Strategic Information Systems Notes
1. IT Management: IT Role, Effect and Types
(What can IT do, IT’s impact, different IS)
Role * Enabler of E-Business * Change Agent * Enabler of Globalization
Role of IT – Enabler of E-Business * Disintermediation
Elimination (by the online sources) of the traditional middleman the intermediary between the seller and the buyer (such as an agent, broker, or reseller), or between the source and the recipient of information (such as an agency, official, or gate keeper). * Reintermediation
Re-emergence of the traditional middleman the intermediary in new forms. For example, portals such as PetroChemNet bring buyers, sellers, traders, and distributors of chemicals together, and mediate as trusted third-parties between parties that are total strangers to one another. * Hypermediation * Infomediation
Role of IT – Change Agent * Dynamic Stability * Enable/inhibit incremental and radical changes
Role of IT – Enabler of Globalization * Expands business presence beyond borders * IT maintenance of Infrastructure and Technologies
Effect of IT on competition * Michael Porter’s industry and competitive analysis framework: 1) Industry Rivalry, 2) Potential New Entrant, 3) Threats of Substitute Products or Services, 4) Bargaining Power of Supplier, 5) Bargaining Power of Buyers * Build barriers to entry [P.72] * Switching costs [P.74] * Change the basis of competition, e.g. transformed business strategy [P.68] * Change the balance of power in supplier relationships [P.70] * Generate new products [P.75]
Effect of IT on Productivity * Tangible vs intangible benefits * Service vs manufacturing sections * Alignment of IT to strategic goals
Effect of IT on Business Performance [P.108] * Drive cost savings [P.106] * Revenue growth [P.109] * Asset efficiency [P.112]
Types of Business Information Systems * Transaction Processing Systems * Management Information
(What can IT do, IT’s impact, different IS)
Role * Enabler of E-Business * Change Agent * Enabler of Globalization
Role of IT – Enabler of E-Business * Disintermediation
Elimination (by the online sources) of the traditional middleman the intermediary between the seller and the buyer (such as an agent, broker, or reseller), or between the source and the recipient of information (such as an agency, official, or gate keeper). * Reintermediation
Re-emergence of the traditional middleman the intermediary in new forms. For example, portals such as PetroChemNet bring buyers, sellers, traders, and distributors of chemicals together, and mediate as trusted third-parties between parties that are total strangers to one another. * Hypermediation * Infomediation
Role of IT – Change Agent * Dynamic Stability * Enable/inhibit incremental and radical changes
Role of IT – Enabler of Globalization * Expands business presence beyond borders * IT maintenance of Infrastructure and Technologies
Effect of IT on competition * Michael Porter’s industry and competitive analysis framework: 1) Industry Rivalry, 2) Potential New Entrant, 3) Threats of Substitute Products or Services, 4) Bargaining Power of Supplier, 5) Bargaining Power of Buyers * Build barriers to entry [P.72] * Switching costs [P.74] * Change the basis of competition, e.g. transformed business strategy [P.68] * Change the balance of power in supplier relationships [P.70] * Generate new products [P.75]
Effect of IT on Productivity * Tangible vs intangible benefits * Service vs manufacturing sections * Alignment of IT to strategic goals
Effect of IT on Business Performance [P.108] * Drive cost savings [P.106] * Revenue growth [P.109] * Asset efficiency [P.112]
Types of Business Information Systems * Transaction Processing Systems * Management Information