Information System Recommendation
Information systems pertains to any people who develops,
uses and managing systems within an organization. Organizations use multiple
information systems to maintain a competitive advantage in their industries,
manage operations, and supply consumers with optimal services and products
(Valacich & Schneider, 2016). Software development and other information
technology roles, marketing, manufacturing, customer service, distribution,
human resources, and research development are a few areas that work with some
type of information systems. Due to an
increasing reliance on the internet, most employees will use information
systems in any role. By analyzing Apple Inc.’s information systems, one
understands the role information systems plays in various business-related and
personal functions to use these systems effectively.
Company Background
Apple
Inc. is a successful technology business-to-consumer and business-to-business
company based in Cupertino, California. Timothy Cook is the CEO of Apple Inc.
which currently has 147,000 employees (Equities Staff, 2021). Apple’s release
of the Macintosh in 1984 transformed personal computer technology (Apple Inc.,
2021a). The Macintosh was a visionary product that helped form Apple’s brand
image as one of innovation. Apple’s products include the iPhone, MacBook, iPad,
iPod, Apple Watch, and Apple TV. The company also offers services like Apple
Music, Apple Care, Apple Pay and the iCloud (Equities Staff, 2021). By 2011,
most of Apple’s revenue came from portable devices (Valacich & Schneider,
2016).
Apple develops the hardware and software for its products
internally. The company integrates its hardware, software, and services to
provide users with a user-friendly experience in which the separate platforms
work seamlessly across devices (Apple Inc., 2021a). The company excels at
customer service providing customers with several available channels of tech
support. Apple users can get assistance and answers for their products online,
by phone, or at the local retail store’s Genius Bar. Apple believes that an
organization “at its best, services the public good, empowers people around the
world, and binds us together as never before (Apple Inc., 2021b, para 8). Many
organizations recognize Apple’s superb customer service a competitive advantage
and try to recreate it. It is through the use of various information systems
that Apple maintains its competitive edge in innovation and customer service.
Distribution Channels
Apple’s products are distributed direct from the company
online, through retail locations, and through third-party sellers. Apple is an
international company as over fifty percent of its revenue is from outside the
United States (Equities Staff, 2015). Apple has a complex supply chain to
manage its large product demand. Samsung Korea manufactures the iPhone’s flash
memory and central processing unit components. LG Korea provide the display
screen. Infineon in Germany creates the chips, Texas Instrument in the U.S.
provides the GPS chips, and the product is assembled in Taiwan by Foxconn.
Organizations within the mobile phone industry use information systems for
inventory control, decision-making, and other systems for efficiency to remain
in the mobile phone industry (Valacich & Schneider, 2016). Apple can use
web-based protocols to invoice or send order information to their suppliers.
Information systems can help Apple track inventory and strategize when certain
parts or products are unavailable from suppliers. This intricate systems allows
Apple to manage costs and maintain an advantage in a fiercely competitive
industry.
Information Systems
Companies use
information systems to benefit consumers and the organization by saving money, increasing
convenience, improving speed and efficiency, or reducing operational and
manufacturing costs. E-commerce is popular especially amidst the current
climate of a global pandemic. One major information system that makes
electronic commerce possible is online payment systems. Since consumers can use
credit and debits cards electronically to pay to products, companies can accept
the payment and ship out the ordered product upon receipt. Online shopping has
been a convenience and a necessity since its beginning.
Another beneficial product during the pandemic is Apple’s
platform for webcasting. Webcasting allows users to distribute and view media
files on various platforms and devices. This service is popular amongst many
media providers, but it is also a valuable tool for educators. Apple’s iTunes U
allows students of several major universities free access to its service.
Presenters can also host live interactive sessions, organizations can use it
for online presentations for shareholder meetings and training events (Valacich
& Schneider, 2016). This technology has been a critical platform during the
global pandemic allowing many companies to continue to operate, employees to
work-from-home, students to keep up with their education, and people to
socialize while isolated.
