Insurers' journeys to build a mastery in the IoT usage
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NCRD'S Sterling institute of management studies
STRATEGIC USE OF
INFORMATION SYSTEM
MIS
presented to: presented by:
Sachin Thete
prof. sandeep ponde Ajay Renuke
Ganesh Shirsat
Paresh Makwana
Deepak R gorad
Samisha Rathi
MIS PRESENTATION
2. Strategy and Strategic Moves
• Strategy: plan to gain advantage over enemy
• Business strategy is plan to outperform
competitors
– Done by creating new opportunities, not beating
rivals
• Strategic Information System: Information
system that create and seize opportunities
• Strategic Advantage: Using strategy to
maximize company strengths
1
3. The Fundamental Roles of IS in Business
Support
Strategies
For Competitive
Advantage
Support
Business
Decision Making
Support
Business Processes and Operations
4. The Role of e-Business in Business
• The Internet and related technologies and applications have changed the way
businesses are operated and people work , how information systems support
business processes, decision making and competitive advantages, The many
businesses today using internet technologies to Web enable business processes
and create innovative e-business applications.
The Internet Supplier and Other Business Partners
Extranets Company
Boundary
Supply Chain Management:
Procurement , distribution and logistics
Intranets
Engineering and Manufacturing and Accounting and
Research production Finance
Intranets
Customer relationship management:
Marketing Sales Customer service
Consumers and Business Customers
5. Achieving a Competitive Advantage
Figure 2.1: Eight basic ways to gain competitive advantage 4
6. Achieving a Competitive Advantage
(continued)
Figure 2.2: Many strategic moves can work together to achieve a competitive advantage
5
8. Competitive Forces and Strategies
Cost Leadership
Differentiation
Innovation
Growth
Alliances
Other
Strategies
Threats of Threat of Bargaining Bargaining
Rivalry of New Power of Power of
Competitors Substitutes
Entrants Customers Suppliers
By Rakesh Roshan
9. Strategic Uses of IT
Basic strategies in the Business Use of Information Technology
Lower Costs
•Use IT to substantially reduce the cost of business process
•Use IT to lower the costs of customer or suppliers
Differentiate
•Develop new IT features to differentiate products and services.
•Use IT features to reduce the differentiation advantages of competitors.
•Use IT features to focus products and services at selected market places.
Innovate
•Create new products and services that include IT components.
•Develop unique new markets or market niches with the help of IT.
•Make radical changes to business processes with IT that dramatically cut costs, improve quality, efficiency or customer service or
shorten time to market.
Promote Growth
•Use IT to manage regional and global business expansion.
•Use IT to diversify and integrate into other products and services.
Develop Alliances
•Use IT to create virtual organizations of business partners.
•Develop inter enterprise information systems linked by the Internet and extranets that support strategic business relationships with
customers ,suppliers .subcontractors and others.
By Rakesh Roshan
11. Value Activity
Physical Information Processing
Component Component
Encompasses the physical tasks Includes the steps involved in capturing,
needed to perform the activity manipulating and channeling the data
necessary to carry out the activity.
Eg. Wal-mart inventory management activity
12. How a customer-focused business builds customer value and loyalty
using Internet technologies?
Let customers
Let customers place orders
place orders through
directly distribution
Build a customer partners
database
segmented by
Internet Internet
preferences and Extranets
profitability
Customer Transaction
Database Link employee and
Database distribution
partners to
databases and
customers
Make loyal
Give all employees customers feel Let customers check Intranets
a complete view of special with order history and
delivery status
Extranets
each customer websites
personalization
Intranets Internet
Build a Web
community of
customers, employees
and partners
14. Strategic Use of IT
• There are many ways that organizations may view and use IT. For Ex, Companies
may choose to use Information Systems strategically, or they may be content to
use IT to support efficient every day operations. But if a company emphasized
strategic business uses of IT, Its management would view IT as a major competitive
differentiator. They would then device business strategies that would use IT to
develop products, services ,and capabilities that would give the companies major
advantages in the markets in which it competes.
Reengineering Business Processes
One of the most important implementations of competitive strategies is business
Process reengineering(BPR), most often simply called reengineering. Reengineering is a
fundamental rethinking and radical redesign of business processes to achieve Dramatic
improvements in cost, quality, speed, and services. So BPR combines a strategy of
promoting business innovation with a strategy of making major improvements to business
processes so that a company can become a much stronger and more successful competitor
in the marketplace.
15. Example
Reengineering Order Management
•Customer relationship management systems using corporate intranets and the
Internet.
•Supplier managed inventory systems using the Internet and extranets.
