Information Systems in Business Management

Information Systems in Business Management

Question 1

Information technology is continuously presenting a challenge in the various companies, especially on the organization of the business processes as well as communication among the various customers, potential customers as well as the delivery of the organization services to the consumers. The decentralization of the companies with information technology, especially among the senior business managers, has been a critical strategy in the alignment of the business with the current trends due to the presumed advantages of the information systems knowledge, as detailed below.

The alignment of the business organization with the information system technology among the managers is essential in aiding the business to remain competitive in the market. This is because modern business operations are shifting to relying upon the data in the decision-making process irrespective of the business size and the industry on which the business is operating. The various managers are therefore being invoked to be on the lookout for the gathering, storage, organization as well as utilization of the information available in order to improve the organizational agility as well as effectiveness. The business on which the various managers are less literate on the information system knowledge may thereby be challenged in the data collection as well as data analysis for the decision making for the company. Besides, the manual systems are gradually being phased out by the automated systems; hence the managers must be competent to align with their competitors who are already embracing technology in their designs.

The alignment of the business managers with information systems knowledge is essential in aiding the business to focus on the organizational objectives. This is because the managers are able to involve the various managers harmoniously in the decision-making process hence aligning with the business to the laid down dreams and goals. Besides, the business in which the management team is competent is easy to be on board during the implementation as well as the training on new improvements in the latest technology which might be improvised as per the business goals since they already understand the general business operations within the already existing systems. The focus of the information systems knowledge to achieving data-driven business objectives, especially from the management, aids in ensuring that the whole organization believes in the effectiveness of the information technology and the strategic discourse in the organizational structuring.

The alignment of the business management with the information systems knowledge is essential in the maximization of the value from the limited resources for long-term success. The alignment of the business goals with the information systems knowledge, especially among the management, aids in utilizing the various resources effectively as through an effective information system, the managers can closely monitor the company resources. This hence aids in the tapping of any underutilized resources for the long-term success of the company.

The alignment of the organizational management with the information system is essential in the monetization of the business. This is because well-competent management is able to supervise the various structures of the organization effectively, such as the lateness and the handling of the office equipment. This is through the use of passwords. Every individual has been assigned a specific password through which they access the organization’s services depending on the duties assigned to every individual. Besides, competent information systems management is able to delegate duties diligently and manage them effectively while ensuring timely delivery of responsibilities.

Question 2

In daily business management, some concepts are key when adhered to. Porter’s value chain analysis was developed by Michael Porter and was designed to aid business management. As he described in his book, Michael Porter described the value chain as the mechanism of collecting the various activities by the particular company as a mechanism for the creation of value among the company’s customers. Hence, the value creation creates an added value, which then translates to the competitive advantage and the ultimate profit realization by the company in which it has been applied.

In the description of the value chain analysis by Michael Porter, he emphasized the competitive advantage for any company to be based on the company’s processes such as marketing and supporting activities. He further described the concept through a breakdown into five primary activities on which he illustrated four basics on which back up the primary activities. The five primary activities as per Porter’s postulation include; operations, outbound logistics, inbound logistics, marketing, and sales, as well as service and aim at creating value that exceeds the cost of operating of such activity hence generating a higher profit. The primary activities are backed up the secondary activities such as infrastructure, technological development, human resource management, and technological development.

Primary Activities

Inbound Logistics

This aspect includes all activities, including receiving, warehousing, and inventory control of the particular company’s raw materials. It also incorporates all activities associated with the supplier’s relationships, such as receiving and storing the various products from the manufacturer to resell the products, especially for the e-commerce companies.  


These include the various activities pertaining to the processing of the different raw materials into finished products or services. This particular operation will also comprise the addition of labels, branding, and packaging, with all these activities aiming at the addition of value to the company’s products and ultimately maximizing the profits realized by the company.

Outbound Logistics

As the illustration of the value chain analysis by porter, the outbound logistics includes the various activities that aim to final distribute the multiple products to the consumer, such as storage and distribution systems that are either internal or external to the business.

Marketing and Sales

Porter described this step to include the strategies that seek to enhance the visibility and target the various customers. These activities include the advertising, promotion, and pricing of the particular commodities and thus include all activities involved in the marketing and sales.  


The various activities within this illustration include those actions that seek to maintain the products and enhance the customer experience as a way of adding value, such as customer care service, repairs and replacements, and warranties for the company.

Mechanism of Identification of Business Information Needs

The value chain analysis can be used to identify the business information needs through its bridging nature between the primary and secondary functions of the business departments, units, and enterprises. The marketing of the company products helps identify the business needs in terms of branding and promotions.

The value chain analysis involves the scrutiny of the various factors that influence the company’s value. The scrutiny hence applies to the utilization of the right people and the motivation of the employees through the introduction of the systems that motivate them to work harder to fulfill the company goals as well as the contribution of their personal beliefs and propositions for the improvement in the company.

In the analysis of the value chain, one is likely to dig deeper into the company’s stakeholders and study the entire market as the company is evaluated on the competition level. This is essential as it aids in the provision of clarity and information on the perceived company as well as the definition of the company goals. This audit further aids in the analysis of the alignment of the company goals to the actual activities being undertaken in the company hence giving an insight into the company information and needs. This is because, through these, the company is able to identify the opportunities underutilized and various supporting activities in the supply chain management.

By designing the company products or services, one is likely to identify the business information and needs as it is easy to understand the various market niches within the business structure. This is because one needs to reconsider the probability of the end customer raising concern on the company outsourcing impacts delivery time as well as associated costs. Moreover, the negotiations involve the creation of a better experience as well opportunities that invoke the knowledge of the business information.


Faroukhi, A. Z., El Alaoui, I., Gahi, Y., & Amine, A. (2020). Significant data monetization throughout Big Data Value Chain: a comprehensive review. Journal of Big Data7(1), 1-22.

Koc, T., & Bozdag, E. (2017). Measuring the degree of novelty of innovation based on Porter’s value chain approach. European Journal of Operational Research257(2), 559-567.

Pal, R., & Altay, N. (2019). Identifying Key Success Factors for Social Enterprises Serving Base‐of‐Pyramid Markets through Analysis of Value Chain Complexities. Journal of Business Logistics40(2), 161-179.

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