Toma de Decisiones

Sistemas de Información para
la Toma de Decisiones
Tema 3 - Capitulo 3
Strategic Information
Systems for Competitive
Advantage
1
Learning Objectives
!  Describe strategic information systems (SIS) and explain
their advantages.
!  Describe Porter’s competitive forces model & how IT helps

companies improve their competitive positions.
!  Describe Porter’s value chain model and its relationship to

information technology.
!  Describe several other frameworks that show how IT

supports the attainment of competitive advantage.
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 3 Diapositiva 2
Learning Objectives (cont.)
!  Describe and understand the role of web-based SIS and the
nature of competition in the digital age.
!  Describe global competition and its SIS framework.
!  Describe representative strategic information systems and the

advantage they provide to organizations.
!  Discuss implementation issues including possible failures of

SIS.
Case: Rosenbluth International
!  Rosenbluth Int., a global player in the travel agency industry, faced
threats due to the digital revolution.
!  They responded with 2 strategies:

(1) Withdrawal from the leisure travel business
(2) Implementation of web-based travel technology, such as:
DACODA A Globalization Network
Electronic Messaging Services Customer-Res
E-Ticket Tracking Solution IntelliCenters
Res-Monitor NOC
Lessons from the Case
" Need for exchange business models and strategies
" Importance of web-based IT
" Global competition over service is key
" Large investment over time
" Importance of networked infrastructure for global systems
" Web-based applications for superior customer service
" Need to patent innovative systems
Strategic Information Systems (SISs)
SISs provide strategic solutions to the 5 Business Pressures:
Elements of Strategic Management
1. Long Range Planning
2. Response Management
3. Proactive Innovation
- Information Technologies
The Role of IT
#  IT creates applications that provide strategic advantages to
companies
#  IT is a competitive weapon
#  IT supports strategic change, e.g, re-engineering
#  IT networks with business partners
#  IT provides cost reduction
#  IT provides competitive business intelligence
Competitive Intelligence
Such activities drive

Many business
performance by: The Internet
companies
is central to
monitor the
"  Increasing market supporting
activities of knowledge competitive
competitors "  Improving internal
intelligence
relationships
"  Raising the quality of
strategic planning
Competitive Advantage in the Web Economy
Competitive Competitive Sustainable

Strategy Advantage Strategic
Advantage
Search for a Look for a
Maintain profitable
competitive competitive & sustainable
advantage in an necessity, which will position against
industry, which help your company the forces that
leads to control of keep up with the determine industry
the market. competitors. competition.
CASE: McKesson Drug (www.Mckesson.com)
!  Whole Sale Drug Distributor
!  Economost (McKesson s Web-based service)
!  Allows for customers to phone, fax or e-mail orders.
!  Order is transferred to an IBM main frame, quick delivery to
pharmacies.
!  Significant benefits to customers.
!  Due to Economost, McKesson has survived the new economy,
revenues have escalated.
!  Early 2001, McKesson offered a suite of comprehensive Internet-
based applications.
Porter s 5 Competitive Forces
#  The threat of entry of new competitors.

#  The bargaining power of suppliers.
#  The bargaining power of customers (buyers).
#  The threat of substitute products or services.
#  The rivalry among existing firms in the industry.
Response Strategies
(Porter, 1985)
COST
LEADERSHIP DIFFERENTATION FOCUS
Providing products Being unique in the Selecting a niche

and/or services at market and
industry achieving
the lowest cost in
the industry. cost leadership
and/or
differentation.
Response Strategies
(added by Porter and others)
GROWTH IMPROVE INTERNAL

Increasing market share, acquiring EFFICIENCY
more customers or selling more To improve employee and customer
products satisfaction
ALLIANCES CRM
Working with business partners to Customer-oriented approaches, e.g.
create synergy & provide the customer is king (queen)
opportunities for growth
INNOVATION
Developing new products & services
Case: Trucking , IT & Cost Leadership
!  JB Hunt (www.jbhunt.com)
!  Uses web-based technology to:
!  trigger lowest possible fuel costs
!  notify customers of accurate fuel surcharge
!  provide an on-line proof of delivery
!  Roadway Express (www.roadway.com)

