One Minute refection

Summary of information Systems on Disruptive technologies.

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Informations Systems Strategies for Dealing with Competitive Forces

1.Low-Cost Leadership
Use information systems to achieve the lowest operational costs and the lowest
prices. The classic example is Wal-Mart. By keeping prices low and shelves well
stocked using a legendary inventory replenishment system, Wal-Mart became
the leading retail business in the United States. Wal-Mart’s continuous
replenishment system sends orders for new merchandise directly to suppliers
as soon as consumers pay for their purchases at the cash register. Point-of-sale
terminals record the bar code of each item passing the checkout counter and
send a purchase transaction directly to a central computer at Wal-Mart
headquarters. The computer collects the orders from all Wal-Mart stores and
transmits them to suppliers. Suppliers can also access Wal-Mart’s sales and
inventory data using Web technology.

2.Product Differentiation
Use information systems to enable new products and services, or greatly
change the customer convenience in using your existing products and services.
For instance, Google continuously introduces new and unique search services
on its Web site, such as Google Maps. By purchasing PayPal, an electronic
payment system, in 2003, eBay made it much easier for customers to pay
sellers and expanded use of its auction marketplace. Apple created iPod, a
unique portable digital music player, plus a unique online Web music service
where songs can be purchased for 99 cents. Continuing to innovate, Apple
recently introduced a portable iPod video player.

3.Focus on Market Niche
Use information systems to enable a specific market focus, and serve this
narrow target market better than competitors. Information systems support
this strategy by producing and analyzing data for finely tuned sales and
marketing techniques. Information systems enable companies to analyze
customer buying patterns, tastes, and preferences closely so that they
efficiently pitch advertising and marketing campaigns to smaller and smaller
target markets.

source: 

LEARNING TRACK MODULE
The Changing Business Environment for
Information Technology

Implications for the Design and Understanding of Information Systems

To deliver genuine benefits, information systems must be built with a clear
understanding of the organization in which they will be used. In our
experience, the central organizational factors to consider when planning a new
system are the following:
• The environment in which the organization must function
• The structure of the organization: hierarchy, specialization, routines, and
business processes
• The organization’s culture and politics
• The type of organization and its style of leadership
• The principal interest groups affected by the system and the attitudes of
workers who will be using the system
• The kinds of tasks, decisions, and business processes that the information
system is designed to assist

sources:

The Changing Business Environment for
Information Technology

Reasons why Information Systems Fails In Organisations

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There are many reasons as to why information systems fail. It is assumed that many systems fail due to technological difficulties. However this is not the case. We should also consider the problems regarding human resources and the functionality within a business. ‘IS fails when it does not meet its design objectives, excessive costs, missed deadlines, the users cannot interact well with the IS, and unable to meet the clients expectations.’ is the opinion of this article http://sherylsniche.blogspot.ie/2008/07/why-information-systems-fail.html…

Other reasons why information systems do not work well is because it may not be planned properly, an organisation may not have implemented a study to good effect, if the organisation has no specific goals, lack of attention to the contribution of the staffs character, coordination and most importantly performance. “You stop working because you fail… but you fail because you stop working.” , this is an extremely relevant quote for this topic in my opinion and if put to good effect can lead to great success…

Factors that may hinder Effective IS Alignment

Information Systems failure can occur at three phases of information system alignment:
1. Pre-implementation
2. During Implementation
3. Post Implementation
The reason the project fails is different for each of these stages. Here are some examples of reasons behind failures at each of these phases:
Pre-implementation
Lack of research: Information Systems are complex. Without carrying out research and having trained employees with expertise in carrying out the research the project will fail. Proper research is crucial for the success of an information system.
Risk management: Facing risks when developing an information system in unfortunately unavoidable. Statistics show an extremely high rate of failure and a low success rate. Steps should be taken to minimise risks and to try to keep them under control to give the system the best chance of succeeding.
Realistic views: If a project is failing there no point in carrying on for the sake of it just because a huge amount of money has already been spent investing in it. They need to be realistic and realise when it is just not working or going to work.

During Implementation

Poor communications: Poor communication in my opinion is one of the main reasons for failure. Good communication is essential. The vision of the project needs to be communicated to staff and the lines of communication between staff and management should always be flowing.
Achieving Small Goals should be recognised: Development can take years and employees may become bored and unmotivated if it seems the accomplishment of the goal is far away or unreachable. Smaller goals should be set within the larger goal and celebrated when they are achieved to keep staff motivated and focused.

Post-implementation
Triumph too soon? : Finishing a project doesn’t necessarily mean ending the project management system. Merely finishing does not guarantee that the company derives benefit from the projects outcome. The company must check if further improvements will deliver benefits and also very importantly must learn from their mistakes and take them on board.