STRATEGIC USE OF INFORMATION SYSTEM IN MANAGEMENT

STRATEGIC USE OF INFORMATION SYSTEM 

 


The word strategy originates from the Greek word “strategos”,meaning “general”. Strategy is a plan in business to help organization win over its competitors. A company achieves strategic advantage by using strategy to maximize its strengths,resulting in a competitive advantage.




GAINING COMPETITIVE ADVANTAGE W/ INFORMATION SYSTEM

- Information systems as a strategic weapon
-Traditional attitudes
-Cost, Risk and Change
-Information is power
- The bottom line attitude
-Reactive Vs. Proactive thinking



LEVERAGING INFORMATION SYSTEMS

-ORGANIZATION instinct- “to survive”. A company must raise profit. Once profitability is established,the corporate instinct is to do whatever is needed within the bounds of business ethics to continue to improve profitability.




PROFITABILITY IS ENHANCED TO:

-INCREASING SALES- increasing market share,market research,creating new business,encouraging customer loyalty,research and development.
-INCREASING PRODUCTIVITY AND REDUCING COST- collecting data at the source,eliminating the intermediary,streamlining operations through integration,taking full advantage of opportunities.
-INCREASING CUSTOMER SERVICE- maximizing customer convenience,providing bonus information services,and providing customer services as incentives.
-MANAGING RESOURCES MORE EFFECTIVELY-

      ~THE MONEY RESOURCE
            > 3 FUNDAMENTAL MAXIMS OF MONEY MANAGEMENT
                     1.Collect money owed as soon as possible.
                     2.Pay invoices as close to the due date as possible.
                     3.Invest money on hand.
    ~THE INFORMATION RESOURCE
    ~THE FACILITIES,MATERIALS AND EQUIPMENT RESOURCES
    ~THE PEOPLE RESOURCE