Data Processing Management Systems

Question: Discuss about the Data Processing for Management Systems. Answer: Introduction An information system is any organized system that leads to collection as well as communication of information. With the help of information system, a group of components interacts to generate information. The probable effectiveness of diverse kinds of Information System for environmental management is well known. Advances in information provision had led firms to endeavor to enhance information system. There are three wide-ranging types of IS that are enhanced and in wide-ranging use are monetary systems, operational systems as well as strategic systems (Xu et al. 2014). At present companies are gradually viewed as knowledge-based ventures in which practical knowledge management is imperative for competitiveness. IS plays an important role in the operation of trades as well as economic and non-economic aspect such as decision making as a big role of administration. Amazon has designed an e-business approach such that various technical innovations offer thousands of goods at lower price (Dombrowski et al. 2015). Critically discuss at least one successful and one unsuccessful examples Gaining competitive advantage is vital for an organization. Competitive advantage is described as a good or a service that is valued by customers of an organization. Competitive advantages are characteristically provisional, as competitors often look for ways to replica the competitive advantage. There are several roles that are played by Information Systems in terms of competitive strategy. Most of the organization makes the use of information systems to essentially shift the cost of doing trade (Jones and bio 2016). One of the most successful examples of information systems is the innovation management of Amazon. Amazon has a customer-centric mind set and as a result, they are able to provide their customers with what they want. The company mostly makes the use of two major systems that have been developed for its e-business policy in order to administer enormous number of commodities. Amazon Web Services has allowed the partner retailers, the single sellers as well as the developers to promote their goods through Amazon.com web site by building their web based application in a low cost method and collecting their data. Simultaneously, Amazon.com has broadened its data and vigorous infrastructure reasonably and without difficulty by releasing several incorporated web services. In turn, these services have offered Amazon.com to supervise all activities to analyze and make correct decision for its international e-business. With the help of information system, Amazon.com has been able to build a system that is known as SAS (Smart Analytic Search) in order to allow noticing as well as lessening the examples of deception in Amazon web site by investigating the behavioral pattern of fraudsters. The personalization of customers is also measured with the help of SAS that also investigates the fact that how well Amazon.com serves its customers. With the help of IS, the purchasers are able to use the web site from anywhere at any time to purchase a consistent good by less price. The purchasers are more expediency to get more dependable information about goods provided by Amazon. Amazon web service has become a worldwide platform for individuals to retailers in order to sell their commodities (Chen, Chiang and Storey 2012). The successful role of information system at e-commerce sector of Amazon.com in B2C and B2B is mostly based on how the company manages with the quick changes of competitive worldwide market by manufacturing compatible good segments for its customers. The endurance and the improvement lay under how the company efficiently comprehends its strategic planning with the administration information system to raise its proceeds and usefulness. It also includes the transaction processing system that is mostly based on the creation of expediency for users. Customers mostly have a private account to directly log into their Amazon.com profile. The customers also have their own modified characteristics that involve Shopping basket, wish list as well as Shopping Cart. The customers are also with shortcuts with just one click in order to use dispatch address that are already in the system. The information system also includes recommender system to provide the pertinent as well as helpful information to the clients. The company also has an enormous number of links that have been maintained among items and customers (Smart Insights 2016). Between the year 2001 and 2003, Amazon invested more than about $300,000 in order to build new distribution centers as well as acquire information systems software. There are hardly any criticisms against the company asserting that it would never recuperate the investment. With the help of information systems, Amazon is likely to become profitable in the long run and earn additional proceeds. Amazons makes the use of information systems in order to enhance profitability faster. According to a recent report, net sales of Amazon doubled and present proceeds also increased by 40 percent. Oracle information system that is used by the company is built as a multi-terabyte database for the company. On the other hand, the SCM software that is used by the company mostly controls costs and improves efficiency related to shipping and logistics. The CRM information system that is incorporated proposes to work up e-marketing hard work with the help of analysis of preferences of the customers and provision of commodities for precise segments. With the help of order processing system, Amazon is able to record information of credit card and is linked to a delivery system. The CRM system of Amazon generates business value by integrating customer sales as well as services. One of the most unsuccessful examples of information systems is the failure of the Hilton Hotels information systems. The hotel attempted to apply a system that allowed customers to confirm reservation for hotel bookings as well as car rentals online. They utilized the information system with the purpose to make booking system easier for both the customers and the company. However, the utilization of IS did not bring any productive result. In spite a huge investment of 125million dollars, the project disintegrated when it became apparent that the company would miss its deadline by 2 years. The major disadvantage that is associated with Hilton Hotel is the transaction processing system. This system will not be able to handle if the trade is not large enough to make use of a transaction processing system at the hotel. It has also faced problem in terms of security and hardware problem as it was successful to handle enormous quantities of customer and business data (Stair and Reynolds 2 013). Critically discuss the success factors One of the major success factors is that Amazon makes the use of oracle as the enterprise resource management. With the help of this, Amazon is able to hold data related to its customers. It also makes the use of customer relationship management in order to gain customer satisfaction. The management information system is mostly used for collecting its Customer relationship management by Amazon.com. The innovation strategy of the company is also considered as one of the major that have led to the success of the company. The major strength of Amazon.com came from organizing its information systems such as data, transaction and logistic procedure in a precious manner. The major factor that led to the success of information system is Service Oriented Architecture (SOA). It allows information system of Amazon.com the prospects to be ultra scalable, high routine and availability of sustainable growth. The system had mainly focused on the performance of end-data to keep more items, more cus tomers and more orders to strengthen the online sites. The pleasant appearance of this system is that it has been built to reuse the