Strategic Information System
Content Page 1. Introduction 2
1.1 Background 2 2. Companies using IS/IT to gain competitive advantages 2
2.1 Cigna HealthCare CRM System 2
2.2 Bank of America – MasterNet System 2
2.3 American Airlines – Knowledge Management System 2
2.4 Wal-Mart – Point-of-Sale System 2
2.5 Lesson Learned and Success Factors 2 3. Discussion 2 4. Conclusion 2
1. Introduction
Given the rise of competition in the modern business industry, it is essential for firms to apply strategic use of information system (IS) to achieve competitive advantage (CA).
In the recent years, top management of firms have little interest in the relationship between IS functions and corporate strategy leading to many problems because of failure in achieving strategies. According to Holsapple (2000), modern organizations are increasingly seen as knowledge-based enterprises in which proactive knowledge management is important for competitiveness. One of the major factors in competitive environment is knowledge management and companies for achieving the competitive advantage should concentrate in its IS.
IS plays an important role in business operations as well as financial and non-financial aspects of the firm such as decision making as a big role of management. There has a growing realization to make ISs of strategic importance to an organization in the 80’s and 90’s. Systems that shape or support business unit’s competitive strategy are known as Strategic IS (Callon 1996, an Neumann 1994). According to Turban et al (2006), SIS is the ability to significantly change the manner in which business is conducted in order to give the firm strategic advantage.
Porter (1996) believes that competitive advantage is at the core of a firm success or failure, such advantage seeks lead to control the market and to larger-than-average profits.
This research paper provides information on how organizations apply strategic use of IS/It to achieve competitive advantage over its
1.1 Background 2 2. Companies using IS/IT to gain competitive advantages 2
2.1 Cigna HealthCare CRM System 2
2.2 Bank of America – MasterNet System 2
2.3 American Airlines – Knowledge Management System 2
2.4 Wal-Mart – Point-of-Sale System 2
2.5 Lesson Learned and Success Factors 2 3. Discussion 2 4. Conclusion 2
1. Introduction
Given the rise of competition in the modern business industry, it is essential for firms to apply strategic use of information system (IS) to achieve competitive advantage (CA).
In the recent years, top management of firms have little interest in the relationship between IS functions and corporate strategy leading to many problems because of failure in achieving strategies. According to Holsapple (2000), modern organizations are increasingly seen as knowledge-based enterprises in which proactive knowledge management is important for competitiveness. One of the major factors in competitive environment is knowledge management and companies for achieving the competitive advantage should concentrate in its IS.
IS plays an important role in business operations as well as financial and non-financial aspects of the firm such as decision making as a big role of management. There has a growing realization to make ISs of strategic importance to an organization in the 80’s and 90’s. Systems that shape or support business unit’s competitive strategy are known as Strategic IS (Callon 1996, an Neumann 1994). According to Turban et al (2006), SIS is the ability to significantly change the manner in which business is conducted in order to give the firm strategic advantage.
Porter (1996) believes that competitive advantage is at the core of a firm success or failure, such advantage seeks lead to control the market and to larger-than-average profits.
This research paper provides information on how organizations apply strategic use of IS/It to achieve competitive advantage over its