Introduction
Costco Wholesale Corporation, the company chosen for this task, can realize much importance of information management for its operations. Generally, Costco uses information management to execute its strategies and attain business objectives. Information management is designed to add value to the company directly or indirectly. Hence, the critical areas of focus have been to enhance efficiency, profits, and social responsibilities. The company, however, has developed its human resource, business process, culture, and IT infrastructure to ensure that the importance of information management is realized.
First, information management is used to enhance efficiency and productivity at Costco. It has reduced the time spent searching and retrieve data through document management systems. Consequently, efficiency and productivity have increased significantly at the company. Second, the fundamental reason for adopting information management at Costco is to reduce costs of operations. Information management systems save administrative costs related to staffing, office spaces, and filing equipment. These are direct cost-cutting benefits to Costco. Third, any executives with relevant data can create a competitive advantage through data-driven decision-making. Costco has consistently relied on data and analytics for better management decision-making. These data are retrieved from databases for analysis, and then insights are used to implement decisions that are more informed.
Moreover, they have the advantage of readily available information. Fourth, Costco has relied on information management systems to protect vital data from vulnerability posed by any form of disaster. Effective and protected information management platforms have ensured that data integrity and confidentiality are maintained in the company. For Costco, which is a large company, Enterprise Resource Planning (ERP) has been effective for data protection. Finally, Costco promotes professionalism through its IT platforms. The use of an information management system has emerged as the standard, best practices in the industry, although this may be difficult to quantify from cost-benefit perspectives.
Importance of IT Infrastructure
Academics and practitioners have presented IT architecture as a means for attaining success with information management. Hence, there are fundamental impacts Costco has realized from IT architecture on information management. These impacts may be evaluated from two imperative perspectives that focus on IT architecture. First, IT architecture creates extrinsic values for information management. Extrinsic values are reflected on different aspects of performance improvements in areas of information management. In this respect, Costco demonstrates such impacts based on positive outcomes on resource-related achievement.
These impacts mainly include quality improvements, savings realized, reliability, and availability of information management systems. Another significant area of consideration for the company is process and activity impacts on information management. These performance elements reflect business efficiency, effectiveness, and attractiveness, among others. Finally, strategic performance impacts from IT architecture are also notable in information management. These outcomes account for social responsibilities, internal and external stakeholders’ satisfaction, and ethical consideration, among others.
Second, IT architecture impacts on information management are notable in terms of intrinsic values (Pessi et al., 2011). That is, IT architecture ensures that Costco is focused on handling information management in the right way with the right tools. Costco is able to maintain excellent information management because of the architectural framework provided by IT architecture. Costco is large, diverse, and dynamic. These elements require system interoperability and delineation that can only be provided through IT architecture. In this regard, the company has been able to realize business agility and manage complex processes across different franchises.
However, Costco must strive to capture intrinsic values from IT architecture reflected on information management. Such notable indicators include responsible investment in information management, time to value, management and coordination of critical investment decisions, and management of impacts of long-term alignment within the company with IT architecture (Pessi et al., 2011).
The IT architecture impacts the effectiveness of information management or otherwise at Costco. It is claimed that information management involves everyone in the organization. In this regard, Costco uses information management decisions to achieve certain strategic business objectives. People who use Costco’s information are key stakeholders who use various technologies to achieve different business needs. All critical stakeholders are normally involved in information management solutions to ensure that they are aligned with business needs.
IT architecture requires individuals involved in technical aspects of information management to collaborate in order to develop sustainable solutions for information management with broadly defined goals and objectives. These are major IT implications for Costco. The company must ensure that various business units work as a team, accept responsibilities, and commit resources to support information management under the IT architecture for its effectiveness.
IT architecture at Costco reflects operational alignment as the company strives to balance between business needs and information management systems. The systems are designed in a specific manner to cater to the diverse business needs and environments of Costco. At the same time, IT architecture shows the strategic alignment of the company’s business IT architecture and information management systems. On the contrary, the company may fail to align IT architecture and information management systems. Hence, Costco has always focused on formulating effective guidelines for business operational alignment and long-term IT strategic architecture alignment (Pessi et al., 2011).
Data Storage Methods for Databases
Several data storage methods concerning database, data warehouse, and/or data mart are available for Costco. The company can store its data in database programs such as Microsoft Access, Oracle Database, and SQL Server. These methods and related tools of data storage ensure that data are kept as complete units. End users can easily conduct queries and manipulate variables and their subsets for entering new information. They are, however, tedious to work with and require technical skills, particularly with the database design and data variables.
Spreadsheet programs such as Microsoft Excel have also been used to store data because of their ease of use and data input. In addition, they provide simple data views. However, data stored in spreadsheet programs may lack explicit definitions, could be difficult to manipulate and are exposed to errors.
Another alternative data storage solution for the company is cloud storage. Cloud storage offers online data storage solution, and it is significantly different from the old methods of data storage. Traditional methods of data storage are gradually replaced, but they have provided portable, direct means of storing and accessing data. Cloud storage offers flexibility in terms of accessibility and storage space. In addition, users can store and gain access to their data at any location globally once connected to the Internet.
The three data storage methods have been selected because of their popularity, usability, flexibility, and costs. The most common means of data storage are database programs. Spreadsheets are also readily available, but not commonly used due to their limited features. Cloud storage, however, is an emerging technology that many organizations will soon adapt to exploit its advantages. Nevertheless, users must first tackle security issues and other technical challenges noted with cloud storage applications.
Conclusion
The optimal storage method for Costco would be cloud storage. Cloud storage offers several advantages to organizations. First, end users can easily synchronize data between various devices. Second, end users can easily add and share various file formats and gain access to them when needed. It can handle large files through a drag and drop feature. Third, cloud storage platforms are usually always operating. Local storage devices are prone to failures, and data may easily get lost.
On the contrary, cloud storage offers the required uptime to gain access to data easily. Data do not disappear when online platforms experience downtime or connection failures. Fourth, the cloud storage platform is normally safe than in-house storage locations. Physical risks such as theft, system breakdowns, fires, and technical challenges may affect the system. Cloud storage applications have inbuilt solutions for some of these challenges at every point of data storage.
Despite these advantages, cloud storage still faces challenges. Data privacy and security are major concerns for several users. Third parties are responsible for these data, and some firms are reluctant to store their vital information with such service providers. Servers used are shared and could be exposed to attacks and malware. Hence, vendors continuously strive to ensure data safety and privacy through various security policies. Costs of cloud storage could be cheaper relative to other storage options in the end. However, cloud storage is relatively new and, therefore, could be expensive for users. Costs related to hardware, data centers, and unknown events make the method unsuitable for some users. Therefore, Costco can only work with professional cloud storage vendors.
References
Lagerström, R., Sommestad, T., Buschle, M., & Ekstedt, M. (2011). Enterprise Architecture Management’s Impact on Information Technology Success. Proceedings of the 44th Hawaii International Conference on System Sciences (pp. 1-10). Hawaii: The Institute of Electrical and Electronics Engineers. Web.
O’Brien, J. A., & Marakas, G. M. (2011). Computer Software. Management Information Systems (10th ed.). New York: McGraw-Hill/Irwin. Web.
Pessi, K., Magoulas, T., & Hugoson, M.-Å. (2011). Enterprise Architecture Principles and their impact on the Management of IT Investments. The Electronic Journal Information Systems Evaluation, 14(1), 53-62. Web.