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OrganizationalStrategy,CompetitiveAdvantage,and
InformationSystemsDr.RickJerz
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Goals
• Understand thestrategic planning process• Discuss methods forevaluating strategicinitiatives
• Identify competitive advantageframeworks• Discuss waysinwhich information systemsenable andimprove business processes
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Wheredoesallofthisbegin?
• Organizations “mission”• Then“strategy”
• Wheredo“information systems” fit?
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FocusStories:DeereandOthers
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Mission/Strategy/Tactics
Strategy TacticsMission Strategy TacticsMission
Mission is the reason for existence for an organization
Strategy tells the organization how to get there
Tactics are the methods and actions taken to accomplish strategies
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Mission/StrategyExample
Rita isahighschoolstudent.Shewouldliketohaveacareerinbusiness,haveagoodjob,andearnenoughincometolivecomfortably
• Mission: Liveagoodlife• Goal: Successfulcareer,goodincome• Strategy: Obtainacollegeeducation• Tactics: Selectacollegeandamajor• Operations: Register,buybooks,take
courses,study,graduate,getjob
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StrategicInformationSystems
• Today,organizations need awide varietyofinformation systemsforconducting their day-to-day business.
• Specifically, what will ourinformationstrategybein orderto giveacompetitiveadvantage?
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FrameworksforStrategicInformationSystems
Tools that canbeusedto identify strategicinformation systemsinitiatives
• Porter’sFiveCompetitive ForcesModel• Porter’sValue Chain
• Information SystemsSWOTAnalysis
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SWOTAnalysistoStrategyFormulation
Strategy
Mission
ExternalOpportunities
InternalStrengths
InternalWeaknesses
ExternalThreatsCompetitive
Advantage
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CompetitivenessDefinition
• How effectively anorganization meets thewants andneeds ofcustomers relativetoothers thatoffersimilar goods orservices
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CompetitiveProduct/ServiceOptions
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BusinessProcesses
• Abusiness process is:anongoingcollectionofrelatedactivitiesthatcreateaproductorserviceofvaluetotheorganization,itsbusinesspartners,and/oritscustomers.
• Comprised ofthree elements:• Inputs• Resources• Outputs
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UnderstandBusinessProcesses
• Nosinglefunctional areaisresponsible• Information systemsprovide thebondbetween functional areas
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BusinessProcesses(Operations)
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Example:PurchasingAirlineTicketsOnline
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AnotherBusinessProcess:TakingthisOnlineCourse
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InformationSystems&BusinessProcesses
• IS’svital roleinthreeareasofbusinessprocesses1. Executingtheprocess
• Helpingwithtiming• Providingrequireddata• Providingameanstocompletethetask
2. Capturingandstoringprocessdata3. Monitoringprocessperformance
• Informationformonitoring&control• Informationforperformanceimprovement
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InitialandOngoingProcesses
• Thechanging business environment
• Install good business processes• Reengineering (BPR)andImprovement (BPI)
• Degreeofimprovements• Customersatisfaction• Cost/time/quality• Product/servicedifferentiation
• Management (BPM)
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MarketPressures
• Globalization• TheWorldisFlat,byThomasFriedman
• Changing NatureoftheWorkforce• WorkforceisBecomingMoreDiversified
• Women• SingleParents• Minorities• PersonswithDisabilities
• IT isEnablingTelecommuting Employees• Powerful Customers
• Increasingconsumersophistication&expectations(google)
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Societal/Political/LegalPressures
• Social Responsibility• Environment
• Compliance with Government Regulations• Protection againstTerroristAttacks
• Cyberattacks• Ethical Issues
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SuccessfulBusiness-ITAlignments
• Clearunderstanding ofhow ITcontributes tobusiness processes
• Knowledgeable workersandmanagement• Ability toplan, coordinate, and implementinformation systems
• Employee training• Ability tomonitor theimprovements• “Continuous improvement”
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UnsuccessfulBusiness-ITAlignments
• Business managersandITmanagershavedifferent objectives
• Thebusiness andITdepartments areignorant ofthe othergroup’sexpertise
• Alackofcommunication• Lackofhiring qualified employees
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