Management Information System in Terms of Competitive Advantage - Essay Example

Explain how the MIS Management Information System) function area can leverage , information, data and knowledge in terms of competitive advantage. Student Name Course Name Instructor Name Date Explain how the MIS ( Management Information System) function area can leverage , information, data and knowledge in terms of competitive advantage. As the world is heading towards globalization, the businesses are further expanding so as to pose a competition in the whole market. In other words the competition in the world is on an increase and the firms are looking out to different options through which they can tackle the competition accordingly. Management Information System is a fairly advanced technique that is used by many businesses all over the world so that they are able to simplify their tasks. The businesses that use this system perform different tasks through it but many of these businesses do not use it up to the mark of its performance. The system itself can be designed in such a way that it can control the information of the business so as to provide it with a competitive advantage. The system can be used differently and this essay would revolve around the particulars of this system as to how it can help the businesses flourish in a competitive world. Management Information System is defined as a set of technologies which include hardware and software along with human elements so that the decision making process of the respective business can be made easier (Bidgoli, 2010). This clearly tells us that the system is a way through which the businesses can integrate information and present accordingly to the relevant individuals. The system is designed to simplify decisions and carry out processes through which the decisions are made quickly and efficiently. In general the firms are given competition in the industry through different means. Porters Five Forces allow to understand these competitive forces as they tend to exist in the industries accordingly. These five forces revolve around products, bargaining power of customers and suppliers and the threat of new entrants. Management Information System takes a leap on these five forces to ease it on the business who will use the system in an efficient manner (Laudon & Laudon 2013). MIS should always be aligned with the objectives of the business so that it can be used efficiently to break down the threats of the competitive forces. Information Technology should always be constructed in a way so that the profitability of the company is increased with every step that the business takes. Information technology works by the methods of numbers and the business should always identify its goals and strategies with the help of the system. The progress of the businesses can be monitored with the help of information technology and this in turn would help the stakeholders decide in accordance to the progress that has been made. Management Information System can help to achieve low operational costs as compared to manual systems by going through the inventory when required. The products can be designed in such a way that the consumers are satisfied with the use of information technology. IT can help in taking the views of the customers and then provide the stakeholders with the relevant comments. This can help in differentiating the products in accordance to the varying demands of the consumers. It can further analyse the trends of the customers and focus on the areas where the competitors lack and this can help the firm take an advantage in terms of market niche. The firm can reach out to customers in this niche for a better product and preference. It can also help in forming a relationship with the customers based on their preferences which would attract the customers and hence not lose the loyalty that has been gained from these customers (Laudon & Laudon 2013; McLeod & Schell 2007). Several examples of the businesses can also be quoted who are successfully using MIS to grow their business in accordance to the demand. Wal-Mart is a multinational which uses the system to manage their inventories and lower their operational costs. It also sends automated replenishments for their inventory when a purchase is recorded at the counter (Laudon & Laudon 2013). Similarly another company named ABC Inc is using the same system to ease the work of the customers that order through their company. ABC Inc is a shipping company which helps the customers to ship certain products wherever they want. With the help of the information systems the company has been able to achieve a stable interface through which the information of the customers is saved so that it saves their time when they order in future. In particular the management information system is used differently by ABC Inc here to target the customers. They have simply used the tactics of time saving for the consumers (Kroenke 2014). Dell has personalized the information of the customers in a way through which they can manufacture products that cater the needs of their consumers. There are ways through which the consumers can choose any specific product and customize it in accordance to their requirements. Similarly IT can also help track the preferences of the customers and the Hilton Hotels OnQ system helps them to track the behaviour of the consumers accordingly. These consumers are then targeted according to the habits that they generally have and this in turn increases the rate of profitability for the organization. Amazon is another organization which uses MIS efficiently by tracking the user activities. The website then offers the consumers the line of products that they have previously purchased and this increases the likelihood of sales. In other words information technology can prove to be fruitful only if it is used in the right sense (Laudon & Laudon 2013). Innovation has always been tied to the concept of MIS in the modern society. Hemmatfar et al point out in their article that MIS is currently being used by many of the organization all over the world to come out as innovative than their competitors. This innovation gives the relevant organization an edge over its competitors. They further put forward that the relationships between the customers and the suppliers can also be improved with the correct usage of information system by the organizations. The suppliers and customers can be locked in by IT so that they cannot switch on to the competitors and this indeed provides a competitive edge to the organization who is successfully able to achieve this. Information technology has also been able to achieve cost reductions and this can be found in the example of an e-ticket. A traditional airline ticket would cost $8 whereas the e-ticket would be for $1 which clearly shows the benefits of information technology in this field (Hemmatfar, Salehi, & Bayat, 2010) Lastly it can be said that the Management Information Systems is proving to be a system that is providing many organizations with a leverage in terms of competitive advantage. It is helping the organizations collect data in such a way that they can increase their profitability. The system can not only be applied to the information of the consumers but it can also be applied to the internal workings of the organization. The logistics and operations of the company can be successfully controlled by the MIS and this can help them lower the costs effectively. These measures can help the firms to gain a competitive advantage by reducing their costs and providing an even better product than the competitors. With the increase in competition of the businesses these days it almost becomes necessary for an organization to integrate Management Information System in their daily workings. References Top of Form Top of Form Top of Form Top of Form Top of Form Bidgoli, H. (2011). MIS 2010. Mason, Ohio: South-Western. Hemmatfar, M., Salehi, M., & Bayat, M. (June 21, 2010). Competitive Advantages and Strategic Information Systems. International Journal of Business and Management, 5,7.) Kroenke, D. M. (2014). Experiencing MIS. Harlow, Essex: Pearson. Laudon, K. C., & Laudon, J. P. (2013). Essentials of management information systems. Boston: Pearson. McLeod, R., & Schell, G. P. (2007). Management information systems. Upper Saddle River, N.J: Pearson/Prentice Hall. Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Read More