyers • • Fourth & Fifth Competi tive Forces
Quick Summary Porter’s Competitive Forces Model Buyers and transaction controls Competitor analysis Substitute Products New Entry Barriers The Suppliers Are we competitive enough ?
Before we continue……. •SIS must be sustainable…. •IS Development Concept : •80% planning •20% implementation
Summary IS for Competitive Advantage SIS Sustainibility Planning Approaches & Activities Improving Core Competency Competitive Force Model Application Portfolio Do you think IS really can be strategic ?