strategic information systems ( final )
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Presented By :
Verma Mukesh
Kashif Reheman
Saim AnsariPrashant Mall Vishen
Ritu Mishra
Rashmi Srivastava
Sumit Jaiswal
Presented to:
Ms. Sakshi Gupta.
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When you finish this chapter, we will:
Understand business strategy and strategicmoves.
Recognize how information systems can give
business a competitive advantage.
Understand basic initiatives for gaining a
competitive advantage. 2
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Know what makes an information system astrategic information system.
Understand the fundamental requirements fordeveloping strategic information systems.
Recognize circumstances and initiatives that
make one SIS succeed and another fail.
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Strategy A plan designed to help an organization
outperform its competitors. Strategic Information Systems
Information systems that help seizeopportunities.
Can be developed from scratch, or theycan evolve from existing Informationstrategic system.
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Initiative #1: Reduce Costs
Lower Costs
Lower Price
Bigger Market Share
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Initiative #2: Raise Barriers to
Entrants Patenting
High expense of entering industry
State Street, Inc. (Pension fundmanagement business)
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Initiative #3: Establish High Switching Costs
Explicit Switching Costs
Fixed and nonrecurring
Implicit Switching Costs
Indirect costs in time and money of adjusting to a
new product
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Initiative #4: Create New Products and
Services Dynamic
The advantage lasts only until other organizations inthe industry start offering an identical or similar
product or service for a comparable or lower price.
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Initiative #5: Differentiate Products and
Services Product differentiation
Brand recognition
Examples of brand name success Levis jeans
Chanel perfumes
Calvin Klein clothing
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Initiative #6: Enhance Products and Services
Examples
Auto manufacturers enticing customers with a longerwarranty
Real estate agents providing useful financinginformation to potential buyers
Charles Schwab moving stock trading services on-line before Merrill Lynch
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Initiative #7: Establish Alliances Combined service may attract customers
Lower cost
Convenience
Examples
Travel industry
HP and FedEx
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Strategic alliances combine services to create synergies
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Profits increase significantly throughincreased market share.
The essence of strategy is innovation,so competitive advantage oftenoccurs when an organization tries astrategy that no one has tried before.
Dell was the first PC manufacturer touse the Web to take customer orders.
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Creating an SIS
Top management must be involved
from initial consideration throughdevelopment and implementation.
SIS must be a part of the overallorganizational strategic plan.
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Re-engineering and OrganizationalChange
To implement an SIS and achieve acompetitive advantage, organizationmust rethink the entire way in which itoperates.
Goal of re-engineering is to achieveefficiency leaps of 100 percent oreven higher.
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Competitive Advantage as MovingTarget
SISs developed as strategic advantagesquickly become standard business. Banking industry (ATMs and banking by phone)
Companies must continuously contemplate
new ways of utilizing information technologyto their advantage. SABRE, American Airlines reservation system
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Sources of Strategic Information Systems
Existing System
New Service
New Technology
Excess Information
Vertical Information
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How one IS Failed
Citicorp tried to use an SIS to implement
a 15-minute mortgage approval plancalled Mortgage Power Plus, but theprogram failed.
Failed strategically due to unwisebusiness shortcuts.
Failed operationally due to poortechnical implementation.
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As we have implementedStrategic Information System
in QUADBURY company to
see how it is beingworked.
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INTRODUCTION Ever since the CADBURY factory was set up in India in
1947, Cadbury chocolates have ruled the hearts of Indians
with their fabulous taste. Considering the penchant we Indians have for sweets, its
not surprising that these sweet, smooth, milky & irresistiblydelicious chocolates are the best childhood gift any Indian
child could get. Thank God for young JOHN CADBURY who ventured into
the chocolate business over 150 years age,way back in
England, in 1824. Long gone is the dry chocolate supplied by John
Cadbury in his Birmingham grocery store.
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CADBURY TODAY
It has been more than half a century that
CADBURY has been the most loveable
brands in India.
Cadbury India is a significant player in
the impulse market enjoying 70% share in
chocolates & a substantial share of the
sugar confectionery market.
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The Blood of marketing
( INNOVATION)
Cadbury believes in innovation.-Innovation is avirtue of marketing
strategy. Its marketingstrategy is such that it
builds a brand imagenot only through
advertisements alone butthroughperformance.
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STRATEGIES
1. Cadbury uses a variety of advertisements with
different genres and themes to attract different
age groups. E.g. Animated ads, Melodious
jingles etc.
2. Cadbury associates itself with emotions and
sentiments of people through relationships of
friendship and brotherhood.
3. Sponsorship- Bourn vita kid contest, Bourn vita
confidence academy, kya aap panchvi pass se tezhain.
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4. In order to capture the market particularly the
youthsegment the strategy adopted is to promote
SPORTS by encouraging events such as :
Karate (whiz kid championship)
In 1980 Cadbury bourn vita was the official health
drink for the Indian team at the Moscow Olympics.
5. Cadbury has not only restricted its market to
child segment but through its innovativenesshas
captured every segment of the society.
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6. Innovation in product range has been a major
advancement byCadbury in retaining its market
share.
Examples of marketinginnovation by Cadbury
*Perks new range of ulta perk*5 stars new range of 5 star crunchy
*Gems new range of fruity gems
7. Print & poster campaigns
8. Attractive packaging has been a successful way of
attracting customers to buy its products over other
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9. A huge atr value is associated with Cadbury which
inurn
increases the acceptability in the market. it hasroped in bollywood legend Amitabh Bachan and the
ravishing Preity.
10.Extremely catchy and well recognized tag
lines and punch lines create strong brandvalue and
awareness for Cadbury.
The linesPappu pass ho gaya , Kuch metha hojayegives a distinct image of Cadbury.
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11.Cadbury caters to that segment of the society
which cannot afford large sums ofmoney.
The marketing strategies adopted here would beintroduction of economy packs of all.
12.The most important marketing policy
being, implemented during the festive season.The Consumptions of sweets is at its zenith
during the festive season. India being acountry of
rich culture and diversified
religions has a hand fullof festivals. Cadburymakes most out of this season
by introducinggift boxes thus spreading joy.
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Managing For Value
Process incorporates
Setting stretched financial objectives.
Adopting Value Based Management for major
strategic and operational decisions and business
systems.
Creating an outstanding leadership capability
within their management.
Sharpening their company culture to reflectaccountability, aggressiveness and adaptability.
Aligning their management rewards structure
with the interests of the shareowners.
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India's best managed
companies in 2003Cadbury India was identified as one of Indias
Best Managed Companies in 2003. Mr Bharat
Puri, Managing Director of Cadbury India was
felicitated by Indias Finance Minister, Mr
Jaswant Singh at Business Todays BestManaged Companies Awards ceremony. It was
the only Multinational Company featured in
the list of Best Managed companies in
India .
AWARD
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Thank You
For
ListeningQuestion Please