1. Why Study Strategic IT?
Technology is no longer an afterthought in forming business strategy, but the actual cause and driver.
IT can change the way businesses compete.

2. Strategic View of Information Systems
Information systems are vital competitive networks.
Information systems are a means of organizational renewal.
IS are a necessary investment in technologies that help a company adopt strategies and business processes that enable it to reengineer or reinvent itself in order to survive and succeed in today’s dynamic business environment.

3. Strategic Information Systems
Definition:
Any kind of information system that uses information technology to help an organization gain a competitive advantage, reduce a competitive disadvantage, or meet other strategic enterprise objectives.

4. Competitive Forces and Strategies

5. Competitive Forces Definition:
Shape the structure of competition in its industry.

6. Porter’s Competitive Forces Model
To survive and succeed, a business must develop and implement strategies to effectively counter the:
Rivalry of competitors within its industry
Threat of new entrants into an industry and its markets
Threat posed by substitute products which might capture market share
Bargaining power of customers
Bargaining power of suppliers

7. Competitive Strategies
Cost Leadership
Differentiation
Innovation
Growth
Alliance

8. Cost Leadership Strategy
Becoming a low-cost producer of products and services
Finding ways to help suppliers and customers reduce their costs
Increase costs of competitors

9. Differentiation Strategy
Developing ways to differentiate a firm’s products and services from its competitors’
Reduce the differentiation advantages of competitors

10. Innovation Strategy Development of unique products and services
Entry into unique markets or market niches
Making radical changes to the business processes for producing or distributing products and services that are so different from the way a business has been conducted that they alter the fundamental structure of an industry

11. Growth Strategy
Significantly expanding a company’s capacity to produce goods and services
Expanding into global markets
Diversifying into new products and services
Integrating into related products and services

12. Alliance Strategy
Establishing new business linkages and alliances with customers, suppliers, competitors, consultants, and other companies