1.

Describe Strategic Information Systems and Explain their

Advantages?

Strategic Information Systems is a system that organizations

totally depends on. A systems that has very impact on organization
business processes, operation, and the bottom line. Internally
focused or externally focused and can be applied within the
organization or across the organization. SIS Characterized by its
ability to significantly change the manner in which business is
done. It can also change the goal, processes, products, or
environmental relationships to help an organization gain a
competitive advantage.

An organization competitive strategy is the search of a competitive

advantage in an industry cost, quality, or speed. According to
(Porter, 1985) A competitive strategy 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.
A strategic information system helps an organization gain a
competitive advantage through its contribution to the strategic
goals of an organization and/or its ability to significantly increase
performance and productivity.

An SIS enables companies to gain competitive advantage and to

benefit greatly at the expense of those that are subject to
competitive disadvantage.The benefits under strategic analysis will
support the organization to raise its efficiency, effectiveness and
performance to the highest level.

On the other hand, the benefits under both alignment and

competitiveness will support the organization to achieve the
sustainable advantages. The following are the main features and
benefits of strategic information systems under each classification:
1) Strategic analysis (support decision-making process, increase
organizational efficiency and effectiveness, support different
organizational levels, increase productivity of employees, support
coordination of work, increase quality, reduce costs, support
reactions to change and create new strategic opportunities).
2) Competitiveness (develop/produce new product/services, obtain
competitive advantages, increase organizational competitiveness,
support innovation and improve market share).
3) Alignment focus (integrate IS strategic plan into business
strategic plan, consolidate the operations by integrating distributed
systems, create standards, improve knowledge and improve
resource creativity and flexibility)

2. Describe  at least 5 strategies companies can use to

achieve competitive advantage in their industry.

There are 12 listed strategies that companies can use to achieve

competitive advantage one of these are cost leadership strategy.
Cost leadership strategy is are used by the firm to to increase
efficiencies and reduce production costs below the industry
average or their closest competitor to increase efficiencies and
reduce production costs below the industry average or their closest
competitor.The profitability of cost leaders gives them room to
innovate, manoeuvre, and survive as compared to their lower-
margin competitors, especially in price centred industries. WalMart
is an example of this concept. They have made their operations so
efficient and built such a large distribution network that they are
able to get preferential pricing on goods and sell them to
consumers for less than other retailers.This concept is just as
prevalent in the manufacturing industry where firms develop new
operations to cut costs in an effort to lower prices for their
customers.

Differentiation Strategy are used by the firm to compete with

uniqueness of the product rather than the cost or price. It entails
development of a product or service, that is unique for the
customers, in terms of product design, features, brand image,
quality, or customer service. Differentiation is the way to fruitful
advertising, contending, and fabricating your reasonable upper
hand. An unrivaled item or administration makes no difference
without a method of some way or another telling your imminent
clients about it. Your distinction can be any client advantage that
isolates you from your rivals. Differentiation relies on the concept
that customers will pay more for an item if they perceive that it is
different and if the basic for the difference is valued by the
customer. Differentiation involves achieving competitive advantage
through pinpointing product or service attributes that customers
perceive as valuable and positioning the firm to meet those
demands betters than the competition.
When we talk about differentiation, Apple is one of the brands that
will most often come to our mind. Started in 1976 by Steve Jobs,
Ronald Wayne, and Steve Wozniak, the company has had an
unquestionable impact on the consumer electronics and computer
software industry. Through their uniqueness of product design,
operating system and pricing strategy makes them a highly
demand in a society.

An Alliance Strategy is a game plan between two organizations

to embrace a commonly useful task while each holds its freedom.
The understanding is less mind boggling and less restricting than a
joint endeavor, wherein two organizations pool assets to make a
different business element. A company may enter into a strategic
alliance to expand into a new market, improve its product line, or
develop an edge over a competitor. The arrangement allows two
businesses to work toward a common goal that will benefit both.

Example of a firm uses alliance strategy are the Uber's

association with Spotify lets Uber riders effectively stream their
Spotify playlists at whatever point they take a ride. This causes the
Uber experience to feel more customized, and urges Uber riders to
prefer Spotify Premium (for more control of their tunes both inside
and outside Uber).
Uber's adversaries don't have a comparative customized music
experience, so this gives the ride share Goliath an upper hand
over Lyft and other comparable administrations. What's more,
since not all Uber riders have Spotify, and not all Spotify clients
ride with Uber, the two brands get to new, expansive crowds
around here partnership.

