Management Information System Paper on Whether the IPAD a disruptive technology

Management Information System

Which of the 2 definitions of an organization do you prefer? Which one applies to your chosen organization more (behavioral or technical)?

Both definitions of organization are preferred as they both define aspects of organization. For the purposes of this paper, technical definition would be the most suitable and would be the most applicable for the chosen organization, which is National bank of Kuwait. The paper would look at how National bank of Kuwait incorporates various outputs such as technology, labor and capital to come up with the financial products and services for its clients. It also seeks to determine how this technology could be used to enhance competitive advantage.

Is the IPAD a disruptive technology? Explain using bulleted items

Disruptive technology is a term that was coined by Harvard professor Clayton Christensen. The term refers to new technology innovations that completely alter how businesses are run. The technologies can forces businesses to change how they run their operations at it may lead to them being irrelevant or losing a huge market share. Ipad is an example of a disruptive technology as it works better than the old technologies such as tablet and can replace the old ones.

Unlike the simple features of tablets, Ipad comes with complex ones including the 10-inch color display, reliable Wi-Fi connection, ability to use high speed networks and high function ability supported by thousands of applications on the Apple App store. The Ipad technology has been felt greatly by textbook publishers and Amazon. The disruptiveness of Ipad technology is mainly felt in the media and publishing industries, some old technologies such as notebooks and laptops would not really be affected by the technology.

 Media industry players would be forced to spend more money investing on new digital platforms and stop investing in their old methods of delivery in traditional platforms like the newsprint.

Ipad makes it possible for its users to watch live television on the go read their books, magazines and newspapers online and not on print. Publishers had been faced with reduced sales due to many people opting to order their books from online book stores such as the Amazon due to its low prices.

The new technology would enable them to create e-books of their publications and have users read them form Ipad instead of buying them from the Amazon. Amazon would now have to comply with the demands made by publishers that it raisers the prices of books in its store. The arrangements between Apple and the publishers mean that Amazon must change its strategy. Newspapers would also be willing to work with Apple’s product to be able to charge for their contents, which currently are free online earning them nothing.

Explain how Porter’s competitive forces model works for that (National bank of Kuwait) organization

The porter’s model  comprises of five forces, namely; bargaining power of suppliers, bargaining power of customers, intensity of competitive rivalry, threat of substitute services and products, and threats of new entrants. All these forces affect the National bank of Kuwait’s operation and the organization is forced to strategies so that it would remain profitable. The clients of National bank of Kuwait have the power to force Kuwait financial to be innovative in its service delivery and financial products in a way that would be favorable to them. Unless the company complies, it would lose its profit sources.

The national bank has suppliers of machines, technologies and equipment used in the production process of its financial services and products. It also have others who supply normal office inventories, when these suppliers charge high prices or fail to deliver, the company’s operations are affected and business is greatly affected as the profit margins is reduced. As a business venture, it exists to make profit, do that it must have a good working relationship with the suppliers, and negotiate good deals with them.

New entrants into financial industry do not create a huge threat to National bank of Kuwait as it has established itself and has loyal clients. The new entrants would come up with new product but it would not affect the bank if it continues servicing the clients in ways that meet all their needs. It has threat from alternative products and services, as there are other players in the industries offering the same services. These alternative financial services available to clients are a threat to the National bank of Kuwait profitability. The competitive rivalry among major banks and other financial institution is very stiff due to the ever-demanding market and therefore has created a fierce competition. No single producer can sustain the market on its own, but a reluctant player would run into loses

List and describe four competitive strategies enabled by information systems that firms can pursue

The porter’s competitive forces operate that organizations must look for ways in which they would manage these competitive forces. Information technology system offers ways in which organizations would overcome these competition .the four strategies that would be applied by organizations include;

Low-Cost Leadership

Use of information technology enables organization to operate at a lower cost leading to lower prices for its products or services. These technologies could help organization determine market trends and consumer behavior hence only produce what is really needed, when it is needed. The company would achieve lower distribution and inventory costs

Focus On Market Niche

Information system enables organization to fine tune it services to a specific niche hence providing the best services or products. Customer information is used to determine their needs, their profitability and general behavior. This information would be used to provide the clients with services tailored to their needs and regular ones could be rewarded to make them loyal to the business hence locking out competitors.

Product Differentiation

The information collected by the system is used to change the offered products and services to meet the requirements of the customers. The organization can also come with new set of services or products that would best suit the needs of its clients and in that case ensure their satisfaction.

Strengthen Supplier and Customer Intimacy

The system enables the organization to have strong linkage with its clients. This is effective as it increases the switching cost and makes the clients to prefer their current bank. The system is also used to make it easy for the suppliers to the bank have easier time in scheduling their next supplies with the organization and could confirm the specifications with ease.The strong linkage with suppliers is seen by the bank ensuring that its investors are kept updated about the financial position of the bank at all times.

Pick an organization for which one of you work (National bank of Kuwait). Explain how the Porter’s Value Chain Models applies to your organization.

Value chain refers to what an organization system and the associated sub-system do to produce a product or service to the market. The porter’s value chain model looks at the firm as a process that has inputs and outputs. The inputs pass through various levels within the firm before coming out as the valued services or products of the company. In National bank of Kuwait, these inputs are categorized into primary and support:

Primary Inputs

Include inbound logistics; which are the goods that National bank of Kuwait receives from its suppliers into enable it produce financial. These products may include new technologies, office inventories among others.

Operations; these are mainly the raw materials that National bank of Kuwait uses to produce various financial products into the market. There are no tangible raw materials for producing financial products, but the safe-keeping services provided enables the bank to attract money which it then uses to finance its service delivery

Outbound logistics; this refers to the distribution of the end product (financial products) to various client groups.

Marketing and sales; National bank of Kuwait carries out marketing to ensure that financial products and services it provides are relevant to the needs of the needs of its clients. Marketing also enables the bank to determine market trends and areas where it can have competitive advantages of its competitors.

Services; National bank of Kuwait has tailored made services and products made for various groups of clients. Both corporate serviced are well delivered in a manner that makes their clients stay with the bank forever or for a long time.

Support Inputs

Procurement; the company mainly carries out procurement for its production goods like the equipment and machines, and the office inventories.

Technology development; the company recognizes the advantages of having reliable and efficient technology as it promotes competitiveness. The bank uses technology to add value to its products, to carry out research, and to develop its financial products.

Human resource management; human resources must be recruited, trained, developed and motivated in order to help the organization achieve its objectives. The national bank ensures it maintains highly competitive staff to so that it produces highly valued products and services into the market.

Firm infrastructure; the management, finances and legal structures of National bank of Kuwait work effectively and are the driving force behind  the success of the organization