Introduction
           Figure 3-1 Strategic Uses of Information Systems
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    ©2006 Barbara C. McNurlin. Published by Pearson Education.
                     Introduction
        Last 20 Years – Strategic Uses of IT
      • 1st edition
         –Mid 1980s, hot topic = end user computing 
           (working inward)
             • Help employees learn about PCs
      • 2nd edition
         –Late ’80s strategic use focused outward to 
           gain competitive advantage
             • e.g. Merrill Lynch cash management account
                – Now considered ‘normal’ = competitive necessity Vs. 
                 competitive advantage
                                                          3-3
     ©2006 Barbara C. McNurlin. Published by Pearson Education.
                      Introduction
     Last 20 Years – Strategic Uses of IT cont.
      • 3rd & 4th editions (1990s)
          –Strategic use attention turned inward to 
            reengineering business processes
             • Intent = not to automate existing processes but 
               to totally redesign how the enterprise operated
                – Good idea but many failed as they were ‘lay-off’ 
                  plans
             • Introduction of ERP systems was also aimed at 
               internal operations, specifically providing single 
               sources of data enterprise-wide
                                                            3-4
      ©2006 Barbara C. McNurlin. Published by Pearson Education.
                       Introduction
     Last 20 Years – Strategic Uses of IT cont.
      • 3rd & 4th editions (1990s) cont.
          –Internet’s potential becoming evident
             • Dot-coms = looked at its outward use to gain a 
               competitive advantage
             • Most established firms initially used the Internet 
               technology internally, building intranets to 
               improve company processes
                 – Publishing e-forms
                 – Accompanying workflow processes 
                                                              3-5
      ©2006 Barbara C. McNurlin. Published by Pearson Education.
                       Introduction
     Last 20 Years – Strategic Uses of IT cont.
      • 5th edition (late ’90s)
          – Use of the Internet for business underway
             • Bursting of the dot com bubble
             • E-Business has become more reality based
             • Integration of the Internet into how companies work has 
               proceeded
      • 6th edition (early ’00s)
          – Theme = leveraging traditional operations by using 
            the Internet to work more closely with others
             • Innovations of the dot-coms created competitive 
               challenges for ‘bricks and mortar’ firms
                 – Their ‘strike back’ is essentially the theme for this 6th edition
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      ©2006 Barbara C. McNurlin. Published by Pearson Education.