STRATEGIC INFORMATION SYSTEMS I. TYPES OF INFORMATION SYSTEMS II. STRATEGIC COMPETITIVE ADVANTAGE III. INFORMATION SYSTEMS AND COMPETITIVE ADVANTAGE MICHAEL A SCHMITZ EIS : MANAGEMENT OF INFORMATION SYSTEMS

TYPES OF INFORMATION SYSTEMS Financial 1. Examples of Financial Systems SAP Oracle Functions of Excel Functions of Quickbooks ADP 2. Uses for Financial systems A financial information system accumulates and analyzes financial data used for optimal financial planning and forecasting decisions and outcomes. 3. Links with other systems Decision Support Systems Operational Systems Strategic Information Systems

TYPES OF INFORMATION SYSTEMS Operational 1. Examples of Operational Systems Not to be confused with operating systems. An operational system is a term used in data warehousing to refer to a system that is used to process the daily transactions of an organization. These systems are designed in a manner that processing of daily transactions is performed efficiently and the integrity of the transactional data is preserved. 2. Uses for Operational Systems People who work with operational information systems typically are operations managers. These managers are concerned with the daily flow of activities and data. 3. Links to other systems Strategic Information Systems Financial Information Systems

TYPES OF INFORMATION SYSTEMS Strategic 1. What is it? There is an overlap between operational systems and strategic systems, as well as, financial systems. A strategic plan is used to outline company objectives and to identify the methods in which those objectives can be reached. An operational plan is the comprehensive way in which each department or division will use its resources to achieve company goals. Strong links between the strategic plan and the operational plan are needed to allow the company to operate efficiently. Additionally, links between the financial systems, such as budgetary information and cost analysis link the operational and strategic systems. 2. How do we use it? Those who use strategic informational systems tend to be senior managers. These managers are concerned with how data from operational levels might be applied in different ways for the benefit of the business and have more control over how operations proceed. Data is collected from reports provided by operational managers, such as, resource data regarding material input and output. This department works with accounting and financial departments. Management analyzes data from reports in both and determine if objectives are met and where there can be changes made if any.

. II. STRATEGIC COMPETITIVE ADVANTAGE Porter’s Five Forces Competitive Advantage Strategies

PORTERS FIVE FORCES Intensity of Rivalry or Industry competitors Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitutes Threat of New Entrants

COMPETITIVE ADVANTAGE STRATEGIES Low-Cost Provider Strategy Broad Differentiation Strategy Focused Low-Cost strategy Focused Differentiation Strategy Best Cost Provider Strategy

III. INFORMATION SYSTEMS AND COMPETITIVE ADVANTAGE STRATEGIES 1.Methodology Why do we link the two together? Linking information systems is necessary to evaluate where a company is relative to it’s competitors. Porter’s Five Forces model creates a good starting point to evaluate the competitive environment. Results: Utilizing the various information systems to analyze the data provided within these systems one can compare their competitive advantage over other companies and where there is change needed. 2. Published Work Charles Wiseman His work: "Strategy and Computers: Information Systems as Competitive Weapons" Strategic Planning Process