SYNERGIES, CORE COMPETENCIES ,AND NETWORK-BASED STRATEGIES

Information system can improve the overall performance of these buisness units by promoting synergies and core corporations.

Synergies:
The output of some units can be used as inputs to other units, these relationship lower costs and generate profits.

The use of IT in synergy situation:
‡tie the operations of disprate buisness units so they can act as the whole ‡Information system help the merged banks lower retailing costs and increase cross marketing of financial products.

that rely on knowledge that is gained over many year of experience.Enhancing core competencies: ‡ An activity for which a firm is a world-class leader. or simply key people who follow the literature and stay abreast of new external knowledge. ‡ The advantage of IS that encourage the sharing of knowledge across buisness units: ‡ 1*enhance competency ‡ 2*help employees become aware of new external knowledge ‡ 3*help buisness levarege existing competencies to related market .

Network based strategies ‡ The availability of internet and networking technology have inprised strategies that take advantage of firms abilities to create networks or network with each other.and that includes: ‡ 1*net work economies ‡ 2*virtual company model ‡ 3*buisness ecosystems .

and can used for people who want to share their experience.the lower the marginal gain in output.untill a point is reached where the additional input produce no additional outputs. This network prespective . .Network economies ‡ THE law of diminishing returns: The more any given resources is applied to production .can be strategically useful.

service from an external vendor or when it need to move quickly .and ideas enable it to ally with other company to create and distribute products and services without being limited by traditional organizational boundaries or physical locations.Virtual company model: ‡ Uses network to link people. ‡ Advantage:which is cheaper to acquire products.2.assets.

‡ That build on the idea of the value web described earlier .Business ecosystem ‡ Another term for those loosely coupled but interdependent network of suppliers .3. outsourcing firm. and technology manufactures.distributors.

competitive advantage is not always sustainable.because competitors can retaliate and copy strategic system .Using system for competitive advantage: ‡ 1-Sustaining competitive advantage: ‡ The competitive advantages strategy systems confer don t necessarily last long enough to ensure long term profitability. .

and how it works. ‡ Successful firms and managers understand what IT can do. .the more profitable it will be.and measure its impact on revenues and profit.2-Aligning it with buisness objectives: ‡ The research on IT and buisness performance has found that the more successfully afirm can align information technology with its buisness goals.

managers need to perform strategic system analysis ‡ 1-what are the structure of the industry in which the firm is located?? ‡ 2-what are the buisness.Performing a strategic system analysis: ‡ To align IT with the buisness and use information system effectively for competitive advantage.3.firm.and industry value chains for this particular firm?? ‡ 3-Have we aligned IT with our business strategy and goals?? .

that affect both social and technical elements. ‡ Such change often entail blurring of organizational boundaries .Managing strategic transitions: ‡ Movement between level of sociotechnical systems.4.both external and internal .

and using web tools to configure and price an automobile: ‡ 1-Management decision prpblem ‡ 2-Using database clarify buisness strategy ‡ 3-Using web tools to configure and price an automobile .identifying information system to support a business strategy.Hand on MIS Projects ‡ The project in this section give you hands-on experience .analyzing organizational factors affecting the information systems of merging companies.using database to improve decision making about buisness strategy.

customer Analysis.database design ‡ Buisness skill:Resevation system. .2-Using database clarify buisness strategy ‡ Software skill:Database querying and reporting. 3-Using web tools to configure and price an automobile ‡ Software skills :internet based software ‡ Buisness skill:researching product information and pricing.

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