four competitive strategies enabled by information systems

Strategic information systems (SIS) are information systems that are developed in response to corporate business initiative. Here, the objective of the firm is to become the lowest cost producer in the industry and is achieved by producing in large scale which enables the firm to attain economies of scale. Strategies Alliance: Organizations can use information systems to create and enhance relations with partners via applications, such as developing virtual organization and inter-organizational information system. Slack is the popular example of intra - organization communication and GitHub is popular for code sharing tools in the software business. An approach must then be identified for each risk, either avoiding or mitigating the risk. #1 Cost Leadership. Using Information Systems to Achieve Competitive Advantage . How can information systems support each of these competitive strategies? 12. Creating products and services based on information 3. What are four competitive strategies enabled by information systems that firms can pursue? The information required to support business strategy and the development of information systems relevant to providing such information needs to be planned and fitted with each other. COMP 5131 11 ¾Innovation Strategy Find new ways of doing business … IT and Porter’s Competitive Forces Model and Strategies. Offered Price: $ 6.00 Posted By: kimwood Posted on: 04/14/2016 10:29 AM Due on: 05/14/2016 Computers, keyboards, disk drives, iPads, and flash drives are all examples of information systems hardware. There are two basic types of competitive advantage a firm can possess: low cost or differentiation. There are, however, four generic strategies that a business can use to create a general outline of its marketing strategy… Zara is by far the largest, most profitable and most internationalized fashion retail chain. Information systems that allow for the sharing of knowledge across business lines enhances competency and provides the business with a competitive advantage over its rivals. The model enabled the company to evaluate many more different variables, scenarios, and alternative strategies than had been possible before. COMP 5131 10 ¾Differentiation Strategy On the Dell Inc. Redefining a company's business in terms of information 2. E.g., Google’s continuous innovations, Apple’s iPhone. There are three strategies for establishing a competitive advantage: Cost Leadership, Differentiation, and Focus (Cost-focus and Differentiation-focus). There are four generic strategies, each of which often is enabled by using information technology and systems: low-cost leadership, product differentiation, focus on market niche, and strengthening customer and supplier intimacy Low-Cost Leadership Use information systems to achieve the lowest operational costs and the lowest prices. Cost Leadership. • List and describe four competitive strategies enabled by information systems that firms can pursue. Companies utilizing this type of competitive strategy, such as Dell Computer, may use information systems to customize and personalize products to fit specifications of individual consumers. 9/15/2013 2 Information System Strategies for Dealing with Competitive Forces • Basic strategy: Align IT with business objectives 75 percent of businesses fail to align their IT with their business objectives, leading to lower profitability. The information revolution and the tales of competitive advantage have certainly altered how managers throughout business see the role of Information Systems. There is no one way to market your products -- each business is unique and should have its own unique strategy. This alignment of business strategy with IS results in information systems strategy. A guiding systems strategy for DOC This Information Systems Strategic Plan (ISSP) is the guiding strategy for planning and implementing new information communication and technology (ICT) initiatives for DOC, and the highest level planning document for ICT across our organisation. One of the most renowned among managers making strategic decisions is the five competitive forces model that determines industry structure. There are four generic strategies used to manage competitive forces, each of which often is enabled by using information technology and systems: Low-cost leadership: Use information systems to achieve the lowest operational costs and the lowest prices. Where it was once perceived to be only part of the operating of a business, there is now an increasing recognition of the value of information. Four Generic Strategy Alternatives for Marketing. Strategies for Competitive Advantage . We will spend some time going over these components and how they all work together in chapter 2. Five Competitive Strategies. • Describe what the competitive forces model explains about competitive advantage. The Government of Canada’s Information Technology Strategic Plan sets out the four-year strategic direction for information technology (IT) in the federal government. The Role of Information Technology in Business Success Published on May 14, 2015 May 14, 2015 • 307 Likes • 57 Comments APA. International Business Strategies in the Digital World Describe international business and IS strategies used by companies operating in the digital world. 555 Words. For example, a human resource manager will be able to tell what will happen to the revenue, production, sales and … Companies use this information to improve their business operations, make strategic decisions and gain a competitive edge. Risk management approaches should then be used to plan all aspects of the project, including the activities conducted and the budget spent. Advances in computer-based information technology in recent years have led to a wide variety of systems that managers are now using to make and implement decisions. They may deliver a product or service that is at a lower cost, that is differentiated, that focuses on a particular market segment , or is innovative. List and describe four competitive strategies enabled by information systems that firms can pursue. To align IT: •Identify business goals and strategies. Describe how information systems can support each of these competitive strategies and give examples. Enabling Organizational Strategy through Information Systems Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Low-cost leadership: Continue on back of page if you need more space In a cost leadership strategy, the objective is to become the lowest-cost producer. The principal competitive thrusts for seeking competitive advantage with strategic systems are: 1. Maeve Cummings, Co-author of Management Information Systems for the Information Age and Professor of Accounting & Computer Information Systems at Pittsburg State University in Pittsburg, Kansas, explains how MIS functions in academia.“[Management information systems is] the study of computers and computing in a business environment. When the systems are largely outsourced, this unit is of a limited size and concentrates on aligning the systems with the corporate competitive strategy and on supervising the outside company’s services. For example, an organization may use customer relationship management systems to gain a better understanding of its target audience, acquire new customers … Relatively few strategic information systems enable their owner firms to gain lasting competitive advantage over their rivals. A case study for Information Systems at Zara. Management Information Systems enable executives to run what-if scenarios so that they can see how some of the important metrics in the business will be affected by a given decision. Give examples. A strategic information system is an information system that is designed specifically to implement an organizational strategy meant to provide a competitive advantage. According to Michael Porter, competitive strategy is devised into 4 types: 1. This is achieved through large-scale production where companies can exploit economies of scale. Dell’s assemble-to-order system is a major source of competitive advantage. The data is presented in easy to understand reports and graphs that make interpretation easy. Explain why aligning IT with business objectives is essential for strategic use of systems. Web site, customers can select the options they want and order their computer custom built to these specifications. Zara’s success is based on a business system that depends on vertical integration, in-house production, quick response, one centralized distribution centre and low advertising cost. • Describe how information systems can support each of these competitive strategies and give examples. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. Information systems typically include a combination of software, hardware and telecommunication networks. Information systems hardware is the part of an information system you can touch – the physical components of the technology. Michael Porter (Harvard Business School Management Researcher) designed various vital frameworks for developing an organization’s strategy. At Dell’s e-commerce site, customers select the options they desire and order computers custom built to their specifications in a short amount of time. Porters competitive forces model has four generic strategies each of which is enabled by using information technology and systems low cost leadership, product differentiation, focus on market niche, and strengthening customers and supplier intimacy. In book: Information Systems Theory (pp.265-281) Authors: Sanjay Mohapatra. Answer preview to list and describe 4 competitive strategies enabled by information systems that an organization can pursue. September 2011; DOI: 10.1007/978-1-4419-6108-2_14. Get instant access to the full solution from yourhomeworksolutions by clicking the purchase button below Valuing Innovations Five Competitive Strategies. 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