Why are Information Systems so important to the success of organisations? When can an Information System deliver (sustained) competitive advantage to organisations?

30 Nov

As I want to wrap up this period of blogging, I would like to use that opportunity to thank the organiser of this forum, he/she is a think-tank, and an epitome of wisdom. I equally share my respect with those students who during this blogging exercise remained focused, very careful with their choice of words, such that nothing offensive was observed by me from all the blogs I have read so far, congratulations. Contributions are not educating, but also full of humour and fun indeed. Cheers to you guys!
I agree with the opinion of Turban et al, (2006), in which he stated, that strategic information system is characterised by its ability to significantly change the way in which companies and organisations conduct their business. This blog will explain in detail, how information system can help organisations achieve competitive advantage. According to Michael Porter (1980), information systems exist to help organisations achieve their goals and objectives, and organisation’s goals and objectives are determined by its competitive strategy which in turn determines the structure, features, and functions of information systems. Nevertheless, organisations tend to examine their industry structure in order to determine a competitive strategy, and that strategy determines value chain, and the value chain in turn determines the business process. Finally, the form of business processes determines the structure of an information system. http://www.prenhall.com/behindthebook/0132337770/pdf/Kroenk_Chapter%203%20Combined.pdf

In strategic information systems, are embedded, the following features; decision support system, enterprise resource planning, database systems, and the real-time information systems which intend to sustain a rapid-response and quality indicators.

In the recent time, companies and organisations are beginning to recognise the external use of information systems as competitive weapons. The above assumption can be attributed to factors such as; decline in the cost of supporting ITs, structural changes in the economy due to global competition, and finally, the deregulation of some industry sectors such as, transportation and financial services.

In particular, “customer resource life cycle” is a model that best explain the use of information systems technology in competitive strategy. The customer resource life cycle model considers the relationship between a firm and its customers and how such change can be improved through strategic application of information system technologies. (Blake Ives and Gerald P. Learmonth, 1984).

Feel free to give your comments.

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2 Responses to “Why are Information Systems so important to the success of organisations? When can an Information System deliver (sustained) competitive advantage to organisations?”

  1. hans October 30, 2013 at 3:33 pm #

    the answer is not conceivable !

    !

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