MNG03218 Managing Information Systems: Strategic IS/IT Innovation

This report provides a comprehensive analysis of Information Systems (IS) and Information Technology (IT) innovations, focusing on examples such as Management Information Systems (MIS), Decision Support Systems (DSS), Virtual Reality (VR), and the Internet of Things (IoT). It explores the success factors behind innovations like Oracle's MIS and IBM's DSS, while also examining the failure factors of technologies like Oculus Rift. The report further investigates the impact of internal factors, such as management support and design innovation, and external factors, like market conditions, on the success of IS/IT-enabled innovations. It concludes with recommendations for organizations seeking to leverage IS/IT for innovation, emphasizing the importance of aligning technology with business goals and adapting to changing information needs. Desklib offers this report and other resources for students.

Running head: INFORMATION SYSTEMS
Managing Information Systems
11/22/2018

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Table of Contents
Introduction................................................................................................................................2
Examples of IS/IT Innovations..............................................................................................2
Management Information Systems....................................................................................2
Decision Support System...................................................................................................4
Virtual Reality....................................................................................................................5
Internet of Things...............................................................................................................6
Impact of Internal Factors on the Success of IS/IT enabled Innovations..............................7
Impact of External Factors on the Success of IS/IT enabled Innovations.............................8
Recommendations......................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................12

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Introduction
With the establishment of the computers, the world of business was changed forever. By
using software and computers, organizations make use of information technology such that
all the departments can be managed smoothly. The use of information technology is done by
businesses in different departments comprising manufacturing, security, human resource, and
finance (Reddick, 2011). With the help of information technology, companies get the
capability to see the changes in the worldwide market faster than before. They buy the
packages of hardware and software that support them to perform their work. Large companies
possess their own department of information technology for maintaining the hardware and
software. IT has permitted companies to maintain the balance between supply and demand
because customers become more concerned to have their products immediately (Kumar,
2014). The aim of this report is to highlight different examples of innovations under IS/IT
and their journey in the industry. Moreover, a discussion will be made about the impact of
internal and external factors on the success of IS/IT enabled innovation. In the end, guidelines
and recommendations will be provided such that organizations could succeed in their efforts
to embark on using IS/IT for innovation.
Examples of IS/IT Innovations
Management Information Systems
A management information system is used as a decision-making system and for the control,
visualization, coordination, and analysis of information. The learning of management
information system scrutinizes technology and people in an organizational setting. It is an
electronic database of financial data programmed and organized in such a manner that it
creates even reports on processes for each management level in an organization (Sousa and

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Oz, 2014). It is conceivable to get special reports from MIS very easily. The key motive of
the system is to offer feedback to the managers related to the own performance, top
executives can monitor the business operations as a whole. Information or data exhibited by
the Management Information System naturally reflects “actual” data over “planned”
outcomes and past results, thus, it evaluates progress against objectives (Shakiri, 2014).
Oracle is the leading software company in the world. With a range of prominent
achievements and their own development, Oracle has made a refined portfolio of the
applications of business software, which complement the company’s traditional strength in
infrastructure and database systems. The management information system provided by Oracle
signifies the electronic automation of numerous diverse types of record-keeping, accounting
techniques, counting, and tallying for which by far businesses were using a ledger
(Mohammed and Hu, 2015).
Success Factors of Management Information System
The Management information system offered by Oracle is incorporated into the functions of
management. It organizes clear goals such that organizations using MIS can focus on the key
business issues. The success factor of the information system provided by Oracle to its clients
is focused, determined, and intended in relation to the requirement of the user and its
operational feasibility is confirmed. Another factor is that it is continuously kept under
investigation, such that the design of its open system is improved as per the altering
information needs (Open Learning, 2011). As per the survey conducted in 2011, the MIS
offers an advantage of enhanced banking systems because it concentrated on the goals and
outcomes, highlights the issues, and causes for non-achievement. The survey was conducted
on foreign banks under the name AFB Management Information Systems Surveys. It also
resulted in increased demand of the Oracle MIS and till date the company is achieving

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success in offering software applications to the businesses (The Association of Foreign
Banks, 2011).
Decision Support System
A decision support system is one of the known information systems that help companies in
the activities of decision-making. This system offers its support to the planning, operations,
and management levels of the company and helps employees in taking decisions regarding
the issues faced. Decisions support systems can be human-powered or computerized, or a
blend of both the features. The DSS of various benefits to the organization such as précised
decision-making, enhanced efficiency, and timely problem solving (Sauter, 2014). The
planning and operation management levels can use the Decision support system in the
company to assemble data and information and to blend it into actionable intelligence. This
permits the user to make decisions that are more informed (Bonczek, Holsapple and
Whinston, 2014).
IBM is positioned as the largest information technology companies in the world, offering a
variety of software, hardware, and services offerings. The IBM Z Decision Support is created
with a purpose to support clients in understanding the challenges by gathering raw systems
metrics data, combining them and offering tools to support in enhancing cost management,
decision-making, operational planning, and responsiveness, and decision-making (IBM,
2018). This system by IBM offers timely reporting throughout the day. It is a communicating
software-based system aimed to support the makers of decision accumulates valuable
information from a mixture of raw data, booklets, and individual knowledge, to recognize and
resolve issues and take effective decisions (Singh, 2011).

