Business Models and Information Systems “A business strategy is a well-articulated vision of where a company seeks to go and how it plans to get there” (Pearlson and Saunders, 2004). An organization's decisions regarding organizational and IT strategies should be governed by this overall business strategy. IT strategy must integrate with business strategy and be constantly re-evaluated to ensure the business achieves its strategic objectives. Information systems strategy will and will be affected by business strategy. Pearlson and Saunders (2004) examine two important business models: Porter's generic strategies framework and D'Aveni's hypercompetition model. Porter's generic strategies framework can be a useful tool to help managers identify and understand the strategic options available in the search for competitive advantage. Porter (1985) identified three main strategies that enable a company to achieve this advantage: cost leadership, differentiation, and concentration. I believe this competitive advantage is as much about competitive strategy and execution as it is about the organization's market position relative to those competitors. Porter (1985) argues that the goal of a cost leadership strategy is to be as low as possible. cost producer in a particular market. By minimizing the costs associated with business activities, the organization is able to achieve above-average performance. “To be successful, this strategy typically requires a significant market share advantage or preferential access to raw materials, components, labor or other important inputs. Without one or more of these advantages, the strategy can easily be imitated by competitors” (Wikipedia.org, nd). The organization must also offer a product or service of comparable quality to its higher cost competitors. Only when the quality of two competing products is comparable can a customer realize the relative value of the product produced by the cost leader. For an organization to successfully execute a cost leadership strategy, it must streamline its operations and reduce overhead while reducing the time it takes to move products from idea to customer stages. Proper design and use of information systems allows an organization to distribute information, coordinate efforts, share resources, automate processes, and analyze data to achieve leadership strategy in costs a market reality. “Through differentiation, the organization qualifies its product or service. in a way that allows it to appear unique in the marketplace” (Pearlson & Saunders, 2004). The organization identifies the features most important to its customers, then attempts to add value by improving or increasing those facets..