Basic resource for any organisation

raw material resource for any organisationIntroduction learning is basic resource for any organisation to its management. If the education is available on time its really effective for the management in its operations. The term randomness ashes usually refers to a placement based on computer which is designed to declare the operation, management and decisiveness function. counseling information brass collects, transmit, process, store information and the clay convert this data for management to shit decisions and the strategy in the organisation.Reason for information system strategyFirst let me clear the see for those who dont understand that whatever we do we take on a strategy.im sure e rattlingthing we do we cave in an objective to strike that plan we make a plan that plan is strategy. Problem is strategy female genitals be goodly or it bum be bad or we whitethorn non have spotted that we poop do much smash if take the opportunity and environment into account . But there can be certain things give us a push to bosom a strategy and to achieve the better results for our work. there argon two distinct figures, the prototypic mavin is quantitative and the second one is qualitative. The first part we express about the research of different organisations. In each organisation we leave talk about different key stake holders in formulation of strategy process. This phase of the research provide be started when different stakeholders will be interviewed everyplace 100 interviews have been conducted so far. For the second phase the potential sample size will be every HEI in the UK.The first method machine which is being utilise to get samples in the first part is based on interviews and observation from which look studies are being created. The fiber studies created in part one will then be mathematical functiond to enlarge and add upon present theory to grow a keep an eye on. This will be directed, using the results already recog nized in qualitative research and different red-hot(prenominal) organisations. This will bring the experimental sample to lots of other organisation which is adequate to learn any main defects in the survey. The second data-gathering mechanism will be a organized survey. The small size of the real people means that the survey can be given in all the organisations to at smallest leash key stake holders or alliance frontrunners.Earl suggests a multiple methodology to formulate an information systems strategy.Earls multiple methodologiesEarls multiple methodology provides a means ofClarification of the business inescapably and strategy in information systems terms.Evaluation of current information systems provision and utilize.Innovation of in the buff strategic opportunities.1. Top down clarificationEarls definition of a fit method to clarify business needs in IS termsA methodology that is easily still and used by line and general managers, it can cope with varying robustnes s of business strategy, it does not consume too much time or resource, it can be repeated as dowry inevitably swop and, as a result of these needs and because it could not achieve anything else, it points to directional IS needs and not detailed specifications.The Critical Success factors snuggle meets many of the admitments of the definition.There are otherssee Strategic Management and study Systems Wendy RobsonSee IT Strategy for Business Joe Peppard2. Bottom Up ratingMost organisations only have a vague understanding of the potential and capacity of their present IT systems. The technical perspective and backroom perception of IT whitethorn create a barrier. To understand the present systems a bottom up analysis is carried out. This involves an audit or survey. As fountainhead as the technical detail the user/specialist interface is examined. The value of the system to the organisation must in addition be ascertained.In this evaluation the following questions must be aske dHow sure is the system?How easy is it to maintain?How cost effective is it?What is the impact on the business?How easy is it to use?How much is it used?What is the state of our specialist user kin?Other considerations might be the interactivity of the systems. These interactions and the evaluation can be shown graphically using systems maps or other means. The present systems can then be examined for strengths and weaknesses.The top-down business approach and the bottom-up systems approach do not provide an opportunity to crusade radical new ideas for exploiting the competitory returns of IT. The business approach examines the what and does not examine the hows. The bottom-up approach is constrains radical thinking by the presence of the evaluation process and the strengths and weaknesses of the existing systems. A much barren approach is needed.3. inside out thinking lateral thinkingIt is often inspiration and creativity that produces the sleek spark ideas that can prod uce the beginnings of an IS strategy for emulous gain. Ideas brought from unrelated arenas can often be successfully applied. The right atmosphere must be nurtured to produce this creativity.Runge suggests the following six characteristics associated with IT innovationThe idea often emanates from a commercial manager.The idea was backed by a senior manager who became the project champion.The competitive advantage was added to an existing system evolutionary process.The idea was developed outside of the IT control constraints.Customers were involved in the development.The application was given a high profile and was marketed.External AnalysisThe three legs of Earls multiple methodologies have considered IS strategy from an sexual perspective. It is eventful to in like manner view this strategy from an external point of view i.e. competitors, customers, consumers etcetera There are techniques that can help clarify this approach. The SWOTmethod is a suitable candidate that explo res both internal and external perspectives.A technique such as SWOT is useful when considering an external view of the three legs of the multiple strategies.Porters five personnels model is a useful model for considering the external perspective on IS strategy.Boddy et al suggest that Porters model can be used to construct an IS strategy.Considerations when using the multiple methodologies.The use of methodologies does not mean a cookbook attitude should be taken the executing of strategies. Methodologies are useful boilersuit frameworks however the context in which they are used needs consideration as well as experience.Experience suggests thatSignificant differences existed in different firmsIS strategy formulation inherently seemed a much building complex matter in some firms than others andapproaches in practice did not always match either the public prescriptions or the accounts in case documented articles.Infrastructure-led may emphasise leg 2 bottom-up approach.Busine ss-led may emphasise leg 1 top-down approach.Opportunity-led may emphasise leg 3 inside-out.Alternative approachesThere are many other approaches in structuring IS strategy. One such approach is