Abstract
With ever changing economic environment digital information systems is vital for the survivability and growth of the business. Contemporary businesses not only derive enhanced information from the digital information system but also new opportunities for information sharing, joint utilization and the creation of knowledge. Therefore, the implementation of digital information is not just sufficient but necessary for the development and growth of the firm in the modern market place.
Thus, this report will provide a critical analysis of Riley’s website. This critical analysis will be based on how the company manages its digital information system, the business model adopted by the company including the online value proposition together with the online revenue model as well as the company website customer relationship management.
The analysis foundation frameworks stated are related to the company online business management. In fact, the analysis will provide vital information for the development of the company digital business. Further, the recommendations that will be provided after the analysis will be highly essential for the development of the company digital businesses.
Introduction
Riley is a digital online game and entertainment company based in the UK. All business processes of the company are digitally conducted (Riley, 2012). This distinguishes the company from all other forms of online business. It also means that digital business management that the company adopts is of great importance in developing its business processes. The company offers different categories of products to individual consumers online.
Analyzing the digital management of the company website will provide a greater insight on how digital business strategies have contributed to the growth of its market share, development and increased profitability.
Further, the analysis of the company website will provide more information on the company adoption and implementation of the information systems that have enabled the integration of internal and external factors. Moreover, critical evaluation of the company website will provide more insight on how companies apply digital business management strategies to create relationships with both the internal and external environment for the development and growth of the company.
Background information
The company website provides the space through which all business activities take place. It forms the company business center where all transactions, marketing as well as operational activities are carried out. Though the business seems to be physically located, the integration of digital information systems provides a virtual location that is accessible and convenient to all its clients.
Like many of the digital type of businesses, the company has applied the information systems to set up a digital business through the use of its website (Riley, 2012). Moreover, the digital information systems have been applied in the development of the internet marketing as well as other business operations.
Statistics indicate that those companies that have applied digital information systems to develop their businesses have greater increase in their market share (Miniwatts Marketing Group, 2011). This reason is that digital businesses use their websites to increase accessibility and convenience to their clients. In addition, information systems increase efficiency as well as reducing cost of the operations. Developing these competencies provides an added advantage to these businesses (Latham & Sassen 2005, p.123).
Through the use of the website, the company derives many benefits ranging from increased market share to increased profit margins. As the number of internet users continues to rise and those being targeted by the products continue to spend most of their time in the internet, digital companies such as Riley will continue to remain competitive and achieve most of their corporate goals. Websites is one of the information systems that digital companies apply to attain the corporate goals and strategies (Latham & Sassen 2005, p.123).
In most cases, companies use digital information systems to achieve objectives that include improved efficiency, increased productivity and increased profits. In addition, digital information systems are used by the companies to develop and introduce new products and services as well as new business models (Oz 2008, p.154).
Digital information systems are also used to provide information to the stakeholders including suppliers, and clients. Moreover, digital information systems enhance decision making processes by the company managers. Most importantly, digital information systems enhance the company competitive advantage through the delivery of improved performance (Oz 2008, p.154 ).
The implementation of digital information systems
Digital information systems have been described as the electronic systems that put together both the software and hardware to facilitate communications as well as joint work processes within the organizations (Cortada, 2009). The digital information systems take into account both the internal processes as well as the external environmental factors.
Inputs, processes and output forms three most important activities that must be achieved in order to complete the implementation of the digital information systems (Bernstein & Newcomer 2009, p.201). In other words, the system must take in the raw data both from the internal or external environment.
The raw data are then processed or converted into useful form which is then transmitted to the people as a final product that can be consumed. This will form the basis through which the Riley website will be analyzed or how the company has been implementing its digital information system to attain its business strategies.
The processing stage involves various systems that must be integrated in order to achieve the required output. These include transactional processing systems, management information systems and decision support systems.
The transactional processing systems (TPS)
Businesses use the transactional information system in order to collect, modify, store and retrieve the business transactions (Bernstein & Newcomer 2009, p.234). When the company clients visit the website and play, the information of the client is collected and stored. In fact, clients are required to register with the company and chose the type of game they would like to participate in. during the registration, the customers live their personal details which will be stored within the website.
The personal identification is also left to recognize the customer anytime they visit the website. The personal identification is normally used by the firm to communicate to the client and assign games as per the customer requirement. In other words, the customer’s accounts are held by the company. Any time the customer visits the website they must identify themselves to be permitted to participate as members of the game clubs.
