Strategic Information Systems

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Strategic Information Systems

• MBA 820
• Information Technology
• for Decision Making

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Strategic Information Systems
Change the goals, operations, products, services,
or environmental relationships of organizations
to help them gain or maintain an edge over
competitors.
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SIS Support

• Create innovative applications
• Support re-engineering
• Link business partners
• Cost reduction
• Competitive intelligence

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Competitive Forces Model

• SWOT Analysis
• Identify Threats
• New competitors
• Suppliers
• Customers

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Response Strategies

• Product Differentiation
• New products or services
• Become low cost producer
• Develop tighter linkages
• Customer orientation
• Develop strategic alliances
• Improve efficiency

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Competitive Forces Model - Examples

• ATMs
• H R Block
• Higher Education Course Formats
• Fed Ex
• EDI and Extranets
• How to sustain competitive advantage?

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Value Chain Model
Highlights the activities that add a margin of
value to the firms products or services where
information systems can be best applied to
achieve a competitive advantage.
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Value Chain Model

• Primary Activities
• Products and Services production/distribution
• Support Activities
• Value-adding activities
• Examples Automated warehousing, ordering
  systems, CAD/CAM, DT Publishing

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Leveraging Info Technology - Examples

• Harness Racing - OTB
• Banking - ATM Services
• Higher Education
• Distance Learning
• Connectivity

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Web-Based SIS

• Electronic Auctions
• Exchanges
• Direct Sales
• Tracking Systems
• Intelligent Agents
• Cross Selling
• Examples amazon.com, fedex.com, others

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Implications for Information Technology in
Business
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Readiness for Change

• Environment - internal vs. external
• Organizational Structure
• Culture/Politics
• Support from the top - including
• History - examine past success/failures

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Implications for IT Design

• Flexibility
• Support variety of styles, skills, knowledge
• Capable of adapting as needs change
• Integration of systems

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Management Challenges

• How to avoid failures
• IT roles in designing competitive effective
  organizations
• IT professionals can be change agents
• How to sustain competitive advantage
• Change - expect organizational culture to slow
  change efforts