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Contents

Introduction : Why the firms seek competitiveadvantages

Functional, Enterprise and Inter- organizational

system

Electronic Commerce

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Why Firms Seek Competitive Advantage (Porters

Five-Force Model):

The competitive forces Model is used todescribe the interaction of

external influences,

specifically threats and opportunities, that

affect an organizations

strategy and

ability to compete.

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Rivalry among existing competitors

Threat of new entrants

Threat of substitute product and services

Bargaining power of buyers

Bargaining power of suppliers

Porters Model focuses upon

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Information Systems for Competitive

Advantage

Businesses continually seek to establish

competitive advantage in the marketplace.

There are eight principles: The first three principles concern products.

The second three principles concern the

creation of barriers. The last two principles concern establishing

alliances and reducing costs.

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GlobalizationCertain features:

1. Businesses are expanding into global markets for theirproducts and services

2. Using global production facilities to manufacture and

assemble products3. Raising money in global capital markets

4. Forming alliances with global partners

5. Battling with global competitors for customers from allover the globe.

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Drivers ofchange

CompetitiveEnvironment

CompetitiveResponse

Implementation

Globalization

Technology

Efficient

Global

Markets

Global

Business

Operations andAlliances

The Network

Global

Corporation

How Information Technology can support the globalization of business

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Increased Management Complexities Management Science Technologies Decision-making

The Functional Uses of MISEnhance :

Quality of our operations Quality of our servicesThrough which We achieve :

Efficiency Transparency Speedy Decision making

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Business Process

What tasks does each employee perform, in

what order, and on what schedule? How are raw materials transformed into

products?

How are inventory managed?

How are orders fulfilled?

How are bills paid?

How are products marketed?

How are employees hired?

And so many other Hows?

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Business Process Re-engineering(BPR)

When IT substitutesfor human effort, it automatesa

task or process.

When IT augmentshuman effort, it informatsa task or

process.

When IT restructures, it transformsa set of tasks or

processes.

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Business Process Reengineering :

Business Process Re-engineering (BPR) isan example of how information Technologyis being used to restructure work by

transforming business processes.

or

The fundamental rethinking and radicalredesign of business processes to achievedramatic improvements, such as cost,quality, service and speed.

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The Business Process ReThe Business Process ReThe Business Process ReThe Business Process Re----engineeringengineeringengineeringengineering

could be defined as:could be defined as:could be defined as:could be defined as:

ReReReRe----questioning andquestioning andquestioning andquestioning andReReReRe----answering theanswering theanswering theanswering the

way we do businessway we do businessway we do businessway we do business

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BPR by IT at various levels:

Improved

Competitive

Position

Channel

Communication

Product

Management

System

Business

unit

Greater

Customer

Satisfaction

Product

Distribution

Product

database

Work Group

Increased SaleSales CallLaptop SystemIndividual

BusinessBenefit

ProcessChanged

IT Initiative

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Market Leadership

Market Leadership

Market Leadershi

Customer Cash

Management Accounts

Online Package Tracking

and Flight MgmtCustomer order entry

Innovation

(Market Leadership)

Increase in market share

Increase in market shareIncrease in market share

Portable Computer-based

customer need analysis

Computer-aided jobestimation

Customer Online Shipment

Tracking

Differentiation

(Increase in Market Share)

Cut purchasing cost

Cut Medical Costs

Cut Manufacturing Costs

Centralized Buying

Medical Care Monitoring

Machine Tool Control

Cost Leadership

(cutting cost)

Business BenefitsStrategicInformation System

Strategy

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Provides support to managers as theywork to achieve corporate goals

Enables managers to compare results toestablished company goals and identifyproblem areas and opportunities forimprovement

Precise development of strategies

IS for Competitive Advantage

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Contd.

Planning, forecasting and monitoring

Problem solving

Decision-making

Separate work from location