Chapter 2 Strategic Uses of Information Systems - PowerPoint PPT Presentation

Loading...

PPT – Chapter 2 Strategic Uses of Information Systems PowerPoint presentation | free to download - id: 66cfae-ZGFkO



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Chapter 2 Strategic Uses of Information Systems

Description:

Strategic Uses of Information Systems Learning Objectives When you finish this chapter, you will Understand business strategy and strategic moves. – PowerPoint PPT presentation

Number of Views:34
Avg rating:3.0/5.0
Date added: 13 April 2020
Slides: 35
Provided by: Eff8
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Chapter 2 Strategic Uses of Information Systems


1
Chapter 2 Strategic Uses of Information Systems
2
Learning Objectives
  • When you finish this chapter, you will
  • Understand business strategy and strategic moves.
  • Recognize how information systems can give
    business a competitive advantage.
  • Understand basic initiatives for gaining a
    competitive advantage.

3
Learning Objectives
  • Know what makes an information system a strategic
    information system.
  • Understand the fundamental requirements for
    developing strategic information systems.
  • Recognize circumstances (keadaan) and initiatives
    that make one SIS succeed and another fail.

4
Strategy and Strategic Moves
  • Strategy
  • A plan designed to help an organization
    outperform its competitors.
  • Strategic Information Systems
  • Information systems that help seize
    opportunities.(Sistim informasi yang membantu
    menangkap peluang)
  • Can be developed from scratch, or they can evolve
    from existing ISs.(Dapat mengembangkan sejak
    awal, atau dari IS yang sudah ada /dikembangkan)

5
Achieving a Competitive Advantage
  • Profits increase significantly through increased
    market share. (Laba meningkat/kan dengan mantap
    melalui/sampai dengan penguasaan pasar
    ditingkatkan)
  • The essence of strategy is innovation, so
    competitive advantage often occurs when an
    organization tries a strategy that no one has
    tried before.
  • Dell was the first PC manufacturer to use the Web
    to take customer orders.

6
Achieving a Competitive Advantage
Figure 2.1 Eight basic ways to gain advantage
7
Achieving a Competitive Advantage
8
Achieving a Competitive Advantage
  • Initiative 1 Reduce Costs
  • Lower Costs
  • Lower Price
  • Bigger Market Share

9
Achieving a Competitive Advantage
  • Initiative 2 Raise Barriers to Entrants
  • Patenting
  • High expense of entering industry
  • State Street, Inc. (Pension fund management
    business)

10
Achieving a Competitive Advantage
  • Initiative 3 Establish High Switching Costs
  • Explicit Switching Costs
  • Fixed and nonrecurring (tidak berulang)
  • Implicit Switching Costs
  • Indirect costs in time and money of adjusting to
    a new product (Biaya tak langsung pada suatu saat
    dan uang untuk menyesuaikan bagi suatu produksi
    baru)

11
Achieving a Competitive Advantage
  • Initiative 4 Create New Products and Services
  • Dynamic
  • The advantage lasts only until other
    organizations in the industry start offering an
    identical or similar product or service for a
    comparable or lower price.

12
Achieving a Competitive Advantage
  • Initiative 5 Differentiate Products and
    Services
  • Product differentiation
  • Brand recognition
  • Examples of brand name success
  • Levis jeans
  • Chanel perfumes
  • Calvin Klein clothing

13
Achieving a Competitive Advantage
  • Initiative 6 Enhance Products and Services
  • Examples
  • Auto manufacturers enticing customers with a
    longer warranty
  • Real estate agents providing useful financing
    information to potential buyers
  • Charles Schwab moving stock trading services
    on-line before Merrill Lynch

14
Achieving a Competitive Advantage
  • Initiative 7 Establish Alliances (membuat
    bundling/sekutu/serikat)
  • Combined service may attract customers
  • Lower cost
  • Convenience
  • Examples
  • Travel industry
  • HP and FedEx

15
Achieving a Competitive Advantage
16
Achieving a Competitive Advantage
  • Initiative 8 Lock in Suppliers or Buyers
  • Bargaining Power
  • Purchase volume
  • Strengthen perception as a leader
  • Create a standard

17
Strategic Information as a Competitive Weapon
  • Strategic Information Systems (SIS)
  • Any IS that can help an organization achieve a
    long-term competitive advantage
  • SIS embodies two types of ideas
  • Potentially-winning business move
  • How to harness IT to implement that move
  • Two conditions for SIS
  • IS must be serving an organizational goal
  • IS unit must be working with the managers of the
    other functional units

18
Strategic Information as a Competitive Weapon
  • Creating an SIS
  • Top management must be involved from initial
    consideration through development and
    implementation.
  • SIS must be a part of the overall organizational
    strategic plan.

