Smartville Report: Information Technology and Business Strategies

This report provides a comprehensive analysis of Smartville, a Mercedes-Benz smart car manufacturing plant in France. It begins by defining information technology management and its importance in business operations. The report identifies and explains three core information systems used by Smartville: Management Information System, Decision Support System, and Knowledge Work System, highlighting their specific functions and benefits. The main body also discusses Michael Porter's generic strategies, specifically cost leadership and differentiation, evaluating their suitability for Smartville and the impact of adopting each strategy. Finally, the report examines the Data Protection Act in relation to Smartville, emphasizing its core aspects and relevance to the business. The report concludes by summarizing the key findings and implications for Smartville's strategic decision-making and operational efficiency.

MANAGING INFORMATION
AND TECHNOLOGY

Table of Contents
INTRODUCTION......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Three Information systems that form the core of Smartville business...........................................3
Discuss strategies of Micheal Porter that is cost leadership and differentiation and make
judgment as to which is more suitable for Smartville.......................................................................7
Discuss the data protection act in relation to Smartville with the core aspect of this act..........11
CONCLUSION........................................................................................................................................13
REFERENCES..........................................................................................................................................15

INTRODUCTION
Information technology management defines as an essential term that reflects
discipline whereby all information technology resources of business enterprise are
organized and controlled according to their needs and priorities. The main aim of
conducting this project is to understand information technology within real business
operations (Holm, Drogendijk and ul Haq, 2020). This report is based on Smartville
that is situated on France, Hambach since 1994. This complex manufactures the smart
car for Mercedes Benz. There are around 2000 workers who are working for generating
profits in marketplace. Smartville is highly based on technology and fully use information
systems. This report explains relevant information system that effectively used by
Smartville business along with Michael porter strategy that helps in making appropriate
judgment for success of Smartville. At last it represents data protection along with its
core aspects that helps Smartville to safe and secures the information for leaking and
viral.
MAIN BODY
Three Information systems that form the core of Smartville business
Information system refers to an integration of collection, storage and processing
of data that is used to provide information, digital products and knowledge. To manage
the operations of business entity information system is highly useful in working in a
smooth manner. Information system is also useful for completing with rivals and
effectively communicates with customers and suppliers. For instance- organization use

information system to effectively reach the customers using information technology such
as online promotions (Goldkind and McNutt, 2019). There are several types of
information system such as transaction processing system, decision support system,
management information system, office automation system, knowledge work system
and many more. In terms of Smartville, the three relevant information systems along
with the purpose of each information system are presented below:
 Management information system- It refers to that information system which is
used by tactical manager to evaluate the company current status based on
performance. This information system is mainly used to make future inventory
orders that mean maximizing orders for well performing offerings and reducing
the orders of those products which are not performing well. The main factors that
are associated with management information system are sales management
system, human resource management system, budgeting system. This
information system is quite useful to simplify the day to day routines like
summarizes and comparison that enable manager to take decisions effectively
and efficiently. In terms of Smartville, this information system is quite useful and
represent as a core to smooth function of work related to production of smart
cars. In this management information system is used to monitor the flow of
products and material that are imported from the head of India within the
business firm (Hemker, 2020). In this outlet Mercedes Benz parts of car are
assembled to make a finished products and services where management
information system is quite useful. The general purpose of using this information
system within Smartville is to effectively and efficiently planning and controlling

the functions of management. It also provides the reports of workers
performance within a working environment so that resources are utilized
proficiently. It improves the accuracy and integrity within performance report that
helps in taking strategic decisions.
 Decision support system- It is a type of computer based information system
that also serves information to management level of business enterprise or
factory. This system processes the information to highly support decision making
process of the managers. This information system play a crucial role within
Smartville as it helps manager to analyses changing trends in production and
assembly of different parts to make finished products effectively and efficiently
that attracts the number of people attention (Aldakhil and et. al., 2019). This
system have high analytical power as compared to other information system as it
reflects wide range of decision models to summarize the huge data in the form of
table and charts. In terms of Smartville, this information system ios quite
impressive because it provides interactive environment to the manger so that the
clients who exports their products to Smartville for producing smart car are
working effectively and directly and changes also could be done effectively and
efficiently. It also supports the exchange of information within working area of
Smartville. The general purpose of using this information system within
Smartville is to present information in easy and understandable manner in front
of clients, partners and customers. This system generates information graphically
that is easily understood by everyone who is working within Smartville so that
they produce the smart car efficiently and effectively.

