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MNG03218 Managing Information Systems Innovation

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Question:

For this assignment you will have to prepare a paper that critically discusses how organisations apply the strategic use of IS/IT to achieve IS/IT-enabled innovation (Note: you should try to focus on information systems rather than mobile apps and social media platforms & applications). Some aspects and issues you may discuss in your paper could include (but are not limited to):
 
• Discuss at least 4 examples of the use of IS/IT for innovation.
• Highlight some success factors or some lessons learned (i.e., what went wrong?) for your examples.
• Discuss the impacts of internal factors (e.g., organisational, individual, and management factors) and external factors (e.g., market, industry, social, economic, technological and political/policy factors) on the success (or the failure) of IS/IT enabled innovation.
• Suggest recommendations and guidelines for helping organisations succeed in their efforts to embark on using IS/IT for innovation with good explanation and discussion.
 
 

Answer:

Introduction

The use of Information system/Information technology has become strategic and has a significant impact on the process of thinking, acting and linking of an organisation, inside and outside operations. At present days, most of the organizations in all sectors are fundamentally dependent on the information systems. On the contrary, there are different levels in the hierarchy management of the organizations using IT as one of the main operation domain. Information is generally passed from an enterprise to the suppliers or customers for obtaining or providing a better service. The present study deals with the examples of using IS/IT innovations, success factors or findings from the examples, the impact of internal and external factors as well as recommendations provided to be succeeded in the efforts.  

Examples of using IS/IT for innovation

One of the examples of using IS/IT for innovation is linking to customers and suppliers (Abdel-Maksoud et al. 2015). The applications of the type need a string process from the sharp-end line management. E-procurement and web-based ordering systems like amazon.com are the applications where IS/IT-enabled new and low-cost linkages with the consumers as well as suppliers, the systems are permitting consumers tracking online the progress of orders.

Another example of IS/IT in organizations is enhanced integration of internal procedures. In order to generate effective internal integration of information needs the enterprise overcoming the conventional barriers in order to get successful IS/IT applications. Telstra uses human resource information system to ensure proper degree of access to a variety of internal stakeholders. In addition, it helps to improve applicant database, position inventory, skills inventory, benefit and external databases. The related information about the customers as well as the ability of the organization is delivering the required things. Enterprise resource planning as well as customer relationship management are considered as the applications of IS/IT. Rosemann and vom Brocke (2015) argued that configurable system package has the ability to integrate data as well as procedures within as well as across the functional areas in the organizations.  

Information-based products, as well as services, are the examples of using IS/IT services where the organizations need to add more value to tangible products that are sold through giving extra information-based services (Wirtz et al. 2016). It includes online support, tracking order and order history. The initiatives emphasize depending on the relationship with suppliers and customers. Utilizing e-procurement, organizations can permit customers empowering the employees for making the websites of non-core as well as low value with management of total procedure. It consists of developing the control of purchases (Lee et al. 2015). The rules of purchasing control cover the specific pricing and limitation in spending along with the process of particular products that are ordered as well as cost codes with the order passwords.

Another example of IS/IT is business process redesign. Utilizing IS/IT for realigning the business activities as well as their relationships in order to achieve performance breakthroughs. Changing the method of information is utilized by the enterprise along with trading partners and changing the process of carrying out the value-adding procedure by industry (Veit et al. 2014). Business scope redefinition is also the application of IS/IT where the market or product can be extended based on information as well as changing the organizational role in the industry.

 

Success factors or findings from the examples

Spieth, Schneckenberg and Ricart (2014) stated that different organizations have distinctive characteristics regarding growth, primarily related to the private sectors. Several mail orders, as well as retailing organizations, have segmented customers as per the process of purchasing patterns that are shown through transactions as well as providing different and emphasized catalogues. The analysis of products and market along with the information of external market research that is merged as re-cut in anyways in order to detect proper marketing segmentation along with product-mix (Xiang, Magnini and Fesenmaier 2015). The factors can imply multiple to the use of IS/IT compared to prevailed in past. It can be implied for new ways of thinking related to the techniques of IS/IT for uncovering the scopes and new approaches for managing the applications in order to ensure success. However, it has been observed that considering the success of information systems and technologies (El Kadiri et al. 2016). Technology provides short-term benefits as well as benefits in order to develop new systems and capturing valuable information.  

