Presented to: Ms. Sakshi Gupta.

Presented By : Verma Mukesh Kashif Reheman Saim Ansari Prashant Mall Vishen Ritu Mishra Rashmi Srivastava Sumit Jaiswal

When you finish this chapter, we will:

Understand business strategy and strategic

moves.

Recognize how information systems can give

business a competitive advantage.

Understand basic initiatives for gaining a

competitive advantage.

 Know what makes an information system a

strategic information system.

Understand the fundamental requirements for

developing strategic information systems.

Recognize circumstances and initiatives that

make one SIS succeed and another fail.

Strategy
A plan designed to help an organization

outperform its competitors.

Strategic Information Systems

Information systems that help seize

opportunities. Can be developed from scratch, or they can evolve from existing Information strategic system.

 Initiative

#1: Reduce Costs

Lower Costs Lower Price Bigger Market Share

 Initiative

Entrants

#2: Raise Barriers to

Patenting
High expense of entering industry
State Street, Inc. (Pension fund management business)

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

Initiative #4: Create New Products and Services

Dynamic The advantage lasts only until other organizations in the industry start offering an identical or similar product or service for a comparable or lower price.

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 longer warranty Real estate agents providing useful financing information to potential buyers Charles Schwab moving stock trading services online 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 through increased market share. The essence of strategy is innovation, so competitive advantage often occurs when an organization tries a strategy that no one has tried before. Dell was the first PC manufacturer to use the Web to take customer orders.

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 Creating

an SIS

Top management must be involved

from initial consideration through development and implementation.

SIS must be a part of the overall

organizational strategic plan.

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 Re-engineering

Change

and Organizational

To implement an SIS and achieve a

competitive advantage, organization must rethink the entire way in which it operates. Goal of re-engineering is to achieve efficiency leaps of 100 percent or even higher.
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 Competitive

Target

Advantage as Moving

SISs developed as strategic advantages quickly become standard business.

Banking industry (ATMs and banking by phone)

Companies must continuously contemplate new ways of utilizing information technology

to 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 plan called Mortgage Power Plus, but the program failed. Failed strategically due to unwise business shortcuts. Failed operationally due to poor technical implementation.
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As we have implemented Strategic Information System in QUADBURY company to see how it is being worked.

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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 & irresistibly delicious 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 a virtue of marketing strategy. Its marketing strategy is such that it builds a brand image not only through advertisements alone but through performance.
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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 tez hain.
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4. In order to capture the market particularly the

youth segment 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 innovativeness has captured every segment of the society.
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6. Innovation in product range has been a major advancement by Cadbury in retaining its market share.
Examples of marketing innovation 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 has roped in bollywood legend Amitabh Bachan and the ravishing Preity. 10.Extremely catchy and well recognized tag lines and punch lines create strong brand value and awareness for Cadbury. The lines Pappu pass ho gaya , Kuch metha ho jaye gives a distinct image of Cadbury.
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11.Cadbury caters to that segment of the society which cannot afford large sums of money. The marketing strategies adopted here would be introduction 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 a country of rich culture and diversified religions has a hand full of festivals. Cadbury makes most out of this season by introducing gift 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 reflect accountability, aggressiveness and adaptability. Aligning their management rewards structure with the interests of the shareowners.
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AWARD
India's best managed companies in 2003
Cadbury 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 Best Managed Companies Awards ceremony. It was the only Multinational Company featured in the list of Best Managed companies in India .
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Thank You For Listening

Question Please
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