You are on page 1of 13

Apple 1

Writer’s Choice

Your Name

Course Information
Professor’s Name
University Affiliation
Assignment Due Date
Apple 2

The administration, structure, and implementation of an organization's technology are crucial to

its performance. While information systems are essential to the administration and organization

of company activities, they also have the potential to present significant management challenges

if not handled with care. 

IT Management Challenges Apple Faced

Breach of Data Security

Apple's management often ran into issues with its IT systems due to problems like unsecured

data. Apple is a technology business that processes massive quantities of data, including sensitive

information like clients' names, addresses, and credit card numbers. Loss of customer confidence

and harm to a company's image are inevitable results of any lapse in data protection. One

hundred or more famous people had their pictures leaked after an Apple data hack in 2014.

Apple's credibility hit, and the company's information security flaws got out in the open thanks

to this hack.

Issues with Integration

Apple also needed help in administration due to merging issues with its information tools.

Apple's information systems comprise numerous interdependent programs and infrastructures

that must function harmoniously for the company's daily processes to succeed. However, if these

systems are not properly integrated, it can cause delays and halts operations. Case in point: when

Apple first released the iPhone in 2007, it had trouble integrating it with its preexisting iTunes

and Mac OS systems, leading to errors in the business.

Flaws in the System

The occasional technical failures exacerbated the usual managerial issues Apple faced with IT.

System outages slowed company operations, and unhappy customers are all possible outcomes
Apple 3

of technical difficulties. For instance, in 2019, Apple's FaceTime feature was impacted by a

technological malfunction, which prompted users' private worries and discontent.

Ineffective Computer and Network Systems

Apple's management also needed help with practical communication tools. Delays in operations,

decreased output, and higher expenses are all possible outcomes of information systems not

operating at peak efficiency. For instance, Apple's new product releases were frequently delayed

because of inefficiencies in the company's supply chain management system.

The Issues' causes can be traced to Management, Structure, and Technology.

Disconnect in terms of communication and teamwork.

Not enough people were talking to each other and working together, which contributed to the

managerial issues with Apple's IT infrastructure. Apple's inability to properly combine its

various information systems and apps led to delays in operations and inconsistent data across the

company. Integration and technological problems arose because Apple's management needed to

encourage cooperation and dialogue among the various divisions.

Insufficient information technology governance

The absence of IT control is another cause of Apple's information system administration issues.

By "IT governance," we mean the systems and procedures put in place to guarantee that IT

supports organizational aims. Poor information system performance, security lapses, and merger

problems resulted from Apple's management's failure to adopt effective IT control structures and

processes.

Expansion at a Breakneck Pace

Apple's information system administration issues can also be traced back to the company's rapid

expansion. Apple's fast expansion caused a rise in the intricacy of the company's data
Apple 4

infrastructure. There were errors in operations and technological hiccups because the current

information systems and apps needed to be built to deal with the scope and intricacy of the

business operations.

Extreme Dependence on Outsourcing

One cause of Apple's IT administration issues was its dependence on third-party service

providers. As a result of its heavy reliance on outsourcing, Apple lost authority over the creation

and upkeep of its information systems. As a result of outsourcing, it became more difficult to

coordinate between various suppliers because they all used different software and hardware.

Information systems are crucial in controlling and arranging company activities, but they can

also present significant management problems if not correctly handled. Data security leaks,

merging difficulties, technological errors, and ineffective information systems are just some

issues Apple faces due to poor administration. Communication and cooperation issues, poor IT

control, fast expansion, and excessive dependence on outsourcing are all contributing factors.

Apple's upper management must handle these concerns to maintain reliable and safe control of

the company's data infrastructure. These managerial issues can be resolved, and Apple can

continue to pioneer the technology industry if it invests in adaptable and safe information

systems, encourages open lines of communication, and fosters a culture of cooperation (Pearlson,

Saunders and Galletta, 2016).

Information tools are critical to the growth of any business, and Apple is no exception. Apple is

well-known for its pioneering spirit in the tech industry; its success can be attributed mainly to

its innovative and creative use of information systems.


Apple 5

Elements of Apple's Information Systems Strategy

Vision and innovative concepts

Apple's information systems approach places a premium on originality and invention. Apple is

well-known for its cutting-edge innovations, such as the iPhone, iPad, and MacBook. Apple has

been compelling because its goods are advanced electronically, beautiful, and straightforward.

The company's innovative ethos drives Apple's approach to information technology. The

business places a high priority on R&D, with efforts directed at developing brand-new goods and

enhancing the quality of current ones. Apple's IT infrastructure provides the means for fostering

an atmosphere of creativity. For instance, Apple's CAD and 3D modeling software helps creators

rapidly prototype and iterate on new product ideas.

Consolidation and Effectiveness

Integration and efficacy are also central to Apple's approach to its information networks.

