Information system in an organization is very fundament because it serves as the main element that contributes to the decision-making process effectiveness. Manager and executives rely more on the information system especially on matters to do with their competitors. A good and effective information system should be able to cover the data concerning the competitors’ customers. This simply means that the information system should identify the customers demand and come up with the suitable strategic plan to meet their needs and requirements. It thus means that it establishes the supplement products and services that need to be incorporated in the company to win the customer loyalty, making them to prefer their products and services rather than those of their competitors (Sarngadharan, 2010).
The new information system should identify the factors that drive the customers to prefer their competitors’ services and create a method that shift their attention and demands to purchase their supplies. Information system assists the organization both in the decision-making and in solving managerial problem. For example, a management information system (MIS) would enable the entire management hierarchy to decide on the best methods on how they should relate and improves their business operations with an objective of outshining their competitors in the market share (McLeod 2009).
The advantage of implementing an information system in an organization is that it enables the relevant bodies to analyze different data concerning their competitors’ customers such as statistical analysis within a convenient period thus enhancing easy and fast decision-making process. This system caters for diverse management requirements because the top-level management needs strategic data and information. In such a context, the organization has to seek for an executive support system (ESS) that would distinguish the complex information needed to make the entity more competitive (Ross, 2004).
An organization with an information system makes the institution attain a competitive advantage in the sense that it reduces on the cost production and that of operations. The organization would have the opportunity and mechanisms to differentiate their goods from those supplied by the competitors. An information system comes along with a high level of innovation making the organization to major mostly on a selected segment of the market share. This system should encompass the features that would enable the organization to engage in e-commerce hence providing more and reliable approaches for competitive business (McLeod 2009).
On the contra to the positive impacts, it brings to the organization the system also disadvantages the human labor. The human work force gets eliminated by implementation of the system because most of the activities would be conducted using simplified mechanism. Most of the new system, require s for trained personnel meaning that it is more costly during it installation and absorption into the management. The data and information offered by the system may not be timely all time thus making unnecessary inconvenience (Sarngadharan, 2010).
Most common ethical problems are as a result of the failure of the information system. That the information system may mislead the entire management leading them to reach an agreement on a decision based on unreliable facts. For instance, the management may decide to invest in a certain business expecting to earn more superiority than their competitor only to realize a loss. During the organization endeavor to winner their competitors customers’ loyalty they should disregard whether the customer is a business entity or an individual but instead should utilize on both types of customer in order to ensure that the exhaustively takes over the market. This therefore gives it the power the customers in the market (Ross, 2004).
McLeod, R. (2009). Management information systems (3rd ed.). Chicago: Science Research Associates.
McMahon, W. W. (2003). An efficiency-based management information system. Paris: Unesco, International Institute for Educational Planning.
Ross, J. E. (2004). Management by information system. Englewood Cliffs, N.J.: Prentice-Hall.
Sarngadharan, M., & Minimol, M. C. (2010). Management information system (Rev. ed.). Mumbai [India: Himalaya Pub. House.