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As producLs are creaLedţ value ls added LhroughouL Lhe chalnŦ 1o ouLduel lLs rlvalsţ an

organlzaLlon musL perform Lhe acLlvlLles ln Lhe maLrlx aL elLher a lower cosL or ln such a way
LhaL producL values are enhancedŦ 1husţ compeLlLlve opporLunlLy for MlS exlsLs aL every cell ln
Lhe maLrlx ln below flgureŦ SLraLeglc planners can use such a maLrlx elLher by deLermlnlng ln
whlch cells currenL sysLems are locaLed andţ Lhereforeţ ln whlch cells gaps exlsL or by
successlvely conslderlng Lhe opporLunlLy poLenLlal ln each cellŦ









l
Va|ue cha|n mode| (AdapLed from porLer and mlllar)

Compet|t|ve forces mode|ť 1he compeLlLlve forces model encourages Lhe planner Lo
conslder Lhe exLernal envlronmenL forces LhaL wlll be sources of elLher opporLunlLles or
problemsŦ ln looklng aL Lhls modelţ Lhe planner should conslderţ ln Lurnţ how MlS mlghL be used
Lo handle each compeLlLlve force separaLely or [olnLlyŦ lor lnsLanceţ can MlS be used Lo produce
x x x x x
x x x x x
x x x x x
x x x x x

llrm
lnfrasLrucLur
Puman
resources
1echnology
developmen
Þurchased
lnpuLs
lnbound
loglsLlcs
operaLlons CuLbound
loglsLlcs
MarkLlng
Ǝ sales
servlce
such advanLages as creaLlng barrlers Lo enLry? CeneraLlng new producLs? Changlng
relaLlonshlps wlLh suppllers? Changlng Lhe basls for compeLlLlon?



Compet|t|ve force mode| (adapLed from porLer Ǝ mlllar)

Cha||enges of strateg|c |s
Successfu| strateg|c |nformat|on systems are noL easy Lo develop and lmplemenLŦ
1he challenges lnvolved are manyŦ 1hey may requlre ma[or changes ln how a buslness operaLes
lnLernally and wlLh exLernal sLakeholderŦ


rlvalry among
exlsLlng
compeLlLlors
LhreaL of new enLranLs
bargalnlng power of
supplers
LhreaL of subsLlLuLe
producLs/servlces
barglnlng power of
consumers
SusLalned success depends onť
1Ŧ Many envlronmenLal facLors
2Ŧ lundamenLal buslness facLors
3Ŧ AcLlons and sLraLegles of a company's managemenL LeamŦ



So developlng sLraLegles ases of l1 ls a ma[or managerlal challengeŦ

1ŦLnv|ronmenta| factors
O Ma[or envlronmenLal facLor ls Lhe sLrucLure of an lndusLry as lL ls ollgopollsLlc (a
closed sLrucLure wlLh a few ma[or players or lL ls a wlde open and level
compeLlLlve playlng flels?)
O CompeLlLlve resLrlcLlon Lhese lnvove pollLlcal ƎregulaLory resLrlcLlon Lo wlde open compeLlLlonţ
O Dnlque slLuaLlons

Ŧ Iundamenta| bus|ness(foundat|on) factors of the f|rmŦ
O Dnlque lndusLry poslLlon
O CrganlzaLlonal sLrucLure
O ÞroducL scope
O IerLlcal scope
O 1echnologlcal resource
O nowledge sources
O Ceographlcal scope
O Alllances

3ŦManagement act|ons and strateg|esŦ

O ÞreempLlng Lhe markeL flrsL and ahead of compeLlLors
O CreaLlng swlLchlng cosLs and barrlers Lo enLry
O xplolLlng knowledgeŤ organlzaLlon learnlng
O evelop response sLraLegles demands of cusLomers and suppllers
O Managlng buslness rlsks
O CaLch up moves of compeLlLors
key factors for susta|n|ng strateg|c success |n
the use of I1
llrm



1 222222222 3 4
SusLaln ablllLy
Lnv|ronment

performance loundaLlon
facLors
ManagemenL
acLlon Ǝ
sLraLegles

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