Information tools at Apple are built to be fully integrated, facilitating quick and easy contact and

exchange of information between different teams. Apple's productivity and profitability have

both grown due to this merger. For instance, Apple's Enterprise Resource Planning (ERP) system

streamlines and improves productivity across various company operations, including accounting,

purchasing, and human resources. Because of the ERP system, Apple can now make choices

based on hard facts rather than guesswork.

Confidentiality and security

Apple places a premium on protecting user data and ensuring personal anonymity in its IT

infrastructure. Apple has taken severe precautions to secure its users' information. Biometric

identification systems like Touch and Face ID have been introduced to safeguard sensitive client

information. App Tracking Transparency is just one example of Apple's stringent privacy
Apple 6

policies, which offer users a say in how third-party applications use their data. Apple's dedication

to keeping user data safe and private has earned the company devoted consumers.

Mutual Assistance and Cooperation

Apple's information systems approach also heavily emphasizes collaboration and cooperation.

The firm has collaborated with other technology firms to provide cutting-edge products and

services. For instance, Apple and IBM have collaborated to create ERP system-compatible

business smartphone apps. Due to working together, Apple now has better data to make business

decisions.

Apple has partnered with brands like Nike and Hermès to produce exclusive goods with broader

appeal. Apple's product line and global presence have both benefited from these collaborations.

Customer-Centricity

Finally, Apple's information systems approach prioritizes putting customers first. Apple's

information systems are built to facilitate the company's ethos of placing the consumer first.

Apple's CRM system, for instance, records consumer encounters and helps the business learn

more about its clients' wants and requirements.

Apple's success in creating a devoted client group is primarily attributed to its focus on its

customers. Apple has been able to keep its lead in the tech sector by consistently delivering

innovative goods and services that are well-received by its target market.

In summation, Apple's approach to its information systems is driven by a focus on innovation,

integration, productivity, security, privacy, cooperation, partnership, and the consumer. A key

component in the company's success has been its use of information systems, which have

enabled the development of ground-breaking new goods, streamlining operational procedures,

and preserving a dedicated client base. Apple has retained its position as a market leader in the
Apple 7

technology industry by prioritizing R&D spending, adopting effective and integrated systems,

protecting customer data, working with strategic partners, and placing the needs of its customers

first.

Future plans for Apple's information systems will likely emphasize invention and cooperation,

product diversification, and market expansion. Apple will need to adjust its information systems

approach to stay at the top of the industry as technology advances. However, if they keep putting

the needs of their customers first in terms of speed, security, privacy, and convenience, Apple

will likely remain at the forefront of the tech industry for the foreseeable future (Drnevich and

Croson, 2013).

In today's digital era, the use of information networks is an integral component of any successful

company plan. Apple, a market leader in technology, has adopted several different information

systems to facilitate the company's overall business goals. This paper will examine the impact of

Apple's recent investments in customer relationship management (CRM), enterprise resource

planning (ERP), knowledge management system (KMS), supply chain management (SCM), the

transaction processing system (TPS), financial system (FS), and decision support system (DSS).

Customer Relationship Management (CRM) Software:

Apple's customer relationship management system is made to help the business better handle

customer interactions. With this method, Apple can quickly gather and evaluate consumer

information, such as purchases, likes, dislikes, opinions, and suggestions. The data is used to

make Apple's goods and services more appealing to consumers. With the help of Apple's

customer relationship management system, the business can zero in on its most valued clients

and tailor its marketing efforts specifically to them.


Apple 8

Enterprise Resource Planning (ERP) System:

Finance, supply chain management, and human resources are just some business areas that are

brought together by Apple's enterprise resource planning system. The system offers a unified

database from which all relevant data can be retrieved, ensuring that the business consistently

has the most recent and relevant data. Apple's ERP system has increased productivity, decreased

overhead, and bolstered its ability to keep its supply chain running smoothly.

Knowledge Management System (KMS):

Apple's KMS was developed to improve the company's information management and

dissemination. This system can record and keep data such as Apple's best practices, lessons

learned, and intellectual property. Everyone in the company can access this data, facilitating

communication and better decisions. Through using KMS, Apple has encouraged a mindset of

constant invention and progress.

Supply Chain Management (SCM) System:

Apple has an SCM to oversee its production, warehousing, and shipping processes. Thanks to

this method, Apple can now keep tabs on stock, check on their vendors' efficiency, and fine-tune

their operations. As a result of implementing an SCM system, Apple has increased supply chain

productivity, decreased expenses, and better adapted to fluctuating consumer demand.

Transaction Processing System (TPS):

Apple's Transaction Processing System (TPS) is built to handle various business processes. The

system's ability to conduct transactions in real-time will help Apple better run its business.

