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Strategic Information Systems:

3- 1 Strategic Information Systems

Strategic Advantage and IT:

3- 2 Strategic Advantage and IT Strategic Information System (SIS) Elements of strategic management

Elements of Strategic Management:

3- 3 Elements of Strategic Management Innovation Role of IT Competitive intelligence

Competitive Intelligence:

3- 4 Competitive Intelligence Internet Competitive strategy and sustainable advantage

Porter’s Competitive Forces Model:

3- 5 Porter’s Competitive Forces Model Threat of new competitors Bargaining power of suppliers Bargaining power of customers Threat of substitute products or services Rivalry among existing firms

Porter’s Competitive Forces Strategies:

3- 6 Porter’s Competitive Forces Strategies Cost leadership Differentiation Focus Strategic positioning Customer service

Use of Porter’s Model:

3- 7 Use of Porter’s Model List players Analyze business drivers Devise a strategy Investigate supportive information technologies

Porter’s Value Chain Analysis Model:

3- 8 Porter’s Value Chain Analysis Model Primary activities Support activities

Porter’s Value Chain Analysis Model - Primary Activities:

3- 9 Porter’s Value Chain Analysis Model - Primary Activities Inbound logistics Operations Outbound logistics Marketing / sales Service

Porter’s Value Chain Analysis Model - Support Activities:

3- 10 Porter’s Value Chain Analysis Model - Support Activities Firm infrastructure Human resource management Technology department Procurement

Strategic Information Systems Frameworks:

3- 11 Strategic Information Systems Frameworks Porter and Millar’s framework Wiseman and MacMillan framework Bakos and Treacy framework Customer resource life cycle framework

Porter and Millar Framework:

3- 12 Porter and Millar Framework Industry structure has changed Rules of competition have changed Organizations have outperformed competition using IT

Porter and Millar Five-Step Process:

3- 13 Porter and Millar Five-Step Process Access information intensity Determine the role of IT in the industry structure Identify and rank the ways in which IT can create competitive advantage Investigate how IT might spawn new businesses Develop a plan for taking advantage of IT

Wiseman and MacMillan Framework:

3- 14 Wiseman and MacMillan Framework Based on Porter’s strategies Innovation Growth Alliance Time

Bakos and Treacy Framework:

3- 15 Bakos and Treacy Framework Bargaining power and comparative efficiency Search related costs Unique product features Switching costs Internal efficiency Interorganizational efficiency

Customer Resource Life Cycle Framework:

3- 16 Customer Resource Life Cycle Framework Ives and Learmouth, 1984 Customer relationship key to strategic advantage? Thirteen fundamental stages of the customer relationship

Framework for Global Competition:

3- 17 Framework for Global Competition Apply IT through global business drivers Quality Risk reduction Suppliers

Strategic Information Systems Applications:

3- 18 Strategic Information Systems Applications Cost leadership Differentiation Growth Alliances Innovation Improve internal efficiency Customer-oriented approaches

Strategic Information Systems Applications:

3- 19 Strategic Information Systems Applications Florida Power and Light - computerized TQM Geisinger - intranet J.C. Penny - custom made suits MacGregor - EDI Otis: IT used to block competitors

Strategic Information Systems Applications:

3- 20 Strategic Information Systems Applications Port of Singapore: intelligent systems Volvo: global network Baxter International: IT for the customer Merril Lynch: cash management accounts system American Airlines: reservation system

Strategic Information Systems Applications:

3- 21 Strategic Information Systems Applications Odense Shipyard: CAD Dun and Bradstreet: credit evaluation National Car Rental: car pickup

Sustaining A Strategic Advantage:

3- 22 Sustaining A Strategic Advantage Inward systems: efficient, effective Comprehensive, innovative and expensive system: difficult to duplicate

Managerial Issues:

3- 23 Managerial Issues Implementing strategic information systems can be risky Strategic information systems require planning Sustaining competitive advantage is challenging Ethical issues

Slide 24:

3- 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.

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