strategic use of mis drgorad

7/28/2019 STRATEGIC USE OF MIS DRGORAD

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STRATEGIC USE OF

INFORMATION SYSTEM

MIS

NCRD'S Sterling institute of management studies


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Strategy and Strategic Moves

Strategy: plan to gain advantage over enemy

Business strategy is plan to outperformcompetitors

Done by creating new opportunities, not beatingrivals

Strategic Information System: Information

system that create and seize opportunities Strategic Advantage: Using strategy to

maximize company strengths

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The Fundamental Roles of IS in Business

Support

StrategiesFor Competitive

Advantage

Support

Business

Decision Making

Support

Business Processes and Operations


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The Role of e-Business in Business

The Internet and related technologies and applications have changed the way

businesses are operated and people work , how information systems support

business processes, decision making and competitive advantages, The many

businesses today using internet technologies to Web enable business processes

and create innovative e-business applications.

Supply Chain Management:

Procurement , distribution and logistics

Customer relationship management:

Marketing Sales Customer service

Engineering and

Research

Manufacturing and

production

Accounting and

Finance

Intranets

Intranets

Extranets Company

Boundary

Supplier and Other Business PartnersThe Internet

Consumers and Business Customers


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Achieving a Competitive Advantage

4Figure 2.1: Eight basic ways to gain competitive advantage


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Achieving a Competitive Advantage

(continued)

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Figure 2.2: Many strategic moves can work together to achieve a competitive advantage


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Competitive Advantage

- Ajay Renuke


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Competitive Forces and Strategies

By Rakesh Roshan

Cost Leadership

Differentiation

Innovation

Growth

Alliances

Other

Strategies

Rivalry of

Competitors

Threats of

New

Entrants

Threat of

Substitutes

Bargaining

Power of

Customers

Bargaining

Power of

Suppliers


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Strategic Uses of IT

By Rakesh Roshan

Basic strategies in the Business Use of Information Technology

Lower CostsUse IT to substantially reduce the cost of business process

Use IT to lower the costs of customer or suppliers

DifferentiateDevelop new IT features to differentiate products and services.

Use IT features to reduce the differentiation advantages of competitors.

Use IT features to focus products and services at selected market places.

InnovateCreate new products and services that include IT components.

Develop unique new markets or market niches with the help of IT.

Make radical changes to business processes with IT that dramatically cut costs, improve quality, efficiency or customer service or

shorten time to market.

Promote GrowthUse IT to manage regional and global business expansion.

Use IT to diversify and integrate into other products and services.

Develop AlliancesUse IT to create virtual organizations of business partners.

Develop inter enterprise information systems linked by the Internet and extranets that support strategic business relationships with

customers ,suppliers .subcontractors and others.


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customer bonding

Ganesh shirsat


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Value Activity

Physical

Component

Encompasses the physical tasks

needed to perform the activity

Information Processing

Component

Includes the steps involved in capturing,

manipulating and channeling the data

necessary to carry out the activity.

Eg. Wal-mart inventory management activity


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How a customer-focused business builds customer value and loyalty

using Internet technologies?

Let customers

place ordersdirectly

Let customers

place orders

throughdistribution

partners

Link employee and

distribution

partners to

databases and

customers

Let customers check

order history anddelivery status

Make loyal

customers feel

special withwebsites

personalization

Give all employees

a complete view ofeach customer

Build a customer

database

segmented by

preferences and

profitability

Build a Web

community of

customers, employees

and partners

Transaction

Database

Customer

Database

Internet

Internet Internet

Extranets

Intranets

Extranets

Intranets


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Paresh makwana

Reengineering Buisness Process


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Strategic Use of IT

There are many ways that organizations may view and use IT. For Ex, Companies

may choose to use Information Systems strategically, or they may be content to

use IT to support efficient every day operations. But if a company emphasized

strategic business uses of IT, Its management would view IT as a major competitivedifferentiator. They would then device business strategies that would use IT to

develop products, services ,and capabilities that would give the companies major

advantages in the markets in which it competes.

Reengineering Business Processes

One of the most important implementations of competitive strategies is business

Process reengineering(BPR), most often simply called reengineering. Reengineering is a

fundamental rethinking and radical redesign of business processes to achieve Dramatic

improvements in cost, quality, speed, and services. So BPR combines a strategy of

promoting business innovation with a strategy of making major improvements to business

processes so that a company can become a much stronger and more successful competitor

in the marketplace.


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Example

Reengineering Order ManagementCustomer relationship management systems using corporate intranets and the

Internet.

Supplier managed inventory systems using the Internet and extranets.

Cross-functional ERP software for integrating manufacturing, distribution,

finance and human resource processes.