Porters five forces model. This is also useful in conjunction with Earls methodology. The following is reproduced from Body et al.IS changes the basis of competition opportunities and banesComputer-based information systems are changing competitive conditions in many Indus-tries. There are many tools and techniques which can be used to analyse the relationship in the midst of strategy and information systems, depending on their purpose. In this book we can only illustrate one of these approaches, and the Five Forces model originally developed by Michael Porter seems the most appropriate to introduce. It can be used at the level of the individual firm to assess the possible impact of information systems on the competitive stupefy of the firm. A comprehensive account of the many other per spectives on the topic will be found in Robson (1997). Figure 4.5 is based on Porters framework, and a show that IS represents an opportunity to desexualize a strategic advantage by using it to strengthen one or more of these forces. Similarly, it represents a competitive threat, if other organisations are able to use IS more effectively in these ways.Information systems and the threat of new entrantsManagers can use IS on this force by using it to discredit the threat from new entrants by raising barriers, or by using it themselves to enter new markets.Using information systems to bring forth entry barriersThe Caterpillar case illustrates that the manufacturer of the machine links the customer electronically with the service organisation. Because of that electronic link, it is not easy for a customer to go to another service organisation for repair and tutelage. This strengthens Caterpillars position as a manufacturer and as a service provider. The system is so complicated, adv anced and high-ticket(prenominal) that it is hard for existing competitors to imitate. It is even more difficult for new entrants in this market to develop a similar system. The box gives two other examples.In the IS industry itself setting the standard is very important to gaining a strong position. Most customers want to use equipment that has fabricate established as the industry standard.Examples are Microsoft word-processing software, Intel computer chips and Netscape Internet browsers. It is very hard for new entrants to overcome these entry barriers, leading to a success takes all situation in many sectors of the market.Using IS to enter markets more easilyThe Caterpillar case illustrates how the company uses its information system to attain a stronger position in the maintenance market. The system can strengthen the relationship with buyers of Caterpillar equipment and provide them with a broad after-sales service. Caterpillar becomes a stronger competitor of free-living maintenance companies in new markets.Information systems and the threat of substitutesCompanies can use information systems to alter this force by differentiating their products, or by creating new ones which they can use to threaten competitors.Using information systems to assure products and functionThe Caterpillar case shows the company using the information system mainly to improve the induce and quality of customer service. When the system notes deterioration the service starts immediately and the very capital-intensive machine will be repaired soon. This saves the customer a great deal of money. Other companies use the Internet to create and orchestrate restless customer communities. Examples include Kraft (www.kraftfoods.com), Intel (www.intel.com), Apple (www.apple.com) and Harley Davidson (www.harley-davidson.com). Through these communities the companies become close to their customers. They can learn and enter with product or service improvements that would otherwise be impossible.The research summary box below explains why it is essential for information service providers to differentiate their products.Using information systems to create new products and services telecommunicate and Internet banking are relatively new phenomena which have only become possible with new systems. The same(p) is true of companies that use the power of database technology to offer new services in customer relationship management and direct market-in. Wide Internet access has generated a huge increase in businesses whirl new services. These include electronic auctions, search engines, electronic retailers, electronic hubs (Data and Segev, 1999 Timmers, 2000 Kaplan, 2000), and Internet providers. Caterpillar created new maintenance services, and the next box gives another example.Information systems and the bargaining power of suppliersIncreasing power of supplierscan increase their power by using information systems to track much more closely the costs of providin g services to customers. They can set prices accordingly, or decide that they do not want a particular make-up of business. For example, airlines use yield management systems to track actual reservations against traffic forecasts for any flight, and then adjust prices for the be seats to maximise revenue. Stepanekz (1999) reports how Weyerhaeuser Doors uses an Internet-based system to, amongst other things manage orders from its distributors. This allows the company to manage its internal processes more efficiently, but also to assess much more accurately the value of each order, and the overall performance of its distributors. This enables it to hold up unprofitable orders, and to be more selective about the distributors which it supplies. Customer relationship management systems are a currently popular example of suppliers ability to track customers requirements more accurately, thus increasing the suppliers power over the customer.Decreasing power of suppliersInformation syste ms can also be used the other way around. Customers can use information systems to strengthen their position in the marketplace at the expense of suppliers power. crossroad and oecumenic Motors have set up electronic marketplaces and urge their suppliers to use that system to match their supply with the affect of Ford and GM. The Economist (6 November 1999) call attentionedFord and GMs e-business revolution will not be confined to them alone. Their decision to go online will ripple through the 50,000 or so firms they trade with. The car makers are careful to secern that none of their suppliers will be compelled to use their new portals, preferring simply to express that the benefits-cost savings, the access to new customers, the high-speed time to market, the sheer value of the information will make it an obvious choice. But the reality is different. Ford and GM are investing a lot in their e-business infrastructure and great hopes are horseback riding on it. Suppliers that w ant to continue to do business the old way will rapidly become ex-suppliers and before long ex-companies.The next section about the use of information systems to change the power of buyers explores this subject field further. This illustrates that information systems are increasingly inter-organisational phenomena, rather than hidden back-office systems. Inter-organisational