Role of Data Personalization in Business Information Systems

This report discusses the role of data personalization in business information systems, focusing on the characteristic and global significance of data personalization. It also explores the organizational opportunities and challenges due to data personalization and presents ways to build positive customer trust towards the brand. The report further addresses the value exchange for business and customers involved in data personalization and proposes strategies to work within current laws and regulations. Additionally, it explains the theory used for business information systems and how it was applied.

Business Information
Systems
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Characteristic and global significance of data personalization....................................................3
TASK 2............................................................................................................................................4
Presenting the organizational opportunities and challenges due to data personalization............4
TASK 3............................................................................................................................................6
a) Overview of business, app and BIS solution and performance objectives..............................6
b) Presenting the way to address value exchange for business and customer involved in data
personalization.............................................................................................................................6
c) Ways to build positive customer trust towards brand..............................................................7
d) Proposals to work within current laws and regulations...........................................................7
e) Business strategy and analysis of how proposals will contribute to it....................................8
TASK 4............................................................................................................................................8
Explain the theory used for BIS and how this theory was applied..............................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business information system (BIS) provides information to organizations that helps to
manage themselves efficiently and effectively either using computer or technology. Therefore,
with the help of such system company is able to make decision by analysing views of people
who are associated with enterprise. The present study is based upon DAVAC Ltd which is deal
in construction industry by offering range of construction related material, equipments. Along
with this company also offer services which includes building construction, renovation and
remodelling. The firm also use aspect of knowledge management system that assists to share
information within business to their customers.
With the help of present report, company analyse role of green computing in a firm by
examining characteristic and global significance of data personalization (DP). Further, it also
evaluates opportunities and challenges which might be faced by company due to DP. Moreover,
the report will also address the data personalization issues relevant to app and BIS solution along
with the chosen strategy as well.
TASK 1
Characteristic and global significance of data personalization
Data driven personalization can be understood as aspect when there is accurate focus
developed on delivery content to people at right moment, by delivering value to someone at the
right moment. Delivering better experience to customers is top goal for data driven
personalization strategy to achieve higher accuracy in performance benchmarks and increasing
transparency among information. Data personalization on global levels also gives wide scale
professional strategy growth towards increasing conversation rates, higher scale functional
efficacy to keep specific goals attained within time periods. Global significance attached to data
personalisation can be analysed with features where customer data is captured in real time and
dynamic aspects, calculating informative intent on varied scenarios.
Content being delivered across all devices, screens and channels need to ben driven with
high focus on data personalization aspect where there are varied scenarios attached for keeping
varied competent innovation. With high scale expansion among functional parameters data
personalization has been found to be one of the most essential parameters where globally
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companies are working towards internationalization. Data personalisation has been also
identified as one of the most commercial strength in fast digital business world, where there are
varied scope to keep on productive versatility. DAVAC aims to keep data secure by using the
best personalization techniques, wide range of expertise which gives on larger scope to bring on
competitive scale market reach. Globally data driven personalization brings on varied functional
pace to keep market retained actively on best data management goals. This can be also analysed
as main significance which develops shareholders commitment and brand quality growth in
untapped horizons, enhance diverse scope actively. Data personalization brings on varied
developed efficacy on wider expanded parameters, where personalization enables brand value to
be boosted optimistically (McFall, Meyers and Hoyweghen, 2020).
TASK 2
Presenting the organizational opportunities and challenges due to data personalization
Data personalization is considered key aspect to increase the overall performance of the
company. In each country, every marketer uses this area in order to enhance the competition.
Therefore, it can be stated that data personalisation might provide different opportunities and
challenges to DAVAC Ltd which are as mentioned below:
Opportunities
Increase conversions: Using the online application, DAVAC Ltd increases company's
conversion rates and this also enhanced the overall revenue of a firm as well. If conversion rate
of the company will increases then the chances of sales will also raise and this cause positive
impact upon the financial performance (Major benefits of using personalization, 2020).
Therefore, it can be stated that increase in conversion can be a good opportunity for quoted firm
and this in turn manage the cash flow within a business.
Improves customer retention: Through data personalization, company encouraging
repeat purchase and this in turn increase retention as well. As cited firm is deal in construction
industry where company offer range of products which includes construction materials,
equipments etc. Along with this it also offers service of renovation and by implementing online
application will help customers to easily make orders and this increase the retention rate as well.
Work as a marketing tool: Through data personalization, company is able to provide
specific details with filter options (Spiliotopoulos, Margaris and Vassilakis, 2020). So, by
providing personalized experience and also being predictive rather than reactive has also created
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better opportunity to increase the choices for customers. This in turn also makes a good
experience for customers and through effective marketing, company is also able to attract range
of customers towards it so that it causes positive impact upon sales as well.
Challenges
Organisational Silos: It is one of the most common problem when company uses data
personalization strategy. Such that when company grows, team and management work with
diverse information, analytics, CRM and storage that helps to meet the specific needs. Therefore,
data is fragmented and due to lack of standards, it is more difficult for the company to
communicate. As customer do not care about internal structure or data silos, all they want is
related to their product and company have to meet the demand as well (6 personalization
challenges explained, 2021). Therefore, in this situation, company is faces issue with regard to
catch up with personalization trend and make technological silos as well.
