ch02 - Chapter 2. Strategic Use of Information Resources...

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1 Chapter 2. Strategic Use of Information Resources Managing and Using Information Systems: A Strategic Approach
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2 Introduction: In 1994 Dell finally stopped selling PCs through retail stores It moved completely to using an integrated IT platform that allows customers to order a PC to their specifications Strategic use of IS produced Cost savings from reduced inventories that were then passed on to the consumer This innovation created a competitive advantage for Dell, which used its information resources to achieve high volumes without the high costs of the industry’s traditional distribution channels
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3 EVOLUTION OF INFORMATION RESOURCES
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4 Figure 2.1 Eras of Informational Usage in Organizations Primary Role of IT Efficiency Automate existing paper-based processes Effectiveness Solve problems and create opportunities Strategic Increase individual and group effectiveness Strategic Transform industry/organ ization Value creation Create collaborative partnerships Justify IT expenditure ROI Increasing productivity and decision making Competitive position Competitive position Adding Value Target of systems Organization Individual manager/ Group Business processes Business processes ecosystem Customer, supplier, ecosystem Information model Application specific Data-driven User-driven Business- driven Knowledge- driven Dominant technology Mainframe- based Minicomputer - based Microcomputer “decentralized intelligence” Client-Server “distribution intelligence” Internet “ubiquitous intelligence” 1960s 1970s 1980s 1990s 2000
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5 INFORMATION RESOURCES AS STRATEGIC TOOLS
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6 Using Information resources to create strategic advantage Strategic advantage must be crafted by combining all of the firm’s resources including: production resources, human resources, and Information resources Information resources include not only data, but also technology, people and processes.
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7 Examples of information resources available to a firm: IS infrastructure Information and knowledge Proprietary technology Technical skills of the IT staff End users of the IS Relationship between IT and business managers Business processes
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What advantages might an information resource create? A manager might consider the following to understand the type of advantage the information resource might create: What makes the information resource valuable? Who appropriates the value created by the information resource? Is the information resource equally distributed across firms? Is the information resource highly mobile?
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This note was uploaded on 07/31/2011 for the course ISM 4300 taught by Professor Staff during the Fall '08 term at University of South Florida - Tampa.

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ch02 - Chapter 2. Strategic Use of Information Resources...

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