Information Systems in Today’s Global On-Demand Economy

Information systems promote the use of technology to instigate the exchange of
information between businesses and their stakeholders. Notably, this technology allows entities
to gain insights into customer preferences, and improve decision-making. Additionally,
information systems can assist companies to enhance efficiency, reduce costs, and improve
customer service. Consequently, employing information systems in today’s economy enables
businesses to become more competitive, and agile. Despite the numerous organizational
challenges, incorporating information systems such as the Internet of Things (IoT) and Artificial
Intelligence (AI) instigate organizations to significantly increase efficiency.

Internet of Things (IoT)

The Internet of Things (IoT) allows organizations to increase efficiency in operations by
collecting and exchanging data through a concise network. According to Kumar et al., (2019),
IoT has been providing game-changing solutions for factory digitalization, and logistics and
supply chain optimization and management. Notably, the Internet of Things (IoT) will provide
my organization with numerous benefits that include cost reduction, and positive data-driven
decisions. Incorporating the respective systems will allow my institutions to automate processes,
analyze data, and comprehend customers’ behavior. This instigates more efficient operations,
greater customer satisfaction, and improved decision-making. In essence, IoT will enable my
company to attain a wealth of data that can be used to gain insight into customer preferences, and
identify areas for improvement. Additionally, gaining such information allows for the
development of new products and services. Finally, IoT will increase my institution’s security
setup by allowing the company to monitor its physical assets and track workers’ movements.
Strengths, Weaknesses and Cost-considerations of Internet of Things

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The Internet of Things (IoT) constitutes various impactful strengths, weaknesses and
cost-considerations. For instance, IoT devices can collect and transmit data in real-time. This
way, an organization can be able to attain vital up-to-date information on how their products or
services are being used. Additionally, the Internet of Things aid organizations in significantly
reducing costs and improving decision-making. This is instigated by automating processes and
providing institutions with more accurate and timely data. Despite the Internet of Thing’s impact,
there are several weaknesses associated with the solution. Essentially, IoT devices can be
vulnerable to cyber-attacks that can compromise sensitive information and cause disruptions to
operations. Moreover, the ability of the Internet of Things devices to collect large amounts of
private data is a security concern. Consequently, the cost considerations associated with IoT
devices used to implement the solution can be quite expensive to purchase, set up and maintain.

Artificial Intelligence (AI)

Artificial intelligence is significantly being embraced in organizations to automate and
improve decision-making, automate tasks, and improve customer service. Dash et al., (2019)
note that applications of AI have assisted businesses to gain a competitive advantage by
forecasting customer demand to provide them with a better experience. Essentially, incorporating
Artificial Intelligence will facilitate numerous impactful benefits for my company. First, AI can
automate challenging tasks, such as data entry and analysis thus aiding entities to increase
efficiency and reduce costs. Secondly, Artificial Intelligence devices can be used to optimize
logistics, inventory management, and production planning, which can help my company improve
efficiency and reduce costs. Additionally, AI can be employed to analyze data and make
predictions about future events that can significantly assist my company to make better-informed
decisions. Such information will enable my organization to identify new opportunities and

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capitalize on them thus standing out from competitors. Finally, Artificial Intelligence can be used
to oversee personalized marketing that will focus on the customers’ specific interests. This will
be carried out by analyzing consumer data and preferences.
How Artificial Intelligence can Provide a Competitive Advantage, Influence Strategy,
Affect Organizational Performance, and Increase Operational Efficiency.
Artificial intelligence provides a competitive advantage that allows companies to analyze
huge amounts of data and make predictions. This enables them to make better decisions, and
improve the quality and delivery of their products and services. In addition, AI can significantly
affect organizational performance by enhancing efficiency and productivity. For example, a
company that uses AI to optimize its supply chain can improve its operational productivity and
reduce costs. Consequently, AI devices can assist organizations to improve their customer
relations and engagement. This will be implemented by promoting personalized and timely
responses to the consumers’ questions and providing them with the information needed to make
better decisions. Overall, Artificial Intelligence (AI) efficiency demonstrates the potential that it
has in transforming the way organizations operate and compete in the marketplace.

Conclusion

Despite the numerous organizational challenges, incorporating information systems such
as the Internet of Things (IoT) and Artificial Intelligence (AI) instigate organizations to
significantly increase efficiency. Information systems promote the use of technology to instigate
the exchange of information between businesses and their stakeholders. Notably, this technology
allows entities to instigate processes, gain insights into customer preferences, and improve
decision-making. All in all, impactful information systems such as the Internet of Things (IoT)

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and Artificial Intelligence (AI) aid organizations to counter challenges, and improve customer
service thereby promoting efficiency in operation.