Abstract

Information System (IS) refers to the integration of the technology into the organization as a system whereas information technology (IT) refers to the actual technologies. Strategic information systems change the goals, business processes, products, services, and environmental relationships of organizations to help them gain benefits over competitors. It drives the organization into a new behavior patterns by arising a need to change its internal operations, so as to take advantage of the new information technology.This chapter illustrates about the information system within an organization, exploring theapplications of computer systems, and the strategic models for examining the potential applications of information systems and the practical issues that occurs during successful information systems strategy. For companies to receive benefits the areas where application of IT/IS is impactful need to be determined, which is internally done by examining the company using value chain analysis and externally using the five-forces model.

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