Information and Competitive Advantage

Assalammualaikum and hello, in the lecture, Dr.Roya have stated about Human Resource Information System as an important system that can provide competitive advantages for the organization. HRIS is a tool that can be used to manage employees and process in the organization effectively. In this global world, technology is a must in order to compete with other organization. It is depending on how the organization makes use of the technology it has, or use the latest technology to meet market demand. If the technology used effectively, it can increase the performance of the organization as a whole. For example, Elf Atochem has made a wise choice of using Enterprise System for their organization, and it improve their customer relationship.


As we know, there are five competitive advantages that involve human resource information system. Cost leadership might involve the cost that has to be faced by the organization to produce their product and to manage the resources. The information system will help the organization to manage the resource and help them to identify which of the resources need to be used at the right time. A well planned organization with HRIS will achieve the advantage of low cost, and it can become the core advantage of the organization, because as the cost is low, they don’t have to charge high price to the customer but sometimes, they have to increase the price to meet the market demand.


Differentiation of strategy is also one of competitive advantage for the organization, as the different in product can create a good competition among the competitors. The HRIS can help the organization to identify the differentiation strategy that can be used to compete. In innovation of strategy, the HRIS system can help the innovation and ideas of employees to be used as an alternative for the management to make decision. In order for the organization to enter larger market, they must have growth strategies, so that they can apply the technology, in order to surpass their limit and achieve the organization goal even in the global market. Last but not least, the alliance strategy, involves making an alliance with the company that have benefit for the organization.

I have made use the knowledge that I received from Harvard Business Study and elaborated it in my understanding. After the case study, I have made use of the knowledge and achieved complete understanding on how the HRIS can affect the organization and give it competitive advantage.

                                                                                                                                                                                                                                                                      (400 words) 

Reference :

1.Durai, P., ( 2010), Human Resource Management, Dorling Kindersley, India.
2.T.V. Bondarouk, H.J.M Ruel, J.C Looise, (2011), Electronic HRM in Theory and Practice, Emerald Group Publishing Limited ,UK.