Universidad Autónoma de Tamaulipas

FCAV – Maestría en Dirección Empresarial

STRATEGIC SYSTEMS FOR

COMPETITIVE ADVANTAGE

EQUIPO 1 BIOREHB
Valeria Sevilla Salazar Teacher:
José Adrián Pérez Andrade
Blanca Rosio Macias Linares Mtro. José Iván Lara Treviño
 STRATEGIC
INFORMATION AND
COMPETITIVE
ADVANTAGE

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 Information systems aligned with
the company's objectives

● STRATEGIC INFORMATION
SYSTEMS:
Computer systems at any level that
change goals, operations, products,
services or relationships with the
environment that help the company to
obtain a competitive advantage

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 IT Strategy and the Strategic Planning Process

An effective business strategy needs a IT for work well.

Two of the biggest risks and concerns of top management are
1.-failing to align IT to real business needs and,as a result,
2.- failing to deliver value to the business.

IT STRATEGIES SUPPORT THE BUSINESS STRATEGY GLOBAL

1. Improve management’s understanding of COMPETITION
The four main points of IT strategic plans are to:
IT opportunities and
limitations
2. Assess current performance AND
3. Identify capacity and human resource requirements
4. Clarify the level of investment requiredINFORMATION
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 IT strategies fall into two principal
categories:
1. In-house development
2. Sourcing

IT AND BUSINESS STRATEGY

DISCONNECTS
• Only 33 percent of business
leaders is very involved in the
process of developing business
strategy.
• Only 30 percent reported that the
business executive works closely
with the IT
• When the IT strategy is not
aligned with the business strategies,
there is a high risk that the IT
project will be abandoned before
completion.
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GLOBAL
IT–business alignment includes two facets.
1. One facet is aligning the IT function’s
strategy, structure, technology, and processes
with thoseCOMPETITION
of the business units so that IT and
business units are working toward the same
goals.
AND
2. Another type of alignment, referred to as IT
INFORMATION
strategic alignment, involves aligning IT
strategy with organizational strategy
.
 IT STRATEGIC PLANNING
PROCESS
CIOs work on IT strategic planning
yearly, quarterly, or monthly .A
good IT planning process helps
ensure that IT aligns, and stays
aligned, within an organization’s
business strategy. Because
organizational goals change over
time, it sufficient to develop a
long-term IT strategy and not GLOBAL
Tools and Methodologies of IT
reexamine Strategic Planning.
COMPETITION
-Business Service Management.
-Business Systems Planning Model.
AND
-Balanced Scorecard.
-Critical Success Factors Model.
INFORMATION
-Scenario Planning.
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 Aligning IT with
Business Strategy
IT–business alignment can be
improved by focusing on the
following activities:
1. Understanding IT and
corporate planning.
2. CIO is a member of senior
management.
3. Shared culture and good GLOBAL
communication.
4. Commitment to IT planning COMPETITION
by senior management.
5. Multi-level links. AND
INFORMATION
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 COMPETITIVE ADVANTAGE

To understand the relationship of IT

in providing a competitive
advantage, we next consider the
potential of a firm’s IT resources to
add value to a company. Three
characteristics of resources give
firms the potential to create a
competitive advantage:
1. Value.
GLOBAL
2. Rarity.
3. Appropriability. COMPETITION
AND
INFORMATION
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● The main objective of these
information systems for the
organizations is to increase the
competitive strategy of any
company to improve its services or
products from its competitors. But
principally all the systems, help run
any business to establish
improvements.

● Competitive advantage is
understood as that characteristic that
makes a company different from
other competitors, placing it in the
top position in the market.
 INFORMATION SYSTEMS STRATEGIES TO
CONFRONT WITH COMPETITIVE FORCES

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LOW COST LEADERSHIP

Use information systems to obtain

the lowest operational costs and
the lowest prices. We can mention
H&M , VOLARIS, and XIAOMI
By keeping prices low and using
marketing efficienty, these
companies are in people
preferences.

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PRODUCT THAT MAKE THE DIFFERENCE

● Differentiation strategy
● The company that uses
differentiation as a strategy
seeks that the product or
service offered by the company
be perceived as unique in the
market. In this way customers
are willing to pay more for this
product. And the information
systems must be focused in
what company need.
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 OBJECTIVES ON NICHE MARKETS

Niche strategy is a unique

marketing strategy which
focuses on selling or
promoting a unique and
specialized product or service
to a small but productive
target group.