information in multi-contexts (Ward and Peppard 2016). Amazon.com productively makes the use of the major individuality of managing information systems, such as management directed, common data flow, management oriented and easiness of use. It is mostly considered as administration oriented as it is designed for using from top to down. It is considered as management directed as the enhancements are vigorously directed and encouraged by investments. As the system covers all functional areas of business, the information system includes ordinary data flows (Anderson et al. 2013). It can also be said that the achievement factors of the information system of Amazon.com comes from the following causes: All the information is practiced and checked as it takes place All the accessed data is protected through approval method All back up data is taken to uphold dishonesty and loss of data The system is developed through a consistency of designing and expansion The information system is confirmed through the consistency to trade goals and procedures (Jannach et al. 2016). Discuss various factors influencing the success and the failure The manufacturing and service industry in Australia is compared by providing industry specific inside into the IS success and failures. The required data was gathered through questionnaire survey that was conducted among top five hundred businesses in Australia. The effect of environmental hesitation and strategic application of IS on the performance of firms. The correlation among professed environmental hesitation and the level of strategic applications and the facilitators of IS strategic arrangement is empirically scrutinized (Shapiro and Varian 2013). The factors affecting success of organizational attempts at gaining and enhancing competitive advantages via IS/IT are as follows: The information technology is incorporated into the decision-making purposes. It sets clear principles that the IS focuses on the key issues of the businesses. A suitable information processing technology is requisite to meet the data dispensation and analysis requirements of the users of the IS/IT is selected. The information system is oriented, distinct and intended in terms of the requirements of the individuals and its operational feasibility is ensured The IS/IT is kept under continuous observation; so that it is open system design is customized according to the changing information requirements. IS focuses on the consequences and objectives as well as highlights the factors for non-achievement. The information system recognizes that the diverse information needs for diverse objectives must be met with. The globalization of information in separation from the dissimilar objectives directs to too much information and information and its non-use. The IS concentrates on enhancing the information support to manager decisive success factors. It concentrates on the mission decisive application serving the requirements of the top management (David and David 2016). The factors affecting failure of organizational attempts at gaining and enhancing competitive advantages via IS/IT are as follows: The information system is envisaged as a data processing and not as an information processing system. The IS does not provide the data that is required by the managers but it have a tendency to provide the information usually the function call for. The complexity in the business systems is underestimated and not recognizing it in the IS design leads to issues in the victorious implementation. Deficient of training and approval that the customers of the information and the producers of the data are dissimilar, and they have to play an imperative accountable role in the IS. Sufficient attention is not given to the quality power characteristics of the inputs, the processes and the outputs leading to inadequate checks and controls in the information system. The information system is not able to provide perfect data to all the customers in the organization (Tang and Zhang 2013). Critically discuss the sustainability of competitive advantages There are mostly three IT assets, such as people, shared risk and responsibility as well as technology, which help to develop sustainable competitiveness. Sustainability of competitive advantages is accomplished by making the use of inward systems that are not observable to competitors and using modified approach. Strategic information system mostly supports competitive business strategy of an organization in order to improve relationships with customers and suppliers as well as improve productivity. Competitive advantage that is sustainable is mostly important for an organization. There are mainly four generic strategies that is used to achieve sustainability of competitive advantages via IS/IT (Harvard Business Review 2016). Low-Cost Leadership: Information System is used to accomplish the lowest operational costs and lowest prices. In other words, a supply chain management system can integrate a well-organized customer response system to directly associate customer behavior to distribution and production, serving lower inventory and distribution costs. An organization can make the use of information systems that will essentially shift the cost of doing trade as well as diminish the costs of business procedure (Chiu et al. 2016). Product Differentiation: Information System is used to enable new goods and services as well as change greatly the expediency of the customers in using existing goods and services. An organization makes use of information systems to enhance differential characteristics to reduce differentiation strategies of its competitors (Shapiro and Varian 2013). Focus on market position: A precise market focus is enabled with the help of information systems to constrict linkages with suppliers and develop familiarity with customers. Hilton Hotels mostly uses information system related to customers with detailed data about active guests to provide tailored services and reward profitable customers with extra privileges and attention (Pearlson, Saunders and Galletta 2016). Strengthen customer and supplier familiarity: IS/IT is used to facilitate direct access from suppliers to production schedules. This in turn provides more lead-time to suppliers in manufacturing products. Switching costs is increased due to strong linkages between suppliers and customers. Internet technology is based on global standards that will make it easy for competitors to compete on price alone and for new competitors to enter the market. The value chain model emphasizes specific activities in the business where competitive approaches can best be applied (Sashi 2012). Conclusion It can be concluded that Amazon.com has broadened its data and vigorous infrastructure reasonably and easily by releasing several integrated web services. It can be concluded that information system had emerged as an agent of incorporation and the enabler of new competitiveness for enterprises in the international marketplace. Amazon.com has become the leading B2C online company that has been threatened by the brick companies. Each customer who purchases through amazon.com has his or her profile in Amazon website. It always encourages its customers in order to add favorite items to the wish list. This in turn helps Amazon to know their customers better. The company has successfully incorporated CRM system as well as innovated a number of approaches in order to gain and satisfy individuals with the help of the implementation of electronic customer relationship management. References Anderson, E.W., Wipfel, R. and Golan, J., Novell, Inc., 2013.System and method for recording collaborative information technology processes in an intelligent workload management system. U.S. Patent 8,543,916. Chen, H., Chiang, R.H. and Storey, V.C., 2012. Business Intelligence and Analytics: From Big Data to Big Impact.MIS quarterly,36(4), pp.1165-1188. Chiu, C.M., Wang, E.T., Fang, Y.H. and Huang, H.Y., 2014. 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