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Benefit of information system for business Essay

After several years of turbulence of internet stocks and the resulting failure of many companies, it is easy to understand the impact of information system in daily life. Yet, everyday we read article about IT technology helping the growth of the business. They are many advantages that most people agreed: they create value largely or exclusively through the gathering, synthesizing and distribution of information, they formulate strategy in ways that make management of enterprise and they use technology-mediated channels which are subject to measurement and tracking in unprecedented and granular ways. With those advantages, the company can gain a better position in the furious competition.

Among the main advantages of the information system been used in the business are its ability to facilitate business activities with huge amount of information and organized resource and the ease of transaction in terms of speed and cost. In this report which is presented to Mr. Oracle, the manager of Basket Company, I am going to exam the three vital roles that information system can benefit for the business:

Support of its business processes and operation,

Support of decision making by its employees and manager

Support of its strategies for competitive advantage

In the traditional business environment, business operating is a manual, time-consuming and labor-intensive process involving requests for quotation, purchase order submissions, order approval and confirmation, shipping, invoicing and payment. But with the help of information systems, business can gather information more quickly at a relatively low cost. For example, 1800-flower Company provides a broad range of give products. The company’s information system collects and stores data on birthday and invitations, as well as a record of gifts send to specific recipients.

It maintains a customer information file holding all such data which alerts them of forthcoming events. At the appropriate times the company sends customized message to the customers with suggestion for flowers and presents. The company gains a world-wide reputation. Therefore, good management information systems fast the business operation and use resource more effective. Basket Company also involves similar business actives we discussed above, by equipping the management information system, will greatly support business operation.

Now the competition of basket market is very furious, it is not enough to improve only the product, we should impress the customers as a person who cares them more than their selves. To achieve the goal, we have to identify the trend of customer needs. Like large office goods supplier—Staples. The company system maintains lists of previously ordered items. Over time, Staples learned a great deal about its customers’ preferences and use that information to offer new items. We value our employees as they play an important role in company success, but only with the helps of those tools, our employees and managers can easily make the decision on buy from supplier and predicate the profits. Thus, the good management information system plays a more important role in the competition.

One of the outcomes of information system is the strategies for competitive advantages. The three basic strategies for competitive advantages are cost leadership, differentiation and focus. Management information system can have a considerable part to play in a competitive strategy, cutting the labor and administration cost during business operation, the business can sell goods or provide services at a price that is lower than the competitors. Surveys and feedback sessions will be conducted from detailed transaction records and various data to access the ongoing project.

To sum up, management information system is necessary to meet the extensive and diverse market competition. It supports business operation, support decision making and gain strategies for competitive advantage. If we use information system in our business, the company will have higher chances to success.

Leppert, P. A., 1996. Doing Business with new technology. Fremont, California: Jain Publishing.

David whiteley 2000 introduction to e-business McGraw-hill international UK

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