Management Information System

Ghulam Yasin Hajvery University Lahore

Competitive strategy
Major role of Information system is to provide effective support of companys strategies for gaining competitive advantages. Strategic information system uses IT to develop products, services and capabilities tat give a company major advantages over the completive forces it faces the global marketplaces.

Strategic Information Architecture

The collection of strategic information system that supports or shapes the competitive position and strategies of a business enterprise. To the survival of organization is dependent upon the five competitive forces which shape the structure of competition in the industry.

Competitive forces
The rival of competitors with in the industry Threat of new entrants into an industry and its market. Threat posed by substitute product Bargaining power of customer Bargaining power of supplier

Competitive strategies
Cost leadership strategy (decrease, increase) Differentiation strategy Innovation strategy (uniqueness, SCM) Growth strategies (capacity, Market capturing) Alliance strategies (linkage, Relationship management with customer, suppliers, consultants etc.)

Building customer-focused business

Driving force behind world economic growth has changed from manufacturing volume to improving customer value. As a result key success factor for many firms is maximizing customer value.

IT in Retail
When a firms sustains profits that exceed the average range for its industry, the firm is said to posses competitive advantage over its rivals. CRM (Customer Relationship Management) SCM (Supply Chain Management) RFID (Radio Frequency Identification )

Competitive advantage cycle

Innovation Competitive necessity Competitive advantages Organizational learning

Business value
Business value of becoming a customer-focused business lies in its ability to help them keep customer loyal, anticipate their future needs, response to customer concerns, and provide top quality services to the customers.

Customer value
CV recognizes that quality rather than price, has become the primary determinant in a customers perception of value. Companies consistently keep track of their customer's individual preferences, keep up with market trends, supply products, services and information any time and anywhere and provides customer services.

Customer value
Internet technologies can make customers the focal point of customer relationship management and other E-Businesss applications. Internet technologies has created a strategic opportunity for customers, large or small level to offer fast responsive, high-quality product and services.

Customer value
CRM, Internet, Intranet, Extranet, website create new channels for interactive communications within a company, as well as communication with customers, suppliers, business partners and other agents in the external environment.

Customer value
Customers use Internet to ask questions, complaints, evaluate products, request support and make track their purchase etc. Using the Internet and corporate intranet, specialists in business functions throughout the enterprise can contribute to an effective response.

Value chain and strategic IS

value chain can be viewed as a series, chain or network of basic activities that add value to its products and services . Value chain also adds a margin of value to both firm and its customers

Value chain conceptual framework

In VCCF business activities can be divided into Primary process and secondary process. Primary process
Primary process are those business activities that are directly related to the manufacture of product of delivery of services.

Secondary process
Secondary process supports the day-to-day operation of the business and that indirectly contribute to the product or services of the organization.

Hilton Hotel(small case study)

Hilton hotel uses Hilton Reservation Worldwide, is proud to have one of the fastest reservation services in the world among 2400 hotels located in 65 countries worldwide. HRW handles more than 31 millions calls and generates more than 9 million reservation annually. Average time to complete a reservation is less than two minutes. This high level of efficiency and customer service is the direct result of Hiltons innovative application of information technology.

Value chain examples (Primary Process)

Inbound logistics
Automated just-in-time warehousing

Operations
Computer aided flexible manufacturing

Outbound logistics
Online POS and order processing

Marketing and sales

Targeted marketing

Customer service
CRM

Value chain examples (secondary Process)

Administrative coordination and support service
Collaborative workflow intranet

HRM
Employee benefits intranet

Technology development
Product development extranet with partners

Procurement of resources
E-commerce web portals for suppliers

Using IT for strategic Advantage

Organization may choose to use IS strategically. Organization may be content to use IT to support efficient every day operation. Using IT a major competitive differentiator. Using IT in developing products and services.

Using IT for strategic Advantage

The role of information technologies in today's company Productivity from information technology Assessing IT investments Best Practices for using Information Systems Data-Rich Supply Chain Management IT Product Selection and Design Distributed computing Business uses of national and global networks, such as the Internet Strategy for Companies in the Information Age Organizational Architecture for the Information Age Closing the Gap Between Suppliers and Users of IT Marketing on the Internet : Lessons from Winners and Losers E-Commerce Success Factors

Reengineering Business Process

Reengineering is fundamental thinking of business processes to achieve dramatic improvements in cost, quality, speed and service. BPR combines a strategy for promoting business innovation with a strategy of making major improvements to business process.

Reengineering Business Process

Business process re-engineering is the analysis and design of workflows and processes within an organization. Cross-functional enterprise resource planning (ERP) software. Organizational redesign. Self-directional cross functional Multidisciplinary process team.

Organizational redesign.
What We Will Do: Provide a process and detailed roadmap for your redesign. Assist in planning all aspects of the change. Facilitate redesign team meetings through the redesign process. Provide coaching as required to employees at all levels, including the leadership team. Provide a fresh perspective, with experience in redesigning many organizations worldwide. Assist in communication and deployment planning Prepare leaders to implement the new organization

Organizational redesign.
What We Need You To Do: Commit to the redesign. Ensure the active participation of the leadership team in the redesign effort. Provide us with access to the required internal personnel. Authorize those personnel to provide us with the required information in a timely fashion. Assign resources to participate on the redesign team as needed. Ensure timely review and approval of redesign team recommendations. Ensure that approved recommendations are implemented in a timely manner.

Self-directional cross functional

A cross-functional team is a group of people with different functional expertise working toward a common goal.[1] It may include people from finance, marketing, operations, and human resources departments. Typically, it includes employees from all levels of an organization. Members may also come from outside an organization (in particular, from suppliers, key customers, or consultants). Cross-functional teams often function as self-directed teams responding to broad, but not specific directives. Decision making within a team may depend on consensus, but often is led by a manager/coach/team leader.

Self-directional cross functional

Effects
Less unidirectional Greater scope of information Greater depth of information

Multidisciplinary process team

Multidisciplinary teams (MDT) are investigatory and case management teams that are made up of professionals from law enforcement, prosecution, medicine, child protective services, mental health, victim witness, child advocates, and other child abuse professionals.

Multidisciplinary process team

Multidisciplinary case management teams are meant to: Provide access to multiple departments/agencies to maximize available information at the initial investigatory phase. Reduce re-victimization of the victim, multiple interviews and delays in providing adequate legal and/or mental health services. Support victims through a difficult criminal justice system by facilitating case management. Identify gaps in resources and conflicts in service provision.