Thursday, 20 October 2011

Reflective 2: Reflection on Information System For Competitive Advantages


This topic more explains about the using of Information System (IS) for gaining competitive advantage. There are 3 roles of information technology that plays a major role in reengineering most business process:
  • Can substantially increase process efficiencies
  • Improves communication, and
  • Facilitates collaboration.
Information Technology will help the organization gain the competitive advantages with several strategies. First is cost leadership strategy. Company must become low cost producers with help and reduce cost to their customers or suppliers but increase the cost of products to their competitors. The second strategy is innovation strategy. To become a creative and innovative, company should produce the unique products, services and markets that are different with the other company. Other strategy to get the competitive advantage is growth strategy. It will give the opportunity to expand company’s capacity and diversify new products and services into global markets. Next is alliance strategy. Company can think another alternatives how to establish linkages and alliances with their customers, suppliers, competitors, consultants and other companies.

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