Strategic Information Systems ( Final )

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Presented By :

Verma Mukesh

Kashif Reheman

Saim AnsariPrashant Mall Vishen

Ritu Mishra

Rashmi Srivastava

Sumit Jaiswal

Presented to:

Ms. Sakshi Gupta.


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When you finish this chapter, we will:

Understand business strategy and strategicmoves.

Recognize how information systems can give

business a competitive advantage.

Understand basic initiatives for gaining a

competitive advantage. 2


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Know what makes an information system astrategic information system.

Understand the fundamental requirements fordeveloping strategic information systems.

Recognize circumstances and initiatives that

make one SIS succeed and another fail.

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Strategy A plan designed to help an organization

outperform its competitors. Strategic Information Systems

Information systems that help seizeopportunities.

Can be developed from scratch, or theycan evolve from existing Informationstrategic system.

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Initiative #1: Reduce Costs

Lower Costs

Lower Price

Bigger Market Share

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Initiative #2: Raise Barriers to

Entrants Patenting

High expense of entering industry

State Street, Inc. (Pension fundmanagement business)

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Initiative #3: Establish High Switching Costs

Explicit Switching Costs

Fixed and nonrecurring

Implicit Switching Costs

Indirect costs in time and money of adjusting to a

new product

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Initiative #4: Create New Products and

Services Dynamic

The advantage lasts only until other organizations inthe industry start offering an identical or similar

product or service for a comparable or lower price.

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Initiative #5: Differentiate Products and

Services Product differentiation

Brand recognition

Examples of brand name success Levis jeans

Chanel perfumes

Calvin Klein clothing

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Initiative #6: Enhance Products and Services

Examples

Auto manufacturers enticing customers with a longerwarranty

Real estate agents providing useful financinginformation to potential buyers

Charles Schwab moving stock trading services on-line before Merrill Lynch

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Initiative #7: Establish Alliances Combined service may attract customers

Lower cost

Convenience

Examples

Travel industry

HP and FedEx

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Strategic alliances combine services to create synergies


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Profits increase significantly throughincreased market share.

The essence of strategy is innovation,so competitive advantage oftenoccurs when an organization tries astrategy that no one has tried before.

Dell was the first PC manufacturer touse the Web to take customer orders.

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Creating an SIS

Top management must be involved

from initial consideration throughdevelopment and implementation.

SIS must be a part of the overallorganizational strategic plan.

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Re-engineering and OrganizationalChange

To implement an SIS and achieve acompetitive advantage, organizationmust rethink the entire way in which itoperates.

Goal of re-engineering is to achieveefficiency leaps of 100 percent oreven higher.

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Competitive Advantage as MovingTarget

SISs developed as strategic advantagesquickly become standard business. Banking industry (ATMs and banking by phone)

Companies must continuously contemplate

new ways of utilizing information technologyto their advantage. SABRE, American Airlines reservation system

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Sources of Strategic Information Systems

Existing System

New Service

New Technology

Excess Information

Vertical Information

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How one IS Failed

Citicorp tried to use an SIS to implement

a 15-minute mortgage approval plancalled Mortgage Power Plus, but theprogram failed.

Failed strategically due to unwisebusiness shortcuts.

Failed operationally due to poortechnical implementation.

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As we have implementedStrategic Information System

in QUADBURY company to

see how it is beingworked.


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INTRODUCTION Ever since the CADBURY factory was set up in India in

1947, Cadbury chocolates have ruled the hearts of Indians

with their fabulous taste. Considering the penchant we Indians have for sweets, its

not surprising that these sweet, smooth, milky & irresistiblydelicious chocolates are the best childhood gift any Indian

child could get. Thank God for young JOHN CADBURY who ventured into

the chocolate business over 150 years age,way back in

England, in 1824. Long gone is the dry chocolate supplied by John

Cadbury in his Birmingham grocery store.


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CADBURY TODAY

It has been more than half a century that

CADBURY has been the most loveable

brands in India.

Cadbury India is a significant player in

the impulse market enjoying 70% share in

chocolates & a substantial share of the

sugar confectionery market.


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The Blood of marketing

( INNOVATION)

Cadbury believes in innovation.-Innovation is avirtue of marketing

strategy. Its marketingstrategy is such that it

builds a brand imagenot only through

advertisements alone butthroughperformance.


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STRATEGIES

1. Cadbury uses a variety of advertisements with

different genres and themes to attract different

age groups. E.g. Animated ads, Melodious

jingles etc.

2. Cadbury associates itself with emotions and

sentiments of people through relationships of

friendship and brotherhood.

3. Sponsorship- Bourn vita kid contest, Bourn vita

confidence academy, kya aap panchvi pass se tezhain.


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4. In order to capture the market particularly the

youthsegment the strategy adopted is to promote

SPORTS by encouraging events such as :

Karate (whiz kid championship)

In 1980 Cadbury bourn vita was the official health

drink for the Indian team at the Moscow Olympics.

5. Cadbury has not only restricted its market to

child segment but through its innovativenesshas

captured every segment of the society.


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6. Innovation in product range has been a major

advancement byCadbury in retaining its market

share.

Examples of marketinginnovation by Cadbury

*Perks new range of ulta perk*5 stars new range of 5 star crunchy

*Gems new range of fruity gems

7. Print & poster campaigns

8. Attractive packaging has been a successful way of

attracting customers to buy its products over other


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9. A huge atr value is associated with Cadbury which

inurn

increases the acceptability in the market. it hasroped in bollywood legend Amitabh Bachan and the

ravishing Preity.

10.Extremely catchy and well recognized tag

lines and punch lines create strong brandvalue and

awareness for Cadbury.

The linesPappu pass ho gaya , Kuch metha hojayegives a distinct image of Cadbury.


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11.Cadbury caters to that segment of the society

which cannot afford large sums ofmoney.

The marketing strategies adopted here would beintroduction of economy packs of all.

12.The most important marketing policy

being, implemented during the festive season.The Consumptions of sweets is at its zenith

during the festive season. India being acountry of

rich culture and diversified

religions has a hand fullof festivals. Cadburymakes most out of this season

by introducinggift boxes thus spreading joy.


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Managing For Value

Process incorporates

Setting stretched financial objectives.

Adopting Value Based Management for major

strategic and operational decisions and business

systems.

Creating an outstanding leadership capability

within their management.

Sharpening their company culture to reflectaccountability, aggressiveness and adaptability.

Aligning their management rewards structure

with the interests of the shareowners.


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India's best managed

companies in 2003Cadbury India was identified as one of Indias

Best Managed Companies in 2003. Mr Bharat

Puri, Managing Director of Cadbury India was

felicitated by Indias Finance Minister, Mr

Jaswant Singh at Business Todays BestManaged Companies Awards ceremony. It was

the only Multinational Company featured in

the list of Best Managed companies in

India .

AWARD


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Thank You

For

ListeningQuestion Please

Strategic Information Systems ( Final )

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