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Further, it discusses the competitive forces using Porter’s model and the strategies to overcome these forces. In the end it explains the most commonly used Internet tools with relation to practical examples of their possible use as tools to gain a competitive advantage.
INFORMATION SYSTEMS
Information system is a set of interrelated components that work collectively to carry out input, processing, output, storage and control actions in order to convert data into information products that can be used to support forecasting, planning, control, coordination, decision making and operational activities in an organisation .
ROLE OF INFORMATION SYSTEMS IN BUSINESS
Information systems play a vital role in business world. Up until mid-1950’s firms managed to conduct their business activities manually, this involved paper work to communicate information. During the past 50 years the flow of information among the businesses has been computerised. In today’s world, an information system is laid as a foundation for conducting business activities. It has been difficult for many industries to exist in the competitive market without an extensive use of information …show more content…
In 1987, Wal-Mart’s satellite network was set up successfully. In 1988, Wal-Mart developed EDI system. In 1996, Wal-Mart made Retail link and EDI available through the internet and began to use internet as an application platform. In 2004, Wal-Mart began to use RFID (Radio Frequency identification) tags . We can see, Wal-Mart has been focusing on updating its information systems all the time. Next, I will introduce several important successful information systems used by Wal-Mart and analyse how they help Wal-Mart achieve its competitive …show more content…
It allows Wal-Mart and its suppliers to keep connected and communicate rapidly. Through retail link, the suppliers can get access to sales, shipment, orders, returns and other data on their products in Wal-Mart stores. Information sharing through Retail link significantly reduces negotiation time and lead time between Wal-Mart and its suppliers . This can reduce Wal-Mart’s cost of supply management. Around 3,800 suppliers now get daily sales data directly from Wal-Mart stores. And 1,500 have the same decision and analysis software that Wal-Mart's own buyers use to check how a product performs in various markets . The efficiency of goods supply reduces drive the cost out from tache of cooperation with suppliers, thus can help Wal-Mart achieve its completive advantage on pricing
INFORMATION SYSTEMS
Information system is a set of interrelated components that work collectively to carry out input, processing, output, storage and control actions in order to convert data into information products that can be used to support forecasting, planning, control, coordination, decision making and operational activities in an organisation .
ROLE OF INFORMATION SYSTEMS IN BUSINESS
Information systems play a vital role in business world. Up until mid-1950’s firms managed to conduct their business activities manually, this involved paper work to communicate information. During the past 50 years the flow of information among the businesses has been computerised. In today’s world, an information system is laid as a foundation for conducting business activities. It has been difficult for many industries to exist in the competitive market without an extensive use of information …show more content…
In 1987, Wal-Mart’s satellite network was set up successfully. In 1988, Wal-Mart developed EDI system. In 1996, Wal-Mart made Retail link and EDI available through the internet and began to use internet as an application platform. In 2004, Wal-Mart began to use RFID (Radio Frequency identification) tags . We can see, Wal-Mart has been focusing on updating its information systems all the time. Next, I will introduce several important successful information systems used by Wal-Mart and analyse how they help Wal-Mart achieve its competitive …show more content…
It allows Wal-Mart and its suppliers to keep connected and communicate rapidly. Through retail link, the suppliers can get access to sales, shipment, orders, returns and other data on their products in Wal-Mart stores. Information sharing through Retail link significantly reduces negotiation time and lead time between Wal-Mart and its suppliers . This can reduce Wal-Mart’s cost of supply management. Around 3,800 suppliers now get daily sales data directly from Wal-Mart stores. And 1,500 have the same decision and analysis software that Wal-Mart's own buyers use to check how a product performs in various markets . The efficiency of goods supply reduces drive the cost out from tache of cooperation with suppliers, thus can help Wal-Mart achieve its completive advantage on pricing