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The implementation of an information system and its consequences for the success of the companies

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  1. Introduction.
  2. Brief overview of the 2 studied companies.
    1. GM: The Colossus with agile feet.
    2. Land Rover: The established giant.
    3. Two convergent approaches.
  3. Information system's effects on the value chain.
    1. Presentation of the concept.
    2. A total review of the supply chain.
    3. Support activities.
    4. Conclusion.
  4. Critical key factors in the success of the information system.
    1. ICT: A partial solution.
    2. Different contexts.
    3. Information leadership.
  5. Conclusion.
  6. Appendix and sources.

Today, we are led to think that every company which wants to stay ?on the run? has to implement an information system. Success stories of online businesses led companies, even those which exist from the 20th century, to develop an e-business approach. By information system we mean an organized system of different resources (soft wares, procedures, data?) which allow to get, process and stock information within and between organizations. What could explain the implementation of an information system for a company? Does it mean necessarily positive fallout? To answer this question, we will analyze one of the older economic sectors: car industry. We will compare 2 companies, General Motors and Land Rover, which have both developed an e-business approach. After a brief description of their background, we will focus on their e-business plan, to try to emphasize the critical key factors of an effective information system.

[...] To enable consistency of vehicles, GM and Land Rover developed both an online sharing system (Covisint for and Computervision for land Rover), which allowed all actors of the Supply Chain to work in the same time on the same prototypes. Online electronic prototypes libraries were created too. For sure, this responded of a need to earn time because the staffs were not, for example, forced to reinvent a wheel (they could take the one of an other vehicle). But it could also mean economies of scale as for purchasing. [...]

[...] As for strategy, ICT aim at linking activities of the Value Chain, and it is the condition of its success. We are led to think that GM failed in that way: the group created different portals for different needs, and linked them later ICT need time to be integrated in the global process, and so Land Rover was true while reviewing the Supply Chain as a whole Different contexts Obviously, the size of the company is not the same for GM and Land Rover. [...]

[...] That's what we are dealing with in the following part Critical key factors in the success of the information system GM and Land Rover had developed the same approach of e-business. The information system was organizational because all members belonging to the group could access it, but also inter organizational, to enable the exchange of information between different organisations. Nevertheless, GM's strategy did not translate representative results, and the American giant went on knowing economical doldrums. On the opposite, Land Rover had always displayed good economical results. [...]

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