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Information Technology Case

Essay by   •  October 26, 2011  •  Essay  •  322 Words (2 Pages)  •  945 Views

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1.0 INTRODUCTION

Information technology is a vital component of all multi-national companies today. The need for information in making decisions in a distributed organization spread across multiple countries and time zones is critical. The degree to which information technology and more importantly how it is applied in organization wide systems impacts not only decision making but also operational efficiency and customer service.

For business, IT is the use of knowledge to make and implement commercial decisions. Efficient organizations require established systems to empower them to make the best possible decisions in the situations they are likely to meet. Therefore, an organizational information system (IS) is a set of interrelated components that gather, control, store and distribute data and information and deliver a corrective reaction to meet organization's objectives or goals (Stair & Reynolds, 2008).

This paper will discuss how two organizations, from the same industry, sought to implement similar strategic information systems with widely varying outcomes. It will examine the factors contributing to the success or failure of the project. It will then compare the two implementations to draw lessons which may be applied to IS projects across industries and platforms.

2.0 INDUSTRY ANALYSIS: CONFECTIONARY/FOOD

An analysis of the industry will be useful in establishing the key forces that drive decision making in the industry.

2.1 Porter's Five Forces Model

Michael Porter's five forces model is used to determine the forces that shape the industry.

The confectionary industry is highly competitive where a few giants such as Nestle, Mars, Hershey and Kraft Cadbury dominate through economies of scale, distribution capability and ability to serve customers in all the necessary confectionary segments. Margins are thin and profit is dependent on volume. Products are not only a luxury good but also highly replaceable (or substitutable) as customer loyalty changes depending on trends or availability. Due to thin margins, the industry is also very exposed to fluctuating commodity prices for key ingredients like sugar and cocoa.

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