The Importance of Information System Features Applied In Companies

Muda I, Gusnardi G, Ginting NPBR and Putri ND

Published on: 2025-01-02

Abstract

The features of information systems and companies affect each other. The use of information systems is very important in serving the company's operational activities and efficiency in the digital era, which is all technology-based. So far, information systems have had a significant positive impact on companies, such as providing an overview for company managers to be able to make the right business decisions, business process efficiency and increase access to company data information. The success of a company's information system is not only measured by the features used, but must also be adjusted to the needs of business processes, understanding the use of information systems and being active in innovation to change market trends. The application of the right information system features is a strategic step in supporting competitive business processes.

Keywords

Information system features; Business process; Digital era

Introduction

In the midst of rapid change, companies that successfully implement information and communication technology must gain a substantial competitive advantage. By implementing information systems, businesses can keep pace with new developments, improve internal processes, and better serve their customers. This is especially important now when there is an increase in globalization and fierce competition so speed and efficiency are crucial [1]. By processing the knowledge gained from data, businesses can formulate relevant and focused strategies, optimize work performance, and arrive at faster and more accurate decisions. Thus, a deeper understanding of information systems becomes not only a tool for better operational activities, but also for new possibilities in innovation.

In addition, the knowledge gained from the data allows the development of relevant and effective strategies for the company. Correct judgment allows companies to improve their performance and make decisions faster and more accurately. A deep understanding of information systems not only serves as a tool to improve business processes, but also opens up new innovation opportunities. Through the use of value-added information technology, companies create long-term added value and maintain their relevance in the ever-changing business world.

Information systems also play an important role in maintaining a business in today's era. Companies can face modern challenges, such as meeting more innovative needs in terms of goods and services products and providing customers with a better experience by implementing the right information system features [2]. It not only serves to increase customer satisfaction and loyalty, but also improves the company's status in the industry. In an increasingly volatile business environment, where change can come effectively overnight, investing in corporate information systems must continue to change by improving existing information systems. One of the important steps is the improvement of the latest features that can increase user satisfaction. For example, superior digital access, better search systems, or the ability of users to communicate with consumers in a more efficient way. These features not only make it easier to find information but also increase users using the company's services. The development of sustainable information systems is directed to help a company in reaching its goals due to closely connection and response on needs between companies and consumers.

That is why the creation of a viable knowledge system also comes into play in reaching corporate objectives. By acting dynamically and efficiently, the company will be able to respond with speed without compromising regular users or trends in their industry. Proper investments in information technology can increase the competitive ability of a company on the market and improve user experience which translates to lasting value for its business operations.

Literature Review

With rapid growth and development, technology has made information systems an essential part of the business world, especially in the competition for competitive advantage. According to Kertahadi [4], information in a system is presented in such a way that it provides added value for the recipient rather than just presenting data. The importance of information in this context stems primarily from the fact that certain types of data must be present at relevant times to enable strategic decision-making. This achievement will allow the company to better understand the market, customers and internal operations so that it can respond to identified fluctuations with greater efficiency and effectiveness.

Information systems aim to explain procedures in building, starting, and managing business processes. This system allows companies to develop synergies that will improve control and decision-making processes by coordinating all functions and departments within the company. Complete data and analysis of relevant opportunities and threats are used in strategic management. Thanks to the implementation of useful information systems during most of these processes, management decision-making abilities become better, more accurate, significant, or more precise will be improved in performance.

Information systems ensure that information can be collected and absorbed in all types of business activities, which is crucial when an immediate response is required. Technically, information systems have been defined as "a collection of interconnected business applications that people use to work with information and support company activities" by Laudon and Laudon. The proper implementation of information systems based on strategic needs can help companies gain a competitive advantage in the market.

Notwithstanding the litany of benefits IT can offer, a fair number of companies opt not to implement or utilize it. In this case, they make a decision that could have grave consequences on their competitiveness and operational efficiency. For a person to survive in this moving world, need them evolve or die. A business which is not using any adequate information system does repetitive data entry work and in turn loses time and resources. Also, individual teams are not well-connected as there is no proper seamless communication and data sharing present within them which plays an important role in synergy effect and innovation at the workplace.

