Last Updated 10 Mar 2020

What is the Organizational impact of system quality, information quality, and service?

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Introduction

Due to economic recession and instability in the economics worldwide, the corporate sectors thus facing challenges to cope up with the information management. This challenge in information technology and system has created opportunities simultaneously to differentiate the companies and their goals (Bakos and Treacy).

The companies are now turning their almost all activities and executions using the latest information technology and system. The organisations realize the importance of IT in every field and thus predicting that IT will be the backbone of the corporations. Information system and information technology leads the organisations to enhance and improve their functions and efficiency in appropriate and effective manner.

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The article tells about the competitive environment globally and the organisations must concentrate and emphasis their tasks in much effective manner. The reduction in costs and minimum time spend to execute jobs and relative activities are the core objective of using, installing and implementing the latest Information System and Technologies. Customers, nowadays, are very aware of what they really need and demand. The best exercise to meet their demands in the best quality with low cost. There are many software and techniques use to implement on the above said strategy, JIT (Just in Time) is the one in it.

The main reason of the products failure is the inclined in the products life cycle. The failed products needed to have some more features, characteristics and innovation in order to survive that particular product into the market. Through latest Information system techniques, the organisations can innovate and enhance their products creatively. This leads to the long life for the products in the long run.

Nowadays, the concept of supply chain management is arising among the well-known companies. They really focus on this element strategies. Like the relation between suppliers and retailers. The suppliers are the key to success for retailers. The retailers need to have sufficient amount of desired products in their warehouses, stores etc. The suppliers and retailers use value forward software techniques under IT and the suppliers basically handle and look after the inventory of their retailers. Stock take and setting re-order level is the best example of it.

The portfolio investment, for which big/large organisations are looking for, can easily be identified by using IT and IS techniques. Companies can communicate and handle their other businesses easily, efficiently and effectively through IT platforms. Hence, the IS and IT is playing vital roles in every aspect of life and for the organisations as well.

RESEARCH PROBLEMS:

With rapid change in the industrial sector the organizations are following an emerging trend towards the concept of latest technology and system qualities in the business perspective to have a better know how about their customers and especially the major business stakeholders. Consequently companies process a well and good technology contracts with other companies to enhance the consistency and well compatibility of several business entities.

In this research paper author emphasized the problems that organization faces and the linkages among the basic attributes of information system design (IS), system quality, information quality and service quality how all of them have an impact on the organizations.

While conducting research regarding the major focus remains how the IS benfits,as with the passage of time the importance of IS has been enhanced and gradually IS became a provider of services to organizations. There are several problems which were inherent while conducting research like system service problem, individual impact of information system rather than organizational impact, relationship among system attributes and implication of system on profit taking and non profit making organizations.

Measurement of IS effectiveness or organizational impact of information system can be measured through using various models, comprehensively review of past research on IS effectiveness success level of information system depends on the system quality, out put of the system (IS) or the information level, the extent up to which it effects on the satisfaction level of individuals as well as the organizations ,which is the major problem while conducting the research major focus was on individual impact rather than organizational impact [DeLone and McLean 1992].

Impact of System quality and information quality are the basic attributes of information system which relates to the hardware and software quality includes the reliability, responsiveness and users expectations similar to the system quality information quality is also of vital importance not only form individual point of view as well as it has significant impact on organizations.

Variables of IS (Information System) and significance of interrelationship

User Satisfaction

A well integrated system cannot have recognition unless the user is satisfied and information available meets the requirements [Ives and Olsen,1984], feedback of user is also an assessment of the system effectiveness[Igbaria, 1993; Baroudi et al., 1986; Raymond, 1985; Montazami, 1987]

Individual Impact

Individual impact is the phenomena of information effect on behaviour of person directly involved in the transaction (reciepent) having a direct impact on the individual performance level [DeLone and McLean 1992]. Individual impact also have significant importance as the organizational impact have, it gives user better understanding of thinking, decision making and a better scope to perform the job, having a close link with efficient flow of work not at individual level but at organizational level too. Consequently the improvement and proficiency in the user context is the effectiveness of the information system [Rivard and Huff 1984], and return of organizational resources allocated for information system implementation in IT context [Lubbe and Remenyi 1999] .

Organizational Impact

Individual impact of information system leads to organizational impact which is of more importance than the individual impact [Abdallah 1996] level of benefits in return is basic of the system evaluation having a direct relationship among cost, sales and profit [Teo et al. 1987] which are not only the major issues of greater importance in organizations ,elaborates the usage of information system as source of change at organizational level in context of structure, business process include the business process re engenring adopted for system improvement, and a better coordination of network among business entities. [Serafeimidis and Smithson 1999] argues that effective system usage especially at organizational level reduces the level of risk and uncertanaity level leads to the better formulated decision making and enhances the financial contribution to the organization . [Lubbe and Remenyi 1999].

