Management Systems in Apple Company - Case Study Example

Management Systems in Apple Company By Name Course Instructor Institution Location Date Introduction Management information systems encompasses technology, people and corporate and the relationship existing among them (Chen & Popovich 2003). The information systems are classified on the basis of tasks that they perform for the organization’s success. Technology enhances quality efficiency and speed in enterprise production. The people include the employees that form the company’s workforce, ranging from the executive, middle managers and junior employees. The people employ executive, management and transaction processing management systems respectively depending on their ranks. The executive makes future strategic decisions for the company. The middle managers make short-term and medium term tactical decisions while transaction managers make operational decisions. The junior workers such as shop floor workers and frontline staff operate the trade and processing systems. The transaction processing systems include payroll, processing orders, reservations, stock control and payments and transfers. They also report about summaries and actions on the basis of sales, inventory control, budgeting, reporting and personnel. The executives use the systems to analyse the current business environment to model and make long-term plans based on trend (McHugh, Humphreys & Mclvor 2003). This Essay examines the management information systems that Apple Company uses and their implications. Apple Inc Apple platform control aims at improved user experience. Online Apple customer Care provides integrated expert support. The company sells a number of its products by itself and resells others to third-party Apple can directly sell to consumers and businesses through its retail and online stores. THE external Audit and External Factor Evaluation (EFE) Matrix enhances the strategists to summarize and evaluate economic, socio-cultural, demographic, environmental, legal-political, technological, and competitive information for Apple. There are three types of information systems that affect Apple Inc in its efforts to execute various strategies (Shapiro & Varian 2013). They include transaction processing, management information systems and decision support system Transaction Processing Management systems Transaction support systems automate data handling of the company. Its analysis and design entails a focus on the current procedure for processing transactions. The transaction processing systems aims at improvement of speed in transaction processing. Improved accuracy and efficiency and integration with other information systems are the goals in the transaction section. The system is also essential for retrieval of previous relevant information (Ganguly & Gupta 2005). Apple’s IT department solves customer difficulties when deploying OS X, OS X Server and iOS softwares to organizations. Apple Care OS Support delivers phone and email support for integrating, migrating, and The company offers individuals, help desks, and IT departments. Care-OS Support plans enhance business level support where there is integration into heterogeneous environments such as system component configuration to the network (Kraemer & Dedrick 2001). Every Apple-Care OS Support plan must have Apple Care helpdesk that covers support incidents for hardware and software installation, launching and usage. They tackle diagnosis and troubleshooting, and isolating. The Apple Care Account Managers facilitate reviewing of IT infrastructure issues, and provide monthly reports for customer calls for support and repairs. The Retail team creates a network of leaders from the store to the region (Kraemer & Dedrick 2001). They transform unique retailing by innovating in customer services. Apple Care Help Desk Support provides the expertise that attends to customer frontline technology. The Helpdesk assists clients in hardware and software diagnosis, troubleshooting and issuance of Apple-based solutions (Kraemer & Dedrick 2001). Apple owns 390 stores out of which 140 are outside the United States that sell Apple products. The CEO of Apple has authority to contract with third parties to acquire the right to deliver digital content, such as music. The Mac book, videos, podcasts and audio books are loaded with iTunes to clients a wide range of products to choose from. Transactional leadership enhances exploitation of the knowledge at the organizational level (Chapman, Hoskisson & Christian 2012). Management information systems The systems provide for efficiency and effectiveness in management .They involves resources, people, technology and information that enhance analysis of other information systems. (Chen & Popovich 2003) Apple uses the system to execute competitive strategies. Before Apple, Tim Cook works as a computer reseller of Intelligent Electronics. He also works in PC logistics for 12 years at IBM and Vice President for Corporate Materials at Compaq. Cook joined Apple in 1998 as a vice president of operations. Cook is later promoted to chief of worldwide sales and the Macintosh division finally joins the position of Apple CEO (Jobs, Wozniak, Wayne, Campus & Loop 2012), Recently, the company saw human resources roles reshuffle by Tim Cook, the CEO to improve performance. The appointed design