!  Uses IT technology to:
!  compare vendor s prices and related procurement expenses
!  monitor the exact location of trucks
Porter s Model in Action
Porter s Model in Action (cont.)
Step 1: The players in each force are listed.
Step 2: An analysis is made which relates

Porter s determining factors.
Step 3: A strategy is devised to defend against

these factors.
Step 4: Support information technologies are

employed.
CASE: Daimler Chrysler
Problem:
" In 1999, the company lost $US 2.6 Billion
" Chrysler s program with part suppliers was failing
Solution:
" Suppliers began using Lotus notes/ Damino
" Measurement reports to static HTML web pages
" E-procurement exchange at Convisint
Results:
" Chrysler saves billions
Porter s Value Chain Model
PRIMARY ACTIVITIES
!  In bound logistics (in puts)
!  Operations (manufacturing & testing) Supply
!  Outbound logistics (storage & distribution) Chain
!  Marketing & sales
!  Service
Porter s Value Chain Model
SUPPORT ACTIVITIES
!  Firm Infrastructure
!  Human Resources Management
!  Technology Development
!  Procurement
VALUE SYSTEM
!  A firm’s value chain is part of a larger stream of activities,
which Porter calls a “Value System”.
!  Includes the suppliers that provide the

necessary inputs AND their value chains.
!  Applies to both products & services, for any

organization, PUBLIC or PRIVATE.
!  Is the basis for the Supply Chain Management.
CASE: Frito Lay uses IT & the Value Chain
!  World s largest snack food producer and owner of Pepsi
products.
!  SIS System:
!  Integrates marketing, sales, manufacturing, logistics,
finance.
!  Provides managers with information about suppliers,
customers & competitors.
!  Enables employees to access valuable information.
!  Frito Lay s use of IT allows for an optimal functioning of the

value chain.
The Value Chain Model
!  The Value System Model is
used to:
!  Evaluate a company s
process and competencies.
!  Investigate whether adding
IT supports the value chain.
!  Enable managers to
assess the information
intensity and the role of IT.
Bakos & Treacy Framework
McFarlan s Portfolion Framework (1984)
For Analyzing Existing, Planned & Potential Information Systems
Strategic High Potential

e-procurement Intelligent data mining
electronic ticketing e-mail direct marketing
Agents’ management
Key Operational Support

Scheduling online Frequent flyer account tracking
Online parts ordering Online credit union
Maintenance online Training online
Wireless SMS information
Stages in Customer Resources Life Cycle (1-7)
(1) Establish Customer Requirements

(2) Specify Customer Requirements
(3) Select a source, match customer with a supplier
(4) Place an order
(5) Authorize and pay for goods & services
(6) Acquire goods or services
(7) Test & accept goods or services
Stages in Customer Resources Life Cycle (8-13)
(8) Integrate into and manage inventory

(9) Monitor use and behavior
(10) Upgrade if needed
(11) Provide maintenance
(12) Transfer or dispose of product or service
(13) Accounting for purchases
Web-based Strategic Information Systems (SISs)
!  Many of the SISs of the 70s - 90s were based on privately owned
networks, or organizational information systems (OISs).
!  EDI-based systems are of key importance.
!  SISs are changing the nature of competition.

!  In some cases, SIS renders traditional business procedures
obsolete.
!  E.g, Encyclopedia Britannia
CASE: Mobile Oil Moves to Web-based System
Problem:
!  Largest marketer of lubricants in the USA
!  In 1995, introduced EDI system
!  Used to place orders, submit invoices & exchange business documents
!  It was too expensive, too complex to use
Solution:
!  In 1997, moved to web-based extranet-supported B2B system
Results:
!  Reduced transaction cost from $45/order to $1.25
!  Fewer shortages, better customer service
!  decline in distributor administration costs
Examples of EDI/Internet-based SIS
(for individual Companies)
#  Electronic Auctions
#  Electronic Biddings
#  Buyer-Driven Commerce
#  Single Company Exchange
#  Direct Sales
Examples of EDI/Internet-based SIS
(for Groups of Companies)
#  Industry Consortiums
#  Horizontal Consortiums
#  Web-based Call Centers
#  Web-based Tracking Systems
#  Web-based Intelligent Agents
#  Web-based Cross Selling
#  Accessing knowledge via Intranets
Growth of Companies Operating in a Global
Environment
!  Fully Global or Multinational
Corporations
!  Companies that export or

