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Strategic Management and Information Systems
Chapter 2: Strategic Use of Information Resources in a Global Economy
Introduction
How have successful businesses utilized IS strategically?
What resources are involved in crafting a strategic IS policy? Which one is most important?
D’Aveni stated that competitive advantage is temporary, do you agree or disagree? Why?
Many of today’s most successful companies have created strategic alliances. How has this helped them to create strategic advantage?
What is the “Competitive Advantage”?
A competitive advantage is a benefit derived from something a company does or has that its customers want and its competitors cannot (or choose not to) match.
Sustainable Competitive Advantages
However, firms may create/improve their competitive advantages only if they:
have capacity to learn.
employ revenue management approach.
With the service economy accounting f…(생략)
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d satisfied customer base.
Zara aligns its information system strategy with its business strategy.
The POS system sends daily updates to Zara’s headquarters.
Managers report to designers what sold and what customers wanted but couldn’t find.
The information is used to determine what to keep and what to discontinue or change.
New designs can be ordered twice a week.
The entire process is automated so that new designs and products can be created quickly.
Real World Examples
In 1994 Dell finally stopped selling PCs through retail stores.
It moved completely to using an integrated IT platform that allow the order of customized systems.
Strategic use of IS produced Cost savings from reduced inventories passed on to customers.
This innovation created a competitive advantage for Dell, which used its information resources to achieve high volumes without the high costs of the industry’s traditional distribution channels (see www.dell.com)
Real World Examples
What is Business Model
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