Questions
- Compare each organization’s use of information systems to help manage internal operations and to make decisions.
- Assess how these two organizations use information technology for competitive advantage.
- Appraise the individual and organizational consequences of the use of information technology, and recognize potential security breaches and computer crimes.
Answer
Information Systems in Organizations
Compare each organization’s use of information systems to help manage internal operations and to make decisions
Information technology has massive influence to the organizations performance. Hilton hotels and Wal-Mart are good examples of best organizations in their field of expertise. These two organizations are able to operate more efficiently and effectively due to usage of information systems, making them very successful.
The number of employees has relatively decreased due to use of information systems. Fewer employees are able to handle more tasks due to effective systems. Example, clerical officers in the two firms are able to quickly run data regarding their stocks in different databases within a short while. Managers are able to make down seizing decisions which reduces employees’ expenses and increasing profitability (Xu &Quaddus, 2013).
In the past outsourcing was quit an expense and most companies avoided the strategy due to costs. Information systems have dramatically influenced the area and the cost is relatively cheaper. Managers are able to make outsourcing decision while still spending fewer amounts.
Managers are able to effectively communicate any required orders to their subordinates very quickly. These managers are able to ensure that urgent matters pertaining the firm are quickly solved. This improves their service production levels, satisfies their customers and overall results is growth in the firm.
Assess how these two organizations use information technology for competitive advantage.
Wal-Mart is the largest retailer in the world and has continuously offered quality services to their customers. Wal-Mart uses a continuous stock replenishment system at their sales counters whereby orders are directly transmitted to their merchandisers for restock orders. Bar codes of each items paid at the checkout counters are sent directly to a main computer at the headquarters. The orders are the directly sent to the suppliers for new restocking; the suppliers are also able to access the sales and inventories databases from the web (Xu&Quaddus, 2013)
The method is very effective and ensures that stock is always available. The method is very efficient thus reducing on the ordering cost expenses in the organizations. This makes Wal-Mart the best place for your shopping compared to their competitors. This strategy maintains old customers and is also able to attract new customers making this retailer the best in the world.
Hilton hotels use an information system called OnQ. According to Xu&Quaddus (2013) the system contains comprehensive data regarding active customers across all the hotels. The system is very effective whereby an employee at the front desk is able to counter check a customer to identify if they are active customers in the firm. This system is designed to identify profitable customers and give extra privileges and attention. The competitive advantage has gradually increased since the new system was started, more customers and more profits for the firm.
Appraise the individual and organizational consequences of the use of information technology, and recognize potential security breaches and computer crimes.
According to Xu&Quaddus (2013), implementing information system is a long process and very expensive. Organizations need to evaluate the risks associated with the systems. Both Wal-Mart and Hilton may have a huge problem if their systems failed or were hacked by hackers. The systems become unreliable and the expected goals are not achieved. Competitors may also copy their systems so firms must ensure that they have strategically planned how to further improve their systems in the future.
The information system is exposed to hackers; this is a significant threat as it will interfere with daily transactions of the companies. Systems may experience failure due to different reasons; the company should be on the watch to quickly solve such problems. There may also be internal fraud occurrence by the employees.
Reference
Xu, J., & Quaddus, M. A. (2013).Managing information systems: Ten essential topics. Amsterdam; Paris: Atlantis Press.