This is a high stakes if information and data are not communicated in a timely manner. Delays in decision-making and implementation hamper business operations, which should be running smoothly. or instance, obstruct the operations of a company from responding proactively to customer requirements or emerging trends by delaying market intelligence. This sort of delay not only impedes productivity, but it even results in losing some lucrative business opportunities. This means businesses simply cannot remain relevant or, indeed in some cases even competitive at all without investing massively not just in information technology either but rather an investment that is mandatory which must be carried out [5].

Information system implementation has become a wide range of practices that are commonly practiced in many business fields. Manufacturing execution systems or MES in short are the pillars of real-time management and control for production processes so as to minimize downtime and maximize operational efficiency. CRMs where implemented by companies to track the interactions between them and their client so they can follow up with more informed sales or marketing offerings. E-commerce sites rely on information systems to manage their inventory, process payments, and study consumer behavior to do business online. In addition, HRIS helps companies manage employee data, recruitment, career development, and other human resource administration tasks more effectively.

Result and Discussion

Result

The development and implementation of successful information system features is still a very difficult task for some companies to implement. Success is not only measured by efficiency in terms of business operations. However, success can also be measured through the effectiveness of using information system features to help business processes and can help managers make the right business strategy decisions. The processing of information systems is measured through the quality of the systems that a company uses for its business processes. Difficulties in implementing information system features are likely to occur mismanagement, improper implementation, so that this problem causes failures in the performance of the information system and several other challenges.

Here are some of the challenges that occur in implementing information systems:

  • The challenge of a company's business strategy, namely how a company utilizes information systems to be able to compete effectively in the digital era.
  • The challenge of globalization is how a company can understand the needs and trends of the global market that are often changing.
  • The challenge of integration is how companies can integrate old systems with new systems so that operational activities run smoothly.
  • In addition, the following impacts can occur if the information system is not implemented by the company:
  • Business operations are slowing down
  • The exchange of information between the company and internal and external parties becomes inefficient
  • There is a possibility of great risk to management decision-making
  • The company is unable to keep up with the prevailing market trends which results in the company not understanding the needs of consumers
  • Enterprise data security becomes less stringent

Discussion

A company must not only focus on industry analysis but also on the speed of information systems in an all-digital era. In this discussion, we will discuss the bankruptcy of a company that failed to implement the right information system for it, namely Tupperware Company. Tupperware shares have been declining since a few years ago and have lost up to 95% of their market investment over the past three years. The early history of Tupperware was established in 1946 which introduced its plastic products to the world founded by an American inventor and chemist, Earl Silas Tupper when he invented a flexible airtight seal. Tupper previously worked at DuPont Chemical Company, so with his work experience he leveraged his knowledge of plastics to create durable and innovative containers. In 1958 Tupperware's success grew rapidly to the opening of an office in Europe which was its first international office. The development of the business continued until by the 1960s, Tupperware was known by households all over the world. In the 1990s and 2000s, companies faced new challenges starting from the number of new competitors, changes in consumer lifestyles that affected demand and sales aspects. But Tupperware is still trying to adapt to introduce their new products and product innovations to market diversification to China and India. However, after 78 years of operation, Tupperware is now facing serious challenges in the digital era in maintaining its business until it has filed for bankruptcy in court.

      Here are some reasons for Tupperware's bankruptcy:

  1. Decline in product demand

      Tupperware has experienced a decline in demand in recent years which has resulted in a significant low sales rate. This decline occurred after the COVID-19 pandemic hit all corners of the world.

  1. Large debt burden

     Tupperware has a debt of more than US$ 700 million (about 10.85 trillion). So currently Tupperware is negotiating with lenders on how to repay its debt as well as preparing for bankruptcy, launching from Reuters.

  1. Technological competition and innovation that lags behind

      Tupperware has failed to be able to adapt to understand market trends and competition in today's digital era. Tupperware still uses a multi-level marketing business model or MLM (Multi-Level Marketing) so that it loses competition with other companies that are more innovative in introducing their products on social media.

  1. Financial management and reporting issues

     Tupperware is having difficulties or arguably has not been able to report the latest quarterly financial performance at the time of the due date and complete the 2023 annual report. Tupperware stated that they experienced a significant decline in employee performance, resulting in gaps and limited human resources.

      Although Tupperware has tried to survive by introducing products and marketing digitally, it still cannot survive due to a drastic decline in sales and an increasing debt burden. With these traditional business models, Tupperware has also lost its relevance amid the rise of various types of e-commerce and the use of social media. The Tupperware bankruptcy case can be a lesson for other businesses that are developing or just starting to do business. From this case, we know that the application of the right information system features can help the sustainability of business processes in the digital era.

