Critical Analysis of Strategic IS/IT Applications for Innovation

This report critically examines how organizations strategically apply Information Systems and Information Technology (IS/IT) to foster innovation. It presents various examples of IS/IT use for innovation, highlighting success factors and lessons learned from these cases. The report analyzes the impact of both internal factors, such as organizational structure and leadership, and external factors, including market competition and technological advancements, on the success or failure of IS/IT-enabled innovation. Furthermore, it provides recommendations and guidelines to assist organizations in effectively leveraging IS/IT for innovation, emphasizing the importance of conceptual clarity, simplicity, and a systematic approach driven by effective leadership. The analysis draws upon established theories of innovation and change management, ultimately advocating for a comprehensive evaluation of internal and external business factors to ensure successful IT innovation.

Running Head: Information System 1
Information System

Information System 2
Contents
Introduction:...............................................................................................................................................3
Information Technology/ Information System:...........................................................................................4
Innovation in IT/IS application & success factors:...................................................................................4
Impact of internal and external factors:..................................................................................................7
Internal factors:...................................................................................................................................7
External Factors:..................................................................................................................................8
Recommendations:.....................................................................................................................................8
Conclusion:................................................................................................................................................10
References:................................................................................................................................................11

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Introduction:
Presently, information system (IS) play major role in business organization in encompassing the
use of information technology (IT) for the purpose of developing products, services, and
capabilities which provide strategic advantage to the company at global level. Various ISs have
been introduced for supporting the business organizations in gaining competitive position and
advantage for companies. Those ISs which are strategic in nature are used by the business
organization in connecting things or other parts of the chain, and this result in competitive
advantage to the company. It also helps the business organization in meeting its strategic
business objectives (Aldhmour & Shannak 2009).
As stated by author, IT/IS application are effective and efficient in nature and these application
are used for the purpose of establishing, converting, and sharing knowledge management (KM)
systems which not only affects the process related to organization management, but also affects
the way in which human resources of the organization are managed. Furthermore, IS/IT
applications help the organization in improving the management system and decision making
system of the organization. Another reason of use of IT application by business organizations is
that it reduce the cost and help in increasing the productivity by cutting down the cost and
improving the quality of the products or services. However, IT/IS applications provide various
measures to business organizations which help the organization in gaining competitive advantage
over other organizations (Powell & Dent-Micallef, 1997).these measures can be understand by
discussing different ways through which IT/IS applications are used by the business
organization.

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Information Technology/ Information System:
Business organization can gain the competitive advantage over its business competitors by
cutting down the cost and expenditure related to products and services and also by introducing
innovative products and services which ultimately attract the end users of the products and
services. Business organization can also gain the competitive advantage effectively by ensuring
development of alliances, locking-in the customers and supplier, increasing hurdles and using the
investment properly in IT section. However, for the purpose of reaching the strategic advantages
and competitive advantages in business, organization must analyze various factors of internal
and external business environment (Hemmatfar, Salehi & Bayat, 2010).
Innovation in IT/IS application & success factors:
Information technology can be used by business organization in unique and effective manner for
the purpose of improving products or services. Availability of more information facilitates the
company in creating strategic IS/IT application for the purpose of strengthen their planning and
strategies related to business and also ensuring corporate innovation. Information
Communication Technology provides important information to the business organization which
help he organization in generating meaning customer data (Papulova & Papulova, 2006). Data
related to customer is collected every time when customer is interacted with the system and this
data is analyzed and collective harvest information for business organization for the purpose of
developing the business intelligence systems or applications. They further stated that it is
necessary to use technology as platform because it helps the organization in consolidate the
needs of customers and corporate missions.

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This can be understood through example, Southland Transportation Ltd., (bus operator of a
Calgary-based school), searching the options through which they can increase their customers
service system by communicating interruptions to bus schedule and this schedule is depend on
various factors such as drivers availability, conditions related to weather, increase in traffic, and
for safety purpose such as avoiding kids to wait in cold weather. The main intention behind this
innovation is to inform the parents in advance about any delay that might be occurred in schedule
of bus. For ensuring all these requirements, company develop a communication system in the
form of mobile app which inform the parents about any delay in the schedule of bus, for the
purpose of ensuring that kids must not wait in the cold weather. Organization develops the
mobile application for blackberry platform with a custom-build mobile application for the drivers
of the bus. These applications enable the bus drivers to report quickly and easily about the
conditions of the road which can cause delay in the schedule to parents and Southland
Transportation. By ensuring this innovation in IT section and by providing unique and better
service, Southland Transportation gain competitive advantage over competitors because number
of parents chooses their services which also increase the market share of the organization. In
other words, innovation in information technology helps the Southern Transportation in
providing better and unique services to the customer which ultimately helps the organization in
getting competitive advantage over the competitors. This section also highlights the growth of
business which result from the same application such as it results in comparison with large firms,
additional business from existing customers, reduction in volume of call at dispatch office, and
lastly increase the ability of the organization in delivering unparalleled customer service
(Blackberry, 2008).

