PAPER INFORMATION SYSTEMS AND BUSINESS STRATEGY

This paper focuses on Information Systems and Business Strategy.
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Strategic information systems, computer systems that are used to change the target level of the organization, operations, products, services, or environmental relationships to help organizations achieve competitive advantage.
The decision of the company's business strategy depends on:

Dhasilkan products and services company
Industry where firms compete
Competitors, suppliers, and customers of the company
The long term goal of the company

Business level strategy: Value Chain Model
The most common strategy for this level is:

be producing products with low production costs
differentiate their products and services
change the scope of the competition either by expanding the market to the global market and to narrow the market.

The value chain model, a model which focus on primary and support activities that add value to products and services in which the information system is best applied to gain a competitive advantage.
Yaituaktivitas primary activity is directly associated with the production and distribution of the company's products or services. While supporters of the activity is an activity that allows the execution of the primary activity. Consisting of organizational infrastructure, human resources, technology, and procurement.
Value refers to the web customer-controlled network to companies that use information technology to coordinate its value chain in order to collectively produce products or services to market.

Products and Services Information System
Systems that create product differentiation:

Companies can use IT to develop different products.
Creating brand loyalty by developing new and unique products and services
Products and services not easily duplicated by competitors. For example, Dell Corporation.

Systems that Support Niche Market
Intensive analysis using customer data to support new ways of contacting and serving customers that allows to develop new niche markets for specific products or services. For example, frequent guest program Wyndam Hotel

Supply Chain Management and Efficient Customer Response System
The system connects to the corporate value chain value chain of suppliers and consumers. Systems that directly connect back to the distributor of consumer behavior, production, and supply chain. Example: Wal-Mart customers to connect directly to the supplier purchase almost immediately. suppliers work to ensure the product is delivered to the store to replace the product purchased.

IT at the organizational level is used to avoid the shift of customers to other suppliers and bind them to the company. The replacement cost is the cost incurred by the customer or the company for the time and resources are wasted when switching from one supplier or system supplier or competitor systems. For example, Baxter International.

Corporate-level strategy and Information Technology
Extending the core competencies, the activities in which the firm excels as a world-class leader. Information systems encourage the sharing of knowledge across business units and therefore the company increased competence.

Industry-level strategy and Information Systems: competitive forces and economic networks. The company operates in the larger environment that consists of other companies, governments, and nations. Partnership information, cooperative alliances carried out by two or more companies that aim to share information to gain strategic advantage. Helping companies gain access to new customers, creating new opportunities for cross-selling and targeting products.

Porter's five forces model
In larger environments, there are five main force or threats:

New market entrants
Substitute products and services
Supplier
Customer
Other companies that compete directly

Competitive forces model, the model used directly to describe the interaction of external influences, specifically threats and opportunities that affect the organization's strategy and ability to compete. Internet technology has affected the structure of the industry by

Provide technology that enables competitors to compete in terms of price and new players in the market.
Improving the information available to customers on price preformance thus increasing the bargaining power on.
Lowering power supplier
Substitute goods

Business Ecosystem
IT plays a strong role in creating new forms of business ecosystem products. Business ecosystem is a network of suppliers, distributors, outsourcing firms, transportation service firms, and manufacturing technology are interrelated. For example, Microsoft: 1 billion PCs around the world and hundreds of thousands of businesses rely on the Microsoft platform. EBay: Millions of people and thousands of businesses using the company's platform. Wal-Mart: Enterprise systems used by suppliers to increase efficiency

Network Economics
IT products and services exhibit strong network effects and potentially create a situation of "winner take all". Tissue causes the cost to add another zero or few participants, otherwise the benefits could be even greater. Unlawful earnings decline in industrial and agricultural products. For example, the value of the Internet is growing exponentially with a linear increase in users. Because software can be certain standards (such as the Windows operating system or the Windows Office), people could be locked into the standard and value of Windows grow as more and more people are using it.

Good strategy, using IT to develop products and services that lead to network effects. Opportunity management, the Company is exposed to the development of IT-based opportunities to gain strategic advantage.

Management Challenges

Some companies face major hurdles in implementing contemporary systems.
Once profit is reached, there is difficulty in maintaining excellence.
Organizations often can not be changed to accommodate the new technology fast enough

Guidelines for Completion of a strategic systems analysis

Understanding the structure and dynamics of industry competition in which companies operate.
Understanding the business value chain, enterprise, and industrial
Consider how companies can manage "strategic shift" in an effort to implement systems that provide competitive advantage.