Strategic Role of Information System

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Objectives
-what is ‘strategy’
-six major types of IS in
organizations
-relationship between the types of
IS
-information as a strategic resource
-how IS support the three levels of
strategy
-issues in developing a strategic IS

What is Strategy?
- “Operational Effectiveness”means
performing similar activities betterthan
rivals do
- “Strategic Positioning”means
performing differentactivities from rivals
or performing similar activities in different
ways
- “Organizations have competitive
advantagewhen they provide more
value to their customers or when they
provide the same value to customers at
a lower price”

The Essence of Strategy
“The essence of strategy is
choosingto perform activities
differentlythan rivals do”

Areas of Agreement on Strategy

Strategy concerns both organization and
environment

- “A basic premise of thinking about strategy
concerns the inseparability of organization and
environment…the organization uses strategy to deal
with changing environments”
- The substance of strategy is complex
- “Because change brings novel combinations of
circumstances to the organization, the substance of
strategy remains unstructured, un-programmed, non-routine, and non-repetitive…” - Strategy affects overall welfare of the
organization
- “Strategic decisions are considered important
enough to affect the overall welfare of the
organization”
- Strategy involves issues of both content and
process
- “The study of strategy includes both the actions
taken, or the content of strategy, and the processes
by which actions are decided and implemented”
- Strategies are not purely deliberate
- “Theorists... Agree that intended, emergent, and
realized strategies may differ from one another”
- Strategies exist on different levels
- “…Firms have…corporate strategy (What business
shall we be in?) and business strategy (how shall we
compete in each business?)”
- Strategy involves thought processes
- “Strategy...
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