Strategic IS/IT Application for Innovation: Success Factors Analysis

This report critically discusses how organizations strategically apply Information Systems (IS) and Information Technology (IT) to achieve IS/IT-enabled innovation. It provides examples such as Amazon, Uber, John Deere, and Zopa, highlighting their use of IS/IT for innovation and discusses success factors like Big Data, cloud computing, and machine learning. The report analyzes the impact of internal factors (organizational attributes, individual awareness, and management practices) and external factors (market competition, social and economic trends, technological advancements, and political/policy environments) on the success or failure of IS/IT-enabled innovation. It concludes with recommendations and guidelines for organizations to successfully embark on using IS/IT for innovation, emphasizing the importance of adapting to technological advancements and fostering a supportive organizational environment.

Running head: APPLICATION OF IS/IT FOR INNOVATION
Application of IS/IT for Innovation
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Examples of Use of IS/IT for Innovation........................................................................................2
Success Factors................................................................................................................................4
Impacts of Internal Factor on the Success of IS/IT Enabled for Innovation...................................5
Impacts of External Factor on the Success of IS/IT Enabled for Innovation..................................7
How Organizations Embark IS/IT for Innovation...........................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
In this new era of technology, Information System (IS)/ Information Technology (IT) is
playing an important role for the innovation and thus, enhancing the performance of the
organization. Information technology is enhancing the life living of every individuals and being
spread in each sector of the world. IS/IT can be applicable in every field including agriculture,
medical, institution and many more. Innovation is not about presenting new products in the
market rather it also points out the enhancement in the services and products in innovative way.
This paper emphasis on embracing the IS/IT for innovation and discusses about the various
factors that can affect this implementation and helps in implementation of IS/IT for the
enhancement of the performance. This paper also presents facts related to how IS/IT should be
implemented in manner to enhance the performance of the organization.
Examples of Use of IS/IT for Innovation
Amazon.com
It can be stated as the best example for the implementation of IS/IT for innovation that is
the one of the leading organizations in the field of e-commerce. It shows how much beneficial
could be, after implementing IS/IT within the system of the organization. It was launched in July
1995, and earlier its priority was to provide availability of books for the customers with the help
of internet with most efficient experience. In the early stages, the contact was being made
through email or website and delivery of the books were delivering on the same day, when the
order was placed (Amazon 2017). Initial idea for the Amazon was to provide customers with the
variety of books ten times larger than those are available at the Street Superstores with a discount

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of 10 to 15 percent cheaper than the prices in the market. However, only this was not sufficient
for the sustainability in the market as competitors were coming up with new options of
comparing sections and price points. Technologies such as ‘1-click’ shopping and customer
profiling supported the back of the Amazon and thereafter cloud computing, data mining, Big
Data and various other technologies were implemented and till now it has became one of the
greatest enterprise.
Uber
In the era of 2000s, Uber launched an app that can provide a service of taxi with just a
click. It is providing services in more than 230 cities in around 51 countries without owning any
car. This application provides the facility of connecting with drivers and arranges the travelling
through a Smartphone connected via Internet (Uber 2017). This whole system was possible only
because of the ‘Big Data’ and it makes it possible for the users to find a ride, which is not more
than five minutes away from the booking destination. It is an example of a platform that a
company owns for the taxi services without owning single car in real and facilitates the two-
sided market that is capable of bringing the suppliers and the customers together.
John Deere
John Deere is an US agricultural machinery manufacturer that is more than one company
selling machineries for the enhancement of agricultural experience. These machineries have been
implemented with several Big-Data enabled services that are beneficial for the farmers in
providing a suite of services based on data collected from thousands of the users. This service is
helpful for the partners in manner to support the fertilizing, seeding, and harvesting control from
a central hub. It is operating from a website namely ‘myjohndeere.com’ that is an online

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platform that collects information from the sensors implemented within the machinery along
with the data collected from around the world with different users. Innovation helped this
organization in increasing out through the transformation of selling hardware to services.
Zopa
Zone of Possible Agreement (Zopa) was the first company in the world that launches the
P2P (Peer-to-Peer) lending operation. Information Technology helped the user or customer and
lender to negotiate at a particular rate that is fair for both the sides. Zopa helps both the
individuals a platform where negotiation and exchange of value could be maintained without
involving the bank (Zopa 2017). With the application of IS/IT, Zopa has been disruptively
lending that was traditionally being done through the financial institutions and the banks.
Success Factors
Implementing IS/IT within the existing could be helpful in boosting the customer
experience and services those are being delivered to the consumers. New technological need of
the world, Big Data, Data mining and Cloud computing are the success factors for innovation
and enhancing the performance of the organization and widening the scope and customers
availability irrespective of the physical boundaries (Cresswell and Sheikh 2013). Internet can be
listed as the top most success factors for the above companies for enhancing the operational
activities and improve the customer experience. Another success factor is the cloud computing
and Big Data that is contributing in the better customer experience through calculating,
recording, and performing actions based on that through machine learning (Peppard and Ward
2016). For the innovation nowadays, machine learning is being pronounced as the Artificial
Intelligence and it could be a crucial factor for the enhancement of services and products in much

