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Role of IT in digital transformation
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In the business world today, technology is becoming an essential staple. Every big business relies on it one way or another. More importantly than just technology itself, the use of management information systems is what guides a company in terms of catering to its customers and knowing what moves to make next. Management information systems (MIS) can be defined is the study of people, technology, and organizations (What is MIS?). However, that is a very general definition because there is a lot more that comes out of the use of these MIS systems. The data and information collected is used to improve the company’s operations and to serve the staff, managers and customers of the company the best that they can (What is MIS?). Management information …show more content…
In 1995, Target began offering credit which was known as the Target Guest Card (Target Through the Years). This was a big step for the company in establishing customer loyalty and relations through the use of technology. By 2004, the cards were renamed REDcards and were able to create data portfolios to help Target figure out product demands and create different routes to satisfy their customers even more (Target through the Years). This was a huge step for Target and their use of technology to better their …show more content…
The system Target uses for its website has been very helpful in putting them at an elite spot in resolving customer issues. For example, its MIS system has a way of collecting a customer’s actions on their site as they shop. That way when they run into a problem and call for support, the call center representative will most likely already know and have information readily available to help the customer and resolve their issue (Vijayan). Target began using that system in 2001 as its new CRM (Customer Relationship Management) system. This system is proof of the efficiency MIS brings to the table for large corporations like Target. To build this new CRM system, they had to merge 20 different databases into one multiterabyte repository with 50 million unique customer records, and used enterprise application integration tools, messaging middleware, rules engines and Java application server technology to integrate applications and transport data between various applications and the database
For example credit card transactions and security breaches have occurred which have cost the company million of dollars. Target Corporation must do a better job of securing its data to prevent future loss in profit, sales, and stock values.
Target has 1,799 stores, and its annual revenue was more than $71 billion in 2014. Considering that Target operates only in the United States, the company’s total income does not seem too low. Like Walmart, Target is open to all customers without membership, and its products are similar to Walmart’s products. For example, both companies sell household essentials, pharmaceuticals, personal care items, cleaning and paper products, apparel, accessories, sporting goods, electronics, and food items, along with furniture and other products. Instead of offering membership discounts, Target offers REDcard debit and credit cards, which provide consumers with a 5% discount on purchases. Since Target utilizes e-commerce for sales of its goods, delivering products worldwide can be highly beneficial for the company’s
Saunders, C. S., & Pearlson, K. E. (2009). Managing and Using Information Systems. John Wiley&Sons, Incorporated.
Founded in 1962 by George Dayton of the Dayton Corporation, the first store was opened in Roseville, Minnesota, and served as the prototype for all Target stores opened since then and changed how consumers thought about discount shopping.1 Each store was designed with the customer in mind; the founders of Target realized that the appeal of clean, organized, and well-designed stores would set them apart from all others in the industry. In every store, related departments are conveniently placed next to each other. In 2000 the company was renamed the Target Corporation and now has over 1300 stores in 47 states, including more than 140 SuperTarget stores, as well as a consumer-friendly website. Many stores now have a pharmacy and Club Wedd and Target Baby gift registries. SuperTarget stores even have a separate side devoted to groceries. The corporation also offers the Target Visa Credit Card and the Target REDcard, which is a credit card that can only be used in Target stores or through the website.
A management information system (MIS) is an information collection and analysis system that facilitates access to program and participant information."(mays.tamu.edu, 2013) This system is usually computerized. Businesses use MIS at all levels of operation to collect, process and store data. Management uses this data in the form of information needed to carry out the daily operations of the business. Everyone who works in business, from someone who pays the bills to the person who makes employment decisions, uses MIS. In fact, many (if not most) companies concentrate on the alignment of MIS with business goals to achieve competitive advantage over other companies. "The major components of the MIS are the database, the model base, and the user interface. The database is used to store important data, the model base has the required statistical models in order to analyze the large amounts of data, and the user interface allows the user of the software to navigate through it and use it with ease."(mays.tamu.edu, 2013)
Target Corporation has indicated a significant increase in the number of years it has been operational. The company experienced important changes in growth when it transformed from a regional store to a national retailer.
