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.
(404 words)
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.
