Systems Strategies and

Management Issues
Module 02
Introduction

▪ A strategic information system (SIS) is a business information

system (BIS) with the features Systematic approach to collecting,
storing, and retrieving data; Integration with other systems.
▪ It is essential for your company to have a clear vision, business
plan, strategy and organisation structure.
▪ It’s important that your employees are aligned with these
strategies, so that everyone has the same goals in mind.
▪ A Strategic Information System (SIS) is a system to manage
information and assist in strategic decision making. 
▪  A strategic information system has been defined as, “The
information system to support or change enterprise’s strategy.”
Strategic role of Information Technology

▪ The strategic role of IT to develop and distribute products,

services, and capabilities that give an organization a major
advantage over its competition.
Porter’s Model of Competitive Strategies
Types of strategies

▪ Cost leadership strategy:

▫ Offering low priced products for the same quality and
category as offered by the competitors.

▪ Differentiation Strategy:
▫ Creating brand loyalty y developing new and unique products
and services that are not easily duplicated by competitors.
▪ Innovation Strategy:
▫ The firm finds new ways of doing business that had not been done
earlier in the industry.
▪ Growth strategy
▫ Enhancing production capacity, expanding into newer or global
markets, diversifying into new products and services etc.
▪ Alliance strategy:
▫ Linkages and partnerships establishes with the distributors,
customers ,suppliers etc.
Strategic usage of IT

▪ Strategic usage of IT enables the business to accommodate the

impact of Internet-age firms and new information flows across the
enterprise.
Value chain Model