AACS3034 MIS_Chap 4_Strategic Uses of IT IS

AACS3034 MIS_Chap 4_Strategic Uses of IT IS - AACS3034...

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AACS3034 Managing Information Systems CHAPTER 4 Page 1 of 5 CHAPTER 4 Strategic Uses of IT / IS Learning Outcomes After learning this chapter, student will be able to: Demonstrate how Porter’s competitive forces model helps companies develop competitive strategies using information systems. Explain how the value chain models help businesses identify opportunities for strategic information system applications. Using Information Systems to Achieve Competitive Advantage Google, Amazon, e-Bay–the giants of the Internet are successful and make loads of money but they keep working so hard to continually introduce new products and services and improve the old ones because someone, somewhere, is trying to take their place and become the new giant. These companies must constantly work to keep their competitive advantage and they are using information systems to do so. Porter’s Competitive Forces Model Porter’s competitive forces model contends that much of the success or failure of a business depends on its ability to respond to its external environment. Figure 4-10 shows four external forces that every business must contend with at one time or another. Figure 4-1: Porter’s Competitive Forces Model.
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