The 5th Meeting

This week, we are learn about how information system affect the organization, and in the end affect the strategy of the organization. First, by understanding the business environment, we can make our strategy in the market that in the hopefully can gain competitive advantage. Those business environment are; threat of new entry, threat of substitution, competitive rivalry, supplier power, and buyer power. In the other hand, by combining the business environment with information system, strategy can be achieve and gain the competitive advantage. For example, low cost leadership strategy, product differentiation strategy, focus on market strategy, increase switching cost strategy (improve customer loyalty). All of these strategy can be achieve by see the correlation between the business environment and the organization’s strategy. Hence, by calculate all the possibilities from all of perspective, organization goal and strategy can be achieve.

In addition, achieving competitive advantage must have these characteristics; synergies (continuously), core competencies (hard to be imitate), network based strategies which the organization should have a network using internet and technology, adaptable and flexible to the change of the environment. Furthermore, by the use of information system (IS) in the organization, the IS user must help to maintain the business goal and align with the business goal by firstly asking the organization about 3 main questions. First, how does the five forces work for the business? (What are the industry direction? How can information and technology improve the competitive advantage?). Second, what are company value chain? (does the firm knows its core competencies? And the last is about the partnership, collaboration and value web). Third, as the last have the firm maximized it’s technology and information?