INFORMATION

TECHNOLOGY
for
STRATEGIC ADVANTAGE
SRIDHAR S - 09PBA152
PRINCELY BENJAMIN -
09PBA153
SATHIS - 09PBA154
Slide 2-13 : sridhar(09pba152)
Slide 14-20: sathish(09pba154)
Slide 21-26: princlely(09pba153)
 Strategic IT
• Information systems that support
business operations, workgroups and
enterprise collaboration or effective
business decision making.
• Helps company adopt strategies and
business processes that enable it to
reengineer or reinvent itself.
COMPETITIVE STRATEGY
CONCEPTS
• Strategic information architecture
“The collection of strategic information system that
supports or shape the competitive position and
strategies of a business enterprise”
• Strategic information system
“information system that uses information technology
to help an organization gain a competitive advantage or
meet other strategic enterprise objectives.
Competitive Forces and
Strategies

Bargaining power of customers

Cost leadership strategy

Bargaining power of suppliers

Threat of new entrants
rivalry of competitors

Threat of substitutes
Differentiation strategy

Innovation strategy

Growth strategies

Alliance strategies

Other competitive strategies

Competitive Forces and
Strategies

Bargaining power of customers

Cost leadership strategy

Bargaining power of suppliers

Threat of new entrants
rivalry of competitors

Threat of substitutes
Differentiation strategy
•Low-cost producer
•Help its customer/suppliers
Innovation strategy reduce
their cost
Growth strategies

Alliance strategies

Other competitive strategies

Competitive Forces and
Strategies

Bargaining power of customers

Cost leadership strategy

Bargaining power of suppliers

Threat of new entrants
rivalry of competitors

Threat of substitutes
Differentiation strategy

Innovation strategy
•Differentiate product/services from
Growth strategies
their competitors.
•Focus its products or services to
give itAlliance
an advantage
strategies in particular
segments of niches.
Other competitive strategies
Competitive Forces and
Strategies

Bargaining power of customers

Cost leadership strategy

Bargaining power of suppliers

Threat of new entrants
rivalry of competitors

Threat of substitutes
Differentiation strategy

Innovation strategy

Growth strategies
New ways of doing business.
Development of unique products/services
Alliance strategies
Entry into unique markets or niches
Making changes to the business process
forOther
producing or distributing products and
competitive strategies
services
Competitive Forces and
Strategies
Expanding company’s capacity to
produce goods and services
Expanding into global
strategymarkets

Bargaining power of customers

Cost leadership

Bargaining power of suppliers

Diversifying into new products and
services

Threat of new entrants

rivalry of competitors

Threat of substitutes
Integrating into related
Differentiation strategy products
and services.
Innovation strategy

Growth strategies

Alliance strategies

Other competitive strategies

 Establishing new business linkages
Competitive Forces and
and alliances with customers,
suppliers, competitors, consultants
Strategies
and other companies.
These linkages may include
mergers,
Costacquisitions, joint

Bargaining power of customers

leadership strategy

Bargaining power of suppliers

ventures, forming of virtual

Threat of new entrants

rivalry of competitors

Threat of substitutes
companies or otherstrategy
Differentiation marketing,
manufacturing, or distribution
agreements between
Innovation a
strategy
business/trading partners.
Growth strategies

Alliance strategies

Other competitive strategies

Competitive Forces and
Strategies

Bargaining power of customers

Cost leadership strategy

Bargaining power of suppliers

Threat of new entrants
rivalry of competitors

Threat of substitutes
Differentiation
•Lock in customers strategy
and suppliers
•Building switching costs
•RaisingInnovation strategy
entry barriers
•Leveraging investment in
Growth strategies
information
technology
Alliance strategies

Other competitive strategies

 BUILDING A CUSTOMER-
FOCUSED BUSINESS
Ability to help them keep customers loyal,
anticipate their future needs, respond to
customer concerns, and provide top-quality
customer service.

Supporting information technologies:

CRM
internet
intranet
extranet
 VALUE CHAIN
Administrative coordination and support
services
Collaborative workflow intranet
HRM
Employee benefit intranet
Technology development
Product development extranet with partners
Procurement of resources
E-commerce WEB portal for suppliers Competitive
Outboun
d advantage
Inbound logistic Marketi
logistics Operatio ng and
s
ns
sales
Online
Computer
Automate point-
aided Targete
d just-in- flexible of-sale
time
d
manufact &
warehous uring Order marketi
ing proces ng
sing
Over to sathish - 09pba154
 Re-engineering business
process
• Reengineering is a fundamental rethinking and
radical redesign of business processes to achieve
dramatic improvements in cost, quality, speed,
and service.
• BPR( Business Process Reengineering ) combines
a strategy of promoting business innovation with
a strategy of making major improvements to
business processes so that a company an
become a much stronger and more successful
competitor in the marketplace.
 Business Improvement vs.
BPR
BUSINESS BPR
IMPROVEMENTS
LEVEL OF CHANGE Incremental Radical
PROCESS CHANGE Improved new version Brand new process
of process
STARTING POINT Existing processes Clean slate
FREQUENCY OF One-time or continuous Periodic one-time
CHANGE change
TIME REQUIRED Short Long
TYPICAL SCOPE Narrow, within functions Broad, cross functional

HORIZON Past and present Future

PARTICIPATION Bottom-up top-down
PATCH TO EXECUTION Cultural Cultural, structural
PRIMARY ENABLER Statistical control Information technology
 ROLE of IT in BPR

sales manufacturin finance logistics

g
 Agile company
• AGILITY is business performance is
the ability of a company to prosper in
rapidly changing, continually
fragmenting global markets for high-
quality, high-performance, customer-
configured products and services.
Type of agility Description Role of IT Example
eBay customers
Technologies for are its de facto
Ability to co- building and product
operate customer enhancing virtual development
in the customer team because
Customer exploitation of communities for they post an
innovation product design, average of 10000
opportunities feedback, and messages each
testing week to share
tips, point out
glitches, and
lobby for
changes.
Type of agility Description Role of IT Example

Ability to Technologies Yahoo! Has

leverage assets, facilitating accomplished a
knowledge, and interfirm significant
competencies of collaboration, transformation of
PARTNERING suppliers, such as its service from a
distributors, collaborative search engine
contract platforms and into a portal by
manufacturers, portals, supply- initiating
and logistics chain systems, numerous
providers etc., partnerships
Type of agility Description Role of IT Example
Ingram Micro, a
Ability to global
accomplish Technologies for wholesaler, has
speed, accuracy, modularization deployed an
Operational and cost and integration ofintegrated
economy in the business trading system
exploitation of processes allowing its
innovation customers and
opportunities suppliers to
connect directly
to its
procurement and
ERP systems.
Over to princely benjamin - 09pba153
 STRATEGIC ADVANTAGES OF
USING IT
• Creating a Virtual company.

• Building a knowledge creating

company.
 CREATING A VIRTUAL
COMPANY

Extrane Engineering
t Intranet Team

Allianc Alliance
e with with
supplie Custom
Customer Cross-
r er
Response functional
team team
 BUILDING A KNOWLEDGE
CREATING COMPANY
• Learning organization.
• Two kinds of knowledge:
 Explicit
 TACIT
KNOWLEDGE MANAGEMENT
SYSTEM
Interact with
experts

New content
creation

Assessing
and
retrieving
document