175-Competitive Advantagewhen you do things better than your competitors, charging less for some products, andresponding to customers and suppliers in real time this will leadto higher sales and higherprofits than your competitors.6-SurvivalInformation systems are not a luxury. In most businesses, information systems and technologyis the core to survival.e.United Parcel Service Inc. (UPS), is a global company with one of the most recognized andadmired brands in the world, using information systems, access to global resources, and anintegrated network of physical, technological, and human assets. Apply Porter‘s Five Forcesanalytical framework to UPS. Your answer should include critical elements and supportedwith evidence/ justification.Porter Five Forces Analysis is a strategic management tool to analyze industry and understandprofitability for a certain industry. Managers can use Porter Five Forces to understand how thefive competitive forces influence profitability and develop a strategy for enhancing. So byapplying this firm to one of the biggest American multinational package delivery and supplychain management company andone of the leading firms in the Air Delivery & FreightServices it will help the organizations to understand the factors affecting profitability , and can Show
It’s inconceivable for businesses to operate without significant investments in systems. E-Commerce firms like eBay, Google and Amazon will simply vanish without employing information systems. Service industries like finance, real estate, insurance, education, medicine and travel will cease to operate if not bolstered with information systems. Likewise, retail giants such as Sears and manufacturing firms like General electric and General Motors bank upon information systems to thrive and prosper. Tall buildings with elevators, offices, and telephones were used to be the foundation of business in 20th century but information technology can solely determine the success or failure of a firm in 21st century. It’s not possible for a firm to implement corporate strategies and achieve corporate goals without efficient use of information system. A company decision like launching new products or enhancing market-share depends on the quality and kinds of information systems in the organization. Specifically, business firms invest profoundly in MIS in order to achieve six strategic business objectives:
Customer and Supplier Intimacy Knowing millions of offline and online customers can bring windfall gains to the company which is why companies invest a significant amount of time and money to enhance intimacy with the customers. MIS and technologies help companies great deal to engage with customers. Operational Excellence Businesses continuously better the efficiency of their business in order to achieve higher profitability. MIS and technologies are amongst the most effective solution available to a company to ameliorate operations. Competitive advantage When a firm provides superior products at low cost and respond to customers in lesser time fetch higher sales and revenue to the company. Improved decision making Right information at right time is required to make an informed decision. But if a company counts on best guesses, forecasts and luck, the result will be misallocation of resources, poor response time and over or under production of goods and services. New products and services and business models MIS and technologies enable firms to create new products and services as well as new business models. A business model explains how a company produces, delivers and sells a service or product to create wealth. Survival Firms also invest in information technologies to meet the necessities of doing business. For instance, In the New York region introduced the first automated teller machines in 1977. Source by Rashmi Arrora  Strategic Business Objectives of Information Systems Although many managers are familiar with the reasons why managing their typical resources such as equipment and people are important, it is important to examine the growing interdependence between a firm’s ability to use information technology and its ability to implement corporate strategies and achieve corporate goals. Specifically, business firms invest heavily in information to achieve six strategic business objectives: Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival Operational Excellence Businesses continuously seek to improve the efficiency of their operations in order to achieve higher profitability. Information systems and technologies are some of the most important tools available to managers for achieving higher levels of efficiency and productivity in business operations, especially when coupled with changes in business practices and management behavior. New Products, Services, and Business Models Information systems and technologies are a major enabling tool for firms to create new products and services, as well as entirely new business models. A business model describes how a company produces, delivers, and sells a product or service to create wealth. As successful as Apple Inc., BestBuy, and Walmart were in their traditional brick-and-mortar existence, they have all introduced new products, services, and business models that have made them even more competitive and profitable. Customer and Supplier Intimacy When a business really knows its customers, and serves them well, the way they want to be served, customers generally respond by returning and purchasing more. The result is increased revenues and profits. Likewise with suppliers: The more a business engages its suppliers, the better the suppliers can provide vital inputs. The result is a lower cost of doing business. JC Penney is an excellent example of how the use of information systems and technologies are extensively used to better serve suppliers and retail customers. Its information system digitally links the supplier to each of its stores worldwide. Suppliers are able to ensure the continuous flow of products to the stores in order to satisfy customer demands. Improved Decision Making Information systems and technologies have made it possible for managers to use real-time data from the marketplace when making decisions. Previously, managers did not have access to accurate and current 1 What are the strategic business objectives of information systems?Specifically, business firms invest heavily in information to achieve six strategic business objectives: Operational excellence. New products, services, and business models. Customer and supplier intimacy.
What are the objectives of information system?Information systems manage the information necessary in all parts of an organization. Information is created, distributed, stored, searched, used and changed in the everyday operations of an organization.
How do successful businesses use information systems to achieve their strategic business objectives?The management of your company can use information systems to come up with strategic plans and make best decisions when it comes to taking business steps. A good information system evaluates information from all the company's sources and manages to come up with the best conclusion in regards to the current economy.
Which are of the following are part the six strategic business objectives of information systems?Explanation: The six important business purpose of the information system are; operational excellence, survival, new products and services, improved decision making, customer and supplier intimacy and competitive advantage.
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