Introduction
Information technology has become a critical success factor and survival for businesses in the modern world due to tremendous technological developments. As such, large organizations who operate on global networks with no geographical boundaries all require communication systems that are highly efficient to market products, accomplish jobs, and communicate internally and externally. In this context, information management system (IMS) refers to a system which provides the needed information to effectively and efficiently manage organizations, and it involves people, technology, and information as three main resources (Laudon & Laudon, 2016). Johnson, Li, Phan, Singer, and Trinh (2012) defines IMS as a system which retrieves and monitors environment data, captures transactions operations and data of the firm, selects, filters and organizes statistics then presents them to managers as information, and offers managers the ways to generate information desired.
On this background, this paper focus to discuss the IMS of Apple Company. The first part will define Apple Inc. and their IMS and whether IMS gives the competitive advantage over their competitors. The next section will address how Apple’s IMS help coordinate between supply chain partners, monitor orders and levels of inventory, and satisfy customers. Then finally, an explanation managing information is vital to this company than moving products, and then a concluding paragraph.
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Apple’s Inc. and Apple’s IMS
Apple’s Inc. is a multinational corporation in America which markets, designs and manufacture devices for media and communication, music players which are digital and portable and personal computers, vends a wide range of related services, network solutions, software, accessories, and third-party applications and digital content. The products and services of the company include iPhone, Apple Watch, iPad, Apple TV, iPod, Mac, and professional and consumer application portfolios among others. The company’s vision is “To make a contribution to the world by making tools for the mind that advance humankind” (United States Securities and Exchange Commission, 2016), and its primary is to be the innovative leader. As such, information technology and systems have become an essential part of the company to enable them to achieve the vision and objectives, and thus, this is reflected in the way the company manages its internal communication which showcases their superiority (United States Securities and Exchange Commission, 2016).
The company’s IMS consist of an intranet which offers the needed platform for undertaking IMS and enables the workers of the company to access all the data required from the comfort of the workers’ desktop. Apple also has an extranet that allows it to interact with the key developers and suppliers and allows the organization to construct a seemingly unlimited value chain in the information domain through virtual link creation between the production units and the suppliers, which are then connected to retail stores. Then, retail stores information is conveyed to the customer service department which already has other information access concerning the production and supplier details. Thus, a huge amount of information exists to assist the company to provide services as fast as possible (Johnson, Li, Phan, Singer, & Trinh, 2012).
Yes, the IMS provides the company with a competitive advantage because it is through IMS that the company can identify its distinctive features that they use to compete with other companies in the market. Through virtualization, IMS enables Apple Inc. to innovate new and unique features which they incorporate into their products and services, and also allows them to deliver their product at the click of a computer.
Apple Inc. uses IMS to coordinate between supply chain partners. The company employs the extranet that enables it to interact with developers and suppliers of applications based on Mac, and help create a value chain through the virtual link. The company reduced the suppliers from 100 to 24 to form a competitive ground for tender supplies. Through IMS, the company purchases materials and components from various suppliers, and to save time and money it ships them through the air to its China assembling plant, and from their products are exported to consumers directly through online stores. Other channels of distribution (distribution and retail stores), Apple goods product at their central warehouse in California and transports from that point. Following orders from customers, the company transports and delivers products to clients directly. Apple uses IMS to communicate or interact with their suppliers to ensure delivery of quality supplies through tracking of their movement from the supply point until it reaches the warehouse (Black, 2015).
Apple also uses IMS to help monitor orders and inventory levels, and satisfy customers. It developed an IMS which monitors and track inventory levels at every processing stage and ensure no errors result in inaccuracies in inventory. As such, they use the register in real time to track sales, and this enables to know what to be reordered. Thus, products are produced that fits the consumers’ needs and made available to satisfy the demands of clients. Also, Apple has a system in which clients can state product use challenges thus, making it easy to include enhanced features to guarantee satisfaction of customers (Black, 2015)
Managing information is more important to the company than moving products because information systems affect the company’s business processes since the significant business decisions and management are made based on the information that is availed to the managerial authorities. Therefore, without effective and efficient management of information systems, the supply chain will not work, and this will negatively affect production and hence profitability or growth of the company (Laudon & Laudon, 2016).
Conclusion
It can be observed from the discussion above that IMS segment is highly essential and can give a substantive competitive advantage to a company in the market if efficiently administered as it has done to Apple Company. On the other hand, if not positioned and planned effectively an organization faces the threat of opportunity lose or at times suffer severe losses because of the decisions that are taken without the appropriate availability of information to the managers. Therefore, IMS has a vital role in the general strategic fit of an organization.
References
Black, K. (2015, June 25). Apple: A Global Leader in Supply Chain Management. Social Media for Business Performance . Retrieved May 8, 2018 from http://smbp.uwaterloo.ca/2015/06/apple-a-global-leader-in-supply-chain-management/
Johnson, K., Li, Y., Phan, H., Singer, J., & Trinh, H. (2012). The Innovative Success that is Apple, Inc.
Laudon, K. C., & Laudon, J. P. (2016). Management information system . Pearson Education India.
United States Securities and Exchange Commission (2016). Apple Inc. Form 10-K Annual Report. Retrieved May 8, 2018 from http://files.shareholder.com/downloads/AAPL/0x0x913905/66363059-7FB6-4710-B4A5-7ABFA14CF5E6/10-K_2016_9.24.2016_-_as_filed.pdf
