Chapter 3: Strategy and

Information System
huybx@ueh.edu.vn

 Part 1: Chapter 3 (Book: UsingMIS Global Edition 9th)

 2

How can organization use IS

to achieve competitive
advantage?
Part 1: Chapter 3 (Book: UsingMIS Global Edition 9th)

BUSINESS INFORMATION TECHNOLOGY

Achieving Competitive Advantage 3
1. How does organizational strategy determine
information systems structure?
2. What five forces determine industry structure?
3. How does analysis of industry structure determine
competitive strategy?
4. How does competitive strategy determine value chain
structure?
5. How do business processes generate value?
6. How does competitive strategy determine business
processes and the structure of information systems?
7. How do information systems provide competitive
advantages?
BUSINESS INFORMATION TECHNOLOGY
1. How Does Organizational Strategy Determine Information 4
Systems Structure?

Source: textbook [1], pg 68

BUSINESS INFORMATION TECHNOLOGY
2. What Five Forces Determine Industry Structure? 5

Competitive Forces
• Competition from vendors of substitutes.
• Competition from new competitors.
• Competition from existing rivals.
Bargaining Power Forces
• Bargaining power of suppliers.
• Bargaining power of customers.

BUSINESS INFORMATION TECHNOLOGY

 6
Use 5-forces Model to Identify Sources of
Strong Competition

Source: textbook[1], pg 69

BUSINESS INFORMATION TECHNOLOGY

3. How Does Analysis of Industry 7
Structure Determine Competitive
Strategy?

Porter's Four
Competitive
Strategies
Source: textbook [1], pg 70

BUSINESS INFORMATION TECHNOLOGY

 8
Business – IS alignment
 To be effective, the organization’s
goals, objectives, culture, and
activities must be consistent with
strategy.
 In MIS, this means all information
systems must reflect and facilitate the
organization's competitive strategy.

BUSINESS INFORMATION TECHNOLOGY

4. How Does Competitive Strategy 9
Determine Value Chain Structure?

Linkages
Source: textbook [1], pg 71

BUSINESS INFORMATION TECHNOLOGY

5. How Do Business Processes Generate Value? 11

Source: textbook [1], pg 74

BUSINESS INFORMATION TECHNOLOGY

Improved Material Ordering Process 12

Source: textbook[1], pg 75

BUSINESS INFORMATION TECHNOLOGY

6. How Does Competitive Strategy Determine Business Processes 13
and the Structure of IS?

Low-Cost Rental Value Chain

Source: textbook [1], pg 78

BUSINESS INFORMATION TECHNOLOGY

 14
High-Service Rental Value
Chain

Source: textbook [1], pg 78

BUSINESS INFORMATION TECHNOLOGY

 15

Source: textbook [1], pg 79

BUSINESS INFORMATION TECHNOLOGY

7. How Do IS Provide 16
Competitive Advantages?

Principles of
Competitive
Advantage

Source: textbook [1], pg 79

BUSINESS INFORMATION TECHNOLOGY