Dells Approach to Strategic Information System - Case Study Example

?Realising the Benefits of Strategic Information Strategies The study mainly reveals the importance of information strategy within the global scenario. The study also brings forward the implications of Strategic Information System (SIS) within an organisation’s sustainability in the global market. Dell is evaluated as the organisation, which has successfully been able to meet the global requirements by adapting strategies related to SIS. The findings also revealed that factors such as communication, commitment, executors, tactics and strategy formulation among others have assisted the company to mitigate the global issues accordingly. Table of Contents Abstract 2 Introduction 4 Identification and Analysis of Factors Affecting Information Strategy 5 Strategy Formulation 5 Relationship amidst Differentiated Functional Departments and Strategy Level 6 Executors 6 Top Management 7 Middle Management 7 Lower Management and Non-Management 7 Communication 8 Implementation Tactics 8 Commitment 9 Review of Dell’s Approach to Strategic Information System Given the Likely Impact on Global Issues 10 Critical Analysis of Dell’s Application and Benefits of Strategic Information System in Mitigating Global Issues 13 Conclusion and Recommendation 14 References 15 Introduction Strategic Information System (SIS) frames a vital constituent of the operations of any modern day organisation. It is essentially a process for performing a decision- making strategy of the on-going activities of the business. It has been taken into consideration that facilities associated with the application of the strategic information system lays a greater impact upon the individuals, employees and the entire society. With emergence of globalisation, the application of SIS has become an integral part for ensuring sustainability of the organisations operating within this global scenario. Furthermore, by observation the SIS, it is viewed that it is as a channel for gaining opportunities. On the basis of the information based on the application of SIS, it has been ascertained that once an organisation invests on such advanced applications, it becomes difficult for it to turn-back. Such application demands higher investments for effective and optimal usage to gain sustainability (Galliers & Leidner, 2003). In relation to SIS, it has also been ascertained that SIS is different from the normal information systems. It is an advanced form of the information system, which depicts the impact of the information systems as a viable weapon. On further observations, it has been revealed that as the application of the SIS has accelerated to a greater extent, it has become much cheaper in recent days. SIS has the ability to change the present activities of an organisation. Mainly the information systems introduce the electronic technology within the market, by applying which transaction of products and services becomes easier (Grant & et. al., 2009). This study intends to discuss the identifications along with the analysis of the factors, which mainly affect the information strategy. Moreover, the study also intends to provide a brief description based on a review of an organisation’s i.e. Dell’s approach towards the strategic information system and its impact upon the external issues. With this concern, Dell has been taken under consideration for in-depth analysis of SIS. Identification and Analysis of Factors Affecting Information Strategy Primarily, there arise numerous hurdles during the execution of SIS. By conducting an in-depth analysis, it has been ascertained that SIS implementation is looked upon as a dynamic and complex process, which assists in the decision-making of the managers and the employees. In this context, there is requirement to analyse the factors that are responsible for creating a hurdle in effective application of SIS within an organisation (Li & et. al., 2008). The differentiated factors that are responsible for creating a hurdle in effective implementation of SIS have been explicitly discussed hereunder: Strategy Formulation Various observations depict that default designing and framing of the strategies limit the effective implementation of SIS. It has been ascertained that efficient execution cannot overcome the limitations of a bad strategy. Moreover, in terms of specification, numerous researches reveal that strategy formulation lays greater impact upon the implementation procedures. Furthermore, it is necessary for the decision-makers to adapt such policies to find out whether the implemented strategies will work or not. Moreover, it has also been affirmed that there lies a higher compatibility between the selection of the strategy type and its efficiency. Considering the strategy formulation, it lays an impact upon commitment and the social harmony. In essence, strategy formulation becomes a challenge with regard to effective implementation of SIS (Li & et. al., 2008). Relationship amidst Differentiated Functional Departments and Strategy Level It has been ascertained from various studies that effectual relationship between the functional departments of an organisation and varied strategies associated with it lays a greater impact upon the strategy implementation outcome. Furthermore, in accordance with the business strategy, it is essentially divided into three types such as ‘prospectors’, ‘differentiated defenders’ and ‘low-cost defenders’. The aforesaid three factors are likely to lay an immense impact on strategy implementation. These factors primarily entail elements such as relationship amidst the corporate-business sector, inter-functional sector and the marketing policies. Functional competencies such as resource allocation, participation in the decision-making