Strategic Use of IS/IT for Innovation: Success & Impact Analysis

This report critically discusses how organizations apply the strategic use of Information Systems and Information Technology (IS/IT) to achieve IS/IT-enabled innovation. It presents four case studies illustrating the use of IS/IT for innovation, highlighting success factors and lessons learned. The report analyzes the impact of internal factors (organizational, individual, and management) and external factors (market, industry, social, economic, technological, and political/policy) on the success or failure of IS/IT-enabled innovation. It concludes with recommendations and guidelines for organizations seeking to succeed in their IS/IT innovation efforts, drawing upon relevant knowledge and at least ten references published after January 2012.

Managing Information system
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Table of Contents
Introduction...........................................................................................................................................2
Example and discussion.....................................................................................................................2
Case study 1......................................................................................................................................2
Success factors of using internet of things.....................................................................................3
Impact of this on internal as well as external factors.....................................................................3
Case study 2......................................................................................................................................4
Success factors of using robotics and big data...............................................................................4
Impact of this on internal as well as external factors.....................................................................5
Case study 3......................................................................................................................................5
Success factors of using enterprise planning system......................................................................6
Impact of this on internal as well as external factors.....................................................................6
Case study 4......................................................................................................................................7
Success factors of using virtual reality...........................................................................................8
Impact of this on internal as well as external factors.....................................................................8
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10

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Introduction
Managing information system helps for making decisions by visualizing and controlling all
the operations of an organisation. It is beneficial as it improves the overall value and profit
levels of an organisation. The innovation of IT is used so that operations and functions are
made automatic by reducing manual work. IT/IS technological system offer wide benefits to
business by improving efficiency and adding flexibility at the work place. Innovations are
done by taking feedback from customers and designing actions in a way that requirements are
met. In this report, various IT innovations are discussed that will help in making the
operations automatic. The impact of such innovation on businesses is discussed along with
impact on internal as well as external factor. Some of the suggestions are also listed below of
using IT/IS innovation.
Example and discussion
Case study 1
Using internet of things
Internet of things is used by many organisations it helps in connecting all the services at high
level of security. Internet of thing has a huge impact on businesses as they drive the business
efficiently by connecting all the processes and data from different location. IoT increases the
business opportunity by increasing the return of investment. It also reduces the operational
cost and improves the utilization of resource (Giaffreda, et.al, 2015). Internet of things
improves decision making and also understands customer by improving and optimizing the
operations. Internet of things enables in identifying the customer demand and then makes the
operations automatic. They also help in measuring the productivity in the real time. Internet

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of thing is the latest innovation for performing digital activities on single click. It is beneficial
as it makes the operations automatic by removing the manual efforts.
Success factors of using internet of things
Intent of thing offers an easy platform for managing the environment with safety and
comfort. They help in reporting the errors in real time and my making the task automatic. It
improves the profit margin by offering higher retention and also offers better decision making
capabilities (Zanella, Bui, Castellani, Vangelista and Zorzi, 2014). The decision is taken in
a way that profit is optimized. It reduces the total expense and improves the efficiency of
operations. Internet of things connects the physical object and makes all the machines
communicate easily. The other most important advantage of internet of thing is monitoring
which in turn improves the safety. It saves time and money and also automates the operations
for better monitoring (Zanella, Bui, Castellani, Vangelista and Zorzi, 2014). Internet of
thing has helped in connecting all the devices over a globe. It has offered various features as
compared to other traditional ways. They link the devices virtually by providing proper
privacy control. It is a platform where the entire device with dissimilar hardware’s are
connected. The traditional network did not permit devices to change their state dynamically.
It allows multiple devices to be managed altogether effectively and also helps in handling of
information. If considering the case of security, Iot is better than traditional methods as it
follows proper encryption techniques as well as proper access control.
Impact of this on internal as well as external factors
Innovation impact the internal as well as external factor of an organisation. Internet of things
has added many benefits as data and processes can be accessed easily. It is helped an
organisation to share data and allow better user experience. IoT technology also develops
scope of improvement and innovation inventions. They also allow an organisation to work
remotely by improving the business functionality (Whitmore, Agarwal and Da, 2015)s. It