Target allowing a third part to use sales data and consumer information, gives them the opportunity to create a strong marketing strategy and increase revenue at a minimum cost. While Global consumer marketing and consulting firm could create a long term relationship with Target Corporation if this partnership yielded positive results. Furthermore, showing other high level organizations to see the impact they have on Target Corporation and see a need for that same plan for themselves creating revenue growth thought positive credibility and results. However, the use of consumer personal information from consumer view, could lead to identity theft, breach of privacy and other security concerns. Possible causing consumers to shift their loyalty and business elsewhere. In conclusion shareholders and other partners to Target could suffer a loss in profit and reputation due to the tainted view in consumers, especially with not holding their promise not to sell or share personal data, the loss of consumers becomes a high risk (Hooker J, 2008).
Target has been involved and engaging with customers on social media platforms such as twitter, facebook and linkedin totaling for a social audience of 138,441,927 as of May 19, 2014 according to Lucy Hitz publication of simply measured. Target is allowing Customers to see promotions voice concerns and experiences and get a better view on the organization standing in current debates or news. For example, gay rights, national disasters, public concerns. Furthermore, Target has been actively since early 2012 innovating the mobile application market to create a platform for customers to save money with the cartwheel application on mobile devices, the target app which enables customers to shop online, view ads and plan shopping ventures. Targets approach to the social media market is the difference that separates them from their competitors such as Walmart, Sears and other major retail chains. In financial terms, Targets social media has provided mass sales growths throughout the years. For example in 2015 Target aired a black friday ad that was seen almost 3 million times and generated over 7 thousand comments and 820 shares. Furthermore that season Target 3.14 percent of customer traffic with Target was generated from the social media network ads with a 34 percent sales
Ackoff identifies five assumptions commonly made by designers of management information systems (MIS). With these assumptions, Ackoff argues that these assumptions are in most cases not justified cases, and often lead to major deficiencies in the resulting systems, i.e. "Management Misinformation Systems." To overcome these assumptions and the deficiencies which result from them, Ackoff recommends that management information system should be imbedded in a management control system.
“Target Provides a Surprise” is mostly about the consumer’s shopping habits. Every time you go shopping at the store, the retailers will ask you to share intimate details about your buying’s habits. Afterward, the retailers will analyze and collect your personal information to figure out things you like, need, advertise and provide incentive to you. Target is one of the stores like that; it sells everything because Target wants to satisfy its customers. It is tough to change customers’ shopping habit, but a person’s life will be changed in the period of time.
The last decade can be marked as a period of significant changes in the business world. Being accustomed to utilize computers as a powerful tool with its office applications such as Microsoft Word and Excel. In the 1990s office workers first faced the opportunity to share information using the Internet (McNurlin, 2009). However, the situation became even more different with the transition to the third millennium. With a further development of information technologies, the majority of big enterprises had to reconstitute their business processes and to make the transition to the Internet economy. Enterprise resource planning (ERP), supply-chain management (SCM), customer relationship management (CRM) software and the variety of other information systems became essential components of the new economy. It can be expected, that all these complex solutions were designed to bring great benefits for different sides of the corporate activity, in particular, decisions made by top-managers are expected to become nearer to the ideal, customer service is to be improved and collaboration more prolific. Nevertheless, to ensure the desired results it should be taken into account that the key concept of these reorganizations is an information or a data, dealing with which can be a serious issue, and wide utilizing of the data warehouses in contemporary organizations confirms this fact.
Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows:
Today’s CRM systems are vast multi-functional systems that allow firms to manage multiple elements of relationships with their customers. Xu et al. (2002) offer the four characteristics of CRM as:
Databases and tracking tools give companies the ability to know the finer details in order to foster that relationship and allow customer service agents to provide that intimate service to a customer even when they have never spoken before. Customers have come to expect this level of focused customer service and depend upon the investment they have made in the company by establishing an interactive relationship with
Laudon C. & J. Laudon (2003: 5th edition) Essentials of Management Information Systems. London: Prentice Hall International Limited