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Impacts of Systems Acquisition on Business Strategic


Business owners must stay current with industry developments or risk losing clients and money by failing to update their procedures and inventory (or services). Consumer requirements, desires, and expectations are constantly evolving, just like these organizations’ products do. When you are in control of a business, there is a great deal of unpredictability and a finite amount of money to deal with. Businesses that wish to remain competitive must plan for asset maintenance and replacement. To accomplish this, businesses must educate themselves about new technologies and develop strategies for preserving and replacing assets (Mallinguh, Wasike & Zoltan, 2020). As technology becomes more brittle, the operating expenses of the business increase. The cost of new capital and maintenance may fluctuate over time as a result of technological advances. When it came to purchasing systems, it was all about finding one that could operate independently of other systems or contracting out the work to someone else. As such, the purpose of this article is to examine the impact of new technologies, such as information systems, on businesses strategies.


An information system for instance, is critical to a business’s value, both in terms of the benefits it provides and the cost of maintenance. As a result, businesses must plan for the long term when purchasing information systems and services to assist them in operating their businesses. Additionally, businesses must be vigilant for any new opportunities that may present themselves. Essential applications and project objectives are identified using long-term organizational strategies and the demands of everyone from data workers to CEOs. Certain projects may be forced to be completed immediately if new government reporting requirements or a new customer’s information system require immediate action (Harris, 2012 pg. 113). Other initiatives may be prioritized over others if they play a larger strategic role or have a greater chance of success.

Once the need for a particular information system becomes apparent, it is necessary to purchase it. This is typically accomplished as part of an already-existing firm-wide information systems architecture. When it comes to purchasing information systems, you have two options: purchase them or build them from scratch. Due to the developed state of the information technology sector today, businesses are more likely to purchase information systems and services from IT firms. The majority of their work involves modifying and integrating programs to meet their employer’s requirements and developing the organization’s overall system architecture. Smaller mobile applications are almost never developed in-house. In some instances, the individuals who use these programs may also be their creators.

The use of information technologies simplifies the process of assisting businesses in completing critical tasks. These systems facilitate individual and group decision making, product and process development, interactions with consumers, suppliers, and business partners, as well as the pursuit of competitive advantage (Wagner, Herrmann & Thiede, 2017, 88). They may assist the business model in certain circumstances, though this is not always the case (e.g., Google). Businesses can now compete and collaborate in novel ways, as well as design their workspaces in novel ways, thanks to information technology. Individuals and businesses can save significant amounts of money by communicating and cooperating more effectively via Web-based information systems in supply chains or organizational webs.

Today, many businesses focus exclusively on their core competencies and outsource the remainder of their value chain to firms that excel in the specialized field in which they lack expertise. Due to the ease with which information can be shared within a corporation, flat organizational structures with fewer layers of hierarchy are becoming more prevalent. While information systems can result in increased revenue, this is not always the case. For a business to succeed, it is critical that information systems are used effectively and that they work in concert with other organizational resources, such as strong relationships with business partners or expertise in a specific area of work.

Additionally, information systems have spawned new organizational forms. Rather than relying on physical offices or traditional organizational charts, individuals are forming “virtual” groups (Wagner et al., 2017 pg. 57). According to Law & Ngai (2007) there are two types of virtual organizations to be aware of: network and cluster organizations. Long-term business partners offer products and services through a single network organization’s hub firm. A collection of small businesses can pass for a much larger organization. A single individual and a few others may be sufficient to run such an organization. However, network organization results in a malleable ecosystem of firms that are established and operate in concert via Web-based information systems.


Finally, the emphasis of the current acquisitions is on system-of-systems (SoS) purchases. The business and mission requirements of SoS constituents are constantly changing, and users want to be able to adapt their systems to meet those demands. Another possibility is that a system will require connections to systems that were not considered initially. It is critical in this situation to define what needs to be accomplished to meet your assurance objectives and to incorporate characteristics that enable things to function properly even when there is a great deal of complexity and change. Acquiring a system that is supposed to function with an SOS has become increasingly difficult, as the process of acquiring and expressing requirements, comprehending system interfaces and usage patterns, and adapting assurance procedures is never complete.


Harris Jr, A. W. (2012). Impacts of space system acquisition on national security. NAVAL POSTGRADUATE SCHOOL MONTEREY CA DEPT OF NATIONAL SECURITY AFFAIRS.

Law, C. C., & Ngai, E. W. (2007). ERP systems adoption: An exploratory study of the organizational factors and impacts of ERP success. Information & Management44(4), 418-432.

Mallinguh, E., Wasike, C., & Zoltan, Z. (2020). Technology acquisition and smes performance, the role of innovation, export and the perception of owner-managers. Journal of Risk and Financial Management13(11), 258.

Wagner, T., Herrmann, C., & Thiede, S. (2017). Industry 4.0 impacts on lean production systems. Procedia Cirp63, 125-131.


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