Strategic Information System for Students

The report explores the importance of strategic information systems for organizations, their application in different areas, their impact on operational and managerial levels, and their role in achieving competitive advantage using Porter's model. It also discusses the strategic use of Porter's value chain model, leveraging primary activities in business, and industry challenges that impact competitiveness. For assignment examples or expert assistance, feel free to contact us!

Definition and importance of strategic information system

Strategic information systems are those which are basically developed for the purpose of improving business functions along with attainment of opportunities present in market. The number of systems are exist and having their own different role towards the functioning within an organisation. The main common role of all is about enhancement of the image of information services prevail within an organisation through bring improvement in features and scope. Also, another reason behind the development and acceptance of these systems is to provide effective response to all the new challenges that can be arise in corporate world. The contribution of same is also beneficial in respect to accept different business initiatives and opportunities that can be arise in market due to the presence of external factors. The importance of these systems is not limited to one specific sector (Arnold and et. al., 2015). All the different sectors like manufacturing, retail, service, construction etc. are needed to implement these within their organisational premises for the purpose of improving operational capacity. In context to retail sector, these systems function as prime part of business as they help in collection and integration of information ascertained from the different platforms. The further contribution of same will be ascertained in the form of improved decision making that enables in accomplishment of organisational objectives and goals on time. This will also provide an opportunity to all the supermarkets and hypermarkets that deliver the service or product at lower price, differentiated in nature, demanding in market and innovative to fulfil the requirements of market. There are many types of strategic information systems like MIS, DSS, TPS etc. All these are different from each other on the basis of their functioning, features, capabilities and scope. Commonly, it help the organisations in allocating, storing, processing and moving of data they develop and receive within an organisation. Application of these also improves the capacity of an organisation regarding usage of different tools and frameworks in determination of resourceful opportunities present in market for their expansion, enhancement of operations and supply efficiency. The scope of these is not limited to the management of data but simultaneously aid in effective presentation and analysis of data too (Aubert and Rivard, 2016).

Most common importances associated with usage of such systems

• Builds connection between demand of an organisation and presence of latest information technology.
• Holding up of market to meet challenging requirements along with adoption of continuous variations in retail industry.
• Help to devise strategy for growth and expansion in future under retail industry.
• Allows the usage of necessitate resources and optimum utilisation of scare resources present within retail sector.
• Help in attainment of competitive advantage in retail market that restricts the entry of new competitors.
• Improvement of the marketing activities through generating efficient database. 

Description of the usage of different systems and its support at operational level within businesses

Malaysian retail industry is transforming with evolvement of time (Kolkowska, Karlsson and Hedström, 2017). The growth in this sector is visible from existence of traditional grocery shops to supermarkets and hypermarkets. The benefit of such new super and hyper markets that serve the products and services to everyone irrespective to their social status, income and background. The main players of hypermarket in Malaysia includes Giant, Mydin, Econsave, NSK, AEON and Tesco. The success of these organisation depends over their operational capacity. They all use different kind of information systems that help to manage various operational functions. In this regard, these systems help to collect and disseminate information related to organisational important activities to higher authorities. The same will be used further regarding effective decision making that aid in attainment of sustainability in market through fulfilment of customers demand. The main operational information systems used basically within Malaysian retail organisations are Transaction support system, Process control system and Enterprise collaboration system (Baporikar, 2015). All these are different in nature and having their own separate functioning within an organisation. The description related to their features and usage in performance of operational level activities are defined below:

Transaction Processing system: This is also known as information processing system. This will provides an opportunity regarding processing of information related to different business transactions. The aspect of processing information includes collection, modification and retrieval of all related data. Usage of this feature of system provides an opportunity regarding building effective decisions on the basis of analysed information and results. The main characteristics associated with application of system includes performance of business functions, their reliability and consistency to market needs (Budiyanto and Setyohadi, 2017). This is used by retail organisations exist in Malaysian retail industry for the purpose of recording day to day business transactions. Its effective application also help to attain the answer of the daily routine activities such as;

• How products are sold today?
• Amount of inventory have by an organisation in hand?
• What is the amount of outstanding due from debtors?

This help the hyper and super markets in effective functioning of day to day operations including satisfaction of the demand of large number of people by providing products and services at their expected quality.

Process control system: This is known as data collection and distribution system. The main function of this system is to collect and store information attained from different sources. This is further used by the manager of an organisation in determining or analysing results and implementation of measures that aid to improve end operational functions. This is used by the organisations of Malaysian retail industry for maintaining continuity in the process they followed from procurement of goods to its end sales including the satisfaction of consumer after sales service needs. It reduces the chance of mistakes and build the process error fee which is optimised in nature to get reliable and effective results (Charki, Josserand and Boukef, 2017). Order assignment help from our experts! 

