INFORMATION SYSTEMS FOR COMPETITIVE

ADVANTAGE
JAMALUDDIN, BASTHONY SANTRI
OBJECTIVE

 Understand the Information System in automation, organizational

learning, and strategic support
 Understand Information System for strategic organizational success
 Understand the need for making an Information System business
case
 Understand technological innovations to improve competitive
advantage
WHY USE INFORMATION SYSTEM
Automating
(Doing Things Faster)
1. Technology is used to
automate a manual process
(Doing Things Faster and
Greater Accuracy and
Consistency)
2. Loan Application Example
(Manual processing, technology
supported process, completely
automated)
Organizational
Learning:
Doing Things Better
1. Going Beyond Automation
(Involves learning to improve
the day-to-day activities within
the process & looking at
patterns and trends)
2. Organizational Learning
(Using acquired knowledge and
insights to improve
organizational behavior)
3. Total Quality Management
(Monitoring an organization to
improve quality of operations,
products, and services)
Supporting
Strategy:
Doing Things Smarter
Strategic Planning
1. Create a vision : setting the
direction
2. Create a standard :
Performance targets
3. Create a strategy: reaching
the goal
TYPE OF COMPETITIVE ADVANTAGE

LOW COST DIFFERENTIATION BEST COST

LEADERSHIP PROVIDER
INFORMATION SYSTEM FOR COMPETITIVE ADVANTAGE

1. A Clear Strategy is Essential

2. Source of Competitive Advantage
• Best Made Product
• Superior Customer Service
• Lower Cost
• Superior Manufacturing Technology
• Shorted Lead Times
• Well Known Brand Name
• High Value per Cost
3. Information System and Value Chain Analysis
• Value Chain Analysis (Adding Value Within Organization)
• Organization as Big Put/Output Processes
• Information System can automate many Value Chain Activities
ORGANIZATIONAL VALUE CHAIN
INFORMATION SYSTEM FOR COMPETITIVE ADVANTAGE

1. The Role of Information System in Value Chain Analysis

2. Information System competitive advantage in Value Chain Analysis:
 Internet link with suppliers, dealers (Extranets: using the Internet for B2B interactions)
 Computer-aided manufacturing systems
 Web site with online product ordering
 Customer service response system
 Computer-aided design

3. The Technology/Strategy Fit

 An IS implementation should create a significant organizational change consistent with the
business strategy (Business Process Reengineering)
MAKING THE BUSINESS CASE FOR A SYSTEM
Productivity Paradox (How To
Quantify Gains?)
 Measurements Problems
 End Users Development
 Decision Support System
 Strategic System
 Time Lag
 Redistribution
 Mismanagement
Making a Successful Business
Case
 Arguments Based on Faith
 Arguments Based on Fear
Ex : Industry Factor, Stage of Maturity,
Regulation, Nature of Competition of
Rivalry
 Arguments Based on Facts (Cost Benefit
Analysis for a web based System)
Ex : Recurring/nonrecurring cost,
Tangible/Intangible Cost &
Tangible/Intangible Benefit.
COMPETITIVE ADVANTAGE IN BEING AT THE CUTTING
EDGE
 Deploying new technologies faster, better, and cheaper than
competitors
 Using new technology in innovative ways
 The Need for Constant Information System Innovation
 On the lookout for new technologies that impact business
 E-Business Innovation Cycle
 Implication of E-Business Innovation Cycle
 Terms and Concept (E-commerce, E-Business, Enabling
Technologies, Economic Opportunities)
REQUIREMENTS FOR BEING AT THE CUTTING EDGE

1. Consider Porter’s competitive forces

2. To deploy emerging systems well:
 Organization must adapt well to
change
 Human capital available for
deployment (knowledge, time, skills)
 Tolerance of risk and uncertainty
THANKYOU
BY :
1. JAMALUDDIN
2. BASTONY SANTRI

MAGISTER MANAJEMEN
UNIVERSITAS SRIWIJAYA