Strategic Information System
Importance of using data for day-to-day operations and big data to a company
Nowadays, data gathering assist a person to comprehend the business and customers relatively more straightforward. It has become more accessible for companies to have fewer dangers in dealing with massive data due to available analytic tools. The use of data in the daily operations assists in the following ways:
Assists in making better decisions-the the use of data in the day-to-day operations of the company help the management in making excellent pronouncements in the daily running of a firm (Pence, 2014). Business having a website, social media handles and accept payments through electronic means collect gather data about users’ habits, demographics, and web traffics, among others. The collected data can be analyzed to make informed decisions. Whereas there are multiple influences whenever a decision is made, nothing is persuasive, like possessing hard data backups in place that could assist with pertinent information needed. Business harness data to make decisions about the prediction of sales trends, better management of efforts of marketing, the increment of customer orientation, getting new clients, tracking interactions of customers in social media, and many more.
Solving problems- data assists in an organization in solving problems. Upon experiencing slow sales in a month, tracking and evaluating data attained from all business processes can assists in uncovering breakdowns in performance. This helps in better comprehending every section of the process and knowing steps that require to be fixed to eliminate the poor-performing tendency (Pence, 2014).
Understand the process- the use of data assists the management to view a performance. A company can collect data to make various teams perform better. Data collectors and analysts are employed to update data about everything happening in an organization to assist in the overall performance of the group.
Improve the process- the use of data in daily operations helps in improving business processes. Thus, management can reduce wasted time and money. At times, a company does feel the impacts of waste. For instance, bad decisions on advertisement can be a significant waste of the company’s resources. With the use of data illustrating how various channels perform, it is possible to the ones which offer the highest return on investment (Pence, 2014).
Similarly, the use of big data in business operations has led to various transformations in the business world. Big data has led to automation. A considerable amount of data can be analyzed instantly through the use of robotic automation. Through scalable infrastructure of IT as well as reducing costs of cloud computing, data collection through automation is within reach. Big data is employed in discovering hidden opportunities that were initially not known to the organization before. Multifaceted data sets can be utilized in developing new products.
Achieving a competitive advantage through the use of information systems
Competitive edge can be attained through the use of the information system. This can be achieved through the following ways:
Product differentiation- using information systems enable the production of new products and services in an organization. For example, the information system can be used for mass customization, thus leading to the creation of commodities that are tailored to meet the demands of consumers (LaValle, Lesser, Shockley, Hopkins & Kruschwitz, 2011).
Low-cost leaderships- by a firm using information system, low costs of operations can be achieved, thus making the products to retail at low prices (Ram, Zhang & Koronios, 2016). For instance, supply chain management integrating the customer response system to link directly to the customers’ behaviors, distributions, and production assistant in lowering costs of shipping and inventory.
Focusing on the marketplace niche- through using technology, it is easier for the company to put more focus on serving a narrowly targeted marketplace excellently than the competitors (Ram, Zhang & Koronios, 2016). The use of an information system supports the strategy of generating and analyzing data in favor of fine-tuned sales as well as techniques of marketing.
Strengthening the intimacy between suppliers and customers- through using information systems, it is easier to tighten the link with the suppliers as well as develop familiarity with the consumers (Ram, Zhang & Koronios, 2016). For instance, the company can use information systems to promote direct sales to the suppliers as per the production schedules. The suppliers can be allowed through the use of technology in deciding when the supplies should be made. Thus, this leads to the timely production of goods. Robust linkages to suppliers with the clients augment switching costs and loyalty to the company’s brands.
Strategic information system
The use of information systems in achieving a competitive advantage is a vital information system (SIS) since the decision support systems aligned to the information systems make the business to compete favorably in the market. Integrating information systems into the business process assists in meeting business objectives as a result of optimizing all the business processes (Ram, Zhang & Koronios, 2016). Again, database systems have the potentialities of giving the best information for the marketing process, promotion, production, and innovation. The SIS promotes the identification of strategies of data collection to assist in optimizing marketing opportunities within the business.