The Significance of IS

Using Information Systems for Competitive Advantage

Having learned about Porter’s Five Forces and their impact on a firm’s ability to generate a competitive advantage, it is time to look at some examples of competitive advantage. A strategic information system is designed specifically to implement an organizational strategy meant to provide a competitive advantage. These types of information systems began popping up in the 1980s, as noted in a paper by Charles Wiseman entitled "Creating Competitive Weapons From Information Systems.”

A strategic information system attempts to do one or more of the following:

• Deliver a product or a service at a lower cost;
• Deliver a product or service that is differentiated;
• Help an organization focus on a specific market segment;
• Enable innovation.

Here are some examples of information systems that fall into this category.