Companies are the formation of various stakeholders’presence of better coordination of executives strengthens the whole organization performance. Positive individual impact of information’s system is significant mentor for employees for performance of day to day tasks. Eventually, the individual importance and better understanding plays role in the organization development because of information system implementation.

RESEARCH CONTRIBUTION:

Many of the researchers discussed earlier the importance of the Information Technologies and its systems. The basic purpose of their contributions was to study different information systems and develop the attributes, characteristics and features of them. Apart from the different researchers who contributed in writing and sharing their views, the most famous model of research contribution in IT and IS field is “The D&M Success Model”. According to them, their main purpose of research was to analyze the previous research and provide better guidance and ways for the future researchers. They discussed more and emphasized over the quality information and quality service outcomes using information techniques and methodologies. The use of systems and its information outcomes (products) have the positive impacts and thus a positive influence over the customers simultaneously.

The D&M model of success regarding information system can be described as a proper process which includes three elements i.e. the input, process and output. The system quality and information quality are the inputs of the process regarding the introductory level of the information system. After introducing it, the individuals use the system and it satisfies the individual as it works in effective way. It means when the individual user satisfies and may be the individual has the authorities to install the information system in the company. In the end, it satisfies the overall organization and thus has a positive impact and outcome.

Source: http://www.dwynnresearch.info/dwwiki/DMISS?show_comments=1

THEORETICLE ARGUMENTS

With the rapid development of information technology, information and information systems increasingly become strategic resources, the role and status of information systems in business and management is increasing important. It has become a competitive weapon for many companies (Knapp & Zupancic, 2007). The organization is a community that all the people and stakeholder aim to achieve the common goal. As (Rainer & Cegielski, 2009) defined that Strategic information system offers a competitive advantage to support organization to successful achieve the objective. There are theoretical basis of the information system in organization.

Value chain

Value chain concept was introduced by Harvard Business School professor Michael Porter in 1985 in the book named “competitive advantage”. He believes that “every business is engaging in various activities such as the design, production, sales, sending and supporting their products (Bititci & Carrie, 1998). All these activities can be used to indicate a value chain.” Value chain is a concept in industrial economics, it refer to certain technical and economic relevance among the various industrial sectors, and based on the specific layout of the logical relationship and temporal relationship to form the chain. According to Porter, the world has step into a new era of rapid development in terms of how information technology is influencing organizational or even industrial value chain (Ward & Peppard, 2002). In the past, each organization has reached great progress through the integration of activities and processes as well as its suppliers and consumer interaction relying on information system, in addition, it via Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). The basic objective of organization is to create more and more value for stakeholders. Organizations are systems with inputs, transformation mechanisms, and output. Effective use of information systems will increase the efficiency and flexibility of organizational management activities. According to Stair, et.al, (2008), the cooperation between organization and information system can be regarded as the most useful approach to unlock the potential of any new or modified system.

Competitive strategy

Michael Porter is widely recognized as the greatest and most influential thinkers in business theory, known as the father of competitive strategy. Five forces can be regarded as the most important external analysis of the micro-environmental analysis, mainly used to analyze the competitive structure of the industry and the relationship between other sectors of the industry (Clarke, 2001). According to Schultheis & Sumner (1998), Porter Five Forces model is presented in the context of industrial civilization, with the information technology and wide application of information systems, business external environment and internal processes have been different, but as the benchmarks of analysis framework, Porter’s five forces model academia is still in use, in order to explain the information system on the impact of competitive advantage, Porter’s five forces still have a strong persuasive. The implication of information system not only just adds value to the organization, it can also help organizations to develop and maintain competitive advantages. Organizations apply information system (IS) in order to provide more “energy” in order to support the achievement of final objective. Enterprise information technology strategies are: cost-led strategy, innovation strategy, quality-led strategy, service-led strategy (Cordeiro, 2009).

RESEARCH METHODS AND ITS APPROPRIATENESS:

Roszak,( 1994) and Shenk,( 1997) as cited in Seam B. (2005) describes the objective to conduct the research by analyzing the organizational statistics in a respective way. According to Seam (2005) collective data helps the organizations to select the methods of research with Information system methods.

The purpose of this research is to developed services within the organization by using information system. Overall the objectives of this research study systematize the management framework with the help of web-based software and consequently by using management techniques and methods for the improvement of quality in respective of organizational impact. In this journal both quantitative and qualitative research methods are applied that gives a major contribution to identify major points in inter-organizational structure which influence on outsourcing of modern activities. Information system quality effectively impact on organization that reduces business cost and helps the management for effective decision making.

