Introduction
This paper examines the practical application of Information Systems (IS) in gaining a competitive advantage post-COVID-19. The paper will therefore examine the impact of COVID-19 on businesses and the economy. It will follow to describe Yoello, the case company, to understand its operations, develop an IS context, and recommend changes that could benefit them competitively. Information Systems involve different information technologies that perform specific tasks, interrelate with, and enlighten actors involved in an organization or social setting (Boell & Cecez-Kecmanovic, 2015). More than the technical aspect of IT, the IS includes how technology is instantiated or used to ensure IS satisfies the users’ needs regarding given goals or practices.
PART A: How COVID-19 has Impacted Businesses and How ISs Improve Competitive Advantage
How COVID-19 has Impacted Businesses
COVID-19 was a devastating factor for most businesses in 2020, and until now, most are yet to recover while others were completely closed down. According to Meyer et al. (2021), many businesses reported severe disruptions to sales operations than to their supply chains. Consumer spending fell dramatically due to emergency shutdowns and lockdowns with people in their homes. In the US, the real GDP had reduced at an annual rate of 5% in the first quarter of 20220 and by 32% by the end of the second quarter, thus causing the fastest and most gruesome economic shock in the modern history of the country. The UK also experienced a severe recession that caused a reduction in GDP by 25% after the first lockdown (Parliament UK, 2021). Since then, the economy has slowly recovered, but not to the pre-pandemic level. This is more so due to the increase in the inflation rate, which has risen since 2021, causing an increase in energy prices and highly disrupting global supply chains.
Supply chain disruptions are among the most negative influence of COVID-19 on businesses. National lockdowns stopped the flow of raw materials and goods to consumers, which affected manufacturing (Moosavi et al., 2022). In addition, businesses offering services requiring consumers’ physical presence, such as hotels, tourist sites, hair salons, and massage parlours, had to shut down completely. Even as of 2023, various lockdowns cause disruptions in the supply chain, and some consumers are still unwilling to visit stores. However, on the other hand, the disruptions have forced shippers, manufacturers, and service providers have had to find ways to change their supply chains to be more flexible and accommodating (Moosavi et al., 2022). For instance, most take advantage of off-peak port hours, find better alternative ports, reshape their products, boost in-house trucking, and divert resources to money-makers from low-margin products (Barman et al., 2021). Service providers like banks and hospitality institutions have adopted technologies such as apps for online shopping and personal deliveries.
The loss of product demand due to reduced consumer spending led to a reduction in profits for most organizations. Moreover, the extra expenses caused by the delays in supply and increased storage time ate away at the present capital (Larue, 2020). Thus, maintaining the current workforce became hard, leading to layoffs and furloughs. The laid-off people reduced spending dramatically, further driving down demand (Larue, 2020). This forced businesses to invest in promotions, discounts, and supplementary addition to products to attract consumers. Such expenses had most businesses closing down due to bankruptcy (Zahra, 2020). Although spending has increased, the demand is not yet at the previous level. In addition, reduced spending made consumers realize they could do without certain products and services. There has been an increase in cyber security threats due to many businesses’ remote work, which has exposed their operations.
Nonetheless, the onset of COVID-19 has led to digital transformation involved in remote work and e-commerce (Zahra, 2020). Companies have been forced to adapt by changing business strategies and operation management to accommodate technologies that enhance efficient remote operations and improve conducting online business. This has influenced innovations by developing new products and services requiring minimal personal contact and increased consumer service efficiency (Verma & Prakash, 2020). Consumers have become more aware and are demanding sustainable production processes, which has increased investments in renewable energy resources to reduce carbon footprint. Bottom line, companies have adopted information systems that enable them to promote e-commerce and enhance remote work to reduce production costs and increase profits.
How ISs Improve Competitive Advantage
According to Laudon and Laudon (2013), information systems help solve business challenges by leveraging management, organization, and technology.
Therefore, an organization gains a competitive advantage by understanding the present challenges and applying information systems in management, technology, or organization to develop solutions (Laudon & Laudon, 2013). The mentioned challenges caused by the pandemic above, therefore, can be solved using ISs in the following ways;
Supply chain management: Information systems enable communication, management, and decision-making in the procurement, storage, planning, and transportation of goods more efficiently. They also enable the development of better technology through the application of data collected. Moreover, they enable organizations to find ways to reduce costs in logistics and handle issues arising to gain a competitive advantage.
Remote Work: In remote work, the information systems have enabled managers to follow up on their subordinates’ tasks through developed software like emails, videos, or tracking ERPs. It has therefore enabled the hiring of foreign employees with high skills at lower rates, reducing production costs for some organizations and increasing competitive advantage.