process and inter-functional conflict create a hurdle in the implementation of the SIS effectively (Li, Guohui & Eppler, 2008). Executors Executors resemble the group, which participate in the decision-making procedure related to SIS implementation. Moreover, this group comprises three layers of top management and non-management team. It has been noticed that strategy formulation is greatly affected by the quality of the people being involved within the SIS implementation. In this context, quality refers to the skill, competencies, experiences, attitude and ability of the individuals participating within the decision-making procedure. Strategic decision-evaluation procedure frames an important benefit for the executors. Coordination amidst the intellectual group fosters higher quality strategies, which directly affect the overall development and the profit margins of an organisation. Furthermore, in relation to the effective implementation of SIS, it has been ascertained that the involvement of the entire organisation fosters positive outcome. The responsibilities of the executors have been given hereunder: Top Management The top-management team of any organisation comprises higher authorities such as the president, vice-president, owners and senior executives. According to the researchers, it has been ascertained that top level management plays a crucial role with regard to strategy formulation and applications. There exist diversified roles associated with the top level management, while framing advanced strategies related to the implementation of the information system. As it has been reviewed that the top level management has greater knowledge regarding organisational goals and objectives therefore it has necessitated their presence during formulation and implementation of the SIS strategies. In essence, the observations reflect the leadership implications over the SIS formulation and implementation (Li & et. al., 2008). Middle Management In this segment, the responsibilities lie on the shoulders of the middle management executives. It mainly illustrates the execution of the leadership quality in mitigating the challenges emerged during the effective formulation and implementation of SIS within an organisation. Furthermore, in-depth researches have also revealed that relationship between the top and the middle management lays an immense impact on the SIS formulation along with implementation (Li, Guohui & Eppler, 2008). Lower Management and Non-Management In keeping with lower level employees and non-management, it has been ascertained that insufficient capabilities of the employees to perform the activities usually lead to ineffective strategy formulation along with execution (Li & et. al., 2008). Communication Considering communication as a factor creating hurdle in SIS formulation and implementation, it can be ascertained that business communication is a vital component in formulation and implementation of strategic information system. Furthermore, it has ascertained from the researches being conducted in the present day context that business communication contributes by a considerable extent to corporate communication. It has been noted that for an effective formulation and implementation of strategic information systems, it is necessary to communicate the advanced policies and designs to be taken under consideration. In order to communicate effectively, it is necessary to design efficient strategic information system. This acts as a benefit of SIS in the field of communication. SIS facilitates to bring about change within the organisational culture, environment and entire system. Therefore, it necessitates the effective flow of communications amidst the human resources of an organisation (Li & et. al., 2008). Implementation Tactics Differentiated tactics result in the effectiveness of implementation and formulation of strategic information systems. According to the recent observations, it has been ascertained that when intervention tactics are applied by executors, higher success rate related to SIS formulation and implementation has been determined. There are basically two types of tactics i.e. intervention and participation tactics. On further analysis, it can be observed that intervention or the persuasion tactics refer to the strategy formulations and adjustments during the implementation stage. Whereas, participation tactics refer to the stage of execution of the strategy being framed, this demands the participation of the entire organisation. In case of the persuasion tactic, it is applied to involve the authorities to convince the employees about the change, which is going to occur within the organisation (Li & et. al., 2008). Commitment Commitment frames a vital element in case of any operational activities. In-fact, success can be only determined by enduring strong commitment towards attainment of determined goals and objectives. Shared understanding amidst the executors in charge of formulating and implementing SIS requires immense commitment in-order to foster overall change within an organisation and direct the employees towards the changed policies for growth prospects. Involvement along with commitment must be adequately adhered during the entire implementation process. As stated by Li & et. al. (2008), “there are three dimensions of commitment that emerged as central factors which directly influence strategic outcomes: organizational commitment, strategy commitment and role commitment” (Li & et. al., 2008). Thus, the aforesaid factors depict the generalised ideas and concepts in a broader context, which assist in determining the vital reasons that create a hurdle in implementing SIS technologies effectively. In order to derive a narrower idea, Dell incorporation has been selected as