Role of Information Systems in Building Competitiveness

Presented by: Ashish Menon Simant Shekhar Das

Definitions
Information Systems An information system(IS) is typically considered to be a set of interrelated elements or components that collect(input), manipulate(processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

Open System
Close System

Computer-based Information System

An Information System is an organized combination of people, hardware, software, communication networks and the data resources that collects, transforms and disseminates information in a organization.

IS Vs IT
INFORMATION TECHNOLOGY Hardware Software Databases are used to build INFORMATION SYSTEMS

Payroll System

Inventory System

Networks
Other related components

Marketing System

Customer Service System

9th pillar

12 pillars of competitiveness to measure global competitiveness of a country.

This pillar measures the agility with which an economy adopts existing technologies to enhance the productivity of its industries. In todays globalize world, technology has increasingly become an important element for firms to compete and prosper.
In particular, information and communication technologies (ICT) have evolved into the general purpose technology of our time, given the critical spillovers to the other economic sectors and their role as efficient infrastructure for commercial transactions. Therefore ICT access (including the presence of an ICT-friendly regulatory framework) and usage are included in the pillar.

IT as an Enabler - A Competitive Advantage

Increased sales Better customer service Improved customer relationships Faster service More efficient service Diversity Reduced costs Higher quality products

IT as a Facilitator to New Markets

Different demographics can also be reached through the use of trendy and popular media. IT plays the role of facilitator because it acts as a go-between between the business itself and the new market.

IT to Provide Agility

Disaster recovery and business continuity Service delivery Scalability customer service Growing or shrinking product range Access to customers.

IT to Enhance Decision Making

IT to Reduce Risk

Many risks that existed using the traditional paper systems can be mitigated however a brand new set of risks have been introduced. Some elite IT systems, however, have been developed as fail safe systems. These are deployed as mission critical systems and have the primary task of reducing the risk of failure to an infinately small percentage.

Why is Information Technology Important in Business? There are many businesses which are in need of the
software packages for satisfying their operational as well as functional needs.

For fulfilling this requirement, these companies sign deals with the software manufacturing companies. Information technology is useful in ensuring the smooth functioning of all the departments in a company such as the human resource department, finance department, manufacturing department and in security related purposes.

Information technology allows quick transmission of information inexpensively and conveniently. Firms can reduce costs of production, procurement and inventory savings thus, higher integration with suppliers. Marketing, distribution, and transportation costs may be greatly reduced. Savings in retail transactions as the market increases; proximity to wealthier potential clients is eliminated.

What is different with Information Technology?

High fixed cost but low marginal cost. The cost of producing the first copy of an information good may be substantial but the cost of producing additional copies may be negligible. Network Externalities. Technologies subject to strong network effects tend to exhibit long lead times followed by explosive growth. Lock-In Issues. once chosen, the cost of switching information goods become difficult.

Strategic Information Systems Applications

Florida Power and Light - computerized TQM Geisinger - intranet J.C. Penny - custom made suits MacGregor - EDI Otis: IT used to block competitors

Instead of

TELLING A STORY

Create the to allow a story to be Tools told