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Unformatted text preview: BUS 237 1 Lecture 7: Information Systems for Competitive Advantage BUS 237 Information Systems in Business BUS 237 Agenda • Questions? • Midterm Discussion • Types of Information Systems • functional systems • cross-functional systems • interorganizational systems BUS 237 2 Midterm Exam Results BUS 237 3 Midterm Exam • If you have done well Great! Avoid coasting and aim for a repeat. • If you are not satisfied with your performance There is still lots of room to improve and while the final is cumulative the second half is more cognitive. BUS 237 4 This Could Happen to You • DSI’s competitive strategy is quality differentiation within the Boeing 737 high-end refurbishing market • Key goal for DSI’s competitive advantage is labour productivity and IS contributes to that key goal • You are summer intern at DSI • One intern will be offered a full-time job • Your work is very good and you are a very hard worker • One of the other interns is a relative of one of the owners • How do you gain a competitive advantage? BUS 237 5 Learning Objectives BUS 237 6 Q1. What are the fundamental types of IS within organizations? Q2. What are functional systems and why are they changing? Q3. What is the importance of industry standard business processes? Q4. What are CRM systems? Q5. What are ERP systems? Q6. What are e-commerce and Web 2.0? Q7. What are SCM systems? BUS 237 2 Q1. What are the fundamental types of IS within organizations? • Recall from Chapter 3, there are two basic ways to develop competitive advantage through systems: • Changing the Product : By introducing new products or services or enhancing current products or services • Business Processes : Organizations use technology to help lock in customers, reduce costs, and create entry barriers for competitors in the market How do organizations gain competitive advantage using information systems? • Businesses determine competitive strategies • Create business processes to achieve strategies • Information systems are developed to support business processes • help organizations achieve competitive advantage • need to avoid creating systems that are unrelated to organization’s strategy BUS 237 8 How information systems can affect competitive advantage? • By making the primary and support activities in an organization more productive than those of competitors • Increased productivity is realized when business processes within the organization become more effective and more efficient • True for commercial companies as well as for non- profit organizations and government Three Categories of IS over time BUS 237 10 Calculation Systems • Antiquated systems • Relieved workers of repetitive calculations • Labor-saving devices • Produced little information • Examples: systems that computed payroll and wrote paychecks; inventory tracking BUS 237 11 Functional Systems • Facilitated the work of single department or function • Functions added to calculation system programs to...
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- Spring '12
- Supply Chain Management, Customer relationship management, Functional Systems