The Important Of The System

The important of the system

 

The emergence of a global economy, transformation of industrial economies, transformation of the business enterprise, and the emergence of digital firm make information systems essential in business today. Information system is a foundation for conducting business today. In many businesses, survival and the ability to achieve strategic business goals is difficult without extensive use of information technology.  Including KFC.There are six reasons or objectives why businesses use information system: 

1.Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival

Operational excellence.

Business improves the efficiency of their operations in order to achieve higher profitability. Information systems are important tools available to KFC managers for achieving higher levels of efficiency and productivity in business operations.

New products, services, and business models.

Information system is a major tool for KFC to create new products and services, and also an entirely new business models. A business model describes how a company produces, delivers, and sells a product or service to create wealth.

Customer/supplier intimacy.

When a business serves its customers well, the customers generally respond by returning and purchasing more. This raises revenue and profits. The more a business engages its suppliers, the better the suppliers can provide vital inputs.

Improved decision making.

Managers of KFC having the right information at the right time to make an informed decision. These raise outcomes less costs and raise customers. Information system made it possible for the managers to use real time data from the marketplace when making decision. Example: KFC provided the list of menu together with price, on the advertisement in the website so that the customer can find the details about the menu.

 Competitive advantage.

When firms achieve one or more of these business objectives chances are they have already achieved a competitive advantage. Doing things better than your competitors, charging less for superior products, and responding to customers and suppliers in real time all add up to higher sales, and higher profits. Example: Toyota Production System focuses on organizing work to eliminate waste, making continues improvements, TPS is based on what customers have actually ordered.

Day to day survival.

Business firms invest in information system and technology because they are necessities of doing business. These necessities are driven by industry level changes. Example: KFC introduced the web site for order the items from the company. Information technology has become more of a commodity, when coupled with complementary changes in organization and management, it can provide the foundation for new products, services, and ways of conducting business that
provide firms with a strategic advantage.