MIS(day 2)
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Transcript of MIS(day 2)
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8/2/2019 MIS(day 2)
1/19
Strategic Uses of Information System
Learning Objectives:
Discuss the different business strategy and
strategic moves.
Discuss the advantages of Information System to
business.
Enumerate the diff. ways to achieve a competitive
advantage.
Discuss bleeding edge.
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Strategy and Strategic Moves
Strategy
Is a plan to gain an advantage over the enemy.
In business, a strategy is a plan designed to
help an organization surpass its competitors.
As anyone in business can tell you, it is easier
to identify a problem than to create an
opportunity.
(imagination, creativity, vision)
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* Strategic planning
- Developing new product, identifying
unmet consumer need, changing a service
to attract or retain existing clients.
- A company achieves strategic advantage
by using strategy to maximize its
strengths, resulting in a competitive
advantage.
* A strategic move is not always acompetitive move.
*Web
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Achieving a competitive advantage
1. Reduce Costs One way to increase market is to lower prices.
* Automation of any business process
* Customer service
*Web (FAQs)
Online service gives business 2 major benefits:
- Changes service from being labor intensive to
technologyintensive.
- Customers easy access to a service 24/7.
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2. Raise Barriers to market entrantsAn organization might gain advantage by making
it difficult or impossible for other
organizations to produce the product or service
it provides.
* Legal protection (intellectual property)
* Copyright (Microsoft)
* High expense of entering the market.
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3. Establishing High Switching CostsSwitching cost are expenses gain when a customer
stops buying a product or service from one
business and starts buying it from another.
* Explicit switching cost (deal)
* Implicit switching ( cost in time and moneyspent in adjusting to a new product)
* Printer
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4. Create new products or services
Creating a new and unique product or services
that many organizations and individuals need
gives a great competitive advantage.
* Lotus corporation (lotus 1-2-3 Electronic
spreadsheet)
* Ebay (First mover)
- acquired a large no. sellers and bidders
- experience
- superior brand name
- critical mass
Netscape (IE)
* Infoseek (Google)
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5. Differentiate products or services
Persuade consumers that its product or service
is better than competitors (product
differentiation).
*
Brand name success*IBMs
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6. Enhance Products or Services
Enhancing existing products or services.
*Web
* Add and enhance their online services.
7. Establish Alliances
Companies can gain competitive advantage by
combining services to make them more attractive
than purchasing services separately.
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This alliance gives customers benefits:
1. Combined services is cheaper.
2. One stop shop.
- Strategic alliances combine services to create
synergies.
*travel industry
* Alliance between FedEx and HP
*Web links (Affiliate program)
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8. Lock in suppliers or buyers
Organizations can achieve competitive advantage
if they are powerful enough to lock in either
suppliers to their mode of operations or buyers
to their product.
* Leverage to influence buyers and suppliers
* Few competitors or the firm is a major
competitor in its industry (Suppliers).
* Create an impression that an org. product is
better than their competitors or customer fear
high switching cost (buyers).
Ex.
Enterprise applications.
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Another way to lock in clients is to create a
standard.
Ex.
Microsoft web browser
Adobes PDF
Macromedia Inc. (Flash)
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Creating and Maintaining Strategic IS
Strategic IS
- Is any information system that can help an
organization achieve a long term competitive
advantage.
Can be created:- From scratch
- modifying existing system
Strategic IS combine 2 types of ideas:
1. Ideas for making potentially winning business
decision
2. Ideas for harnessing IT to implement the
decisions.
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For an IS to be an SIS 2 conditions must be
met:
1. IS must serve an org. goal rather than simply
provide information.
2. The org. IS unit must work with managers of other
functional units to pursue the organizations goal.
The Bleeding Edge
- When failure occurs because an organization tries to
be on the technological leading edge, it is referred
to as the bleeding edge.
Adopting new technologies involves great risk:- There is no experience from which to learn
- No guarantees that the technology will work well.
- No certainty that customers and employees will
welcome it.
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End of the Topic!