1. Strategic Information Systems
Chapter 3
Strategic Information Systems

2. Agenda IT strategic deployment pressure
Strategic information systems (SISs)
Porter’s competitive forces model

3. Pressure Increase performance, not just marginally, but substantially
Private sector:
Highly competitive
Rapidly changing
Global markets
Public sector:
Improvement demand from taxpayers

4. 1998 Study by Hackett Group
IT staff spend an average of 3 days/week administering day-to-day operations
Only 8% of IT staff focused on decision support or strategic planning for future use of IT technology
Half of application development for supporting revenue generating function
A third of application development for rebuilding administrative and support functions

5. IT as Competitive Tool Innovation (IT) Speed (delivery)
Service (tailoring)
Quality (TQM)
Alliances (intranet, extranet)

6. Agenda IT strategic deployment pressure
Strategic information systems (SISs)
Porter’s competitive forces model

7. Strategic Information Systems
IS supports or shapes a business unit’s competitive strategy for competitive advantage
Approaches
Outward (customer services)
Inward (employee productivity)
Strategic alliances (supply chain)
Competitive intelligence (internal & external information)

8. Agenda IT strategic deployment pressure
Strategic information systems (SISs)
Porter’s competitive forces model

9. Porter’s Competitive Forces Model
Threat of new competitors
Bargaining power of supplies
Bargaining power of buyers
Threat of substitute product or services
Rivalry among existing firms

10. Porter’s Value Chain Analysis Model
Primary activities
Inbound logistics (input)
Operations (manufacturing and testing)
Outbound logistics (storage and distribution)
Marketing and sales
Service (installation and repair)

11. Porter’s Value Chain Analysis Model
Support activities
Firm infrastructure (accounting, finance, management)
Human resources management
Technology development (R&D)
Procurement
Value system
Increase efficiency, effectiveness, competitiveness

12. Porter & Millar’s SIS Process
Access information intensity (usage)
Determine the role of IT in the industry structure (competitive forces)
Identify & rank IT in terms of creating competitive advantage
Investigate IT to spawn new business
Develop a plan for taking advantage of IT

13. SISs Applications Cost leadership Differentiation Growth Time Alliance
Innovation
Improve internal efficiency
Customer-oriented approaches

14. Points to Remember IT strategic deployment pressure
Strategic information systems (SISs)
Porter’s competitive forces model

15. Discussion Questions
Is there any strategic information system in your organization?
Yes, name them.
No, can you suggest one or more?
What are the risk and ethical problems associated with implementing an E-commerce for a large grocery store?

16. Assignment Review technology guides 1-2 & chapters 1- 3 Read chapter 4
Group Assignment
Research paper