Strategic Uses of Information Systems
اسلاید 1: Management Information Systems, 4th Edition1Chapter 2 Strategic Uses of Information Systems
اسلاید 2: Management Information Systems, 4th Edition2Learning ObjectivesExplain what business strategy and strategic moves areIllustrate how information systems can give businesses a competitive advantageIdentify basic initiatives for gaining a competitive advantage
اسلاید 3: Management Information Systems, 4th Edition3Learning Objectives (Cont.)Explain what makes an information system a strategic information systemIdentify fundamental requirements for developing strategic information systemsExplain circumstances and initiatives that make one SIS succeed and another fail
اسلاید 4: Management Information Systems, 4th Edition4Strategy and Strategic MovesStrategyA plan designed to help an organization outperform its competitorsStrategic Information SystemsInformation systems that help seize opportunitiesCan be developed from scratch, or they can evolve from existing ISs
اسلاید 5: Management Information Systems, 4th Edition5Strategy and Strategic Moves (Cont.)Strategic advantage: Using a strategy to maximize strengthCompetitive advantage: The result of the use of a strategic advantage
اسلاید 6: Management Information Systems, 4th Edition6Achieving a Competitive AdvantageIncrease profits through increased market shareInnovation results in advantageStrategies that no one has tried beforeExample: Dell using the Web to take customer orders
اسلاید 7: Management Information Systems, 4th Edition7Achieving a Competitive Advantage (Cont.)
اسلاید 8: Management Information Systems, 4th Edition8Achieving a Competitive Advantage (Cont.)
اسلاید 9: Management Information Systems, 4th Edition9Lower costs results in lower priceBigger Market ShareImplement automation to become more productiveThe Web has made this possible for many Initiative #1: Reduce Costs
اسلاید 10: Management Information Systems, 4th Edition10PatentingHigh expense of entering industryState Street, Inc. (Pension fund management business)Initiative #2: Raise Barriers to Market Entrants
اسلاید 11: Management Information Systems, 4th Edition11Explicit Switching CostsFixed and nonrecurringImplicit Switching CostsIndirect costs in time and money of adjusting to a new productInitiative #3: Establish High Switching Costs
اسلاید 12: Management Information Systems, 4th Edition12Lasts only until competition offers an identical or similar product or service for a comparable or lower priceFirst Mover: Creates assetsBrand NameBetter TechnologyDelivery MethodsCritical Mass: body of clients that attracts other clientsInitiative #4: Create New Products or Services
اسلاید 13: Management Information Systems, 4th Edition13Product differentiationBrand recognitionExamples of brand name successLevi’s jeansChanel perfumesGap clothesInitiative #5: Differentiate Products or Services
اسلاید 14: Management Information Systems, 4th Edition14ExamplesAuto manufacturers enticing customers with a longer warrantyReal estate agents providing useful financing information to potential buyersCharles Schwab moving stock trading services on-line before Merrill LynchInitiative #6: Enhance Products or Services
اسلاید 15: Management Information Systems, 4th Edition15Combined service may attract customersLower costConvenienceExamplesTravel industry HP and FedExInitiative #7: Establish Alliances
اسلاید 16: Management Information Systems, 4th Edition16Establishing Alliances (Cont.)
اسلاید 17: Management Information Systems, 4th Edition17Bargaining PowerPurchase volumeStrengthen perception as a leaderCreate a standardInitiative #8: Lock in Suppliers or Buyers
اسلاید 18: Management Information Systems, 4th Edition18Strategic Information Systems (SIS) An IS that helps achieve long-term competitive advantageSIS embodies two types of ideas:Potentially-winning business moveHow to harness IT to implement that moveTwo conditions for SIS:Serve an organizational goalWork with the managers of the other functional units
اسلاید 19: Management Information Systems, 4th Edition19Creating an SISTop management involvement From initial consideration through development and implementationMust be a part of the overall organizational strategic plan
اسلاید 20: Management Information Systems, 4th Edition20Steps for Considering a new SIS
اسلاید 21: Management Information Systems, 4th Edition21Steps to Take in an SIS Idea-Generated Meeting
اسلاید 22: Management Information Systems, 4th Edition22To implement an SIS and achieve a competitive advantage, organization must rethink entire operationGoal of re-engineeringAchieve efficiency leaps of 100% or higher Re-engineering and Organizational Change
اسلاید 23: Management Information Systems, 4th Edition23SISs developed as strategic advantages quickly become standard businessBanking industry (ATMs and banking by phone)Continuous search for new ways of utilizing information technology to their advantageSABRE, American Airlines’ reservation systemCompetitive Advantage as Moving Target
اسلاید 24: Management Information Systems, 4th Edition24JetBlue: A Success StoryGained competitive advantage where others failedProper technology and management methodsReducing costs resulting in reduced pricingImproving service
اسلاید 25: Management Information Systems, 4th Edition25Massive AutomationAutomation of services with softwareCombination reservation system and accounting systemSupports customer services and sales trackingJetBlue: A Success Story (Cont.)
