Strategic Information Systems - Essay Example

Strategic Information Systems Introduction- Enterprise Resource Planning The enterprise resource planning is part of the Information Systems born out of modern technology to enable companies to conduct its activities in an organized and a more effective manner (Oloreux et al, 2010). Computer systems have provided businesses today with an opportunity to maximize on their time, resources and human labor through introduction of programs like the ERP. Through adoption and formulation of ERP programs, a company will be able to produce more and management its work force more effectively for increased profitability (Dasgupta, 2001). In the contemporary business setting, the ERP program is important as it can coordinate and organize all transactions taking place and the employee database and performance. Managing the work force especially in medium and large organizations is tasking and the introduction of ERP systems ensures follow up and implementation of polices where necessary (Axtell, 2001). Managing the organization in terms of the internal and external aspects becomes easier with an ideal ERP system. Apple Inc. has enjoyed improved and less hectic management processes that have enhanced good employer-employee relationships. Another importance of the ERP systems in the contemporary organizations is that old systems of resource planning often wasted a lot of organization’s time and resources. This was due to the challenges of time, communication and coordination (Axtell, 2001). The long chain of communication lengthened the time taken to produce affective as compared to the modern ERPO systems. Apple Inc. is a company that employed the ERP system to eliminate the unnecessary formalities that came in the way of ideal production and delivery. Recording of data in the company and retrieval of the same is now instant with employment of ERP systems that are powered by technology (Doloreux, 2010). Apple is proud of its association with the ERP idea that has enabled the company to soar to unprecedented heights through a wide market share and an improved brand image. ERP in Apple Corporation Enterprise resource planning is described as computer based systems which are created for the sole purposes of accomplishing different transactions within an organization by ensuring the facilitation of incorporated and effective planning, production and customer’s response in all sectors (Grant, 2003). Apple Inc is an American based multinational corporation with its headquarters based in California. It focuses in creating electronic, computer software, online services and computers. Apple Corporation is good example of an organization which has effectively implemented and applied ERP systems in its operation. The figure above indicates the adaptive ERP formula by Apple inc. for its information system. Value Chain Definition Value chain can be described as set of organizations that comes to work together to meet the market demands created by supply in the market (Oloreux et al, 2010). Value chain at Apple is responsible for giving out a description of activities conducted or performed by different organizations to create a product or service in the market. The process of creating value chain within an organization in all cases is based on cost incurred in creating a given product or service (Reuvid, 2010). Types of Value Chain There are different types of value chain existing in organizations today. The first is the porter’s value chain, which highlights nine activities that are responsible for increasing the entire value of an organization. The porter’s value chain model is always composed of both primary and support activities (Vaman, 2007). The primary activities are described as process that is used in the physical construction of product or service (Reuvid, 2010). An example of this may involve the operations of a product or service and outbound logistics used to collect and distribute products or services by an organization (Bas, 2012). Conversely, support activities are those things that allow or creates infrastructure for primary activities to be made possible in an organization. This may involve departments concerned with ensuring quality or avail finances for primary activities in an organization (Khosrowpour, 2000). The second type of value chain is the customer-centric value chain, which is basically concerned with competition and information in an organization. Likewise, it assists organizations to succeed amidst competition by highlighting different customer priorities and creating new designs to suit the priorities identified (Korpela, 2003). The third type of value chain is the Scott’s value chain, which focuses on different aspects of value chain by proposing use of strategy to produce a product or service. This involves an analysis into the different segments and value chain to accurately determine areas that are considered critical in the production of a good or service (Nick & Eric, 2014). An example is that there are different production processes within an organization, but there are key processes, which are solely responsible in determining the outcome of the produced product or service (Dasgupta, 2001). Sectors that might be examined here are ownership, stuff turnover, promotion speed amongst, flexibility, timeliness and others (Korpela, 2003). The last type of value chain is the Walters and Lancaster value chain by focusing on the point that to succeed in the production process all customers and stakeholders’ opinions have to meet through coordination and value production activities by an organization (Doloreux, 2010). An example of this in an organization would be to examine the value chain in use and effectiveness of the structures and processes involved in the chain (Weber, 2001). The figure below indicates the activities of the value chain in Apple Inc. Role of Technology in Generation Business Value Technology has greatly contributed towards the generation of business value for Apple Corporation with the different products and services they offer at the market (Dasgupta, 2001). The creation of the global market has created a need for Apple Corporation to incorporate technologies which promotes rapid information flow in different segments to transform virtually all products, services, operations and processes and competition that it may counter in its course for production (Holt & Perry, 2008). Therefore, technology is really important in generating business values to Apple Corporation as it helps them deal with different types of competition they encounter in the market. An example is that the use of automated machines like the computer and social media has greatly increased production and profits to within Apple Corporation (Shang & Seddon, 