strategic level marketing
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Strategy Levels Business Marketing
Presented by: Abhishek Kumar(5064)
Ajay srivastav(5114) Ajit Kumar Yadav(5047)
Abhishek Nandi(5005)
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Strategic Information Systems
Computer systems at any level of an organization that change
the goals, processes, products, services, or environmental
relationships to help the organization gain a competitive
advantage.
Strategic information systems profoundly alter the way a firm
conducts its business or the very business of the firm itself.It can be of any kind of information system (DSS, TPS)
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Strategic Levels
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The most common generic strategies at this level
To become the low-cost producer
To differentiate your product or service
Product differentiation: Competitive strategy for creating
brand loyalty by developing new and unique products and
services that are not easily duplicated by competitors.
E.g.: banks provide on-line banking service, Dell sells
custom-tailored PC.
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F ocused differentiation: Competitive strategy for developing
new market niches for specialized products or services
where a business can compete in the target area better than
its competitors. Information systems enable companies to
finely analyze customer buying patterns, tastes, and
preferences so that they efficiently pitch advertising and
marketing campaigns to smaller and smaller target markets.
- To change the scope of competition by either enlargingthe market or narrowing the market
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A t the business level the most commonanalytic tool is value chain analysis.
V alue chain model: M odel that highlights the primary or
support activities that add a margin of value to a firm¶s
products or services where information systems can best beapplied to achieve a competitive advantage.
Primary activities are most directly related to the production
and distribution of the firm¶s products and services thatcreate value for the customer Primary activities include
inbound logistics, operations, outbound logistics, sales and
marketing, and service .
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Support activities make the delivery of the primary activities
of a firm possible and consist of organization infrastructure ,
human resources , technology and procurement .
Organizations have competitive advantage when they
provide more value to their customers or when they provide
the same value to customers at a lower price. Firms can use
information systems to create unique new products andservices that can be easily distinguished from those of
competitors.
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D ata mining: A nalysis of large pools of data to find patterns and
rules that can be used to guide decision making and predict future
behavior
Supply chain: A collection of physical entities, such as
manufacturing plants, distribution centers, conveyances, retailoutlets, people, and information, which are linked together into
processes supplying goods or services from source through
consumption.Supply chain management: Integration of supplier, distributor,
and customer logistics requirements into one cohesive process.
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Information systems make efficient supply chain
management possible by integrating demand
planning, forecasting, materials requisition, order processing, inventory allocation, order fulfillment,
transportation services, receiving, invoicing, and
payment.
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B usiness can counter the threats of competitive forces
by implementing five basic strategies-
1 . Cost Leadership Strategy2. Differentiation Strategy
3. Innovation Strategy
4. Growth Strategy
5. A lliance Strategy
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O ther Competitive Strategies
1 . Improving Business Processes
2. Promoting Business Innovation
3. Lock-in Customers and Suppliers4. Creating Switching Costs
5. Raising Barriers to Entry
6. Leverage Investment in IT
7. Developing a strategic information base
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Strategic use of Management information
systemBuilding a customer focus business
Reengineering Business Processes
Improving Business Quality
Becoming an agile company
Creating a virtual companyBuilding a knowledge creating company
The challenge of strategic IS
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SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL
MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE
PRICING ANALYSIS DETERMINE PRICES MANAGEMENT
SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC
SALES & MARKETING INFORMATION SYSTEM
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
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DFD OF SALES & MARKETING IN FO RMATI O N SYSTEM WITH EXAMPLE
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M ANUFAC T URING INFOR M A T ION SYS T E M
SYSTEM DESCRIPTION ORGANIZATIONAL
MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIO
COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDG
PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAG
FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEG
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DFD MANU F ACTURING IN FO RMATI O N SYSTEM WITH EXAMPLE
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SYSTEM DESCRIPTION ORGANIZATIONAL LE
TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATI
CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE
COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEM
HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEG
H U M A N R E S O U R C E S IN F O R M A T
S Y S T E M
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DFD OF HUMAN RES O URCES IN FO RMATI O N SYSTEM WITH EXAMPLE
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