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.
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.
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