Apple's TPS has improved the company's ability to promptly meet client demands, the speed

with which it meets those demands, and the number of mistakes it makes.
Apple 9

Financial System (FS):

Accounting, planning, and reporting are just some of the financial tasks that FS at Apple was

built to handle. The consolidated financial details from this method will help Apple make better

business choices. Apple's FS has boosted the company's profitability, cut expenses, and made it

easier to handle financial risks.

Decision Support System (DSS):

The DSS at Apple was developed to aid the business in making informed, data-driven, long-term

choices. Data display, mathematical analysis, and forecast modeling are all available within the

framework. Apple's DSS has improved the company's capacity to make decisions, mitigate risk,

and adapt to shifting market circumstances.

How Apple's Business Model Benefits from the Systems:

Apple's new IT infrastructure contributes to the success of the company's overall business plan in

several ways. In the first place, the methods are more cost-effective and productive, which

improves business effectiveness. For instance, the enterprise resource planning (ERP) system

helps Apple simplify its operations and cut down on unnecessary processes by integrating

different company functions. Second, Apple can improve its supply chain administration thanks

to these tools. The SCM software helps the firm keep tabs on stock, enhance transportation, and

watch source efficiency. The company's agility to meet fluctuating client demand and mitigate

supply chain risk are both improved by this. Furthermore, finally, the systems aid Apple in

boosting consumer happiness by allowing for more tailored interactions. The business can gather

and evaluate client data with the help of the CRM system, which will enable it to provide goods

and services tailored to each customer's specific requirements. As a result, the business gains
Apple 10

more regular customers and strengthens its competitive position. A fourth benefit is that the

systems aid Apple in promoting an atmosphere of the invention and constant progress. Through

the KMS, the business can record and disseminate helpful information like best practices and

lessons learned. As a result, workers can pick up new knowledge and techniques from one

another, which can create ground-breaking goods and services. Last but not least, the systems

contribute to Apple's financial success by giving the company access to reliable and timely

financial data. The FS system allows for better expense control and risk mitigation when

managing the business's finances. To help the company reach its long-term financial objectives,

the DSS system gives decision-makers precise and dependable statistics for making educated

strategy choices.

Apple's new customer relationship management (CRM), enterprise resource planning (ERP),

knowledge management (KMS), supply chain management (SCM), transportation planning and

scheduling (TPS), financial planning and analysis (FP&A), and data analysis and decision

support (DSS) systems have contributed to the company's success by boosting operational

efficiency, SCM capabilities, customer satisfaction, innovation, and financial performance.

Apple has a history of investing in cutting-edge information systems to facilitate the execution of

its business strategy and ensure the company remains at the forefront of technological innovation

(Lucas Jr et al., 2013).

The company's new information systems have enhanced several aspects of Apple's processes and

managerial decision-making:

Finance, supply chain management, and human resources are just some business processes

unified by Apple's enterprise resource planning (ERP) system. Integration has helped simplify
Apple 11

operations and get rid of unnecessary steps. Apple can now confidently make choices thanks to a

consolidated database of all relevant data.

The TPS in Apple's IT department can handle transactions in real-time, allowing for better

management of the company's operations. Due to the decreased likelihood of mistakes and

increased processing speed, decisions can be made more quickly and effectively.Apple can now

keep tabs on stock, streamline transportation, and analyze how well each provider is doing

thanks to the company's new SCM system. This has increased the company's responsiveness to

shifts in consumer demand, decreased the overall expense of the supply network, and improved

productivity. Apple's customer relationship management (CRM) system gathers and analyzes

customer data to provide customers with specialized goods and services. This has led to greater

contentment and devotion for the company's clientele, translating into increased profits.

The KMS system at Apple allows workers to record and disseminate information like best

practices and lessons learned. As a result, a culture of invention and constant refinement has

flourished, resulting in cutting-edge new offerings. Making Informed Strategic Decisions Based

on Accurate and Reliable Data: Apple's DSS system equips decision-makers with accurate and

reliable data. Because of this, we now have a better chance of achieving our goals with less

danger.

Apple's new information systems have benefited the company's operations and management

decision-making by providing a unified database, real-time transaction processing, enhanced

supply chain management, more individualized customer experiences, greater knowledge

sharing, and data-driven outcomes. Because of these alterations, Apple has been able to manage

its operations, cut expenses better, and adapt to shifting market circumstances, all of which have

contributed to increased profits.


Apple 12
Apple 13

References:

Drnevich, P.L. and Croson, D.C., 2013. Information technology and business-level strategy:

Toward an integrated theoretical perspective. MIS quarterly, pp.483-509.

Lucas Jr, H., Agarwal, R., Clemons, E.K., El Sawy, O.A. and Weber, B., 2013. Impactful

research on transformational information technology: An opportunity to inform new

audiences. Mis Quarterly, pp.371-382.

Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and using information

systems: A strategic approach. John Wiley & Sons.

You might also like