Topic 1: Information and competitive advantages

Based on my understanding, Information System is a cohesive combination of processes, concerning the collection, transforming, storing and retrieval of (output) data which contain news for the user, regardless of the technical means applied. Nowadays, Organization need information system to achieve their vision and mission as information systems is typically designed to improve productivity where an organization should devise methods for measuring the system’s impact on productivity.

Basically, there are many type of information system which tend to plays different functions within depends on types of organizations, management levels of organization, roles of organization  and  so on.  For example, at the clerical level, employees are supported by office automation systems and functional area information system. At the operational level, managers are supported by automation systems, functional area informational system, decision support systems, and business intelligence systems. At the managerial level, functional area information systems provide the major support.

Naturally, Competitive advantage in an organization is recognized through its competitive strategy which is a description which helps to identify an organization’s objectives, strategies, policies and goals that needed as guide to achieve their vision and mission. Therefore, information systems tend to help in an organization’s success by focus on the traditional sources of competitive advantage such as reducing cost and improve customer service performance. By apply strategic goals and improve performance and productivity, information system helps an organization gain a competitive advantage or decrease competitive disadvantage in many different ways.

As I know, Competitive advantage is usually embodied in either a product or service that has most added values to consumers and that is unavailable from the competition. There are a five-force model covers factors that lead organization to seek competitive advantage: the rivalry among existing competitors, the threat of new market entrants, the threat of substitute product and services, the bargaining power of buyers and the bargaining power of supplier. Strategies to address these factors and to attain competitive advantage include cost leadership, differentiation, niche strategy, altering the industry structure, creating new products and services, improving existing product lines and services and other strategies.

In conclusion, establishing and maintaining a competitive advantage is complex but an organization’s survival and prosperity depend on its success in doing so.  To be competitive, a organization must be fast, nimble, flexible, innovative, productive, economical and customer oriented. In must also align its IS strategy with general business strategies and objectives.

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Reference:

R. Kelly Rainer, C. G. (2011). Introduction to Information Systems: Enabling and Transforming Business. United State: Quebecor World Versailles.

Ralph M. Stair, G. R. (2010). Principles of Information Systems. United States: Cengage Learning.