chief Jony Ive is in charge of industrial product design and human interface across the Apple Company (Elliot 2012). Jony's skills are a software expert and being in the position ensures countering competition. Eddy Cue is given Maps and Apple's Siri voice technology in addition to iTunes. Bob Mansfield, a former hardware engineer, ensures that Apple's wireless teams across the company are united to foster innovation in this area. Cook, the current CEO since August 2011 raises the compensation of executives to retain them and acknowledge their period of service. Peter Oppenheimer, the CFO Manager takes care of the financial risks (Elliot 2012). Browett shows plans to boost Apple's profits by reducing office staff, firing retailers and store workers, reducing hours for part-time workforce and reducing overtime. Kristin Huguet, Apple's spokeswoman, criticizes the idea in the media by emphasizing that the employees are the most valuable asset that provides the desired world-class service to Apples customers. Jony Ive, a long-serving leader of industrial design is allowed to manage Human Interface (HI). Cook appoints Eddy Craig to lead both iOS and OS X .Bob Mansfield becomes a leader of Technologies group .Cook asks the Retail team to report directly to him as they search for the sales executive. The transformational leadership of Apple aims at efficiency in creation and sharing skills and expertise from the workforce to employees. The executive changes aim at encouraging collaboration among the hardware, software and services teams to make them world-class (Elliot 2012). The Apple CEO, Gil Amelio suggests purchase of the whole of NEXT Company rather than only the software. Steve Jobs is reappointed as an Apple CEO due to managerial knowledge as portrayed during the dark years of Apple where only talented employees are hired by Apple. The employees are familiar with the current technological needs and revive the company thus making Jobs a renowned leader. These company's products features represent an innovative era for its development (Burrows & Grover 2006). Decision support systems The systems assist the organization to make decisions. They further assist in planning by compiling raw data, documents, skills and models to identify and solve problems. The information emerges from inventories, comparative sales figures, and projected revenue figures, and the reports enhance forecasting. Apple utilises data from its customers from iTunes, iBooks, and Apple stores. Apple uses this data to increase client relationships and alert the existing and prospective customers about new commodities. Apple aligns its operations according to the needs of its customers as a result of the availability of relevant client information and feedback. Complaints can be dealt with easily. Apple Company has online customer care personnel that communicate to customers (Kraemer & Dedrick 2001). There is Vertical integration of production processes to ensure quality meets client demand. Implication of the management systems to the company’s decision making Management information systems are influential to Apple in a number of ways. The company identifies its strengths and weaknesses from examining the revenue reports and workforce performance. The aspects enhance a company to develop the business and its operations. Apple has objectives in place for continuous moving forward. Among them is SWOT analysis to determine its internal environment technological edge over its competitors such as Amazon. The weak relationship in the market, short life cycle items are Apple's weaknesses that call for maintenance of research that is in the turn capital intensive. Opportunities can affect both the present and the future condition of the organization. Apple's opportunities are the introduction of more and more PC viruses. Product expensiveness is a threat to the production. The regular technological advancements are a response to market threats. Intensity of competition with related firms such as Google has released its phone T-Mobile G1. Apple emphasis on fulfilling objectives ensuring utility of the right marketing, financial and operational structures (Tar 2013). The image of the company can improve with time. The company is differentiated by its brand-perception and identification Apple Inc's products are preferred by clients because they portray a desired advanced technology. Their simplicity and design, and a sense of comfort and convenience give Apple Inc an attractive image in the market over the years that translate to profits. Apple products are no longer considered luxuries by their customers but real necessities due to the technological developments. As Steve Jobs wanders, he learns to create an effective branding platform. Using numbers and letters, Apple II and Apple III appear confusing to customers. The design of the neat i-Platform products appears an attractive package that hooks up with the Internet (Burrows & Grover 2006). Apple has ability to mass-produce superior quality products. Apple Inc builds the entire solution ranging from hardware, software and the operating system .Apple brand is similar to a cult for users. They take Apple products such as iTunes, QuickTime and iMac lines QuickTime and iMac lines as part of their life. Apple Inc's short-term goal is increasing the current sales of the just launched