Samsung Mobile Company - Essay Example

? SAMSUNG MOBILE COMPANY Introduction An information system strategy is defined by Khanna, Song & Lee p. 142) as the process of analyzing a company’s information systems in terms of their contribution to promoting the success of the organizational units as the route of enabling the company to have a competitive advantage over its rivals. On the other hand an information audit is the evaluation of the information use within a company in addition to the business resources and their flow within the operations of the organization. During an information audit, existing documents and human resources are evaluated to determine whether they effectively contribute to the attainment of the company’s goals and objectives. According to Dishman and Calof (2008, p. 769), all information resources are assessed during the information audit to find out whether they are effective in the successful execution of specific tasks within the organization. Therefore an information audit is vital in determining whether a company is utilizing its information resources adequately to enable it to compete favorably within the business environment. As a result it is evident that an information audit has a major contribution to a company’s information systems strategy. This paper gives a critical analysis of the contribution of information audit to the information systems strategy with special reference to the Samsung Mobile Company which is the case study in this discussion. In addition, the application of competitive intelligence in strategic information system analysis is discussed in this paper with examples of Samsung Mobile Company’s Critical Success Factors being used to discuss how information audit contributes to a company’s information systems strategy. Bateman (1997, p. 167) asserts that it is through an information audit that a company is able to identify all the information resources available to it. Samsung Mobile Company has vast information resources both within and outside the organization. These resources include human expertise. Information can also be obtained through research on specific aspects of business operation such as marketing and training. Identification of the information resources of the company is crucial to enable the management come up with strategic information system strategies. These strategies include the development of various computer applications which are to be used in effective management of the company’s resources as a way of facilitating the achievement of objectives. According to Chen et al. ( 2010, p. 233), the production and marketing functions of a company perform optimally when information systems are used to facilitate the production process of a company in addition to the promotion of its brands. This is essential in making a company have a competitive advantage over other businesses dealing in the same line of products. Through an information audit, Samsung Mobile Company will be able to have strategic plans for the application of technology in promotion of its mobile products to have a competitive advantage over its competitors such as Nokia and Sony Erickson. As explained by Dubois (1995, p. 20), an information audit is essential for all organization because it enables them to identify and determine their information needs. Information is very essential in any production company because it acts as the most important resource for the successful achievement of goals and objectives. Samsung Mobile Company should do an information audit to enable its management to make strategic plans on the information technology which is needed to enable the company meet its information needs. For example the company needs information about the political, economic, social and technological environment which will allow it to compete favorably with other mobile manufacturers. However Akhavan, Jafari and Fathian (2006, p. 97) point out that identification of the information needs during an information audit should focus on the information which is relevant to the operations of the organization. Information is a basic critical success factor of the Samsung Mobile Company and hence the company should seek to perform an information audit to determine its information needs. Information on the market, technological changes and competition is a critical success factor for the company. However the company management must realize that an information audit would mean that the company has to make strategic information system plans to help it acquire systems which will be used to retrieve the needed information. Li and Lu (2011, p. 139) point that information audit helps a company to determine the costs and benefits which are associated with information resources. This is important in the strategic information systems plans because the company is able to know how much it will cost to obtain information technology for the management of information. Moreover, the benefits associated with the resources of information to the company are useful so that an accurate evaluation of the profits which result from the utilization of information. For the Samsung Mobile Company proper utilization of resources is a critical success factor and hence the benefits of information resources should outweigh the associated benefits for the achievement of its goal to be possible. The analysis of costs and benefits of the various information systems used within Samsung Mobile such as Management Information System is critical for the success of the company’s business operations. Information systems used by the company should enable it to attain a higher competitive ground as compared to other mobile operators. Companies use information system strategies to make their operations less costly and more efficient as compared to the competitors. On the other hand McLaren (2011, p. 909) argues that the expenditure of information systems should be realistic and feasible so that the goals of the company can be realized without a strain in its financial resources. An information audit is described by Popa Toma and Amacei (2009, p. 165) as a means of identifying the opportunities available to an organization so that it would apply its information resources and systems in business openings to make it more competitive in the market. This shows the convergence between information audit and information system strategy. The opportunities which Samsung Mobile has include the application of innovative technology to produce better mobile products as compared to those of the competitors. Opportunities in the market are demonstrated by Newman and Kim (2011) as a critical success factor of a company because they would be used to facilitate the achievement of