Social media creates a platform for two-directional
communication with consumers and a place where information true or false
spreads rapidly. Many companies struggle with controlling the way information
is shared across these platforms. The speed at which the internet spreads
negative or misinformation is harmful to organizations and brand image. To
understand how consumers view how consumers view these technological devices
and decide how to market its products to consumers, Apple created their own online
radar that monitors social media for misinformation (Geisler & Fisher,
2018). Monitoring this activity allows Apple to maintain some control over the
spread of information and a deeper understanding of the concerns of its
consumers.
Cloud-Computing, Big Data, and the
Internet of Things
Cloud computing, Big Data, and the internet of things
(IoT) are trending information systems. There are many advantages for organizations
using cloud computing. Data stored on the cloud is easily and quickly available
on-demand to users. This rapid elasticity allows companies to scale its cloud
storage need up and down as needed (Valacich & Schneider, 2016). Consumers
can store photos, music, applications, and other media to an online cloud.
Apple uses its servers to provide storage space to users through the iCloud.
Internet and mobile app users constantly post volumes of
personal data online. Whether an individual willingly signs up for a website
membership, makes a purchase, or conducts a search online, these interactions
leave a trail of personal information that many refer to as Big Data. Companies
can use this collected data to improve consumer brand experiences. According to
research from the McKinsey Global Institute in 2011, Big Data can reduce
product development time by up to fifty percent and eliminate defects prior to
production (Wang, Zhang, & Song, 2020).
The
Internet of Things (IoT) is a term proposed by Kevin Ashton in 1999 during a
presentation to Proctor & Gamble. The term now refers to the billions of
wireless devices that connect and share remotely with other devices via the internet
(Tsourela & Nerantzaki, 2020). IoT devices are designed to provide
efficiency, innovation, and convenience for many consumers and businesses.
These devices make business operations more efficient by providing employees a
way to work-from-home, while companies manage multiple computers remotely. The
data collected allow devices to create a personalized experience for the user.
For example, IoT home security systems allow users to remotely unlock a door or
activate the system remotely. Additionally, a smart fridge can create a grocery
shopping list, send the list to a user’s device, or place an order for a
grocery store (Kang & Kim, 2020).
The
Internet of Things creates new marketing opportunities for businesses. The global Internet of Things market size for IoT analytics
is expected to grow to from 7.4 billion dollars in 2018 to around eighteen
billion dollars by 2022 (Statista, 2021). These IoT devices provide more insights into consumer
behavioral allowing marketers to compile a more complete and accurate consumer
profile. Enhancing customer experience is a competitive advantage. With this
data and incisive analytics, companies can improve consumers shopping
experience by selecting and marketing products and promotions according to
consumer preferences. Apple uses the information collected from
its devices to create innovative products for its consumers. The release of the
iPhone in 2007 has provided Apple with Big Data that the company has used to
improve or design new products. Apple also has the potential to use health
metrics supplied to its devices to improve health measures. Apple and Google
have partnered up to provide COVID-19 contact tracking which is a valuable
public health and safety tool (Apple, 2020). All of these systems support a
competitive advantage by providing Apple the opportunity to create new products
and services, reach niche and new markets, cut costs, and improve customer
service (Kassam, 2021).
Information Technology Recommendation
One way that companies can use IoT to gain a competitive
advantage is geographic market intelligence. These wearable IoT devices and
apps provide precise and detailed geographical data. Paired with demographic
information, companies can use this data for “analysis of the potential market,
segmentation, location of customers, or the identification of the best market
point for the company” (Guarda, Augusto, & Lopes, 2019, p. 2). Geomarketing
increases the chances of a marketing message reaching the intended consumer
(Guarda, Augusto, & Lopes, 2019). A
company that has a better understanding of their target consumers are and their
physical locations can market more efficiently and effectively, will have a
market advantage.
The proposed
IoT device is a mobile or web-based application named “Coupon Me” which is an extension of the Apple iBeacon product that
uses Geomarketing data. iBeacon is an application that uses
Bluetooth Low Energy (BLE) technology to communicate marketing messages to
consumers while shopping. If a product display or retail store is
beacon-enabled, a communication can be sent to the user’s device within 100
meters of the beacon. Anyone connected to the iBeacon network can determine the
consumer’s route throughout a retail store by the triggered beacons (iBeacon
Insider, 2021). The iBeacon also provides information such as the number of
customers in the store and how long each consumer shops (Tsai, et al., 2017).