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 N
-Information systems allow companies to analyze customer buying I
patterns, tastes, and preferences so closely that they can efficiently
target advertising and marketing campaigns to ever smaller markets. C
With customer relationship management (CRM) H
*Advantages:
● -Thanks to digital technologies it is easy to build this type of strategy E
and exploit it.
● -Address customers in the most personalized way, you get their
loyalty. M
● -In most cases, you will require little effort. Because they are small
market sectors, you will find yourself with less competition. A
● -No big marketing efforts are needed. R
Disadvantages are that this type of strategy is not profitable in most K
of the niches (for this reason you will need a good study); plus they
can also be ephemeral.
E
T
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S
 GLOBAL
COMPETITION
AND
INFORMATION GLOBAL
COMPETITION
AND
INFORMATION
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 Information systems have become
comprehensive online and interactive tools,
highly involved in minute-by-minute operations
and in the decision-making process of large
organizations. During the last decade,
information systems have fundamentally altered
the economy of organizations, in addition to
considerably increasing the possibilities of
ordering work.

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 ECONOMIC IMPACTS
Information systems technology can be seen as a
factor of production substitutable for traditional
capital and labor. As the cost of information
technology declines, labor is replaced, which

HIGH VALUE 1
throughout history has been a rising cost. Thus,
information technology should lead to a reduction in
the number of mid-level managers and office
workers, as information technology replaces their
workforce.

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 TRANSACTION COST THEORY
Companies and individuals seek to economize in terms of
transaction costs, as well as production costs. Information
technology, especially the use of networks, can help
companies reduce the transaction cost of market
participation (transaction costs), which makes it
worthwhile for companies that contract with suppliers.
instead of using internal resources. As transaction costs
fall, the size of the company (the number of employees)
should decrease because it is easier and cheaper for the
company to contract the purchase of goods and services in
the market, instead of manufacturing the product or offer
the service on your own.

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 ORGANIZACIONAL AND
BEHAVIORAL IMPACTS

Theories based on the sociology of complex

organizations also provide some insight into how
and why companies change with the
implementation of new IT applications.

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 IT FLATTENS ORGANIZATIONS

Behavioral researchers have developed the theory that

information technology facilitates the flattening of hierarchies
by expanding the distribution of information to empower lower-
level employees and increase managerial efficiency. IT pushes
decision-making rights further down the organization as lower-
level employees receive the information they need to make
decisions without the need for supervision

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 POST-INDUSTRIAL ORGANIZATIONS
Post-industrial theories that draw more on history and
sociology than economics also support the notion that
IT should flatten hierarchies. In post-industrial societies,
authority is increasingly dependent on knowledge and

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competence, and not simply on formal positions. Thus,
the shape of organizations flattens as professional
workers tend to self-manage, and decision-making must
become less centralized as knowledge and information
spread more throughout the company.

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 UNDERSTANDING ORGANIZATIONAL
RESISTANCE TO CHANGE
Information systems end up being closely related in organizational
policies because they influence access to a key resource: that is,
information. Since information systems potentially change an
organization's structure, culture, business processes, and strategy, there is
often considerable resistance to these systems at the time of introduction.
Research on organizational resistance to innovation indicates that there
are four fundamental factors: the nature of IT innovation, the structure of
the organization, the culture of the people in the organization, and the
tasks impacted by the innovation.

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 INTERNET AND
ORGANIZATIONS
The Internet, especially the World Wide Web, has a
significant impact on the relationships between many
companies and external entities, and even on the
organization of business processes within a company.
The Internet increases the accessibility, storage and
distribution of both information and knowledge for
organizations. In essence, the Internet is capable of
dramatically reducing agency and transaction costs
faced by most organizations.

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 IMPLICATIONS FOR THE DESIGN AND
UNDERSTANDING OF INFORMATION SYSTEMS

“The environment in which the organization must operate

The structure of the organization: hierarchy, specialization, routines and business processes

The culture and policies of the organization

The type of organization and its leadership style

The main interest groups affected by the system and the positions of the workers who will
use the system
The types of tasks, decisions and business processes in which the information system is
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 CUSTOMER
RELATIONSHIP
MANAGEMENT
(CRM) SYSTEMS

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 Customer Relationship
Management (CRM) Systems FRM
Finance
Resource
● Part from the premises: Managment
● Every company depends on customers
for revenues and growth.
● Is data-driven, complex and
MRP
continuously changing. Manufacturing SCM
Supply
● Involves public relations (PR), Resource
Planning Chain
ERP
marketing, quality control, sales, System
Managment

service and support

● When it´s convenient to develop it?

● Challenge of recognizing customers
through multiple sales channels CRM HRM
Customer
● The information is in multiple data, Relationship
Human
Resource
disparate systems that are not Managment Managment

integrated.
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 PURPOSE OF CRM

From a technology perspective, CRM refers to the

methodologies and software tools to leverage
customer information, in order to achieve:

✔ Build customer loyalty.