Description of different systems usage and its support in performance of management or strategic level functions

The information systems are different that perform operational and management related actives within an organisation. Commonly which are used by the organisations in Malaysian retail industry are known as Management information system and Decision support system. The importance of both these systems is prime in nature in handling of the management related activities. The functioning of both these systems along with their support in performance of management level functions will be understood from the description provided below:

Management information system: It is one of the effective system which is used by the managers of an organisation to monitor the current performance status. Here, the output ascertained from TPS will be used as input under this system to carry on further activities. This system uses the algorithms to analyse input information. The basic algorithms used includes aggregation, comparison and summarisation. Successful application of all over information help to get appropriate results that are converted into reports and further used for the purpose of monitoring, controlling and prediction of future performances. The same is used under retail organisations of Malaysia for determining and improving the current level performance of employees and departments. This will further aid in determination of deviations and taking care of measures that help to improve performances and functioning to attain desired results (Dong and Wu, 2015).

Decision support system: This is the system used by senior management of an organisation. The main purpose behind its usage is to build decisions on non routine activities. Under this system, input from TPS and MIS is used along with external informations. This will provides an opportunity regarding identification of best alternative as solution for problems that are unique in nature or changed frequently. This will also aid the organisations in long term planning regarding strategic goals and objectives. The same is used in Malaysian retail organisations for the purpose of attaining competitive advantage (Du and Dai, 2018).

Discussion of Porter generic model and its contribution in attainment of competitive advantage in market

Porter generic model is effective in nature for the purpose of building effective strategies. This model is based upon the aspect of using own resources to grab the opportunities present in market along with competitive advantage. There are many big organisations are exist in Malaysian retail market. It is must for them to analyse their own capabilities and afterwards work towards attainment of external opportunities. There are many retailers uses porter generic model for determination of strategy which will help in future to attain competitiveness in market. Application and justification of model in relation to an organisation present in Malaysian retail industry is presented below:

Cost leadership: This is about providing existing products and services at least possible cost.

Differentiation: This includes about building of product and services attractive and unique in nature which are different from competitors (Galliers, Leidner and Simeonova, 2020).

Focus: This is of two types cost and differentiation focus. Here, focus is provided over niche market. In cost focus, low cost products and services are provided and in differentiation focus, unique products and services is provided to specific market (Porter generic strategy, 2019).

In consideration to the nature of retail industry present in Malaysia, cost leadership is best strategy to adopt. This will not only help to attract the consumers but aid to develop unique selling proposition in market that leads towards the direction of sustainability. Also, adoption of differentiation is next to impossible in retail sector where all products are identical.

Description on the importance of porter value chain model in business

Porter value chain model is framed as strategic management tool. This includes the breaking of organisational activities into different strategic pieces. This will aid in determination of cost drivers and sources of differentiation. This will be used in future by management of an organisation in decision making related to changes for attaining success in market (Gardner, Boyer and Gray, 2015).

This includes the set of activities performed by an organisation regarding creation of value for customers. The activities are divided into two parts primary and supportive. Ascertaining link in between the two primary and supporting activities help the organisation to determine their capability to deliver results in market. So, any deviations can be mitigated and proper support is provided towards completion of main functions of an organisation that contributes in achievement of organisational objectives.

Discussion regarding contribution of primary activities of porter value chain as strategic use within an organisation

The main primary activities in accordance to this model along with their strategic application within an organisation is presented below:

Inbound logistics: This control the activities related to procurement of raw material from its origin to workplace (Gleasure, 2015).

Operations: This is about organisational operative functions that help to covert raw material into finished goods.

Outbound logistics: This includes distribution of product in market.

Marketing and sales: This is about using of tactics of marketing and promotion regarding improvement of sales (Grover and Lyytinen, 2015).

Service: Lastly, services to end consumer even after the consumption of product. Order MBA Dissertation Topics from our experts! 

So, primary activities of this model creates the strategic base of business operations from the procurement of raw material to final delivery to end consumer along with service for their satisfaction. These creates the outline and justifies the business model used by an organisation in operation of their business activities.

Determination of the barriers present in industry and its restrictions to attain competitiveness in market

The different number of barriers present in Malaysian retail industry and having impact over ability of an organisations to attain competitiveness in market. It can be understood from the description provided below:

Requirement of high amount of funds: To enter and compete with large number of super and hyper markets required to invest high amount of capital. If not possible then rate of success in this industry is quite low because those able to provide low cost high quality diversified nature products (Huang, Baptista and Newell, 2015).

Legislation and government regulations: Regulations are framed by government to operate functions in any industry. Same are applied on retail industry too like Equality, health and safety etc. It is difficult for new entrants to fulfil all properly that hinders their operational ability and growth in market. This leads to discontinuation of business or fine. Here, their ability to compete with competitors is low that restricts sustainable nature of operations in market (Kavanagh and Johnson, 2017).

CONCLUSION

It has been concluded from the above report that role of strategic information systems is prime in growth of retail sector and organisations. These systems aid towards automation of process related to collection and dissemination of important information that improves decision making ability to take appropriate decisions. The benefit of these is taken at both operational and management level that allows to grab sustainability in market. Porter generic is effective model that help to take completive advantage with the aid of using existing resources. Approach of cost leadership is best to attain competitive advantage by organisations in retail market of Malaysia.

For more - Virgin Media: Organizational & Individual Development

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