Chapter 3 - Information Systems, Organizations and Strategy

1.  The features of organizations that managers need to know in order to build and use information systems successfully and the impact it has on organizations.

As every modern organization differs in goals, groups served, social roles, leadership styles, incentives, types of tasks performed and type of structure.  Knowing those differences helps explain the difference in way in which organizations use information systems.  As an organization and an information system become intertwined they inherently influence each other.  Ultimately the information system must serve the organization.

2.  Porter's Competitive Forces Model

In Porter's competitive forces model the strategic position of the firm and it's strategies are determined by competition with it traditional direct competitors, but they are also greatly affected by new market entrants, substitute products and services, suppliers and customers and customers.  

3.  Value Chain and Web Models

The value chain model highlights specific activities in the business where competitive strategies and information systems will have the greatest impact.  The model views the firm as a series of primary and support activities that add value to a firm's products or services.  A company's value chain can be linked to the value chain of its suppliers, distributors, and customers.  A value chain consists of information systems that enhance competitiveness by promoting the use of standards and industry wide consortia.

4.  Information systems help businesses use synergies, core competencies and network based strategies to achieve competitive advantage.

As firms consist of multiple business units, information systems help achieve additional efficiencies or enhance services by tying together the operations of disparate business units.  Because IS promote the sharing of knowledge across business units they help corporations leverage their core competencies.  Virtual based company strategy uses networks to link to other firms so that a company can use the capabilities of other companies to build market and distribute products and services.

5.  Challenges posed by strategic information systems.

The implementation of strategic information systems typically requires extensive organizational change and a transition from one societechnical level to another.  The strategies are called strategic transitions and are commonly difficult and hard to execute.  Not all strategic systems are profitable and are often not worth the difficulty associated with implementing them.