19
Strategic Information as a Competitive Weapon
20
Strategic Information as a Competitive Weapon
21
Strategic Information as a Competitive Weapon
  • Re-engineering and Organizational Change
  • To implement an SIS and achieve a competitive
    advantage, organization must rethink the entire
    way in which it operates.
  • Goal of re-engineering is to achieve efficiency
    leaps of 100 percent or even higher.

22
Strategic Information as a Competitive Weapon
  • Competitive Advantage as Moving Target
  • SISs developed as strategic advantages quickly
    become standard business.
  • Banking industry (ATMs and banking by phone,
    click BCA)
  • Companies must continuously (merenungkan)
    contemplate new ways of utilizing information
    technology to their advantage.
  • SABRE, American Airlines reservation system

23
Strategic Information as a Competitive Weapon
  • Sources of Strategic Information Systems
  • Existing System
  • New Service
  • New Technology
  • Excess (kelebihan) Information
  • Vertical Information

24
Strategic Information as a Competitive Weapon
  • From Automation to SIS
  • An organization can gain a competitive advantage
    through automation of a manual process.
  • American Hospital Supply automated manual orders
    and improved services, resulting in a 17 percent
    compound annual growth rate in sales.

25
Strategic Information as a Competitive Weapon
  • SIS from a New Service
  • A company may gain competitive advantage by
    providing a new service using IT.
  • Merrill Lynch was the first to use IT to provide
    a cash-on-demand service for their investors and
    captured a lions share of the market.

26
Strategic Information as a Competitive Weapon
  • SIS from New Technology
  • A company that figures out how to use a new
    technology can gain a competitive advantage.
  • American Express used new scanning technology to
    process credit charges and saved millions of
    dollars in reduced labor costs.

27
Strategic Information as a Competitive Weapon
  • SISs from Excess Information
  • An organization can gain an advantage by putting
    excess information toward a new product or
    service.
  • Sears Roebuck and Company uses its customer
    record database to provide target information to
    its subsidiaries in insurance and real estate.

28
Strategic Information as a Competitive Weapon
  • SISs from Vertical Information
  • Organizations use ISs to augment(meningkatkan)
    their businesses vertically by offering
    (menawarkan) related services.
  • Realtors offer financing and relocation
    information in addition to information about
    houses for sale.

29
Strategic Information as a Competitive Weapon
  • Good SIS ideas must be carefully executed if a
    company is to seize(menangkap) opportunities
    (kesempatan).
  • McKesson Drugs, Inc., automated its operations
    and gained a competitive advantage.
  • Enhanced existing services
  • Provided new services
  • Cut costs
  • Created high switching costs for clients

30
Strategic Information as a Competitive Weapon
  • How one IS Failed
  • Citicorp tried to use an SIS to implement a
    15-minute mortgage approval plan called
    MortgagePower Plus, but the program failed.
  • Failed strategically due to unwise business
    shortcuts.
  • Failed operationally due to poor technical
    implementation .

31
Strategic Information as a Competitive Weapon
  • Success and Failure on the Web
  • Just being first on the Web is not enough to be
    successful business ideas must be sound.
  • An organization must carefully define what buyers
    want.
  • Establishing a recognizable brand name is
    important but does not guarantee success
    satisfying needs is more important.

32
The Bleeding Edge
  • Business owners must develop new features to keep
    the system on the leading edge.
  • Adopting a new technology involves great risk.
  • No experience from which to learn
  • No guarantee technology will work or customers
    and employees will welcome it

33
The Bleeding Edge
  • The bleeding edge failure in an organizations
    effort to be on the technological leading edge.
  • Some organizations let competitors assume the
    risk associated with being on the leading edge.
  • Risk losing initial rewards.
  • Can quickly adopt and even improve pioneer
    organizations successful technology.

34
Ethical and Societal Issues The Power of
Information
  • The U.S. Department of Justice, the Attorneys
    General of several states, and Sun Microsystems
    filed suit against Microsoft claiming the company
    violated fair trade practices in establishing
    itself as a monopoly.
  • Started with DOS on every PC continued with
    Windows.
  • Bundled Internet Explorer with Windows.
  • Modified Java to run only on Windows.
About PowerShow.com