Discuss about the Opportunities For Strategic Information Systems.
Strategic information systems (SIS) are intended to offer a competitive advantage to an organization. The SIS are information systems created in response to business initiatives for the company. The primary goal of SIS is to design and develop products or services at lower costs, differentiated, tailored for a particular market or is innovative. Firms require minimizing production costs to gain competitive advantage and thus become market leaders in their specific industries (Donaldson, Ishii and Sheppard, 2006). For the purpose of this report, I have chosen Summit Homes Group organization in Australia. Summit Homes group is a homebuilding company with close to 40 years in the industry. Summit Homes Group engages in building houses and renovation of homes. Summit is one of the best working places in Australia as listed in the Best places to work in Australia in 2015. The purpose of this report is to identify the opportunities for strategic information systems of Summit Homes Group.
Summit Homes Group offers a variety of services apart from building and renovation. Summit has consultants who offer advice to interested homeowners. The consultants can help in finding cheaper finance solution for clients, sort out any paperwork associated with purchasing a home, build a home then sell or manage the developed property on behalf of the client. All these services are offered under one roof, and the company can sort all issues involving a property on behalf of the client. From the conception of the idea to own a home the experts at Summit will guide and help a customer from designing the plans for the home to the final product in most cases a built home. Its main business process involves building, renovating, developing or investing. All these objectives are met with a strong team of experts in all the areas.
Summit Homes group has a board of directors that controls and runs all the activities of the company. The board is in charge of making the initial decisions that affect the company. Directly on the board are the general managers for Summit South West and general manager Summit North West. These general managers oversee all the activities of the branches. The general managers have personal secretaries assigned to them. Each of these secretaries plays a critical role in the management of the branches. The general managers answer to the board (Silva and Hirschheim, 2007). After the general managers, we have middle managers like IT manager, a client administrator, design manager, drafting senior manager supervisor. In each branch under each general manager, there is a team of specialists assigned to their professional fields. Information flows from the board downwards to the general managers up to the site supervisors and finally to the lower ranked employees at the construction work sites.
Summit Homes Group has a busy and competitive environment. The government plays a bigger role in this environment. The government through agencies and commissions such as the Australian Building Commission and the Australian Competition and Consumer Commission (ACCC). These commissions develop policies such as the building code in Australia that affect the activities of the Summit Homes Group. Summit Homes Group faces stiff competition from other construction and building related companies like Buckeridge Group of Companies in Western Australia, the Alcock Brown-Neaves Group and Redink Homes Pty Ltd among others. All these companies are ranked as top performers in the Steel Housing 100 report. The Summit homes group has a lot of competition, and thus these factors influence the environment of Summit Homes. In Western Australia, companies face tight housing supply conditions due to the high competition (Liao, 2016).
The main focus of Summit Homes Group is in Summit Homes as its premium brand. The goal is to offer sophisticated and thoughtful double or single story designed buildings the buildings should be perfect for second and even third home buyers. Summit Homes Group business strategy is to build homes, renovate homes, develop and invest while providing multiple quality solutions with excellent client services. To breathe life into its business strategy, Summit is partnering with a lot of companies to develop exceptionally and high-quality products that will change the construction industry and help achieve its set goals and objectives. Summit has built a lot of homes at Westlington at Harrington Waters in Waikiki and Hillstead at Heritage Park. The homes either single or double strategy. The blueprint for Summit Home Group is clear and that it will not be known only as a home builder or renovator but also as a developer or investor in the construction industry.
Some strategic information systems appropriate for Summit Home Group include an executive information system (EIS). The decision-making process in the company seems to be a long one. An EIS provides internal and external information necessary for decision making to achieve the set goals and objectives. EIS provides a manager with detailed up to date information making it easier for managers to verify, compare and discuss the data thus make better decisions easier and faster. Operational information system (OIS) involves Summit Homes interconnecting all its databases. This will make the business more efficient in handling the business. When a customer shifts from the South West to North West, the client will be able to get assistance at the Summit North West offices. Paperwork flow of information will stimulate efficiency and better service delivery for the organization in general. Information is central to a firm’s success.
The primary activity that creates value for the organization’s clients is the customer service offered. Summit Homes group also handles everything from the initial feasibility to financial planning and finance to building, acquiring tenants on your behalf, managing the property and maintenance of the building. Summit Homes Group does all the paper work when requesting for finances to build a home. The company has specialists that negotiate with a lender from start to finish while they keep a client updated on the progress of a loan application. Summit thus offers clients’ services other than its primary goal of building that creates value. Through offering customers such services the company is differentiating itself from its competitors (Weinstein and Barrett, 2007). The services whether during financing or after the home has been built are what sets Summit Homes Group apart from its rivals. If a client were just interested in building a home, the client would go to any other company but the extra services offered will attract the client to Summit Homes.
Summit Homes Group needs to design a system in which a client can be able to track the progress of house being built to add value to the services they offer. Also, a home being renovated, the amount of money spent in completing different stages of the project and also track how the leasing of the houses is done. A comprehensive system that supports all these activities will improve the quality of services offered to a client. From wherever a client may be, he or she should have adequate information concerning a project and needs not to visit the site to get any new developments personally. This way, the organization will be able to attract more clients as information is a critical tool in improving the value chain.
Summit homes face a lot of competition in the market. May building and construction companies have sprung up in Western Australia to be specific. Summit Homes Group competitive strategy is in its capacity to be the ranked best building and construction company to work for in Australia. By being the best company to work for in the construction industry, Summit Homes can create a good image for its company. In business, a good image is important at it attracts a lot of clients and investors. True to the rankings, Summit is revolutionizing the construction industry and its good relations with employees reflect the number of clients and awards they collect (Jay, Schultman and Ofori, 2010). Consumers and employees will always want to be associated with reputable organizations thus Summit will retain and attract top talented employees and on the other hand have loyal customers that keep referring their friends to Summit Homes Group.
To effectively execute the competitive strategy, Summit Homes Group has to acquire the help of information systems. A strategic Human Resource Information System (HRIS) is ideal in helping employees engage more easily with the firm. To create a good corporate image by being the best construction company to work in, Summit has to invest in its employees. Employees are the most important resource in a company (Feng and Wu, 2015). The HRIS will enable employees to have their human resource requirements fulfilled, limit the employee manager confrontations thus improve the rapport of management and employees. The system creates a better work environment thus a good place to work and be highly productive. The system is designed to keep track of skilled labor and thus acquire it when needed during new hires. The HRIS meets the core functionality of an ideal human resource functionality that every organization needs to build a prosperous organization and achieve all its set goals and objectives.
Conclusion
In conclusion, strategic information systems offer organizations a long-term plan to attain a competitive advantage over its competitors. The use of information systems is a must in the dynamic business world of today as without embracing strategic information systems competitors can run an organization out of the market (Jenkins, 2010). An organization needs to critically analyse its internal and external processes to identify where there strengths and weaknesses are. The organization then needs to maximize the strengths, even more, to achieve competitive advantage using strategic information systems.
References
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