its goals through expansion into the emerging markets. An information audit will enable Samsung Mobile Company to identify specific opportunities such as the availability of IT experts who would provide valuable information for the production of innovative mobile products. It is important to note that the opportunities available within the market can only be identified through the application of technology by the human capital of the company. This is because technology facilitates the acquisition of relevant information such as the emergence of new markets for the company’s products. In addition, there are opportunities for research and human resource development. It is therefore through an information audit that inadequacy in the human capital can be identified which will warrant for the need for training of the staff. Samsung Mobile Company’s success is attributed to the proper business control which acts as a critical success factor for the company. Boiko (2008, p. 49) says that an information system strategy plays the role of facilitating effective control of a company through the use of appropriate business management systems. This is made possible through an information audit which acts as the basis for decision making in the integration of investment in technology to the strategic initiatives of the business. Through an information audit therefore the management of the Samsung Mobile Company is allowed to make strategic decisions on the kind of information technology that the company should invest in. proper investment in technology is described by Marketwatch (2009) as the most suitable strategic plan for a company because of the benefits associated with technology in facilitating business functions. Though a strategic technology initiative, Samsung Mobile will be enabled to plan for investment technology which will lead to the manufacture of better smart phones. The mobile phone market is attracted by new and innovative technologies which will enable the company obtain a higher share of the mobile phone market as compared to its main competitors such as Nokia. The flow of information within an organization’s business functions is a critical success factor which determines the ability of the business to meet its goals and objectives. Kaplan (1995, p. 22) emphasizes that it is through an information audit that a company is able to evaluate the effectiveness of information flow within its subsystems. Samsung Mobile utilizes information systems in its production finance and even human resource subsections. These subsystems are important to the overall attainment of the mission of the company. This is because they work together towards a common mission and vision of the whole system. The system theory is applied by the company in its management and information systems act as the facilitator of the management process. This is through the management information systems such as decision support systems and executive support systems. Therefore it is essential for the company to perform an information audit to determine whether the information flow within its subsections is efficient. Boiko (2008, p. 50) adds that the flow of information from the top management to the lower management levels and vice versa is critical for the success of business operations. Therefore an information audit will enable the company execute a proper information system strategy to use information systems as the facilitator of information flow within the company. Competitive intelligence of Samsung Mobile Company has been made possible through effective use of information systems to manage its human capital. The staff of the company acts as the major determinants of the company’s success. Therefore through the company’s information system strategy, human resource management systems have been applied to make maximum utilization of its human resources. In addition, the staff has been motivated by the efficiency associated with technology in executing business functions such as finance information. Sauter and Free (2005, p. 43) say that an information audit is essential for companies in evaluating the information resources available within the human capital. The staff of Samsung Company is full of ideas especially the production staff designers and e engineers of its mobile models. Through an information audit the company is likely to know the information power of its staff. However the determination of the creative information that the company’s staff possess may be very difficult. In addition the information the company’s human capital possesses and their ideas are not important if they are not utilized in the promotion of innovative production. Lim (2009) illustrates that an information audit is essential in information system strategy because it enables a company management to have strategic plans which accommodate the ideas of its human resource in the strategic development in production. The use of innovative computer applications in the management of information and promotion of products by Samsung Mobile is a form of competitive intelligence. This is illustrated by the fact that the company has been able to manufacture highly innovative mobile devices such as the Samsung Galaxy which have made the company to be highly competitive in the market in addition to the attainment of the largest share in the smart phone market. The future of the company in terms of the application of innovative applications within its mobile devices should be promoted by the performance of an information audit which will determine the information needs about the market. The customers of the company require specific features within the devices and this can be determined through an information audit. However Kaplan (1995, p. 23) argues that an information audit may not actively provide information on the market needs and preferences. An information audit usually identifies that information is needed about the needs of the market which is made possible through an active market research. In accordance to Li and Lu (2011, p. 139), an information audit is necessary in facilitating the process of managing information about markets so that proper methodologies are applied in using the information to attain a competitive advantage in the market. Samsung Mobile requires a more effective and integrated information policy or strategy. However the information strategy of the company is integrated an information audit is necessary to ensure that loopholes within the information policy are identified. This will assist the strategic information system plans of the company to recommend and apply relevant technologies in ensuring that the information system is more integrated as compared to that of the