Strategic Advantage
             Only when SIS combine with 
             structural changes can they help 
             provide strategic advantage.
MIS/Ch 3: Strategic Inf Sys & Reengineering    09/06/22                                                3
                            The Role of IT
            IT creates applications that provide strategic advantages to companies
            IT is a competitive weapon
            IT supports strategic change, e.g,  re-engineering
            IT networks with business partners
            IT provides cost reduction
            IT provides competitive business intelligence
MIS/Ch 3: Strategic Inf Sys & Reengineering    09/06/22                                                4
                             Competitive 
                            Intelligence
                                      Such activities drive 
               Many                         business 
            companies                   performance by:                   The Internet 
            monitor the                                                    is central to 
                                         Increasing market                supporting 
            activities of                   knowledge                      competitive
           competitors                 
                                             Improving internal            intelligence
                                            relationships
                                       
                                             Raising the quality of   
                                            strategic planning
MIS/Ch 3: Strategic Inf Sys & Reengineering    09/06/22                                                5
            Competitive Advantage in 
                            the Web Economy
              Competitive                   Competitive                  Sustainable 
                Strategy                    Advantage                      Strategic 
                                                                         Advantage
              Search for a                   Look for a 
               competitive                  competitive              Maintain profitable 
            advantage in an            necessity, which will            & sustainable 
                                                                       position against 
             industry, which            help your company               the forces that 
           leads to control of           keep up with the            determine industry 
               the market.                  competitors.                 competition.
MIS/Ch 3: Strategic Inf Sys & Reengineering    09/06/22                                                6
               Competitive Advantage
              Techniques for competitive 
              achieving competitive advantage.
          •Build barriers to competition
          •Increase customer switching costs
          •Change the basis of competition
          •Change the nature or environment 
              of business
          •Optimize pricing strategy
MIS/Ch 3: Strategic Inf Sys & Reengineering    09/06/22                                                7