Strategic Use of Information Systems: A MIS Assessment Report, ABCU

This report is a MIS assessment that analyzes the strategic use of information systems (IS) and information technology (IT) within the context of ABCU (a fictitious university). The report addresses the strategic use of information resources to enhance business processes and gain a competitive advantage, emphasizing the application of Porter’s Five Forces. It stresses the importance of aligning IS strategy with the overall university strategic plan to mitigate key risks. Furthermore, the report examines how IT and IS can provide a competitive edge, particularly in relation to Porter's five competitive forces. The report offers advice to the CIO, recommending the implementation of a Customer Relationship Management (CRM) system to improve student satisfaction and retention, ultimately increasing the university's competitive advantage. The report concludes by highlighting the positive impact of IS and IT on measuring and improving business performance, streamlining processes, and enhancing customer service.

Running head: MIS
Management Information System
Name of Student
Name of University
Author Note

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Table of Contents
Answer 1: Strategic Use of Information Resources............................................................2
Answer 2: Importance of aligning IS strategy.....................................................................2
Answer 3: IS in gaining Competitive Edge.........................................................................3
Answer 4: Advice to CIO....................................................................................................4
References............................................................................................................................6

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Answer 1: Strategic Use of Information Resources
Information Resources can be defined as the technology, data, and processes available to
an organization that help in refining the various business processes and tasks. ABCU has
observed a phenomenal growth over the past few years in terms of staffs, students, courses
offered and infrastructure. Therefore, presence of a rich information resource can be guaranteed.
This information resource can be strategically used by ABCU to further improve their business
processes. ABCU can make use of their information resources to impact their competitive forces
to enhance their competitive advantage. Porter’s Five Forces provide an idea of the main forces
that affect the competitive environment of the firm (Dobbs, 2014). These forces are threats of
entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes and
industry competitors.
The strategy is to make use of Information resources to shape these forces. For example,
the information resources can be used to analyse the “buying power” thus, designing strategies
that can lower the bargaining power of the buyers. Another example of the tactical use of
information resource include extraction of the data and current market trends to design effective
marketing and sales strategy, which in turn helps in obtaining competitive advantage.
Answer 2: Importance of aligning IS strategy
It is integral for ABCU to align there is strategy with the overall University strategic Plan
to identify the key risks that are associated with the strategic plan developed. There are a number
of key risks to which a firm is exposed to, while they are attempting to make use a strategic use
of information resource (Huang, 2014). Aligning their IS strategy will help ABCU to slim their

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tolerances for error and will further help in coordinating all the main activities associated with
the current business process of ABCU.
Answer 3: IS in gaining Competitive Edge
Information Technology and Information system has a powerful effect on the competitive
advantage of a business organization. Michael Porter’s competitive forces model provides a
comprehensive idea of the five key forces that outline the fate of a business organization. These
forces include threats of New Entrants, Bargaining power of the buyers, bargaining power of the
suppliers, threat of substitutes and industry competitors. According to the Porter’s five forces
model, the premeditated position of a firm and the strategies are decided by competition.
Information Technology and Information system have a large influence on the competitive force
of an organization (Cui, Ye, Teo & Li, 2015). The Information system can help ABCU in
gaining a competitive edge over public Universities. ABCU can help IS in management of the
five competitive forces. In the following paragraphs, the impact of information system on
different aspects of Porters’ five forces are elaborated-
Threat of New Entrants: Strategic use of IS can help ABCU deal with the threat of new
entrant. This threat can be lowered by IS to create barriers to the entry. Use of moderns and
effective technology can help in designing business strategies that can significantly lower the
threat of new entrants.
Threat of Substitute Product: The other public Universities can act as a substitute
product for ABCU. This force is largely impacted by the buyer’s willingness to substitute (Chae,
Koh & Prybutok, 2014). ABCU can make a strategic use of their information system to redefine

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their product and service and improve the performance of the existing services to maintain their
competitive advantage.
Industrial Competitors: The other public Universities are the direct competitors of
ABCU. The strategic use of IS in this case would be redefining the services to increase its cost
effectiveness. The use of modern technology and IS can help in improving the product and
services thereby increasing the competitive advantage.
Therefore, it can be indicated that the information systems and the information resources
is expected to have a positive influence on the competitive position of ABCU. The use if IT and
IS system will help ABCU is measuring the business performance and improving them. The
strategic use of IT and IS mainly help a firm to carry on their business processes at a much lower
cost by keeping a track of all the business processes and business transactions associated with the
firm (Mao, Liu Zhang & Deng, 2016). The use of IS will have a significant impact on the above
discussed three aspects of Porter’s five forces in consideration to the business processes of
ABCU.
Answer 4: Advice to CIO
The business model that is followed in ABCU is similar to the other public Universities
and therefore, certain reforms in the business processes is needed to be brought to improve the
business process and increase student engagement. Currently the student satisfaction rating of
ABCU is 3.8 out of 5 and therefore, there is a scope of improvement. The retention rate of the
student is 75% and therefore, it can be said that there is a scope of improvement. Therefore, the
use of enterprise system is ABCU is recommended. The CIO is recommended to make use of a
Customer Relationship Management (CRM) system to increase the student satisfaction level

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(Choudhury & Harrigan, 2014). There are a number of advantages that ABCU can achieve with
the implementation of a CRM system. For example, the use of CRM generally involves
management of the key activities of a firm to enhance the relationship with the customers and
retain the customers. It is achieved by coordinating all the key activities of the firm. Another
benefit that ABCU can achieve with the use of CRM is to improve the customer service that can
help in increasing the competitive advantage of the firm (Fidel, Schlesinger & Cervera, 2015).
Therefore, the recommendation of incorporation of a CRM to the existing business model of
ABCU is justified. The proposed CRM system will add value to the University by improving the
customer service thus increasing the students’ retention rate. This will in turn help in increasing
the competitive advantage of the firm. The use of CRM will further facilitate ABCU in
identification of new students by enhancing the marketing opportunities and marketing strategies
(Nyadzayo & Khajehzadeh, 2016). This will further help in providing a competitive edge to the
University and therefore, the recommendation of having a CRM is justified.
.

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References
Chae, H. C., Koh, C. E., & Prybutok, V. R. (2014). Information technology capability and firm
performance: contradictory findings and their possible causes. Mis Quarterly, 38(1), 305-
326.
Choudhury, M. M., & Harrigan, P. (2014). CRM to social CRM: the integration of new
technologies into customer relationship management. Journal of Strategic
Marketing, 22(2), 149-176.
Cui, T., Ye, H. J., Teo, H. H., & Li, J. (2015). Information technology and open innovation: A
strategic alignment perspective. Information & Management, 52(3), 348-358.
Dobbs, M. E. (2014). Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review.
Fidel, P., Schlesinger, W., & Cervera, A. (2015). Collaborating to innovate: Effects on customer
knowledge management and performance. Journal of business research, 68(7), 1426-
1428.
Huang, H. L. (2014). Performance effects of aligning service innovation and the strategic use of
information technology. Service Business, 8(2), 171-195.
Mao, H., Liu, S., Zhang, J., & Deng, Z. (2016). Information technology resource, knowledge
management capability, and competitive advantage: The moderating role of resource
commitment. International Journal of Information Management, 36(6), 1062-1074.