Concept and Discussion on Value Drive Business , Information Technology, Management Information System(Business Intelligence)

In contemporary business environment, competition has become inevitable. Any business, rather be it in manufacturing or service sector has to face cutthroat competition within and across the firms in an industry. If they lack behind to deliver value and come across the expectation of existing and prospective customers, the company will lag. Any organization rather it is related with the IT or non-IT sector, it must be fast and proactive to make precise decision as it helps to build consumer as well as producer surplus. These could be brought by the effective use of the MIS system.

A perfect apotheosis to share would be Amazon.com, the company which initiated to sell the books online became the richest of the globe vide its ability to create value-driven business model. In the simple layman view, the value could be created in the business through proper utilization and composition of robust business philosophy and agile information technologies, these amalgamation supports the decision maker with more evidenced-based, objective and scientific data.

Once the MIS is installed into the business, it starts with the very basis of data accumulation and storages through transaction processing system. Its example could be cash teller where customers make the payment for their purchases. These are structured and are looked after by operational level managers. These move upwards in the hierarchy where the managers are to perform analytical intelligence and decisions are semi-structured. They perform what-if, sensitivity, optimization, and goal setting analysis, these are also called Decision Support System(DSS). And these output goes to higher strategic management level as an input. These Executive Information System(EIS) along with information from external sources gives executive level enough report to make strategic decisions and action plans.

Data integration process automatically connects information from various department enabling the end user with the holistic view. It creates easy collaboration among the department, increases employee efficiency, and delivers accurate information in the real time. Dutton, (2003) in his article entitled “Enterprise architecture: how to drive business value from IT” has emphasized the importance of IT in creating the value of the business. It has stated three tires of infrastructures, i.e. access infrastructure, process infrastructure, and service infrastructure to drive the business. The MIS helps to effective use and utilization of the raw data by creating meaningful and useful information. For the purpose, effective planning and controlling mechanism, the identification of critical success factor(CSF) and key performance indicator(KPI) help to make business strategies for the competitive and comparative advantages (Baltzan, 2014).

The models and framework helps to get the business mapping and provides the birdseye view of overall business process. These could be As-Is process model; which depicts the current business scenario and then after could be To-Be process scenario; which sketches the business process after the amalgamation of IT, analytical and business intelligence. These helps the manager to use automation (Operational level), streamlining (Business level) and Business process reengineering(strategic level).

Bibliography

Baltzan, P. (2014). Business Driven Information System, 4th Edition. McGrawHill.

Dutton, N. (2003, October ). Enterprise architecture: how to drive business value from IT. Retrieved from www.computerweekly.com: http://www.computerweekly.com/feature/Enterprise-architecture-how-to-drive-business-value-from-IT