Transcript Slide 1
Strategic Information Systems Strategic Advantage and Strategic Necessity 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 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 “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 Can help create a competitive advantage Strategic Information Systems 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 How can information systems improve the value chain? By reducing the cost of primary and support activities How can information systems change the way an organization reacts to its competitive forces? 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 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 American Airlines Fed Ex Citibank Wal-Mart Dell Amazon.com eBay Cisco Yahoo! Google PNC Corporation PriceWaterhouse Coopers Baxter Healthcare