Strategic Information Systems & IT doesn't matter

Question 1

Discuss the strategic value of information systems

Answer 1

A weapon in the battle against competitors -> helps support & shape the corporate strategy by giving a firm the competitive edge/advantage

Question 2

What are strategic information systems?

Answer 2

o A tool to perform existing tasks more efficiently
- cut costs
- differentiate products
- help manage vertically & horizontally large firms & strategic alliances through a reduction in agency costs

Question 3

Explain the resource-based view of the firm

Answer 3

o A firm’s resources and capabilities can help a firm gain competitive advantage if they are
- Heterogeneously distributed – not everyone has them
- Imperfectly immobile – competitors face significant cost disadvantages if they try to implement it
* Firm history
* Causal ambiguity
* Social complexity

Question 4

Can information systems provide a sustainable competitive advantage

Answer 4

Potentially, however there is no clear, recent data to definitively prove this as ISs generally aren’t particularly rare/hard to imitate
There are five attributes for IT through which sustainable competitive advantage may be reached
or propagated:
Customer switching costs
Access to capital
Proprietary technology
Technical IT skills
Managerial IT skills (details to each in Word Sheet)

Question 5

Summarize Carr’s view on IT.

Answer 5

1.Spend less.
2. Follow, don’t lead.
3. Focus on vulnerabilities, not opportunities.