On the other hand, the existing competition of new entrants of the industry, this could be helpful in redefining relationships through introducing alternative information system. The organizations like to sustain in the industry and use the data gleaned from the systems for improving the products or services for matching the requirement of the marketplace (Ngai et al. 2015). Reviewing IS/IT evolution; the management implications can be portrayed by ascending from the business basement. However, an organization cannot afford to ignoring strategic information as the strategic resource that is required to incorporate as one of the routine-elements require developing the organization (Romero and Vernadat 2016). In this perspective, the most effective method for achieving the strategic benefit from IS/IT that is emphasizing on the procedure of rethinking by the analysis of present business issues as well as environmental change.

Soomro, Shah and Ahmed (2016) argued that the strategic system is defined as an information system that can be helpful to create and improve competitive benefits or changes in the industry structure through changing the process of conducting the business. It is considered as conventional information system utilized in innovative ways. Therefore, it helps to gain competitive benefits and meet different strategic objectives of the organization. Moreover, the SIS engages the process of using information technology in order to develop products, services as well as capabilities that provide strategic benefits over competitive forces faced in the global market. According to DaSilva, and Trkman (2014), strategic use of IS/IT assist the organizations to alter the business strategies, make plan and structure. They are utilized hastening the time of reaction of the environmental changes as well as help the organizations achieving competitive benefits. The critical purpose of the system is helping the organizations in achieving better things (Wang, Chen and Benitez-Amado 2015). They aim in developing and maintaining IS/IT systems that can support business operations ineffective way.

On the contrary, the organizations frequently adopt innovations in order to obtain capabilities as well as competitive benefits. If the organizations desire to be competitive and innovative, it is essential to focus on the effective use of IS/IT. The capability of the organization depends on the products and services. It helps in creating new models as well as strategies for the information system and technology to do business in a better way (Gretzel et al. 2015). IT strategy helps to develop a comprehensive plan that can outline the process of using the technology in order to meet IT and business goals. IT strategy is termed as technology strategy used for encountering IT as well as technology strategic plan that is helpful to cover the details and multiple factors affecting investment as well as the use of technology in the organization (Leitão, Colombo and Karnouskos 2016). Execution of IT strategy needs strong IT leadership, where Chief Information Officer requires working closely with the business, budget as well as legal departments.

 

The impact of internal and external factors

The strategic information system shows that the factors are essential to manage thee situations. The factors are also related to conventional IS/IT approaches as well as sowing commonality with the innovation of business. Looking at the customers, competitors, as well as suppliers and the industries have similarities with outside business world. These are needed to analyze properly in order to analyze the impact of internal and external factor (Law, Buhalis and Cobanoglu 2014). IS/IT was emphasized on internal procedures and problems. However, there are several advantages of utilizing IS IT are focused in external relationships of the enterprise with several business partners.

Wortmann and Flüchter (2015) mentioned that adding value not reducing cost is one of the external factors where it may accrue due to the expansion of the business at the minimized marginal costs. It is consistent with the demands of the organizations in order to make differentiation from the competitors as well as gaining better products as well as services  (Schaltegger, Hansen and Lüdeke-Freund 2016). It enables the organization coordinating harvesting decisions with the requirements of inventory and transport as well as match the decisions to the market requirements.

