Strategic Information Systems

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Strategic Advantage and IT

Strategic Information System (SIS)
Elements of strategic management

3-2

Elements of Strategic
Management
Innovation
Role of IT
Competitive intelligence

3-3

Competitive Intelligence
Internet
Competitive strategy and sustainable
advantage

3-4

Porters 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

3-5

Porters Competitive Forces

Strategies

Cost leadership
Differentiation
Focus
Strategic positioning
Customer service

3-6

Use of Porters Model

List players
Analyze business drivers
Devise a strategy
Investigate supportive information
technologies

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Porters Value Chain Analysis

Model
Primary activities
Support activities

3-8

Porters Value Chain Analysis

Model - Primary Activities

Inbound logistics
Operations
Outbound logistics
Marketing / sales
Service

3-9

Porters Value Chain Analysis

Model - Support Activities

Firm infrastructure
Human resource management
Technology department
Procurement

3-10

Strategic Information Systems

Frameworks

Porter and Millars framework

Wiseman and MacMillan framework
Bakos and Treacy framework
Customer resource life cycle framework

3-11

Porter and Millar Framework

Industry structure has changed
Rules of competition have changed
Organizations have outperformed
competition using IT

3-12

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
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Wiseman and MacMillan

Framework

Based on Porters strategies

Innovation
Growth
Alliance
Time

3-14

Bakos and Treacy Framework

Bargaining power and comparative
efficiency
Search related costs
Unique product features
Switching costs
Internal efficiency
Interorganizational efficiency
3-15

Customer Resource Life Cycle

Framework
Ives and Learmouth, 1984
Customer relationship key to strategic
advantage?
Thirteen fundamental stages of the
customer relationship

3-16

Framework for Global

Competition

Apply IT through global business drivers

Quality
Risk reduction
Suppliers

3-17

Strategic Information Systems

Applications

Cost leadership
Differentiation
Growth
Alliances
Innovation
Improve internal efficiency
Customer-oriented approaches
3-18

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
3-19

Strategic Information Systems

Applications

Port of Singapore: intelligent systems

Volvo: global network
Baxter International: IT for the customer
Merril Lynch: cash management accounts
system
American Airlines: reservation system
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Strategic Information Systems

Applications
Odense Shipyard: CAD
Dun and Bradstreet: credit evaluation
National Car Rental: car pickup

3-21

Sustaining A Strategic Advantage

Inward systems: efficient, effective
Comprehensive, innovative and expensive
system: difficult to duplicate

3-22

Managerial Issues
Implementing strategic information systems
can be risky
Strategic information systems require
planning
Sustaining competitive advantage is
challenging
Ethical issues
3-23

Copyright 1999 John Wiley & Sons, Incorporated. All rights

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