Business Pressures, Organizational Responses, and IT Support

Business pressures, organizational performance and responses, and IT support

Three Types of Business Pressures Market Pressures are generated by the global economy and strong competition, the changing nature of the workforce, and powerful customers Global Economy and Strong Competition Changing Nature of the Workforce Powerful Customers Technology Pressures consists of those pressures related to technology Technology Innovation and Obsolescence Information Overload Societal/Political/Legal Pressures includes social responsibility, government regulation/deregulation, spending for social programs, spending to protect against terrorism, and ethics

Organizational Responses Strategic Systems provide organizations with advantages the enable them to increase their market share and/or profits, to better negotiate with suppliers, or to prevent competitors form entering the market Strategic systems require a close alignment between the business and the information technology function Customer Focus is organizational attempts to provide superb customer service can make the difference between attracting and keeping customers on the one hand and losing them to competition on the other Make-to-Order and Mass Customization Make-to-order is a strategy of producing customized products and services Mass customization produces a large quantity of items, but it customizes them to fit the desire of the customer E-Business and E-Commerce - doing business electronically is an essential strategy for companies competing in today’s environment

Activity Read Verizon Communications ( and NetApp ( handout and answer the following question in your Microsoft Word Journal Log. If you need more information on the companies, their web-site is supplied. Use the Internet to view their web-site. You can work in pairs to discuss the question and findings. Question: Discuss how each company aligns its business strategy and its information technology function (Information Systems).