Strategic information systems, computer systems that are used to change the
target level of the organization, operations, products, services, or
environmental relationships to help organizations achieve competitive
advantage.
The decision of the company's business strategy depends on:
§ The products and services company dhasilkan
§ Industry in which the company competes
§ Competitors, suppliers, and customers of the
company
§ The long term goal of the company
Business-level Strategy: Value Chain Model The most common strategy for this level is:
1. be producing products with low production
costs
2. differentiate products and services
3. change the scope of the competition either by
means of expanding its market to the global market and to narrow the market.
Value chain model, a model which addresses the primary and support activities that add value to the products and services of the company in which the information system is best used to gain competitive advantage.
Yaituaktivitas primary activity is directly associated with the production and distribution of the company's products or services. While supporters of the activity is an activity that allows the execution of the primary activity. Consists of organizational infrastructure, human resources, technology, and procurement.
Value refers to web customer-controlled network on companies that use information technology to coordinate its value chain in order to collectively produce products or services to market.
Products and Services Information System
System that creates product differentiation:
§ Companies can use IT to develop different
products.
§ Creating brand loyalty by developing new and
unique products and services
§ Products and services not easily duplicated by
competitors. For example, Dell Corporation.
The system supports Niche Markets Intensive analysis using customer data to support new ways of serving customers to contact and allow to develop new niche markets for specific products or services. For example, frequent guest program Wyndam Hotel Supply Chain Management and Efficient Customer Response System The system connects to the corporate value chain value chain of suppliers and consumers. System that directly connects back to the distributor of consumer behavior, production, and supply chain. Example: Wal-Mart customers to connect directly to the supplier purchase almost immediately. suppliers work to ensure the product is delivered to the store to replace the purchased product.
IT at the organizational level is used to avoid the shift of consumers to other suppliers and bind them to the company. Replacement cost is the cost incurred by the customer or the company for the time and resources are wasted when switching from one supplier or system to system supplier or competitor. For example, Baxter International.
Strategy-level corporate and Information Technology Expand the core competencies, the activities in which the company excels as a world-class leader. Information systems to encourage the sharing of knowledge across business units and hence improve the competence of the company.
Industry-level strategy and Information Systems: competitive forces and economic networks. The company operates in the larger environment consisting of other companies, governments, and nations. Partnership information, cooperative alliances undertaken by two or more companies that aim to share information to gain a strategic advantage. Helping companies gain access to new customers, create new opportunities for cross-selling and targeting products.
Porter's five forces model
In larger environments,
there are five main force or threats:
1. New market entrants
2. Substitute products and services
3. Supplier
4. Customer
5. Other companies that compete directly
Competitive forces model, a model which is used directly to explain the interaction of external influences, specifically threats and opportunities, and strategies that affect the organization's ability to compete. Internet technology has affected the structure of the industry
§ Providing technology that make it easier for
competitors to compete in terms of price and new players in the market.
§ Boost the information available to customers
grows in price thereby increasing the bargaining power.
§ Lowering power supplier
§ Substitutes
Business Ecosystem
IT plays a strong role in creating new forms of business product ecosystem. Business ecosystem is a network of suppliers, distributors, outsourcing firms, transportation companies, and manufacturing technology are interrelated.For example, Microsoft: 1 billion PCs around the world and hundreds of thousands of businesses rely on the Microsoft platform. EBay: Millions of people and thousands of businesses using the company's platform. Wal-Mart: Enterprise systems used by suppliers to increase efficiency
Network Economics
IT products and
services showed strong network effects and potentially create a situation of
"winner take all".Network causes the cost to add other participants
of zero or less, otherwise the benefits could be even greater.Contrary to the
law of profit decline in industrial and agricultural products. For
example, the value of the Internet is growing exponentially with a linear
increase in users. Because software can be certain standards (such as the
Windows operating system or the Windows Office), can be locked into the
standard and value of Windows is growing as more and more people are using
it.
Good strategy, using
IT to build products and services that cause network effects. Opportunity
management, dealing with the development of IT-based companies the opportunity
to gain a strategic advantage.
Management Challenges `
§ Some companies are facing major obstacles in
implementing contemporary systems.
§ Once profit is achieved, there is difficulty
in maintaining excellence.
§ Organizations often can not be changed to
accommodate the new technology fast enough
Guidelines for
Completion of a strategic systems analysis
§ Understanding the structure and dynamics of
industry competition in which it operates.
§ Understanding the business value chain,
enterprise, and industrial
§ Consider how companies can manage
"strategic shift" in an effort to implement a system that provides a
competitive edge
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