Information Technology as the Most Important Driver for the Business Growth - Essay Example

?How Information Technology can be used to achieve sustainable competitive advantages Introduction In the past few years, the information technology has turned out to be the most important driver for the business growth. In this scenario, the organizations that make effevtive use of information technology can only gain a competitive edge over their competitors. One of the most important uses of information technology comes in the firm of information systems. In fact, these information systems allow business organizations to manage business tasks effectively. Hence, in order to survive in this growing competitive business world it is essential for the business organizations that they design and put into practice information systems that provide them with correct data and facts with regard to marketplace knowledge, competitive capacity and customers. In addition, the basic purpose of developing and implementing the modern and up-to-date information systems in the business and corporate structures is to enhance the overall corporate performance and enhanced management of the business data (Laudon & Laudon, 1999; Turban et al., 2005). Literature Review According to (Turban et al., 2005, p.18) “an information system is set of different aspects that work collectively in order to gather, operate, store, assess, and transmit information with the intention of performing a particular task.” Basically, the products and business processes to develop those products differ from organization to organization. Hence, a business organization can make use of information system for different purposes according to their needs and requirements. For instance, an organization can make use of an information system to deal with its human resource related processes or for dealing with accorunts and financial matters. In this scenario, as an organization is based on different aspects such as departments and employees in the same way an IS encompasses a variety of aspects like that inputs (whuch an information system receives in the forms of data and instructions from its users) and outputs (which are delivered by the information system in the forms of results, calculations and reports). Thus, it provides the desired outputs by carrying out certain operations on the inputs. Value Chain Model Operations: This process involves the activities that are involves in the transformation of inputs into final products. In this scenario, information systems can play a significant role. As the figure 1 demonstrates, this process can be supported through computer aided manufacturing. These systems can be used in design and development of the products (CiteHR, 2013; Schwanzer, 2007). In this scenario, information systems cannot only be used as a wonderful tool for automating desired business processes and activities but they can also be used to support the business organizations in designing and putting into practice a number of value added-systems in the business organizations like that the majority of bussiness organizations combine and arrange their manufacturing cycle along with information systems so as to confirm that the outputs it generates comply with the organization’s requirements and needs as well as various quality management mechanisms. The research has shown that the implementation of information systems allows the business organizations to make their business operations simple and do not waste their precious time in performing unnecessary operations. Additionally, the majority of business organizations take benefit of information systems to incorporate control and measures to human resource related activities, in an attempt to make sure that only human resources having the proper privileges and authority can be allowed to perform particular tasks. Also, the use of information systems allows the business oraganizations to throw away chronic actions and improve correctness, supporting company’s employees to contemplate on more difficult processes. Furthermore, an organization can also use information systems for effective project planning and completion of projects through well-organized assessment and supervision aligned with established criteria (Davoren, 2012; Topi, 2008). Outbound Logistics: This process involves tasks that are linked with gathering, storage and delivery of final or developed products to the customers. In this scenario, information systems can be used to keep the data regarding these processes. At this stage, information systems can be useful in determining the customers for the final products (CiteHR, 2013; Schwanzer, 2007). In the past, the majority of business organizations have used traditional ways to keep track of their data and information. However, with the advancements of technology especially the emergence of information systems facialiated the business organizations with fashionable and inclusive databases to store all conceivable aspects of data on the subject of the business organization. As it has already been discussed in detail that all the information systems adopt efficient way of collecting, storing and processing the information, which are used by the business organizations to discover and put into practice solutions to deal with business processes and issues. Additionally, the use of these innovative information systems allows business organizations to collect data from a number of sources. In this scenario, these sources can comprise both internal and external attributes, keeping the firm well informed with outside opportunities and issues as well as internal performance (Davoren, 2012; Topi, 2008). Support Activities Procurement: This process involves various activities involved in buying material and service input, machinery and equipment (CiteHR, 2013; Schwanzer, 2007). The research has revealed that in order to attain competitive advantages the business organizations should give particular attention to their supply chain as it is a strategic weapon to develop and improve sustainable competitive edge, for instance, by reducing costs associated with certain processes and improving customer satisfaction. Additionally, the supply chain is important to deal with for the reason that business competition is currently at SC level where a system of partner organizations compete. In addition, one of the most important aspects of SC is influencing the knowledge, practice, capabilities and skills of the supply chain associates. In this scenario, the success of supply chain associates in successfully and professionally partnership decide their accomplishment as a SC and sustainability of their competitive advantage . In this scenario, information systems provide an excellent support in dealing with all the suppliers stakeholders. Additionally, the information systems provide instant access to all the stakeholders to the latest information (Nicholas Mavengere, 2012). Human Resources Management: This process involves management of human resource training, recruitment of human resources and development is involved in each and every process in value chain. At the present, the majority of business organizations use special information systems to deal with these processes (CiteHR, 2013; Schwanzer, 2007). These information systems are known human resource information systems (HRIS). Basically, the human resource information system is an information system that is employed to gather, document, store, evaluate and access data on the subject of a corporation’s human resources, however it does not mean that there will be a reduction of administrative processes. However, the importance of information systems for human resource management can be explained in different ways. For instance, the business organizations can make use of information systems to get support through information systems in collecting, storing and processing data for building reports, summarizing and speeding up the operations and having control over the available data, reducing costs associated with human resources, and offering varied and timely information to the top management of the business organization, which facilitated the management to attain quality tactical decisions associated with human assets (Maguire & Redman, 2007; Dorel & Bradic-Martinovic, 2011). Firm Infrastructure: It involves the general infrastructure of the business organization. In this processes the activities are considered as a whole to provide a platform to the business organization. In addition, these activities can involve general management, finance, accounting, strategic planning and legal affairs. In order to deal with these processes there exist a large number of information systems that automate the processes of the entire organization. For instance, the implementation of a SAP information system can allow a business organization to deal with all these processes effectively (CiteHR, 2013; Turban et al., 2005). Read More