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Success Factors of Decision Support System
The IBM Z Decision Support is comprised of informed decision-making procedure, enhanced
efficiency for dealing with quickly altering variables and problem solving approaches. This
system of IBM involves planning capabilities to meet the user’s needs and ensures that
prevailing resources are optimized (IBM, 2018). The system has been successful in the
market because it offers convenience to the management by creating different types of reports
and reducing the frustration level.
Virtual Reality
Virtual reality is a computer-generated experience that is taking place in a replicated
environment. It majorly includes visual and auditory feedback, but may also permit another
kind of sensory feedback such as haptic. The immersive setting can be comparable to the real
world environment or can be fantastical (Parisi, 2015). Improved reality systems can be
measured as a type of Virtual Reality that sheets virtual data over a live camera into a headset
or through a tablet or smartphone device providing users the capability to experience three-
dimensional images. Virtual reality is becoming a famous section of video games and this
trend is expanding day by day. In addition to video games, Virtual Reality expected to
influence businesses across the panel as they accept the technology to involve consumers
more efficiently and enhance their sales and advertising efforts. It is a possibly valuable
device for learning and is progressively being accepted by educational administrations
(Sherman and Craig, 2018).
The Oculus Rift is one of the famous virtual reality headset manufactured and maintained by
Oculus VR, which is a part of Facebook Inc. Oculus Rift is a specifically intended virtual
reality display that uses a system of art display, optics and revives rates to offer a superior
level of visual reliability and a wide field of view.

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Failure Factors of Virtual Reality
The business involved in production and manufacturing procedures, Virtual Reality permits
all features of a mechanism, process, or part to be replicated and verified. Reliability and
Performance can be verified and inspected under any situation, more quickly, safely, and
cost-effectively. Moreover, Virtual Reality provides all the businesses chance to reconsider
about the way they present and engage with the consumers. For consumer and marketing
tools, Virtual Reality offers new possibilities to the businesses for representing services and
products. However, the Oculus Rift has been resulted as a failure due to the high competition
in the market and the quality it offers to the customers. Moreover, the issues of piracy are
affecting the image of Oculus Rift in the market, as it is making easy for the hackers to play
exclusive games in the Vive (Shields, 2016). Due to this company is introducing different
security updates for the customers in order to cut-off the piracy issue. Besides this, Oculus is
repeatedly reviewing its anti-piracy systems.
Internet of Things
The internet of things is known as the network of home appliances, devices, and vehicles that
are comprised of actuators, electronics, connectivity, and software that permit things to
connect, interrelate and exchange information or data. Internet of things is comprised of
ranging internet connectivity beyond normal devices, like tablets, laptops, desktops, and
smartphones, to any sort of traditional dumb. Entrenched with the technology, these types of
devices can interconnect over the internet, and can be observed as well as measured. Internet
of things is not just changing the way of doing business but also the business models.
Huawei is a platform that offers joint solutions to the industries and creates appealing
partnerships in the zones of cloud services like Carrier IT, Finance, Safe and Smart City, IoT,
and Video. Together with the partners, the company is supporting its clients to attain business
goals and create a better-connected world (Huawei, 2018).

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Success factors of the Internet of Things
Internet of things enhance the communication between different devices, formally called
M2M (Machine-to-Machine) communication. Due to this, the physical devices are capable to
stay connected and henceforth the entire transparency is accessible with lesser inadequacies
and superior quality. Huawei’s quintessential solution is grounded on main technologies,
which include big data, cloud computing, and IoT to offer open, industrial vertical enabled,
secure, and standard, solutions. Through the execution of cohesive and protected network
access, huge data collection, flexible device edition, and analysis, it adds considerably to
create a new likely revenue source. The company has attained success by offering excellent
solutions to the industries. Moreover, for a further growth company is planning to have 22
Open Labs across the globe, comprising eight jointly established with Telco. Huawei is
focused towards open partnerships and success for every IoT domain (Xiaodong and
Weiqiang, 2018).
Impact of Internal Factors on the Success of IS/IT enabled Innovations
It is worldwide acknowledged that innovation is an essential element to confirm the survival
and growth of the business. Innovation permits business to organize it with the alterations in
the environment, the demand of the customers, and market situations. The significance of
product innovation for the long-term survival of the company is now extensively accepted
and has been widely stated in the literature (Tohidi and Jabbari, 2012). Various factors
support the innovations and become the reason behind the success of those innovations such
as management, organizational, and individual factors. All these factors are part of internal
factors. Some of the impact of internal factors on the success of IS/IT enabled innovations
are:
Management and Leadership Support - The management of the organization affects the
success of innovation by frequently setting the limitations related to what is adequate to