E-commerce: From the closing of brick-and-mortar stores and reduced operations during the pandemic, e-commerce has surged. Organizations have come to rely on online marketplaces to sell their products and interact with consumers. Information systems have enabled this and have given organizations an easier way to collect data to study consumer behaviour and track the performance of their products and services.
Digital money transactions: The pandemic forced people to reduce physical contact during transactions, leading to an increase in the development of digital payment methods. ISs have enabled the innovation of mobile payment platforms, such as QR scanning and payment apps that have enabled contactless transactions (Dwivedi et al., 2020). It has increased convenience for consumers who do not need to be physically present to purchase products. Therefore, institutions that can leverage this gain a competitive advantage.
Data analytics: The ability to access real-time data enabled by ISs has led to a significant reliance on data analytics to study the market. Technologies like Big Data analytics, blockchain, the Internet of Things, and artificial intelligence have become more common in operations and communication. They enable a smoother flow and a better understanding of consumers, suppliers, competitors, and the organization itself.
PART B: YOELLO
Yoello offers mobile order and pay solutions to companies in the hospitality industry by applying open banking legislation that allows the eradication of intermediaries, thus connecting buyers to sellers directly (Leigh, 2020). It was founded in 2015 by Sina Yamani, who aimed to assist his friends in the hospitality industry in reducing intermediaries who made their services costly to consumers. It is based in Cardiff, United Kingdom, where the founder dropped out of a computer science degree at Cardiff University to start it.
The company offers four primary services. YPay is a payment platform that enables companies to avoid intermediaries, thus saving many transaction costs. Pay At Table enables consumers to pay using QR codes to avoid delays and reduce physical contact. Order At Table allows users to scan QR codes, use URLs, or tap an NFC to access menus, order and pay. Finally, Quick Pick-up enables customers to order, pay, and get a notification when their product is ready to avoid queues (Yoello Press Release, 2021). These services save up to 90% of transaction fees for institutions (Yoello Press Release, 2021). This has helped the organization grow exponentially because it is continuously entering new markets. Their success can also be attributed to The Department of Business and Trade (DBT) ‘s assistance and support during the expansion. Yoello was among the companies that benefited from the pandemic due to the high demand for cardless and cashless transactions.
Description of Yoello
Yoello is a digital private equity firm that deals with ordering and payment of products and services in hotels and pubs, assisting institutions to offer a more convenient experience in delivery, bill pay, collection, and ordering. Its culture is characterized by forward-looking creativity and innovation, customer satisfaction, and collaborative teamwork (Yoello, 2023). This aligns with its core values: moving forward through driven, proactive, and responsive collaboration; making comfortable choices that promote confidence, ownership, and growth; and pushing boundaries through focused problem-solving and creativity (Yoello, n.d.). Through this, the company can maintain a diverse and inclusive work environment throughout the branches to enhance strategy development that ensures the satisfaction of employees and consumers. It assumes an agile leadership style focusing more on collaboration, communication, and coordination to bring change to the organization and industry (SA, 2022).
The organization has a flat hierarchical business structure which requires minimal middle management given that it has around 70+ employees (Tiffany, 2023). This structure enables quick decision-making, given that fewer procedures are required. Nonetheless, employees are free to make decisions in their areas of expertise, increasing creativity and employee satisfaction. It enhances the company’s competitiveness and promotes its growth throughout different markets. It operates in a highly competitive environment, given that most banking organizations offer mobile payment options to consumers. It is in hospitality and financial technology (fintech) industries (Tiffany, 2023). Its specialization in hospitality and retail is its most competitive advantage. This was more evident during COVID-19 when these industries relied on Yoello’s services to counter the negative impact that had reduced sales exponentially. Significant companies like Doubletree Hotel, Broadway Hotel, Cardiff Metropolitan University, and The Shed use Yoello, which showcases its abilities (Yoello, n.d.).
The company applies differentiation in its business strategy through the specification of the hospitality industry. This focus enables it to create specialized services to benefit hospitality and retail businesses to generate maximum satisfaction. These businesses increase efficiency by around 70%, and their revenues increase by 30% when they use Yoello (Yoello, n.d.). In addition, the company focuses on technological efficiency by creating data protection software and effective QR code services. This has helped earn customers’ trust and loyalty. Moreover, its effectiveness has enabled it to enter new markets and be willingly accommodated.
