Blog 3: Information and competitive advantages

            Since the first class, I only knew the meaning of Information System is the system which aids the management or the flow of the organization. But, in this class I have learnt that a strategic information system is any information system that uses IT to help an organization to gain advantage, reduce a competitive disadvantage or meet other strategic enterprise objectives.

            Nowadays, Information Technology is important because it can change the way business compete. IT plays important roles in the organization because it can substantially increase process efficiencies, improves communication among peers and facilitates collaboration.

            I also learnt about the competitive forces that exist in the business. The forces comes from the rivalry of competitors within its industry, new entrants into an industry and its markets, substitute products, bargaining power of customers, and bargaining power of suppliers. To overcome these forces, the organization needs to have strategies. Examples of the strategies are cost leadership, differentiation strategy, innovation strategy, growth strategy and alliance strategy.

            The strategy in cost leadership is always the main thing that can attract the clients, since everyone in the whole world is seeking for the lowest price of the product. If the organization offers low-cost products, but the quality is still same with other company, for sure the clients will stick with the company. This is because the company is actually helping suppliers or customers to reduce their costs of buying the products. Meanwhile, the differentiation strategy is used when the company offers differentiation in their products than the competitors. The products that was produced is hard to find at other places unless the company itself, since the clients would like to have different product than other people.

            Other than that, the company must be creative in creating the products. The company can try to create products that were unique, top services or markets. This process is called innovation strategy. Innovation on the products should be aligning with the business processes and the markets. The next strategy is the growth strategy. After operating for a few years, the company should expand company’s capacity to produce the products. This is because the demands from the clients is increasing, thus, the production should be faster and increase in the quantity. The company can expand it into global market through the internet by offering the online services. The last strategy is the alliance strategy. The company can establish linkages and alliances or the networks with the customers, suppliers and etc. this is to broaden the market and increase the opportunity in marketing and introducing the products. (426 words)