TOPIC 3 INFORMATION SYSTEM FOR COMPETITIVE ADVANTAGE

This topic is explain how the information system can be use or important to the competitive advantage.

There are three role of information technology

·         Can substantially increase process efficiencies

Means that when the organizations use the information technology for the system the task that the staff must do more efficient because the time can be reduce.

•          Improve communication

Improve communication basically to the employee, competitor, supplier and other people that will be deal with.

•          Facilitates collaboration

Means that, when some organization merges with other organization so the facilities that provides for each organization can be use for both parties.

• Competitive forces

Organizations can success when they develop strategic to counter these forces. The first forces are a rivalry of competitors within its industry. When they a many industries that exist with the same functions of product the business that they do are slower because they are too many product that serve to compete with other competitor.

Second is a new entrant into an industry and its markets. In the market know, many new industries have enter for the business so the older company that long time exist they must know what are the strategic that they must use to make sure their buyer stick to their product only.

Third is substitute product that may capture market share. Substitute product is a product that is same function but different brand. So if the organization can’t compete with their competitor they will fell down because one the company can’t believe their client about the product based on the price and quality the product will loss.

Forth is bargaining power of customer. Costumer have their own right to buy which product they like so as a business industries you must concern about your costumer need and try to produce product that can encourage the costumer to buy it.

Fifth is bargaining power of supplier. It more to the supplier, if your product didn’t gain profit so supplier is difficult to give your raw material.

There are five competitive strategies

•          Cost leadership

Means that when the organization good in their leadership the strategic that they create are more effective. So from that benefit the organization can help suppliers or customers reduce cost.

•         Differentiations strategic

The organization must create a strategic are different with other organization so the costumer can choose better based on the best product. Other than that, produce the product for the specific place. So the need of the product is more important o ha place rather than other place.

•          Innovation strategy

Try to innovate the product more interesting and more flexible to use. Now people are very busy with their life so try to innovate the product to be better. For example, if the product can use for the single use so innovate it to multiple use.

•          Growth strategic

If do a business your must think that your business can be expand for the global market. Other than that, try to produce new product that can fulfils the need or costumer around the world.

 ·         Alliance strategy

It means try to merges with other company that are great in business not only for the profit but also can learn about the running of the business. When merges it happen, both company can share many aspect in team of knowledge, skill, expertise, facilities and so on.