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