Turban Site: chapter3.ppt


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Turban Site: chapter3.ppt

  1. 1. Strategic Information Systems
  2. 2. Strategic Advantage and IT <ul><li>Strategic Information System (SIS) </li></ul><ul><li>Elements of strategic management </li></ul>
  3. 3. Elements of Strategic Management <ul><li>Innovation </li></ul><ul><li>Role of IT </li></ul><ul><li>Competitive intelligence </li></ul>
  4. 4. Competitive Intelligence <ul><li>Internet </li></ul><ul><li>Competitive strategy and sustainable advantage </li></ul>
  5. 5. Porter’s Competitive Forces Model <ul><li>Threat of new competitors </li></ul><ul><li>Bargaining power of suppliers </li></ul><ul><li>Bargaining power of customers </li></ul><ul><li>Threat of substitute products or services </li></ul><ul><li>Rivalry among existing firms </li></ul>
  6. 6. Porter’s Competitive Forces Strategies <ul><li>Cost leadership </li></ul><ul><li>Differentiation </li></ul><ul><li>Focus </li></ul><ul><li>Strategic positioning </li></ul><ul><li>Customer service </li></ul>
  7. 7. Use of Porter’s Model <ul><li>List players </li></ul><ul><li>Analyze business drivers </li></ul><ul><li>Devise a strategy </li></ul><ul><li>Investigate supportive information technologies </li></ul>
  8. 8. Porter’s Value Chain Analysis Model <ul><li>Primary activities </li></ul><ul><li>Support activities </li></ul>
  9. 9. Porter’s Value Chain Analysis Model - Primary Activities <ul><li>Inbound logistics </li></ul><ul><li>Operations </li></ul><ul><li>Outbound logistics </li></ul><ul><li>Marketing / sales </li></ul><ul><li>Service </li></ul>
  10. 10. Porter’s Value Chain Analysis Model - Support Activities <ul><li>Firm infrastructure </li></ul><ul><li>Human resource management </li></ul><ul><li>Technology department </li></ul><ul><li>Procurement </li></ul>
  11. 11. Strategic Information Systems Frameworks <ul><li>Porter and Millar’s framework </li></ul><ul><li>Wiseman and MacMillan framework </li></ul><ul><li>Bakos and Treacy framework </li></ul><ul><li>Customer resource life cycle framework </li></ul>
  12. 12. Porter and Millar Framework <ul><li>Industry structure has changed </li></ul><ul><li>Rules of competition have changed </li></ul><ul><li>Organizations have outperformed competition using IT </li></ul>
  13. 13. Porter and Millar Five-Step Process <ul><li>Access information intensity </li></ul><ul><li>Determine the role of IT in the industry structure </li></ul><ul><li>Identify and rank the ways in which IT can create competitive advantage </li></ul><ul><li>Investigate how IT might spawn new businesses </li></ul><ul><li>Develop a plan for taking advantage of IT </li></ul>
  14. 14. Wiseman and MacMillan Framework <ul><li>Based on Porter’s strategies </li></ul><ul><li>Innovation </li></ul><ul><li>Growth </li></ul><ul><li>Alliance </li></ul><ul><li>Time </li></ul>
  15. 15. Bakos and Treacy Framework <ul><li>Bargaining power and comparative efficiency </li></ul><ul><li>Search related costs </li></ul><ul><li>Unique product features </li></ul><ul><li>Switching costs </li></ul><ul><li>Internal efficiency </li></ul><ul><li>Interorganizational efficiency </li></ul>
  16. 16. Customer Resource Life Cycle Framework <ul><li>Ives and Learmouth, 1984 </li></ul><ul><li>Customer relationship key to strategic advantage? </li></ul><ul><li>Thirteen fundamental stages of the customer relationship </li></ul>
  17. 17. Framework for Global Competition <ul><li>Apply IT through global business drivers </li></ul><ul><li>Quality </li></ul><ul><li>Risk reduction </li></ul><ul><li>Suppliers </li></ul>
  18. 18. Strategic Information Systems Applications <ul><li>Cost leadership </li></ul><ul><li>Differentiation </li></ul><ul><li>Growth </li></ul><ul><li>Alliances </li></ul><ul><li>Innovation </li></ul><ul><li>Improve internal efficiency </li></ul><ul><li>Customer-oriented approaches </li></ul>
  19. 19. Strategic Information Systems Applications <ul><li>Florida Power and Light - computerized TQM </li></ul><ul><li>Geisinger - intranet </li></ul><ul><li>J.C. Penny - custom made suits </li></ul><ul><li>MacGregor - EDI </li></ul><ul><li>Otis: IT used to block competitors </li></ul>
  20. 20. Strategic Information Systems Applications <ul><li>Port of Singapore: intelligent systems </li></ul><ul><li>Volvo: global network </li></ul><ul><li>Baxter International: IT for the customer </li></ul><ul><li>Merril Lynch: cash management accounts system </li></ul><ul><li>American Airlines: reservation system </li></ul>
  21. 21. Strategic Information Systems Applications <ul><li>Odense Shipyard: CAD </li></ul><ul><li>Dun and Bradstreet: credit evaluation </li></ul><ul><li>National Car Rental: car pickup </li></ul>
  22. 22. Sustaining A Strategic Advantage <ul><li>Inward systems: efficient, effective </li></ul><ul><li>Comprehensive, innovative and expensive system: difficult to duplicate </li></ul>
  23. 23. Managerial Issues <ul><li>Implementing strategic information systems can be risky </li></ul><ul><li>Strategic information systems require planning </li></ul><ul><li>Sustaining competitive advantage is challenging </li></ul><ul><li>Ethical issues </li></ul>
  24. 24. Copyright  1999 John Wiley & Sons, Incorporated. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner in unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Son, Inc. Adopters of the textbook are granted permission to make back-up copies for his/her own use only, to make copies for distribution to student of the course the textbook is used in, and to modify this material to best suit their instructional needs. Under no circumstances can copies be made for resale. The publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.