an example, which will reflect the organisational strategies and techniques related to information systems being applied for gaining competitive advantage over other firms within the global market. Herein, further discussions will be considered for deriving specific knowledge about the implication and advantages of SIS application within a particular organisation i.e. Dell. It will ensure an in-depth analysis of the advantageous receivables by applying advanced strategies related to the information system. Review of Dell’s Approach to Strategic Information System Given the Likely Impact on Global Issues Dell incorporation has been considered as an example for deriving an in-depth knowledge about differentiated aspects of information system and its implications over the external global issues. The personal computer’s market greatly depends upon certain variables and factors. These variables are primarily adapted by Dell to gain competitive advantages over others. Price, quality, performance and availability are viewed as the basic requirements for sustainability of personal computers within the global market. Application of internet within the organisation has given Dell a new way of extending its reach amidst the customers for the direct sales. Furthermore, it has been considered that by incorporating the automated techniques such as order entry and product configuration among others within the organisational operations, Dell has facilitated accelerated revenues (Kraemer & Dedrick, 2001). Intently, it has included internet facilities to coordinate suppliers and occupational partners for the on-going process being involved in operational activities. In the year 2000, Dell had taken measures in redefining its traditional operational activities. Dell has successfully gained the title of being the e-commerce pioneer and has shared its expertise amidst the consumers to enhance their e-commerce abilities. Dell incorporation was established in the year 1984 by Michael Dell. The company started its operations of direct sales through telephone along with delivering Personal Computers (PC) according to the clients’ specifications. In the mid-90s, Dell had assumed a tremendous rise in profit margins and had achieved the top position amidst the other PC providers. This success being endured by Dell was basically associated with competitive scenario; fall in the prices of the PC’s and losses being incurred by the other PC makers within the market. Application of advanced information systems has given the organisation a greater boost within the global competitive market scenario (Kraemer & Dedrick, 2001). The major competitors of Dell in the global market are Apple Incorporation, Hewlett-Packard and IBM among others. Dell has emerged with advanced strategies in relation to its direct sales operations. According to the company reports of Dell, it has been determined that it has mainly indulged its efforts in order to attain lower total cost. Furthermore, the report also reveals that Dell has set up its own sales team. As the organisation expanded, it further executed its thought process in inculcating advanced technique for growth and development. The application of internet has changed the strategies of Dell. It has successfully implemented the technique that has drawn attention of the consumers. Dell has very logically applied internet to meet the requirements of its valued network, which incorporates its suppliers, distributors and service providers among others. The vital strategies adapted by Dell rest basically on its knowledge about the effective application of ‘E-techniques’, which is a part of information systems (Kraemer & Dedrick, 2001). The role of information systems within the operations of Dell has been significant especially related to customers’ related business. Furthermore, it has also been ascertained that multiple systems have been applied within the organisation in order to streamline the overall procedures. With the advent of globalisation, the global market has emerged to be technology driven, therefore the advanced information system strategies being adopted by Dell has given it a new mind-set and an opening to enter the market and create competitive advantage over others. The strength of Dell is its customers’ direct operations. It has been ascertained from the recent observations that direct business with the customers’ assists the organisation in understanding the prevailing tastes and preferences of the consumers along with their wants and needs. Leadership quality of Dell’s management can be determined as its strength, which has enabled it to confront the competitors and maintain sustainability within the global context. Financial stability, expansion capabilities and information systems among others act as the strength of the organisation. Selection of the technological process acts as the weakness for the company (Kraemer & Dedrick, 2001). The core business of the company basically relates with the efficient application of the information systems. According to the recent reports related to Dell, it can be affirmed that there are certain specific roles assigned to information systems, which lay an impact upon the operations of Dell. SIS within Dell enhances the relationship existing between the organisations and its suppliers, customers and service providers among others. Furthermore, effective information system has fostered effective flow of communication within the organisation, which has enhanced the working system along with the process being involved for developing relationship with the customers. Moreover, with the application of the advanced information systems, it can be taken into consideration that it assists the company in framing new policies and bringing about changes within the