اسلاید 26: Management Information Systems, 4th Edition26Massive Automation, continuedElectronic ticketsNo paper handling or expenseEncourages online ticket purchasesAvoids travel agentsSignificant savings in costJetBlue: A Success Story (Cont.)
اسلاید 27: Management Information Systems, 4th Edition27Massive Automation, continuedMaintenance information systemLogs all airplane parts and time cyclesReduces manual tracking costsFlight planning softwareMaximize seats occupied on a flightReduced planning costsJetBlue: A Success Story (Cont.)
اسلاید 28: Management Information Systems, 4th Edition28Massive Automation, continuedBlue PerformanceIn-house software for tracking operational dataUpdated on a flight by flight basisAccessible by airline’s 2,800 employeesManagers are able to respond immediately to problemsJetBlue: A Success Story (Cont.)
اسلاید 29: Management Information Systems, 4th Edition29Massive Automation, continuedWireless devices for employeesReport and respond to irregular eventsQuick responseEvents recorded for future analysisTraining records stored electronicallyEasy to updateEfficient retrievalJetBlue: A Success Story (Cont.)
اسلاید 30: Management Information Systems, 4th Edition30Away from TraditionDecision to not use the hub and spoke routing methodPaperless CockpitsLaptops for PilotsHarnessing IT to maintain a strategic gapJetBlue: A Success Story (Cont.)
اسلاید 31: Management Information Systems, 4th Edition31Enhanced ServiceAvailable on all flights and all class ticketsLive TV through contract with DirecTVLeather SeatingExcellent on-schedule arrivals and departuresFewest mishandled bagsRapid check-in timeSecurity upgradesJetBlue: A Success Story (Cont.)
اسلاید 32: Management Information Systems, 4th Edition32Impressive PerformanceMaintains excellent statistics7 cent cost per available seat-mile (CASM)78% of seats are filledLate Mover AdvantageNew Technology vs. legacy systemsJetBlue: A Success Story (Cont.)
اسلاید 33: Management Information Systems, 4th Edition33The IdeasWingcast telematicsTechnology in vehicles to enable Web accessBusiness to Business: CovisintJoint venture with General Motors and DaimelerChryslerElectronic market for parts suppliersVendor bidding for proposals from automakersFord on the Web: A Failure Story
اسلاید 34: Management Information Systems, 4th Edition34The Ideas (cont.)Business to Consumer: FordDirect.comSell vehicles direct to consumers via the WebBypass dealershipsProvide service while saving dealer feesConsumerConnectSpecial unit to build Web site and handle direct salesFord on the Web: A Failure Story (Cont.)
اسلاید 35: Management Information Systems, 4th Edition35Hitting the WallWingcast: FailedBuyers not interestedProduct eliminated in June 2001Covisint: Successful Now includes more automakersFord on the Web: A Failure Story (Cont.)
اسلاید 36: Management Information Systems, 4th Edition36Hitting the WallFordDirect.com: FailedNot a result of faulty technologyFord failed to consider state laws and dealership relationshipsDealership relationship was still needed for purchases not on the WebFord on the Web: A Failure Story (Cont.)
اسلاید 37: Management Information Systems, 4th Edition37The RetreatConsumerConnect disbandedFordDirect.com used by dealerships nowSells used carsPrice tag for failure: $1 billionFordDirect.com today results in 10,000 sales transactions a monthFord on the Web: A Failure Story (Cont.)
اسلاید 38: Management Information Systems, 4th Edition38Success and Failure on the WebBeing first is not enough for successBusiness ideas must be soundAn organization must carefully define what buyers wantEstablishing a recognizable brand name is important but does not guarantee success; satisfying needs is more important
اسلاید 39: Management Information Systems, 4th Edition39The Bleeding EdgeBusiness owners must develop new features to keep the system on the leading edgeAdopting a new technology involves great riskNo experience from which to learnNo guarantee new technology will work or customers and employees will welcome it
اسلاید 40: Management Information Systems, 4th Edition40The Bleeding Edge (Cont.)The bleeding edge: failure in an organization’s effort to be on the technological leading edgeAllow competitors to assume the riskRisk losing initial rewardsCan quickly adopt and even improve pioneer organization’s successful technology
اسلاید 41: Management Information Systems, 4th Edition41SummaryBusiness strategy and strategic moves can give an organization an advantageBasic initiatives for gaining a competitive advantageStrategic information systems require fundamental elementsCircumstances and initiatives that make one SIS succeed and another fail
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