Yoello has also taken up the strategy of exploring international markets to take advantage of the demand available for online businesses (Williams et al., 2020). Also, to leverage markets with larger populations that use mobile technology, Yoello has advanced to Australia, Canada, Europe, America, and New Zealand in the last three years. Its popularity, growth, disruptive technology, and efficient management led to its winning over seven awards, including New Product of the Year and FinTech Scale-up of the Year in 2019, and FinTech Start-up of the Year in 2021. The CEO, Sina Yamani, has also won awards, including the Young Entrepreneur of the Year 2021 (CBInsights, 2023). Yoello is aiming to introduce a banking system to diversify its services. It also offers a free platform called Your Cardiff to support Cardiff businesses through offering virtual footfall and free access to their Click & Collect and Delivery platform features as a way to understand government guidelines better (Yoello, n.d.). This supports their strategy to involve the community in their business by helping smaller businesses grow and adapt to technological reforms.
Data protection and privacy are the main ethical issues affecting the business. Given that the business is online-based and interacts with personal and company credentials and data, Yoello has to have top-notch data security platforms and regulations. Failure to protect data and privacy can prove disastrous for the company’s brand and image, which takes much effort and revenue to recover. Yoello supports sustainability by offering businesses a customisable digital menu where they can showcase sources of their food and the most sustainable dishes. The company aims to increase sustainable production in hospitality and retail by supporting sustainability regimes and advocating for environmental responsibility.
How Yoello Applies Information Systems, the Web, and the Internet
As mentioned earlier, managing information systems involves understanding business challenges and using information systems to find solutions as influenced by management, technology, or organization. The business challenges that Yoello experiences include:
Cyber security: Cybercrime has increased tremendously over the last few years, costing businesses millions. In 2022, the cost of cybercrime globally hit 8.44 trillion dollars and is projected to cost at least 10.5 trillion dollars by 2025 (Schwab & Brende, 2022). Yoello is at more risk because all its operations are online. Since cyber attackers are becoming more informed, the cost and effort going into cyber security have to be high.
Competition: As a growing business, the company must distinguish itself from competitors to stand out and gain its market share (Rusdana et al., 2022). While Yoello has managed to be outstanding, it still has to invest in ensuring it is seen, understood, and attractive to consumers.
Compliance Challenges: Various compliances are involved in an online business engaging in international entrepreneurship, including data privacy, international regulations, customer verifications, and anti-money laundering policies (Hamid et al., 2019). These require investment in a competent legal team and planning and execution.
Integration challenges: Partnerships are always challenging, especially for young businesses, and Yoello has been making partnerships, such as Dojo and Nottingham Bid while expanding their business (Yoello, n.d.). It requires much time in research and negotiations to be able to select the best partners that will help the organization grow.
Making, maintaining, and growing sales: Yoello has had a positive streak since COVID-19 hit in 2020. Maintaining these sales require trustworthiness, planning, and delivering promised goods and services. Doing so builds the company’s image, thus attracting more sales. Due to economic uncertainty and changes in consumer preferences and behaviour, growing sales has become more complicated, thus making it a challenge.
Managerial Considerations:
- The organization’s management has to oversee all the branches and ensure the smooth running of businesses, given that the organizational structure is flat hierarchical.
- Proper communication, hiring process, and planning of objectives for the whole organization is, therefore, more demanding.
Organizational considerations:
- The staff is minor fitting for a medium-sized business.
- Computer literacy is a significant requirement for every person employed at Yoello.
- Integrating data protection policies that employees can enact takes time. Training programmes that explain personalized policies used by Yoello are essential.
Technological Considerations:
- Digital transformation and industry disruptions must be easily accommodated in the company’s operations.
- Accommodating big data and embracing data analytics require specific computers and skilled personnel.
- Technologies such as web hosting, e-commerce platforms, social media, and Internet Merchant Accounts (IMA) that enable smooth e-business operations must be efficiently adopted and created.
Information Systems Applied
QR Coding: Instead of creating a mobile application, Yoello’s platform enables the use of QR Codes, which each organization is given to share with consumers who visit their premises (Ahmad et al., 2021). This is more time-sensitive and convenient as it has lesser procedures. Moreover, it can be used on different phone devices, such as Android and iOS, making it accessible anywhere.
Online Processing System- To enable customers to order, pay, and apply quick pick-up and for companies to be able to track orders and payments, Yoello applies a convenient and safe processing system (Yoello, n.d.). It is developed effectively in that there are no unnecessary delays, and bugs are continuously eliminated (Ahmad et al., 2021).
Specialized Company Experience: The platform by Yoello allows companies to customize their products and market them (Yoello Reviews, n.d.). Therefore, every company can explain what they offer and why. Moreover, they can track the buyers to generate a portfolio of every meal or drink’s demand, progress, or failure.
