Q

Essay for Derivation of value from Business Information system by Business Managers to derive value from Business

Home, - Derivation of value from Business Information system by Business Managers

Derivation of value from Business Information system by Business Managers

This memo, hereby, is to address the concerned authority regarding the various strategies that are being implemented by the business managers to derive value from Business Information System.

The concept of Business Information Systems (BIS) is put into extensive use across every industry today. BIS can be regarded as an array of correlated procedures that makes the use of IT infrastructures within a business organization for generating and circulating the required information. BIS also facilitates the process of decision-making, which in turn helps the organization to attain its goals (Alpar, 2016). Several companies invest more than half of their major expenditure in BIS that makes it the most significant investment for the business.

Today, business organizations go through numerous complexities, and thus, there are innumerable challenges that are faced by the business managers daily. Michael Porter’s Five Forces model for Industry Analysis can effectively demonstrate the difficulties in brief.

Threat of New Entrants: In order to survive in the competitive market, it is imperative for the business managers to keep an eye on the upcoming trends in technology, which might potentially bring up new business competitors for them. Globalization has further elevated the possibility. Earlier threats were experienced from domestic organizations, but now organizations have to survive the competition at the global scale.

Bargaining Power of Suppliers: The suppliers often tend to be manipulative towards the business organization, when they become the sole suppliers of raw materials. Thus, the organizations need to reduce their dependence upon a single supplier.

Rivalry among Existing Firms: At times, changes in business strategies in terms of management, ownership, or business policies can impose rivalry from other existing business organizations.

Bargaining Power of Customers: Customers can become vast and influential as a consequence of the share they have in the market (Mursu, 2018).

Threat of Substitute: The effectiveness of a product or service to satisfy the needs of the customers, determines the extent up to which an organization can experience threats of substitute.

However, with the advent of BIS, it has become easier for the business managers to triumph over these challenges, if implemented in a strategic manner.

Improvement of the Business Processes- The BIS helps significantly in improvising the operational as well as Managerial operations of the business organization. It ensures better quality and higher customer satisfaction.

Promotion of Business Innovation- With the help of BIS, it can become easier to create unique and innovative ideas, products as well as services. This will facilitate business expansion and market segmentation.

Mutual Benefits- With BIS, switching costs are created into the relationships between the business and its stakeholders. It renders mutual benefits and thus, no party switches to its potential competitor.

Some other benefits of BIS are- it creates a strategic platform of information and raises an obstacle to entry for its competitors.

Numerous factors can determine the successful implementation of the information technologies and systems (Brandon, 2016). These include environmental factors like competition and globalization, the intrinsic structure of the organization, the structure of the project team, and the proper use of tools and techniques. Keeping these in mind, if the business organizations implement the Business Information Systems, the complexities of the business environment can be handled at ease (Shollo, 2016).

In order to improve the BIS implementation and execution, certGoodman, N., & GOODMAN, N. A. (1968). Languages of art: An approach to a theory of symbols. Hackett publishing.ain steps can be taken. These are

•        Developing an agreement for the usage of technology and IT infrastructure for every staff.

•        Creating an all-encompassing plan for technology and IT infrastructure.

•        Ensuring time-to-timee maintenance.

•        Enforcing policies of privacy and password management.

Leave a comment


Captcha

Related :-