HW1_Sp12_guideline0 - Spring 2012 Homework No. 1 Guideline...

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Spring 2012 Homework No. 1 Guideline This is a solution guide; in certain cases it may not show the complete details, and in certain cases there can be other answers which are also correct. (2) Answer and submit (via BB) your answers to the following questions: a) Read about types of information systems and about strategic information systems for organizations. (i) Explain briefly five methods by which IT can support the organization’s strategy. 1- Cost Leadership Strategy: IT can enable corporations to save on multiple costs, such as transport costs for products. If an IT system in a store can be linked to the point of sale terminal, it can record number of sales made and tally it with the number of products left to be sold. That would give inventory managers exact knowledge of when a new batch or stock of product is to be ordered, instead of calling for it despite having stocks. 2- Differentiation Strategy: IT can allow a company to distinguish itself from competitors and others in the market. For example, Vons Grocery Store delivers groceries at customer’s door step and people find it very convenient to place orders on the internet instead of taking the trouble to come to the store. Customers appreciate the additional facility. 3- Innovation Strategy: Adding existing features to the set of products and services a company offers can often be an effective strategy. For example, IT enables Sports Company’s like WILSON to display their product details and pricing online. Customers can view their desired product and its specification sitting at home. It saves them time and efforts, it also requires the company to hire less sales representatives. 4- Operational effectiveness Strategy: This improves the manner in which internal business processes are carried out and contribute to the overall efficiency in one manner or the other be it productivity or better quality. The simple transition of drafting in opposition to usage of CAD can be taken. If an architecture firm drafts its floor plans it consumes a lot of time and caters to less customers. Whereas if CAD is used, greater accuracy is enjoyed and simultaneously a greater market share is earned by serving more customers. 5- Customer Orientation Strategy: making the customers Happy. Quite a few companies have online surveys and customer feedback forms on their websites which allow customers to express themselves, be it opinions, suggestions or complaints regarding products or services. This greatly helps the company improve but also gives the customer a sense of importance. Needless to mention that it can only be done through use of IT. (ii) Illustrate some of these methods as applicable specifically for the case of an organization such as
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This note was uploaded on 02/22/2012 for the course IE 332 taught by Professor Staff during the Spring '08 term at Purdue.

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HW1_Sp12_guideline0 - Spring 2012 Homework No. 1 Guideline...

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