Chapter 2(3)

Chapter 2(3) - Strategic Uses of Information Systems...

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1 1 Strategic Uses of Information Systems Chapter 2 2 Learning Objectives Explain the meanings of business strategy and strategic moves Illustrate how information systems can give businesses a competitive advantage Identify basic initiatives for gaining a competitive advantage Explain what makes an information system a strategic information system (SIS) Identify fundamental requirements for developing SISs Explain circumstances and initiatives that make one SIS succeed and another fail
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2 3 Strategy and Strategic Moves Strategy A plan designed to help an organization outperform its competitors (sustainable competitive advantage) Strategic Information Systems (SIS) Support Strategy Help seize opportunities Maximize strength Can be new or adapted from existing IS 4 Eight Basic Types of Strategic Initiatives
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3 5 Strategic Initiatives Working Together 6 Automation may lower costs The Web may help lower costs Lower costs may enable lower prices Lower price may increase market share Initiative #1: Reduce Costs
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4 7 Patents and Copyrights High expense of entering industry Capital Investment IS Investment Initiative #2: Raise Barriers to Market Entry 8 Explicit (Fixed and nonrecurring) Termination penalties Implicit (Indirect) Costs of adjusting to a new product Time Money Initiative #3: Establish High Switching Costs
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5 9 Sustainable? Lasts only until competition offers an identical or similar product or service for a comparable or lower price First Mover: Creates assets Brand Name Better Technology Delivery Methods Critical Mass: Body of clients that attracts other clients Initiative #4: Create New Products or Services 10 Product differentiation Superior Service Brand recognition - Advertising Levi’s jeans Chanel perfumes Gap clothes Initiative #5: Differentiate Products or Services
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This note was uploaded on 04/11/2011 for the course WCOB 2023 taught by Professor Billthompson during the Spring '07 term at Arkansas.

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Chapter 2(3) - Strategic Uses of Information Systems...

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