Chapter 2'2 The Strategic Role Of Information Systems

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Chapter 2.2 The Strategic Role Of Information
Systems

• By
• Ronnie Bryant
• Mikal Mannings

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Overview

• Strategic Information Systems
• Countering competitive forces
• Leveraging technology in the value chain
• Implications for managers and organizations

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What Is a Strategic Information Systems

• Strategic Information Systems change the goals,
  operations, products, services, or environmental
  relationship of organization to help them gain in
  edge over competition.
• For example, State Street Bank and Trust Co.

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Countering Competitive Forces

• Product differentiation
• Focused differentiation
• Linking customers suppliers
• Becoming low cost producer

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Countering Competitive Forces

• Competitive forces model are models used to
  describe the interaction of external influences,
  specifically threats and opportunities, that
  affect an organizations strategy and ability to
  compete.

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Competitive Forces Model
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Product Differentiation

• Product differentiation is a competitive strategy
  for creating brand loyalty by developing new and
  unique products and service that are not easily
  duplicated by competitors.
• For example, Citibank www.citibank.com.
• Dell Computer www.dell.com.

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Focused Differentiation

• Focused differentiation is a competitive strategy
  for developing new market riches for specialized
  products or services where a business can compete
  in the target area better than its competitors.
• Datamining is an analysis of large pool of data
  to find patterns/rules that can be used as
  decision making and future behavior.

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Tight Linkages To Customers/Suppliers

• Firms create ties to customers and suppliers that
  lock customers into the firms products and
  that tie suppliers into a delivery timetable and
  price structure shaped by firm.

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Becoming The Low Price Producer

• Competitors.
• Keeping prices lower and shelves stock.
• Wal-mart stores.
• Supply chain management.
• Supply chain.

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Strategic Role Of Information Systems

• STRATEGIC INFO SYSTEM
• CAN CHANGE GOALS, OPERATIONS
• PRODUCTS, SERVICES
• ENVIRONMENT
• TO GAIN COMPETITIVE ADVANTAGE

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Value Chain Model

• Highlights primary support activities that add
  value to products, services
• Primary directly related to production,
  distribution
• Support infrastructure, human resources,
  technology, procurement

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Porters Value Chain Model
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The Affects Of Porter Value Chain
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Implications For Managers Organizations

• Strategic alliances, information partnerships
• Industry level strategic systems
• Managing strategic transitions
• Impact of the internet

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Questions???
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Questions From Chapter 2.2

• Name the four basic competitive strategies.
• What is a value chain and list the 9 activities
  and why it is important to the study of IS.
• Describe the Porters competitive force model and
  explain its importance to information systems.