For a business to thrive, it must be ahead of its competitors. Technology has become a central business tool and is no longer exclusive to the IT department. Business executives now recognize the need to be directly involved in managing new information systems (IS). It also requires that businesses figure out strategies that will help exploit IS successfully.
The use of technology supports the overall business strategy and goals. This is achieved by utilizing IS, enabling businesses to increase productivity, decision-making, customer satisfaction, and other business operations, giving them a competitive edge over rivals. Some of the major information systems used to create a competitive advantage include decision support system (DSS), business process management (BPM), transaction processing systems (TPS), electronic data interchange (EDI), management information systems (MIS), and collaborative systems.
Businesses are continuously allocating funds for IS implementation to increase efficiency. However, implementing successful IS requires a clear understanding of the company's goals and careful planning, research, selection, and deployment of suitable systems. It is also worth noting that today businesses are competing on a global scale and not just locally.
Therefore, even as a business chooses systems to work with, it must consider cost leadership, differentiation, innovation, focus, and alliance strategies. Using IS, a company can reengineer business processes to lower its operational costs and prices. This involves strategies such as the automation of processes. Through this cost leadership strategy, it becomes easy to have competitive prices that traditional competitors and new market entrants can't march.
A business can use IS for product differentiation by creating unique products and services. Different companies differentiate in different ways, and the choice of systems plays a crucial role in reaching their target market. An example of differentiation is using 3D printing in product design and manufacturing. This enables a company to quickly create and test prototypes of new product designs and avail them for the market faster than their competitors.
Advances in technology enable businesses to be more innovative. Information systems make research and development an easy task. This makes it possible to create and test different ideas using virtual prototypes. Such information can then be shared with stakeholders using cloud-based collaboration tools and eventually improve the speed and efficiency of the research and development process.
Information systems make creating useful alliances possible as they help businesses stay connected with customers, suppliers, and other stakeholders. A good example is the fast transmission of information to suppliers made possible through a supply chain management (SCM) system. The system, in turn, will make suppliers meet demand and timely delivery, creating efficiency and making customers happy. However, to be successful, a business must first identify systems that will add value, which depends on different business needs.
Today emerging technologies back modern information systems making them more efficient. One such technology is data analytics, which analyzes volumes of collected data and helps better understand customer needs. Machine learning is another technology that harnesses the power of artificial intelligence to deliver actionable insights. However, using the latest IS, gaining a competitive advantage is only possible when the systems are correctly implemented.
The use of technology supports the overall business strategy and goals. This is achieved by utilizing IS, enabling businesses to increase productivity, decision-making, customer satisfaction, and other business operations, giving them a competitive edge over rivals. Some of the major information systems used to create a competitive advantage include decision support system (DSS), business process management (BPM), transaction processing systems (TPS), electronic data interchange (EDI), management information systems (MIS), and collaborative systems.
Businesses are continuously allocating funds for IS implementation to increase efficiency. However, implementing successful IS requires a clear understanding of the company's goals and careful planning, research, selection, and deployment of suitable systems. It is also worth noting that today businesses are competing on a global scale and not just locally.
Therefore, even as a business chooses systems to work with, it must consider cost leadership, differentiation, innovation, focus, and alliance strategies. Using IS, a company can reengineer business processes to lower its operational costs and prices. This involves strategies such as the automation of processes. Through this cost leadership strategy, it becomes easy to have competitive prices that traditional competitors and new market entrants can't march.
A business can use IS for product differentiation by creating unique products and services. Different companies differentiate in different ways, and the choice of systems plays a crucial role in reaching their target market. An example of differentiation is using 3D printing in product design and manufacturing. This enables a company to quickly create and test prototypes of new product designs and avail them for the market faster than their competitors.
Advances in technology enable businesses to be more innovative. Information systems make research and development an easy task. This makes it possible to create and test different ideas using virtual prototypes. Such information can then be shared with stakeholders using cloud-based collaboration tools and eventually improve the speed and efficiency of the research and development process.
Information systems make creating useful alliances possible as they help businesses stay connected with customers, suppliers, and other stakeholders. A good example is the fast transmission of information to suppliers made possible through a supply chain management (SCM) system. The system, in turn, will make suppliers meet demand and timely delivery, creating efficiency and making customers happy. However, to be successful, a business must first identify systems that will add value, which depends on different business needs.
Today emerging technologies back modern information systems making them more efficient. One such technology is data analytics, which analyzes volumes of collected data and helps better understand customer needs. Machine learning is another technology that harnesses the power of artificial intelligence to deliver actionable insights. However, using the latest IS, gaining a competitive advantage is only possible when the systems are correctly implemented.