1 / 16

Chapter 3

Chapter 3. Strategic Information Systems. Agenda. IT strategic deployment pressure Strategic information systems (SISs) Porter’s competitive forces model. Pressure. Increase performance, not just marginally, but substantially Private sector: Highly competitive Rapidly changing

alise
Download Presentation

Chapter 3

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 3 Strategic Information Systems

  2. Agenda • IT strategic deployment pressure • Strategic information systems (SISs) • Porter’s competitive forces model

  3. Pressure • Increase performance, not just marginally, but substantially • Private sector: • Highly competitive • Rapidly changing • Global markets • Public sector: • Improvement demand from taxpayers

  4. 1998 Study by Hackett Group • IT staff spend an average of 3 days/week administering day-to-day operations • Only 8% of IT staff focused on decision support or strategic planning for future use of IT technology • Half of application development for supporting revenue generating function • A third of application development for rebuilding administrative and support functions

  5. IT as Competitive Tool • Innovation (IT) • Speed (delivery) • Service (tailoring) • Quality (TQM) • Alliances (intranet, extranet)

  6. Agenda • IT strategic deployment pressure • Strategic information systems (SISs) • Porter’s competitive forces model

  7. Strategic Information Systems • IS supports or shapes a business unit’s competitive strategy for competitive advantage • Approaches • Outward (customer services) • Inward (employee productivity) • Strategic alliances (supply chain) • Competitive intelligence (internal & external information)

  8. Agenda • IT strategic deployment pressure • Strategic information systems (SISs) • Porter’s competitive forces model

  9. Porter’s Competitive Forces Model • Threat of new competitors • Bargaining power of supplies • Bargaining power of buyers • Threat of substitute product or services • Rivalry among existing firms

  10. Porter’s Value Chain Analysis Model • Primary activities • Inbound logistics (input) • Operations (manufacturing and testing) • Outbound logistics (storage and distribution) • Marketing and sales • Service (installation and repair)

  11. Porter’s Value Chain Analysis Model • Support activities • Firm infrastructure (accounting, finance, management) • Human resources management • Technology development (R&D) • Procurement • Value system • Increase efficiency, effectiveness, competitiveness

  12. Porter & Millar’s SIS Process • Access information intensity (usage) • Determine the role of IT in the industry structure (competitive forces) • Identify & rank IT in terms of creating competitive advantage • Investigate IT to spawn new business • Develop a plan for taking advantage of IT

  13. SISs Applications • Cost leadership • Differentiation • Growth • Time • Alliance • Innovation • Improve internal efficiency • Customer-oriented approaches

  14. Points to Remember • IT strategic deployment pressure • Strategic information systems (SISs) • Porter’s competitive forces model

  15. Discussion Questions • Is there any strategic information system in your organization? • Yes, name them. • No, can you suggest one or more? • What are the risk and ethical problems associated with implementing an E-commerce for a large grocery store?

  16. Assignment • Review technology guides 1-2 & chapters 1- 3 • Read chapter 4 • Group Assignment • Research paper

More Related