Integration of information system affects the business positively in different ways but the most important thing being the fact that it gives a business competitive advantage over its competitors within its market. Toyota car dealership, for instance, has a great threat of substitution in the market due to the number of competitors within its market and a well-integrated information system ensures the dealership maintains its position in the competitive market.
Different business processes supported by the information system provide different advantages and using the porters competitive force it is possible to analyze some of these advantages. On supplier power, the information system has the ability to keep a record of all the suppliers the business buys from. There different products as well as their different prices. The information system is capable of generating well-analyzed data that helps the business to make well-informed choices in relation to the which supplier to buy from this ensure the expense spent by the business is reduced. The process of attaining this information from the information system within a business ensure the decisions made within the business are well informed in relation to the suppliers the business chooses (Stadtler, 2015). Decisions within the business ensure the effective running of the business, and in our case, the right suppliers for the company ensures the company offers quality services to its customers at a fair price hence retaining them
As per the threat of substitution in the potters five force information system ensures every detail in a business product development cycle is well calculated and measured to the precise measure hence threat of substitution from other companies in the market are reduced for instance the Toyota car dealership faces threat of substitution from other car dealerships, but with the information system in place the business manages to remain way ahead of these other dealerships by meeting most of the new features the other dealerships may introduce in the market. This enables the company to face the threat of substitution effectively.
The buyer power is another force that is greatly impacted by the information system integration within the business. The information system keeps the information of its clients, analysis it and delivers algorithms tailor-made for specific customers. This creates a close relationship between the business and the customers by enabling the company to set effective and productive prices for the customers which ensure the retainment of the customers in the competitive market. The threat of new entry also gets affected by the integration of information system within the business. This is through the flow of information within the business (Peppard & Ward, 2016). The information system covers all the information within a market, and the chances or the opportunities that may emerge within the market are detected by the system, and the business is in a position to determine the opportunity and the business is able to capitalize on this. In most cases, the new entry has a reduced threat to the already running business like in our case Toyota dealership. On the competitive force within the porter's force information system enables the company to integrate all its sectors together hence managing to beat the competition from rival companies especially other rival car dealers, for instance, the Tesla car dealership. The information system enables them to capitalize on the weaknesses of their rival companies hence retaining their customers as well as taking the customers from the rival companies.
As seen in the information system and the customer relations the Toyota dealership is able to have a direct connection to the customers where they are able to communicate directly with their customers either by emails or other functionalities within the information system of the business. This ties down the customers to this dealership hence getting an upper hand over their rival companies since through this they manage to establish customer loyalty to their brand.
The supply chain of the organization has been greatly impacted by the integration of the information system within the business. How the business interacts with its sectors greatly impact its position within the market. As seen the suppliers of the business which provide the raw products for the company for instance after a close analysis of the data by the system, it implies that the business decisions on the choice of suppliers is clearly based on the best choices made by the system. After this, the information system has the customer details and needs all analyzed hence the business is able to identify the different needs the customers want. The information system enables the business design features within their products that the customers need. For instance, Toyota dealership is able to identify the car brands within an area the customers want, and they deliver these to the people (Laudon & Laudon, 2016). This ensures that the business delivers to the customers the products they need. This information is generated by the information system integrated with the business and ensures the success of the business. The analysis made by the information system is based on the customers demand and other gathered information then the system analysis this data and provides the business with an analysis of the information required for decisions such as what products to provide the customer with. Information systems have managed to transform Toyota car dealership manage their competitive position in the market.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education India.
Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.
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