8 Competitive Advantages

Strategic Information Systems

Strategic information systems (SIS) are used to support and shape business competitive advantages. SIS is defined by its way to be able to change how business is conducted. It is not classified by structure, functionality of areas, or support systems. Anything that is used to change goals or processes of companies add competitive advantage, therefore becoming strategic information systems.

Competitive Strategy

The competitive strategy is how the company is going to compete in the future. What the goals will be, and new plans and/or policies needed to implement everything. The advantage is being able to measure cost, quality and speed over competition. SIS assists businesses gain the advantage through adding to strategic goals of organizations. It is also measured through the increase in performance and productivity, therefore making them more powerful than the competition.

The digital economy is affected all the time as changes in technology occur. This causes change in business models in order to keep up. The core business isn’t changed to keep up with the digital economy even though it feels like it has. For the most part, businesses use the tools offered by the Internet, but nothing else.  There are two questions to ask here…

Where does my competitive advantage come from in my business and industry?
How can information technology and the Internet help?

How is SIS Looked at Now?

Most companies consider SIS more of an outwardly focused tool. It aims at increasing direct competition and is visible to all. Now it is more used internally. It focuses on employees’ productivity, smoothing business processes, and helping to make strategic decisions and isn’t visible to all.

Role of IT in Strategic Management

  1. Innovative Applications
  2. Competitive Weapons
  3. Changes in Processes
  4. Links with Business Partners
  5. Cost Reductions
  6. Relationships with Suppliers and Customers
  7. New Products
  8. Competitive Intelligence

How To Use The Internet As a Tool

The Internet is the most important tool in competitive intelligence.  It is so easy to look up information on the competition. The information that is gathered then can be analyzed further by what is called intelligent agents and data mining.  Both deal with software products to help them do their job. Here are some ways to do research on the competition:

  • Review Competitor’s Web Sites
  • Analyze Related Electronic Discussion Groups
  • Examine Publicly Held Financial Documents
  • Market Research on Your Own Web Site
  • Use Information Delivery Services like My Yahoo
  • Use Corporate Research Companies

Conclusion

There are numerous other ways to gain competitive advantages over your competitors. The key is to gain and maintain a sustainable strategic advantage that can be held for years to come. It is suggested that people, technology and shared risk and responsibility will help keep the advantage now. It is so difficult to otherwise as there is so much innovation occurring now.

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