Strategic Role of Information System
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
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