Gaining Competitive Advantage Through Information Systems

So I’m going to talk about gaining competitive advantage through information systems in this article I will explain about enabling organizational strategy through information systems, business in digital world, and valuing innovations. So first I’m going to discuss about enabling organizational strategy through information systems so the first is about organizational decision-making level so there are 3 level such as executive level, managerial level, and operational level. From the operational level it has a structured decisions why because they can’t choose what they want it always has a decision from the upper level so they can’t do to much and next is managerial level in this section the decision is semi structured decision, because they can make a new suggestion of decision so they not restricted to choose decision from  the upper level, and last is executive level in this section the decision is unstructured because they can make any decision up to them and what they choose can make what will the company in the future. Information systems also can track and identify trends and seasonality. Next is business models in the digital world, there are some components of a business models such as customer segments, value propositions, channels, customer relationship, revenue streams, key resources, key activities, key partner, and cost structure. And there are revenue models in the digital world like affiliate marketing is paying businesses that bring customer to other business, subscription users pay monthly or yearly recurring fee to use the product or service, licensing users pay a fee for using protected intellectual property, transaction fees a commissions is paid to the business for aiding in the transaction, traditional sales a consumer buy a product or service from a web sites, web advertising a free service that supported by advertising displayed on the web sites. International business strategies there are four international business strategies like global strategy, transnational strategy, home replication strategy, multidomestic strategy. Home- replication strategy Focused domestically, homogenous markets, International business an extension of home business, Focus on core home market competencies, Inability to react to local market conditions, Domestic systems, limited communication, local databases.

Global business strategy Central organization, standardized offerings across markets, homogenous markets, Standardized products, economies of scale, Inability to react to local market conditions, Centralized systems, networks and data sharing between home office and subsidiaries. Multidomestic business strategy Decentralized federation, heterogeneous markets, Quick reaction to changing local market conditions, Differing products, lack of economies of scale, limited communication and knowledge sharing, Decentralized systems, bidirectional communications, local databases. Transnational business strategy Both centralized and decentralized components, integrated network and market, Benefits of both multi-domestic and global strategies, Highly complex, difficult to manage, Distributed/shared systems, enterprise-wide linkages, common global data resources. Organizational requirements for innovation process requirements : focus on success over other objectives, resource Requirements. employees with knowledge, skill, time, and resources: partner with appropriate requirements. risk Tolerance Requirements: tolerance for risk, tolerance for failure