Role of IT in Competitiveness

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Role of Information Systems

in Building Competitiveness

Presented by:

Ashish Menon

Simant Shekhar Das

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Information Systems

An information system(IS) is typically considered to be a set of

interrelated elements or components that collect(input),

manipulate(processes), and disseminate (output) data and

information and provide a feedback mechanism to meet an

objective.

Open System

Close System

Definitions

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An Information System is an organized combination of people,

hardware, software, communication networks and the data resources thatcollects, transforms and disseminates information in a organization.

Computer-based Information System

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INFORMATION

TECHNOLOGY

Hardware

Software

Databases

Networks

Other related

components

are used to build

INFORMATIONSYSTEMS

Payroll

System

Inventory

System

Marketing

System

Customer

Service

System

IS Vs IT

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9th pillar

12 pillars of competitiveness to measure global

competitiveness of a country.

This pillar measures the agility with which an economy adoptsexisting technologies to enhance the productivity of itsindustries. In todays globalize world, technology has

increasingly become an important element for firms tocompete and prosper.

In particular, information and communication technologies(ICT) have evolved into the general purpose technology ofour time, given the critical spillovers to the other economicsectors and their role as efficient infrastructure for commercialtransactions. Therefore ICT access (including the presence ofan ICT-friendly regulatory framework) and usage are includedin the pillar.

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IT as an Enabler - A Competitive

Advantage

Increased sales

Better customer service

Improved customer relationships

Faster service

More efficient service

Diversity Reduced costs

Higher quality products

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IT as a Facilitator to New Markets

Different demographics can also be reached

through the use of trendy and popular media.

IT plays the role of facilitator because it acts

as a go-between between the business itself

and the new market.

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IT to Provide Agility

Disaster recovery and business continuity

Service delivery

Scalability

customer service

Growing or shrinking product range

Access to customers.

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IT to Enhance Decision Making

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IT to Reduce Risk

Many risks that existed using the traditional

paper systems can be mitigated however a

brand new set of risks have been introduced.

Some elite IT systems, however, have beendeveloped as fail safe systems. These are

deployed as mission critical systems and

have the primary task of reducing the risk offailure to an infinately small percentage.

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Why is Information Technology Important in

Business? There are many businesses which are in need of the

software packages for satisfying their operational as well asfunctional needs.

For fulfilling this requirement, these companies sign deals

with the software manufacturing companies.

Information technology is useful in ensuring the smooth

functioning of all the departments in a company such as the

human resource department, finance department,

manufacturing department and in security related purposes.

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Information technology allows quick transmission ofinformation inexpensively and conveniently.

Firms can reduce costs of production, procurement and

inventory savings thus, higher integration with suppliers.

Marketing, distribution, and transportation costs may be

greatly reduced.

Savings in retail transactions as the market increases;proximity to wealthier potential clients is eliminated.

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What is different with Information Technology?

High fixed cost but low marginal cost. The cost ofproducing the first copy of an information good may be

substantial but the cost of producing additional copies may

be negligible.

Network Externalities. Technologies subject to strongnetwork effects tend to exhibit long lead times followed by

explosive growth.

Lock-In Issues. once chosen, the cost of switchinginformation goods become difficult.

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Strategic Information Systems

Applications

Florida Power and Light - computerized TQM

Geisinger - intranet

J.C. Penny - custom made suits

MacGregor - EDI

Otis: IT used to block competitors

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Instead of

TELLING A STORY

Create the to allow a story to be

told Tools

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