1. The Role of I.S. the University of California Berkeley Extension pmcdermott@msn.com Copyright © 2008 Patrick McDermott

2. Porter’s Competitive Forces Industry Competitors Suppliers Substitutes Buyers Potential Entrants Threat of substitute products or services Bargaining power of suppliers Bargaining power of buyers Threat of new entrants Rivalry Among Existing Firms Edwards, Chris, John Ward & Andy Bytheway, The Essence of Information Systems, Second Edition, London: Prentice Hall (0-13-359308-8), 1995 (1991), p. 58. Can IT change the suppliers’ bargaining power? Can IT build barriers to entry? Can IT generate new products or services? Can IT reduce buyers’ bargaining power? Or keep ahead Or keep satisfied Or keep happy Or keep ahead Can IT build Switching Costs? Can IT change the basis of Competition?

3. Emerging Competitive Strategy & IT Management Future strategy pivots on two competitive planes: Competitive strategy – offensive and defensive – designed to operate within traditional and clearly defined boundaries Cooperative strategy – fluid, flexible, adaptable to changing markets, and poised to take advantage of sudden market opportunities through partnering “IT professionals will asked to generate, transmit and interpret information to support both endeavors.” James Shaw, Ph.D. University of San Francisco

4. Stages of Innovation VI. Sustain Ongoing Improvement Continued Improvement 改善

5. Transaction Cost & I.S. 45% of All Costs

6. A Sound Technology Strategy Reinforces the business's competitive strategy Enhances the role of technology in the firm's competitive positioning Covers both the short and long term Identifies major projects with goals and milestones Identifies necessary resources and is consistent with the business's financial plan and budget Has a method for measuring accomplishment Is well understood and communicated Has the commitment of key people who must carry it out

7. 7 S’s & I.S. It’s Recursive: I.S. itself is organized

8. Exercise 1.What is a strategic information system? 2.What relationship does a strategic information system have to Michael Porter’s competitive force model? 3.Which organization do you think has the best information technology and strategy and why? 4.Which organization do you think has the worst information technology and strategy and why?