JOURNAL ARTICLE REVIEW

Competitive Advantages and Strategic Information Systems

RJ REYES

MIGUEL ISLETA

REX LAZAGA

BRYAN HIPOLITO

MARK ANTHONY Z. DE REGLA

INTRODUCTION

Competitive advantages and strategic information system is an article that details the
usefulness of information system in business. It states the effects of information system in
the environmental management and how it gives competitive advantages to whom it uses
it to full efficiency. The article also tackles strategic information system which contributes
to attain the strategic goals of a business and as it supports or change enterprise’s strategy.
It also shares the roles of information technology in strategic management as these help the
business acquire a competitive intelligence which helps the business monitor strategies
against competitors. The article also states about strategies for competitive advantages and
strategic information systems competitive advantages these details the relevance of
strategic information systems in the enterprises gaining competitive advantages against its
competitors. Lastly it also shares about implementing and sustaining strategic information
system as maintaining the competitive advantage is a major problem for companies cause
of the complex competition in business these will help the company to be efficient.

Strategic information system is very important as it provides a connection between

demands of organization and newest information technology. This tactic helps a company
get hold of the market by utilizing information technology to meet its challenging
requirements to the continuing complexity in corporate environment.

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ANALYSIS

The study gave an important concept that highlights the role of information technology in
competition is the “value chain.”1 This concept divides a company’s activities into the
technologically and economically distinct activities. A company’s value activities are those
involved in the physical creation of the product, its marketing and delivery to buyers, and
its support and servicing after sale. Support activities provide the inputs and infrastructure
that allow the primary activities to take place. Every activity employs purchased inputs,
human resources, and a combination of technologies. Firm infrastructure, including such
functions as general management, legal work, and accounting, supports the entire chain. A
company’s value chain is also a system of interdependent activities, which are connected
by linkages. Linkages exist when the way in which one activity is performed affects the
cost or effectiveness of other activities. Linkages often create trade-offs in performing
different activities that should be optimized. This optimization may require trade-offs. The
value chain for a company in a particular industry is embedded in a larger stream of
activities that we term the “value system”. The value system includes the value chains of
suppliers, who provide inputs such as raw materials to the company’s value chain. Linkages
not only connect value activities inside a company but also create interdependencies
between its value chain and those of its suppliers and channels. A company can create
competitive advantage by optimizing or coordinating these links to the outside. For
example, a candy manufacturer may save processing steps by persuading its suppliers to
deliver chocolate in liquid form rather than in molded bars. Just-in-time deliveries by the
supplier may have the same effect. But the opportunities for savings through coordinating
with suppliers and channels go far beyond logistics and order processing.

The research says that the Strategic Information System helps the organization gain a
competitive advantage by its contribution to strategic goals and increase performance in
productivity. It is very important of today’s digital economy. For most businesses, internet
technology is more powerful tools that increase their success through their traditional
sources of competitive advantage.

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  It can use effectively and efficiently communication which is accessible to
its customer over the internet.
 Support fast data collection input and output data to identify particular
market segments.
 The information systems use to calculate profits, manage the currency risks,
and allow the organization to operate the market currency virtually around
the clock. Consequently, global organizations have begun to respond to the
global increasingly competitive market through adopting their global
interactive strategies.
 It is useful in all organizations to meet technological, environmental,
organizational requirements to improve their products, services’
competitiveness and quality, they need to be run and managed effectively.
It will benefit organizations in the area of cost saving.
 Access to Large Skilled Workforce. Opportunity to expand and develop
their software activities through including hundreds and thousands of highly
skilled workers’ contributions regardless of their location to form virtual
global organizations.

Based on the article, we’ve learned that Information system has played a major role through
the years in improving a way of wise decision making in management. Information system
is one of the key factors in the success of every management decision. Without information
system, all system will still be manually and there is always a "Bottle-Neck " in all factors.

With information system, strategies are improved. These strategies will be applicable to a
wide range of applications including customer segmentation for better resource utilization,
improved performance tracking for diagnosis and maintenance, classification strategies for
improved inventory management, better use of sales data for increased revenues and
customer satisfaction, and better forecasts.

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It concerns the introduction of new software tools, the integration between those, and a
refinement of simulation and testing processes to improve collaboration between analysis
teams that handle different applications.

Information has always played an essential and important role in working and development
of human societies and the need and importance of information has been growing at an
accelerated pace over ages. Information is needed for people to work cooperatively. No
cooperative work is possible without the use of information to exchange knowledge and
understanding on various issues like work to be performed collectively.

All the technological wonders of the 21st century are based upon the foundations of
knowledge. The most innovative technology or methods used today are the results of many
small inventions, discoveries and improvements from the past. The technological
developments in IT particularly the computers with an ability to accept, store and execute
a series of user defined instructions enable organizations to use information more
effectively.

Developments in Information Technology have far reaching effects on business today,

which will have far reaching effects on the way we do business. Nowadays the booming
technology has taken deep roots in every field. It is impossible for anyone to imagine a
world without high computing environment.

Strategic information technology is very important in wise decision making. In a quote

from Gene Morton says “Develop your leaders into a competitive advantage. Reconnect
your leader-power to success.”

INTERPRETATION

The outcome and/or the information of the article could be expanded by having or adding
more relevant explanations and giving more examples. Providing more examples to back
up statements of facts can add value to the area. Examples makes the explanation clearer
and gives the readers more idea. As well as the information about the article could be
expanded by giving possibilities to imagine within the context of the article.
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It was a good article. The article was very useful for the readers especially for those who
are in line of business and corporate world. The article maybe one of the best reference
who wants to achieved a success in their business. This can provide them enough
information to gain competitive advantage from their competitors.

The article was about the role of Information Technology in Strategic Management that
deals in technical side of the business, the help of Strategic Information System in
organization to gain Competitive Advantage, the uses of Competitive Intelligence, the
strategies for Competitive Advantage, the concept of value chain, the Cost and Competitive
Advantage, Differentiation Advantage and the Internet’s effect and its Impact on
Competition.

The study was all about the strategies in competitive advantage and how to sustain such,
for future business perspective and for managements and its planning, strategies, scope and
objectives and also the awareness of the future challenges and how to face them to
achieving a goals of the organization.

The study can be useful for future business purposes and other related field. We’ve learned
from the article the strategies to a successful competitive advantage and how to sustain it.
A low cost strategy which means achieving a cost based advantage over rivals.
Differentiation strategy seeks to differentiate the product or service from rivals. Best cost
provider gives customer more value for the money by satisfying buyer’s expectations while
beating their price expectations.

The research maybe more effective if more accurate figures and tables are shown also needs
to improve the conceptualization and theoretical basis of the work. The research might
consist of much clear statement near the beginning. Further explanation, examples and
research of the subject to make the article much more effective to the reader. However, the
research is good and useful for the readers and for everyone.

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