Strategic Information Systems

Strategic Information System is a system that helps companies alter their business strategy or structure. It is used to hasten the reaction time to environmental changes and aid the company in achieving a competitive advantage over its competitors. They help in producing low cost quality products
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Strategic Advantage and IT

Strategic Information System (SIS) Elements of strategic management

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Elements of Strategic Management

Innovation Role of IT Competitive intelligence

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Competitive Intelligence
Internet Competitive strategy and sustainable advantage

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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

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Porters Competitive Forces Strategies

Cost leadership Differentiation Focus Strategic positioning Customer service

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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

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Porters Value Chain Analysis Model - Primary Activities

Inbound logistics Operations Outbound logistics Marketing / sales Service

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Porters Value Chain Analysis Model - Support Activities

Firm infrastructure Human resource management Technology department Procurement

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Strategic Information Systems Frameworks

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

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Porter and Millar Framework

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

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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

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Bakos and Treacy Framework

Bargaining power and comparative efficiency Search related costs Unique product features Switching costs Internal efficiency Interorganizational efficiency
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Customer Resource Life Cycle Framework

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

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Framework for Global Competition

Apply IT through global business drivers Quality Risk reduction Suppliers

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Strategic Information Systems Applications

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

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Sustaining A Strategic Advantage

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

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