5/26/2019 How do the organizations use their strategic information systems for gaining competitive advantage

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How do the organizations use their strategic

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information systems for gaining competitive
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advantage
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BY DINESH THAKUR Category: Information System Planning
What is MIS Fundamental
Computer
A Strategic Information System can offer competitive Planning? Networking
advantage to an organization in the following ways: Structured
Discuss the Query (SQL)
1) Creating barriers to competitor’s entry: In this Java Script
need and
strategy, an organization uses information systems to provide HTML
products or services that are difficult to duplicate or that are objectives of
Language
Cascading
used to serve highly specialized markets. This prevents the MIS Planning
Style Sheet
entry of competitors as they find the cost for adopting a similar How do the C
strategy very high. Programming
C
organizations (Theory)
2) Generating databases to improve marketing: An Programming
use their Visual Basic
information system also provides companies an edge over their (Pratical)
strategic C++
competition by generating databases to improve their sales and
information Programming
marketing strategies. Such systems treat existing information Java
as a resource. For example, an organization may use its systems for Programming
Java Servlet
databases to monitor the purchase made by its customers, to gaining
identify different segments of the market, etc. Java Server
competitive Pages
3) ‘Locking in’ customers and suppliers: Another way of Computer
advantage Graphics
gaining competitive advantage is by locking in customers and Electronic
Role of
suppliers. In this concept, information systems are used to Commerce
System
Management
provide such advantages to a customer or a supplier, that it (MIS)
becomes difficult for them to switch over to a competitor. For Analyst Information
example, an organization may develop its information system System
Nolan Stage What is
and give many benefits to its customers, like reliable order MIS
Model for IS Structure
&
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5/26/2019 How do the organizations use their strategic information systems for gaining competitive advantage

filling, reduced transaction costs, increased management planning Classification

System
support and faster delivery service. Four Stage Design
Decision
4) Lowering the costs of the products: strategic Model of IS Making
System
information systems may also help organizations lower their
Planning Concepts
internal costs, allowing them to deliver products and services at System
Discuss in Approaches
a lower price than their competitors can provide. Thus such System
information systems can contribute to the survival and growth Detail the Analysis
Imp &
of the organization. For example, airlines use information Various
Evaluation
systems strategically to lower costs so that they may counter Information
Terminologies
competitor’s discount fares. Enabler
used in Data
5) Leveraging technology in the value chain: This Structures
Information Software
approach pinpoints specific activities in the business where Engineering
competitive strategies can be best applied and where System Digital
Electronics
information systems are likely to have a greater strategic Planning C#
impact. This model advocates that information technology can ERP - What Programming
Database
best be used to gain competitive advantages by identifying System
is ERP?
specific, critical leverage points.
Discuss the Advance
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Dinesh Thakur holds an B.SC (Computer Science),
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