products that appear the most useful browsers in the world, the ipads. Managers and executives of the organization concentrate on the long-term vision. The Vision Statement of APPLE "Man creates change in the world''. Apple strives along the vision by developing technologies for consumers and corporations. It struggles to make its customers masters of the Purchased Apple products. Apple lives the vision by necessitating that its employees understand the vision and strive to attain it. It has put systems in place such as online customer service to enable smooth customer interaction. Steve Jobs' return as the CEO Job opts to involve the company in enterprise competition with Sony rather than Microsoft because Apple owns the company's hardware, software, and operating system. Apple can take responsibility for the user experience. Steve Jobs as the Apple CEO appears skilled at establishing a strategic direction along a future timeline by ensuring right timing to attack the market. When Steve Jobs is the Apple’s CEO, he understands competition pressure and market demands. Steve Jobs understands his primary role in setting strategic direction and long term goals for the success of Apple Company (Burrows & Grover 2006). Management information systems enhance creation of Competitive advantage over rival enterprises in the market. Apple Inc aims at topping the smart electronics market. The current innovations are the result of relentless focus on integration of world-class hardware, software and services. Eddy Cue has more responsibility in managing Mapps besides Siri® and uniting online services into one group as a result of showing excellent track-record in the past. The i-products include iPod, iphone, IPads, iMac, iBook, iTunes, and iBooks. Apple uses platform marketing names such as the MacPro, Mac Book, and Mac book-Pro for computers. The company uses the names of ferocious cats for its operating systems. All products have a display the Apple logo. There is no overlapping of names among Apple Inc models hence minimising confusion. The uniqueness of Apple products gives the company a comparative advantage over its rivals Tim Cook promptly responds to market inefficiencies He arranges for resources from Apple factories' nearest suppliers, thereby reducing time of acquiring inventory to six days from 31. He closes far-flung Apple factories and warehouses and shifts to contract manufacturing. Cook also helps Apple accurately to predict demand for products before their dispatch. Cook pumps $1.25 billion explore and expand the market for forthcoming Apple devices. The operational improvements give Apple the agility essential for quick, dramatic changes to its products similar to the successful switch of the entire computer line to Intel chips production in 2006. Factors behind the success of Apple Inc There are a number of reasons underlying Apple's success. They include the following. Platform control After 2009, Apple Inc establishes proprietary operating systems and designs that form its platform control despite its significantly reduced market share through the end of 2009. The financial performance does not create attention of the capital markets before Steve Jobs tenure. Apple's recent inventions in iphone and App Store and magical ipads define the future of mobile media and computing devices. Apples most treasured values for success include qualities, customs, standards, and principles. The values determine the market conduct. The company emphasizes empathy for clients, positive Social Contribution and Innovation (Danciu 2010). Apple Inc has 52% of its business coming from outside US in 2007. The major external business operation centres exist in Czech Republic, Ireland, China and Korea. The global economic crisis makes a significant negative impact on Apple products demand. People start viewing Apple Inc's products as luxuries and spend less on them. The company establishes opportunities that can benefit it and counter such threats. Investment in product research makes the firm's products lie among the top in the new innovative products ranking. Attention to detail The Apple Inc Company under Steve jobs pays keen attention to detail (Burrows & Grover 2006). The existence of accessible and reliable information enhances effective decision making. The company values oral, written and the most frequently used computer-based information. The executive information systems work alongside senior or middle managers or their subordinates to help in decision making. Mac-OS X operating system delivers the for Apple's iphone. The version 6 of IOS software faces extensive customer criticism. There is identification that the designer, Maps app, has not given usage directions, and Cook is forced to apologize on behalf of the company to the dissatisfied customers. Forstall (2010) dismisses the early customer complaints and does not apologise for it. The CEO decides to fire him for that (Chaudhri, Forstall, Louch, & Peyton 2010). The Competent founder, Steve Jobs Steve Jobs, the former Apple Inc CEO s judges on whether to hire people with specific desired characteristics of to license technology or acquire a particular entire company. He runs a new automated factory that NEXT with other engineers and come up that produces the software Macintosh that apple needs. The root is the perception for Japanese control