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1. Session 05: Competing with Information
Technology
Management Information System
(MIS)
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Academic Session: 2023/2024
Faculty Computer Science

2. Strategic Information Technology (IT)
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IT can change the way businesses
 A strategic information system is
any information system that uses IT to
help an organization…
◦ Gain a competitive advantage
◦ Reduce a competitive disadvantage

3. Competitive Forces
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 To succeed, a business must develop
strategies to counter these forces…
 Substitute products that may capture
market share
 Make a deal power of customers

4. Competitive Forces and
Strategies
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5. Five Competitive Strategies
1: Cost Leadership
◦ Become low-cost producers
◦ Help suppliers or customers reduce costs
2: Differentiation Strategy
◦ Differentiate a firm’s products from its
competitors’
◦ Focus on a particular segment or role of
market
3: Innovation Strategy
◦ Unique products, services, or markets
◦ Radical changes to business processes
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6. 4: Growth Strategy
◦ Expand company’s capacity to produce
◦ Expand into global markets
◦ Expand into new products or services
5: Alliance Strategy
 Establish linkages and alliances with
customers, suppliers, competitors,
consultants, and other companies
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7. Customer Focused Business
 What is the business value in being
customer-focused?
◦ Keep customers reliable
◦ Provide top-quality customer service
 Focus on customer value
◦ Quality, not price, has become the primary
determinant of value
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8. Providing Customer Value
Companies that consistently offer the
best value from the customer’s
perspective…
◦ Keep up with market movements
◦ Supply products, services, and
information anytime, anywhere
◦ Modify customer services to the individual
◦ Use Customer Relationship Management
(CRM) systems to focus on the customer
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9. Strategic Uses of IT
A company that highlights strategic
business use of IT would use it to gain a
competitive differentiation…
◦ Products
◦ Services
◦ Capabilities
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10. END
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