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offers the possibility of remote monitoring of assembly line and production system to
maximise operational efficiency, reliability and safety. It assures that no unauthorised
employer gets the right to access the sensitive data. It is also a cost effective method with
greater flexibility (Wortmann and Flüchter, 2015).
Case study 2
Using big data and intelligent robotics
The use of big data and robots has been used by many organisations from last decades.
Robots make use of artificial intelligence that supports in making the operations automatic
and reaching to wider audience. By the help of artificial intelligence many software’s are
designed that track all the operations automatically. This technological innovation helps in
reducing the overall waiting time of clients and offers a way through which customers can
connect easily (Chang, Tsai, Chen and Tsai, 2015). AI approaches add up flexibility and
improves the user experience. Big data helps business in collecting the data and analysing it
to improve the performance. It allow them to make use of cloud so that information or
services could be accessed from anywhere at any time. It can be stated that in the recent
years, the demand of big data and intelligent robotics has increased. The predications are
made by undertaking current observations or from past events. The predications are made by
using big data technology along with various tools that make use of big data concept. The
outcomes are approximately correct as it is generated by long term historical record and
observations (Chen, Mao and Liu, 2014). It is beneficial as it supports in make judgements in
the uncertain conditions.

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Success factors of using robotics and big data
These technological factors reduce the overall labour cost and high level service. Robotics is
designed using artificial intelligence that saves the overall time. They offer personalised
services and interact with the customers to perform basic activities (Gandomi and Haider,
2015). Big data is used to improve the revenue and profit margins of an organisation (Chen,
Mao and Liu, 2014). They collect and analyse all the current and past data and then make the
decisions accordingly. Big data collects the information from users and then analyse it by
finding the interest and offering them opportunities (Wamba, Akter, Edwards, Chopin and
Gnanzou, 2015).
Impact of this on internal as well as external factors
IT innovation has gained huge popularity in this recent time. This is due to the fact that young
generation believe in making the activities automatic by the means of intelligent robots. They
create software’s that analyses the requirements of customers (Chen and Zhang, 2014). These
innovations act as a tool that is used for achieving competitiveness and business success.
Various big data tools and technologies can be used to explore internal as well as external
conditions. The data should be sufficient enough so that observation could be made
efficiently (Wamba, Akter, Edwards, Chopin and Gnanzou, 2015).
Case study 3
Use of enterprise planning system
Enterprise planning system is a new way a planning the process in an organisation. This
improves the work flow of processes and creates a user friendly experience. They remove all
the redundant data by optimizing the result. This system offers transparency as the work
place and also eliminates the manual work by making all the operations automatic. The
innovation of enterprise planning system is with the motive of improving the overall

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performance (Merchant, Goetz, Cifuentes, Keeney-Kennicutt and Davis, 2014). By
innovation enterprise planning software in an organisation boosts up the overall security.
Also eliminates redundant processes by completing the task through automation. It supports
in beating the competitors by centralizing the data and offering faster customer service
(Chang, Kuo, Wu and Tzeng, 2015). It saves the time and increases the level of productivity
by adapting to the changes by offering faster access.
Success factors of using enterprise planning system
Enterprise planning system uses organisational information to maximize the productivity and
create a diversified tool so that automation at the work place takes place. The success factors
of implementing ERP system make the quality information available. It reduces the costs and
improves the process of making decisions. The management benefits are also gained as
information is centralised location (Merchant, Goetz, Cifuentes, Keeney-Kennicutt and
Davis, 2014). The internal communication between different departments is made possible by
this system; this it resolves the chances of conflicts. On the other hand, it also reduces the
maintenance cost by creating flexible processes (Chang, Kuo, Wu and Tzeng, 2015). IS/IT
has the potential to improve the competitive performance by analysing their demand and by
offering quality service.
Impact of this on internal as well as external factors
It has impacted internally as well as externally by integrating all the functions in an
organisation. It reduces the chances of error by removing the manual work and making the
task automatic. It offers valuable data analysis solutions so that customers can communicate
easily. Enterprise planning system helps in achieving long term goal by innovating new ideas.
The task is completed automatically by removing the efforts of manual labour. Enterprise
planning system has impacted an organisation by replacing the out dated software with ERP
software (Ptak and Schragenheim, 2016). They also replace accounting as well as other

