Strategic Information Systems

Accounts and Finance

By
Shashi Ranjan Kumar (5043)
Sourabh Srivastava (5116)
M. Vigneshwaran (5106)
 TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR
MANAGERS

MANAGEMENT LEVEL MIDDLE

MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &

DATA WORKERS

OPERATIONAL OPERATIONAL
LEVEL MANAGERS

SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN

MARKETING RESOURCES
Strategic Advantage and IT
• Strategic Information System (SIS)
• Elements of strategic management

3-4
Elements of Strategic Management
• Innovation
• Role of IT
• Competitive intelligence

3-5
Competitive Intelligence
• Internet
• Competitive strategy and
sustainable advantage
Porter’s Competitive Forces Model
• Threat of new competitors
• Bargaining power of suppliers
• Bargaining power of customers
• Threat of substitute products or
services
• Rivalry among existing firms
Porter’s Competitive Forces Strategies

• Cost leadership
• Differentiation
• Focus
• Strategic positioning
• Customer service
Use of Porter’s Model
• List players
• Analyze business drivers
• Devise a strategy
• Investigate supportive information
technologies
Porter’s Value Chain Analysis Model
• Primary activities
• Support activities
Porter’s Value Chain Analysis Model - Primary Activities

• Inbound logistics
• Operations
• Outbound logistics
• Marketing / sales
• Service

3-11
Porter’s Value Chain Analysis Model - Support Activities

• Firm infrastructure
• Human resource management
• Technology department
• Procurement
Strategic Information Systems Frameworks

• Porter and Millar’s framework

• Wiseman and MacMillan framework
• Bakos and Treacy framework
• Customer resource life cycle framework
Porter and Millar Framework
• Industry structure has changed
• Rules of competition have changed
• Organizations have outperformed
competition using IT
 Porter and Millar
Five-Step Process

• Access information intensity

• Determine the role of IT in the industry
structure
• Identify and rank the ways in which IT can
create competitive advantage
• Investigate how IT might spawn new businesses
• Develop a plan for taking advantage of IT
Wiseman and MacMillan Framework
• Based on Porter’s strategies
• Innovation
• Growth
• Alliance
• Time
Strategic Information Systems Applications

• Cost leadership
• Differentiation
• Growth
• Alliances
• Innovation
• Improve internal efficiency
• Customer-oriented approaches
Sustaining A Strategic Advantage
• Inward systems: efficient,
effective
• Comprehensive, innovative and
expensive system: difficult to
duplicate
Managerial Issues
• Implementing strategic information
systems can be risky
• Strategic information systems require
planning
• Sustaining competitive advantage is
challenging
• Ethical issues
 MAJOR TYPES OF SYSTEMS

• EXECUTIVE SUPPORT SYSTEMS (ESS)

• MANAGEMENT INFORMATION SYSTEMS (MIS)
• DECISION SUPPORT SYSTEMS (DSS)
• KNOWLEDGE WORK SYSTEMS (KWS)
• OFFICE AUTOMATION SYSTEMS (OAS)
• TRANSACTION PROCESSING SYSTEMS (TPS)
*
TYPICAL TPS APPLICATIONS
Finance & Accounting Systems

MAJOR FUNCTIONS OF SYSTEMS:

• Budgeting; Accounting; Billing; Cost
Accounting

MAJOR APPLICATION SYSTEMS:

• General Ledger; Accounts
Receivable / Payable; Budgeting;
Funds Management Systems
 FINANCE & ACCOUNTING INFORMATION SYSTEM

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC

EXAMPLES OF BUSINESS PROCESSES

• FINANCE & ACCOUNTING:

Paying creditors, creating financial
statements, managing cash accounts