Dell’s Competitive Advantages

Topics: Strategic management, Value chain, Supply chain Pages: 38 (12370 words) Published: December 1, 2013
Information systems and organizations influence one another. Information systems are built by managers to serve the interests of the business firm. At the same time, the organization must be aware of and open to the influences of information systems to benefit from new technologies. The collaboration between information technology and organizations is multifaceted and is predisposed by many arbitrating factors, including the organization’s structure, business processes, politics, culture, surrounding environment, and management decisions. Information systems can revolutionize social and work life in your firm. Without understanding your own business organization, you will not be able to plan new systems successfully or understand existing systems. This report has a detailed discussion about how Management Information System is essential in almost every aspect of a business structure and the role it has to play for the business to be efficient and effective in the corporate jungle that it lies on.  

Management Information System is the study of the association amongst technology, organizations and the people involved. MIS professional’s assists in the process of making these organizations benefit at the utmost amount from their investments.

The diagram above shows the close integration of organizations, management, technology and the prominence of Information Systems at its very core. The system is a framework for organizing digital application for businesses. It gives emphasis to management supervision of all digital information processing in the business. Commonly MIS has all the elements that are engaged in up keeping and providing information that are needed to plan and control decisions. Since historical data of organizational activities are often used in decision-making, the assistance of information system has been much of immense help in saving time and energy of human resources. The main purpose of this system contains files, hardware, software and operations research models and their function is to sub-serve managerial function, assembling and evaluating information methodically on a regular basis. An effective and efficient information systems are a vital component of any organized business association due to the heightened difficulty, level of transformation and intricacy of this era’s corporate environment. But, amongst all these levels of difficulty and transformation, organizations should have some sort of differentiation which makes it unique from others and Competitive Advantage (CA) is the differentiation that we’ll be discussing about in this report.

Competitive Advantage
Competitive advantages provides organizations a dominance over its rivals and ability to create a better value for the organization and its stakeholders. There are two categories of competitive advantage: Comparative and Differential Advantage. Comparative advantage, also known as cost advantage is a firm’s capability to yield a good or a service at a lower its cost compared to its competitors. This helps them to sell their products at a lower price and generate a higher sales margin. Whereas, a differential advantage is formed when the firm’s products/services are different and perceived to be better than their competitor by customers. The role of Information System plays a huge role in pursuing competitive advantage for any organization. Competitive advantage can be achieved through various mediums. The three primary uses of Information Systems are: 1)Providing support to complete task faster, cheaper and with better accuracy or consistency. 2)Providing support to improve day to day operations by creating, acquiring, and transferring knowledge. 3)Providing support that enables firms to gain and sustain competitive advantage over competitors/rivals. Information systems help businesses use synergies, core competencies and network based...

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