Strategic Business Objectives Of Information System

Strategic Business Objectives of Information System

• Operational Excellence
  • Businesses constantly look for ways to make their operations more efficient in order to increase profitability. The most significant instrument accessible to managers for obtaining a greater level of productivity and efficiency is the combination of information systems and technology. Example: We see that Walmart's income has increased after the information system was implemented.
• New Product, Service and Business Model
  • Technologies and information systems are crucial enablers for a company to develop new goods and services as well as a completely new business strategy. The music industry of today is very different from that of ten years ago, for instance.

Note

A business model describes how a company produces, delivers and sells product/service to generate wealth.

• Customer-Supplier Intimacy
  • Customers typically respond by coming back and making additional purchases when a company knows and treats them properly. Through the use of information systems, we can obtain digital information about our customers, which can be utilized to maintain closeness with them. As a result, customers and suppliers become more devoted to our business, which in turn boosts sales.
• Competitive Advantage
  • There is a probability that businesses will gain competitive advantages when they accomplish one or more of the aforementioned goals. Performing better than a rival, charging less for a superior product, and responding to customers and suppliers immediately, all at a higher sell and greater profit than our rival.
• Improved Decision Making
  • Managers make decisions in the absence of an information system using forecasts, educated guesses, and luck. As a result, there may be an excessive or insufficient production of goods and services, inefficient resource allocation, and slow response times. However, the adoption of technology and information systems has now made it possible for managers to use real-time data from the market while making decisions.
• Survival
  • Business organizations also spend money on information systems and technology because they are essential for conducting business and are run by industry. For instance, if XYZ bank uses ATM cards, ABC bank will have to adopt them in order to survive.

Emerging Digital Firm

• An organization is said to be digital if almost all of its key commercial relationships with customers, suppliers, and workers are conducted online.
• Digital businesses are far more flexible since they can sense and react to their environment much faster than traditional businesses.
• Exceptional potential for more adaptable global organization and management are provided by digital businesses.
• Digital businesses, like Roberts', perform all functions without human intervention.
• CISO and IBM are regarded as fully digital businesses.

Perspectives of Information System

• In technical terms, an information system can be defined as a group of interconnected parts that gather, process, store, and supply information to support authority and decision-making inside an organization.
• Managers and employees may use it to visualize difficult concepts, comprehend challenges, and develop new products.
• Information systems contain data on significant individuals, locations, and objects either inside the organization or in its immediate surroundings.

The information needed by enterprises to make decisions, control operations, evaluate issues, and develop new products or services is produced through three activities in an information system. The following three activities are listed:

• Input
• Processing
• Output

Feedback is output that is sent back to the relevant member of the organization for evaluation or correction as part of the information system.

Dimension of Information System

This broader information system literacy is something that the area of management information systems (MIS) strives to achieve. When it comes to the development, use, and impact of the information systems utilized by managers and employees in the company, MIS addresses both behavioral and technical issues. Three key areas, which are described below, can be used to explain the information system dimension:

• Organization
  • An organization's information system is essential. Different positions and specialties make up the organizational structure.
  • An organization's people, structure, operational processes, politics, and culture are its essential elements.
  • Each one makes an effort to stand out while yet having a lot in common with other companies.
  • There are organizations everywhere, and each has its own workplace and structure to suit its demands or, in some cases, its habits.
  • A business team needs individuals with skill and training in a variety of areas.
  • An organization's structure establishes a distinct hierarchy of power and responsibility that may be organized as a pyramid or a hierarchy.
  • Long-term strategic decisions about products and services are made by senior management.
  • Senior management's plans and programs are carried out by middle management.
  • Operational management is responsible for keeping an eye on the company's everyday operations.
• Management
  • It is the responsibility of management to make sense of the various situations that an organization may encounter, to make decisions, and to create an action plan to address any issues that may arise.
  • Managers are aware of environmental threats and commercial issues. In order to synchronize the work and achieve success, they assign the human and financial resources as well as the organizational techniques for dealing with such issues.
  • Before the business event leaves the showroom, every excellent manager has a business plan.
  • The goals, dreams, and realities of managers in the real world are described by the corporate information system.
  • It is significant to highlight that managerial responsibilities and choices vary depending on the organizational level.
• Technology
  • One of the many instruments managers employ to adapt to change is technology. Hardware, software, data management, networks, and users are the components that are used. Hardware technology is the IS's structural framework, which organizes the components of computers. Software is how computers are used in various sectors. For gathering information and moving it from one place to another, communication technology is a key component of information systems.

Reference

Laudon, Laudon, "Management Information Systems Managing the Digital Firm", twelfth edition