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Managing Information Systems
Managing Information Systems – Ch. 3
Information Systems, Organizations, and Strategy
Systems Organizations and Strategy

1

Learning Objectives
• Features of organizations that managers must understand in order to build and use information systems successfully
• Using Porter ’s competitive forces model to develop competitive
Porter competitive forces model to develop competitive strategies using information systems
• Leveraging the value chain and value web models to identify opportunities for strategic information system applications opportunities for strategic information system applications
• The role of information systems in creating synergies, core competencies, and network-based strategies to achieve competitive advantage
• The challenges posed by strategic information systems and management solutions
2

EBay Fine-Tunes Its Strategy
• Problem: Losing market share to other online retailers, ultracompetitive and constantly changing marketplace
• Solutions: Acquire other businesses and adjust its business
Acquire other businesses and adjust its business model to maintain online dominance
• Purchase of PayPal, deal with Buy.com allowed eBay to grow and diversify its business di it
• Demonstrates IT’s role in the development of eBay’s organization as it expands and makes acquisitions
• Illustrates the challenges of maintaining a competitive advantage in a fast-moving, constantly-changing marketplace

3

Organizations and Information Systems
• Information technology and organizations influence each another • Complex relationship influenced by organization’s structure, relationship influenced by organization structure business processes, politics, culture, environment, and management decisions

This complex two-way relationship is mediated by many factors, not the least of which are the

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