Types of information systems: many organizations employs many different kinds of information systems:
Computer-Based information system: this type uses computer technology to perform some or all of its intended tasks. It includes hardware, software, network, procedures and people.
Application Programs: computer program designed to support a specific task or business.
Breadth of support of information systems: information systems which support part of the organization or support the entire organization. It includes two main systems: Transaction Processing System (TPS) and Electronic Commerce System.
Support for organizational employees: information systems which support the employees, such as, clerical workers, lower-level managers, middle managers, knowledge workers and executives. This type includes: Office Automation Systems (OAS), Business Intelligence (BI), Expert Systems (ES) and Dashboard (also called digital dashboard) systems.
Competitive advantage and Strategic Information Systems: competitive strategy means the strategies which the company do to meet its goals.
Competitive Advantage: the organization seeks to outperform its competitors in some measures such as cost, quality or speed.
Strategic Information Systems: provide competitive advantage by helping the organization to implement its goals.
** This section provides information which based on Porter’s thoughts.
Porter’s Competitive Forces Model: there are five different ways which are enhancing the organization position:
1- threats of entry of new competitors.
2- The bargaining power of suppliers.
3- The bargaining power of customers.
4- The threat of substitute products or services.
5- The rivalry among existing firms in the industry.
Porter’s Value Chain Model: Porter divides the organization into two main activities:
1- Primary activities: inbound logistics (inputs), operations, outbound logistics (outputs), marketing and sales and after-sales services.
2- Support activities: firm’s infrastructures (accounting, finance,), human resource management, product and technology development and procurement.
Strategies for Competitive Advantage: many companies are trying to develop strategies to face five main forces identified by Porter:
1-Cost leadership strategy: producing products and providing services in lower costs.
2- Differentiation strategies: offering different services and products features.
3- Innovation strategy: introducing new products and services, adding new features or developing new ways to produce them.
4- Operational effectiveness strategy: improving the performance of the organization by increasing the quality, productivity and employee and customer satisfaction.
5- Customer orientation strategy: focusing on making customers happy.
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