Competitive Advantage is when an organization tries a strategy that no one has tried before. Strategic information systems are information systems that use information technology to help an organization gain a Competitive Advantage or reduce a competitive disadvantage. Competitive intelligence: IT provides competitive intelligence by collecting and analyzing information about products, markets, competitors, and environmental changes.
Competitive Advantage is when an organization tries a strategy that no one has tried before. Strategic information systems are information systems that use information technology to help an organization gain a Competitive Advantage or reduce a competitive disadvantage. Competitive intelligence: IT provides competitive intelligence by collecting and analyzing information about products, markets, competitors, and environmental changes.
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Competitive Advantage is when an organization tries a strategy that no one has tried before. Strategic information systems are information systems that use information technology to help an organization gain a Competitive Advantage or reduce a competitive disadvantage. Competitive intelligence: IT provides competitive intelligence by collecting and analyzing information about products, markets, competitors, and environmental changes.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
advantage Competitive advantage • Competitive advantage occurs when an organization tries a strategy that no one has tried before.
• Eg. Dell was the first PC manufacturer to
use the Web to take customer orders. Competitive Advantage Improving Core Competency – Employee productivity – Operational efficiency
Information and competency
Information provides support in a way that enables the firm to gain or sustain competitive advantage over rivals I.T for Competitive Advantage Innovative applications: Create innovative applications that provide direct strategic advantage to organizations. Changes in processes: IT supports changes in business processes that translate to strategic advantage Links with business partners: IT links a company with its business partners effectively and efficiently. Cont……………………………. Cost reductions: IT enables companies to reduce costs through new methods Relationships with suppliers and customers: IT can be used to lock in suppliers and customers, or to build in switching costs. Cont…………………………………. Competitive intelligence: IT provides competitive (business) intelligence by collecting and analyzing information about products, markets, competitors, and environmental changes . Strategic Information System Any information system--EIS, TPS, KMS-- that changes the goals, processes, products, or environmental relationships to help an organization to gain a competitive advantage or reduce a competitive disadvantage. – Information systems that help seize opportunities Strategic Information Systems Definition: • Any kind of information system that uses information technology to help an organization gain a competitive advantage, reduce a competitive disadvantage, or meet other strategic enterprise objectives. – An IS that helps achieve long-term competitive advantage Porter’s Competitive Forces Model Competitive Forces and Strategies Porter’s Competitive Forces Model To survive and succeed, a business must develop and implement strategies to effectively counter the: • Rivalry of competitors within its industry • Threat of new entrants into an industry and its markets • Threat posed by substitute products which might capture market share • Bargaining power of customers • Bargaining power of suppliers Competitive Strategies • Cost Leadership • Differentiation • Innovation • Growth • Alliance Cost Leadership Strategy • Becoming a low-cost producer of products and services
• Finding ways to help suppliers and customers reduce
their costs
• Increase costs of competitors
Differentiation Strategy • Developing ways to differentiate a firm’s products and services from its competitors’
• Reduce the differentiation
advantages of competitors Innovation Strategy • Development of unique products and services • Entry into unique markets or market niches • Making radical changes to the business processes for producing or distributing products and services that are so different from the way a business has been conducted that they alter the fundamental structure of an industry Growth Strategy • Significantly expanding a company’s capacity to produce goods and services
• Expanding into global markets
• Diversifying into new products and
services • Integrating into related products and services Alliance Strategy
• Establishing new business linkages
and alliances with customers, suppliers, competitors, consultants, and other companies Competitive Strategy Examples IS in a Customer- Focused Business