For my last blog I will be talking about the ways in which information systems can offer organisations competitive advantage. As different types of information systems grow and expand they offer new possibilities to companies. An information system isn’t just a collection of hardware and software, it’s a tool that can help businesses gain market share and compete on a global level, when used effectively.
There are many different ways in which you can maximize information systems:
Enhance jobs: Implementing IS to make jobs more efficient frees employees to move onto other important tasks. Staff no longer have to spend valuable time sorting through statistics, data and other pertinent information because the system has ability to gather it for them. IS provides a cost-effective way to conduct transactions, significantly cutting down the time involved in processing.
Differentiation: IS has the ability to strategically define an organization in a way that makes the business stand out from the competition. Information systems can be integrated in such a way that customers can be offered something no one else provides. With a unique design that makes an organisation appealing to do business with, you can easily increase your customer base.
Coordination of supply and distribution: IS provides an effective way to monitor and track inventory. Typically, managers will use information systems to track goods and to manage their entire supply/chain management process. If there’s a problem they can see it very easily.
Decision making: Information systems allow the vital element of providing “real-time” information. In today’s competitive environment, a manager needs to make rapid decisions and to do this effectively they need the most up to date information available. Designing an IS to custom fit the needs of a company will enable them to accomplish this. They’ll get fast action when they can quickly assess a situation.
Communication: Information systems possess ways to effectively and efficiently share information. Automated communication is a time and resource saver and can add tremendous value to a business.
Overall, information systems can offer a company many ways to save time and money on the small things. This leaves them with plenty of time to concentrate on the competition and the market they are competing in. Information systems will be of great use to all us Commerce students in the future and all this information we have learned as a result of this blog will be of benefit to us whatever profession we end up in.