Information Systems for Strategic Advantage
V. LECTURE NOTES
SECTION I: Fundamentals of Strategic Advantage
Information technology can change the way businesses compete. For this reason, you should view information systems strategically, that is, as vital competitive networks, as a means of organizational renewal, and as a necessary investment in technologies that help an enterprise achieve its strategic objectives.
Analysing GATX Capital
We can learn a lot about the strategic use of information technology for competitive advantage from the Real World Case of GATX Capital.
Take a few minutes to read it, and we will discuss it (See GATX Capital City in section XI).
12-1Competitive Strategy Concepts: [Figure 12.2]
The strategic role of information systems involves using information technology to develop products, services, and capabilities that give a company strategic advantages over the competitive forces it faces in the global marketplace. This creates strategic information systems, information systems that support or shape the competitive position and strategies of an enterprise. So a strategic information system can be any kind of information system (TPS, MIS, DSS, etc.) that helps an organization: 1.Gain a competitive advantage
2.Reduce a competitive disadvantage
3.Meet other strategic enterprise objectives
According to Michael Porter, a firm can survive and succeed in the long run if it successfully develops strategies to confront five competitive forces that shape the structure of competition in its industry. These include: 1. Rivalry of competitors within its industry
2. Threat of new entrants
3. Threat of substitutes
4. Bargaining power of customers
5. Bargaining power of suppliers
A variety of competitive strategies can be developed to help a firm confront these competitive forces. These include [Figure 12.3]:
Cost Leadership Strategy- Become a lowcost producer of products and services - Find ways to help suppliers or customers reduce their costs - Increase the costs of competitors.
Differentiation Strategy-Develop ways to differentiate products and services from competitors. - Reduce the differentiation advantages of competitors.
Innovation Strategy- Find new ways of doing business:
a) develop new products & services
b) enter new markets or marketing segments.
c) establish new business alliances
d) find new ways of producing products/services
e) find new ways of distributing products/services
Growth Strategies-Significantly expand the company=s capacity to produce goods and services. - Expand into global markets
- Diversify into new products and services - Integrate into related products and services.
Alliance StrategiesEstablish new business linkages and alliances with customers, suppliers, competitors, consultants and other companies (mergers, acquisitions, joint ventures, forming virtual companies, etc.).
12-2Strategic Roles for Information Systems:
How can the preceding competitive strategy concepts be applied to the strategic role of information systems? Information technology can be used to implement a variety of competitive strategies. These include the five basic competitive strategies (differentiation, cost, innovation, growth, alliance), as well as other ways that companies can use information systems strategically to gain a competitive edge. For example: 1.Lower Costs
6.Improve quality and efficiency
7.Build an IT platform
- use interorganizational information systems to create switching costs that lock in customers and suppliers. - use investments in IT to build barriers to entry...
This project work is to design and implement hospital billingsystem that will reduce cost, complaints, time and increase efficiency of billing within the hospital.
We investigate the St. Joseph’s General Hospital near at cathedral specific in Ozamiz City. Reveals that the manual system of keeping records and billing patients in the hospital has some problems such as using paper and pen to calculate patient’s bills thus increasing cost in the establishment.
During our observation method, interview method, examination of document and record are used together information. This help us in the identifications of the scope and requirement of the new system. In the new system design flowchart are used to depict the program logic and the new system is transformed into a computer understandable language using Visual Basic programming or anything that can be needed. Finally the system is tested and integrated in order to achieve the design objective.
II. BACKGROUND OF THE DESIGN
The hospital billingsystem includes the basic information about the patient and billing records and to provide an overview of the hospital billing process. The system described here is proposed to serve clinic or hospital systems as an adequate fixed asset...
...MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell
MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell
Introduction to the Computer-Based Information System & Using Information Technology for Competitive Advantage
Copyright 2001 Prentice-Hall, Inc. Copyright 2001 Prentice-Hall, Inc.
Introduction to the Computer-Based Information System
Five Main Resources
Personnel Material Machines
The most valuable resource
– (including facilities and energy)
Money Information (and data)
How Resources are Managed
Acquire Assemble, or prepare Maximize use Replace
Factors Stimulating Interest in Information Management
Increasing complexity of business activity
– – – – –
International economy Worldwide competition Increasing complexity of technology Shrinking time frames Social constraints
Improved computer capabilities
– Size – Speed
Who are the Users?
Managers Nonmanagers Persons & organizations in the firm’s environment
The Influence of Management Level on Information Source
Strategic planning level Management control level Operational control level
The Influence of Management Level on Information Form
Strategic planning level...
...broken billing process for the SeaCube Container Leasing Company and presents a solution to fix and improve the process. It has been written in order so the management of SeaCube Container Leasing Company can support and implement the proposed improvement to the billing process. This paper will cite references in adherence to the APA writing format for clarity.
Team Authorative Paper
Sending an invoice in today’s world can be costly when you consider the expense of paper, postage and printing along with the possibility of lost mail” (Best Practice Systems). In the business world today, the use of technology has been of such great use in quickening processing times in all departments. For any business dealing with customers to who bills must be sent, the use of a number of billingsystems and invoice generation modules has become a growing trend in monthly invoicing practices. Receiving invoices through Media other than the traditional paper bill via mail or express service is an increasing preference for all involved as well as being considered environmentally friendly. The following billing process at SeaCube Container Leasing Company will be explained with suggested improvements.
