The Role Of Information Systems In Strategic Decision-Making In The Beauty Industry
Abstract
This study aims to analyze the role of Information Systems (IS) in supporting strategic decision-making and enhancing the competitiveness of the cosmetics industry in Indonesia and China. In an increasingly competitive global environment, the use of information technology has become a critical factor that determines a company’s ability to respond to market dynamics. This study also highlights the disparity in digital maturity between the two countries, which affects the competitive position of their respective cosmetic brands. By employing a descriptive qualitative approach and secondary quantitative data analysis, this study synthesizes findings from journals and industry reports to provide a comprehensive understanding of the role of IS in supporting business strategies. This synthesis helps explain how technology can enhance decision-making processes and operational efficiency. In China, brands such as Skintific and Pinkflash demonstrate that the use of big data analytics and artificial intelligence (AI) provides significant advantages. Skintific, for instance, utilizes algorithms to analyze consumer preferences and predict market trends, enabling the company to develop more targeted products. The use of such technologies has even increased operational efficiency by up to 30%, emphasizing that investments in IS can generate substantial strategic impact. Conversely, Indonesian brands such as Wardah and Somethinc still rely on traditional CRM systems. Although they experience approximately 15% efficiency improvements, the potential for advanced technologies such as predictive analytics remains underutilized. The lack of IS integration and limited use of deep data analytics make Indonesian companies slower in innovation compared to Chinese brands. The main challenge for Indonesian companies lies in the limited skills of human resources in data analytics and information technology. Stronger IS integration, strategic use of data, and improved digital competence are essential factors for enhancing innovation and competitiveness. In conclusion, increasing IS adoption, strengthening analytical capabilities, and developing human resources are crucial steps for the Indonesian cosmetics industry to compete and grow in the global market.
Keywords: Artificial Intelligence; Big Data Analytics; Competitive Advantage; Cosmetics Industry; Information Systems
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Open Access
HUMANIS (Humanities, Management and Science Proceedings) is a national peer reviewed and open access journal that publishes significant and important research from all area of agroindustry.
This journal provides immediate open access to its content that making research publish in this journal freely available to the public that supports a greater exchange of knowledge.
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