Facebook Pages for Causes and Nonprofits | 1 NCRDS Sterling institute of management studies STRATEGIC USE OF INFORMATION SYSTEM MISpresented to: presented by: Sachin Theteprof. sandeep ponde Ajay Renuke Ganesh Shirsat Paresh Makwana Deepak R gorad Samisha Rathi MIS PRESENTATION
Strategy and Strategic Moves• Strategy: plan to gain advantage over enemy• Business strategy is plan to outperform competitors – Done by creating new opportunities, not beating rivals• Strategic Information System: Information system that create and seize opportunities• Strategic Advantage: Using strategy to maximize company strengths 1
The Fundamental Roles of IS in Business Support Strategies For Competitive Advantage Support Business Decision Making Support Business Processes and Operations
The Role of e-Business in Business • The Internet and related technologies and applications have changed the way businesses are operated and people work , how information systems support business processes, decision making and competitive advantages, The many businesses today using internet technologies to Web enable business processes and create innovative e-business applications.The Internet Supplier and Other Business Partners Extranets Company Boundary Supply Chain Management: Procurement , distribution and logistics Intranets Engineering and Manufacturing and Accounting and Research production Finance Intranets Customer relationship management: Marketing Sales Customer service Consumers and Business Customers
Achieving a Competitive Advantage Figure 2.1: Eight basic ways to gain competitive advantage 4
Achieving a Competitive Advantage (continued)Figure 2.2: Many strategic moves can work together to achieve a competitive advantage 5
Competitive Forces and Strategies Cost LeadershipDifferentiation Innovation Growth Alliances Other Strategies Threats of Threat of Bargaining Bargaining Rivalry of New Power of Power of Competitors Substitutes Entrants Customers Suppliers By Rakesh Roshan
Strategic Uses of ITBasic strategies in the Business Use of Information TechnologyLower Costs•Use IT to substantially reduce the cost of business process•Use IT to lower the costs of customer or suppliersDifferentiate•Develop new IT features to differentiate products and services.•Use IT features to reduce the differentiation advantages of competitors.•Use IT features to focus products and services at selected market places.Innovate•Create new products and services that include IT components.•Develop unique new markets or market niches with the help of IT.•Make radical changes to business processes with IT that dramatically cut costs, improve quality, efficiency or customer service orshorten time to market.Promote Growth•Use IT to manage regional and global business expansion.•Use IT to diversify and integrate into other products and services.Develop Alliances•Use IT to create virtual organizations of business partners.•Develop inter enterprise information systems linked by the Internet and extranets that support strategic business relationships withcustomers ,suppliers .subcontractors and others. By Rakesh Roshan
Value Activity Physical Information Processing Component ComponentEncompasses the physical tasks Includes the steps involved in capturing,needed to perform the activity manipulating and channeling the data necessary to carry out the activity. Eg. Wal-mart inventory management activity
How a customer-focused business builds customer value and loyalty using Internet technologies? Let customers Let customers place orders place orders through directly distribution Build a customer partners database segmented by Internet Internet preferences and Extranets profitability Customer Transaction Database Link employee and Database distribution partners to databases and customers Make loyalGive all employees customers feel Let customers check Intranetsa complete view of special with order history and delivery status Extranets each customer websites personalization Intranets Internet Build a Web community of customers, employees and partners
Strategic Use of IT • There are many ways that organizations may view and use IT. For Ex, Companies may choose to use Information Systems strategically, or they may be content to use IT to support efficient every day operations. But if a company emphasized strategic business uses of IT, Its management would view IT as a major competitive differentiator. They would then device business strategies that would use IT to develop products, services ,and capabilities that would give the companies major advantages in the markets in which it competes. Reengineering Business Processes One of the most important implementations of competitive strategies is businessProcess reengineering(BPR), most often simply called reengineering. Reengineering is afundamental rethinking and radical redesign of business processes to achieve Dramaticimprovements in cost, quality, speed, and services. So BPR combines a strategy ofpromoting business innovation with a strategy of making major improvements to businessprocesses so that a company can become a much stronger and more successful competitorin the marketplace.
