A very interesting and in-depth article about ERP and why you should consider using it. A very good read that gives a lot of good information.
ERP combines software systems from departments like finance, human resources and warehouse management. It combines it into a single, integrated software program running off a single database. This way the various departments can more easily share information and collaborate. It’s a tall order, but that integrated approach can have a tremendous payback if companies install the software correctly.
Purpose of Information Systems
Information Systems (IS) are to help you and your company to find new strategies in order to gain competitive advantage in your industry. One way to do this is through adapting IS in your business. IS helps the organization to use its data, reduce workload and assist compliance with mandatory regulations.
3 Roles for IS
Information Storage and Analysis
Companies now use more advanced databases that contain all types of data about what they do. IS can store, update and analyze the information. From all the information that the agency has, they can figure out new solutions to both current and future problems. Information can also be integrated from different sources both in and outside of your company. This allows you to keep the company up to date with both internal performances and external opportunities or threats.
Assist with Making Decisions
Information Systems are all about helping you to make strategic plans for your business. The management team uses the information gathered to create plans and decisions for longevity and making more money. You use IS to measure and test all the information gathered from all sources. The analysis and comparison of market trends helps you to decide if your strategic decisions made are both adequate and are good quality.
Assist with Business Processes
IS helps businesses to create more value based systems for your company. Information Systems are integrated anywhere to measure out where tasks will make that department run better and for less money. Or it can make sure that everyone follows whatever regulations each department needs to follow to stay in compliance with government laws. It both simplifies business processes and gets rid of unneeded activities. They also add controls to employee processes. This in turn makes sure that only the ones who need to know have access to certain tasks. IS gets rid of repetitive tasks, increases accuracy and leads to better project planning and implementation.
Implementing new systems costs a lot of money. It includes not just the installation but also employee training sessions. Some employees might even resist the changes being brought on. This in turn can hinder your operations and employee turnover could increase. Just make sure to have strong leadership in place when doing this. It will help guide employees and managers through the transition while weighing cost against benefits to see if you would really like to do this.
Smart cities are becoming more and more popular now. By 2050 they will be so popular that more people will live in them than out of them. I find them extremely interesting about how they can help society.
Think of how they help the environment, populated areas, and traffic. They will be instrumental in the future to creating new technologies for solar power, finding new water sources, and pollution control. Exciting times are coming. I can’t wait to see what it brings us.
Business Intelligence and Analytics
What is the biggest challenge today for upgrading your business? You’ll find the answer through using tools enabling business intelligence (BI) and analytics strategies. It seems that businesses are looking to adopt BI and more advanced analytics to achieve bigger gains. Upper management needs to explore more information to gather key areas that they feel need improvement.
The Biggest Challenges:
- Data Preparation – The ability to complete data management in putting together and cleaning data before compiling reports and analytics.
- Skills and Leadership – Is there a structure focused on needs of both BI and analytics along with more complex methods?
- Ease of Use – Can those who are less technically inclined be able to use the system?
The biggest gaps are in data prep. It is more difficult and more complex than it seems. The size of the company and how they are using BI and analytics doesn’t matter. They all see big gaps in how they filter, transform and prepare their data. Good data gathering and compiling is completed. It helps find both relationships and potential outcomes quickly. The information found here will help improve your company’s productivity and build competitive advantages. Consider automation and self-service also for those in the agency who are less technically inclined. Analytics are behind BI. Improvements are needed to be able to prepare, augment and explore the data gathered. This will help your agency to find root causes and trends. You can then build and update predictive models through using machine learning.
Skills and Leadership
Skills and leadership are key too. Agencies strong in these areas still say that there are many challenges in innovation, creativity, and leadership. Shown executive support enforces the need for upgrades or change just will not happen. If there’s no strong vision and support at this level, the initiatives will fail or underperform. A leader needs to make sure that they openly show the value of success from the new initiatives.
Ease of Use
Overworked data scientists or analysts already in your company because of changes being implemented need help. In this case, it’s better to create self-service and interactive tools where everyone can find them. Nontechnical users will need the guidance, and instead of overworking your data scientists and analysts, this can help. There’s software built to aid building systems that can detect relationships, correlations, segments, and outliers. It could use natural language to create queries. It could present context-based narratives of important findings. All sorts of things could be created with the new software to help the organization.
Increasing adoption of BI and Analytics
- Invest in data and data prep
- Nurture culture, skills, and leadership
- Keep self-service and Ease of Use in the Forefront
If the challenges of gathering and preparing data are not addressed, it will become more difficult to find a use for BI and analytics. If strong leadership isn’t used to make the employees excited to use the new technologies, the initiative will be a failure. And if ease of use with smart/automated capabilities isn’t used, it’ll hinder adoption of BI and more advanced analytics. Consider these things before upgrading your systems.
Strategic information systems planning (SISP) is a very important issue that has to be considered when upgrading. Information technology (IT) use along with proper planning can help increase business success. SISP is used as it’s considered a great tool to support the company. It makes sure that IT activities go along with what the company does and needs.
What is Strategic Information Systems Planning?
SISP improves organization performance however upper management wants to focus. The aim is to achieve maximum benefits from resources while reducing risks at the same time. All resources work efficiently, effectively and competitively together to make the company stronger and more adapt. Especially now as IT is an important part of any company. Strategic Information Systems Planning is intended for technology that’s used at the company level. It needs to mesh with what the needs and strategies are of said agency.
