Management Information Systems

1
Management Information Systems

• Strategic Information Systems

2
Overview

• Fundamentals of Strategic advantage
• Applications Technology Issues

3
Strategic Advantage Concepts

• Competitive Factors
• Forces (Figure 12.2)
• Thrusts (Figure 12.3)
• Roles for IT
• Breaking Barriers (Figure 12.7)

4
The Competitive Environment
Threat of New Entrants
Bargaining Power of Suppliers
Rivalry Among Existing Competitors
Bargaining Power of Customers
Threat of Substitutes
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Competitive Thrusts
Competitive Forces
New Entrant
Supplier
Customer
Competitor
Substitute
Differentiation
Cost
Innovation
Strategies
Growth
Alliance
Other
6
Strategic Roles of IT

• Improving business processes (see Figure 12.6)
• Promoting innovation
• Locking customers suppliers (Allegiance /
  Baxter / AHS)
• Create switching costs (SABRE)
• Raising barriers to entry
• Developing strategic information base

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Breaking Business Barriers
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New Economics of Information

• Reach -- number of people receiving or exchanging
  information
• Richness
• Bandwidth
• Customization
• Interactivity
• Tradeoff?
• Traditionally, yes
• Now, not so much (Internet technologies!)

9
Porter's Value Chain
Competitive
Advantage
See Figure 12.10
10
Applications Issues

• Levels
• BPR
• Quality
• Agility
• Virtual Firms
• Knowledge Creating Firms
• Using the Internet Strategically
• Sustaining Advantage

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Perspectives Employment of IT
Levels Toward Use of IT To Create Competitive Adva
ntage
Level 1 Strategic
Level 2 Offensive
Level 3 Defensive
Level 4 Cost-Justified
Level 5 Controlled
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Agile Competition
The Fundamental Strategies of Agile Competition
Enrich Customers with Solutions to Their Problems
Cooperate to Enhance Competitiveness
Organize to Master Change and Uncertainty
Leverage the Impact of People and Information
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Virtual Company Characteristics
Adaptability
Six Characteristics of Virtual Companies
Opportunism
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Sustaining Strategic Success
Management Actions Strategies
Foundation Factors
Environment
Firm
Performance