✔ Earn greater profitability per customer.
✔ Deter customer attrition.
✔ Acquire new customers.
✔ Sell more profitable products/services (up-
sell) or sell additional products/services
(cross-sell), to move them to a profit
position.
✔ Reduce inefficiencies that waste advertising
dollars.
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 Components of CRM
CRM

Public
Marketing
Relations

Quality Sales

Support Service

Customer
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 CUSTOMER ACQUISITION AND RETENTION
NEW CUSTOMERS
● Attracting and acquiring costs roughly $100.
● Are unprofitable until they purchase enough
products or services to exceed the cost to
acquire them.
● The ones who generate revenues in excess of
the costs are critical.

● Loyalty or frequent-purchase programs

● CRM helps to run effective campaigns, ● Their objective is to build customer loyalty
to improve financial performance.
promotions, commercials and
● Rely on data warehouses and data analytics
advertisements to: to recognize and reward customers who
● Attract new customers. repeatedly use services or products.
● Increase sales to existing customers.
● Both.
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 CRM SUCCESS AND
FAILURES
Failures that have been reported:
● Difficulty in measuring and valuing
intangible benefits.

● Failure to identify and focus on specific

business problems that the CRM can solve.

● Lack of active senior managment (non-IT)

sponsorship.

● Poor user acceptance.

● Trying to automate a poorly defined business

process in the CRM implementation.

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 JUSTIFYING CRM
● The biggest problem is the difficulty of defining
and measuring success.

● When it comes to determining value, intangible

benefits are more significant tan tangible cost
savings.

● Fail to establish quantitative and qualitative

measures in order to judge the intangible
benefits.

● A formal business plan must be place before

CRM Project begins, one that quantifies the:
● Expected costs
● Tangible financial benefits
● Intangible strategic benefits
● Risks
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 FORMAL BUSINESS PLAN FOR
CRM IMPLEMENTATION
TANGIBLE NET BENEFITS
● Clear and precise cost-benefit analysis that RISK ASSESSMENT
lists all the planned project cost and tangible ● Is a list of all the potential pitfalls
benefits. related to the people, processes, and
● Strategy for assessing key financial metrics, technology involved in the CRM

HIGH VALUE 1
such as ROI. project.
INTANGIBLE BENEFITS
● Helps to lessen the probability that
● Detail the expected intangible benefits
● List the measured successes and shortfalls. problems will occur.
● Improvement in customer satisfaction is the
primary goal of CRM solution, but in many ● If they occur, the company by having
cases this key value is not measured. listed and considered the problems in
advance, will find that are more
manageable than they would have been
otherwise.
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 On-demand or Cloud CRM
CRM can be delivered on-premise or on-demand via Benefits:
the cloud. ● Improves cash flow
● Includes supporting salespeople ● No need for corporate software experts
● Avoids the purchase of a systems and its ● Ease of use with minimal training
installation costs. ● Fast time-to-market
● Vendors expertise availible.
On-demand CRM
● Offers a software in a cloud arrangement.
● Also known as utility computing or software as
a service (SaaS).
● Integrates with programs that are already in use.

Cloud CRM
● Accessible via mobile devices anywhere and
anytime.
● Customize and make changes in real time, as their
business needs to evolve..
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 “ SUPPLY CHAIN
MANAGEMENT
(SCM)

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 SUPPLY CHAIN MANAGEMENT

● SCM Is the optimization of a product's creation and

flow from raw material sourcing to production,
logistics and delivery to the final customer.

● SCM encompasses the integrated planning and

execution of processes required to manage the
movement of materials, information and financial
capital in activities that broadly include demand
planning, sourcing, production, inventory
management and storage, transportation -- or
logistics -- and returning excess or defective
products. Supply chain management relies on both
business strategy, specialized software and
collaboration to work.
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 ✔ Better ability to predict and meet customer
demand.
✔ Better supply chain visibility, risk
management and predictive capabilities.
BENEFITS OF ✔ Fewer process inefficiencies and less
product waste;

SCM ✔ Improvements in quality;

✔ Increased sustainability, both from a
societal and an environmental standpoint.
✔ Lower overhead.
✔ Improvements in cash flow.
✔ More efficient logistics.

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 SIX STAGES OF
SUPPLY CHAIN
MANAGEMENT
Supply chain
management can be
broadly categorized into
six steps or areas.

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 ● SOURCING
Companies must choose suppliers to provide the
goods and services needed to create their
product. After suppliers are under contract,
supply chain managers use a variety of processes
to monitor and manage supplier relationships.
Key processes include ordering, receiving,
managing inventory, and authorizing supplier
payments.

● PLANNING
Enterprises need to plan and manage
all resources required to meet
customer demand for their product or
service. They also need to design
their supply chain and then
determine which metrics to use in
order to ensure the supply chain is
efficient, effective, delivers value to
customers, and meets enterprise
37 goals.
 ● MAKING
Supply chain managers coordinate the activities
required to accept raw materials, manufacture the
product, test for quality, package for shipping,
and schedule for delivery. Most enterprises
measure quality, production output, and worker
productivity to ensure the enterprise creates
products that meet quality standards.

