Strategic Information Systems will be in focus again next 5 yrs

So many business are wiped out due to Strategic Information System (SIS). SIS will be important again.

SIS is effective only when it valuable and imperfectly imitable. Sources of imperfect imitability:

1. Unique Solution

2. Patentable technology

3. Organizational Culture

4. Teamwork

5. Internal Politics

If SIS is non-imitable then competitor cannot replicate and hence cannot benefit from it.

Operational management SIS example:

American Hospital Supply inventory control system installed on customer premises

Financial management SIS example

Organizational planning must be tied to financial analysis. There is always a greater opportunity to develop strategic systems when the financial systems are in place, and required figures can be readily retrieved from them.

How SIS help in strategic competitive advantage:

  1. Lower cost with respect to Quality of product, services that will make product attractive or yield better Return on Investment ROI.
  2. Differentiations:  Deliver product or service that differentiate company. There is emotional intelligence people can feel company is doing something extra for them.
  3. Market Segment: able to provide the capabilities of defining, expanding, and filling a particular niche or segment.
  4. Innovation: greatest example is Disruptive intelligence by intel.

Cost ,differentiation are mutually exclusive.

Basic competitive forces:

  • the threat of new entrants
  • the threat of substitute products or services
  • the bargaining power of suppliers
  • the bargaining power of buyers and the intensity of the rivalry among existing competitors

The problem is to determine how a business can outperform the industry average and attain a sustainable competitive advantage .answer lies in information technology together with good management.

7 Comments

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