The Significance of IS: Using Information Systems for Competitive Advantage | Saylor University

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The Significance of IS: Using Information Systems for Competitive Advantage | Saylor University

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This chapter explores the significance of information systems in modern businesses, demonstrating the productivity paradox, evaluating the argument in 'Does IT Matter?', and explaining the components of competitive advantage. It presents compelling examples of how information systems can provide businesses with a competitive advantage, gives real-world context to the role of information systems in decision-making, and offers expert guidance on utilizing information systems for competitive advantage.

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.

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