Change in IS Focus
As information systems have developed, new areas of focus have been added.
Cost Reduction
1 – Cost reduction
- Managing internal processes
- Primarily replacing manual processes with computers
2 – Improving asset utilization
- Examples include increasing inventory turnover and improved scheduling
- Decision support systems
Revenue Enhancement
3 – Enhancing products and services
- Using IS to add value to products and services
- Using IS to create new products and services
Improve Competitive Position
4 – Restructuring the organization
- Re-engineering
Staying in Business
5 – Restructuring the Value Chain
- Examples include elimination of distribution steps, manufacturer to order, and direct sales to the consumer
Source: Primozic, Kenneth, Primozic, Edward & Leben, Joe. (1991). Strategic Choices: Supremacy, Survival, or Sayonara. New York: McGraw-Hill.
© Copyright 2000 Raymond S. Kulzick. All rights reserved. 000829.
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