How Information Systems Help Organizations Meet Strategic Business Objectives

It’s inconceivable for businesses to operate without significant investments in systems. E-Commerce firms like eBay, Google and Amazon will simply vanish without employing information systems. Service industries like finance, real estate, insurance, education, medicine and travel will cease to operate if not bolstered with information systems. Likewise, retail giants such as Sears and manufacturing firms like General electric and General Motors bank upon information systems to thrive and prosper.

Tall buildings with elevators, offices, and telephones were used to be the foundation of business in 20th century but information technology can solely determine the success or failure of a firm in 21st century. It’s not possible for a firm to implement corporate strategies and achieve corporate goals without efficient use of information system. A company decision like launching new products or enhancing market-share depends on the quality and kinds of information systems in the organization.

Specifically, business firms invest profoundly in MIS in order to achieve six strategic business objectives:

  • Customer and supplier intimacy
  • Operational excellence
  • Competitive advantage
  • Improved decision making
  • New products and services and business models
  • Survival

Customer and Supplier Intimacy

Knowing millions of offline and online customers can bring windfall gains to the company which is why companies invest a significant amount of time and money to enhance intimacy with the customers. MIS and technologies help companies great deal to engage with customers.

Operational Excellence

Businesses continuously better the efficiency of their business in order to achieve higher profitability. MIS and technologies are amongst the most effective solution available to a company to ameliorate operations.

Competitive advantage

When a firm provides superior products at low cost and respond to customers in lesser time fetch higher sales and revenue to the company.

Improved decision making

Right information at right time is required to make an informed decision. But if a company counts on best guesses, forecasts and luck, the result will be misallocation of resources, poor response time and over or under production of goods and services.

New products and services and business models

MIS and technologies enable firms to create new products and services as well as new business models. A business model explains how a company produces, delivers and sells a service or product to create wealth.

Survival

Firms also invest in information technologies to meet the necessities of doing business. For instance, In the New York region introduced the first automated teller machines in 1977.

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