DELIVERING
Often called logistics, this involves coordinating
customer orders, scheduling delivery, dispatching
loads, invoicing customers, and receiving payments.
It relies on a fleet of vehicles to ship product to
customers. Many organizations outsource large parts
of the delivery process to specialist organizations,
particularly if the product requires special handling or
is to be delivered to a consumer’s home.

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 ● RETURNING
The supplier needs a responsive and
flexible network to take back defective,
excess, or unwanted products. If the
produce is defective it needs to be
reworked or scrapped. If the product is
simply unwanted or excess, it needs to be
returned to the warehouse for sale.
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ENABLING
To operate efficiently, the supply chain requires
a number of support processes to monitor
information throughout the supply chain and
assure compliance with all regulations.
Enabling processes include finance, HR, IT,
facilities, portfolio management, product
design, sales, and quality assurance.
 WHY IS SUPPLY CHAIN
MANAGEMENT IMPORTANT?

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● Identifying potential problems before they
occur. When a customer orders more product
than the manufacturer can deliver, the
traditional response has been to short the
order. This leaves the buyer feeling
unimportant and convinced the
manufacturer’s service is poor.
Manufacturers who anticipate the shortage
before the buyer is disappointed may be able
to offer a substitute product or other
incentive to keep the buyer happy.

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 ENTERPRISE
RESOURCE
PLANNING (ERP)

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 ENTERPRISE RESOURCE PLANNING
(ERP)
● Is a set of information systems that allows the
integration of certain operations of a
company, especially those that have to do
with production, logistics, inventory,
shipments and accounting.

● The purpose of an ERP software is to support

the company's customers, give fast response
times to their problems, as well as an efficient
management of information that allows
decision making and minimize costs.

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 CHARACTERISTICS OF ERP
✔ Integrate data silos to enable managers
to really understand what is going on.

✔ Provide data access, integrated business

processes, and the IT platform needed
to become and remain competitive.

✔ Support most or all of a company’s

business functions and processes.

✔ Expand the company’s reach beyond its

internal networks to its suppliers,
customers, and partners.

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 SPECIFIC BUSINESS BENEFITS
INCLUDE
● More key business insights into real-time
information generated by reports.

● Lower operational costs through

streamlined business processes and best
practices.

● Increase collaboration from users sharing

data across contracts, requisitions, and
purchase orders.

● Increase efficiency through a common user

experience across diverse functions and well-
defined business processes.

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 ERP SYSTEMS
EXAMPLES

“
● The best known ERP examples would
come when classifying this type of
software:

● By the size of the solution understood as

the market share of the supplier.
Considering the volume of market share,
the ERP systems whose examples cannot
be missing are Oracle and SAP.

● Other important vendors whose solutions

have become widespread are Microsoft,
Infor, QAD, IFS, Epicor or CDC, among
others.

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● By industry, the system is designed to
support. An ERP is mainly used in
manufacturing, retail, human resources,
steel, concrete manufacturers, banks,
financial, pharmaceutical, chemical, oil
and gas companies, as well as in
agriculture, agriculture and livestock
management. Nowadays the use of ERP
and its examples transcend the business
world and are no longer only used by
companies but also by universities and
educational institutes for training
purposes.

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● Or according to the
technological platform with
which it can be integrated.
Typically the ERP should
always be able to integrate
with the CRM although,
thanks to technological
advances, the possibilities
have increased considerably
and today the integration
with all kinds of cloud
solutions is a reality.

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 DOES IT MATTER?
THE BOOK tells us that companies that are first to use new technologies
gain a competitive advantage during the first few years, once the use of
technology is standardized in the competition, the advantage is lost. And
that the use of information technology in companies is very important
because, it helps make their operations more efficient, provide better
service, reduce costs and increase customer satisfaction.
Some advantages using IT in a company:
-IT facilitates specialization
-IT helps you control risks and costs
-When using IT is more important to focus on vulnerabilities than opportunities, it
is better to follow than to guide.
-A new information system in a company brings enormous strategic value
-IT enables companies to work more efficiently, provide better service,
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reduce costs and increase customer satisfaction.
 THANK YOU!

“
● BIBLIOGRAPHIC REFERENCE

● Laudon Kenneth y Laudon Jane. (2016). Sistemas de Información

Gerencial. Pearson Educación. 14ª edición.

● Turban Efraim, Volonino Linday Wood Gregory. (2013) Information

Tecnology for Management: Advancing Sustainable, Profitable
Business Growth. Wiley 9th edition.

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