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 Industry where firms compete 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: be producing products with low production costs differentiate products and
services change
the scope of the competition either by expanding the market to the global
market and to narrow the market.
Value chain model, a model which addresses the primary and support activities that add value to products and services in which the company is best applied information systems to gain a competitive advantage. primary activity is directly associated with the production and distribution of the company's products or services. While supporting activity is an activity that allows the execution of the primary activity. Consists of organizational infrastructure, human resources, technology, and procurement. Web refers to the value of customer-controlled network of the company 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.
Value chain model, a model which addresses the primary and support activities that add value to products and services in which the company is best applied information systems to gain a competitive advantage. primary activity is directly associated with the production and distribution of the company's products or services. While supporting activity is an activity that allows the execution of the primary activity. Consists of organizational infrastructure, human resources, technology, and procurement. Web refers to the value of customer-controlled network of the company 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 Markets Intensive
analysis using customer data to support new ways of contacting and serving
customers that allows to develop new niche markets for specific products or
services. For example, frequent guest program Wyndam Hotel Supply Chain Management and Efficient
Customer Response System The system
connects to the corporate value chain value chain of suppliers and consumers. System that directly connects back to the distributor
of consumer behavior, production, and supply chain. Example: Wal-Mart
purchasing directly connect customers to the suppliers almost immediately. suppliers work to ensure the product is delivered 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 system to system supplier or
competitor. For example, Baxter International.
Strategy-level corporate and Information Technology
Expand the 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 hence increase the company's competence. Industry-level strategy and Information Systems: competitive forces and economic networks. The company operates in the larger environment that consists of other companies, governments, and nations. Partnership information, 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. Porter's five forces model In larger environments, there are five major power or threat:
Expand the 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 hence increase the company's competence. Industry-level strategy and Information Systems: competitive forces and economic networks. The company operates in the larger environment that consists of other companies, governments, and nations. Partnership information, 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. Porter's five forces model In larger environments, there are five major power or threat:
New
market entrants Substitute products and
services Supplier Customer 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 compete. Internet technology has affected the structure of the
industry Provide the technology to 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. Lowering power supplier Substitute goods Business ecosystem IT plays a strong role in creating new forms
of ecosystem products business. Business ecosystem is a network of suppliers,
distributors, outsourcing firms, transportation companies, and manufacturing
technology are interrelated. For example, Microsoft: 1 billion PCs around the
world and hundreds of thousands of businesses rely on Microsoft platforms.
EBay: Millions of people and thousands of businesses using the company's
platform. Wal-Mart: Enterprise systems used by suppliers to increase efficiency
.
Network Economics
products
and services exhibit strong network effects and potentially creating a
situation of "winner take all". Network causing costs to add other
participants or fewer zero, otherwise the benefits could be even greater.
Contrary to the law of profit decline in industrial and agricultural products.
For example, the value of the Internet is growing exponentially with a linear
increase in users. Because software can be certain standards (such as the
Windows operating system or the Windows Office), people could be locked into
the Windows standard and value grows as more and more people are using it.
Good
strategy, using IT to build products and services that cause network effects.
Management opportunities, the Company faces the development of IT-based
opportunities to gain strategic advantage.
Management Challenges
Management Challenges
Some
companies are facing major obstacles in implementing contemporary systems.
Once profit is reached, there is difficulty in maintaining excellence.
Organizations often can not be changed to accommodate new technologies quickly enough
Once profit is reached, 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 Understanding the structure and
dynamics of industry competition in which the company operates. Understanding
the business value chain, enterprise, and industrial Consider how companies can manage
"strategic shift" in an effort to implement a system that provides a
competitive edge
.
My Opinion
in
my opinion this article helps us in
business and taught a wide variety of
set or in the
sense manajamen itself can be run for the continuation of a business or applied within the
company so that we can continue to progress
and develop in a business or businesses in the
middle struggled not
nothing wrong when in reality the practitioner in
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