The iBeacon allows companies to reach consumers with targeted marketing
messages in a new way, while collecting consumer-specific data that help
enhance consumers’ future shopping experiences.
Coupon Me will provide a more in-depth
consumer profile by allowing a consumer to use the application in multiple
stores. Coupon Me allows consumers
data to enhance their shopping experience by finding deals based upon their
preferences and location on the web or physical locations inside a store.
Connected online or instore, the user of the app will receive notifications of
special deals based upon their shopping histories and personal preferences
without much user input. Marketing messages are distributed by beacons that
have pre-programed messages. Marketers can use these devices to specifically
market products on sale to consumers. For example, if a customer is shopping at
Target and often purchases baby food, toys, or a certain brand of coffee, the
store may offer a consumer specific discounts on these products when the
consumer approaches a beacon. Companies spend millions of dollars every year on
in-store promotions in hopes to attract and engage consumers (Hendrickson &
Ailawadi, 2014). The Coupon Me app
can pair the consumer’s location information with the store layout, and alert
users of new products and special discounts while they are in that section.
This digital engagement will improve engagement and increase the purchase these
items by through targeting and personalization.
Potential
Security Threats
The
increasing popularity and availability of the IoT devices and the amount of
personal data collected by these devices, raises concerns with consumers about
the intended use of their data. A greater disclosure of information often increases
the benefits of IoT devices and applications, but with that additional
information comes a greater risk (Kang & Kim, 2020). Apple is already
responsible for its current users’ sensitive data. The primary potential threat
with the Coupon Me app is data
privacy. Consumers want to know that their data is secure and the potential use
by third-parties. In 2014, Hewlitt-Packard reported that 70 percent of IoT
devices were vulnerable to threats like password security and encryption
(O’Brien, 2018). Hacker attempts, software glitches, and incomplete required
software updates are events that could result in a data privacy breach for many
IoT devices. The application’s success depends on the consumers’ adoption of
the service and 47 percent of consumers who are adoption – adverse provide data
privacy as their reason (Mani & Chouk, 2017). The application will need
sufficient security measures in place to protect the data of the companies and
consumers who use the app.
Social, Political, and Diversity
Impacts
One diversity issue that may occur with the Coupon Me app as well as other IoT
devices is using the data collected, demographics, and consumer histories to
make inaccurate or possibly discriminatory assumptions or exclude certain data
because of that same reason. Many companies like Old Navy are embracing socially-accepted
expanded gender constructs by providing consumers with gender neutral products.
The application should avoid data decision-making on outdated concepts.
Socially consumers seek out companies who care about the
environment and the organization’s impact on it. Apple’s response to its large
carbon footprint was to find ways to use renewable resources. Since 2014, all
Apple’s data centers rely on renewable energy sources. The company even moved
some of its centers to locations to areas like Oregon’s high desert because the
climate there is better for controlling server temperatures (Valacich &
Schneider, 2016). While this software application will not require additional
hardware because it works on a device, Apple will need to assure that the
program does not in
Conclusion
Information systems allow companies to operate more
efficiently and effectively which can decrease costs and improve the consumer
experience. Information systems can keep companies relevant in a competitive
industry or create a competitive marketing edge.
By connecting IoT devices with the shopping experience, more insightful data is collected (Tsai, et al., 2017). Like other IoT devices that collect consumer data, the proposed product’s big data has the capability to provide consumers with a unique, tailored experience (Hoffman & Novak, 2018). The Internet of Things devices communicate with each other to make daily activities of its users more efficient and convenient. These IoT devices also allow businesses to streamline their processes, increase efficiency, and ultimately increase revenue. Coupon Me is a tool that will allow Apple to collect more data to continue innovating products for consumers. The application will also improve the user’s shopping experience. Of course an increased collection of data involves more security measures assuring that the sensitive data is safe from potential threats. Data safety is a big concern for any electronic information exchange via various information systems. If these systems are used responsibly and safely, they can benefit consumers and organizations.
