External strategic systems

External strategic systems are a kind of strategic information systems that are used primarily by external entities in the business environment, such as customers, clients, suppliers, and distributors, and have a value added component that gives developers some time to reap the benefits of system innovation.

Benefits of External Strategic Systems:

  • Increased customer satisfaction and control.
  • Reduction in transaction costs.
  • Increased market share.
  • Reduction of processing costs.
  • Ability to change higher prices because of value-added component.
  • Increase in profit margins
Share it:  Cite

More from this Section

  • Programmable read-only memory (PROM)
    Programmable read-only memory (PROM)— customized data and instructions which are non-erasable, ...
  • Managerial Hierarchy
    Managerial Hierarchy allows the levels of management in an organization, typically three ...
  • Expert systems
    Expert systems— programs designed to emulate the knowledge and expertise of human beings ...
  • Mixed Chaining
    Mixed Chaining refers to the use of both forward chaining and backward chaining to solve ...
  • Agile manufacturing
    Agile manufacturing is a term that refers to the activities of manufacturing environments ...