 Knowledge work system- It refers to an specialized information system that
represent a creation of knowledge, to make sure that this creation of technical
skill and knowledge are effectively and properly integrated into an organization or
business. In Smartville this information system is presented a form of core
business because without creating knowledge no business operation would done
proficiently and smoothly. The knowledge based information system is reflected
as user friendly interface that fulfill the business demand in terms of generating
useful information quickly and easily. In terms of Smartville, management team
highly focus on using virtual reality system for effectively visualizing, rendering
and simulation the knowledge that are quite impressive for attaining the target
based on production of Smart cars of Mercedes Benz. Smartville used this
information system with the purpose of decreasing the cost related to support by
increasing the customer happiness to fulfill the demands and requirements. It is
also used for developing customer experience so that high level of success in
return on investment is enjoyed. This information system quickly solves the
issues that were raised within Smartville in terms of gathering raw material so
that smooth operations would be done successfully.
From the above explained information system it is to be justified that these
information system are highly relevant for Smartville because it helps in completing the
business operations effectively and efficiently. Using this information system is quite
impressive for Smartville to sustain within marketplace effectively. This business mainly
deals in production of smart car especially Mercedes Benz in which information system
is highly useful for smooth functioning of operations so that cost of producing is reduce

and profit margin will be increased (Xu, 2019). The decision support system helps in
taking decisions related to financial terms and production aspects so that profitable
results are to be enjoyed. In this knowledge information system helps in gathering
knowledge in understandable manner so that targets are achieved on time and in
smooth manner. In terms of management information system this helps managers to
planning and controlling the activities so that information would be managed proficiently.
Discuss strategies of Micheal Porter that is cost leadership and differentiation
and make judgment as to which is more suitable for Smartville
Michael porter generic strategies elaborate how an organization pursues its
competitive advantage within its chosen market area. This model mainly discuss how a
business firm must offer their goods and services within the market that leads to high
profitable results along with gaining competitive advantage in an appropriate and
effective way (Valdez and et. al., 2019). It renders four strategies such as cost
leadership strategy, differentiation strategy, focus differentiation strategy, focus cost
leadership strategy. This concept of generic strategies is developed in 1980 by Micheal
Porters. These generic strategies are presented below in context of Smartville:
 Cost leadership strategy- This strategy presents, that a business set out their
cost to become a low cost producer within the industry in which they are
operated their operations. It is one of the crucial strategies for the business
enterprise that is associated with company profitability in terms of presenting cost
leadership. According to this strategy organization would competition within
marketplace on the basis of their producing cost to become a low cost
manufacturer within their similar market. This strategy is quite useful for an

organization in terms of overcoming with the condition of market that is currently
prevalent within the particular nation. Therefore, applying their aspect within a
business, it might offers a minimal benefits that linked with the fact that once an
organization start to lower their price range that business firm will lost their
competitive edge within particular market (Connolly-Barker and et. al., 2020). If a
Smartville adopts this strategy then they highly emphasis on low cost production
of the Smart cars for Mercedes Benz. It demonstrates several ways of lowering
the cost of products that are high volume businesses can achieve economies of
scale that means if they have an increased level of production and Smartville
have huge level of production due to which they reduces their cost of production
very easily. Another essential element that helps Smartville to adopts this
strategy is that increasing purchasing power as this business import products
from India that are unique in nature and also in reasoning cost (Le Hang, 2018).
At this time Smartville increasing their purchasing cost with suppliers so that they
cannot deliver same raw material to another one that indirectly turn out a cost
efficient manner due to enhancing supplies of Smart car. As Smartville produces
Smart car for this they coupled with advanced technology so that their production
of car is to be improved. In this they adopt artificial intelligence software to
remove the error and encourage more human interaction. This also contains
some benefits and drawbacks in relation to Smartville. The best advantage of
adopting this strategy is that business enjoys better profitability results by
lowering the cost of their production as compared to competitive products within
marketplace. This strategy also helps in developing sustainability of individual

business and at the same it reduces competition within marketplace. The major
disadvantage of adopting this strategy is that this technique is easily adopted by
competitors which may affect long term sustainability.
 Differentiation strategy- In this strategy a business organization would produce
new and differentiate products that helps in creating new demands within the
marketplace because of the exclusive and uniqueness of producing products. In
this business enterprise examines and chooses various dimensions that are
highly valued by customers in marketplace (Chang, Hsiao and Boudier-Revéret,
2020). This strategy reflects as a major advantage for an organization in terms of
selling their products at premium cost. Due to differentiation in Products
Company sell their offerings at premium cost and customers are happily paid for
this because of its exclusivity. Moreover, this strategy would support the firm to
involve into same repeated market analysis to effectively examine the gap within
marketplace to effectively produce more differentiated products and services for
creating more market trends. The main reason for developing this strategy is to
gain competitive advantage for a long time period. In terms of Smartville that is a
factory outlet that produces smart car for Mercedes Benz, adopts this strategy in
which they produces the car by using differentiating products along with highly
talented workforce that always have unique ideas and skill so that products are
produces in exclusive nature. It would attract number of car dealers towards the
smart car and they buy them for further sale. In this Smartville sell their Smart
carat premium cost to car dealers because of the uniqueness of products.
Adopting this strategy is highly beneficial for generating the high market value

