Ways technology can be used to create competitive advantages

The arrival of technology has transformed traditional business environments and practices. Processes that used to be manual are now automated, and electronic means of communication have been heavily integrated into today’s offices.

Information systems (IS) have been around for a while, but as they evolve, there are continually new options, offering many practical and strategic possibilities. An IS system isn’t just a collection of hardware and software, it’s much more than that, it’s a tool. This tool can be used in a number of ways, and the value of it really depends on how a business opts to utilize it. Many businesses today have realized the power their technology possesses, but may not understand the whole benefit that can be achieved. Once strategic knowledge is realized, the potential is endless.

Installing automation simply for the sake of having it guarantees it’ll be a just an ordinary (and expensive!) business possession, but grasping an understanding of the ways it can be used is the real value. Strategic planning in utilizing information systems is the key to gaining a competitive advantage. Managerial decision makers don’t want to purchase new systems for the upgrade unless there is a plan to maximize its capabilities.

Don’t think of your information systems as a commodity, view these as assets and a means to gain a competitive lead in your industry.

Ways you can maximize your information systems:

• Enhance jobs: Implementing IS to make jobs more efficient frees employees to move onto other important tasks. No longer do staff 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 provides the ability to strategically define your organization in a way that makes the business stand out from the competition. Information systems can be integrated in such a way where customers can be offered something no one else provides. With a unique design that makes your business appealing to do business with, you can easily increase your customer base.
• Coordination of supply and distribution: IS provides a terrific way to monitor and track inventory. Typically, managers will use information system to track goods and to manage their entire supply/chain management process. If there’s a problem, you can easily pinpoint and enact a solution before becoming a costly issue.
• Customers: Integrating business processes with the Web is a great way to maximize your technology. You can generate efficiency, effectiveness and enhancement all at the same time. Employee burden is relieved and you can augment your customer’s shopping experience at the same time.
• 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, you’ll need the most up to date information available. Properly designing your IS to custom fit your needs will enable you to accomplish this. You’ll get fast action when you 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 your business.

When implementing IS, technology standards are important, but inter-connectivity is essential. Providing a way to network within your own organization and with partners and customers is a vital component. If a company has the latest and greatest technology, even better than competitors and suppliers, it doesn’t do much good in seclusion because the business is isolated from the others. Ultimately, this ends up becoming less cost-effective and more time-consuming, which decreases the value of IS.

Great benefits come with utilizing management information systems. The business value in this investment are less redundancy (which saves on man-hours worked), efficiency, better data integrity, streamlining of processes – the possibilities are endless.

With proper planning, a company can maximize profit while decreasing overhead costs. Implementing such a system will be costly initially, but if business requirements and processes are properly and accurately identified, the payoffs are vast. Investing in IS keep your business competitive and a strong ability to maintain status in the global economy.

Companies that do not implement technology into their organizational structure will likely find themselves falling by the wayside. Many businesses who do not have a Web presence, or engage in eCommerce, will probably find themselves being ousted by their competitors. Today, a networked presence is vital to organizations, and implementing IS systems to help run businesses processes. When exploring the value of IS from both a technical perspective and a competitive advantage perspective, information systems are a definitive and effective means to expand your business.

Source: http://www.insidebusiness360.com/index.php/ways-technology-can-be-used-to-create-competitive-advantages-27253/

Questions:

1. The author displays that information systems promote the efficiency of businesses. Do you think this is true for every business?
2. Do you think that businesses need less workers the better the information system is?

3. Is is possible that an information system is “too” good to benefit the business?