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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

• Email

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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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