Example Reengineering Order Management•Customer relationship management systems using corporate intranets and theInternet.•Supplier managed inventory systems using the Internet and extranets.•Cross-functional ERP software for integrating manufacturing, distribution,finance and human resource processes.•Customer-accessible e-commerce websites for order entry, status checking,payment and services.•Customer, product, and order status databases accessed via intranets andextranets by employees and suppliers.
Intranet• An intranet is a network inside an organization that uses Internet technologies to provide an Internet-like environment within the enterprise for information sharing, communications, collaboration and the support of business process. An intranet is protected by security measures such as passwords, encryption and firewalls and thus can be accessed by authorized users through the Internet The Business Value Of IntranetsOrganizations of all kinds are implementing a board range of intranet uses. OneWay that companies organize intranet application is to group them conceptuallyinto a few user services categories that reflect the basic services that intranetsoffer to their users. These services are provided by the intranet’s portal,browserand server software as well as by other system and application software andgroupware that are part of a company’s intranet software environment
Role of Intranet Communication and Collaboration Existing Communicate and collaborate E-mail, voice- with e-mail, discussion forums, Mail Systems chat and conferencing. Intranet Enterprise F Business Operations and Information Internet Existing management Portal I Databases Secure , universal R And access to view E Enterprise and use corporate Applications and external data. W A Web Publishing L Extranet Author, publish and HTML, MS Office Share hypermedia Employees L XML, Java and documents Other Document Types Customers, Suppliers, Intranet Portal Management And Partners Existing Centrally administer Hardware Clients , servers, And Security, directory Networks And traffic
Extranets connect the interconnected enterprises to consumers, business customers, suppliers and other business partners (Role of Extranet) Consumers Partners Consultants •Customer Self-Service Contractors •Online Sales and Marketing •Sales Force Automation •Joint design •Build-to-Order products •Outsourcing •Just-in-Time Ordering Internetworked Enterprise Suppliers and Distributers•Distributer management Business Customers •SCM •Procurement
How IT Supports Business ActivitiesChallenge: One of the first challenges managers face is understanding howthey can use IT to support business activities. Porter & Millar’s concept of the value chain (introduced in 1985) helps explain which business activities can be analyzed and transformed through the use of IT.
Value Chain: Value chain is a chain of activities. Products pass through all activitiesof the chain in order and at each activity the product gains some value. Value activities Primary activities Support activities
Value Chain of a firm Administrative Coordination and support Services Collaborative Workflow Intranet Human resource Management Employee Benefits intranet Technology Development Product Development Extranet with PartnersSupportProcesses Procurement of Resources E-Commerce Web Portals for Suppliers Competitive Customer Advantage Service Inbound Logistics Marketing and Marketing and Operations Sales sales Automated Computer CRM Just-in-time Online Point-of-Primary Aided Flexible Warehousing sale and order TargetedBusiness Manufacturing Processing MarketingProcesses
Value chain is a system of interdependent linkagesPorter’s view Eg. Investments in a more expensive product design and superior material may reduce after sale service cost
Value System: includes the value chains of supplier, of the firm, of the channels through which the firm distributes its products and services and of the ultimate buyer.Supplier Firm Channel BuyerValue chain value chain value chain value chainEg. A link between the automaker’s and steel makers inventory systems canprovide information on delivery dates.
Knowledge Management Systems• Knowledge Management Systems as the use of information technology to help gather, organize and share business knowledge within an organization. In many organizations, hypermedia databases at corporate intranet websites have become the knowledge bases for storage and dissemination of business knowledge. This knowledge frequently takes the form of best practices, policies and business solutions at the project , team, business unit and enterprise levels of the company. For many companies, enterprise information portals are the entry to corporate intranets that serve as their knowledge management systems. That’s why such portals are called enterprise knowledge portals by their vendors.
Knowledge Management System Portals Web User(employee/customer)Single point of access to all corporate data Portal server with knowledge management Engine/server componentPersonalized views of news and data •Automatically crawls(searches) structured or unstructured data sources •Categorizes searched data, tags andCollaboration tools hyperlinks information •Automatically builds user profilesCommunity work areas Enterprise knowledge portal • based in activity. Data Sources Structured data Sources Unstructured Data Sources Enterprise Knowledge ERP CRM Other E-mail File System Enterprise Web Databases Databases Databases Groupware •Documents Knowledge •Internet •Presentations •Intranet Base •Extranet