Strategic Information Systems

BY
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GROUP 3

Abhishe

3/11/12

CONTENTS

OVERVIEW DEFINITION TYPES OF INFORMATION SYSTEMS COMPETITIVE ADVANTAGE PORTERS COMPETITIVE ADVANTAGE PORTERS VALUE CHAIN MODEL PORTERS DIFFERENTIATION MODEL PORTERS FOCUS MODEL WISEMANS STRATEGIC PERSPECTIVE
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Overview OVERVIEW

The concept ofStrategic Information Systemsor "SIS" was first introduced into the field ofinformation systemsin 1982-83 by Dr. Charles Wiseman, President of a newly formedconsultancycalled "Competitive Applications

Strategic systems are information systems that are developed in response to corporate business initiative. They are intended to give competitive advantage to the organization. They may deliver a product or service that is at a lower cost, that is differentiated, that focuses on a particularmarket segment, or is innovative.

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DEFINITION
Strategic information systems are thosecomputer systemsthat implement business strategies; They are those systems where information services resources are applied to strategic business opportunities in such a way that the computer systems have an impact on the organizations products and business operations

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TYPES OF INFORMATION SYSTEMS

Financial systems are the basiccomputerizationof the accounting, budgeting, and finance operations of an organization. Operational systems, or services systems, help control the details of the business. Such systems will vary with each type of enterprise. They are the computer systems that operational managers need to help run the business on a routing basis. Strategic 3/11/12 systems are those that link business and

COMPETITIVE ADVANTAGE

Deliver a product or a service at a lower cost.

Deliver a product or service that us differentiated. Focus on a specific market segment.
Innovation. Develop products or services through the use of computers that are new and appreciably

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PORTERS COMPETITIVE ADVANTAGE

Central Questions In Competitive Strategy:

How structurally attractive is the industry? What is the firms relative position in the industry?

Five Basic Competitive Forces:

the threat of new entries the threat of substitute products or services the bargaining power of suppliers the bargaining power of buyers and

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PORTERS VALUE CHAIN MODEL

Firms activities (primary activities, support

activities) The firms ability to perform these activities either less expensively than its competitors, or in a unique way. Porter gives five steps to achieving cost leadership:

Identify the appropriate value chain and assign costs and assets to it. Identify the cost drivers of each value activity and see how they interact. sources of cost differences.

Determine the relative costs of competitors and the 3/11/12

PORTERS DIFFERENTIATION MODEL

To achieve this, efficient forms of differentiation must be picked, and costs must be reduced in areas that are irrelevant to the buyer needs.

A few typical factors which may lower the buyers costs are:

Less idle time Lower risk of failure Lower installation costs Faster processing time
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Lower labor costs

PORTERS DIFFERENTIATION MODEL

Porter lists seven steps to achieving differentiation:

Determine the identify of the real buyer. Understand the buyers value chain, and the impact of the sellers product on it. Determine the purchasing criteria of the buyer. Assess possible sources of uniqueness in the firms value chain. Identify the cost of these sources of

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PORTERS FOCUS MODEL

Focusing means selecting targets and optimizing the strategies for them. Emphasizes that a company that attempts to completely satisfy every buyer does not have a strategy

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WISEMANS STRATEGIC PERSPECTIVE

The whole idea is designed to introduce the strategic perspective on information systems, stimulate the systematic search for SIS opportunities, and evaluate and select a set of projects that are expected to secure the greatest competitive advantage for the firm.

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WISEMANS STRATEGIC PERSPECTIVE

Wiseman takes Porters three generic categories: low cost producer, differentiation, and focus, and extends them to five categories: differentiation, cost, innovations, growth, and alliance.

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SIS Planning Process in five phases: Phase A:Introduce the Information Services management to SIS concepts. Give an overview of the process describe cases. Gain approval to proceed with an ideageneration meeting in Information Service. Phase B:Conduct an SIS idea3/11/12

WISEMANS STRATEGIC PERSPECTIVE

Thank you

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