import !  Companies with low cost
production facilities abroad
!  Companies facing
!  Small companies that can now
competitions of low labor cost
use EC to buy/sell
and high natural resources internationally
A Global Drivers Framework
(Ivers et al., 1993)
!  The success of companies doing business in a competitive
environment depends on the link between their information
systems AND their global business strategy.
!  This framework provides a tool for identifying the firm s

global business drivers.
!  Drivers look at the current and future needs, focusing on

worldwide implementation.
Examples of Who is Using SIS
Otis Elevator
Centralized call center, self diagnosing elevators’
malfunctions and maintenance analysis
Baxtar International
Terminals in customers’ hospitals
Merrill Lynch
Cash management accounts system
American Airlines
Computerized reservation system (SABRE)
CASE: Total Quality Management at FPL
!  Florida Power & Light → largest US utility company
!  Leader in implementing total quality management
!  Several successful SIS programs:
!  Generation Equipment Management System (GEMS)
Tracks electrical generators, saving $5 million/ yr.
!  20 different quality control applications
Reduced customer complaints by 50%
!  Trouble Call Management System
Reduced black out time from 70 to 48 min.
CASE: Geisinger Implements an Intranet
Problem:
!  As a result of mergers & acquisitions, Geisinger (a health
maintenance organization) had 40 different IT legacy systems
in need of an upgrade & integration.
Solution:
!  In 1993, Geisinger implemented an innovative Intranet: with the
following features:
!  Tel-a-Nurse
!  Clinical Management System
!  Human Resource Management
Results:
!  Geisinger reduced costs and unnecessary medical work.
CASE: Caltex Corporation
!  Major multinational company selling gasoline & petrol products.
!  In 2000, created a centralized e-purchasing corporate

exchange (www.caltex.com)
!  Suppliers build electronic catalogues with Ariba s software.

!  Many benefits to buyers and suppliers, particularly in Asia, Africa
& the Middle East.
!  System enables Caltex to successfully handle complex
multinational business environments.
CASE : Port of Singapore
Problem:
!  The Port of Singapore, the world s largest international port,
faced increased global competition.
Solution:
!  Implementation of Intelligent Systems
Results:
!  Reduction in Cycle Time
!  4 hours versus 16 - 20 hours in neighboring ports
!  Reduction in uploading/ loading time
!  30 sec. versus 4-5 min./ truck in neighboring ports
CASE: Volvo Speed Cars
Problem:
!  In comparison to global competitors, Volvo s cars were to
expensive, with a slow delivery time.
Solution:
!  Creation of global ISDN-based network
Result:
!  Reduction in delivery time from 12 - 16 weeks to 4 - 6 weeks for
customized cars.
!  Reduction in cost of doing business, along with the price of the
car.
CASE: Caterpiller Corporation
Problem:
!  This world leader in manufacturing of heavy machines faced
strong competition from Japanese companies.
Solution:
!  Computer-aided manufacturing and robots
!  Computerized inventory management
!  Supply chain web-based management
!  Global Intranet & EDI
!  Sensory Intelligent Agents attached to products.
Results:
!  CAT experienced such a high rate of success that their main
competitor was forced to shift its strategy.
CASE: Dun & Bradstreet (D & B)
Problem:
!  Clearing house that provides risk analysis & maintains database
of credit ratings.
!  Customers complained about long waiting periods and
inaccuracies.
Solution:
!  Implementation of Web-based expert system.
Results:
!  Response time reduced from 3 days to a few seconds
!  Credit ratings became more accurate.
SIS Implementation
!  Major Issues to be Considered:
!  Justification
!  Justifying SIS may be difficult due to the intengible nature of
their benefits.
!  Risks & Failures
!  The magnitude, complexity, continuous changes in
technology and business environment may result in failures.
!  Finding appropriate SIS
!  Identifying appropriate SIS is not a simple task.
Sustaining SIS & Strategic Advantage
!  A Major problem that companies face is how to sustain their
SIS competitive advantage.
!  3 Major approaches =
!  Create inward systems which are not visible to competitors.
!  Provide a comprehensive, innovative & expensive system that is

