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1. “As well as improving managerial efficiency and effectiveness, information systems (IS) can be used to gain competitive advantage”. Discuss, using examples, and indicate how ONE Australian company could, in your opinion, use IS/IT to achieve competitive advantage in the market in which it operates.

The introduction of a fresh information system (IS) would possibly affect organizational goals, structure, and work design, values among the competitive interest groups, decision making process and the daily behaviors. IS must by shaped by the organization’s structure, business processes, goals, culture, and management, in order to serve the needs of important organizational groups, as well as the usage of internet can save transaction and agency costs in the organization. Revenue growth, profitability or productivity growth can be defined as competitive advantage, as such those people usually has a higher stock market valuation than their competitors in the long run position, they might using special resources or use commonly available resources in an efficient way than other competitor. However, all of the questions that relates to the way to achieve competiive advantages, can be answer by Michael Porter’s competitive forces model.

IS can actually change the operation among the organization without anymore manual handling, replacing complicated steps with tasks, and eliminating delays in decision making, moreover, by conducing a business process analysis, it may help to understand the way that the business’s innovation, achieve greater efficiency and effective and customer server. There are a range of management system can be served by IS in a business as illustrating below. Transaction processing systems [TPS], is to serve operational management in the business, it can track those transaction in the daily routine that are need to be conduct the business, such as order processing and payroll; Management information system [MIS], are designating to serve the

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