How IS aids decision making

17 Feb

Why do organizations invest in IS?

To help companies compete. A prime example is a bank. Some form of information system/technology will be involved.

 

To gain competitive advantage

 

To improve organization connections with customers and business partners

 

To improve decision making

 

 

 

The Role of IS in Organizations

Operational efficiency: this might allow new products to become available. Resources can be used a bit better. An information system can now automatically send an invoice when stock is low. A good example is Dell’s stock control.

 

New Products, Services and Business Models

An example is Netflix. It has completely changed the model of the movie industry. Information systems might allow us to create new products and services.

 

Customer and Supplier Intimacy

The more you interact with the customer the stronger the tie. Likewise with suppliers in terms of providing vital inputs. A good example is Amazon. The Tesco Clubcard – the products they are offering you on your statement may be better, have percentages off, etc. it is related to their profiling of the customer.

 

 

 

Improved Decision Making

IS is supposed to supply you with real-time data. It can be argued that this is not always the case. If the IS system is not working properly it will not improve your decision making. But real-time data has greatly improves the ability to make decisions. And example is dashboards that provide data on customer complaints.

 

 

Competitive Advantage

It might allow us to reach new markets and charge less for a\ superior product. Dell is an example of competitive advantage… As an order comes in computes get built. You are not left with unsold stock.

 

Survival: An investment in IS is simply out of necessity.

Improved Decision Making.

 Organisation managers are often swamped with data that are neither timely nor helpful, forcing guesswork
 Real-time data, to the right people, have greatly improved the ability of managers to make decisions
An example are dashboards that provide real-time data on customer complaints to the HR manager

 

 

Types of IS

Many types exist. They all depend on what level of the organization we are looking at.

Decision Support Systems (DSS)

A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities

 

2 Responses to “How IS aids decision making”

  1. sad111350396 February 18, 2013 at 10:09 am #

    Really interesting post, I liked the way you used Netflix as an example as a new service that has “completely changed the model of the movie industry” and that you used others examples like Amazon and Tesco clubcard to help explain Customer and Supplier Intimacy, good post and easy to understand.

  2. sad111302881 February 18, 2013 at 6:06 pm #

    Thank you glad you enjoyed it! In today’s business environment most decisions cannot be made without consulting some technology or IS!🙂

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