MIS Group Assignment 2

Assignment
Group Members-
1. Vinay Jain
2. Rashmi Shrestha
3. Nirvana Shrestha
4. Adnan Ahmed Shah
5. Bardhan Singh Karki
6. Sandesh Acharya
Provide 2 examples of how ERP, DSS, SCM , CRM information systems have been able to be
successful for a company by gaining competitive advantage over the rivals, for each of the 8
different approaches that SIS(strategic information systems) can be applied to.
1. Reducing cost
Example 1 -Activision is a pioneer in the video gaming industry that uses CRM to
connect with gamers via social media websites such as Facebook,Twitter and Twitch. By
using a cloud-based CRM solution, the company was able to reduce customer service
related expenses by 25% as well as reduce the overheads as using the online platform to
solve the customer related issues is cost effective as compared to performing the same
activity without the online platform.
Example 2- Wendy's is an American international fast food restaurant chain.Wendy’s

carefully researches locations when determining where to open a new restaurant,
leveraging mapping software and census data. Using the Geographic Integration Systems,
the fast food chain doesn’t just single out areas with enough likely customers to support
operations; it also looks for locations where potential employees will be highly interested
in the available jobs. Thus, this could be considered as a perfect example of how cost
reduction is made possible by GIS.
2. Raise barriers to Market entrants

Example 1 - Amazon patenting “1-Click” ordering up until 2017 was a game changer for
the competition. The idea that consumers could enter in their billing, shipping and
payment information just once and then simply click a button to buy something going
forward was unheard of when Amazon secured the patent in 1999, and it represented a
breakthrough for the idea of hassle-free online shopping. This could be seen as an
example of how a Business Intelligence system can be used to raise the barriers to market
entrants as during the period before the patent expired the new online retail sites couldn’t
offer its customers the same convenience of “1-click: ordering as it was provided by
Amazon. This use of information systems allowed Amazon to gain significant
competitive advantage over its competitors.
Example 2- 7-Eleven Inc. is the leading name and most prevalent chain in the
convenience retailing industry. They cater a wide variety of customer needs for 24 hours
a day. With its customer reach, capacity, and the efficient management 7-eleven is one of
the biggest and most productive companies in the industry because it has an efficient
supply chain management and thus is considered to be a prime example for the SCM
success stories. This inturn has helped in creating the huge entry barriers for new entrants
trying to enter the market. In Thailand 60% of the market is occupied by 7-11 for the
same reason.
3. Establish high switching costs

Example 1
The best example for high switching costs could be in the case of apple devices. Apple
uses Customer Relationship Management systems to make the lives of their customers
very convenient, helping in gaining the customer’s loyalty, however at the same time it is
also creating a situation where leading to high switching costs for its customers. For
instance , the apple ecosystem is very much desired by its customers so the customers are
willing to pay extra money to buy an iPad over a cheaper tablet from other companies
even if the latter is better in every neutral aspect, just to remain in the apple ecosystem.
The iCloud allows consumers to seamlessly share media across devices. Apple TV’s
Airplay allows music or videos from the iPhone or iPad to be effortlessly shared over
WiFi. Additionally, the inconvenience of transferring media files to Amazon Cloud
Player or Google Play further dissuades iOS consumers from switching.
Example 2
Another example of high switching costs could be in the case of DTH cable service
providers like Dish home in case of Nepal. The use of CRM allows Dish home to gain
competitive advantage. Since the fixed cost involved while setting up the service is high
as that includes the satellite receiver, the set top box, the customized cables , modems etc.
that it is not very cost effective to switch from one service provider to another and
especially once you buy very promising yearly subscriptions. This allows the company to
prevent itself from losing competitors within a short span of time.
4. Create new products and services

