Information system strategy assignment

Information system strategy subsidisationIntroductionInformation systems could be be as systems for processing and managing discip short letter, broadly computer- base. IS, as it could be called, is also a serviceable group inside an institution that manages the op periodtions and development of the handicrafts culture and viable transactions. So selective information system strategy (ISS) could be explained as a method that finds into line information engine room priorities with argumentation strategies and defines the ascending to take to achieve those strain objectives. Since the mid 80s, researchers and occupancy specialists feature carried bulge m both an separate(prenominal) studies and produced number of theories in feeding the world of business and may be the subject of strategical studies in business officeicular. Nowadays, those theories be counted as the support and basics of any business strategy to be pick out by any geological formation. Exper ts in the field of strategic management, much(prenominal) as Michael ostiarius and also Michael Earl, ar some(prenominal) considered to be among the most influential experts in that area. Through a serial publication of writings, Porter shaped a shift in the nidus of the literature on strategies from strategic planning to strategic management. Earls publications also resulted in establishing a prototype of concepts and role models that were created to assist strategic planners in coming up with plans to build and receive belligerent advantage. Michael Porter developed the original theories of the famous strategic approaches that embroil The 5 take outs, The 3 generic wine strategies for competitiveness and The economic value chain homunculus. On the other hand, Michael Earl established the Multiple methodology.The Digital seasonDigital era has been used as a term since the after-hours 1980s. It carried the shift of transfer from a tralatitious industry to an industr y based on the transactions of information and entropy through proficient methods. many another(prenominal) old aged scenerys of strategy are getting thrown out the window in the digital era, how of all time, some solid views are be quiet beingness found as the base of strategic thinking in the world of business. In a survey it was found that fast stones throw of underdeveloped e-business application provided few businesses did take their time in developing their strategy properly or plan bleak initiatives (Wilder, 1999). We are experiencing a world that is continuously changing, where companies are being re-established and may be deregu juveniled. New systems and ecommerce functions are providing management with a one off chance to rearrange the business rules and change the ways of business forever (Corcoran, 1999). In the world of todays nature of e-business transactions, strategy is being considered to be vital than ever. Yet, many faces are still not properly coopin g with the environment of todays business. These companies look as if they are frightened rabbits caught in the headlights of an oncoming car (Chattel, 1998). It is considered to be primary(prenominal) for businesses in the digital era to familiarise themselves with factors that will put them on steady steps throughout competition and run successfully. Businesses should realise that it is possible and easier nowadays to target customers and to customise products to the requirements (needs and wants) of the customer. Also comprehend the fact of being first is seen as more(prenominal) important than producing it well. Businesses should also realise that converse methods have opened up bracing opportunities for transaction and increased entree to customers. For example, television adverts, radio stations, mobile SMS, emails and net profit blogs. Todays electronic applications are providing 24hours a day, 7 days a week access to businesses in anytime and from anywhere in the wor ld. These factors have been the short term methods for new business opportunities, all in the long term, there will be a critical chance of success without a clearly defined business and IT strategy.The traditional approaches in ISSPorters five forces model studies the forces that take part in an organisation and illustrates how IS can construct barriers and give competitive frame. Porter defines the competition of the organisation in the relation to the industry where high level of rivalry guides to lowly level of get aheads. The menaces from new entrants are considered as the heights of the barriers in value to obstruct them and outline the profitability of the industry. Whereas threats from substitutes is the threat by others in copy the product so the margin for the definite profit decreases and consumers are more settled to change. The negociate force-out of buyers counts on the price of the product and the influence or the pressure the customer possesses. Likewise the antecedent of the suppliers is resolute by the price the consumer wants the product and how much they are willing to pay or able to spend. Another ISS traditional approach is Porters 3 generic strategies. Porters generic strategies outline methods of achieving above standard performance. To create competitive advantage for an organisation Porter identified three generic strategies focus and niche, cost leading and differentiation. The suitable generic strategy will result in lay the business to empower its strengths and guard against the unfavourable effects of the five forces. The focus or niche strategy was to find a gap in the food market where a select product would fit in and do well. For example, the customised cars market, which makes the cars unique and leads in creating a niche for high class and whence attracting big spending customers. Cost leadership involves having low level profit margins and selling big number of units of a product. Where differentiation, as its called, is when a business produces or provides something totally different from any other businesses in the industry. Michael Porter also discussed that the actions that are available to be taken can be recognised by the adoption of the Value Chain Model. This model, or approach, concentrates ingrainedly inwardly an organisation and was expanded as a systematic demesne for analysing all the performance that a company carry out and how they cooperate. The value chain approach outlines that products go through several roles in an organisation, where maximising the value adding activities fleck minimising those that do not add value should be the objective. A different traditional approach from a different scholar, Michael Earl, believes IS methodological analysis helps businesses meet their objectives fully for the reason that IS methodology is not on internal however external or outward looking. Earl established a multiplex methodology with three approaches for business str ategy bottom up, bakshis round and inside out. A bottom up approach takes into consideration the online system, afterwards investigates it for possible gaps, which can be achieved by adopting SWOT analysis. This approach outlines the current condition of the company and what does it want to achieve in the upcoming. The top down considers the organisation from a structural point of view bring into line IS with the business strategy of the organisation through studying the critical Success Factors (CSF). CSFs are explained through interviews, debates and current policies. And finally, the inside out approach studies different methods to carry research and business through new technologies that is make by observing the organisation in order to gain competitive advantage.The Traditional approaches in ISS Vs The Digital EraStrategy configuration is considered to be even more challenging in the digital era, not only because of the involvement of the developing objective, but also bec ause of the disadvantages of practising a cleared and defined strategy in a digital industry. Under the influence of the developing era during the last decade, traditional approaches in strategies have became more and more subject of critique. The appearing of the Internet, for example, and other electronic applications has noticeably affected close all industries. Considering