Transcript Slide 1

Strategic Information Systems
Strategic Advantage and Strategic
Necessity
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Strategic advantage refers to obtaining a
sustainable competitive edge over
competitors. The ability to obtain a
greater than normal return on investment.
A strategic necessity is a system that must
be installed to remain competitive and
stay in business.
The Value Chain
Support
Activities
Administrative Coordination & Support Services
Human Resource Management
Technology Development
Procurement of Resources
Inbound
Outbound
Operations
Logistics
Logistics
Marketing
Customer
and
Service
Sales
Primary Activities
Porter’s Value Chain
Strategic Roles for Information Systems
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Improving business operations
Promoting business innovation
Locking in customers and suppliers
 Interorganizational IS, EDI, automatic inventory
replenishment system
Creating switching costs
 make customers dependent on the continued use of
innovative IS.
Raising barriers to entry
 discourage competitors from entering a market
Strategic Information Systems
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“Systems which contribute significantly to the
achievement of an organization's overall objectives.”
(Clark, 1994)
“The information system to support or change an
enterprise's strategy.” (Wiseman, 1985)
“Enhance competitiveness of the organization through
the application of IT to business processes.” (Davenport)
A type of Information System that is aligned with
business strategy and structure
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Can help create a competitive advantage
Strategic Information Systems
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Technology used to gain an edge over an
organization’s competition
Can be used at all levels of an organization or
just a few
Makes a difference
Profoundly alters the way an organization does
business
Sustained strategic, competitive advantage
Information Systems for
Strategic Advantage
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How can information systems improve the value
chain?
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By reducing the cost of primary and support activities
How can information systems change the way
an organization reacts to its competitive forces?
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By changing the bargain power of suppliers
By building closer ties with customers
By increasing or decreasing barriers to entry in a
market
By serving as the basis for new products and/or
services
Model for Development of Strategic
Information Systems
Commerce
Knowledge
Management
Business
Processes
SIS
Planning
Customer
Management
IT
Management
Information
Management
Types of Strategic Information
Systems
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Customer Relationship Management (CRM)
Just-In-Time (JIT)/Build-To-Order (BTO)
E-Commerce
Operations Support Systems (OSS)
Enterprise Resource Planning (ERP)
Data Mining/Data Warehousing
Decision Support Systems (DSS/GDSS)
Supply Chain Management (SCM)
Examples of Strategic Information
Systems
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American Airlines
Fed Ex
Citibank
Wal-Mart
Dell
Amazon.com
eBay
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Cisco
Yahoo!
Google
PNC Corporation
PriceWaterhouse
Coopers
Baxter Healthcare