Chapter 2 -- The Strategic Role of Information Systems

(This page last modified June 3, 1997. Please send comments to H.E. Dunsmore)

Teaching Objectives

• To introduce the concept of a strategic information system.
• To show how organizations can use information systems strategically.
• To demonstrate the use of competitive forces and value chain models to identify opportunities for strategic information systems.
• To use real-world examples from well-known companies to stimulate students' interest in the strategic potential of information technology.
• To present the management and organizational considerations that must be addressed by strategic information systems.

Key Terms

Operational-level systems
Knowledge-level systems
Management-level systems
Strategic-level systems
Transaction processing system (TPS)
Knowledge work systems (KWS)
Office automation systems (OAS)
Word processing
Desktop publishing
Document imaging systems
Management information systems (MIS)
Decision-support systems (DSS)
Executive support systems (ESS)
Strategic information system
Competitive forces model
Product differentiation
Focused differentiation
Switching costs
Value chain model
Primary activities
Support activities
Information partnership
Strategic transitions
Quality
Total Quality Management (TQM)

Chapter Outline

2.1 Key Systems Applications in the Organization

Different Kinds of Systems

Six Major Types of Systems

Relationship of Systems to One Another: Integration

2.2 The Strategic Role of Information Systems

What is a Strategic Information System?

Countering Competitive Forces

Leveraging Technology in the Value Chain

Implications for Managers and Organizations

2.3 How Information Systems Promote Quality

What is Quality?

How Information Systems Contribute to Total Quality Management

Internet Resources

Table 2.4 -- Strategic Uses of the Internet
Product Differentiation -- Security First Network Bank
Focused Differentiation -- Hyatt Hotels TravelWeb
Links to Customers and Suppliers -- Federal Express
Low-cost Producer -- AVEX Electronics

The University of Texas at Austin hosts a Website that provides information on enterprise integration and modelling, including such topics as electronic markets. This site has many links to other sites that can provide information on many of the topics in this chapter, including TQM and related topics.

The Business Researcher site has many links and papers on strategic and organizational issues.

Two sites on total quality management are Quality Engineering & Manufacturing Association and Qualnet (International Quality Management Association).

Return to homepage of CS 590M - Information Systems