Innovation Strategy plays a huge role in how products are

created. An innovation strategy is a plan used by a company to
encourage advancements in technology or services, usually by
investing money in research and development activities.
An innovation strategy is essential for companies that want to gain
competitive advantage. An effective innovation strategy should be
inspiring and add something unique to the product or service being
developed. As a company, you want to increase the value of a
current product or create something brand new that will draw the
consumer in.
Innovation should push boundaries and be out of the ordinary.
When thinking about innovation, it's impossible not to think about
Apple. Apple has created and continues to create unique products
with tremendous success. The iPhone, iPad, and iWatch have all
been innovative products. Although smaller companies may not
have Apple's global success, the beauty of innovation is that you
never know what might happen with a product and the success it
can bring your company.

Customer orientation is a business strategy in the lean business

model that requires management and employees to focus on the
changing wants and needs of its customers. In other words, it’s a
company-wide philosophy that the customer’s wants and needs
are the first priority of all management and employees. Most
present day organizations have progressed to a more client
arranged way to deal with item plan, improvement, and
showcasing methodology, yet an organization that genuinely
accepts this thought changes it's whole activities to fit customer
needs.
As we can see, consumers’ wants and needs are always
changing. A company with a customer orientation focuses on what
it can do to accommodate these changing needs and even try to
anticipate them in the future. For example, Apple realized that the
tablet market would be huge. Consumers wanted a tablet, but they
weren’t satisfied with the current market selection. After listening to
what people wanted, Apple introduced the iPad.

Switching costs are a way to increase the value of your own

product, service, and brand experience as a whole. By giving your
customers a little extra, you're giving them something to lose if
they switch, but also something to love if they stay. This mindset
can help build genuine customer relationships.Although most
prevalent switching costs are monetary in nature, there are also
psychological, effort-based, and time-based switching costs.
Envision you have a Windows PC, and have been utilizing
Windows for the vast majority of your time. You know about the
item and the working framework. Assuming you unexpectedly
choose to change to a Macbook PC, you will see that it is
something else altogether framework.
3. Describe Porter's value chain model and its relationship to
information technology.

A value chain is a plan of action that portrays the full scope of

exercises expected to make an item or administration. For
organizations that produce merchandise, a worth chain contains
the means that include carrying an item from origination to
appropriation, and everything in the middle—like obtaining
unrefined substances, fabricating capacities, and advertising
exercises. An organization conducts a value chain analysis by
assessing the itemized methodology engaged with each
progression of its business. The reason for a worth chain
investigation is to build creation proficiency so an organization can
convey most extreme incentive for the most implausible expense.
The value chain model identifies specific, critical leverage points
where a firm can use information technology most effectively to
enhance its competitive position. This model views the firm as a
series or chain of basic activities that add a margin of value to a
firm’s products or services. These activities can be categorized as
either primary activities or support activities.

An information system could have a strategic impact if it helps the

firm provide products or services at a lower cost than competitors
or if it provides products and services at the same cost as
competitors but with greater value. The value activities that add the
most value to products and services depend on the features of
each particular firm.

The firm’s value chain can be linked to the value chains of its other
partners, including suppliers, distributors, and customers. A firm
can achieve a strategic advantage over competitors using
information systems not only by improving its internal value chain,
but also by developing highly efficient ties to its industry partners—
such as suppliers, logistics firms, and distributors—and their value
chains. Porter’s value chain model can be used to identify areas in
which IT can provide strategic advantage.

A value system includes the suppliers that provide the inputs

necessary to the firm and their value chains. Once the firm creates
products, they pass through the value chains of distributors (which
also have their own value chains), all the way to the buyers
(customers). All parts of these chains are included in the value
system. Gaining and sustaining a competitive advantage, and
supporting that advantage by means of IT, requires an
understanding of this entire value system.

The value chain model can be used in different ways. First, we can
use it to do company analysis, by systematically evaluating a
company’s key processes and core competencies. To do so, we
first determine strengths and weaknesses of performing the
activities and the values added by each activity. The activities that
add more value are those that might provide strategic advantage.
Then we investigate whether by adding IT the company can get
even greater added value and where in the chain its use is most
appropriate. For example, Caterpillar uses EDI to add value to its
inbound and outbound activities; it uses its intranet to boost
customer service.