Example 1
The best example of companies using Business Intelligence systems to create new
products and services could be Nike Run Club where the collaboration between two
giants Apple and Nike led to the introduction of the app. The app allows the user of the
app to link the Nike shoes with the Apple device to track progress, share datas, compete
with friends, and also get personalized training. This strategic partnership created a new
joint product in the market with the use of Business Intelligence systems.
Example 2
Dell is an American multinational computer technology company that develops, sells,
repairs, and supports computers and related products and services. With the use of a
Business Intelligence system along with a customer relationship management system Dell
was able to offer customization options for their customers while buying laptops. The
customers could choose each component and specifications they would want in their
laptops based on their needs and desires. Custom laptops are a new line of products and
services that Dell was able to introduce in the market to gain competitive advantage.
5. Differentiate products and services

Example 1 -
Starbucks using CRM could be one example of how an information system can be used
to provide customers with differentiated products and services that allows customers to
be loyal to a company. The CRM strategy has increased its customer base and is
consistent across all the locations. The CRM strategy makes each client feel at ease
whenever they purchase the beverage. Starbucks uses unique techniques i.e employs
remembering frequent customers to Starbucks through their names and preferences,
which gives the customer a personal touch which makes them loyal towards the coffee
shop and this is how they maintain the relationship with the customer. Therefore, this
strategy helps them differentiate their products and services from the competitors.
Example 2
Subway was a pioneer in providing customized sandwiches to its customers. They use
Customer relationship management techniques to cater the unique needs of its customers.
Customers can choose from a wide range of breads, veggies, cheeses, non veg toppings to
cater their cravings. This unique and differentiated products offered by the company
allows it to gain competitive advantage over its competitors.
6. Enhance products and services

Example 1- Dell achieves its competitive advantage over other firms in the industry by
having superior supply chain management. Dell utilizes technology to interpret
information. By being involved in the customer buying process they are able to determine
their customers' needs.
Example 2- Uber uses Geographic Information system to enhance its service and it
employs GIS data in ways that are less obvious from the everyday user experience. For
example, the app identifies what areas have the highest need for drivers and advises
active drivers to be near those hotspots during times of elevated demand.
7. Establish alliances
Example 1
TESCO uses CRM to establish alliances and attract and retain more customers. Like most
retailers today, Tesco uses a Clubcard to reward its most loyal customers. For every pound spent,
you earn a point. These points can then be traded in for Tesco Clubcard ‘vouchers’ and vouchers
can then be traded in for rewards. However what makes it even better than its rivals is that Tesco
has plenty of established alliances that will ultimately benefit its customers. Tesco has
partnerships with many restaurants, hotels and gas stations thus giving users more opportunities
to earn points.
Example 2
The automobile giant Ford established a strategic alliance using a supply chain management
system with an american clothing company Eddie Bauer. Eddie Bauer, a premium leather
manufacturer partnered with Ford to establish a vehicle line consisting of premium leather seats
and other luxury features throughout the vehicle. Then aside from the car itself, Eddie Bauer was
producing luggage sets with Ford branding on them. This has helped both companies gain
competitive advantage over their competitors by attracting the customer base of each other.
8. Lock in suppliers or buyers

Example 1
One major example we could see where a company uses information systems to lock in buyers
could be seen in the case of Gillette,Gillette is an American brand of safety razors and other
personal care products including shaving supplies, owned by the multi-national corporation Procter &
Gamble. The use of the Business Intelligence system allows Gillete to benefit from the situation.
Gillette launched its Mach 3 razor handles at an attractive price. The profits are being made by
selling the matching razor blades at a comparably high price.
Example 2
When Amazon launched its Kindle, it not only enabled people to read digital books but also
locked them into buying digital books in a proprietary format (i.e., from Amazon). Customer
loyalty, therefore, was not a question, but mandatory to use Kindle in the first place. This could
be an example of use of a Business intelligence system to lock in buyers along with CRM.

MIS Group Assignment 2

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MIS Group Assignment 2

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Assignment

Example 2- Wendy's is an American international fast food restaurant chain.Wendy’s

2. Raise barriers to Market entrants

3. Establish high switching costs

4. Create new products and services

5. Differentiate products and services

6. Enhance products and services

8. Lock in suppliers or buyers

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