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Are your business information systems and technology merely a means of support for increased operational efficiency and effective decision support for management?

Whilst exploiting technology and systems for these ends is admirable, how much more valuable would it be if the same investment also contributed to your company’s strategic advantage over competitors?

Strategic information systems are those that support and influence the competitive position of a business in its global market.

A powerful conceptual framework for identifying competitive strategies is based on a model of Competitive Forces* that must be addressed to achieve the long term survival and success of an enterprise - see diagram below.

Diagram of Five competitive forces

The competitive strategies
needed to counter these five forces may be classified as:
  • Cost reduction
  • Differentiation
  • Innovation
  • Growth
  • Alliance
Examples of Strategic Information Systems which might support these competitive strategies could include the application of IT to:
  • reduce the cost of a business process
  • introduce new features which differentiate products or services
  • create barriers to entry for new suppliers or switching costs for new suppliers
  • radically change (re-engineer) business processes
  • diversify or manage business expansion
  • create ‘virtual organisations’ in partnership with customers/suppliers
* Michael E Porter developed the concepts of the ‘Five Forces’ and the ‘Value Chain’ for helping managers identify opportunities for strategic information systems: Click here for a review of his best selling business book, Competitive Advantage ..., published in 1985
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