This presentation is all about how and why information system is termed to be a competitive weapon.

1. Information Syste
is a Competitive
Weapon
By:
Humaid Mustafa Alvi
MBA First Year
21BAMMW356
GK-9804

2. With the help of information system technology,
a company can become competitive in all phases
of its customer relationships. The customer
resource life cycle model makes it possible for
such companies to determine not only when
opportunities exist for strategic applications, but
also what specific applications should be
developed.
Information System

3. An information system has three
dimensions working together
People – to help support
decision making,
coordination, control,
analysis, and visualization
in an organization
Process – collects,
processes, stores, and
disseminates information
Technology – hardware,
software, and networks
that support the business
processes and people

4. Information systems can be utilized to achieve competitive
advantage. In recent times, funds have been allocated to IT in
order to increase efficiency. Information systems aid
companies in competing with other competitors by
maintaining low costs, differentiating products or services,
focusing on market niche, strengthening ties with customers
and suppliers, and increasing market entry high competition.
These competitions are on a global scale and are not just
within the industry.
Having information systems in today's society helps businesses
stay more connected with the world, and most importantly its
customers. Information systems help connect businesses with
its customers by relaying information quickly back and forth.
Achieving Competitive Advantage
with Information Systems

5. Competitive
Rivalry:
the strength of
competition in
the industry.
01
Supplier Power:
the ability of
suppliers to
drive up the
prices of your
inputs or raw
materials.
02
Buyer Power
the strength of your
customers to drive
down your prices.
03
Threat of Substitution:
the extent to which
different products
and services can
be used in place of
your own.
04
Threat of New
Entry:
the ease with
which new
competitors can
enter the market
(and potentially
drive down your
prices).
05
Porter's competitive forces model.

6. New Products
and Services
Information Storage
Simplified Decision Making
Behavioral Change
How does Modern Business influence Information Systems?
The implementation of information system can benefit a lot in businesses and helps in controlling the internal and external processes.
Following are the benefits of information system

7. a) New Products and Services
Any business striving to enhance and to give a strong hold on the future has to instill a well organized Business Information System.
An IS can help in analyzing independent processes and enables organized work activities. Hence an information system entitles the
companies to understand how the company generates, develops and sells the services or products.
b) Information Storage
Keeping a log of activities is important for all the organizations, to understand the reason for the problems and so to provide
solution to the same. Business Information System makes it simple to store operational data, revision histories, communication
records and documents. The storing of data manually involves a lot of time and money. A sophisticated Information system stores
the information in the database which simplifies the process of finding the data easily.
c) Simplified Decision Making
Business Information System, eases the process of decision making and simplifies the process of delivering the required
information and hence assists in taking better decisions instantly.
d) Behavioral Change
Business Information System can be effectively implemented to help communication better between the employers and the
employees. Information Systems work better as it stores documents and files in folders that can be accessed and shared by the
employees. This ensures to oversee the flow of information between the management and the lower-level employees. This also
allows the the front-line employees to be a part of the decision making process and hence feel motivated and committed towards
doing a task.

8. Internet’s impact on Competitive advantage
• Enables new products and services
• Transforms industries
• Increases bargaining power of customers and suppliers
• Intensifies competitive rivalry
• Creates new opportunities for building brands and large customer bases

9. Apple iTunes: Music
Gatekeeper
Problem: Taking advantages of opportunities
from new and disruptive technology to stay
ahead of traditional competitors
Solution: Launched iPod and setup iTunes music
store to create a marketplace for portable and
downloadable music
Partnership with artists allow iTunes to supply
exclusive content in return for driving sales .

10. One successful use of IS/IT for
achieving competitive advantage
• Having been familiar with the internet, the founder managed to open the first online retail
shop. The company has grown tremendously over the last decade.
• IT features have also enabled Amazon to offer unbeatable logistics hence boosting its
competitive advantage. The company liaises virtually with numerous international
distribution channels that provide efficient, quick, and safe delivery.
• The above third-party logistics corporations deliver the orders taken from Amazon’s website.
Through this, they have fostered their consumer confidence and reduced the risks of their
rivals to get hold of their suppliers.
• the company has been able to collaborate with several emerging IT companies outside the
publishing industry.
• By signing agreements with other online companies, the company has been able to direct
hotlinks to its mother website. Over the past years, the company has signed several limited
agreements with AOL.com, Netscape, Geocities, @Home Network, Alta Vista, a0nd with
thousands of independent sites.

11. One unsuccessful use of IS/IT for
gaining or enhancing competitive
advantage
• For a very long time, Nokia was a market trailblazer in the cell phone market. It was
renowned internationally for its huge client base. It was so successful that it had created
substantial entry hurdles for any new IT companies interested in the cell phone market.
Its operating system, Symbian, was the pillar of its success. The OS was liked because
it was user-friendly. The company’s products reigned from the intermediate and low-end
market for years.
• However, Nokia made a mistake when it became narrow-minded and contented with its
accomplishments and failed to envisage the rivalry, major inventions, and innovative
advancements coming it’s the way.
• Nokia’s downfall began when Samsung started to manufacture phones focused on the
low-end market. Similarly, its operating system failed to keep pace with Android OS.
Through the above, the company’s operating system transformed from being a
competitive benefit to being a drawback.

12. Internal and external factors
influencing the success or failure of
organization’s attempts at gaining
and enhancing competitive
advantages
Helpful Harmful
Internal factors Strengths
Technology, diversity
Weakness
Personal management factors and organizational
management factors
External factors Opportunities
Social and economic factors
Threats
Political, technological, environmental, and legal
factors

13. Conclusion
In conclusion, it should be noted that one approach through which business can gain a
competitive advantage is adopting the use of information system or information technology.
Notably, the use of IT is influencing competition in numerous critical methods. It alters the
business configuration and, in so doing, modifies the directions of competition. It also
generates competitive advantage by offering organizations innovative means of outdoing
their competitors. There are several ways through which companies can utilize information
technology to outdo their competitors. By embracing IT, an organization can lower costs,
differentiate its products and services, innovate, promote growth, and develop alliances. As
such, the use of IT can substantially reduce the cost of business processes. In spite of the
fact that companies utilize IS/IT to gain competitive advantage, it should be noted that some
companies have been unsuccessful. A time, the use of IT can go against the enterprise’s
goals and objectives. For instance, the technology can attract numerous competitors that
can outdo the pioneer company.

14. Bibliography
Harvard Business Review
Publisher: Harvard Business Publishing
ISSN: 0017-8012
International Conference on Information Systems
(ICIS)
ICIS 1984 Proceedings