Sharing the advantages is the factors by which the organization can share the benefits with suppliers, customers and competitors. However, these are used instead of providing departments and functions benefits on each other. It can minimize the advantages and does not allow sustaining in the industry. Sharing the advantages can imply a process of buy-in and commitment to gain success. On the other side, proper understanding of customers, their requirements, and the process of gaining value from it. Business-driven innovation where the marketplace pressured drives the applications in most of the cases (Wager, Lee and Glaser 2017). However, it enables the business opportunity to be converted into the process of reality. It leads to the driving force in the business that is not necessarily converted into reality. However, the business issue does not change, as it is considered as a new business process that is based on new technology as well as non-effective business vision. The incremental growth is considered as total application through which the vision is turned into reality (Stevens and Johnson 2016). There are several examples that show a stepped approach and developing on as well as extending success through further development. It is developing the applications through experimenting the process of stopping during success is achieved. Use of the information obtained from the systems in order to develop the business is an essential factor for the organizations.

Running successful business demands proper information system in order to process data as well as statistics in financial and organizational. The organizational come across the data problems associated with accuracy as well as reliability, which have slowed down the workflow. Reducing human error as well as maximizing efficiency in work is considered as the necessary goals of the organization. However, it can be achieved with effective information system. An efficient organization has a significant role for the business that is trying to be successful. Information systems are considered as convenient when it comes to strong data. Evaluation of information system from source of the organization, it enables to generate effective conclusions. It also assists in making effective decisions (Wager, Lee and Glaser 2017). Information system helps business in developing a large number of value added systems in the organization. An organization can integrate information from multiple sources. On the other hand, the long-term success of an organization depends upon adequacy of the strategic plans.

 

Recommendations to succeed in the efforts

Use of IS/IT has an important role in the sector. These would assist to gain proper incentive at the time of talking about improvement of technology. Thus, the organizations require constructing IS and choose effective IT components.  It helps to understand demands of the customers along with business procedures to be reviewed for gaining benefit from the use fIT in the enterprise. In addition, it is required to use technology for searching information and communicate outside of the organizations through the internet and public lines. The advantages of using IT in the organization have limitation inefficiency of the organizations especially cost savings in most of the cases. Use of IS/IT can be helpful to enhance relationships with the customers and to first competition as well as developing competitive benefits. The strategic use of IT needs to be in better form in the organizations so that those can obtain competitive benefits.   

There is also variance between the peoples of the organization. One of the organizations holds very much highly qualified peoples in the entire department while the other organization is having less qualified people when compared to the other manufacturer company. Highly qualified people mean more innovation within the organization as the research and development team of the organization will be much stronger. However, the organizations need to focus on a certain section like offering value for the products. For this organization might focus more on an online campaign, community meet up for consumer-oriented marketing and spending less on celebrity endorsement. They should spend more on research and development for improving the quality of products. More innovation will bring attractive products on the market that will attract the customer and the help the organization to generate more revenue. In these smart aspect, technologies are spending more for establishing an active research and development team so that they have to wait until the innovative products become standard in the market so that they can use the technology.

A web presence can be helpful for the business of the organizations ensuring long relationships with the clients, suppliers and stakeholders of the organization. The difference exists in the enterprise with or without the presence of website. Organizations individually business has displayed different behavior about the use of IS/IT.

Information and communication technology is essential in order to classify indicators in several ways. There can be a differentiation between the demand and the indicators of the supply side. The macro indicators have important ratios like total factor productivity, GDP and investment. Hence, investment on information and communication technology is divided through investment in a county that could be considered as macro indicator. The same macro indicator would be referred as the average ratio in investing at total organizational level. Household indicators, business indicators, health indicators and gender indicators are considered in this aspect.

On the other hand, a significant differentiation requires keeping in mind. The access indicators can be helpful to measure that people have in ICT. The impact indicators have the ability for capturing the impact of access and usage delivery on the macro level and performance of the organization, poverty level of the household as well as social inclusion on a macro level for providing examples. The impact indicators are generally derived from the the process. It is essential for the organizations to discuss the factors that have an impact on the operation level. The access, as well as indicators of usage, can be classified as the core indicators. These are helpful in managing information about the organization. Technology infrastructure, as well as access, is helpful for using information and communication technology with the help of households along with individuals.

