Solution
Ananya answered on
May 04 2022
INFORMATION TECHNOLOGY
Executive Summary
In today’s world, Uber is a most useful application which has helped people to reach anywhere, at any time. Developed in 2009, by Travis Kalanick and Ga
ett Camp, it has taken over the taxi business within few years. Providing an opportunity to the riders, it is a consumer-centric business process which allows the customer to choose their ride. In developing such process, the alignment of the information technology system and the business strategies are the most important factors to be considered. The system on which Uber runs to draw more customers and sustain in the market will be discussed below elaborately.
Table of Contents
Executive Summary 2
Introduction 4
Alignment between the Information System Strategy and Business Strategy 4
Role of Business Intelligence and Analytics 6
Contemporary tools and Techniques 8
Conclusion 10
References 11
Introduction
Uber is a transportation company which is based on the American mobility providing services to millions of people over the world. The idea was obtained by two friends Travis and Ga
ett who could not avail any taxi on a night of snowstorm. The idea stuck them of availing cab services through mobile application which will be convenient for every person who has a smartphone. The idea needed several technologies and strategies to give it a shape, which was properly included by both the friends making a successful company within a few years. Today uber has spread in 83 countries with over 19,000 drivers and millions of sustained customers. The company shows a revenue of 11 billion US dollars and a market capitalisation of 74 billion US dollars. This has been possible due to the integration of information technology and business strategy in the system. The only criteria for such system being successful in the market is maintaining the speed which will allow to retain the customers. Several apps are available in the market which can divert the customers from availing Uber. Accessing the database is a key to sustain the customers in the long run which helps to maintain the position in business. Proper tools and techniques must be incorporated to get the successful access to customer database. This keeps the customers engaged with the company which in turn helps to retain a large number of customers. The alignment of several business methods keeps the company to strive in the market which are discussed below. Further we will discuss about the several sectors of business including tools, analytics, technologies, and strategies which can make the system more useful. Analysis and evaluation of the processes can help us in understanding the incorporation of information technologies with the business environment in a better way.
Alignment between the Information System Strategy and Business Strategy
The business strategy of Uber lies in the simplicity of its functioning. Can rides can be availed at a click which is cheaper than the traditional taxi rides. First introduced in San Francisco, it created a revolution in the business world with its cost-leadership strategy through the use of information technology. However, according to Cram and Wiener (2020), the business strategy of uber is aligned with the information system strategy to initiate the customer matches quickly so that they are retained in the system. This include the alignment of business strategy driven by the speed using information system as the main criteria for such application is to retain the customers having minimum or no loyalty in the business. Customers could avail different applications for a ride which are more convenient to them and uber could loose its customer base. As supported by Steffen, Möller and Nowak (2022), the logistics companies had aligned with digital system to increase their effectivity through time management and customer retention. To survive in this business market, speed is the main criterion to be maintained and providence of service whenever needed is essential. Availing a taxi service grew hectic day by day due to their incompetence with the digital system. This is ell known by uber which has made them to align their business strategies with the information system strategies which has made them successful in the business sector. Uber’s business strategies are highly aligned with the information technology at each sector. The first business strategy which uber incorporates is the increased services which accommodates a huge range of customers. This strategy is aligned with digitisation using the several types of services like Uber X, Uber XI, Uber Pool, UberGO, Uber AUTO, Uber Access, Uber MOTO, Uber Premium or Uber Rush (BUSINESS RESEARCH METHODOLOGY, 2021). The second strategy it provides the customers with high level of convenient service which does nit require several calls or line ups for the cab service. It is made available at the doorstep as soon as it is booked. This strategy is aligned with incorporation of the information technology which operates the system using the GPS throughout the ride and the location followed through it. The power is in the customers’ hand where they could complain if the driver took a long route or spent excessive time dropping them t the location. All can be done through the information system which the application is aligned with. The third business strategy is the cost-effectiveness of the rides which are lower than the traditional cabs. The uber got the first movers’ advantage in business as they were the first successful company providing the cab service through digital field. Aligned with the technology system helped them to retain a large number of customers as soon as they stepped into the business sector. Lastly, the business strategy adopted by uber is acquaintance of several business for their growth. This strategy is aligned with the artificial intelligence company Mighty AI in 2014 to expand their business in the food and grocery servicing. Using the geospatial software deCarta in 2015, they expanded in several sectors. Even in the pandemic situation food and transportation services were provided by uber to keep itself on track (BUSINESS REASEARH METHODOLOGY, 2021). However, according to Ram and Zhang (2018), such incorporation of the business and technology of uber has failed to produce a strategic alignment leading to the decrease in its customer rate. Several other apps are prefe
ed by the customers which are more convenient for them showing all the required elements of a trip. A conceptual model must be incorporated to maintain the strategic alignment which will increase the business and result in the growth of efficiency of the cab service through uber. The proposed model which can be added to the service are the competitive theory model and the socio-technical theory which can be understood by all resulting in a higher success. I feel that the business strategy...