Information system (IS) is a set of interrelated apparatus that function together in the process of gathering, processing, storing, and dissemination of information to help in decision making, harmonization, controlling, analysis and visualization in an organization. In this case, IS will assist managers in Saudi Electricity Company (SEC) in supporting decision making, coordination and controlling data. The company’s management team is also provided with an easy platform for analyzing problems, envision intricate topics and come up with new and improved products and services.
Reasons why information systems is important for Saudi Electricity Company
- Operational excellence and merit
- Improved new services, products and business models
- Enhanced Customer and Supplier relationship
- Enhanced decision making
- Increased Competitive advantage
- Increased business Persistence/survival
Information system is the solid foundation for operating any business entity in the current world. In Saudi Electronic Company, operations without use of information systems technology are inconvincible since they play a central role in information systems. Information system in SEC is a basic commodity and when combined with other related and complementary factors in the organization through management, can lead to the production of new and improved products and services. This will also alter the manner in which operations are carried out providing the firm with a calculated advantage.
Business process is the approach in which SEC coordinates and organizes function activities and information for the production of its product and services. In the production locale, business process includes quality verification and generating bills of the products and services. In the sales marketing area business process involves getting SEO services to the clients and handling all financial issues in the financial and accounting sector.
Business process in SEC is important as it provides for an organized approach to keep the organization continuously engaged in an advancement process of exploration thereby improving the organizations products and services towards excellence. SEC business process is also important for information exchange efficiency in its functional areas, business units and clients.
The internet and other information systems technologies have improved business process in an automated way which has reduced costs, increase productivity and enhanced quality services by SEC Company. The organization managers always seek to implement new technology in the process of service delivery which has made organizations undertakings successful. Information system and information Communication and technology have enabled the organization to sell its information services as a product (Christoph 244). Information gathered by these technologies by various systems is crucial in meeting the objectives of SEC at a lower cost, increased quality and enhanced production (Allen 54).
The internet as known presently is the world’s largely utilized network. It refers to a global network which applies universal standards to link people with different networks with host computers around the globe both in public and private settings. The organization applies internet use in exchange of information and performing business transactions with their clients and all other stakeholders. This represents the primary technology for the organization in which improved services and products are established and built. SEC use of the internet is a necessity and a huge boost in the competitive gain.
Competitive strategies enabled by information systems
- Low cost Leadership: This involves the use of information systems to achieve the lowest operational costs in an organization and providing lower prices. Information for instance can link customers directly to the organization in the supply chain management thereby reducing distribution costs.
- Product and Service differentiation: Information systems enhance the production of new products and services for customer’s convenience.
- Focus on market niche: Information systems enable organization to give full attention to their target market thereby increasing competitive advantage through production and analysis of data.
- Strengthen customer and supplier relationship: There is a direct link between organizations and customers through information systems.
IT infrastructure are the components that are used in an IT enabled organization or environment. The components are used in the operations of an organization. The infrastructure apparatus are:
- Hardware: These are computers, servers, centers, switches and routers among others.
- Software: They include enterprise resource planning, customer relationship management, productivity application and others.
- Network: This involves network enablement, internet connection and security.
- Meat ware: These represents human users for instance network administrators, developers and designers.
Management challenges of Information technology infrastructure
- Enhancing and protecting organizational value: This is the alignment and integration of IT which expose the organization to security and non-privacy.
- Cyber security: Managing and reinforcing security and privacy of organizations has become another challenge for organizations system and information.
- Data classification: Information systems and technologies pose a challenge in form of efficiently organizing and managing the huge amounts of data within a firm.
- IT asset and data management: This challenge concerns data improvement and information governance by the growing use of mobile devices.
Data hierarchy means systematic data organization in an order sequence including fields, records, and files among others (Laudon n.p). They are:
- BIT: It is a short form for binary digit in two possible states 0 or 1.
- BYTE: This is the character of information in a computer system using several bits in a specified combination called bit patterns.
- DATA FIELD: This is one or more bytes with data about the attribute of an entity in information system like the basic pay of an employee.
- DATA RECORD: It’s a combination of field of a specific entity like payroll record.
Features of network infrastructure
- Network interface card: This is a computer hardware element which inks a computer to a computer network.
- Network operating system: This server run software that makes allows the server to manage data, users, groups and other networking functions.
- Hubs: These are devices which link network elements sending information to all connected devices.
- Switch: It is a filter and forward information to a given terminus on the network.
In SEC, there are many small area network linked to other area networks and firmware corporate networks. Examples of the infrastructure are internet service provider and telephone services. The internet is also important in creation of customer contact that keeps them abreast of any new development on time. Customers’ needs are attendee to at any time using the internet. Through the internet, the organization business network is expanded through online connection with the entire stakeholder thereby staying updated with all necessary information for growth and expansion. The company access to information is also enhanced by the internet.
Internet connection is important in the organization’s e-commerce. This is because of the enhanced electronic exchange of information with their electricity suppliers through creating a communication platform. This is important as it addresses several main issues regarding the organization like production plan, specification of components and supply timings. Power suppliers then use then use internet based system to respond adequately to the requirements of SEC. This enhances crucial and large business-to-business communication processed over the internet at a very low cost.
Features of ecommerce in SEO
- It involves exchange of information digitalized between all the stakeholders in the organization.
- It should be technological based. These are technological based transactions using internet browser in the World Wide Web.
- Ecommerce should be technological mediated. This refers to the shift from the common technological based transactions to technological mediated relationships (Schneider n.p).
- It should include Intra and Inter-organizational activities that uphold the aspect of exchange. This is should be evident in the provision of services in SEC market.
- Customization: This aspect allows technology in the firm to allow personalized messages to be sent to individuals and groups of people.
- Interactivity: This is where information quality is enhanced and costs reduced. Consumers are engaged in dialogue with the organization for his needs to be addressed.
- Richness: This concentrates on the content of the message in e-commerce communication which should be well put to be understood by the intended receive(s).
- Work Cited
Allen, Tim. “Improve your business processes for ERP efficiency: eight examples illustrate cost cutting, labor savings, and improved profitability that can result from self-funding improvements that automate processes using already available software”. Strategic Finance. 92.11 (May 2011) p54.
Christoph, Hienerth, Peter Keinz, and Christopher Lettl. “Exploring the Nature and Implementation Process of User-Centric Business Models.” Long Range Planning. 44.5-6 (October-December 2011) p344.
Laudon, K. C. &Traver, C. G. E-commerce: Business. Technology. Society. Third Edition. New York: Prentice Hall, Pearson.2007.
Laudon, Kenneth C. Management Information Systems. Upper Saddle River: Pearson. p. 226.2007.
Rayport, J.F., & Jaworski, B.J. Introduction to E-commerce. New York: McGraw-Hill.2002.
Schneider, G.P. Electronic Commerce: Sixth Annual Edition. Canada: Thomson Course Technology.2006