Team Authoritative Paper
SeaCube Container Leasing is an International leasing company which provides shipping containers to the world’s top 20 shipping companies. In...
...ITEC55 - System Analysis and Design |
Lecture | : | One - 1 |
What is a System?
Here are some definitions of a system according to Dictionary.com
* A group of interacting, interrelated, or interdependent elements forming a complex whole.
* A functionally related group of elements, especially:
1. The human body regarded as a functional physiological unit.
2. An organism as a whole, especially with regard to its vital process or functions.
3. A group of physiological or anatomically complementary organs or parts: nervous system or skeletal system
4. A group of interacting mechanical or electrical components
5. A network of structures and channels, as for communication, travel or distribution.
6. A network related computer software, hardware and data transmission devices.
* An organized set of interrelated ideas or principles.
DEFINITION OF SYSTEM
Definition number one (1)
Systems are developed to satisfy a set of requirements that meet q need. It exists in an environment, and has operators and users. The system provides feedback to the operators and services to the users. Sometimes, a system contains many subsystems.
Definition number two (2)
A system is a set of manual and automated procedures and devised for conducting business. Some procedures may support monthly information...
...CIS243 (Principles of Management Information Systems)
Learning Unit Analysis Worksheet
List and explain 5 concepts learned today (100-200 words for each concept).
Concept Your Understanding of the Concept
1. Operational excellence | Operational excellence begins by organizations aligning their philosophy in a way that outlines objectives through problem solving, leadership and teamwork. Many organizations try to continually make changes with the goal of achieving operational excellence. Information Systems is similarly executed by using these principles as a way to achieve excellence. The central goal is to achieve higher levels of productivity and efficiency by using systems to establish procedures that will better manage information and processes. This can take place in many ways whether it’s by communicating with employees or working with a business’s supply chain. |
2. Information Technology | Information technology is necessary for the successful profitable functioning of any business entity. In the present day market we can see the new challenges for managers, and how these challenges need to be dealt with effectively for our organizations to attain the goals envisioned. Our managers will have to deal with the following issues: globalization and business reengineering. Globalization involves taking a worldwide perspective of the firm's business - its challenges and opportunities, markets, customers,...
Week of July 15th
“Open Systems Theory (OST) is a modern systems-based changed management theory designed to create healthy, innovative and resilient organizations and communities in today’s fast changing and unpredictable environments (Opensystemtheory.org, July, 2013).” In this paper I will discuss what Open System Theory is and how it relates to organizations, groups and Individuals.
The OpenSystem Model takes into account relations between systems and its environment. The open system properties are comprised of; environments; inputs, transformations, and outputs; boundaries; feedback; equifinality; and alignment. Open system model looks at the overall picture; the communication and feedback is essential to clearly direct planning and create an intelligent design.
Environment can directly and indirectly affect performance and outcomes. Both Organizations and People exchange information with their environment; cannot fully control their behavior and are influenced by external forces. For organizations environmental conditions they are affected by include, “availability of labor, human capital, raw material, customer demand, competition and government regulations (Cummings and Worley, Pg.90).”
Input, Transformations, and Outputs are seen as information received form external places, analyzed (Social and Technological) and converted...
...Case Assignment Module 1
Each company has an information system that uses data, knowledge, and information in order to make operations more effective. Although this system may vary, each company records some type of data, analyses it, and uses the feedback to make decisions or changes through tout the company. This is having an information system within the company. Throughout this essay, information systems will be discussed and applied to information theory.
To begin, it is important to understand each component of an information system. There is data, knowledge, and knowledge. These three terms have general meaning that apply to, and interact within an information system. Although these terms are generally interchangeable, they have very different meanings in relation to Information Systems Theories (Nickerson & Zenger, 2004).
Data refers to the records that are used from observations, experiments, and statistical formulations. Thus, data is collected, recorded, and used as evidence for the particular company or organization. Data can be observations or actual numbers pulled from sales reports and other financial documents. Additionally, this data is used to obtain information about decision-making and changes that the company needs to make.
Information is gathered by analyzing the data that is collected. In other words, it is a process of taking data and...
...INFORMATION SYSTEMS IN BUSINESS
For every information system to run, data is needed. Data is unprocessed information or raw facts. Data cannot be used in the “raw” form because it has no meaning; therefore it has to be processed to create information. Information is processed data from which conclusions may be derived through a system. A system is a group of independent but interrelated elements. Therefore, an InformationSystem is a collection of interrelated components that gather data, manipulate it and store it. It also gives a feedback to its objective. “An Information System is a System consisting of the network of all communication channels used within an organization.” (http://wordweb.info/WW5). Every business needs an information system to help it make sound decisions which helps decision makers achieve organizational goals. An example of a business information system would be an Entity Resource Planning system which is a multi-mode application software that helps manage the vital parts of a business. As advantageous as it can be to use an Information system in a business, many ethical issues arise too. This will be discussed further in this research paper.
Importance of Information Systems in business
Improved decision making
Many managers never have the right information at the right...