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system. It improves the accuracy of financial data and human resource department is
managed. The major goal of using enterprise planning system is to improve the data flow
across the organisation. The two major success factor of using enterprise planning system is
variety and flexibility (Shen, Chen and Wang, 2016). From internal and external integration
ERP system reduces cost and adds up flexibility.
Case study 4
Use of Virtual reality
Virtual reality is the new innovation that is a computer generated experience take place in an
organisation. It helps in getting virtual feedback from the customers and helps in generating
realistic decisions. It is good for security as words on digital and automatic sensor so that
secure results are obtained (Marr, 2017). It is beneficial for organisation as it evaluates al the
process and products before use so that bugs can easily be found. Virtual reality is
advancement in technology which improves the overall efficiency. It also supports the data
analysis and forecasting team so that the trend adopted by competitors is found. Virtual
reality is beneficial as it allows the business to conduct meetings from different geographical
area, thus it can be said that it offers a low cost solution for communication between
employees at remote location (Lorenz, Busch, Rentzos, Tscheligi, Klimant and Fröhlich,
2015). It is observed that virtual reality is widely used in business for training and handling
different situations. It allows employees to interact with each other in a multi-dimensional
environment (Marr, 2017). It also offers retail experience that tracking all the processes and
enabling ways to explore consumer experience. Virtual reality allows building opportunities
for feedback and alteration. It has become easy to train employees now and wider the range
of business skills (Lorenz, Busch, Rentzos, Tscheligi, Klimant and Fröhlich, 2015). Virtual
reality directly impact on the customer experience that helps in understanding the clients and
merge the processes with artificial intelligence and big data. Thus, it can be said that virtual

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reality is an important step for discovering better business operations by finding the potential
errors.
Success factors of using virtual reality
The reason why virtual reality has become successful is the fact of exploring the environment
by gaining opportunity and engaging users. Virtual reality acts as an interaction between the
assets and users. It has helped in creating brand activation by making it visible to many users.
Virtual Reality offers new opportunities to marketers (Lorenz, Busch, Rentzos, Tscheligi,
Klimant and Fröhlich, 2015). The primary role of promotion is to engrave a product or
service to the user so that behaviour gets influenced. The experience of virtual reality is use
to introduce products to new audience so that profit margins could be increased (Treleaven,
et. al, 2015). It impacts many processes in the business by enhancing the performance.
Impact of this on internal as well as external factors
Virtual reality will impact the business internally as well as externally in many ways. It
reduces the gap of communication by making the link efficient and also reduces manual
efforts by technological innovation (Martono, et. al, 2016). It assures that meetings can be
made successful by allowing different team members to communicate. The other important
field of virtual reality is advertising and promotion through which benefit of the company is
improved (Treleaven, et. al, 2015). It also has huge effect on the future of retail, as it allows
businesses to understand consumer behaviours, trends, and product consumption patterns in
different situations. The future of virtual reality is to complete the operation at affordable
price.

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Conclusion
It can be concluded that managing information system supports in making optimized
decisions. In the report the various innovation related to IS/IT are listed. The success factors
of those innovations and the impact has been briefly discussed. The first innovation that was
discussed is internet of things that drives the business efficiently by connecting all the data
and improving the utilization of resources. The other innovation is use of bid data and
robotics that analyses the data and reaching to wider audience. These approaches add up
flexibility and improve the user experience. Enterprise planning system is offers transparency
by eliminating the manual work and making the operations automatic. It saves the overall
time and also enhances the productivity by innovating strategies so that changes could be
adapted. Virtual reality is other beneficial innovation as it allows the business to conduct
meetings from different geographical area, thus it can be said that it offers a low cost solution
for communication between employees at remote location. It is observed that virtual reality is
widely used in business for training and handling different situations.

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References
Marr, D. (2017). The Amazing Ways Companies Use Virtual Reality For Business Success.
Available from https://www.forbes.com/sites/bernardmarr/2017/07/31/the-amazing-ways-
companies-use-virtual-reality-for-business-success/#96d57ab1bae9 Accessed on 01-12-2018.
Lorenz, M., Busch, M., Rentzos, L., Tscheligi, M., Klimant, P. and Fröhlich, P., 2015,
March. I'm There! The influence of virtual reality and mixed reality environments combined
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Treleaven, J., Battershill, J., Cole, D., Fadelli, C., Freestone, S., Lang, K. and Sarig-Bahat,
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Martono, N.P., Yamaguchi, T., Maeta, T., Fujino, H., Kubota, Y., Ohwada, H. and
Giovanneti, T., 2016. Clustering finger motion data from virtual reality-based training to
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Merchant, Z., Goetz, E.T., Cifuentes, L., Keeney-Kennicutt, W. and Davis, T.J., 2014.
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Chang, B., Kuo, C., Wu, C.H. and Tzeng, G.H., 2015. Using fuzzy analytic network process
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Ptak, C.A. and Schragenheim, E., 2016. ERP: tools, techniques, and applications for
integrating the supply chain. Crc Press
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