This document provides an overview of a lecture on management information systems and competing with information and communication technology. It defines ICT and discusses its building blocks. It also covers strategic uses of ICT, including leveraging investments in digital technologies to gain competitive advantages like raising barriers to entry, locking in customers and suppliers, and increasing market share. Additionally, it discusses using ICT to improve customer service and strategic positioning of emerging Internet technologies.

1. Management Information Systems
Competing with Information and
Communication Technology in the Digital Age
Lecture-2

2. • Definition of ICT
• Building blocks of ICT
• Identify competitive strategies of information Communication
Technologies
• Process reengineering frequently involves the strategic use of e-
business technologies
• Identify the business value of using e-business technologies
Outline of the lecture

3. Definition
• It is a convergence phenomena to get multiple services on a
single device and unified communication link
• It is Convergence of:
• Data processing
• Computer
• Computer Networks
• Communications and
• Multimedia Digital contents

4. Capabilities of ICT
• ICT enable users to
 Access
 Storage
 Transmission
 Online Transactions
 Manipulate information
 Use information effectively and efficiently

5. Example of Convergence Phenomena

6. Building Blocks of ICT
• Computers/digital devices/Smart devices
• Telecommunication and/or Computers
networks
• Multimedia digital contents/web
• Human know how
 Knowledge
 Skills
 Attitude

7. Multimedia
• Multimedia: Information in many forms (text,
numbers, audio and motion pictures)

8. What is Communication?
 Communication is the act of
transferring information from one place
to another
In the case Computer Networks: it is
exchanging information from computer
to another computer through computer
network

9. Synchronous Communication
• Online Chat
– Text based
– Audio based
– Video based
• Mobile Technology
– Conferencing
– Phone
• Satellite
– Television channel
– Video Conferencing
9

10. Computers
Computer is an electronic device with the capabilities of:
Can store large amounts of data
Can perform certain operations on data
Displays the result as output of the operation
Process data whenever needed

11. Computer Network
 A computer network is an interconnection between
among two or more computer
 Nodes
 Links
 21st century is beyond connected devices connected
intelligence through enterprise collaborations to:
 Make smart decisions making and
 effective and efficient business operations
 Strategic competitions

12. The Age of Networked Intelligence
• Networking of humans through technology
necessitated knowing the following concepts:
• Life long Learning
• Digital economy
• Digital Age
• ICT changes the way compete in
business world

13. Knowledge Economy
• Individuals and enterprises create wealth by applying
• Knowledge
• Networked human intelligence
• In modernizing the way we operate
through automation and/or augmenting
human in sectors like
 Manufacturing,
 Agriculture and
 Services
 Mining

14. What is Knowledge Economy
• Application of human know how
• Life long learning
• “SMART” products based machine learning
and Internet of Things (IoT)
• Economy added value will be created by brain
not only through muscle
• Mass Customized rather than mass-produced

15. Mass Customization
• Mass customization is a marketing and
manufacturing technique which combines the
flexibility and personalization of custom-made
products with the low unit costs associated with
mass production
• Involves sensitivity to customer preferences with
standardization of processes
• Seeks to combine:
• flexibility
• low costs and
• high quality and
• promote economics of scale

16. How Introducing ICT Affects
Traditional Organization Structure
Need for new structures…..

17. Prerequisites to Implement Information
Communication Technology
• Information Communication Technologies are
flexible tools, constrained primarily by :
• Managers’ will to use them
• Expectations about their roles, and
• Applications choices
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18. ICT affects Aspects of Organization
• Division of Labor
–Who does what?
• Division of Decision Rights
–Who should make which
decision?
• Coordination Mechanisms
• Organizational Boundaries
• Informal Structures
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19. ICT Affects Organizational Structure as:
• Flattening organizations
• Separating work from location
• Reorganizing work-flows
• Increasing flexibility/agility
• Redefining organizational boundaries

20. ICT Flattens Organization Traditional Organizational
Structure

21. Information Architecture of Organizations
and Its Environment

22. Towards Digital Firm

23. Strategic Use of ICT for Competitive Advantage
• Competitive Advantage is created or
maintained with the company succeeds in
performing some activity of value to
customers significantly better than its
competitors.

24. Strategic Use ICT for Competitive Advantage
• Make major investments in advanced ICT applications that build
barriers to entry against industry competitors or outsiders
• Include ICT components in products and services to make
substitution of competing products or services more difficult
• Leverage investment in
• ICT people
• Hardware
• Software
• Databases and
• Networks from operational uses into strategic
applications

25. Strategic Uses of Information Technology
Raise
Barriers
to Entry
Build a
Strategic ICT
Platform
Locking in
Customers
and Suppliers
Increase
amount of
investment or
complexity of
ICT needed to
compete
Use ICT to improve
quality
Use ICT to link
business to
customers and
suppliers
Leverage
investment in
Emerging ICT
resources from
operational uses
to strategic uses
Increase
Market Share
Create New
Business
Opportunities
Enhance
Organizational
Collaboration
Strategy
Emerging ICT Role
Outcome

