This paper focuses on Information Systems and Business Strategies .INFORMATION SYSTEMS AND BUSINESS STRATEGYStrategic information systems , computer systems that are used to change the target level of the organization , operations , products , services , or environmental relationships to help organizations achieve competitive advantage .The decision of the company's business strategy depends on :

The products and services company
Industry in which the company competes
Competitors , suppliers , and customers of the company
The long term goal of the company

Business -level Strategy : Value Chain ModelThe most common strategy for this level is :

be producing products with low production costs
differentiate products and services
change the scope of the competition either by means of expanding its market to the global market and to narrow the market .

Value chain model , a model which addresses the primary and support activities that add value to the products and services of the company in which the information system is best used to gain competitive advantage .Yaituaktivitas primary activity is directly associated with the production and distribution of the company's products or services . While supporters of the activity is an activity that allows the execution of the primary activity . Consists of organizational infrastructure , human resources , technology , and procurement .Value refers to web customer - controlled network on companies that use information technology to coordinate its value chain in order to collectively produce products or services to market .
Products and Services Information SystemSystem that creates product differentiation :

Companies can use IT to develop different products .
Creating brand loyalty by developing new and unique products and services
Products and services not easily duplicated by competitors . For example , Dell Corporation .

The system supports Niche MarketsIntensive analysis using customer data to support new ways of serving customers to contact and allow to develop new niche markets for specific products or services . For example , frequent guest program Wyndam Hotel
Supply Chain Management and Efficient Customer Response SystemThe system connects to the corporate value chain value chain of suppliers and consumers . System that directly connects back to the distributor of consumer behavior , production , and supply chain . Example : Wal - Mart customers to connect directly to the supplier purchase almost immediately . suppliers work to ensure the product is delivered to the store to replace the purchased product .
IT at the organizational level is used to avoid the shift of consumers to other suppliers and bind them to the company . Replacement cost is the cost incurred by the customer or the company for the time and resources are wasted when switching from one supplier or system to system supplier or competitor . For example , Baxter International .
Strategy - level corporate and Information TechnologyExpand the core competencies , the activities in which the company excels as a world -class leader . Information systems to encourage the sharing of knowledge across business units and hence improve the competence of the company .
Industry - level strategy and Information Systems : competitive forces and economic networks . The company operates in the larger environment consisting of other companies , governments , and nations . Partnership information , cooperative alliances undertaken by two or more companies that aim to share information to gain a strategic advantage . Helping companies gain access to new customers , create new opportunities for cross-selling and targeting products .
Porter's five forces modelIn larger environments , there are five main force or threats :

New market entrants
Substitute products and services
Other companies that compete directly

Competitive forces model , a model which is used directly to explain the interaction of external influences , specifically threats and opportunities , and strategies that affect the organization's ability to compete . Internet technology has affected the structure of the industry

Providing technology that make it easier for competitors to compete in terms of price and new players in the market .
Boost the information available to customers grows in price thereby increasing the bargaining power.
Lowering power supplier

business ecosystemIT plays a strong role in creating new forms of business product ecosystem . Business ecosystem is a network of suppliers , distributors , outsourcing firms , transportation companies , and manufacturing technology are interrelated . For example , Microsoft : 1 billion PCs around the world and hundreds of thousands of businesses rely on the Microsoft platform . EBay : Millions of people and thousands of businesses using the company 's platform . Wal - Mart : Enterprise systems used by suppliers to increase efficiency
network EconomicsIT products and services showed strong network effects and potentially create a situation of " winner take all " . Network causes the cost to add other participants of zero or less, otherwise the benefits could be even greater. Contrary to the law of profit decline in industrial and agricultural products . For example, the value of the Internet is growing exponentially with a linear increase in users . Because software can be certain standards ( such as the Windows operating system or the Windows Office ) , can be locked into the standard and value of Windows is growing as more and more people are using it .
Good strategy , using IT to build products and services that cause network effects . Opportunity management , dealing with the development of IT -based companies the opportunity to gain a strategic advantage .
Management challenges

Some companies are facing major obstacles in implementing contemporary systems .
Once profit is achieved , there is difficulty in maintaining excellence .
Organizations often can not be changed to accommodate the new technology fast enough

Guidelines for Completion of a strategic systems analysis

Understanding the structure and dynamics of industry competition in which it operates .
Understanding the business value chain , enterprise , and industrial
Consider how companies can manage " strategic shift " in an effort to implement a system that provides a competitive edge .
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