Q. Explain Functional Roles of Information System?

Functional Roles of Information System

1 Lower Costs -

a) Use IT to significantly reduce the cost of business processes.

b) Use IT to lesser the costs of customers or suppliers.

2 Differentiate

a) Develop new IT features to distinguish products and services.

b) Use IT characteristics to reduce the differentiation advantages of competitors.

c) Use IT characteristics to focus products and services at selected market.

3. Innovate

a) Create new products as well as services that include IT components.

b) Make radical transformation to business processes with IT.

c) Develop exclusive new markets with the help of IT.

4. Promote growth

a) Use IT to control regional and global business expansion.

b) Use IT to diversity as well as integrate into other products and services

5. Develop alliances

a) Use IT to create effective organizations of business partners.

b) Develop inter-enterprise information system correlated by the Internet and Entrants that support strategic business relationship with suppliers, customers, sub contractors and others.

6. Improve quality and efficiency

a) Use IT to dramatically get better the quality of products and services.

b) Use IT to make constant improvements to the efficiency of business processes.

c) Use IT to substantially shorten the time essential to produce, develop and deliver products and services.

7. Other strategies

a) Utilize inter-organizational information systems to create switching costs that locks in customers and suppliers.

b) Utilize investment in IT to build barriers to entry against industry outsiders.

c) Utilize IT components to make substitution of competing products unattractive.

d) Utilize IT to help share, create and manage business knowledge.