and brand value of business enterprise. As this production site is having a most
modern automobile production plants that helps in developing and producing
smart cars for car dealers so that they further attracts the customers for gaining
profitable results.
 Focus strategy (cost leadership, differentiation) – This aspect leads an
organization to focus on competitive scope within the same industry, along with
selecting a specific target market on which strategies would be subjected to. This
strategy mainly bifurcated into two factors that are presented below:
o Cost focus- In this strategy, business enterprise grab advantage within
target segment thorough their attractive cost of production.
o Differentiation focus- In this strategy, business focus on differentiation of
products that are subjected towards target market of an organization.
Out of all above explained strategies, Smartville must adopt the Differentiation
strategy that would help business enterprise in engaging in a long span of time and
gaining competition within marketplace. This could only be done by differentiation the
manufacturing techniques and skills or knowledge of employees in producing the
products. This would help in attracting the number of customers that are mainly car
dealers by using advanced technology in marketing and promotion using artificial
intelligence (Saffady, 2020). Smartville assembled and manufactured smart cars and
after completing the manufacturing this car are shipped to car dealers not to the
individual customers. As Mercedes Benz is a premium brand in market and to maintains
their credibility they ensures that they operate their plant at that place where they get
the unique and exclusive results. Due to this they operate their plant at Smartville,

where manager adopts differentiation strategy to producing a car for maintaining its
value in the eyes of customers and market competitors. Adopting this strategy is quite
useful to make too different or too bold.
Discuss the data protection act in relation to Smartville with the core aspect of
this act
Data protection act refers to that act which is based on securing personal data
and information of a specified company. In simple terms data protection act protects the
privacy and integration of data that is held on individuals by organization and other
business. This act assures that an individual have an access to their data and it would
be modifying according if necessary. In terms of Smartville, if the information and data
of this business is leaked or stolen by some other business entity by hacking the
information system of Smartville than it will affect the company profitability and brand
reputation (Berget and Wyckoff, 2020). In this data protection act is highly supportive to
Smartville and helps in securing the important data so that brand reputation and market
position would maintain. It is very beneficial for an organization to keep the data safe,
confidential, accurate and private. To saving the confidentiality of data, Smartville focus
on adopting data protection act. For instance- In a Smartville, manager highly focuses
on securing their data related to manufacturing and production equipment’s along with
the financial budget and suppliers so that high quality results are to be maintained by an
organization. If any of the information is leaking within the competitive market than
company face major issue in saving their brand image in competitive marketplace. In
this manager at Smartville, highly emphasis on data protection that is very crucial for
businesses and an individual to save their persona information effectively and

efficiently. it includes a set of principles that Smartville would follow to handle, secure,
private and confident their data for leaking or creeping. In this manager also focus on
guiding to assist data processors with the practical execution of GDPR obligation at the
premise. It also use open source software tool private the data so that it would be safe
from stolen and creeping. Smartville also hire best experienced applicant who
effectively secured the data of business enterprise so that issues related to creeping
and stolen is to be solved. In this basic three aspects are very effective for Smartville
that are associated with data protection act are presented below:
 Data security- It is one of the core aspect that reflects as a processes to
securely handle the business personal data. In this Smartville emphasis that data
must hold securely and processes appropriately including full protection against
unauthorized and unlawful processing against confidently lose within maintaining
data (Berget and Wyckoff, 2020). To secure the data Smartville highly emphasis
on adopting intellectual protection act where they copyright their data so that it
would be secure from leaking and stolen. Data security must be apply on both
physical and digital data to helps in securing for internal and external threats of
Smartville. For instance- security like installing security software like antivirus
provides information, instruction, training to staff etc.
 Accountability- It is new edition within data protection act that is relevant for
Smartville for saving from creeping and leaking the information (Agozie, Nat and
Edu, 2020). In this Smartville manager must able to prove that their data
protection measures are sufficient as they have use appropriate technical
policies to keep their record of processing activities. This aspect of data