of the world manufacturing. Steve Jobs also concentrates on reestablishment of the formerly confusing brand platform that uses alphanumeric to distinguish models of Apple such as the Apple II that has four brands (Burrows & Grover 2006). Steve Jobs announces a fall in price of iphone by 200 dollars in 2007 from 600 dollars to neutralise customer dissatisfaction. Two days later he offers another 100 dollars credit to those that pay full price when purchasing. The tarnished image raises a concern of loss of existing and prospected customers that can translate to reduced customers. Cook, Steve's interim leader and final heir also keeps the company on the same track. Cook, Steve's interim leader and final heir also keeps the company on the same track (Burrows & Grover 2006). Success by the numbers Ten years after IPod see apple introducing a number of successful products. For only five years, Apple increases its market capitalization to $422 billion. The iPhone is the most popular Smartphone possessing 73% of the total profits that the current world mobile phone industry has and 68% of the tablet market share. The combination of the two gives Apple the largest market capitalization in the world. There are expectations that the company may be the first trillion-dollar company in the world (Pilzer 2010). Apple's marketing is very influential .Steve Jobs notices that the 1990s Apple's loss of market share is due to slowness in adopting necessary changes. Apple Inc develops innovative iMac computer that appears internet friendly and stylish. Further developments of iphone and Apple TV and changing the name into job & co see the company regain the market share. The new name and device shows APPLE's strategic shift from personal computing company to survive and set its computing world's agenda. The recently employed marketing approaches are the most significant implications of Apple Company’s success (Burrows & Grover 2006). The Strategies bear different dimensions based on the goals that the enterprise has. Building dimensions for Apples marketing strategy. Product quality and Market Image Apple succeeds in changing its name from Apple Computer to Apple Inc. The success after launching indicates its capacity of diversification of production beyond computers. Other successes include escalating stock price; its corporate image continues to rise. Apple emphasizes on the use of quality materials and design in its products despite their mass-production. There is integration of hardware and software of all its products to ease in their use with minimal after-sale support such as iPod with iTunes (Keller, Parameswaran & Jacob 2011). Distribution and pricing Initially Apple finds it impossible to find retailers for its products; Apple decides to create its distribution channels by establishing Apple Stores. Later the popularity of Apple products makes resellers such as mobile phone service providers and big box retailers such as Verizon Best Buy, Target, Sprint, and Wall-Mart carry out the distribution. Automobiles Manufacturers design them to be compatible with iPods and iphone thus increasing the distribution of the company. Product pricing aims at reaching margins beyond its competitors. The profit margins enhance quality sustenance. Price control is possible due to the uniqueness that is attached to every Apple product. There is a reduced customer complaint that implies satisfaction (Keller et al., 2011) Promotion The famous Super Bowl ad called Big Brother of 1984 introduces Apple's Macintosh computer. However, the strategy sees the demand for the computers fall after its withdrawal. Currently, Apple commercials are efficient in promoting the company's products (Keller et al., 2011) Apple proficiently coordinates and integrates the marketing strategies for optimum effectiveness. The founding CEO of Apple, Steve Jobs views technology as human, friendly and appealing with ability lead to unique products such similar to the former Macintosh development (Burrows & Grover 2006). Conclusion The Apple Inc is successful in applying the management information by ensuring that each sub-section performs its roles accordingly. The company uses the transaction management systems in responding to customer demands. The Executive part of the management information systems participates in making long-term and short-term decisions for the company. The decision support processing utilises the available relevant information to make essential decisions. References Burrows, P., & Grover, R. (2006). Steve Jobs' Magic Kingdom Chaudhri, I. A., Forstall, S., Louch, J. O., & Peyton, E. S. (2010). U.S. Patent No. 7, 752, 556. Washington, DC: U.S. Patent and Trademark Office. Chapman, R., Hoskisson, R. E., & Christian, G. (2012). Apple Inc.: Keeping the “i” in Innovation Chen, I. J., & Popovich, K. (2003). Understanding customer relationship management (CRM): People, process and technology. Business process management journal, 9(5), 672-688. Danciu, V. (2010). The Brand Identity: A Strategic Shift for Success. Romanian Economic Journal, 13(36), 3-13. . Elliot, J. (2012). Leading Apple with Steve Jobs: Management Lessons from a Controversial Genius. John Wiley & Sons. Ganguly, A. R., & Gupta, A. (2005). 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Harvard Business Press. Tar, A. (2013). Apple SWOT Analysis. Read More