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create and what is not. Besides this, the management of the organization offer required
funding such that innovative products or service can be created and offered in the market
with unique features (Incremental Innovation, 2018). The administrative department within
the organization is comprised of different skilled and talented personnel who are hired to
offer their advice and create innovative services. Knowledge, experience, and support of
management help in encouraging innovations. Backing for technological innovation at the
decision-making and manager level helps in nurturing a culture where innovation is
encouraged, allows some type of risk, and reinforces the complete potential for the success.
Design and Innovate – Innovation means to introduce something new or make changes in
the existing services. In Design and Technology, innovations are perceived as changes or
enhancements in the manufacturing and design of the product. Innovative originators or
designers are involved in the determined search for modification and the generation of
opportunities to bring change to enhance the life’s quality (Arthurfil, 2018).
Impact of External Factors on the Success of IS/IT enabled Innovations
Organizations put their maximum efforts in enhancing their performance by identifying
innovative ideas and using knowledge in the best possible manner to compete with their
rivals and this offers satisfaction to the consumers. There are different external factors that
affect the growth of innovations positively or negatively. Some of them are explained below:
Political Factors – Government affects the success of innovation. It performs an important
part in the policies and trade agreements. For example, Wind farming works as the renewable
energy source has been introduced in Australia because the federal and state governments
provision viable living. Similarly, the support of government is very essential for the
development or success of any innovation because it provides funding, subsidy, and
permission to conduct experiments in the country (Arthurfil, 2018).

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Economic Factors – A developing economy is an opportunity for the designers of the new
services because customers in these areas are ready to spend their money and try new as well
as innovative ideas. Similarly, financially secure buyers expect sophistication as well as
quality in their products. Moreover, customers reject the products that will not fulfill their
expectations (Zennouche, Zhang and Bo, 2014).
Legal Factors – The Australian government enacts to protect consumers and workers' rights.
Labeling law is introduced to confirm that consumers are well informed about the product or
service. The industry should be updated about these laws if they want their services gets
successful. The Trade Agreements, the Australian competition and consumer commission,
and the Australian Tax Office are examples of government-led influences on the development
of the product. The Standards Australia for existing and innovative products sets standards
(Australian Consumer Law, 2018). Innovators should ensure that their service or product
meets these standards.
Market Strategies – The marketing strategy of the product (comprised of customer demand,
product promotion, and market size) can influence the success of an innovation. It becomes
very tough to sell the best product if the target audience is unaware of it. In order to become
successful in the market, a product should meet the demand of the customer and satisfy them.
The marketing strategy describes how a company plan to promote its services (Ferrell and
Hartline, 2013). It includes assessing the environment, defining the demand, taking effective
decisions about product supply and organizing attainable goals. The components of
marketing are mostly explained as product, price, place, and promotion. All these
components interrelate with each other in the marketing strategy. In order to be successful, an
innovative product should stand out from its rivals. A worthy innovation will be comprised of
unique selling points.

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Recommendations
The innovative strategy describes the part of innovation and arranges the route for innovation
implementation. However, the role of innovation in supporting businesses attain targets of
growth are frequently indistinct and the growth of revenue from innovation is inadequate
unless coped with great consistency. Therefore, it is very important to consider the points that
help in making a good innovation. Some of the keep points need to be considered by the
organizations to succeed in their efforts to embark on using IS/IT for innovation is:
An innovation must be truly stimulating and must define a necessary future state for the
organization. In order to achieve this, organizations need to aim higher. It has been stated
several times in the literature that the innovation must be derived from the business strategy
to describe how the company looks at opportunities for development and makes clear
selections about the part of innovation, which is completely not wrong. Opportunities and
potentials framed in an innovation must essentially offer input and form the complete
corporate strategy (Koetzier and Schorling, 2013).
An innovation has to be aspiring in relation to offering the basic to break away from the
rivalry, beat the competitors, and make new spaces. The strategies used to push innovation in
the market must aim higher and support the business outperforms anyone else in a
challenging space.
The procedure for developing the innovation has to be open. Open means carrying the outside
in and operating under the conventions that the other billions of people on the planet might
have visions that do not exist inside the precise boundaries of the company.

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Conclusion
Information technology/information system nowadays is vital in confirming the smooth
operations of all the departments in an organization, like the manufacturing department,
human resource department, finance department, and in security related drives. Several
diverse businesses need specific software-packages for satisfying their functional and
operational needs. From the above analysis, it has been identified that every business today is
making use of technology in order to provide advanced services and products to the
customers. Some of the examples of innovations have been provided in the report that shows
the level of advancement within the industry. The above report has reflected various features
of different innovations introduced with the use of IT/IS. Besides this, it has been identified
that there are various factors that affect the success of IS/IT innovations such as internal and
external factors. It has been discussed above the way these factors are affecting the
innovations. In the end, the report has provided the recommendations in order to support
businesses in success in the efforts they make to embark on utilizing IS/IT for innovation.