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more innovative way (Groves et al. 2017). Above companies have set example how these
success factors could play a vital role for the innovation and set the company at the top level in
the competitive market.
Those who are implementing information system and information technology for
executing the operational activities are implementing these technologies within the existing
system. Various software are already in the market such as SAP, ERP, HR Management, and
many more those are contributing in enhancing the performance in efficient and effective manner
(Barrett et al. 2015). Above examples states how AI and Innovative analytic tools can bring the
change in the market and enhance the data processing and data evaluation that results in bringing
out the best options through calculation and contributing in the diversity, inclusion, and bias.
These factors help the companies in removing the bias in promotion, and hiring through
introducing new and innovative tools from calibration sessions and talent reviews (Camagni
2017). Targeting the customers was another considerable success factors for these as Uber set
example on targeting the customers with Smartphone in manner to cover a large platform and big
crowd of the consumers. This system sets example on the application of IS/IT for innovation can
result in high score without any capital (Bloom et al. 2014). John Deere can be an example of
how decision-making through AI could be much beneficial than human estimations and how
information technology is helping in embracing it. Information system or Information
Technology for innovation can be stated as the most emphasizing tool for an industry to reach at
the top in the competitive environment.
Impacts of Internal Factor on the Success of IS/IT Enabled for Innovation
Organizational

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Organizational attributes are the crucial factor for the successful implementation of IS/IT
for innovation as for innovation contribution of each individual is very important and should be
considered (Wu et al. 2013). However, while implementing IS/IT, it is important to consider the
facts related to the success or failure of the management activities. Implications for the manager
includes the timely communication, awareness that accurate, and a reward structure, which
applies participative decision making, the nurturing of champions, and principles of expectancy
theory should be considered the crucial factor in manner to implement the information
technology innovation in efficient and successful manner.
Individual
It is important for every individual to be well aware with the technology and the
workings that could be accomplished through the implementation of IS/IT within the system.
The final output of an organization can be calculated by the achievements of individual
accomplishing within the organization (Carlo et al. 2014). Proper training and education to the
individuals about the application of the systems such as IaaS, and SaaS can be helpful in
boosting the efficiency and effectiveness of the implementation. These technologies and system
will be helpful in providing data accessibility and availability every time and make the
calculation in very easy way.
Management factors
SAP, HR management, ERP, and many others are some of the examples of IS/IT that
could be implemented for the managerial factors and could enhance the managerial performance.
These tools can be helpful in processing the data calculated with each individual and thus make
decision-making based on those calculated data (Won et al. 2013). There are various tools

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available in the current situation for accomplishing the managerial activities and managing the
performance and activities of each individual. Various project management methodologies are
also being implemented including tools such as Gannt Chart, WBS, Network Diagram, and many
more in manner to accomplish the task in efficient manner and hence increase the output
(Altman, Nagle and Tushman 2014). Management is another crucial factor that is capable of
affecting the innovative implementation in positive or negative manner.
Impacts of External Factor on the Success of IS/IT Enabled for Innovation
Market
Today is an era of competition for the organizations as, the number of enterprises have
been increased drastically with the passage of time. Competitive advantage can only be gained
through the implementation of IS/IT for the innovation and thus, enhancing the performance of
the organization than the competitive organizations (Wu and Chiu 2015). Almost every
enterprise in the market are implementing the IS/IT for innovation and innovative product and in
manner to cope up these competition, it is important to implement these technologies.
Social and Economic
Technology is not being implemented to the organizations only, rather it is being
applicable with every individual and thus the target field is being changed. It can target a wide
range of consumers as most of the population is connected via information communication
technology. Social media is one of the largest crowd and biggest platform for the organizations
to increase the awareness about the services and products in manner to enhance the productivity.
Implementation of these technologies might be a costly but less cost effective in maintenance
and upgrade as per the requirement of the organization (Gawer and Cusumano). Easy