26. Strategic Information Systems
• Cost Strategy: Low cost producer
• Differentiation Strategy: distinguishing company’s product by
one or more feature from product of other companies
important to the customers
• Supports strategic changes – like reengineering
• Growth Strategy:Significantly expanding production capacity,
entering new global markets, diversifying into new areas, or
integrating related products or services can all be a
springboard to strong company growth.
• Alliance Strategies. Establishing new business linkages and
alliances with customers, suppliers, former competitors,
consultants, and others can create competitive advantage
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27. Strategic Information Systems
• Innovation Strategy: Unique products or
services or changes in business processes can
cause fundamental changes in the way an
industry does business.
• Provide business intelligence by collecting and
analysing information
• Improve internal efficiency
• Customer-oriented approaches

28. Internet Value Chains
• Value chains can be used to strategically position a
company’s Internet-based applications to gain
competitive advantage.
 This value chain model outlines several ways that a
company’s Internet connections with its customers
could provide business benefits and opportunities for
competitive advantage
• Example: Company-managed
•Internet newsgroups,
•Chat rooms, and
•E-commerce websites are powerful tools for
market research and product development, direct
sales, and customer feedback and support.

29. Internet Value Chains
 Company Internet connections with its suppliers could
be used for competitive advantage.
• Example:
• Online auctions and exchanges at suppliers’ e-
commerce websites and
• online shipping, scheduling, and status information at
an e-commerce portal that gives employees immediate
access to up-to-date information from a variety of
vendors.
• This can substantially lower costs, reduce lead times,
and improve the quality of products and services.

30. The Internet Value Chain
Marketing and
Product
Research
Sales and
Distribution
Support and
Customer
Feedback
Data for market
research,
establishes
consumer
responses
•Access to customer
com-ments online
•Immediate re-
sponse to customer
problems
•Low cost
distribution
•Reaches new
customers
•Multiplies
contact points
Increase
Market Share
Lower
Cost Margins
Maintain Valuable
Customers and
Relationships
Internet
Capability
Benefits
to
Company
Opportunity
for
Advantage

31. Customer Oriented Services and Products
Technologies like
 Intranets
 Internet, and
 Extranet websites create new channels for interactive communications:
 within a company and
outside company with:
 customers,
 suppliers,
 business partners, and
 others in the external business environment
This intern, encourages cross-functional collaboration with customers in:
Product development,
Marketing
delivery
Service and
technical support.

32. Customer-Focused e-Business: Customer Value
Let customers
place orders thru
distribution
partners
Transaction
Database
Link Employees
and distribution
partners
Let customers
check order history
and delivery status
Let customers
place orders
directly
Customer
Database
Build a
community
of customers,
employees,
and partners
Give all
employees a
complete view
of customers

33. Customer Service on the Web
 Providing Search and
Comparison Capabilities
 Providing Free Products
and Services.
 Providing Technical and
Other Information and
Service.
 Allowing Customers to
Order Customized Products
and Services Online
 Letting Customers Track
Accounts or Order Status
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34. Tools for Customer Service
 Personalized Web
Pages
 FAQs
 Tracking Tools
 Chat Rooms
 E-mail and Automated
Response
 Help Desks and Call
Centers
 Troubleshooting Tools
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35. Strategic Positioning of Emerging Internet
Technologies
For Internet technologies to be used strategically
,applications must be correctly positioned.
 The strategic positioning matrix can be used to help a
company optimize the strategic impact of Internet
Technologies.
The matrix recognizes two major drivers:
Internal Drivers: The amount of connectivity,
collaboration and use of ICT within a firm.
External Drivers: The amount of connectivity,
collaboration and use of ICT by customers,
suppliers, business partners, and competitors.

36. Strategic Positioning of Emerging Internet
Technologies
• Cost and Efficiency Improvements.: When there is a low amount
of connectivity, collaboration and use of ICT within the company
and by customers and competitors, a firm should focus on
improving efficiency and lowering costs by using Internet
technologies to enhance communications between the company
and its customers and suppliers.
• Performance Improvement in Business Effectiveness: When
there is a high amount of internal connectivity, but external
connectivity by customers and competitors is still low, a firm
should focus on using Internet technologies like intranets and
extranets to make major improvements in business
effectiveness.

37. Strategic Positioning of Emerging Internet
Technologies
Global Market Penetration: When there is a high
degree of connectivity by customers and competitors
and low internal connectivity, a firm should focus on
developing Internet-based applications to optimize
interactions with customers and build market share.
Product and Service Transformation: When a company
and its customers, suppliers, and competitors are
extensively networked, Internet technologies should be
used to develop and deploy products and services that
strategically reposition it in the marketplace.

38. Strategic Positioning of Emerging ICT Solutions
Global Market
Penetration
E-Commerce Website
Value-added ICT Services
Product and Services
Transformation
E-Business; Extensive
Intranets and Extranets
Cost and
Efficiency
Improvements
E-Mail, Chat Systems
Performance
Improvements in
Business
Effectiveness
Intranets and Extranets
Strategy
Solution
Low
High
High
E-Business Processes Connectivity
Internal Drivers

39. Impacts of Implementing ICT Solutions
• Increase product
by an order of
magnitude
• Examine process
• Vision
• Increase Profits
• Benefit from
better product
• Needs are met
• Tendency to
return
• Loyalty
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Teams
 Less Workers
 More Work
 Empowered
 Layoffs
Company Customers Employees

40. The Need for Change Management
• Appropriate change mgt. is required to
implement ICT solutions in our organization to
deliver positive Impact

41. Thank You