Keeping personal details of the client are beneficial both to the customer and the company. The company maintain these types of customers where as the customers get reduced cost of the services offered by the firm. The firm increases its profits through the maintenance of the customers while the customers get full satisfaction of the company products.
According to Bernstein & Newcomer 2009, TPS are normally used by the company to increase the efficiency and avoid failure thereby increasing the consumer trust. Moreover, TPS increases the flexibility of the business. Consumers can transact with the company at any time and in any place with the instant response.
Management information systems (MIS)
MIS is one of the digital information systems that increase the company’s efficiency and effectiveness (Oz, 2008). Riley uses the management information systems to process the data from the TPS to produce reports on the current performance of the company.
Since all the business processes are conducted through the website, MIS is majorly used by the company to effectively manage the consumer data. The company uses MIS to control business activities including financial processes, services delivery, marketing and operations (Oz, 2008). MIS as the planning and communication tool forms the central part in all the organizational operation systems.
Decision support systems (DSS)
Decision support systems are used by the company to support its decision making activities (Latham & Sassen, 2005). The DSS are normally computer-based information systems that support planning, operations as well as activities that cannot be predicted.
DSS is used by the company to increase its efficiency by shortening its decision making process as well as offering support information that would be useful in making decisions (Latham & Sassen, 2005). In fact, the website has automated managerial processes that enable customers make their own decisions and choices. For instance, customers are either to be a member of the club or chose what type of game they would like to participate in.
Business model
Business models are used to define how the business generate, convey and provide value (Cortada, 2009). The business model is normally conceived as the business strategy. In the case of digital business, different models are used to attain the organization goals (Cortada, 2009).
Online value propositioning
Riley provides the online products that are beyond the competitors offerings (Riley, 2012). To distinguish it from the competitors, Riley products are of high quality and offered at low prices.
Apart from low prices and product quality, the company has diverse products which the clients can choose from. In fact, the diverse quality product propositioning is ever evolving to meet the customer needs. As an international business model, the company uses websites which is the most convenient way of serving reaching out to the global customers (Chaffey, 2011).
Online revenue model
Riley website provides direct information about its products and services. The continuous participation of the customers on the company online games is the major source of revenue. Though the registrations of the members are free, the website helps the company to save the operation cost especially when it deals with huge data processing. The website can be said to be cost effective to the operations of the company.
The customer relationship management
The Riley website is not only open to the British customers but also to the global market. The main target markets are the growing young internet users whose major aim is to spend their time playing computer games. The Company also targets those who have their leisure time being spent on the internet playing computer games.
All these customers are found all over the world. In fact, the website is convenience to all these customers since it can be accessed at any time and in any place. Moreover, the costs of the products are affordable to the majority of the customers. The website also offers options to the customers who are found in different places around the world with their favorite games.
The company also uses the digital customer relationship management. The digital customer relationship management is aimed at providing full information to the customers, satisfying the customer demands as well as enhancing the customer loyalty (Raab, 2008). These systems have not yet been fully developed by the company website
Riley website is not fully developed. As a young global company, Riley needs to fully develop its website that could cater for the needs of its clients. First, the company needs to develop its website information systems that will provide more information about the company.
This will increase the customer trust and willingness to buy its products. Secondly, the company needs to develop its customer relations management systems that are capable of providing real information concerning the company products. Moreover, the website need to be more interactive, luring and more informative to attract extra customers.
Conclusion
The changing economic environment has led to businesses adopting and implementing digital information systems. Digital information systems have been found to be vital for the survivability and growth of the modern business. The digital information systems take into account both the internal processes as well as the external environmental factors.
Inputs, processes and output form three most important activities that must be achieved to complete the implementation of the digital information systems. The discussion has found that proper implementation of digital information is not just sufficient but necessary for the development and growth of the firm in the modern market place.
References
Bernstein, A & Newcomer, E 2009, Principles of transaction processing, Morgan Kaufmann Publishers, Burlington, Massachusetts.
Chaffey, D 2011, Define “online value proposition OVP”: definition what is? Web.
Cortada, W 2009, How societies embrace information technology, Wiley and Sons Inc. Hoboken, New Jersey.
Latham, R & Sassen, S 2005, Digital formations: IT and new architectures in the global realm. Princeton University Press, Princeton, New Jersey.
Miniwatts Marketing Group:.Internet Usage Statistics 2011. Web.
Oz, E 2008, Management information systems, Cengage Learning, Farmington Hills, MI.
Raab, G 2008, Customer relationship management: A global perspective, Gower Publishing Limited, Croft Road, Aldershot.
Riley: the company history 2012.