Importance of the Involvement of Managers in Implementing Information Systems

Information Systems for Managers
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Information Systems for Managers
Question 1
1a
Willingness to pay (WTP) refers to the maximum amount that a person is willing to give to procure a product or service (Parniangtong, 2017). A luxurious vehicle like a Ferrari will a higher WTP than say a Subaru. Hence, WTP for a Ferrari> WTP for a Subaru. Therefore, for a business selling a Ferrari, it will realize more profits by increasing WTP rather than reducing the price.
1b
Alternatively, instead of increasing the WTP for Ferrari, the business can work towards reducing the supplier opportunity cost (C). This should be done without sacrificing the commensurate WTP (Parniangtong, 2017). In other words, increasing WTP-C ultimately results in more value for the business.
1c
WTP may increase with no added value where the supplier cost is too high. The WTP for a Ferrari may increase, but the business may be getting the vehicle at a higher cost. Hence, despite a high WTP, there will be added value. A firm can only create value by increasing WTP while at the same time keeping the costs lower or maintaining them steady (Parniangtong, 2017).
Question 2
Information systems are supposed to support managers at all levels in an organization. Before implementing information systems in organizations, it is essential to understand what managers do. The management process constitutes of four functions which include planning, organizing, directing and controlling (Schraeder, Self, Jordan & Portis, 2014). Information systems as a tool for processing information can support the various management functions. The activities of managers entail decision making, which is an essential managerial function. All levels of managers in an organization require information to make decisions. Considering the essence of information for managers, the implementation of information systems should consider the managers at all levels. This is critical because it allows the new system to meet the needs of the individual managers. Further, the move facilitates the acceptability of the information system at all levels of management. For the effective use of information systems in an organization, all the levels of management should support the process. Involving the management at all levels works to ensure that the system receives support from the whole organization.
Although it is possible to use and implement information systems without involving the managers at all levels, the move has adverse effects. Firstly, it may be challenging to identify the individual needs of the managers. Implementing information systems without consulting all the managers indicates that the system may not be useful to some levels of management. The managers may find it difficult to apply the information systems to perform their daily functions. Additionally, the failure to involve all levels of management may increase the chances of the information system failing. Some of the managers may refuse to accept the system which may force the organization to abandon it. Further, the information system may not work well with some levels of management. The lack of utilization on all the levels of management means wastage of resources. Ther...