Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed

CA can be realized in terms of achieving  Strategic  Tactical  Operational advantages Dimensions of CA Supplier Value Chain Supplier Value Chain Firm’s Value Chain Firm’s Value Chain Customer Value Chain Customer Value Chain

Dimensions of CA Strategic advantage  Fundamental effects in shaping the firm’s operations  IS can be used to create a strategic advantage  Eg A firm may decide to convert all of its existing data into database with standard interfaces for possible sharing with business partners and customers. Standardized database accessible via web browsers would reflect a strategic shift in corporate position It can affect in number of ways Existing access may be via proprietary computer software and change would cause the firm to consider purchasing standard reporting software from an outside vendor or hiring an outside firm to design and develop the new reporting systems. Direct access to firm’s computer resources Supplier and customer anywhere in the world would be able to access firm’s raw material & finished goods inventory level, speeding the firm’s buying and selling transactions.

Tactical Advantage  A firm achieve when it implements a strategy in a better way than its competitor  For example Customer service may be enhanced by offering customers direct access to information Customer satisfaction results in repeat purchases A customer wishes to purchase 150$ worth of computer paper from your firm These purchases are routine IS notes that the customer has made purchases totaling 800$ during month and discount is offered if it goes over 1000$ during month So this example says that customer is just 50$ behind discount It can help firm to achieve CA How let see…………… Dimensions of CA

It can help firm in these ways  Customer sees the 5% discount as a reason to continue purchasing products from the firm  IS may suggest which products the customer may wish to purchase  The firm is not only encouraging customer loyalty but also its sale and profit Include example of  hostel world  Car hire  Other offers from airlines Dimensions of CA

Operational advantage  It deals with everyday transactions & processes  That is where IS interacts directly with the process  A website that remembers customers and their preferences through past transactions would reflect an operational advantage  It stores account number, phone number, address, passwords, and other information  It directly benefits the firms  Examples include Online applications or purchasing Airline, mobile phone sites and many more Dimensions of CA

 MNC Is a firm that operates across products, markets, nations, and cultures It consist of the parent company and a group of subsidiaries The subsidiaries are geographically dispersed Own unique goals Policies And procedures Information System For Competitive Advantage

Outsourcing???  Should not limit thinking of global competitors  Professionals and staff working in other countries who compete for the same jobs as those in the host country may also be considered competitors  US companies outsourcing to China, Ireland, Scotland, Russia and India The main reason to outsource is economic Chinese labour cost is cheaper than in US Same as in India IBM, one of India’s largest call-center companies At the same time IBM had more than 9,000 employees in India who developed SW systems Challenges from Global Competitors

MNC have special need for Information processing and coordination MNC minimize ‘uncertainty’  ‘uncertainty’ is the “difference between the amount of information required to perform the task and the amount of information already possessed by the organization”  Most MNC executives recognize that they can cope with their environmental influences by making good use of IT The Special Need for Information Processing in an MNC

Coordination is key to achieving CA in the global marketplace Companies that are unable to gain strategic control of their worldwide operations and manage them in a globally coordinated manner will not succeed in the international economy MNC are facing more challenges as compare to those who restricts its activities to its home country Improvements in IT, methodology, and communications have made global coordination much easier but it is still big challenge for MNCs Need for coordination in an MNC

The Advantage of Coordination Flexibility in responding to competitors in different countries & markets Ability to respond in one country- or in a region of a country- to a change in another country Ability to keep abreast of market need around the world Ability to transfer knowledge between units in different countries Reduced overall costs of operation Increased efficiency and effectiveness in meeting customer needs Ability to achieve and maintain diversity in the firm’s products and in how products are produced and distributed All of these advantages are due to reductions in time and cost of communications made possible through use of the firm’s information resources

It’s a challenge to develop IS The term ‘Global Information System’ describes an IS that consist of networks that cross national boundaries Challenges are:  Politically imposed Constraints  Cultural and communications Barriers  Technological problems  Lack of support from Subsidiary Managers Challenges in Developing Global IS

Politically imposed constraints  Political Governments can impose some restrictions  It can make difficult for those MNC or  It can make easy to operate  It can make difficult or easy for parent to include that subsidiary on the network  Reason could be: Restriction is limited access to high speed communication Telephone infrastructure is frequently owned and operated by the government, not private firms.. Challenges are:….

Cultural & Communication Barriers  Interaction with technology vary among cultures  GIS interfaces need to be consistent even as different languages  Must offer multiple formats that yield the same functionality  It also includes: Restrictions on HW purchases and imports Restrictions on Data Processing Restrictions on data communication Challenges are:…..

Challenges are…… Technological problems  MNCs are often plagued with problems related to the level of technology that exists in subsidiary countries.  In some countries; reliable power sources are not available, resulting in frequent power outages  Telecommunication circuits often can only transmit data at slow speed, an the transmission quality may be poor.  SW can also be a problem; many countries don’t honor SW copyrights  Black market SW  SW vendors refuses to do business in certain countries

Challenges are….. Managers are also part of problem  Some convinced that they can run their subsidiary with out help,  They view head office regulations as unnecessary  Foreign office and middle line managers may fear being bypassed by the new information links that funnel operational data to the parent  MNCs attempt for GISs. It is impossible to finish problems completely

Knowledge Management A firm’s resources consist of:  Computer HW  Computer SW  Information specialists  Users  Facilities  Databases  Information All of this activities, acquiring data, processing data into info, using & communication info in the most effective way, and discarding info at the proper time is called Knowledge Management

Dimensions of information Relevancy (relevant to problem) Accuracy (payroll, billing, receivables) Timelines Completeness

Thank you!!! Q&A