 

Conclusion

Information system and technology become a significant component of the modern organizations. It becomes important to improve efficiency along with the effectiveness of business and managing organizations strategically with the help of IT. Strategic use of IS/IT includes the ability that provides the organizations to link with the customers as well as suppliers, enhance integration of the internal processes and the service along with external environment. It is used to add value and reducing cost along with and sharing advantage with the different actors involved like customers, suppliers and third parties. The organizations can understand the requirements of customers with the help of IS/IT in a better way.

 

References

Abdel-Maksoud, A., Elbanna, S., Mahama, H. and Pollanen, R., 2015. The use of performance information in strategic decision making in public organizations. International Journal of Public Sector Management, 28(7), pp.528-549.

DaSilva, C.M. and Trkman, P., 2014. Business model: What it is and what it is not. Long range planning, 47(6), pp.379-389.

El Kadiri, S., Grabot, B., Thoben, K.D., Hribernik, K., Emmanouilidis, C., Von Cieminski, G. and Kiritsis, D., 2016. Current trends on ICT technologies for enterprise information systems. Computers in Industry, 79, pp.14-33.

Gretzel, U., Sigala, M., Xiang, Z. and Koo, C., 2015. Smart tourism: foundations and developments. Electronic Markets, 25(3), pp.179-188.

Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication technologies in hospitality and tourism. International Journal of Contemporary Hospitality Management, 26(5), pp.727-750.

Lee, A.S., Thomas, M. and Baskerville, R.L., 2015. Going back to basics in design science: from the information technology artifact to the information systems artifact. Information Systems Journal, 25(1), pp.5-21.

Leitão, P., Colombo, A.W. and Karnouskos, S., 2016. Industrial automation based on cyber-physical systems technologies: Prototype implementations and challenges. Computers in Industry, 81, pp.11-25.

Ngai, E.W., Tao, S.S. and Moon, K.K., 2015. Social media research: Theories, constructs, and conceptual frameworks. International Journal of Information Management, 35(1), pp.33-44.

Romero, D. and Vernadat, F., 2016. Enterprise information systems state of the art: Past, present and future trends. Computers in Industry, 79, pp.3-13.

Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process management. In Handbook on business process management 1 (pp. 105-122). Springer, Berlin, Heidelberg.

Schaltegger, S., Hansen, E.G. and Lüdeke-Freund, F., 2016. Business models for sustainability: Origins, present research, and future avenues.

Soomro, Z.A., Shah, M.H. and Ahmed, J., 2016. Information security management needs more holistic approach: A literature review. International Journal of Information Management, 36(2), pp.215-225.

Spieth, P., Schneckenberg, D. and Ricart, J.E., 2014. Business model innovation–state of the art and future challenges for the field. R&d Management, 44(3), pp.237-247.

Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years on. International Journal of Physical Distribution & Logistics Management, 46(1), pp.19-42.

Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D., Leimeister, J.M., Loos, P. and Spann, M., 2014. Business models. Business & Information Systems Engineering, 6(1), pp.45-53.

Wager, K.A., Lee, F.W. and Glaser, J.P., 2017. Health care information systems: a practical approach for health care management. John Wiley & Sons.

Wang, Y., Chen, Y. and Benitez-Amado, J., 2015. How information technology influences environmental performance: Empirical evidence from China. International Journal of Information Management, 35(2), pp.160-170.

Wirtz, B.W., Pistoia, A., Ullrich, S. and Göttel, V., 2016. Business models: Origin, development and future research perspectives. Long range planning, 49(1), pp.36-54.

Wortmann, F. and Flüchter, K., 2015. Internet of things. Business & Information Systems Engineering, 57(3), pp.221-224.

Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet. Journal of Retailing and Consumer Services, 22, pp.244-249.

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