2000). Likewise the use of technology has resulted to growth of Apple Corporation leading to increased business value. An example is that Apple managers who implement CRM and ERP systems in the organization stands an opportunity of expanding because their operations are improved and they also gain competitive advantage over organizations which do not use the systems (Holt & Perry, 2008). Types of strategic information systems GAP model The SIS formula uses both computer and human rescue to bring out different functions in the organization. These resources work dependently in order to help in ensuring that the communication and information channel remains continuous (Axtell, 2001). The GAP model is used in organization to access the situation in terms of its information system and if there are any upgrading measures that should be taken. Improving the communication and information systems will enable the company to met the necessary standards of ideal information systems (Doherty et al, 1999). GAP model utilizes a portfolio of applications that will match the corporate interests with the information systems to increase the company’s advantage. The GAP model below represents the questions that run through a programmer when devising the best strategy for improving communication (Doherty et al, 1999). Software as a Service, Different softwares are generated today to improve communication and information. Softwares are developed in the computer programs to help organizations to achieve certain desired function. The function is often important to the information and communications detail within a company (Sang & Seddon, 2000). The softwares should however be safeguarded from viruses that may ruin the entire programs set up for computed resource planning. Formulation of different softwares that are tailor-made to suit specific functions enable Apple to provide their consumers with the best in their gadgets that are of high quality (Ashgate, 2008). Information systems change management  Information systems have the capacity to change the management. These changes are dictated by the automated requirements that prompt managers to adjust and lead the work force according to the information system. The changes are often made to increase efficacy and maximize the company’s utilization of its resources. Making decisions on the necessary changes that should take place is guided by the previous performance by the information system (Lucey, 1997). The outcome of this system prompts the organization to adopt better systems that will fully accommodate the interests of the company. Change is inevitable especially when it comes to electronic resource planning, the most recent and effective systems have to be adopted to ensure maximum profitability. The figure below indicates the adoption of different strategies and the logistics involved (Lucey, 1997) Types of systems (TPS, MIS, EIS) Other than ERP systems, there exist a number of systems that used for different purposes. Transaction Processing Systems (TPS) is a system that displays an organization in people, processes, databases and hardware and software used in recording different business transactions. TPS as basically created to increase efficiency in the labor sector, expand number of loyalty and achieve competition in a business setup (Leon, 2008). Conversely, Management Information Systems (MIS) can be described to the systems whose functions are associated with design, development, enhancement and support on different information systems in an organization. MIS main task in an organization is to manage and administer different information types through developing and monitoring all computer networks used in an organization. Lastly, Executive Information Systems (EIS) are created to increase information systems in an organization for managers’ consumption. Likewise, the system is extremely important in the sector of knowledge management. Individuals using EIS systems are always those tasked with senior managerial responsibilities as the systems aids them in the process of decision making (Anandarajan, 2004). Challenges of Conventional Systems Traditional value chain systems can be said to be ineffective because specific business information systems are not always presented in a manner that makes it easy to obtain information when required for use by an organization. Secondly, it has been susceptible to supply chain and experts in operations therefore its power on competitive advantage has been altered on the negative side (Ashgate, 2008). Lastly, it is not diverse because it lays focus on such aspects as assets, inputs and products. This means it does not provide a critical analysis of the process and structures of an organization used in producing either a product or service (Madu&Kuei, 2005). Reasons for replacement of Conventional Systems with ERP Systems Conventional systems did not integrate very good leading to the development of ERP system within the Apple Corporation. This was because using conventional systems was expensive, time consuming and ineffective. In addition, Apple business value was greatly reduced because of excessive formalities and deliverables used. The result of this was that the project or production process was bogged down (Shang & Seddon, 2000). Likewise, conventional systems made it difficult to develop a perfect solution or chain structures for Apple Corporation. In addition, the systems were focusing primarily on user acceptance as it allowed modifications leading to irregularities in the creation of product or service by an organization. Lastly, the conventional systems could not be effectively analyzed due to numerous paralysis problems encountered in the process of looking for a perfect solution for a product or service (Williams, 2007). ERP in Apple Inc and Why and How It Exists Enterprise resource planning within an organization can be said to be in set of information systems which honor and joins the different functions of an organization. ERP in Apple Corporation exist through effective developments of software designed to meet the requirements of the functions being performed by the organization. This is particularly important to Apple Inc because it assists it in co-operating budgets and meeting different deadlines before their time is due (Stair, 2011). Likewise, ERP may exist in Apple Corporation in a form that it enables it manage different effective cost integration in different sectors using a number of information systems. A good example would be a cases of Apple Corporation incurring heavy expenses on costs because it has not integrated ERP software in its operations and another organization incurring less cost on expenses as it has effectively utilized aspects of ERP in its operations (Leon, 2008). How ERP