An information system can be described as all operations, activities, and resources that are involved in gathering relevant information, using and also distributing them to other users (Boynton, 1993). Good knowledge is gained when proper information systems are put in place within an organization. Proper management of knowledge can contribute to the greater enhancement of dynamic capabilities of any organization (Bushong, 2003). It is therefore very important for organizations especially business organizations to find ways of getting the latest information that can make them improve on their activities. An organization should be able to change its processes and activities with changing environments to remain relevant in the market.
An important aspect that is closely related to information systems is organizational dynamic capabilities. The dynamic capability of an organization can simply be described as the ability of an organization to change its operations and activities to conform to the requirements of a changing environment (Jarvenpaa & Leidner, 1998). Dynamic capabilities of a business firm can make it adopt and fully use new process approaches that can make its products to be more competitive in the market.
It can also make a business firm change or increase the use of certain resources if the use of such resources is going to make the business firm sustain its operations and even make higher profits. All these are only possible within an organization if proper information systems are put in place. Studies have shown that business firms that are in constant search for information about their services and products are likely to have competitive advantages over those that do rely on outdated information systems (King & Tucci, 2002).
A positive move in the current business world is the introduction of modern information technologies. The use of modern information technology (IT) is being adopted by most business organizations as a way of improving their information systems. Modern IT makes the gathering, processing, and distribution of information to be faster than they were over a decade ago (Mendelson, 2000).
For example, business people can now carry out their business transactions faster by sending instant messages to their customers using computers. At the same time, customers can also request goods and services from business individuals or firms just by sending short messages using the internet. Some business documents can also be sent to recipients using the internet and thus modern information systems have made most business transactions to be faster than they were before the improvement of information systems (Boynton, 1993).
Organizations rely on good IT systems to advertise their goods and services. For example, most organizations use website pages to advertise their products. At the same time, customers can use the internet to search for their desired products. Modern information systems have therefore improved the ways of doing business. However, some people may use modern information systems such as the internet to enhance unfavorable competition by posting negative messages about their competitors on the internet. This is a vice that is usually practiced by people who do not believe in fair competition. The vice will soon be controlled easily since advanced software systems are being developed specifically for detecting and deleting such messages (Jarvenpaa & Leidner, 1998).
Generally, organizational dynamic capabilities are enhanced through good information systems. People also make part of information systems and thus people must be flexible to make their organizations dynamic and compete well with their competitors.
Reference List
Boynton, A., (1993). Achieving dynamic stability through information technology. California Management Review, Vol 35 No 2, pp. 58-67.
Bushong, S., (2003). The role of dynamic capabilities in e-business transformation Texas: Mosby, p.282-296.
Jarvenpaa, L. & Leidner, D., (1998). An infomation company in Mexico: Extending the resource-based view of the firm to a developing country context. Information Systems Research, pp. 342-361.
King, A. & Tucci, C., (2002). Incumbent Entry into New Market Niches: The Role of Experience and Managerial Choice in the Creation of Dynamic Capabilities. Manage Sci., 48, 2 (Feb. 2002), p. 171-186.
Mendelson, H., (2000).Organizational Architecture and Success in the Information Technology Industry. Management Science, 46(4) 513-529.