Re Use UK Information System Strategy - Case Study Example

Re-Use-UK IS Strategy By Location Contents Re-Use-UK IS Strategy Contents I.About Re-Use UK 3 Re-Use-UKMission 3 2.Re-Use-UK Objectives 3 3.Re-Use UK Business model 4 II.Situation analysis 4 1.Internal 4 2.External 6 2.1.Competitive environment 6 2.2.IS/IT environment 8 Cloud computing: Cloud computing involves the delivery of hosted services over the Internet (Palvia & Palvia 2013). It allows the company to consume resources as a utility rather than compelling it to maintain computing infrastructures internally. End users can obtain computing resources for the workload they require at a given time. 9 Big data: Big data describes structured, semi-structured and unstructured data that can be used to obtain useful information for an organization (Grundy 2006). Re-Use UK requires big data to retain any information that it may require when a certain need arises. 9 III.IS Strategy 9 IV.IS strategy development process 10 References 11 Hill, C, and Jones, G 2009, Strategic Management Theory: An Integrated Approach, Cengage Learning, Mason. 12 I. About Re-Use UK 1. Re-Use-UK Mission Re-Use UK is a company that operates in the area of online services providing a platform to facilitate goods reuse and sharing. This is believed to contribute to a greater cause, namely reducing the environmental damage due to waste produced by humans. The Mission of Re-Use UK is to protect the environment from degradation through providing an opportunity for the society to rethink the way goods are used and to change the way society disposes of goods they no longer need. 2. Re-Use-UK Objectives The Objectives of the company are focused on two main areas - care for the environment and care for the people - those in need and those who want to dispose of their excess goods in an environment-friendly and at the same time practically beneficial way. A useful model in defining objectives is to follow the SMART (specific, measurable, agreed upon, realistic, time/cost limited) model in order to meet client and stakeholder expectations (Richman 2006). More specifically, the organization formulates the following objectives for the first 3-5 years of its existence: Help 100 000 low-income households annually Help reuse 400 000 items of furniture and other usable personal and household items annually Expand coverage to Birmingham, Manchester, Newcastle upon Tyne and Glasgow areas Achieve and sustain customer satisfaction rate of 98% Sustain sufficient workforce to support and develop the platform and the business activities 3. Re-Use UK Business model The main idea behind Re-Use UK is to provide an online platform where the interested users can exert two types of actions - request items or offer items. The transaction of items is to be realised for free or on a barter basis. Re-Use UK’s service is to offer a virtual space where users can meet and arrange exchange of items. The company does not participate in the physical exchange of the goods. To ensure security throughout the process, users are required to submit their feedback post-exchange or collection. The online platform is equipped with the following features: creating an account description posting interest in the item indication after exchange feedback II. Situation analysis 1. Internal A value chain refers to processes that help to create and add value to a product at all steps during the production process. The value chain model views the company as a system that involves subsystems that have inputs, processes and outputs (Olla & Patel 2002). These subsystems entail the acquisition and use of resources such as labour, money, administration and management among other issues. Porter explained several activities that are common to all businesses, which he divided into both primary and support activities. (Source: Brocke and Rosemann 2014) Primary Activities Primary activities of Re-Use UK relate directly to the maintenance and support of a product and consist of the following (Olla & Patel 2002): Inbound and outbound logistics: At Re-Use UK, inbound and outbound logistics may not apply. There are no suppliers who may help to create value for a product receiving and taking the products to consumers. Marketing: Marketing is the process where the company promotes its online platform and educates people on how to take care of the environment. The benefits Re-Use UK offer to its customers and how they get information are sources of value. Service: The Company offers some activities that maintain the value of the services it offers its customers. A company’s service helps to distinguish it from other competitors and give it a unique identity. Support Activities Support activities support the primary activities. Support activities include the following (Olla & Patel 2002): Human resource management: Re-Use UK has a method of recruiting and training employees so that the company’s activities can go on well. Workers are a significant source of value, so Re-Use UK can create a clear advantage with good Human Resources practices. Technological development: Technological development relates to the management and processing information, and protecting the knowledge base of Re-Use UK. Reducing information technology expenses and employing the latest technologies are sources of value creation. Infrastructure: It refers to the companys support systems, and all the functions that allow it to have on-going operations. Legal, accounting, and general management are critical infrastructure that the company use to its advantage. 2. External 2.1. Competitive environment The Porters Five Forces tool is a critical tool that helps a company to understand where power lies in a business environment. Porters Five Forces helps Re-Use UK understand the strength of its current competitive position, and where it considers moving into to take fair advantage of a situation of strength. Five Forces Analysis argues that there are five forces that decide competitive power in a business environment. The five forces include (Grundy 2006): Supplier Power: A company needs to assess how it may be easy to raise prices. It is driven by suppliers of inputs, the distinctiveness of products/ services, and the cost of moving from one to another. The fewer the suppliers are, the more it may need the help of suppliers. It will also determine the strength of suppliers at a given time. Buyer Power: In some cases, buyers have the power to drive prices of goods and services down. The number of buyers, the relevance of buyers to business, and the cost of shifting to a different product can impact the company. If Re-Use UK deals with few, but powerful buyers, they are in a position to dictate terms to the company. It is important for the company to have many customers who may not influence its decisions to a greater extent. Competitive Rivalry: The Company needs to consider the number and capability of its competitors. If Re-Use UK has many competitors who can offer equally attractive products and services, the company will most likely have little power since customers may move to a competitor if they