•Cross-functional ERP software for integrating manufacturing, distribution,
finance and human resource processes.
•Customer-accessible e-commerce websites for order entry, status checking,
payment and services.
•Customer, product, and order status databases accessed via intranets and
extranets by employees and suppliers.
16. Intranet
• An intranet is a network inside an organization that uses Internet technologies to
provide an Internet-like environment within the enterprise for information sharing,
communications, collaboration and the support of business process. An intranet is
protected by security measures such as passwords, encryption and firewalls and
thus can be accessed by authorized users through the Internet
The Business Value Of Intranets
Organizations of all kinds are implementing a board range of intranet uses. One
Way that companies organize intranet application is to group them conceptually
into a few user services categories that reflect the basic services that intranets
offer to their users. These services are provided by the intranet’s portal,browser
and server software as well as by other system and application software and
groupware that are part of a company’s intranet software environment
17. Role of Intranet
Communication and Collaboration
Existing Communicate and collaborate
E-mail, voice- with e-mail, discussion forums,
Mail Systems chat and
conferencing.
Intranet
Enterprise F
Business Operations and Information
Internet
Existing
management Portal I
Databases Secure , universal R
And access to view E
Enterprise and use corporate
Applications
and external data.
W
A
Web Publishing
L Extranet
Author, publish and
HTML, MS Office
Share hypermedia
Employees L
XML, Java and
documents
Other Document
Types Customers,
Suppliers,
Intranet Portal Management And Partners
Existing Centrally administer
Hardware Clients , servers,
And Security, directory
Networks And traffic
18. Extranets connect the interconnected enterprises to consumers, business customers, suppliers
and other business partners
(Role of Extranet)
Consumers
Partners
Consultants
•Customer Self-Service
Contractors
•Online Sales and Marketing
•Sales Force Automation
•Joint design
•Build-to-Order products
•Outsourcing
•Just-in-Time Ordering
Internetworked
Enterprise
Suppliers and
Distributers
•Distributer management Business Customers
•SCM
•Procurement
20. How IT Supports Business Activities
Challenge: One of the first challenges managers face is understanding how
they can use IT to support business activities.
Porter & Millar’s concept of the value chain (introduced in 1985) helps
explain which business activities can be analyzed and transformed
through the use of IT.
21. Value Chain: Value chain is a chain of activities. Products pass through all activities
of the chain in order and at each activity the product gains some value.
Value activities
Primary activities Support activities
22. Value Chain of a firm
Administrative Coordination and support Services
Collaborative Workflow Intranet
Human resource Management
Employee Benefits intranet
Technology Development
Product Development Extranet with Partners
Support
Processes Procurement of Resources
E-Commerce Web Portals for Suppliers
Competitive
Customer Advantage
Service
Inbound
Logistics Marketing and Marketing and
Operations
Sales sales
Automated
Computer CRM
Just-in-time Online Point-of-
Primary Aided Flexible
Warehousing sale and order Targeted
Business Manufacturing
Processing Marketing
Processes
23. Value chain is a system of
interdependent linkages
Porter’s view
Eg. Investments in a more expensive product
design and superior material may reduce
after sale service cost
24. Value System: includes the value chains of supplier, of the firm, of the
channels through which the firm distributes its products and services and of
the ultimate buyer.
Supplier Firm Channel Buyer
Value chain value chain value chain value chain
Eg. A link between the automaker’s and steel maker's inventory systems can
provide information on delivery dates.
26. Knowledge Management Systems
• Knowledge Management Systems as the use of information technology to help
gather, organize and share business knowledge within an organization. In many
organizations, hypermedia databases at corporate intranet websites have become
the knowledge bases for storage and dissemination of business knowledge. This
knowledge frequently takes the form of best practices, policies and business
solutions at the project , team, business unit and enterprise levels of the
company.
For many companies, enterprise information portals are the entry to corporate
intranets that serve as their knowledge management systems. That’s why such
portals are called enterprise knowledge portals by their vendors.
27. Knowledge Management System Portals
Web User(employee/customer)
Single point of access to all corporate data
Portal server with knowledge management
Engine/server component
Personalized views of news and data •Automatically crawls(searches) structured
or unstructured data sources
•Categorizes searched data, tags and
Collaboration tools hyperlinks information
•Automatically builds user profiles
Community work areas Enterprise knowledge portal • based in activity.
Data Sources
Structured data Sources Unstructured Data Sources Enterprise Knowledge
ERP CRM Other E-mail File System Enterprise
Web
Databases Databases Databases Groupware •Documents Knowledge
•Internet
•Presentations •Intranet
Base
•Extranet