University:
California State University, Los Angeles
Course:
CIS 1200 | Information and Technology Literacy
Academic year:

2024
Views:

254

Pages:

1
Author:

Jithin J. I.

USING IT FOR CREATING STRATEGIC ADVANTAGE FOR BUSINESS What is competitive strategy? It is a broad-based formula for how a business is going to compete, what its goals should be, and what plans and policies will be required to carry out those goals. What is strategic role of information systems? It involves using information technology to develop products, services, and capabilities that give a company major advantage over the competitive forces it faces in the global marketplace. A strategic information system can be any kind of information system (e.g., TPS, MIS, and DSS) that uses information technology to help an organization gain a competitive advantage, reduce a competitive disadvantage, or meet other strategic enterprise objectives. - There are many strategic initiatives available to firm in addition to the 5 basic strategies of cost leadership, differentiation, innovation, growth, and alliance. - Locking in customers or suppliers: investments in information technology can allow a business to lock in customers and suppliers (and lock out competitors) by building valuable new relationships with them. - Building switching costs: it emphasis in strategic information systems has been to find ways to create switching costs in the relationships between a firm and its customers or suppliers. - Leveraging investment in information technology: investing in information technology enables a firm to build strategic IT capabilities so that they can take advantage of opportunities when they arise.