Have Information Systems Affected Competition Essay

Have Information Systems Affected Competition - Essay Example Helped by constant development and changes, information systems currently control the key operations in the business world from production, sales, processing and even marketing. However, it is important that any business intending to employ the use of this technology understand its implications in full, especially, its influence to output and resultant profits. When the issues are fully understood, organizations require tools to necessitate the implementation of the information systems technology. This should be in a manner that will enable them increase their strategy in competition within their market (Bogetoft & Olesen, 2000).   One way in which many organizations have viewed information systems over the years is through a pyramid that would show a certain hierarchy that is observed in the organizations. At the bottom are the systems involving transaction processing, systems used to manage information systems follows closely, above this are systems that support decision making a nd the highest ranked are the systems that are used to save executive information. This was the most rudimentary organization, yet the level of organization it brought to a company enabled it to grow and prosper than its competitors. In the recent contexts, there have been new technologies that have changed the basic framework to encompass the changes in the contemporary business environment. Some of the new improvements are enterprise systems, global information system (GIS), and enterprise planning using resource departments, data warehouses, global information systems (GIS) and the automation of offices (Neumann, 1994).   It is obvious that information systems have influenced the competition by companies over the past few years; this is seen from the fact that most managers have been forces to integrate the use of software technology in their offices, production and daily running of activities. This revolution has made the finance departments to be forced to locate funds to pur chase hardware used in managing information systems, training of these system’s personnel and encouraging capacity building through funding trainings and workshops. Some of the competitive advantages gained from the use of information systems are reduction in costs that are incurred when obtaining, transmitting and saving information within a firm and between different business groups (Armoni, 2000).   Information systems fall under the group of competitive systems. This is because it involves many services all of which have a contribution to how and when decisions will be made. In addition, information systems have the competitive advantage of enabling users to collect data from the primary resource center, and then analyze it on the spot using well defined pre-set programs. The systems of information will enable users to plan ahead of their competitors and know their intentions beforehand (Rainer & Cegielski, 2011).   In addition, fieldwork analysis will help the manage rs to know the changes that occur in the market, changes in customer requirements, how the structure of the industry has changed in such issues as social, physical, and the physical forces; this would be with the use of internet searches on the news sites. Furthermore, the continuous changes in technology within and outside the company’