Ch2-Q1: How can information itself provide a competitive advantage to an organization? Give two or three examples. For each example, describe its associated risks.
Organization uses information to govern internal processes & procedures, understand the market, deliver fast and make the right decision. The high management increasing awareness about the information and its importance indicate the importance of the information and its advantages. Information now a days are used in almost all organization divisions like finance, logistics, technical, marketing, sales, customer care, human resources etc. The information help the organization respond to the market fast, reduce human mistakes and fraud, reduce process execution cost by automating most of the steps, provides accurate reports to the decision maker and help him to take the right decision. Examples:
1) Product Delivery Process:
An organization has a product that need to be delivered to the customers. The following is the selling and delivery process:
This is a straightforward process where customer buys online, finance checks transaction and make sure payment is made, sales team prepare the shipment and delivery team deliver the shipment to customer. Information play major role in this process in each and every step.
1. Manual work is involved, so human mistake and transaction fraud is possible if there is any gap or weakness in the process. 2. Each step depends on an information system (IS). The availability of the system and integrity of the information is essential here. So the technical team as well as the information owner should make sure about the availability, integrity and confidentiality of the information as well as systems.
2) Customer Support Systems
Customer support function is an essential part of the product life cycle (especially if the organization provides product & services). The product has to be supported after it is sold to customers. The following is...
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