Quantitative research methods are used to collect the numerical data and understand the people approach, experience and relation on statistical basis. The purpose of this study concerns with the deeply understanding on human behaviour and making right decisions. Qualitative approach is based on Non-numerical data i.e. conduct survey through magazines, journals, newspapers and interviews. Indeed qualitative approach is used to collect data on numerical basis.

Yin, (1984) as cited in Seam B. (2005), used descriptive and hypothetical practice for the case study. He highlighted the qualitative based research as supplementary theory is in practice instead of statistical data. In this way research can be done in a malleable and an appropriate way.

The information and documentation are considered secondary source for the foundation of the research evidence. And information, opinion, feedback form and interviews are considered as the main and primary source. These sources are used to develop internal power of the organization. Feedback form and interviews are considered healthy in the organization and relationship among staff and administration and this is only possible by the support of information technology in any organization. (Seam B.Eom 2005)

King, et al. (1998) as cited in Seam B. (2005) specify that questionnaires determines face legitimacy with a variety of statements related to organizational impact through indirect impact of system quality. Interview methods are used in an analytical and efficient manner. (Seam B.Eom 2005)

In this case study the effect on organization system quality contributes its information by which it also achieves calculated benefit. Furthermore the research detects the drawbacks due to which organizational structure share its information and other relevant data from one individual to another individual of the company staff. Companies are based and stayed on the basis of knowledge and information of their each and every staff member and work inside and outside of the company through a network. That’s why if a person leaves the organization, the organization has to bear tactical loss and on the other side the organization to whom he joins will earn reasonable and economical advantage. (KHOSROUSPOUR, M.1999)

KEY FINDINGS AND ITS IMPLICATIONS:

The outcome of report shows a lot of conclusions in earlier research on an administrative information system-:

CHANNEL POWER:

Williams(1994)as quoted in Khalid S. soliman & Brain D.Janz (n.d) the channel power as an instrument by which an organization can easily disturb the other organization. There is a strong relation among channel power and using internal information system of a company. (Khalid and Brain,n.d.)

COMPETITION:

Banerjee &Golhar (1994) as mentioned in Khalid S. soliman & Brain D.Janz (n.d) that competition is an element which can affect the acceptance of internal information system for an organization. To avoid the competition of the market the organizations have to improve their IT skills. This competition density has also impact on information system of an organization. Otherwise due to efficient and latest technology of the competitors organization has to bear loss. (Khalid and Brain, n .d.)

COST:

ream Kumar et al.(1994) as quoted in Khalid S. Soliman & Brain D.Janz (n.d) that with the help of electronic communication used in an organization the expenses of out sourcing can be minimize. Scala &Mc Grath, (1995) as mentioned in Khalid S. soliman & Brain D.Janz (n.d) that huge amount of money is needed for the formation of new information system in an organization.

TECHNICAL FACTOR;

1. Reliability and Security:

Levitt &smith (2000) as stated in Khalid S. soliman & Brain D.Janz (n.d) that Network is linked with lot of organizations. Risk occurs when more than one server in an organization becomes old and out-of-date and also when servers are mishandled at the early stages. (Khalid and Brain,n.d.) Security is the basic element of information system. Several organizations create manufacturing detail summary,financial statement and other private information. So it is very easy for hackers and crackers to get the information or to modify or damage the data. It is very essential for an organization while dealing with other companies to use controlling information system for instance secrete pin code, encryption, backup systems etc. (Bocij P.et al., 2003) to avoid mishandling and leakage of any information.

2. Scalability:

According to the corporate culture and new business relationship can be developed or old ones can be change without any hesitation. In absence of effective scalability performance of an organization may decline. Less investment in information system can create an increase in communication or in particular technology. Therefore organization acquires efficient and qualitative production. (Bocij P.et al., 2003)

REFERENCES:

Rainer, R, K & Cegielski, C, G (2009), Introduction to Information Systems: Enabling and Transforming Business, John Wiley and Sons, P45.

Stair, R, M, Reynolds, G & Reynolds, G, W (2008), Fundamentals of Information Systems, Cengage Learning, P48.

Knapp, G & Zupancic, J (2007), Advances in information systems development: new methods and practice for the networked society, P31-46.

Ward, J & Peppard, J (2002), Strategic planning for information systems, John Wiley and Sons, P250-251.

Bititci, U, S & Carrie, A (1998), Strategic management of the manufacturing value chain: proceedings of the International Conference of the Manufacturing Value-Chain, August ?98, Troon, Scotland, UK, Springer, P83.

Clarke, S (2001), Information systems strategic management: an integrated approach, Routledge, P132.

Schultheis, P, A & Sumner, M (1998), Management information systems: the manager’s view, Irwin/McGraw Hill, P93.

Cordeiro, J (2009), Enterprise Information Systems: 11th International Conference, ICEIS 2009, Milan, Italy, May 6-10, 2009, Proceedings, Springer, P92.

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