fail to get a good deal. Conversely, if no other business can do what the company can do, it will have incredible strength. Many organisations that have some resemblance to Re-Use UK operate in the UK and can be considered competitors. One organization that operates on a nationwide basis and has the same goals as that of Re-Use UK is Furniture Reuse Network. The threat of Substitution: Re-Use UK customers may find a different way of doing what the company offers. If the substitution is viable, it will weaken the power of the company. Platforms such as eBay and Amazon offer a broad variety of choices for different prices, and their services and products may substitute that of Re-Use UK. It is critical for the company to have unique services so that it cannot be substituted by other companies. The other organization that has a nationwide coverage is Reuseful UK. The organization ensures that there is a supply of reusable and hard to recycle from business to scrap stores. The organization focuses on business partners, and Re-Use-UK can use the opportunity to attract such partners. The threat of New Entry: Re-Use UK influence may be affected by the ability of other players to enter its market. The influence of Power is also affected by the ability of people to enter your market. New competitors may enter the online business if it requires little capital to enter the market or if there are few economies of scale. The company needs to have strong and durable barriers to entry to having an advantage in the market. Since entry into the online market appears to be relatively easy, Re-Use UK must be ready for new entrants who will be a threat to its market. 2.2. IS/IT environment The following are some of the IS/IT environment that are available for use for Re-Use UK. Social networking: Re-Use UK can use social networks such as Facebook and Twitter to connect with potential people who may require its services and give feedback immediately. The company can also use the platform to inform the public on how to conserve the environment (Lovelock and Wirtz 2010). Desktops: The Company has Network-connected workstations that can be used by workers to search for information online and communicate with people who want information about the company. Cloud computing: Cloud computing involves the delivery of hosted services over the Internet (Palvia & Palvia 2013). It allows the company to consume resources as a utility rather than compelling it to maintain computing infrastructures internally. End users can obtain computing resources for the workload they require at a given time. Big data: Big data describes structured, semi-structured and unstructured data that can be used to obtain useful information for an organization (Grundy 2006). Re-Use UK requires big data to retain any information that it may require when a certain need arises. Mobile devices: Mobile devices help in communication and sharing of information. Mobile devices such as cell phones allow a company to communicate with its customers and suppliers to ensure that its activities are performed. III. IS Strategy Re-Use UK faces some operational and strategic challenges. These challenges include the competitive environment, the need for efficiency savings, and the change of technology. The main way to address this challenge is through improvement of information systems.  The IS strategy of Re-Use UK covers the following themes (Reich & Benbasat 2013): Responding to Business Needs: The company needs to align its IS applications to the needs of all users. Sustainability of Support and Management: The Company needs to establish a standards-based approach to Information Technology developments. It also needs to create a ‘baseline’ where new developments will be assessed. IS Selection Strategies: The company may decide on out-sourcing, out-hosting or internet hosted IS to establish the assessment criteria. Coordinated Planning: It can focus resources on developments that maximise benefits to the company at operational and strategic levels (Gamble and Thompson 2010). Continuous Improvement: The IS must match business needs and technological advances. Data Architecture: It involves the establishment of data storage systems with a single data owner’. The data owners will be people responsible for ensuring that data integrity is maintained and provided to users in management reports. IV. IS strategy development process The Information System strategy of Re-Use-UK will be developed in the following steps (Davenport 2013): Defining business and organisational strategy: The Company will have first to define the strategies behind its operations. The companys strategy must be streamlined with that of the IS. Strategic objectives: Every organization has strategic objectivities that guide its activities. The process of IS strategy development must ensure that it agrees with strategic objectives. Evaluating value activities of the company: The activities of Re-Use-UK must be well-defined to ensure that they serve their purpose. Evaluating the external environment: The company has to evaluate the external environment and ensure that the new IS strategy will fit into the latest technology. Success factors: It is important to identify the objectives that the company has already realized. The new IS strategy must be geared towards helping the company realize other objectives. Defining areas of improvement: There are other areas that the company may want to make an improvement. The new IS strategy needs to be designed in a way that these areas can be improved. The new IS strategy can be improved by implementation of technological innovations such as cloud computing that lowers bandwidth costs and assist in coordination and management. The IS strategy serves to respond to change in technology that happens from time to time (Reich & Benbasat 2013). References Brocke, J, and Rosemann, M 2014, Handbook on Business Process Management: Introduction, methods and information systems. Davenport, TH 2013, Process innovation: reengineering work through information technology, Harvard Business Press. Gamble, J, and Thompson, A 2010, Essentials of Strategic Management: The Quest for Competitive Advantage, McGraw-Hill. Grundy, T 2006, Rethinking and reinventing Michael Porters five forces model. Strategic Change, 15(5), pp. 213-229. Hill, C, and Jones, G 2009, Strategic Management Theory: An Integrated Approach, Cengage Learning, Mason. Howell, M 2009, Critical Success Factors Simplified: Implementing the Powerful Drivers of Dramatic Business Improvement. Productivity Press, New York. Lovelock, C, and Wirtz, J 2010, Services marketing: people, technology, strategy, Prentice Hall. Olla, P, & Patel, NV 2002, A value chain model for mobile data service providers. Telecommunications Policy, 26(9), pp.551-571. Palvia, PC., & Palvia, SC 2013, Understanding the global information technology environment: representative world issues. Strategic Information Management, pp. 151. Reich, BH, & Benbasat, I 2013, 10 Measuring the Information Systems–Business Strategy Relationship. Strategic Information Management, pp. 265. Read More