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There is one more example; Google is another company which connected the innovations in IT
sector to its business operations. It must be noted that, Google continuously focus on IT
innovation which ultimately providing value to the end user. Google adopt various IT
technologies such as AJAX which is also integrated by organization through its Google maps.
Integration of AJAX provides capability to Google maps to be able to zoom and some other great
and effectives features without refreshing the page. All these innovations help the organization in
providing best and better services to the customers and this result in making the Google map
only competitor in online map. All these innovations in IT sections help the Google in getting
competitive advantage over its competitors (Bangera & Lo, 2008).
IT application is also used for the purpose of regulating the inbound logistics which also provide
the benefits of totally elimination of storage costs. This can be understood through example,
MITOS system integrated with the databases of material suppliers for the purpose of providing
the updated information to the suppliers in easy manner with the suppliers of materials. MITOS
system works as a “Just in Time System”, and it also enables the construction companies in
getting the required material on time just before they run out of stock (Cakmak & Tas, 2012).
This efficient and effective system helps the organization in reducing the cost related to
inventory and also help the organization in getting competitive advantage over other competitors.
There is one more example; Premier Designs Inc is the USA based company which is engaged in
manufacturing of cloths. This organization uses the IT/IS applications for getting the competitive
advantage. IT innovations has used by the company for the purpose of cutting its cost, and for
this purpose company developed mobile application called “Premier Designs Jeweler”. This
application helps the consumers and other users in designing their own clothes and as result
information related to consumers automatically updated in the IT systems of the organization.

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Through this application, company is also able to cut down the cost related to designer’s team
and it increase the efficiency in terms of operations because ideas are directed generated from
consumers (Sadowski, Maitland & van Dongen, 2002).
Impact of internal and external factors:
For the purpose of examine the factors of the organization which affects the innovation in the
information technology. However, organizational factors are considered as most important
factors which must be evaluated before making any innovation in the IT sector of the
organization. By understanding the organizational factors, management can ensure effective
planning which results in systematic IT implementation. It must be noted that, there is significant
relationship between the resources of the organization and organizational knowledge process,
management structure and values and goals with implementation of information technology.
Number of researches were conducted for this purpose, and results of these researches shows that
organizational factors has very considerable effect on the innovation related to IT sector and top
managers must consider these factors while framing IT innovation planning. There are two types
of factors that are internal factors and external factors.
Internal factors:
Internal factors include various aspects such as management, leadership, individuals, etc., and it
must be noted that company leadership is considered as most important internal business factor.
Leadership style of the top management and other management officials directly impacts the
culture of the organization. various aspects in this term effects the innovation in IT sector such as
positive or negative nature, level of family-friendliness, effectiveness of communication and
value of employees are some of the cultural implications which is related to the leadership

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approaches. For this purpose, companies usually provide formal structure or direction with
mission and vision statements. The strength of the employees is considered as other important
internal business factor. Motivated and hardworking employee usually provides better results as
compared to less motivated and less talented employee. One more thing impact the innovation in
IT sector that is processes and relationships between departments and employees of the
organization. Good relations positively affect the innovation in IT application and bad
relationship negatively affects the IT sector.
External Factors:
External factors include political, technological, competition, etc., and the most important factor
is competition. It is necessary for organization to understand the competition and moves of its
competitors for the purpose of surviving in the industry. Before making any innovation in the IT
application it is necessary for organization to understand its competitors and analyze the market
(Kokemullar, n.d.).
Recommendations:
As stated by Tidd and Bessant (2015), innovation is considered as talk related to change, and this
theory is supplemented by Burgelman, Christensen, and Wheelwright (2004) that innovation can
be considered as changes occurred in the technology. In the context of this approach to
innovation in IT sector, following are some recommendations which are stated below:
 Innovation in IT sector must be conceptual and perceptual in nature, which means, while
innovating the IT application organization must ensure that innovation is interpreting
some concept which is sensible in nature.