company’s competitors. As a result of an information audit therefore, the company management must be prepared for amendment of the information policies or creation of new policies to replace those outdated because information technology improves rapidly in the modern era. Being up to date is Samsung Mobile’s critical success factor. This is demonstrated by the production of mobile phones which applies modern hardware and software technologies by the company. Verschoor (2007, p. 44) illustrates that the policies of accompany on information systems are usually amended after a thorough information audit. This warrants for the need for an information audit by Samsung Mobile. In accordance to the assertions of Lim (2009), the external environment of a company is very influential to the success of a company. Political, legal, economic, technological and social factors must be balanced by the company because they determine its ability to survive in the competitive environment. These factors have an impact on the kind of information system an organization uses. For example the legal framework on security and privacy of information will dictate the kind of applications used within a company’s information systems. As a result of these assertions, Samsung Mobile Company should perform and information audit to determine whether its information systems are secure. Moreover it is necessary that the social factor is considered in the mobile applications installed within the company’s devices. This is because of the importance of the perceptions of the users on their decision to purchase a product of technology. As explained by Vilsanoiu and Serban (2010, p. 57), an information audit allows companies to lay information system strategies which ensure that the hardware and software applications used are adherent to environmental factors which determine success. Information system strategies are necessary in systematic planning of the introduction and application of telecommunication and computing technologies within information systems as explained by Lim (2009). Before Samsung Mobile Company introduces new technologies in the management of its information system, it is necessary for an information audit to be done so that the needs for technology are identified. Management is a critical success factor for the Samsung Mobile and therefore the application of efficient and innovative technology in the management of its human, information and human resources are critical. This calls for the need for an information audit which is important in the identification of the improvements in the management which require application of technological applications and hardware. Dishman and Calof (2008, p. 766) emphasize that in competitive intelligence, proper management of both human and information resources are important in gaining a competitive edge against competitors. However it should be remembered that management of financial resources through the use of technological applications such as financial management systems is equally important for the success of a company. DiMattia and Blumenstein (2000, p. 48) say that the report of an information audit helps the management of a company lay information system strategies which will enable the staff be aware of how important Information Resource Management is in facilitating the overall success of a company. Samsung Mobile needs to continually create awareness among its human capital that IRM is critical for attaining a better performance as compared to the business rivals. Loudder at al. (1992) explain that an information audit is atoll which is used to identify the information gaps among the staff on Information resource Management. The information obtained by the information audit is thus important to lay strategic information plans by the management of a company which will lead to training of the staff on IRM. This can be done through seminars or other interactive sessions in addition to the issuance of documents which describe the aspects of IRM and their importance. This will cause the staff to effectively utilize the power of information technology and the related technology in the management of information and communication within the organization. In return the functions of the company will be more efficient and thus production will be higher leading higher profits that the competition. According to Qiu (2008, p. 814), competitive intelligence involves proper planning which aims at performing better that business rivals. Information system strategy therefore aims at planning for the creation of system architectures which utilize modern technology to increase productivity and quality. Samsung Mobile Company needs an information audit to identify the suitable architectures for efficient flow of information which will lead to increment of productivity. Through proper technological architectures and application of business software, data development is enabled. However Samsung Mobile must determine first whether there is need for the improvement or upgrade of its information system architecture before it embarks in the performance of an information audit. An information audit is essential in the monitoring of the standards of information management, policies, procedures and guidelines as explained by Lim (2009). The need for the performance of an information audit by Samsung Mobile Company is to guide the amendment of the procedures, policies and guidelines of information management as contained in the strategic information system plan. If proper procedures are followed during the production quality of products is guaranteed. Furthermore, proper policies and guidelines in the promotion of Samsung Mobile’s products are likely to lead to greater success. The policies and procedures of Samsung Mobile can thus be described as the critical success factors which facilitate the attainment of the objectives of the company. Conclusion Samsung Mobile Company needs to perform an information audit to guide its information system strategy and thus enable the company to attain a competitive advantage over its competitors. The illustration of the critical success factors of Samsung Mobile such as its information and human resources in addition to the use of innovative technology shows that an information audit will facilitate further growth. The strategies of management of the company’s information system are aimed at causing efficiency hence increased production and quality of its mobile products. The ability of the company in surviving in the highly competitive mobile technology industry demonstrates the use of the concepts of competitive intelligence in overcoming competitors. 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