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Management & Information Systems

Management & Information Systems. B . Dobrev. Strategic Information Systems. What is a SIS? Change goals, operations, product, services or environmental relationships to help the organisation to gain Competitive Advantages Competitive Advantages due to: New products & services

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Management & Information Systems

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  1. Management & Information Systems B. Dobrev

  2. Strategic Information Systems What is a SIS? Change goals, operations, product, services or environmental relationships to help the organisation to gain Competitive Advantages Competitive Advantages due to: • New products & services • Quality • Lower costs • Marketing • Logistics • Customer relations

  3. Firm strategies • Cost Leadership • Product differentiation • Focus on Market niche • Enhancing Core Competencies Industry Level Strategies • Information partnership • Network economics

  4. Business Strategy IS Strategy Major Corporate Changes External Competitive Opportunities or trends Evolutionary Change in IS maturing (O’Brien)

  5. Business Environment Business Strategy IS Strategy Business Strategy Business Environment

  6. O’Brien Model of SIS perspectives • Dramatic Efficiency Gains • Promote Business Innovation • Build Strategic IS resource

  7. Characteristics of SIS • IT is used to achieve business goals • Partnership between business and IT managers is required

  8. Industry Impacts of SIS • Nature of Products & Services • Product Life Cycle • Geographical Scope • Economies of scale in production • Bargaining power of suppliers • New business creation

  9. Competitive Impacts of SIS • Products development cycle • Product quality enhancement • Sales force and selling support • Order cycle automation • Cost reduction • Reduction of management levels

  10. Four Potential business impacts of IS Improve ways ofinteracting with competitive marketplace Market place (external) Alter ways of competing Improve ways of managing internal operations Alter ways of operating Approaches to operations (Internal) Alter Traditional ways Improve traditional ways Strategic opportunities offered by IS

  11. Parson’s Generic IS Strategies • Centrally planned • Leading edge • Free market • Monopoly • Scarce resources • Necessary evil

  12. Low cost/cost leadership Differentiation Focus / niche Scarce Resource Free market Necessary evil Monopoly Leading edge Centrally planned Ward

  13. The competitive forces model New market entrants Substitute products and services The Industry The Firm Traditional industry competitors Suppliers Customers

  14. Strategic importance matrix High Turnaround Strategic Strategic importance of planned IS Support Factory Low Low High Strategic importance of current IS

  15. SWOT Matrix Internal factors External factors

  16. Value Chain Administrative Coordination and Support Services SIS: Collaborative Workflow Intranet-Based System Support Processes Human Resource Management SIS: Career Development Intranet for Employees Technology Development SIS: Computer-Aided Engineering and Design Extranet with Partners Procurement of Resources SIS: E-Commerce Auctions and Exchanges for Suppliers Competitive Advantage Inbound Logistics SIS: Computer Just-in-time Warehousing Operations SIS: Computer Aided Flexible Manufacturing Outbound Logistics SIS: Online Point-of-Sale and Order Processing Marketing and Sales SIS: Interactive Targeted Marketing Customer Services SIS: Customer Relationship Management Primary Business Processes

  17. Internet capability Marketing and Sales and Support and Product Research Distribution Customer Feedback Data for market research Establishes consumer Response to new Products Environmental scanning Reaches new Customers Low-cost distribution methods Electronic catalog Multiplies contact points at no Incremental cost Access to consumer comments online More staff in contact with Customers Immediate response to consumer problems Benefits to company Opportunities for Advantage Increased market Lower cost Enhanced customer Share margins satisfaction

  18. Relationship between strategic importance grid and generic IS Strategies High • Turnaround • Centrally planned • Leading edge • Free market • Strategic • Leading edge • Centrally planned Strategic importance of planned IS • Support • Scarce resource • Monopoly • Free market • Necessary evil • Factory • Monopoly • Scarce resource Low Low High Strategic importance of current IS

  19. HIGH Beware Attack Be safe Explore LOW LOW HIGH Opportunities and Vulnerabilities of Strategic Information Technology Applications General Value-adding potential of IT Applications Quality of Current Information System Resources

  20. Principles for SIS Planning • Support Business Strategy • Evaluate ICT • Recognise SDLC Costs • Assure Maintenance • Human Resources • Management & Control

  21. Earl’s 5 Types of Planning Approaches • Business led • Method driven • Administrative • Technological • Organisational

  22. The four phases of strategic IS/IT planning FOCUS MAIN OUTPUTS • Business objectives • IS/IT opportunities • Initial blueprint • Business objectives • IS/IT opportunities • Initial blueprint Confirm business Objective and analysis IS/IT opportunities • Assessment of current IS/IT • Review of IT organisation • Prioritisation of applications • Scoping of IS/IT strategy Analysis needs, assess current IS/IT and determine scope of strategy • Current IS/IT • Scope of strategy • Detailed target architecture • Information I • Data D • Applications A • Technology T • IT organisation O • IS/IT strategy • IS/IT implementation • Executive summary • Detailed blueprints for • main components • Assessment IS/IT strategies Define target IS/IT architectures (IDATO) and determine alternative strategies • Conclusion of strategy • Implementation plan • Costs and benefits Complete IS/IT strategy And develop IS/IT Implementation plan = checkpoint

  23. Decision Making Process Models: Individual • Rational • Cognitive (systematic, intuitive) Organisational • Bureaucratic • Political • “Garbage Can”

  24. Steps in Decision Making Internal or External Environment Problem finding Scan the environment Identify problems that need to be solved Internal or external data Problem to be solved Problem Solving • Intelligence • Collect and • analyse data • about the problem • Implementation • Inform others • of the decision • Put the decision • into effect • Design • Identify criteria • Create alternatives • Evaluate outcomes • Choice • Select preferred • alternative Results

  25. Components of DSS External Data TPS DSS Database DSS Software system Models OLAP Tools Datamining Tools User Interface User

  26. Group DSS • Preplanning • Effective participation • Evaluation opportunities • Set priorities • Access to external information

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