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 For the purpose of innovation to be effective, it must be simple and punctual. In other
words, application related to IT/Is must be simple and it does not create any confusion in
the mind of the users. It is recommended to the companies to make their innovation
simple because innovation to be effective it is necessary that consumers understands and
use the innovation in more easy way.
 It is recommended to the organization to ensure that innovations begin modesty and tried
to accomplish something specific. In other words, IT application must be able to
accomplish any particular task or provide any specific advantage to the users of products
and services.
 There is one more recommendation that organization must ensures that successful
innovation aims at leadership. In other words, innovation must be intentional and
systematic in nature which is only possible through effective leadership.
 Innovation must be done after conducted proper evaluation of sources, data, and
opportunities available to organization.
As stated by Tushman and Nadler (1997) prganization can applied to innovation to any product
services or process and it must be seen in a way as to compete in dynamic environments living
with continuing technological changes. In this context it is recommended that, IT innovation
must be done after analyzing all the internal and external factors of the business environment and
also by assessing the opportunities and threats of the business.
As stated by Schumpeter (1988), innovation can be conducted in various different forms. It is not
necessary for the organization to invent something new, organization can also present the
existing idea in new way for the purpose of performing it or new situation. Innovation involves

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the introduction of new products, services, production methods but it can also be done presenting
the existing products, services, production methods in new way .
Conclusion:
It is important to note that in present world, it is not possible for any industry to ensure growth
without the use of any system of IT/IS. Because of the development and changes occurred in the
IT sector, it can be said that strategic moves used by the business organizations no longer
provide strategic results with time. This usually happens when similar strategies are adopted by
the competitors, and there is need to differentiate the made of operations of business in various
companies. Some strategic management and improvements on continuous basis related to the
strategic systems must be adopted for ensuring long term success. IT/IS systems are considered
as those factors which contributes the success if consumers are involved in the process and IS
used in strategic manner and at the right time. Information is also provided by the company
which helps the organization in conducting appropriate analysis of the processes, timescales, and
resources because all these things are considered as base for ensuring any continuous
improvement initiative. Therefore, it is necessary to align the IT applications to business
strategies and with some other factors also such as performance, features, reliability, durability,
serviceability, conformance to business environment, perceived quality and these factors must be
taken into consideration.
References:
Aldhmour, F., & Shannak, R. (2009). The effective utilization of information and communication
technology and its impact on competitive advantage. European Journal of Scientific Research,
Volume 29(3), 302-314.

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Bangera, R. & Lo, M. (2008), A Case Study of Innovations with Google Maps. Available at:
http://infm718zs11.wikispaces.com/file/view/INFM+718Z_Term_Project_Google_Maps_Paper
Rohit%26Phillip.pdf. Accessed on 5th December 2017.
Blackberry (2008). School Bus Operator Drives Competitive Advantage with BlackBerry
Solution. Available at: http://us.blackberry.com/newsroom/success/Southland_BCS_FINAL.pdf.
Accessed on 5th December 2017.
Burgelman, R. A., Christensen, C. M., & Wheelwright, S. C. (2004). Strategic management of
technology and innovation (4th ed.). New York: McGrawHill Irvin.
Cakmak, P. I., & Tas, E. (2012). The Use of Information Technology on Gaining Competitive
Advantage in Turkish Contractor Firms. World Applied Sciences Journal, Volume 18(2), 274-
285.
Hemmatfar, M., Salehi, M., & Bayat, M. (2010). Competitive advantages and strategic
information systems. International Journal of Business and Management, Volume 5(7), p158.
Kokemullar, N. What Are Internal & External Environmental Factors That Affect Business?.
Available at: http://smallbusiness.chron.com/internal-external-environmental-factors-affect-
business-69474.html. Accessed on 5th December 2017.
Papulova, E., & Papulova, Z. (2006). Competitive strategy and competitive advantages of small
and midsized manufacturing enterprises in Slovakia. E-Leader, Slovakia.
Powell, T. C., & Dent-Micallef, A. (1997). Information technology as competitive advantage:
The role of human, business, and technology resources. Strategic management journal, Volume
18(5), 375- 405.
Sadowski, B. M., Maitland, C., & van Dongen, J. (2002). Strategic use of the Internet by
smalland medium-sized companies: an exploratory study. Information Economics and Policy,
Volume 14(1), 75-93.
Schumpeter, J. A. (1988). A teoria do desenvolvimento econômico. São Paulo: Abril Cultural.
Tidd,J., & Bessant,J. (2015). Managing innovation – Integrating technological, market and
organizational change (5th ed.). John Wiley & Sons, Ltd.