Strategic
information systems, computer systems that are used to change the target level
of the organization, operations, products, services, or environmental
relationships to help organizations achieve competitive advantage.
The decision of the
company's business strategy depends on:
§ The products and services
company dhasilkan
§ Industry in which the
company competes
§ Competitors, suppliers,
and customers of the company
§ The long term goal of the
company
Business-level Strategy: Value Chain Model The most common strategy for
this level is:
1.
be producing products with low production costs
2.
differentiate products and services
3.
change the scope of the competition either by means of expanding its market to
the global market and to narrow the market.
Value chain model, a model which addresses the primary and support activities
that add value to the products and services of the company in which the
information system is best used to gain competitive advantage.
Yaituaktivitas primary activity is directly associated with the production and
distribution of the company's products or services. While supporters of
the activity is an activity that allows the execution of the primary activity. Consists
of organizational infrastructure, human resources, technology, and
procurement.
Value refers to web customer-controlled network on companies that use information
technology to coordinate its value chain in order to collectively produce products
or services to market.
Products and Services Information System
System that creates product differentiation:
§ Companies can use IT to
develop different products.
§ Creating brand loyalty by
developing new and unique products and services
§ Products and services not
easily duplicated by competitors. For example, Dell Corporation.
The system supports Niche Markets Intensive analysis using customer data
to support new ways of serving customers to contact and allow to develop new
niche markets for specific products or services. For example, frequent
guest program Wyndam Hotel Supply Chain Management and Efficient Customer
Response System The system connects to the corporate value chain value
chain of suppliers and consumers. System that directly connects back to
the distributor of consumer behavior, production, and supply
chain. Example: Wal-Mart customers to connect directly to the supplier
purchase almost immediately. suppliers work to ensure the product is
delivered to the store to replace the purchased product.
IT at the organizational level is used to avoid the shift of consumers to other
suppliers and bind them to the company. Replacement cost is the cost
incurred by the customer or the company for the time and resources are wasted
when switching from one supplier or system to system supplier or
competitor. For example, Baxter International.
Strategy-level corporate and Information Technology Expand the core
competencies, the activities in which the company excels as a world-class
leader. Information systems to encourage the sharing of knowledge across
business units and hence improve the competence of the company.
Industry-level strategy and Information Systems: competitive forces and
economic networks. The company operates in the larger environment
consisting of other companies, governments, and nations. Partnership
information, cooperative alliances undertaken by two or more companies that aim
to share information to gain a strategic advantage. Helping companies gain
access to new customers, create new opportunities for cross-selling and
targeting products.
Porter's five forces model
In larger environments,
there are five main force or threats:
1.
New market entrants
2.
Substitute products and services
3.
Supplier
4.
Customer
5.
Other companies that compete directly
Competitive forces model, a model which is used directly to explain the
interaction of external influences, specifically threats and opportunities, and
strategies that affect the organization's ability to compete. Internet
technology has affected the structure of the industry
§ Providing technology that
make it easier for competitors to compete in terms of price and new players in
the market.
§ Boost the information
available to customers grows in price thereby increasing the bargaining power.
§ Lowering power supplier
§ Substitutes
Business Ecosystem
IT plays a strong role in creating new forms of business product
ecosystem. Business ecosystem is a network of suppliers, distributors,
outsourcing firms, transportation companies, and manufacturing technology are
interrelated.For example, Microsoft: 1 billion PCs around the world and
hundreds of thousands of businesses rely on the Microsoft platform. EBay:
Millions of people and thousands of businesses using the company's
platform. Wal-Mart: Enterprise systems used by suppliers to increase
efficiency
Network Economics
IT products and services
showed strong network effects and potentially create a situation of
"winner take all".Network causes the cost to add other participants
of zero or less, otherwise the benefits could be even greater.Contrary to the
law of profit decline in industrial and agricultural products. For
example, the value of the Internet is growing exponentially with a linear increase
in users. Because software can be certain standards (such as the Windows
operating system or the Windows Office), can be locked into the standard and
value of Windows is growing as more and more people are using it.
Good strategy, using IT
to build products and services that cause network effects. Opportunity
management, dealing with the development of IT-based companies the opportunity
to gain a strategic advantage.
Management Challenges `
§ Some companies are facing
major obstacles in implementing contemporary systems.
§ Once profit is achieved,
there is difficulty in maintaining excellence.
§ Organizations often can
not be changed to accommodate the new technology fast enough
Guidelines for Completion
of a strategic systems analysis
§ Understanding the
structure and dynamics of industry competition in which it operates.
§ Understanding the
business value chain, enterprise, and industrial
§ Consider how companies
can manage "strategic shift" in an effort to implement a system that
provides a competitive edge
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