      Here are the strategies that Tupperware can implement, to overcome bankruptcy and failure of information system implementation:

  • Digital product marketing transformation, namely by creating a kiosk on an attractive digital platform and the use of social media so that all people can know about it.
  • Training and resource development, namely by providing training to staff to have information system technology skills and improve the effectiveness of their tasks
  • New product innovation, namely by following market trends and consumer needs and innovating products with more emphasis on environmentally friendly attitudes
  • Market diversification, namely by entering new markets so that it can add new consumers and increase sales. Of course, before market diversification, companies must survey the market first.
  • Reducing operational costs, namely by classifying costs that are not really needed in order to increase efficiency in the use of operational costs so that company funds are not used too much.
  • In addition, an information system feature is needed that Tupperware can apply to overcome this problem. Here are examples of features that can be used:
  • CRM (Customer Relationship Management) or Customer Relationship Management, such as one of the platforms, namely Salesforce. By using this feature, companies can serve consumers quickly and consider digital platforms.
  • E-commerce sites, for example, today such as the Shopee platform, Tokopedia and so on. With the implementation of this e-commerce site, it can make it easier for companies to be able to make efficient transactions to consumers and promote products online, so that it can save the company's operational costs.
  • HRIS (Human Resource Information System) or Human resource information system, such as the Oracle Cloud HCM platform. By using this platform, it can help the employee recruitment process, make it easier for employees to do their work so that they don't have to do it manually anymore and make it easier for companies to analyze data for future business predictions.

Conclusion

The use of information systems is very important in serving the operational activities and efficiency of companies in the digital era, all of which are technology-based. By implementing information systems, businesses can keep pace with new developments, improve internal processes, and better serve their customers. A deep understanding of information systems not only serves as a tool to improve business processes, but also opens up new innovation opportunities. Investments in appropriate information technology will also improve the company's competitive position in the market and improve the user experience, creating long-term added value.

With rapid growth and development, technology has made information systems an essential part of the business world, especially in the competition for competitive advantage. Information systems aim to explain procedures in building, starting, and managing business processes. Thanks to the implementation of useful information systems during most of these processes, providing assistance to management to make better, more accurate, significant, or more precise decisions will be improved. The proper implementation of information systems based on strategic needs can help companies gain a competitive advantage in the market. Lags in market intelligence can hinder a company's ability to respond efficiently to customer needs or emerging trends. This kind of delay not only reduces productivity, but can also lead to the loss of valuable business opportunities. There are many examples of information system implementation that are currently practiced in various business fields. MES or manufacturing execution systems, CRM systems or customer relationship management, e-commerce sites and HRIS help employees with administrative tasks more effectively.

Of the various successful models of information system features, the Delone and Mc Lean models are suitable for application. This model states that the quality of systems and information will affect user satisfaction and use, which in turn will affect the impact of individuals and ultimately impact the organization [3]. The Delone model consists of six variables, namely: System Quality, Information Quality, User, User Satisfaction, Individual Impact, and Organizational Impact.

Success in using information system features is not only measured by efficiency in terms of business operations. However, success is also measured through the effectiveness of using information system features to help business processes and can help managers make the right business strategy decisions. Difficulties in implementing information system features are likely to occur mismanagement, improper implementation, so that this problem causes failures in the performance of the information system and several other challenges. Here are some of the challenges that occur in implementing information systems: corporate business strategy challenges, globalization challenges, and integration challenges. In addition, there are impacts that can occur if the information system is not implemented by the company: business operations become slow, there is a possibility of great risks to management decision-making, and the company cannot keep up with the current market trends resulting in the company not understanding the needs of consumers.

An example of a company that fails to implement the right information system for it is the Tupperware Company. After 78 years of operation, Tupperware is now facing serious challenges in the digital era in maintaining its business until now it has filed for bankruptcy in court. Some of the reasons for Tupperware's bankruptcy occurred: declining product demand, large debt burden, lagging competition and technological innovation, management and financial reporting problems. From this case, we know that the application of the right information system features can help the sustainability of business processes in the digital era. For example, CRM (Customer Relationship Management, E-Commerce Sites, HRIS (Human Resource Information System) or Human Resource Information System and other information systems.

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