difficult to duplicate.
!  Combine SIS with structural changes. This would include

business processes, reengineering & organizational
transformation.
Managerial Issues
"  Implementing SIS Can Be
Risky.
The investment involved in
implementing Strategic Information
Systems (SIS) is high.
"  Strategic Information

Systems Requires Planning.
Planning for an SIS is a major
concern of organizations.
Managerial Issues (cont.)
"  Sustaining Competitive Advantage Is Challenging.
As companies become larger and more sophisticated, they develop
resources to duplicate the systems of their competitors quickly.
"  Ethical Issues.

Gaining competitive advantage through the use of IT may involve unethical
or even illegal actions.
Companies can use IT to monitor the activities of other companies and
may invade the privacy of individuals working there.

Toma de Decisiones

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Toma de Decisiones

Загружено:

Авторское право:

Доступные форматы

Sistemas de Información para

! Describe Porter’s competitive forces model & how IT helps

! Describe Porter’s value chain model and its relationship to

! Describe several other frameworks that show how IT

! Describe global competition and its SIS framework.

! Describe representative strategic information systems and the

! Discuss implementation issues including possible failures of

! They responded with 2 strategies:

1. Long Range Planning

# IT networks with business partners

# IT provides cost reduction

# IT provides competitive business intelligence

Such activities drive

Competitive Competitive Sustainable

# The threat of entry of new competitors.

Providing products Being unique in the Selecting a niche

GROWTH IMPROVE INTERNAL

! Roadway Express (www.roadway.com)

Step 2: An analysis is made which relates

Step 3: A strategy is devised to defend against

Step 4: Support information technologies are

! Includes the suppliers that provide the

! Applies to both products & services, for any

! Is the basis for the Supply Chain Management.

! Frito Lay s use of IT allows for an optimal functioning of the

Strategic High Potential

Key Operational Support

(1) Establish Customer Requirements

(8) Integrate into and manage inventory

! EDI-based systems are of key importance.

! SISs are changing the nature of competition.

# Single Company Exchange

! Companies that export or

! This framework provides a tool for identifying the firm s

! Drivers look at the current and future needs, focusing on

! In 2000, created a centralized e-purchasing corporate

! Suppliers build electronic catalogues with Ariba s software.

! Provide a comprehensive, innovative & expensive system that is

! Combine SIS with structural changes. This would include

" Strategic Information

" Ethical Issues.

Вам также может понравиться

!  Describe Porter’s competitive forces model & how IT helps

!  Describe Porter’s value chain model and its relationship to

!  Describe several other frameworks that show how IT

!  Describe global competition and its SIS framework.

!  Describe representative strategic information systems and the

!  Discuss implementation issues including possible failures of

!  They responded with 2 strategies:

#  IT networks with business partners

#  IT provides cost reduction

#  IT provides competitive business intelligence

#  The threat of entry of new competitors.

!  Roadway Express (www.roadway.com)

!  Includes the suppliers that provide the

!  Applies to both products & services, for any

!  Is the basis for the Supply Chain Management.

!  Frito Lay s use of IT allows for an optimal functioning of the

!  EDI-based systems are of key importance.

!  SISs are changing the nature of competition.

#  Single Company Exchange

!  Companies that export or

!  This framework provides a tool for identifying the firm s

!  Drivers look at the current and future needs, focusing on

!  In 2000, created a centralized e-purchasing corporate

!  Suppliers build electronic catalogues with Ariba s software.

!  Provide a comprehensive, innovative & expensive system that is

!  Combine SIS with structural changes. This would include

"  Strategic Information

"  Ethical Issues.