1. Chapter 4 Gaining Strategic Value from Information
Information Systems for Business: An Experiential Approach
Second Edition
France Bélanger, Craig Van Slyke, Robert E. Crossler
Bélanger, Van Slyke, Crossler © Prospect Press 2016

2. Practice: Focusing Story (p. 54)
What mHealth applications are you aware of?
What mHealth applications do you use?
Are there mHealth applications that you would use if they existed? What are they?
What are the benefits of mHealth for existing health care organizations? For consumers?
Bélanger, Van Slyke, Crossler © Prospect Press 2016

3. Strategic Information Systems
Designed and implemented to enable creation and appropriation of value (competitive advantage)
No need for proprietary IT:
Technology alone does not determine added value.
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4. Strategic IS Planning Process
Strategic planning: a structured set of steps, in an iterative process. Goal: identification of strategic information systems initiatives.
Figure 4.1 Information Systems Strategic Planning Process
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5. Step 1: Strategic Business Planning
Know Who You Are
Identify the organization’s:
Mission
Strategies (How to achieve the mission)
Goals and objectives
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6. Step 2: Information Systems Assessment
Know Where You Start
Assessment of the organization’s current IS resources and how well they fulfill the needs of the organization
But…
IS resources IT resources
Technical resources
Data and information resources
Human resources
4-6

7. Step 3: Information Systems Vision
Know Where You Want To Go
Broad statement of how the organization should use and manage its information systems for strategic purposes
Information Systems Vision
Firm’s Business Strategy
aligned and reflect
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8. Step 4: Information Systems Architecture
Know How You Are Going To Get There
How IS resources should be used and how they should work together.
Architectural guidelines can include statements about all information resources
hardware, software, networks
Bélanger, Van Slyke, Crossler © Prospect Press 2016

9. Step 5: Strategic Initiatives Identification
Know What You Need
Proposals
Long-term (two to five year)
Identify new systems, new projects, or new directions for the organization.
Frameworks
IS SWOT Analysis
Porter Five Competitive Forces Model
Porter’s Value Chain
Virtual Value Chain
© Dr. F. Bélanger - ACIS 5514 (3564) - F2015

10. Advantages of IS Strategic Planning Process
Improved Communication
Improved Coordination
Shared mental image of initiatives
Clear responsibilities agreed upon
Improved Decision Making
Clear guidelines and criteria
Consistent decisions making over time
Bélanger, Van Slyke, Crossler © Prospect Press 2016

11. Information Systems SWOT Analysis
(Strengths, Weaknesses, Opportunities, and Threats)
Table 4.1 SWOT Analysis Components
Component
Description
Example for Amazon.com
Strengths
What gives the organization advantages over others in their industry?
Leadership position in online retailing
Weaknesses
What creates disadvantages for the organization relative to others in their industry?
Increased size of the company requires more investments
Opportunities
What activities or factors could help the organization get new advantages over others in their industry?
Expand to services instead of just retailing
Threats
What activities or factors could create disadvantages or troubles for the organization relative to others in their industry?
Increasing global competition from online retailers
Bélanger, Van Slyke, Crossler © Prospect Press 2016

12. Porter’s Five Competitive Forces Model
Analysis of how competitive an industry.
Can determine if a particular market could be attractive for an organization to consider.
Figure 4.2 Porter’s Five Competitive Forces Model
Bélanger, Van Slyke, Crossler © Prospect Press 2016

13. Five Competitive Forces Model
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14. Figure 4.3 Porter’s Value Chain in Manufacturing Firm
Two types of activities: primary and support
Competition can come from two sources:
Lowering cost to perform an activity
Adding value to product or service
Figure 4.3 Porter’s Value Chain in Manufacturing Firm
Bélanger, Van Slyke, Crossler © Prospect Press 2016

15. Figure 4.4 Virtual Value Chain: Handling Information
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16. Evaluating Strategic Initiatives
Cannot implement all initiatives
Therefore, evaluate them with tools like:
Critical Success Factors
Important considerations to be achieved for organizational survival and success
Not focused on technology!
Aligned with business vision and mission
Only a few critical success factors
Priority Matrix
Bélanger, Van Slyke, Crossler © Prospect Press 2016

17. Practice: Learning Activity 4.2 (p. 67)
Your group is a top management team from the company Yahoo!
Identify the critical success factors for the company.
Compare with the other groups in the class.
Bélanger, Van Slyke, Crossler © Prospect Press 2016

18. Figure 4.5 Sample Priority Matrix
Bélanger, Van Slyke, Crossler © Prospect Press 2016

19. Practice: Learning Activity 4.3 (p. 68)
Complete a competitive analysis of Outrigger Hotels and Resorts (Piccoli, 2005).
Identify the competitive position of Outrigger Hotels and Resorts, and
Identify three strategic information systems initiatives you believe the company should consider.
Bélanger, Van Slyke, Crossler © Prospect Press 2016

20. Hyper-competition: Sustainability of Competitive Advantage
D’Aveni’s 7Ss suggest:
Every competitive advantage is eroded
Sustaining an advantage can be a deadly distraction
Goal of advantage should be disruption, not sustainability
Initiatives are achieved through series of small steps
Bélanger, Van Slyke, Crossler © Prospect Press 2016

21. D’Aveni’s 7Ss for Hyper-competition
Table 4.3 D’Avenis’ 7Ss
Approach
Definition
Superior stakeholder satisfaction
Maximizing customer satisfaction by adding value strategically.
Strategic soothsaying
Using new knowledge to predict or create new windows of opportunity.
Positioning for speed
Preparing the organization to react as fast as possible.
Positioning for surprise
Preparing the organization to respond to the marketplace in a manner that will surprise competitors.
Shifting the rules of competition
Finding new ways to serve customers, transforming the industry.
Signaling strategic intent
Communicating intentions in order to stall responses by competitors.
Simultaneous and sequential strategic thrusts
Taking steps to stun and confuse competitors in order to disrupt or block their efforts.
Bélanger, Van Slyke, Crossler © Prospect Press 2016

22. Practice: Learning Activity 4.4 (p. 69)
Your top management team at Yahoo! is tasked with selecting one of the 7Ss from the D’Aveni’s framework, specifically targeted at finding a way for Yahoo! to better compete with Google.
Identify a specific strategic initiative that will be used to implement the selected strategy (one of the 7s).
Rank all of the groups’ proposed initiatives in the class using the Critical Success Factors (LA 4.2)
Bélanger, Van Slyke, Crossler © Prospect Press 2016

23. Reflection
If the strategic planning process has the benefits of improved communication, coordination, and decision making, could it be used or applied by students for group projects? How?
In what situations in your personal life could you apply a SWOT analysis (not for a course)?
How does the priority matrix relate to critical success factors?
Do you believe that hyper-competition exists today? If so, do you think it will continue to happen in the future?
Bélanger, Van Slyke, Crossler © Prospect Press 2016

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Bélanger, Van Slyke, Crossler © Prospect Press 2016