systems can be used to co-operate as well as to compete with business partners, whether suppliers or customers. Powerful parties tend to urge less powerful ones to adopt their systems.Information systems and the bargaining power of buyersa good example of the balance of power being alter is when retail chains use modern communication technologies to make electronic links with their suppliers. Such systems reduce stock-taking costs and warehouse expenses and improve fulfilment time and information flows. For instance, they encouraged the further ducking of retailing firms which then had much more power over t heir suppliers. The retailers computer continually proctors its suppliers finished goods inventories, grinder scheduling, and commitments against its schedule. The purpose is to ensure the stores always have adequate stocks. A supplier that is unwilling to join the system is likely to lose business. The box illustrates how Wal-Mart used this idea.More generally, buyers can use the web to access more suppliers, and to compare prices for standard commodities much more widely than was practical with earlier technologies.Information systems and the intensity of tilttwo ways of using information systems in the process of competitive rivalry are by reducing costs and through more effective management.Using IS to reduce costsOn-line stock systems make it possible to make radical changes in manufacturing supply systems. This greatly reduces inventory levels, and the costs associated with them. political machine manufacturers are only invoiced for components when the completed assembly l eaves the factory. When the system knows that X headlamps have been used, it passes the information to the component supplier. They take an (electronic) invoice for the components used, and supply replacements. There are similar systems in retailing, where suppliers like Unilever and Procter Gamble manage the inventory of their biggest customers. These inter-organisational systems reduce inventory costs but not only through lower inventory levels. They also reduce the need for working capital and allow a (smaller) purchasing department to focus on non-routine orders and strategic supply matters.The Internet enables large companies to transfer their purchasing operations to the web. Secure web sites touch suppliers, business partners and customers all over the world. This makes it easier for new suppliers to bid for a share of the available business, makes costs more transparent, and improves the administrative efficiency of the supply process.Using IS to enable more effective ma nagementA hold up agents branch accounting system can now provide detailed patterns of business to managers, enabling them to monitor trends more closely, and to take better-informed pricing and promotional decisions. Another example is Ahold, a Dutch retailer, which achieved much greater performance in the supply chain by using its data-mining capability and association extraction in its customer database. Management information systems can expand the span of control of individual managers, which can support the flattening of organisations.These examples show that information systems may become opportunities for creating, supporting or changing generic strategies. On the other hand competitors have similar opportunities there are also costs and risks associated with using information systems in this way.IS can also be a threatNew entrants in the financial services sector have been able to introduce telephone bank-in through call centres very quickly. They were able to take advan tage of the fact that they did not have an established branch network, and so could use the new technology very quickly. The technology worked to the disadvantage of established banks with many local offices. They found it costly to close branches. The technology was an advantage to the new, a disadvantage to the old. This illustrates a more general point that, for all the potential opportunities, IS can also be a threat.Information systems enable new competitionComputer-based information systems represent opportunities for one business and threats to another company. In retailing, large chains have benefited at the expense of smallershops, large suppliers have benefited at the expense of smaller ones, and large retailers have more power over suppliers. Any use of IS by one company to enter a new market, reduce costs and so on, is a potential threat to a competitor. They lose out if they have not seen the possibility, or have managed implementation less effectively. The London Stock Exchange is threatened by the fact that modern technology allows study institutions to trade shares directly, rather than use the market institution. The problem is increased by the fact that competing exchanges have utilize new information systems more effectively. They are likely to gain a larger share of a smaller market.Information systems place new demands on management timeImplementing a major system takes a great deal of management time a cost that managers rarely include when evaluating investments. They require managers to look inward at (important) operational problems of staff, system design, and security. The danger is that they do not look at (even more important) issues of how to use the systems for strategic advantage. In other words managers are often balancing between a problem orientation and an opportunity orientation. Senior management frequently underestimates the resources required to implement new information systems, especially of managing the many organi sational implications.Implementing an information system successfully is difficultmany research reports comment on the difficulties of implementing information systems. This is especially true of systems which involve many stakeholders with different interests or those which are forward-looking in other respects. They often take place in an uncertain environment, from a competitive as well as from a technological point of view. These uncertainties make it difficult to plan a change over a longer time. At the same time, the stakes are getting higher in terms of costs, people and other resources.Even when applications work, there may be downsidesManagers often buy in expertise for development, operations and consultancy. These suppliers become the main experts of a companys IS resource. This dependency can be misused. Their lack of knowledge and insight in the organisation causes major problems. They have difficulty in negotiating successfully with the external providers and decisiv e company knowledge becomes the asset of other companies.ReferencesAchterberg, J.S., Gerrit, A. and Heng, M.S.H. (1991) Information systems research in the post-modern period. In Nissen, H.E., Klein, H.K. and Hirschheim, R. (eds.) Information Systems question Contemporary Approaches and Emergent Traditions. Elsevier Science Publishers BV, North Holland.Anderson, M. (1992) Implementing an information infrastructure strategy the University of Edinburgh experience. University ComputingAntill, L. 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