Using information Systems to gain a competitive advantage

We are fortunate to be living in a time where technology is advanced; we are surrounded by laptops, smart phones, Internet, and many other interesting forms of communication. What we usually do not realize is how computers and information technology could help us perform more effectively and productively. We could use our understanding of information to generate business intelligence. With business intelligence we obtain historical, current and predictive views of how the business is operating which equips us with an advantage in the marketplace.

Here are some tips to give your business an advantage in the marketplace.

1. Make it difficult for your customers and suppliers to leave you

Depending on your budget and creative juices, you can offer benefits, discounts, and bargains to your customers and suppliers, making it hard for them to easily switch from you. You could also develop your information systems to offer reduced transaction costs, increased customer support, or fast deliveries, allow your creative side to take over and implement something new.

2. Make it hard for someone to duplicate your product or service.

You can focus your strategies on ensuring that the threat of new entries remains low. This is easier achieved when your product or service is difficult to copy. For example developing a search engine that could compete successfully with Google would be difficult.

3. Cutting costs of products or services

You can use information systems to assist you in lowering your internal or external costs. This will allow you to offer products and services at a lower price than your competitor hence gaining the upper hand. A simple example is how airlines could use information systems strategically to lower costs so that they may offer cheaper rates than their competitors.

4. Create a reliable database

A good database can be used to improve your marketing for your business. With the information collected in the database you can easily spot details such as purchases made by customers, suppliers patterns, price changes e.t.c this information can be used to target a market, assign sales resources, or attract new customers.

Information systems have the power to change your business when utilized, you can affectively save time, cut costs, grow your profit margin and add value to your business. Many businesses operating without a web presence or engage in e commerce will probably find themselves being ousted by their competitors. If you do not implement technology strategies into your business structure you might find yourself losing a lot of money. In this age you need to have a networked presence.