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So many business are wiped out due to Strategic Information System (SIS). SIS will be important again.

SIS is effective only when it valuable and imperfectly imitable. Sources of imperfect imitability:

1. Unique Solution

2. Patentable technology

3. Organizational Culture

4. Teamwork

5. Internal Politics

If SIS is non-imitable then competitor cannot replicate and hence cannot benefit from it.

Operational management SIS example:

American Hospital Supply inventory control system installed on customer premises

Financial management SIS example

Organizational planning must be tied to financial analysis. There is always a greater opportunity to develop strategic systems when the financial systems are in place, and required figures can be readily retrieved from them.

How SIS help in strategic competitive advantage:

  1. Lower cost with respect to Quality of product, services that will make product attractive or yield better Return on Investment ROI.
  2. Differentiations:  Deliver product or service that differentiate company. There is emotional intelligence people can feel company is doing something extra for them.
  3. Market Segment: able to provide the capabilities of defining, expanding, and filling a particular niche or segment.
  4. Innovation: greatest example is Disruptive intelligence by intel.

Cost ,differentiation are mutually exclusive.

Basic competitive forces:

  • the threat of new entrants
  • the threat of substitute products or services
  • the bargaining power of suppliers
  • the bargaining power of buyers and the intensity of the rivalry among existing competitors

The problem is to determine how a business can outperform the industry average and attain a sustainable competitive advantage .answer lies in information technology together with good management.

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