Why are information systems so important to the success of an organisation?

7 Nov

Information systems are important to the success of an organisation because they allow organisations to implement and augment their business strategy.  A business strategy is defined as “a method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem.” (http://www.businessdictionary.com/definition/strategy.html). In an article by Michael Gleeson (2004) he notes that traditionally information systems were used for the “automation of existing manual and pre-computer mechanical processes”, however as time went on firms began to realise that information systems were “critical to the implementation of a corporation’s strategy” (http://www.comp.dit.ie/rfitzpatrick/MSc_Publications/2004_Michael_Gleeson.pdf).  He further notes that “strategy and Information Systems (IS) are inextricably linked” (Gleeson, 2004). One of the main objectives of a business strategy is to gain a competitive advantage  against a firm’s competitor. For example Dell gained a competitive advantage over its competitors by being the first PC manufacturers to  take customer orders over the internet   There are many ways a firm can achieve a competitive advantage through such things as  the creation of new products and services, establishing alliances, differentiating products and services but to name a few.

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One Response to “Why are information systems so important to the success of an organisation?”

  1. 04ac November 9, 2012 at 9:24 pm #

    Interesting blog post ‘ah88rockybay’. I recently posted a blog on a similar topic on strategic alignment and competitive advantage https://sopinion8ed.wordpress.com/2012/11/03/how-strategic-alignment-can-help-a-business-gain-competitive-advantage/
    I noted you made the point of how “as time went on firms began to realise that information systems were “critical to the implementation of a corporation’s strategy”, a point which I also found while doing research on the topic!

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