unit iii - role of mis

8/7/2019 Unit III - Role of MIS

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Role of MISRole of MIS


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Objectives

IdentifyIdentify basic basic competitivecompetitive strategiesstrategies andand

explainexplain howhow ITIT maymay be be usedused toto gaingaincompetitivecompetitive advantageadvantage. .

IdentifyIdentify strategicstrategic usesuses of of informationinformationtechnologytechnology. .


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IdentifyIdentify thethe business business valuevalue of of usingusingtechnologiestechnologies for for totaltotal qualityquality management,management, toto

become become anan agileagile competitor,competitor, or or toto formform aavirtualvirtual companycompany. .

ExplainExplain howhow knowledgeknowledge managementmanagementsystemssystems (KMS)(KMS) cancan helphelp aa business business gaingainstrategicstrategic advantageadvantage. .


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Fundam ental s of Str a tegicFundam ental s of Str a tegicAdvan tageAdvan tage

The best way to use an Information

System is to support the organizationstrategy in a way that enables the firm togive or sustain competitive advantage over

rivals.


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C omp etitive A dvan tageC omp etitive A dvan tage

C ompetitive advantage occurs when a productsvalue chain generates superior product features,quality, service, availability, lower cost, or other things, customers care about.

Some companies have a natural competitiveadvantage while others must create it throughsuperior product design, marketing, customer service, or distribution channels.


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P orters 5 F orces Mo delP orters 5 F orces Mo del


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C omp etitive Str a tegies &

the Ro le of ITC ostC ost Le ad ershi pLe ad ershi p (l ow(low costcost p ro du cer)p ro du cer) ExEx..W alW al--M a rtM a rt

R educeR educe inventoryinventory ((JIT))R educeR educe manpower manpower costscosts per per salesaleHelpHelp supplierssuppliers or or customerscustomers reducereduce costscosts

IncreaseIncrease costscosts of of competitorscompetitorsR educeR educe manufacturingmanufacturing costscosts (process(processcontrol)control)


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D iffere n ti a tio n

P orsche, Nordstrom, IBMP orsche, Nordstrom, IBMC reateC reate aa positive positive differencedifference between between your your

products/services products/services && thethe competitioncompetition. .

MayMay allowallow youyou toto reducereduce aa competitorscompetitorsdifferentiationdifferentiation advantageadvantage. .


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Inn ov a tio nInn ov a tio n

D ellD ell New ways of doing business New ways of doing business

Unique products or servicesUnique products or services New ways to better serve customers New ways to better serve customersR educe time to marketR educe time to market

New distribution models New distribution models


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G rowthG rowth

ExpandExpand production production capacitycapacityExpandExpand intointo globalglobal marketsmarketsDiversifyDiversify

IntegrateIntegrate intointo relatedrelated products products andand servicesservices


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A lliance

Broaden your base of support New linkages

Mergers, acquisitions, joint ventures,

virtual companiesMarketing, manufacturing, or distributionagreements.


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OtherOther C omp etitiveC omp etitive Str a tegiesStr a tegies

L ockingL ocking inin customerscustomers or or supplierssuppliersC reatingC reating switchingswitching costscostsR aisingR aising barriers barriers toto entryentryL everagingL everaging investmentinvestment inin ITIT


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The V alu e C ha in

V iewsV iews aa firmfirm asas aa series,series, chain,chain, or or network network of of activitiesactivities thatthat addadd valuevalue toto itsits products products andand

servicesservices..TheThe valuevalue chainchain modelmodel highlightshighlights specificspecificactivitiesactivities thatthat addadd aa marginmargin of of valuevalue toto aa firmsfirms

products products or or servicesservices wherewhere informationinformation systemssystemscancan best best be be appliedapplied toto achieveachieve aa competitivecompetitiveadvantageadvantage ..


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TheThe valuevalue chainchain dividesdivides aa companyscompanysactivitiesactivities intointo valuevalue activities,activities, thethe distinctdistinctactivitiesactivities itit mustmust perform perform toto dodo business business..

V alueV alue activitiesactivities consistsconsists of of primary primary activitiesactivitiesandand supportsupport activitiesactivities..


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Valu e C ha in Mo del


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U sing IT for

Str a tegic A dvan tage


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Str a tegic U ses Of IT

M a jor co mp etitive d iffere n tia torM a jor co mp etitive d iffere n ti a torD eve lop a foc u s o n the c u sto m erD eve lop a foc u s o n the c u sto m er

C ustomer valueC ustomer valueBest valueBest valueUnderstand customer preferencesUnderstand customer preferencesTrack market trendsTrack market trendsSupply products, services, & informationSupply products, services, & informationanytime, anywhereanytime, anywhere

Tailored customer serviceTailored customer service


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Imp rove b usiness q ual ity

TotalTotal QualityQuality ManagementManagement (TQM)(TQM)QualityQuality fromfrom customerscustomers perspective perspectiveMeetingMeeting or or exceedingexceeding customer customer expectationsexpectationsC ommitmentC ommitment toto::Higher Higher qualityqualityQuicker Quicker responseresponseG reater G reater flexibilityflexibilityL ower L ower costcost


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B eco m ing agi le

F our basic strategiesC

ustomers perception of product/service assolution to individual problemC ooperate with customers, suppliers, other companies (including competitors)Thrive on change and uncertaintyL everage impact of people and peoplesknowledge


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The virt ual compan y

Uses IT to link people, assets, andideasF orms virtual workgroups andalliances with business partnersInter-organizational informationsystems


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Str a tegiesStr a tegiesShareShare infrastructureinfrastructure && risk risk withwith alliancealliance

partners partnersL ink L ink complementarycomplementary corecore competenciescompetenciesR educeR educe conceptconcept--toto--cashcash timetime throughthroughsharingsharing


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K now ledge C ompan y


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Knowledge management systems

Help create, organize, and share business knowledge wherever andwhenever needed within the

organization

unit iii - role of mis

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