The Contribution of Management Information System at Google - Essay Example

What Next for Google? Strategic information systems get defined as computerizedsystems implemented in strategic business opportunities in order to enhance their effectiveness of service delivery as well as increased their profitability positions (Bohlin 21). Normally, they are a series of systems that get developed purposely to respond to the identified corporate business initiatives. Many businesses introduce technological supported operational systems in order to increase their competitiveness with the industry, thus generating better returns. Through such technologies, organizations such as Apple Inc. and Google have been able to reduce their costs of production, carry out market segmentation, and produced differentiated products. The need to introduce modern technology in regular business operations have been necessitated by the stiff competition created through globalization. One of these latest technologies is the electronic commerce. With the competition intensifying, companies such as Google Inc. have gone an extra mile to make their operations electronic. The Contribution of Management Information System at Google Inc Qin broadly defines electronic commerce (e-commerce) as the widespread applications of computer networks and internet to communicate, carry out commercial transactions, and make online payments (34). It draws on a number of technologies including mobile commerce, supply chain management, electronic data interchange (EDI), automated data collection technologies, inventory management systems, on-line marketing, and electronic fund transfers. In this twenty first century, e-commerce heavily reply on the World Wide Web (www) in nearly every life cycle of a transaction, though it also rely on other internet-enabled technologies such as e-mail. It is an e-business aspect that aids is data exchange and facilitation of financial payments (Laudon and Guercio 37). E-businesses take the form of virtual storefronts (E-tail), on-line marketplaces, e-mails, or fax. Since 2000, the numbers of business transactions conducted by Google Inc. via online platforms have more than tripled. Kurihara established that e-commerce accounts for over 60% of retails transactions globally. Information technology has directly impacted on the business sector by expanding customer bases, increasing product information symmetry, and improving product/service quality (72). Internet serves as an interactive medium where the business community congregates and transacts. Besides, this medium helps in eliminating geographic barriers to trade and commerce. E-commerce is critical in the strengthening of customer relations as well expanding market capitalization. Technological diffusion and innovation are key to electronic commerce. Their advancements have led to acceleration of online trades. Computerized devices have been evolving since their introduction, with more user-friendly alternative getting developed. These additional features make them highly adoptable and multi-functional, thus helping in business management. Qin pointed out that the introduction of online commerce has resulted the widening of customer bases globally (29). Through e-commerce, the word has become ‘one global village’ where people freely interact; a process that lead to the broadening of market bases. This is an indication that electronic commerce helps in the expansion of a firm’s areas of operation. Laudon and Guercio, in the study title “The Cost of Doing Trans-boundary Businesses” established that e-commerce and related technologies reduce the costs of doing multinational business by approximately 21% (56). Through e-technologies, buyers have access to a range of products and services at relatively affordable costs. They can acquire their preferred products or services at the comfort of their seats. Therefore, travelling-related costs are abolished. This has been made possible by the development of online-shopping malls; where customers order for goods through the website. The orders are then shipped to the customer at discounted shipping charges. This technology has also led to a drastic drop in transactions costs involved in multinational business operations. As a result, merchants enjoy increased profit margins. According to Kurihara (68), e-commerce increases market capitalization. Perfect example of companies that currently enjoy higher market capitalization and better economies of scale are Google, E-bay, and Amazon. Though the two have countable retail outlets globally, they have been successful than Barnes & Noble Ltd. that has 1000 decentralized outlets. Many multinational companies have introduced web-based business in order to compete fairly with players. Stiff competition for limited market share has prompted small firm to reconsider their position on adopting electronic commerce. A cost-benefit analysis conducted by Goldstein and OConnor showed that infant firms operating online businesses generate 23% extra revenue compared to similar businesses (35). This is an indication that e-commerce has the capacity to improve a firm’s profitability performance through increased marketability, enlarge customer base, reduced cost of doing businesses, and increased competitiveness. E-commerce technology was first introduced during the 1960s. It has since grown and developed with new technologies, inventions, and innovations being advanced. The e-technology was borrowed from the EDI; a computer-to-computer data transfer technology that replaced faxing and mailing of documents. It was a data transfer technology in the format of ANSI ASC X12 (U.S. recommended standards) that enabled business partners transferred invoices, data, and orders at their comforts. Through the help of Value-Added Network (VAN), EDI allowed for a seamless transfer of customers’ orders with no human intervention. Michael Aldrich (an English innovator, entrepreneur, and inventor) is credited with the development of this on-line technology (Chaudhury & Kuilboer, 2002). However, these earlier technologies only favored Business-to-Business (B2B) transactions. It was until mid 1980s that Business-to-Customer (B2C) became widespread following the development of World Wide Web and PC’s (Bohlin 67-8). Since its introduction, e-commerce has revolutionized and transformed institutional performances across the world. Businesses and entrepreneurs have benefited from this technology to improve service delivery, increase profitability index, reduce product/service delivery time, and expand their market shares. Also, it has reduced the costs of doing business internationally, thus increased returns on business investments. The safety, convenience, and efficiency of this technology have improved significantly since the inception of the idea. It has enlarged geographical areas of operations for the business community by opening up of remote locations that would have been physically inaccessible (Tkacz and Kapczynski 52). Irrespective of one’s location, through e-commerce, it is possible to exchange goods and services, and make payment using wireless cash platforms such as paypal.com, e-bay, and payoneer.com. Another development in e-commerce is mobile (online) banking; a technology that was first used by Citibank and Wells Fargo in 1995. Other financial institutions have since then adopted it. This is an electronic payment technology that enables financial institutions’ clients to carry out their day-to-day financial transactions via the institutions’ websites. This service allow account holders to perform non-transactional operations such as viewing account balances, ordering cheque books, downloading bank statements, among other services. On the other hand, it enables them to transfer funds to linked accounts, pay third parties (bill payments), apply for credit cards, and monitor account’s transactions (Goldstein and OConnor 44). Through this technology, bank customers can conduct their businesses, make and receive payments even during non-banking hours. E-commerce and related technologies are being embraced by both developed and developing economies. In some European countries (Czech Republic), e-commerce account for over 24 percent of total revenue generated in the economy. Over the last four years, the United Kingdom has had the largest e-commerce market globally. With more than 400 million internet users, China’s e-commerce is fast growing. This was evidenced by $45.6 billion increase in online sales in 2012, thus accounting for 9.6 percent of total international trade. In 2012, e-commerce sales reached a record high of $1 trillion. This technology is fast expanding and it expected to reach out to over four billion come the year 2050. It is expected that mobile transactions and purchases will account for nearly a quarter of e-commerce market by 2017 (Laudon and Guercio 66). At this pace, the future of many businesses heavily depends on their ability to embrace e-technology. Works Cited Bohlin, Erik. Global Economy and Digital Society. Amsterdam: Elsevier, 2014. Internet Source. Goldstein, Andrea, and David C OConnor. Electronic Commerce for Development. Paris: OECD, Development Centre of the Organization for Economic Co-operation and Development, 2002. Print. Kurihara, Yutaka. Information Technology and Economic Development. Hershey: Information Science Reference, 2014. Print. Laudon, Kenneth, and Guercio Traver. E-commerce: Business and Technology. New Jersey: Pearson, 2014. Print.  Qin, Zheng. Introduction to E-commerce. Berlin: Springer Berlin, 2009. Print. Tkacz, Ewaryst, and Kapczynski Adrian . Internet Technical Development and Applications. New York: Springer, 2009. Print. Read More