QUESTION

Business firms invest heavily in information systems to achieve six strategic business objectives: operational excellence, new products, services, and business models, customer and supplier intimacy, improved decision making, competitive advantage, and survival.

Which of the following is a good example of the relationship between information systems and operational excellence?

ANSWER

In $2019,$ Walmart achieved $$514$ billion in sales in large part because of its Retail Link system, which digitally links its suppliers to every one of Walmart's stores. As soon as a customer purchases an item, the supplier monitoring the item knows to ship a replacement to the shelf.

The Mandarin Oriental hotel in Manhattan keeps track of guests' preferences, such as their preferred room temperature and television programs, in a large data repository. Individual rooms are networked to a central network server computer, so that when a customer arrives, the system automatically changes the room conditions to meet each customer's specifications.

Apple, Inc. transformed an old model of music distribution based on vinyl records, tapes, and CDs into an online, legal distribution model based on its own iPod technology platform.

Verizon Corporation uses a web$-$based digital dashboard to provide managers with precise, real$-$time information on customer complaints, network performance for each locality served, and line outages or storm$-$damaged lines. Using this information, managers can immediately allocate repair resources, inform consumers of repair efforts, and restore service fast.

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