References
Apple.
(2020). Apple and Google partner on COVID-19 contact tracing technology.
Apple.com. https://www.apple.com/newsroom/2020/04/apple-and-google-partner-on-covid-19-contact-tracing-technology/
Apple Inc. (2021a). Apple reports first quarter results. Apple.com. https://www.apple.com/newsroom/2021/01/apple-reports-first-quarter-results/
Apple Inc. (2021b). Notice
of 2021 annual meeting of shareholders and proxy statement. Apple.com. https://s2.q4cdn.com/470004039/files/doc_financials/2021/Proxy_Statement_2021.pdf
Equities Staff.
(2021, March 22). Apple Inc. (AAPL) closes 2.83% up on the day for March 22. Equities.com. https://www.equities.com/news/apple-inc-aapl-closes-2-83-up-on-the-day-for-march-22
Giesler, M. & Fischer, E.
(2018). IoT stories: The good, the bad and the freaky. Marketing Intelligence Review,
10 (2), 24-28. https://doi.org/10.2478 /
gfkmir-2018-0014
Guarda,
T., Augusto, M., & Lopes, Isabel. (2019). Geographic market intelligence as
a competitive advantage. 2019 14th
Iberian Conference on Information Systems and Technologies. 1-5. https://ieeexplore-ieee-org.proxy-library.ashford.edu/document/8760856?arnumber=8760856
Hendrickson,
K. & Ailawadi, K. (2014). Six lessons for in-store marketing from six years
of mobile eye-tracking research. Review
of Marketing Research, 11(1).
57-74. https://doi.org/10.1108/S1548-643520140000011002
Hoffman,
D. & Novak, T. (2018). The path of emergent experience in the customer IoT:
From early adoption to radical changes in consumers’ lives. Market Intelligence Review, 10(8), 10-17. https://doi.org/10.2478/gfkmir-2018-0012
iBeacon
Insider. (2021). What is iBeacon? A guide to beacons. http://www.ibeacon.com/what-is-ibeacon-a-guide-to-beacons/
Kang,
H. & Kim, K. (2020). Private information disclosure on the internet of
things: The effects of tailoring, self-expansion, and power usage. Journal of Broadcasting & Electronic
Media, 64(4), 640-660. https://doi.org/10.1080/08838151.2020.1844886
Kassem,
A. (2021, March 9). Week 3 lecture:
Information systems – development approaches [Instructor lecture]. https://ashford.instructure.com/courses/80419/pages/week-4-weekly-lecture
Mani, Z. & Chouk, I. (2017). Journal of Marketing
Management, 33(1), 76-97. https://doi.org?10.1080/0267257X.2016.1245212
O’Brien, H. (2018). The internet of
things: A mosaic. Journal of
Multidisciplinary Research, 10(3),
81-104. https://eds-a-ebscohost-com.proxy-library.ashford.edu/eds/pdfviewer/pdfviewer?vid=20&sid=25db6e38-816f-4754-bb7a-6bd3b76e600c%40sessionmgr4007
Statista
Research Department. (2021, February 5). Global IoT analytics market size from
2018 to 2022. Statista. https://www.statista.com/statistics/830549/worldwide-iot-analytics-market-size/
Tsai, Y., Wang, S., Yan, K., & Chang, C.
(2017). Precise positioning of marketing and behavior intentions of
location-based mobile commerce in the internet of things. Symmetry, 9(8), 139-155. https://doi.org/10.3390/sym9080139
Tsourela, M. & Nerantzaki, D. (2020). An internet
of things (IoT) acceptance model. Assessing consumer’s behavior toward IoT
products and applications. Future
Internet, 12(11), 1-23. https://doi.org/10.3390/fi12110191
Valacich,
J. A., & Schneider, C. (2016). Information
systems today: Managing in the digital world (7th ed.). Upper Saddle River,
NJ: Pearson Prentice Hall
Wang,
Y., Zhang, H., Song, M. (2020). Does big-data-embedded new product development
influence project success? Research
Technology Management, 63(4),
35-42. https://doi.org/10.1080/08956308.2020.1762447
No comments:
Post a Comment