Technical challenges: Most of the companies are focused upon the desired
personalization outcomes rather than technical challenges. Therefore, organization need to have
a clear vision of their goals and strategy that helps to select proper marketing technology. With
the help of such strategy, DAVAC Ltd improve internal collaboration and also reach wide range
of customers as well (Assami, Daoudi and Ajhoun, 2018). Also, quoted firm is deal online by
designing an application which helps to enhance the collaboration and engage customers towards
it. Thus, company have to consider the technical challenges so that challenges can be minimized.
Regulation and restrictions: It is another challenges faced by DAVAC Ltd because new
regulation of data privacy might affect the company's performance and it is also essential for the
company to maintain confidentiality of all sensitive data from third party, otherwise it will cause
negative impact upon the brand image of a firm (Shakhovska and et.al., 2019) . Also,
government keep changing regulation and it is mandatory for companies to comply with such
laws in order to smooth functioning of a business. Similarly, in the context of quoted firm, no
private should collect without consent or using dishonest practices. As it leads to cause opposite
impact upon brand image.
Therefore, it is analysed that due to data personalization, DAVAC Ltd faces different
opportunities and challenges that there is a need to overcome such issues in order to provide
better customer experience.
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TASK 3
a) Overview of business, app and BIS solution and performance objectives
DAVAC Ltd is deal within construction industry and offer both product as well as
services to their customers at affordable rates. It has its own store and sometimes it also sells
product via third party seller. Apart from this company also uses seasonal discount strategy with
an aim to attract customers. The application for the company is designed by such a way that
helps to provide complete information to their customers.
For Business information System, company use the key aspect of knowledge
management system which in turn assist company to share different information to their
customers so that they also come to know about such offerings.
The performance objectives of the company is to keep provide training to their employees in
order to increase their performance and as per the balance score card, the target of the firm is to
keep 80% of the employees up to date with regard to the present data.
b) Presenting the way to address value exchange for business and customer involved in data
personalization
DAVAC Ltd is deal within construction industry and that is why, it uses data
personalization in which it offers services by analysing the need of customers and offer the same
in order to encourage people to meet the defined aim. Also, through rewards system and loyalty
programs company is able to meet the defined aim (Andrews, 2019). In addition to this, with
such things, company is encouraging their key customers to repeat their business and this in turn
helps to engage with a firm for a longer term. In addition to this, it is also analysed that by
improving customer experience, users are able to interact with customers and this in turn raise
sales performance as well.
Apart from this, with the help of data personalization, quoted firm is able to deliver the
brand message to their customers so that they easily aware with new offer with regard to service
or products. This is examined that to address the value exchange for business, it is necessary to
offer the product at low cost by complying with cost leadership and this in turn assist to
successfully sustain the brand image at global level as well (Dumitrica and Bakardjieva, 2018).
Along with this, company also gain competitive advantage over other firms and stay ahead in
competition as well.
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c) Ways to build positive customer trust towards brand
It is necessary to gain trust of customers so that they are retained for long term. It is
analyzed that company offer the best construction equipment products and services to their
customer by using online application. For that, it is necessary to build the customer trust towards
a brand, so by using below mentioned ways, company is able to develop positive customer
sentiments:
Feedback and collect reviews from customers: To become a trustworthy brand, it is
necessary for the company to take reviews about the offerings in order to analyze the loopholes
which can be minimized. Also, taking review reflect that company consider their employees as
an essential key pillar of a firm and that is why, it assists to engage them as well (Rekettye and
Pranjić, 2020). Similarly, DAVAC Ltd is also designing an application in which customer also
share their experience that assists firm to make further decisions.
Publish customer reviews and testimonials: With the help of such strategy, company is
able to build the trust among customers. Organizations must publish the reviews of their
customers in their website or applications and also answer their questions as well. It is so
because sharing a response into site will helps business to examine their strength and customer
base. This in turn also helps to meet the defined aim of a firm and build positive trust as well.
Rewards or loyalty programs: Another way that helps business to earn customer loyalty
because when company offer rewards customer assist business to repeat purchase. Also instead
of switching towards another brand, customer prefer to purchase products for that company only.
This in turn helps to maximize the sales along with customer engagement (Rainer, Prince and
Watson 2017). Therefore, it is necessary for the business like DAVAC Ltd to increase the
performance by identify the customers needs.
d) Proposals to work within current laws and regulations
There are certain laws and regulations which are being followed by DAVAC Ltd in their
app. The laws will enable in maintaining privacy of data and info. Also, it is essential to ensure
that business does adhere laws and regulations (Berkemeier, Zobel and Thomas 2019). The
privacy policy ensure that data and info privacy is maintained. Besides, DAVAC Ltd need to
follow national and international policy as well. However, in app policies followed are :
GDPR- They are known as general data protection regulation. It states that business is required
to protect personal data and also privacy of EU citizens. Furthermore, it sets certain standards for
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consumer rights regarding use of data and info. Similarly, DAVAC Ltd need to protect
individual IP address, personal info. name, address, etc. In addition, GDPR regulate and govern
entire data security issues. It also ensure that company does not breach security of data and
follow all protocols. Furthermore, GDPR regulate use of personal data outside EU as well. There
are some system protocols and standards that is set by GDPR which need to be adhered by
DAVAC Ltd.