that Porters theories were based on the economic situation in the late eighties. This phase was characterised by cyclical developments, strong competition and stable market structure. Porters approaches looks at the analysis of the current situation related to suppliers, customers and competitors. Strengthening the postal service itself within the five forces model has developed competitive advantage. Therefore, models in that era are unable to analyse or explain the dynamic changes in the digital era, which do have the power to change all industries. However, the analysis of industrial structures when emplo ying Porters five forces model can serve as an analytical framework for outlining the distribution of resources and choice of business. This model can be adopted in the digital era and also provide a framework for employing new technologies as the net, also as opportunities to businesses related in the worry of creating value for customers and gaining competitive advantage. Tackling the validity of Porters Five Forces could be analysed as apiece force by its own. The power of rivalry is assessed when knowing that the characteristics of developed technology, much(prenominal) as the internet, is the access to astronomical song of customers, lower costs in operational or functional fields, simplicity of creation into the market, the prospective for adding value to customers, therefore gain competitive advantage. It is vital to outline that progressing competitiveness could be done by offering customers unique values and products, where it is not patrician to keep the advantage gained because of the simulation of business forms, processes and technologies. Within regards to the second force, the threat of new entrants that may appear in an industry, digital methods and doer has trim down barriers to entry of new businesses in the market because of the cut in numbers of employees and lower costs for required physical property. Companies that run on the internet through economies of scale can usually prevent new entry of other firms. When a company reaches critical mass and realises the influence of entanglement externalities, can then powerfully compete with companies that have only entered the market, due to the already built relationships with clients or customers and their loyalty. The threat of substitute goods or work is vast for ease of the entry process into the digital market. Customers can scarce get on hold of information about other akin(predicate) products and compare the different specifications of each product and get to a finis if th e original product can be substituted at reasonable means with other alternatives and also can be done easily. Internet empowers the negociate power of customers. They now do not face any obstacles when seeking any information on tint, price or even expatiate specifications. In addition, the existence of the web sites that offers price comparison of products and services, so that the physical process of obtaining information in the digital era has become much easier. The ordinal and last force within the five forces model is the bargaining power of suppliers. Where internet enjoys both negative and positive factors on the fifth force of the model, which is the bargaining power of suppliers. It is considered that the bargaining power of suppliers tend to provide relief to customers to approach essential information related to prices, products and markets which limited bargaining power of suppliers. Another negative factor around involving the internet that affected the bargaini ng power of suppliers is the ease of entry into virtual markets that leads to an increase in competition. Suppliers are able to increase their power by utiliseing a special function for supply and be well-known in or working on increasing the quality of their goods or services. The positive factor is that suppliers through technology methods and especially the internet can easily access a large number of customer and other businesses as well. And again, the internet gets rid of any possible intermediaries, which means that if suppliers were serving in the industrial sectors, the ability of intermediaries in influencing customers are reduced to a minimum. Within regards to the Value chain model, the American guru has clearly outlined in one of his publications Strategy and the Internet that information technology has a penetrative effect on the value chain. The corking advantage of the internet is the ability to link an activity with others and making data widely available with bo th, the company and suppliers, customers and channels. Many of the most important applications of the internet in the value chain involve moving physical activities online, while others involve making physical activities more cost effective. To notice how these technological developments will eventually affect the value chain, some historical view is enlightening. The influence of the internet in the value chain should be unbroken in perspective. While internet purposes have an essential invasion on the quality of activities and on the cost, they are not the main influences. Traditional factors such as the skills of personnel, process technology and investments in physical assets also campaign important roles. The internet is a turning point is some terms, but many traditional sources of competitive advantage remain secure (Porter, 2001). The coauthor of Unleashing the Killer App Digital Strategies for Market Dominance highlights that those traditional approaches are not valid an ymore. Larry Downes originated three new forces that require a new strategic framework deregulation, world(a)isation and digitalisation. Deregulation happens when governments influence decreases several industries like communication theory and banking, which are fed by the new opportunities of information technology, firms in these industries were constrained to restructure their businesses and to seek for other alternatives. Where globalisation is related to the developments of distribution and communication theory that have allowed almost all businesses to sell and buy globally. It could be added here, that networked and global markets need new requirements on organisations strategies. And so positioning themselves as quality leaders or price leaders, like Porter suggests in his generic wine Strategies model, is not enough any more. Finally, digitalisation is explained as the influence of information technology develops, all stakeholders within a market will have access to eve n more information. Downes arguments are considered to be convincing. Where deregulation, globalisation and digitalisation have become powerful forces during the past years, but Porters models hardly ever took them into consideration. Todays markets are strongly affected by technological developments especially in information technology. Therefore, it is not beneficial to develop a strategy exclusively on the basis of Porters models. Downes concludes that the job of information technology is the main difference between the traditional strategy approaches and the digital era, which is the new world of the new forces. Where the traditional economy used information technology as an official document for applying change, today information technology had become the vital factor for change. demonstrationCritique of Porter, by Downes, implies that Porters models concentrates too much on the economic conditions of their era of origin. Therefore, their practicality is restricted under chan ge and developed conditions. It should be added too that Downes new forces are created from the economic conditions of their own era as well. Possibly within the next decades, they will tend to loose their importance due to other developments that took place in that future. In summary, Michael Porters approaches do not have the impact they used to have any more. Nevertheless, that doesnt mean that Porters theories became invalid. What has to be done is to apply them with the knowledge of their limitations in mind and to use them as a part of a larger framework of theories and techniques. This approach, however, is advisable for the application of every business model, brand new or old, from Porter or from somebody else, and in every economy.