- Align IT with business
- Gain competitive advantage,
- ID new and higher payback applications
- Increase top management commitment
- Improve communication with users
- Forecast IT resource requirements
- Allocating IT resources
- Develop information architecture
- Increase visibility of IT
4 Dimensions of SISP
SISP helps the above mentioned by addressing future needs for IT/IS resources with business plans. There are four dimensions included to make sure everything is included.
The first three are considered goals while the fourth is considered improvement over time.
SISP methodologies include gathering information and making plans comprised of one or more techniques. The techniques can be viewed as abstract systems. They change organization input into a strategic plan for output. Some of the more popular planning techniques are:
- Looking at Stages of Growth and Critical Success Factors – Here flexibility of needs can be used as a measurement tool. This methodology needs support of others. CSF alone makes information requirements difficult to reach.
- Competitive Forces Model and Value Chain Analysis – Michael Porter’s model analyzing threats of new entrants and bargaining power of buyers and suppliers. Also reviewed are threats of substitutes and rivalry of competitors. It’s used to get products and services to buyers and servicing. It also finds primary and support activities that can add value to the product or service.
- Scenario Planning and SWOT Analysis – What will the future bring? Actions to take if future is going in a direction not wanted.
Criteria of Choosing
The criteria of choosing methodologies include availability of resources, internal policies and preferred suppliers to name a few. It would be the company’s choice as to what is more important to them. Which they would want to improve the most?
SISP leads to good planning. This in turn helps companies stay ahead in competitive environments. You have to make sure that top management stays aware of best processes for SISP. They need to stay committed and involved in order for it to be considered a success.
There is no best way to implement SISP. It’s up to the companies which way they want to focus what they want to improve. The success would be applied to how well they used methodologies in their planning process. Were success and failure factors applied while planning and implementing the changes? These are the questions that need to be answered in order for Strategic Information Systems Planning to be considered a success.
The use of information technology (IT) has dramatically increased in the business world in the past decade. It has been acknowledged that information systems (IS) is a very important step to compete and grow. There are four elements of IS that new systems need to work correctly.
- Customers – The main function of IS is to be able to better support the end user or customer. This is both internal and external. Externally it could be an online shopper who wants to buy from a website. Internal customers would be something like employees or one department in a company who needs supplies from another department. IS was developed in order to better support external customers. Also something to focus on is flexibility supporting internal customers.
- Products and Services – This deals in data transformation. The IS has to work well in any industry. It helps prepare many types of services and/or products based on design. Customer expectations have to be satisfied in order to be considered successful.
- Business Processes – Improvements to processes directly influence performance. It provides relevant information to the company. This improves said company’s processes by adding or removing steps as needed.
- Communication Technology and Computers – This is the central piece of the information system. They have to be able to deliver efficient business processes and make the customers happy. This is done through either delivery of product or services rendered. Technology helps to improve communication through email and chat internally. Externally it provides a good website that people will enjoy visiting. Information can be accessed much more quickly which increases the competitive edge.
Why Use IS?
Information systems helps improve relations between customers and the business, or business to business relationships. The question is, which type of system does your company need? A lot of questions to consider before making the leap to upgrading
Define Information Systems
What exactly is an Information System (IS)? Let’s look at the definition here…an information systems focus on networks of hardware, software that people and organizations use daily to handle their data and information. These components are used in order to gather, analyze, store and disseminate information. The information in turn helps to support strategic decisions being made for the agency.
As for a competitive advantage, it can go either way. It seems that there’s an ongoing debate as to how much of an advantage IS gives, if at all. But as an example, Walmart has used it to a great advantage. One key to success for them was implementing a brand new supply-chain management system. It’s unique for them only to where suppliers can go in and review how well their products are selling at Walmart, in any of their stores at any location. Suppliers can petition them if they feel products are being sold to quickly so inventory levels can be increased for their products. It’s pretty interesting how it all works…so Walmart can drive prices down and respond to the market more quickly due to this new management system.
The Main Goal
The main goal of IS is to be able to change data into information that can be used in strategic decision making. Databases are what is considered collections of related information. Examples of this are MySQL and Microsoft Access, where data is inputted and organized into records as one example. A database has to be created in order for an IS to be built that will work correctly. The question is, where can big data be collected, sorted out and put into reports?
Competitive advantage is when said company can sustain profits over average for the industry they’re in. Differentiation comes to play also. The key is to learn how to use information systems to build competitive advantage. This is where SISP comes to play. The information system has to try to do one or more of the following:
- Deliver products or services at lower cost
- Deliver products/services differentiated from others
- Assist companies to focus on specific markets
- Allows for innovation
Examples of IS falling into this category are:
- Electric Data Interchange – Integrate supply chain electronically
- Collaborative Systems – Google Drive, Microsoft SharePoint, or Cisco WebEx
- Decision Support Systems – Helps companies to make strategic decisions
It has been shown through studies that information technology (IT) has assisted in increasing differences between companies instead of reducing them. Technology has sped up and heightened the amounts of differences. It also helps with increasing good management abilities in organizations. Through figuring out the right types of innovations to include with the upgrades, it can greatly increase competitive advantage in their industry.
Questions to Answer
What the company in question has to answer before upgrading anything though is, what exactly has to be changed in order to allow for competitive advantages? Is it the hardware that needs to be upgraded? CPU’s hard drives, devices? Or does the software have to be upgraded? Which new programs need to be implemented and to which department? What languages do the programs need to be written in? What kind of databases will be used? Are they going to create all new programs tailored specifically for them and maybe suppliers like Walmart did? These are just some of the questions that have to be answered before they begin anything, or there will be a mess of confusion at some point.