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Information System is a Competitive Weapon

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Information System is a Competitive Weapon

  1. 1. Information Syste is a Competitive Weapon By: Humaid Mustafa Alvi MBA First Year 21BAMMW356 GK-9804
  2. 2. With the help of information system technology, a company can become competitive in all phases of its customer relationships. The customer resource life cycle model makes it possible for such companies to determine not only when opportunities exist for strategic applications, but also what specific applications should be developed. Information System
  3. 3. An information system has three dimensions working together People – to help support decision making, coordination, control, analysis, and visualization in an organization Process – collects, processes, stores, and disseminates information Technology – hardware, software, and networks that support the business processes and people
  4. 4. Information systems can be utilized to achieve competitive advantage. In recent times, funds have been allocated to IT in order to increase efficiency. Information systems aid companies in competing with other competitors by maintaining low costs, differentiating products or services, focusing on market niche, strengthening ties with customers and suppliers, and increasing market entry high competition. These competitions are on a global scale and are not just within the industry. Having information systems in today's society helps businesses stay more connected with the world, and most importantly its customers. Information systems help connect businesses with its customers by relaying information quickly back and forth. Achieving Competitive Advantage with Information Systems
  5. 5. Competitive Rivalry: the strength of competition in the industry. 01 Supplier Power: the ability of suppliers to drive up the prices of your inputs or raw materials. 02 Buyer Power the strength of your customers to drive down your prices. 03 Threat of Substitution: the extent to which different products and services can be used in place of your own. 04 Threat of New Entry: the ease with which new competitors can enter the market (and potentially drive down your prices). 05 Porter's competitive forces model.
  6. 6. New Products and Services Information Storage Simplified Decision Making Behavioral Change How does Modern Business influence Information Systems? The implementation of information system can benefit a lot in businesses and helps in controlling the internal and external processes. Following are the benefits of information system
  7. 7. a) New Products and Services Any business striving to enhance and to give a strong hold on the future has to instill a well organized Business Information System. An IS can help in analyzing independent processes and enables organized work activities. Hence an information system entitles the companies to understand how the company generates, develops and sells the services or products. b) Information Storage Keeping a log of activities is important for all the organizations, to understand the reason for the problems and so to provide solution to the same. Business Information System makes it simple to store operational data, revision histories, communication records and documents. The storing of data manually involves a lot of time and money. A sophisticated Information system stores the information in the database which simplifies the process of finding the data easily. c) Simplified Decision Making Business Information System, eases the process of decision making and simplifies the process of delivering the required information and hence assists in taking better decisions instantly. d) Behavioral Change Business Information System can be effectively implemented to help communication better between the employers and the employees. Information Systems work better as it stores documents and files in folders that can be accessed and shared by the employees. This ensures to oversee the flow of information between the management and the lower-level employees. This also allows the the front-line employees to be a part of the decision making process and hence feel motivated and committed towards doing a task.
  8. 8. Internet’s impact on Competitive advantage • Enables new products and services • Transforms industries • Increases bargaining power of customers and suppliers • Intensifies competitive rivalry • Creates new opportunities for building brands and large customer bases
  9. 9. Apple iTunes: Music Gatekeeper Problem: Taking advantages of opportunities from new and disruptive technology to stay ahead of traditional competitors Solution: Launched iPod and setup iTunes music store to create a marketplace for portable and downloadable music Partnership with artists allow iTunes to supply exclusive content in return for driving sales .
  10. 10. One successful use of IS/IT for achieving competitive advantage • Having been familiar with the internet, the founder managed to open the first online retail shop. The company has grown tremendously over the last decade. • IT features have also enabled Amazon to offer unbeatable logistics hence boosting its competitive advantage. The company liaises virtually with numerous international distribution channels that provide efficient, quick, and safe delivery. • The above third-party logistics corporations deliver the orders taken from Amazon’s website. Through this, they have fostered their consumer confidence and reduced the risks of their rivals to get hold of their suppliers. • the company has been able to collaborate with several emerging IT companies outside the publishing industry. • By signing agreements with other online companies, the company has been able to direct hotlinks to its mother website. Over the past years, the company has signed several limited agreements with AOL.com, Netscape, Geocities, @Home Network, Alta Vista, a0nd with thousands of independent sites.
  11. 11. One unsuccessful use of IS/IT for gaining or enhancing competitive advantage • For a very long time, Nokia was a market trailblazer in the cell phone market. It was renowned internationally for its huge client base. It was so successful that it had created substantial entry hurdles for any new IT companies interested in the cell phone market. Its operating system, Symbian, was the pillar of its success. The OS was liked because it was user-friendly. The company’s products reigned from the intermediate and low-end market for years. • However, Nokia made a mistake when it became narrow-minded and contented with its accomplishments and failed to envisage the rivalry, major inventions, and innovative advancements coming it’s the way. • Nokia’s downfall began when Samsung started to manufacture phones focused on the low-end market. Similarly, its operating system failed to keep pace with Android OS. Through the above, the company’s operating system transformed from being a competitive benefit to being a drawback.
  12. 12. Internal and external factors influencing the success or failure of organization’s attempts at gaining and enhancing competitive advantages Helpful Harmful Internal factors Strengths Technology, diversity Weakness Personal management factors and organizational management factors External factors Opportunities Social and economic factors Threats Political, technological, environmental, and legal factors
  13. 13. Conclusion In conclusion, it should be noted that one approach through which business can gain a competitive advantage is adopting the use of information system or information technology. Notably, the use of IT is influencing competition in numerous critical methods. It alters the business configuration and, in so doing, modifies the directions of competition. It also generates competitive advantage by offering organizations innovative means of outdoing their competitors. There are several ways through which companies can utilize information technology to outdo their competitors. By embracing IT, an organization can lower costs, differentiate its products and services, innovate, promote growth, and develop alliances. As such, the use of IT can substantially reduce the cost of business processes. In spite of the fact that companies utilize IS/IT to gain competitive advantage, it should be noted that some companies have been unsuccessful. A time, the use of IT can go against the enterprise’s goals and objectives. For instance, the technology can attract numerous competitors that can outdo the pioneer company.
  14. 14. Bibliography Harvard Business Review Publisher: Harvard Business Publishing ISSN: 0017-8012 International Conference on Information Systems (ICIS) ICIS 1984 Proceedings

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