Marketing using the Web and Internet: The company has blog sites and websites explaining their services, giving room for questions, and inviting companies to apply for partnerships. As a young company, most individuals who hear about them visit the site for more information (Gawade, 2019).
Secure Online Payment Platforms: The company has invested largely in developing secure systems that protect institutions and consumers. (Yoello T&Cs, 2017) Details such as payment credentials of both consumers and companies, delivery locations, and payment methods that are stored in Yoello’s cloud are automatically exposed to the possibility of being breached. However, the lack of breaches proves the company has an effectively configured cloud.
Suggested Improvements for Information Systems
Transaction processing systems: Yoello should continue with its investment in processing systems to enhance customer satisfaction. Moreover, it will enable them to maintain flexibility in cases of the emergence of new and advanced technologies (Ahmad et al., 2021).
Management information systems: Yoello will benefit from investments that enhance managerial practices, such as advanced computers for each leader and the application of advanced ERP systems (Rainer & Prince, 2021). This will help ease the workload and promote efficiency in management and empowerment of every employee.
Decision-support systems: To make informed decisions on consumer behaviour in new and existing markets, Yoello has to continuously invest in systems such as big data analytics and artificial intelligence (Yu et al., 2022). These will enable them to assess new possibilities and enhance the satisfaction of existing consumers.
Executive support systems: These systems enable executive teams to gain the market, investment, and technological intelligence that will influence their decision-making (Araya-Guzmán et al., 2019). This information is often external and unstructured, and its scope is unpredictable beforehand. Yoello investing in these systems will keep the leaders updated and aware of expected regimes, trends, and changes.
These systems will enable the achievement of operational excellence as they can improve risk management. Using data analysis to understand the market and the industry can improve how Yoello recognizes and manages risks. In addition, it could improve back-end operations and generate a more agile methodology that enhances speed and efficiency in product development. In customer intimacy, these systems can enable Yoello to find more appealing personalized user experiences that could attract more customers. Moreover, analysing information such as consumers’ feedback is essential in refining products to fit their needs. Implementing these suggested systems can therefore generate a business process that involves more awareness, flexibility, and preparedness for changes in the market, product, and technology.
A Knowledge Management Value Chain for Yoello
The knowledge management value chain is a framework used to evaluate knowledge performance through its acquisition, innovation, protection, integration, and application.
Knowledge acquisition involves the application of software to capture information regarding the product, consumers, suppliers, investors, and the industry (Schniederjans et al., 2019). Moreover, according to Martins et al. (2019), organizations collect information through personal interactions with others and technology. Yoello uses its platform to collect information on how companies prefer their product and service. Moreover, it uses ratings and other sites like WHO to understand its operating environment.
Knowledge innovation involves generating knowledge to be used within the organization or by other stakeholders in understanding organizational operations and its products (Schniederjans et al., 2019). Yoello generates innovation through research, analysis, and technology and product development. Yoello also uses knowledge acquired, such as experts’ and customers’ feedback, to generate product information.
Knowledge protection and storage: Collected and innovative knowledge is stored in a centralized management system that employees can access (Schniederjans et al., 2019). Yoello has created its own system that is protected using firewalls and authentication procedures that the employees can access, thus ensuring they are aware. They are also trained to properly access the data in a way that does not expose it.
Knowledge sharing includes passing information around the organization depending on the departmental level (Colicchia et al., 2019). It is also done using workshops and communication channels. It ensures that employees are updated on its products and operations.
The knowledge application involves the application of the shared knowledge in improving operations and product development (Colicchia et al., 2019). Yoello continuously uses gained knowledge to get a competitive advantage and keep up with new developments
To measure knowledge, Yoello uses consumer satisfaction metrics, employee engagement models, and operational management measurements (Martins et al., 2019). They show how the application of knowledge has impacted these areas in order to decide whether to keep it or discard it.
Conclusion
In conclusion, digital firms are influenced by information systems exponentially. Yoello is an excellent example of an organization that uses technology to get a competitive advantage and offer differentiated services to consumers. The data shows that the company is following the correct trajectory that will ensure its success now and in the future. Therefore, properly utilizing information systems will push it further ahead and enable it to capture a larger market share as it internationalizes. It should apply them in expounding on its advantage of focusing on hospitality only and enabling it to expand into mobile banking. Information systems will also help determine risks and avert them.
References
Laudon, C. K., & Laudon, P. J. (2013). Essentials of management information systems. Pearson Education, Inc.
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