PAPER ARTICLES ECONOMIC
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Strategic information systems, computer systems that are used to change the target level of the organization, operations, products, services, or environmental relationships to help organizations achieve competitive advantage.
Decision of the company’s business strategy depends on:
• Products and services company
• The industry in which the company competes
• Competitors, suppliers, and customers of the company
• Long-term goals of the company
Business level strategy: Value Chain Model
The most common strategy for this level is:
1. be producing products with low production costs
2. differentiate products and services
3. change the scope of the competition either by expanding the market to the global market and to narrow the market.
Value chain model, the model pays attention to the activity of the primary and support that add value to the products and services of companies in which the information system is best used to gain competitive advantage. Activities primer directly related to the production and distribution of the company’s products or services. While support activities are activities that enable the implementation of activities primer. Consists of organizational infrastructure, human resources, technology, and procurement. Top web refers to the network of customer-controlled in companies that use information technology to coordinate its value chain in order to collectively produce products or services to market.
Products and Services Information System
Systems that create product differentiation:
• Companies can use IT to develop different products.
• Creating brand loyalty by developing new and unique products and services
• Products and services not easily duplicated by competitors. For example, Dell Corporation.
System that supports Niche Market Analysis intensive use customer data to support new ways of contacting and serving customers that allows to develop a new niche market for your product or service special. For example, the program frequent guest Hotel WyndamSupply Chain Management and Response System Customers Efficient System that connects the enterprise value chain to value chain of suppliers and consumers. System that directly connects back consumer behavior to distributors, production, and supply chain. Example: Wal-Mart connects directly buying customers to suppliers almost immediately. work suppliers is to ensure the product is shipped to the store to replace the product purchased. IT at the organizational level is used to avoid the shift of consumers to other suppliers and bind them to the company. Replacement cost is the cost incurred by the customer or the company for the time and resources are wasted when switching from one supplier or to the supply system or systems competitors. For example, Baxter International.
Strategy-level corporate and Information Technology Expand its core competencies, the activities in which the firm excels as a world-class leader. Information systems encourage the sharing of knowledge across business units and therefore the company increased competence. Industry-level strategy and Information Systems: competitive forces and economic networks. The company operates in the larger consisting of other companies, governments, and nations. Partnershipinformation, cooperative alliances undertaken by two or more companies that aim to share information to gain strategic advantage. Help companies gain access to new customers, create new opportunities for cross-selling and targeting products.
Model of five forces Porter
In larger environments, there are five major power or threat:
1. New market entrants
2. Substitute products and services
5. Other companies that compete directly
Competitive forces model, the model used directly to explain the interaction of external influences, specifically threats and opportunities, and strategies that affect the organization’s ability to competed. Internet technology has affected the structure of the industry with
• Providing technology that make it easier for competitors to compete in terms of price and new players in the market.
• improving the information available to customers grows in price thus increasing the bargaining power.
• Lower power supplier
• Goods substitus
• Some companies are facing major obstacles in implementing contemporary systems.
• After the gains achieved, there is difficulty in maintaining excellence.
• Organizations often can not be changed to accommodate new technologies quickly enough
Guidelines for Completion of strategic systems analysis
• Understand the structure and dynamics of industry competition in which it operates.
• Understand the business value chain, enterprise, and industrial
• Consider how companies can manage the “transition strategic” in an effort to implement a system that provides a competitive advantage
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Sumber : INFORMATION SYSTEMS AND BUSINESS STRATEGY