W2 Tuto 2a

Revision Chapter 1
Question 1
Discuss the strategic objectives that firms try to achieve by investing in information systems and
technologies? For each strategic objective, give an example of how a firm could use information systems
to achieve the objective. (12 marks)
1. Operational Excellence
 Businesses continuously seek to improve the efficiency of their operations in order to
achieve higher profitability. Information systems and technologies are some of the most
important tools available to managers for achieving higher levels of efficiency and
productivity in business operations, especially when coupled with changes in business
practices and management behavior.
 Walmart RealLink system serve their suppliers and retail customers by digitally links their
suppliers to all stores worldwide. Suppliers are able to ensure the continuous flow of
products to the stores in order to satisfy customer demands.
2. New Products, Services, and Business Models

 Information systems and technologies are a major enabling tool for firms to create new
products and services, as well as entirely new business models.
 A business model describes how a company produces, delivers, and sells a product or
service to create wealth. As successful as Apple Inc, NetFlix, and Wal-Mart were in their
traditional brick-and-mortar existence, they have all introduced new products, services,
and business models that have made them both competitive and profitable.
3. Improved Decision Making

 Information systems and technologies have made it possible for managers to use real-time
data from the marketplace when making decisions.
 Previously, managers did not have access to accurate and current data and as such relied
on forecasts, best guesses, and luck. The inability to make informed decision resulted in
raising costs and lost customers.
 EX: DSS (Decision Support System) For: Structured, Unstructured or/and Semi-Structured
Problems.
Question 2
Describe the complementary assets that firms need in order to optimize returns from their information
system investments. For each type of complementary asset, give an example of a specific asset a firm
should have.
COMPLEMENTARY ASSETS
ORGANIZATIONAL ASSETS DATA ASSETS
These are the structural and cultural elements of These are the structured and unstructured data
an organization that support the effective use of elements that are used to support business
information systems. Examples of organizational processes, analytics, and decision making.
assets include well-defined business processes, Examples of data assets include customer data,
clear communication channels, employee sales data, inventory data, financial data, and
training and development programs, and a market data. For example, a manufacturing firm
culture of innovation and experimentation. For that wants to implement a new predictive
example, a retail firm that wants to implement a maintenance system should have a centralized
new inventory management system should have database that stores data from sensors, machines,
clear guidelines and procedures for ordering, and other sources, as well as data analytics tools
receiving, and stocking products, as well as a that can identify patterns and trends in the data.
training program that teaches employees how to
use the new system effectively.
MANAGERIAL ASSETS TECHNOLOGICAL ASSETS
These are the strategic and operational elements These are the hardware, software, and network
of an organization that enable managers to make components that enable information systems to
informed decisions and monitor the performance function effectively and efficiently. Examples of
of information systems. Examples of managerial technological assets include servers, databases,
assets include strategic planning processes, software applications, network infrastructure, and
performance metrics and dashboards, risk cyber security tools. For example, a financial
management frameworks, and decision- making services firm that wants to implement a new
protocols. For example, a healthcare provider that online banking platform should have a robust
wants to implement a new electronic health network infrastructure that can handle high
record system should have a risk management volumes of traffic, as well as cyber security tools
framework that identifies potential data privacy that can detect and prevent fraud and cyber-
and security risks, as well as decision-making attacks.
protocol that outlines how to respond to security
breaches.

W2 Tuto 2a

Uploaded by

Copyright:

Available Formats

W2 Tuto 2a

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

W2 Tuto 2a

Uploaded by

Copyright:

Available Formats

Revision Chapter 1

2. New Products, Services, and Business Models

3. Improved Decision Making

ORGANIZATIONAL ASSETS DATA ASSETS

MANAGERIAL ASSETS TECHNOLOGICAL ASSETS

You might also like