Customer-accessible e-commerce websites for order entry, status checking,

payment and services.

Customer, product, and order status databases accessed via intranets and

extranets by employees and suppliers.


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Intranet

An intranet is a network inside an organization that uses Internet technologies to

provide an Internet-like environment within the enterprise for information sharing,

communications, collaboration and the support of business process. An intranet is

protected by security measures such as passwords, encryption and firewalls and

thus can be accessed by authorized users through the Internet

The Business Value Of Intranets

Organizations of all kinds are implementing a board range of intranet uses. One

Way that companies organize intranet application is to group them conceptually

into a few user services categories that reflect the basic services that intranets

offer to their users. These services are provided by the intranets portal,browserand server software as well as by other system and application software and

groupware that are part of a companys intranet software environment


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Role of Intranet

Communicate and collaborate

with e-mail, discussion forums,

chat and

conferencing.

Secure , universal

access to view

and use corporate

and external data.

Author, publish and

Share hypermedia

documents

Centrally administer

Clients , servers,

Security, directory

And traffic

Existing

E-mail, voice-

Mail Systems

Existing

Databases

And

Enterprise

Applications

HTML, MS Office

XML, Java and

Other Document

Types

Existing

Hardware

And

Networks

Intranet

Enterprise

Information

Portal

F

I

R

E

W

A

L

L

Internet

Extranet

Customers,

Suppliers,

And Partners

Communication and Collaboration

Business Operations and

management

Web Publishing

Intranet Portal Management

Employees


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Extranets connect the interconnected enterprises to consumers, business customers, suppliers

and other business partners

(Role of Extranet)

PartnersConsultants

Contractors

Joint design

Outsourcing

Suppliers andDistributers

Distributer management

SCM

Procurement

Consumers

Customer Self-Service

Online Sales and Marketing

Sales Force Automation

Build-to-Order products

Just-in-Time Ordering

Business Customers

Internetworked

Enterprise


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Deepak R Gorad

For BUISNESS ACTIVITIES


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Challenge: One of the first challenges managers face is understanding how

they can use IT to support business activities.

How IT Supports Business Activities

Porter & Millars concept of the value chain (introduced in 1985) helps

explain which business activities can be analyzed and transformed

through the use of IT.


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Value Chain: Value chain is a chain of activities. Products pass through all activities

of the chain in order and at each activity the product gains some value.

Value activities

Support activitiesPrimary activities


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Value Chain of a firm

Support

Processes

Primary

Business

Processes

Inbound

Logistics

Automated

Just-in-timeWarehousing

Operations

Computer

Aided FlexibleManufacturing

Marketing and

Sales

Online Point-of-sale and order

Processing

Marketing and

sales

Targeted

Marketing

Customer

Service

CRM

Competitive

Advantage

Administrative Coordination and support ServicesCollaborative Workflow Intranet

Human resource Management

Employee Benefits intranet

Technology Development

Product Development Extranet with Partners

Procurement of Resources

E-Commerce Web Portals for Suppliers


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Value chain is a system of

interdependent linkages

Porters view

Eg. Investments in a more expensive product

design and superior material may reduce

after sale service cost


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Supplier Firm Channel Buyer

Value chain value chain value chain value chain

Value System: includes the value chains of supplier, of the firm, of the

channels through which the firm distributes its products and services and of

the ultimate buyer.

Eg. A link between the automakers and steel maker's inventory systems can

provide information on delivery dates.


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Samiksha Rathi

KNOWLEDGE MANAEMENT


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Knowledge Management Systems

Knowledge Management Systems as the use of information technology to help

gather, organize and share business knowledge within an organization. In many

organizations, hypermedia databases at corporate intranet websites have become

the knowledge bases for storage and dissemination of business knowledge. This

knowledge frequently takes the form of best practices, policies and businesssolutions at the project , team, business unit and enterprise levels of the

company.

For many companies, enterprise information portals are the entry to corporate

intranets that serve as their knowledge management systems. Thats why such

portals are called enterprise knowledge portals by their vendors.


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Knowledge Management System Portals

Enterprise knowledge portal

Single point of access to all corporate data

Personalized views of news and data

Collaboration tools

Community work areas

ERP

Databases

CRM

Databases

Other

Databases

E-mail

Groupware

File System

Documents

Presentations

Web

Internet

Intranet

Extranet

Enterprise

Knowledge

Base

Structured data Sources Unstructured Data Sources Enterprise Knowledge

Portal server with knowledge managementEngine/server component

Automatically crawls(searches) structured

or unstructured data sources

Categorizes searched data, tags and

hyperlinks information

Automatically builds user profiles

based in activity.

Web User(employee/customer)

Data Sources


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