Section 3.4: Bullet Text Study Guide

Using Systems for Competitive Advantage: Management Issues

Because competitors can retaliate and copy strategic information systems, competitive advantage is not always sustainable. Managers interested in using information systems for competitive advantage will need to perform a strategic systems analysis, asking questions such as

  • What is the structure of the industry in which the firm is located? What are the competitive forces, and how is the industry changing and using information systems?

  • What are the business, firm, and industry value chains for this industry? How does the firm create value, manage its business processes, and leverage its core competencies?

Adopting the kinds of strategic systems described in this chapter generally requires changes in business goals, relationships with customers and suppliers, and business processes. These sociotechnical changes, affecting both social and technical elements of the organization, can be considered strategic transitions—movement between levels of sociotechnical systems. Managers will need to devise new business processes for coordinating their firms' activities with those of customers, suppliers, and other organizations.