Role of Strategic Information System in an Organization

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Сonsideration of the development of firms, their competitiveness, their advantages, with access to resources than other companies. And efficient use of their resources, which leads to high growth in income, profitability and production.

Introduction

Firms which are experiencing competitive advantage tend to get access to resources than other companies can. Such organizations also exercise the efficient use of their resources resulting in high revenue growth, profitability, and production. These factors give rise to high valuations in the stock markets compared to those of competitors in the same market. However to understand, how to write the results section of a dissertation this may not be possible without identifying and embracing the role played by the Strategic Information System (SIS), in an organizational setup.

Role of SIS in Competitive Strategy

Apart from direct competition from other business entities, the other forces in a market environment includes; new entrants, customers, suppliers, and substitute products. Effective management of these factors requires that organizations should design strategies that can enhance competition in their industry such as the use of SIS, which is important for many reasons.

First, SIS can help to ensure low-cost leadership because the use of information is vital in lowering operation costs in the production process. An example is the use of a system to create efficient customer response as a link between the consumer of a product to distribution, as well as production and the chain of supply. Having such a system in place helps reduce the cost of keeping inventory and distribution to the warehouses.

Second, the use technology empowers an organization to advertise and differentiate its products in the market from those of competing firms. The use of information systems enables an organization to acquire and share information regarding its new services and products introduced into the market and boosting the presence of its products or services. Additionally, information technology can also be used to focus on the specific target market. With the latest information schemes, a company will have an added advantage in reaching the targeted customers compared to potential competitors. Furthermore, an organization will be able to prepare accurate marketing and sales data and its analysis for future purpose. For example, hotels can introduce a customer information system with the ability to determine active guests to reward them or present them with various privileges to earn their loyalty and retain them.

Finally, strategic information system can help strengthen the relationship between the supplier and the customers, like in the cases of the Chrysler Corporation, where information schemes are used to facilitate the process of accessibility between the supplier and customers. Once a strong relationship has been established, then the likelihood of switching costs without much negative impact can take place, because the cost of changing a product to that of a competing firm becomes high and discourages clients to opt for such changes. Such a strategy will encourage customer loyalty.

Strategic information systems have been helpful in the creation of competitive intelligence when information concerning a product is collected and analysed. It can also offer a critical analysis of the market, the environment of operation, as well as other competitors with a view of effective competition to remain relevant in the industry.

Conclusion

With the introduction of the Internet, accessing current information and using it for effective competition is the only ground for proper marketing. For instance, it is what regulates entrants into any given market. The bargaining power has also been raised by the use of strategic information systems as customers have unlimited access to find low-cost providers from the Internet just by a single click. For instance, any organization that intends to take part in businesses such as tourism and travel, have to know how to establish an effective SIUSs and use it to their advantage against their competitors.

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