4. Definition
• Competitive advantage is defined as the
strategic advantage one business entity has over
its rival entities within its competitive industry.
• Achieving Competitive Advantage strengthens and
positions a business better within the business
environment.
• When a firm sustains profits that exceed the
average for its industry, the firm is said to
possess a competitive advantage over its rivals.
The goal of much of business strategy is to
achieve a sustainable competitive advantage.
5. Type
• Michael Porter identified two basic types of
competitive advantage:
• cost advantage : when the firm is able to
deliver the same benefits as competitors but
at a lower cost
• differentiation advantage :deliver benefits
that exceed those of competing products
6. • a competitive advantage enables the firm to
create superior value for its customers and
superior profits for itself.
• Cost and differentiation advantages are known as
positional advantages since they describe the
firm's position in the industry as a leader in
either cost or differentiation.
Type
8. Definition
•Strategic systems are information systems
that are developed in response to
corporate business initiative.
•They are intended to give competitive
advantage to the organization.
•They may deliver a product or service that
is at a lower cost, that is differentiated,
that focuses on a particular market
segment, or is innovative.
9. •Strategic information systems are those
computer systems that implement
business strategies
•They are those systems where information
services resources are applied to strategic
business opportunities in such a way that
the computer systems have an impact on
the organization’s products and business
operations.
Definition
10. • Strategic information systems are always
systems that are developed in response to
corporate business initiative.
• The ideas in several well-known cases came
from information Services people, but they
were directed at specific corporate business
thrusts. In other cases, the ideas came from
business operational people, and Information
Services supplied the technological
capabilities to realize profitable results.
Definition
11. Differences between SIS and Common IS
• Most information systems are looked on as
support activities to the business.
• They mechanize operations for better
efficiency, control, and effectiveness, but
they do not, in themselves, increase
corporate profitability.
• They are simply used to provide management
with sufficient dependable information to
keep the business running smoothly, and they
are used for analysis to plan new directions.
12. •Strategic information systems, on the
other hand, become an integral and
necessary part of the business, and
directly influence market share, earnings,
and all other aspects of marketplace
profitability.
•hey may even bring in new products, new
markets, and new ways of doing business.
•They directly affect the competitive
stance of the organization, giving it an
advantage against the competitors.
Differences between SIS and Common IS
13. Refference
• Porter, Michael E., Competitive Advantage:
Creating and Sustaining Superior Performance
• resource-based view
• Resources and Capabilities
• Value Creation
• The role of technology in competitive advantage