Systems Communicate With Each Other For effectiveness, ERP systems within Apple Corporation are required to effectively communicate with each other in the process flows of data. An example is that this can be achieved through accurately designing HTLM mockups and wireframes within the systems. The architecture documents and data models put in place should also be similar. An example is when Apple Corporation is applying for ERP systems in its operations; it should ensure that such things like the project phase, step and task are effectively designed to get the best out of the systems. Likewise, ERP systems requires project team collaborations in such areas like project calendar and deliverables management to ensure that the process is a success as this will enable easy flow of data from one system to the other (Tavana, 2014). Benefits of ERP ERP systems have a number of benefits to Apple Corporation such as enhancing the productivity and flexibility of customer response. Since Apple Corporation applies on ERP in integrating its main production processes , efficiency is achieved in these numerous production process and the results is always in increased business value for it. In using ERP systems, Apple Corporation also benefits from a reduced cost that would be incurred due to inefficiencies arising from the use on conventional systems (Umar, 2003). An example is that organization using ERP systems can effectively coordinate with different supplies to purchase materials at lower costs as the inventory being used is effective. Likewise, Apple Corporation enjoys the advantages of data consistency as a result of ERP systems as they are able to obtain accurate and effective information to make critical decisions to the productions of products and services. Lastly, ERP benefits Apple Corporation because it enables it to expand activities through the use of Internet. An example is that organizations using ERP systems are able to reach their customers over long distances and ensure delivery irrespective of distance and time barriers (Holt & Perry, 2008). ERP Drawbacks In as much as ERP systems are accredited due to the numerous advantages, there are also disadvantages in using ERP systems to Apple Corporation. The cost of using ERP technology is alarming as technology is considered to be an expensive tool especially for Apple which has not been in the industry for a long time. A good example is that organizations which are always small in nature or still developing in many occasions experience difficulty in raising funds required for the successful installation of successful ERP systems (Williams, 2007). The success of the ERP systems at Apple Corporation is dependent on the ways in which different employees makes use of it. This implies that these workers require different training to successfully manage the ERP systems in the organization and the costs associated with the training process is always hectic for small organizations to bear. Lastly, an ERP system in Apple Inc. does not always accommodate the element of change (D'atri, 2011). This is because individuals responsible for installing different ERP systems are always adamant not to change the structure of their systems. In addition, the time factor involved in the process of successfully implementing an ERP system is always ineffective and it hinders other process in an organization (Anandarajan, 2004). Remedies to drawbacks of ERP Overcoming this setbacks experienced by the ERP system at Apple is possible with ample training on the benefits of the ERP system to the organization. Ideal policies must be formulated to ensure that the people in charge of the ERP system are loyal to their assignment (Anandarajan, 2004). Employee’s satisfaction is a aspect that will assure the company of the best input by the employees and thus the ERP will be coordinated effectively. The workers will perform according to the management’s expectations. Eliminating the drawbacks of ERP at Apple may therefore be done through ensuring that the HR polices are on point to promote industriousness and competence. Solutions to the challenge of funds can be overcome by adopting more affordable strategic information systems that will eventually enable the company to generate funds to adopt complex systems. The issue of cost in business when it comes to employing a strategic information system can be resolved through deriving funds from other sources. The investment into SIS is worthwhile and it is bound to pay off with all-round outcomes. Conclusion Following the discussion of the strategic information system, the study recognizes that the contributions of different types of SIS empower a company to perform beyond its limitations. Eliminating the traditional systems of resource planning has contributed greatly to the industrial growth. The notable changes in management and planning have further led to elevation of economies and the employees to enjoy simpler working experiences through the information systems used. It is important for companies to overlook the setbacks of SIS discussed and implements ways of counter-acting the shortcoming to increase the effectiveness of SIS. Maximizing on the benefits of SIS will lead industries into faster mechanisms of creating an impact on their markets both locally and internationally. Appendices Appendices 1 – How apple uses strategy and how they implement and use new technologies Strategy and Implementation and Use of New Technologies in Modern Organization To effectively strategize on the implementation and use of new technology in a modern organization like Apple Corporation, Apple or individuals tasked for the implementations should avoid assuming that technologies are an IT process and view them as human projects. This is because technological tools are always expensive to install in an organization and when individuals tasked weigh the costs of installing such new technologies in an organization like Apple Corporation, then chances are that the process will turn out to be futile (Grant, 2003). A good example is that when Apple Corporation employs people to work for it, it is always prepared to go through the process of engaging the new task force, informing them and training them to be effective in their respective areas without being financially constrained. The same process should be applicable to modern organizations which desire to install new technologies in their operations as the benefits are always greater than the expenses used in purchasing technology related machines (Adam &Sammon, 2003). References ADAM, F., & SAMMON, D. (2003).The enterprise resource planning decade: lessons learned and issues for the future. Hershey, PA, Idea Group Pub. ANANDARAJAN, M. (2004). 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