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maintenance results in the effective and efficient work flow for the operational activities within
the organization.
Technological
Information System or Information Technology can be an innovative factor for any
organization in manner to transform the way of the operational activities and enhance the
performance of the organization. This implementation could be helpful in providing data
accessibility and data processing for 24*7 and most of the technologies and systems are being
operated by third party (Nambissan et al. 2017). Hiring third party can be a supporting pillar for
the organization in manner to manage the data and other operational activities.
Political/Policy factors
Change in government always affects the current and future situation of an organization
implementing Information system or Information technology for performing the operational
activities. Outsourcing and hiring third party are the general medium for executing this
implementation successfully and effectively (Limaj, Bernroider and Choudrie 2016). Most of the
third parties and outsourcing includes various types of paper work and change in policy or the
government could result in many problems. Sometimes these facilities are available from outside
the countries and thus, there is the possibility of seizing data and information or stop getting
services due to the change in laws.
How Organizations Embark IS/IT for Innovation
Implementation of IS/IT can be helpful in managing the operational activities from the
managerial activities to the supply chain management. IS/IT can be implemented in manner to

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turn the business processes into an automated IT functions or use the software and applications
that can be helpful in opening new markets, or implementation of desktop virtualization in order
to increase the manageability and eliminate the hardware costs (Lee, Khao and Yang 2014).
Process of innovation is being implemented through creating innovative term for diversifying the
segments set by the organization itself. Calculation or measurement of innovation is a difficult
matter for any organization and thus, it is being calculated using the Return on Investment made
on the IT implementation for innovation (Weerawardena et al. 2015). Using an application that
can be accessible via Smartphone can be a better option for promoting the customer relation and
engagement and enhance the productivity of the organization, as most of the population is
available on the Smartphone. Innovation is not just a new product rather; it is a term representing
to the delivery of new objectives with new opportunity. It is the time for the organization to leave
the traditional way of business and seize the new opportunities those are being presented by the
Information System and Information Technology. This could be helpful in introducing the
consumers with new and innovative option or services or products. This could be helpful for the
staffs in understanding the objectives of the business of the organization, thereafter it can be
connected by them that what they are doing at that instance and what is the planning for the
future for the accomplishment of the goals and objectives of the organization. IT leaders are
responsible for vision that has been set for the activities set for the team members and the co-
workers (Kamalian, Rashki and Arbabi 2013). Managing the activities and the services through
the information technology can eliminate the extra efforts for the employees and thus importance
can be provided to the innovation and innovative services or products. Organizations mentioned
in the above report are the perfect example of how IS/IT for innovation and it could change the

10APPLICATION OF IS/IT FOR INNOVATION
experience of work and enhance the performance through implementing innovative services
(Fichman, Dos and Zheng 2014).
Conclusion
Based on the above report, it can be concluded that implementation of IS/IT can be stated
as the basic factor for the innovation and enhancement of the performance and output in this
competitive market. Examples mentioned above shows how successful implementation and
proper innovation can result in enhancement in the output and widening the scope of the
organization through covering large and wide target market. All the factors can result in positive
aspects for the organization and manage all the operational activities in an efficient and effective
manner. Embracing IS/IT can be the most efficient factor for the innovation within the
organization. This paper discussed about the internal and external factors related to the
implementation of IS/IT for innovation in positive manner and expresses the positive aspects
related to the implementation of IS/IT. How an organization can adopt IS/IT has been also
discussed in the above report and factors have been stated those could enhance the performance
of the organization and meet the expected goals and achievements of the organization.
Considering the current nature of the market and technology in everyone’s hand, it can be
concluded that implementation of IS/IT could enhance the data collection and thus, probability of
the calculation will be presenting the exact decision. Enhancement in the decision-making is
another considerable factor that could enhance the performance of the organization. Artificial
Intelligence can be stated as the future scope for the enhancement in the innovation and thus
enhancing the experience of IS/IT for innovation within the existing system of the organization.

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References
Altman, E.J., Nagle, F. and Tushman, M., 2014. Innovating without information constraints:
Organizations, communities, and innovation when information costs approach zero.
Amazon.com. 2017. About Amazon - Transformations. [online] Available at:
https://www.amazon.com/p/feature/92oy4j4mh9vm8q8 [Accessed 6 Dec. 2017].
Barrett, M., Davidson, E., Prabhu, J. and Vargo, S.L., 2015. Service innovation in the digital age:
key contributions and future directions. MIS quarterly, 39(1), pp.135-154.
Bloom, N., Garicano, L., Sadun, R. and Van Reenen, J., 2014. The distinct effects of information
technology and communication technology on firm organization. Management Science, 60(12),
pp.2859-2885.
Camagni, R., 2017. Technological change, uncertainty and innovation networks: towards a
dynamic theory of economic space. In Seminal Studies in Regional and Urban Economics(pp.
65-92). Springer, Cham.
Carlo, J.L., Gaskin, J., Lyytinen, K. and Rose, G.M., 2014. Early vs. late adoption of radical
information technology innovations across software development organizations: an extension of
the disruptive information technology innovation model. Information Systems Journal, 24(6),
pp.537-569.
Cresswell, K. and Sheikh, A., 2013. Organizational issues in the implementation and adoption of
health information technology innovations: an interpretative review. International journal of
medical informatics, 82(5), pp.e73-e86.