b. Strategic Uses
Information gives organizations new ways to out-perform their rivals.A firm can use four basic competitive strategies to deal with the competitiveforces1.Product differentiation2.Focused differentiation3.Developing right linkages to customers and suppliers4.Becoming a low-cost productA firm may/can achieve competitive advantage by pursuing one or more of these strategiessimultaneously.
It is here where information helps an organization in gaining a competitive advantage
The new intensity of information makes it possible for more precise development of strategies, planning,forecasting and monitoring.
Information facilitates availability of extensive data, both internal and external, thereby facilitating a morecomprehensive analysis and adding value for/to: (i) Problem Solving (ii) Decision-Making.Information and I.T. help increase/improve an organization's abilities to co-ordinate its activities regionally,nationally and globally. This, in turn, helps unlock/unleash the powers of broader geographical scope to createcompetitive advantage.Information enables organizations to "Think Globally, Act Locally".Information yields strategic opportunities and enables change the rules of the competition very fast, almostovernight, and bestows competitive advantage.Information and I.T. (powerful computers, software and networks) help organizations become more flexible andresponsive; eliminate management layers, separate work from location and restructure work-flows, givingadditional competitive advantage to organizations.Information and I.T. help organizations acquire Strategic Flexibility. Strategic Flexibility is "a set of capabilities firmsuse to respond to various demands and opportunities that are a part of dynamic and uncertain competitive,environment".
MIS and Information Concepts
MIS should provide the information which has a surprise value and which reduces the uncertainty. It shouldsimultaneously build the knowledge base. While designing MIS, due regard should be given to thecommunication theory of transmitting the information from the sources of the destination. MIS should use theredundancy of data and information as a measure to control the error in communication
Information is a quality product for organization
. The quality can be ensured if the inputs to the MIS arecontrolled on the factors of impartiality, validity, reliability, consistency and age. MIS should give regard tothe information used for planning, performance control and knowledge database.Recognizing that the information may be misused if it falls into wrong hands, the MIS design should havethe features of filtering, blocking, suppressions and delay delivery.