operational practices. In the similar manner, the adaptation of SIS by Dell has fostered change within the internal environment of the company and has helped it to gain sustainability within the competitive market scenario. Another vital importance of information systems is its ability to provide access to the information related to the organisation. It is feasible for the functional departments to gain knowledge about their job roles and responsibilities, which becomes easier by adapting advanced information systems within the organisation (Callon, 2004). Moreover, implementation of SIS within Dell has provided the company an opportunity to communicate effectively with its client base, suppliers and service providers among others. This ensures a smooth flow of operations within the distribution channels and the value chain. Thus, it can be ascertained that Dell has achieved its height of prominence in modern scenario largely by adapting the technique of strategic information systems as an advanced mechanism for gaining sustainability in the global scenario (Callon, 2004). Critical Analysis of Dell’s Application and Benefits of Strategic Information System in Mitigating Global Issues It has been critically analysed that it has become quite difficult for organisations operating in the global market to become successful as challenges lie in multitude. This scenario necessitates the application of advanced information systems strategies to mitigate the global issues. With the emergence of globalisation driven practices in the modern scenario, multinational companies have appeared gradually, which has created the requirement for sustainability strategies to mitigate the challenges created by the multinational companies. Furthermore, it has also been ascertained that in order to meet the global issues, differential strategies are required to be adhered at diversified levels. Regional, national, corporate and individual levels are a few such fields, which lay a greater impact on mitigating global issues (Chen & Harris, 2007). Dell has applied advanced information system strategies to mitigate the global issues. Concerning the issues related to information systems, it varies from country to country. Dell has applied efficient measures to mitigate such issues. In the aforesaid segment, it has been determined that there are certain factors, which create hurdles in the implementation of information system within the company. Considering strategy formulation, it reflects an important aspect. The company has successfully laid its strategies, which has further assisted it to gain a better place in the midst of its competitors. Moreover, executors have also laid an impact on Dell’s success in meeting the global issues. It is the knowledge and the ability of the higher authorities to understand the global requirements and frame strategies accordingly. Furthermore, effective communication, efficient implementation strategies, commitment and tactics among others are a few such strategies, which have facilitated Dell in mitigating the global issues successfully and managing its sustainability within the competitive environment (Chen & Harris, 2007). Conclusion and Recommendation To sum up, it can be affirmed that the study has revealed the importance of strategic information systems within the present day context. The different factors that create a hurdle in the implementation of effective information systems within organisations have also been evaluated. By adapting information technology as a mechanism, an organisation brings about changes within its entire operational process. Dell has been considered as an organisational example for gaining in-depth knowledge related to the application of the information systems. Furthermore, the study has revealed the company’s success in global market in terms of adapting the information technology as its modern tools. Information system has assisted Dell in attaining a better position amidst its competitors by adapting SIS, which is a part of strategic information systems. Furthermore, in-depth analysis of the reports of Dell has provided an insight about the factors such as commitment; executors, communication and tactics among others that have helped it to mitigate the global issues successfully. As the days are passing by other companies are also getting updated with the modern techniques and mechanism. Therefore, in order to gain sustainability in the competitive market scenario, it is necessary for Dell to be in continuous touch with global knowledge and technological advancement. It can be recommended that it intends to replicate greater correlation with the customers’ demands in order to generate greater profitability in future. In this endeavour, the approach of customer-centric strategy can be optimum in the coming years. Through a greater focus on information systems management, it can ensure enhanced reach within the global market place. References Chen, C. C. & Harris, A. L., 2007. Corporate IT Strategies in the Global Economy. Ivy League Publishing, pp. 119-150. Callon, J. D., 2004. An Analysis of a Company Using Strategic Information Systems to Sell Products Direct. Information Systems, pp. 1-39. Galliers, R. D. & Leidner, D. E., 2003. Strategic Information Management: Challenges and Strategies in Managing Information Systems. Butterworth Heinemann, pp. 1-617. Grant, K. & et. al., 2009. Strategic Information Systems Management. Cengage Learning EMEA. Kraemer, K., & Dedrick, J., 2001. Dell Computer: Using E-commerce To Support the Virtual Company. Centre for Research on Information Technology and Organizations, pp. 1-34. Li, Y. & et. al., 2008. Making Strategy Work: A Literature Review on the Factors influencing Strategy Implementation. ICA Working Paper, pp. 1-46. Read More