Privacy policies- there are several privacy policies as well which is to be followed by DAVAC
Ltd in App design. In this various acts are adhered such as data protection act which consists of
principles that ensure that transparency is maintained in info, the data is stored lawfully. This
allows in making protecting of info in effective way (Dumas, La Rosa and Reijers 2018).
e) Business strategy and analysis of how proposals will contribute to it
There are different types of strategies which is available and is used by business. The use
of strategy depends on business requirement and market. Also, it is necessary to select a
particular strategy so that it provide direction and goals are attained. Similarly, DAVAC Ltd has
also used a strategy which is as follows:
Porter generic strategy- In this there are 3 types of strategies which is available that is cost
leadership, focus and differentiation. The main purpose is to gain competitive advantage in
market. Thus, it is analyzed that DAVAC Ltd has used cost leadership strategy. It will be highly
beneficial in case of increasing its customer base by being the lowest cost producer within the
industry. The economic impact will be improved by offering services at low cost and
maintaining balance in competition (Haki, Blaschke and Winter 2019). The social impact is
improved as people will get products at low cost by which their lifestyle enhances and
environmental impact is less use of paper in info processing. In this way low cost leadership will
contribute in DAVAC Ltd success in market.
TASK 4
Explain the theory used for BIS and how this theory was applied.
In order to develop BIS there was certain theories which can be used. The use of theory
helps in giving framework that why BIS is needed and how it will help in attaining goals. For
implementing BIS there is need to apply theory in it. The solution must be compatible to attain
goals. This is useful in managing people, operation, strategy, etc. Likewise, in DAVAC Ltd as
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well for BIS solution the porter value chain theory was used. In this not all aspect of model is
covered but it include :
Firm Infrastructure- It is a financial element to develop the firm properly, the company needs
proper finances and they need to get bank loans and gather investors to develop proper
infrastructure which includes a proper work place, a diverse and safe work culture and work
environment for the employees (Jahantigh, Habibi and Sarafrazi 2019). Thus, developing firm
infrastructure will form a part of the business level strategy. This will help in storing info is
proper way and creating a centralized infrastructure where all process is done in similar way.
This will transform overall culture and provide a new and positive culture to staff to work.
Human Resource Management- This needs to be developed, as the company needs to ensure
that they take steps to create a workplace environment where the employees are happy and
satisfied. This is part of the tangible resources for the company and is a strategic level idea. The
company needs to develop reward systems to keep the employees satisfied and retain them for
long term. Thus, in BIS staff play vital role as skilled and qualified staff will led to boost
efficiency of operations. The info is shared quickly with others and it will enhance productivity
of employees. The complex task can be done in easier way and this led to improving
communication process (Kamariotou and Kitsios 2019). Hence, through HRM value of staff is
generated in DAVAC Ltd.
Technological Management- This is a part of the intangible asset for the company. This also
forms part of the operational level strategy. The company needs to get in touch with suppliers in
order to ensure sustainable technological development is maintained within company. The
installing and use of technology result in increasing efficiency of operations. There can be use of
various IS in DAVAC Ltd such as MIS, DSS, TPS, etc. Hence, it will highly support in taking
effective decisions. The technological development increases overall performance of firm.
Procurement - This involves suppliers who will supply the company with raw materials such as
cement, bricks, iron rode, etc. and other manufacturing materials. The company needs to ensure
the quality of these products and they form part of the tangible resources. This is also an
operational level strategy. For ensuring smooth procurement of raw materials use of BIS will
provide require data and info by which supplier is contacted and order is placed.
Thus, this value chain model was applied in BIS as it focus on 4 aspect. This will
integrate all of them and bring change in way of processing info. Alongside, all activities in this
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will be managed in effective way (Pearlson, Saunders and Galletta 2019). The use of
technology makes it easy in documentation and other process. Besides, resources are utilised in
efficient way which makes easy to manage operations and people.
CONCLUSION
Hereby, it can be summarised that BIS provides information to organizations that helps to
manage task in effective way. The opportunities for company is increase conversions, improve
customer retention, etc. and challenges are technical error, rules and regulations, etc. The data
personalisation create value for customers. Moreover, current laws include GDPR policies and
regulations. DAVAC Ltd has used business strategy to cost leadership to increase customer base
and becoming lowest cost producer in industry. Furthermore, theory used is porter value chain
model in which only firm Infrastructure, HRM, technological management and procurement is
focused and this theory is applied in BIS.
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<https://www.progress.com/blogs/6-personalization-challenges-explained>.
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