Information systems help companies compete by maintaining low costs, differentiating products or services, focusing on the market niche, strengthening ties with customers and suppliers, and increasing barriers to market entry with high levels of operational excellence.
It helps businesses to leverage their core competencies by promoting the sharing of knowledge across business units. Information systems facilitate business models based on large networks of users or subscribers that take advantage of network economics. A virtual company strategy uses networks to link to other firms so that a company can use the capabilities of other companies to build, market, and distribute products and services. In business ecosystems, multiple industries work together to deliver value to the customer. Information systems support a dense network of interactions among the participating firms.
Impact of Information systems on organizations:
The introduction of a new information system will affect organizational structure, goals, work design, values, and competition between interest groups, decision making, and day-to-day behavior. At the same time, information systems must be designed to serve the needs of important organizational groups and will be shaped by organization’s structure, business processes, goals, culture, politics
Lack of visibility into real-time execution is a serious problem because that leads to a situation where key stakeholders are completely unaware of what the leaks in the system are which are causing significant drain on productivity and resources.
Higher OTIF is the order of today and the future. This trend will continue to put pressure on suppliers to align themselves in terms of their operations and processes to avoid penalties and retailers to boost sales.
FarEye's CEO, Kushal Nahata awarded at the India Retail & eRetail Congress