In order for our nostalgic, brick and mortar record store to continue its success and remain afloat in today’s rough economy our first objective is to consider the right technology systems needed for our business. Information technology can help us in many ways. This includes keeping records of inventory, company payroll, sales, and tracking return customers. There are five types of systems in which would be helpful for us to look over and review.
1. Functional area IS- This system allows for automated payroll by tracking employee hours, tax rates, hire date, and personal information used by management.
2. Management information system- This system can produce reports summarized from transactional data. This will allow us to track inventory.
3. Transaction processing system- This is the point of sale terminal where customers purchase our merchandise, even at a self-checkout station.
4. Electric commerce system- This system gives us access to the web. With the web we are able to market and sell products electronically.
5. Enterprise resource planning- This system combines all functional areas within one database.
All of the systems listed above will help the business even if some may pose a tiny drawback in certain areas. With our business being very physical, with a personal face-to-face customer experience, it would be best to have many options that would benefit our business and our style of handling customers. Understanding these different systems will also help us improve our managing skills.
The table below briefly describes the benefits and/or drawbacks within each system. System
Functional area IS
Automated employee tracking (hours, personal info, etc.)
Forged hours of work. Access to sensitive information
Management information system
Easy inventory tracking
Transaction processing system
Tracks all purchases made within the store
Theft at self-checkout
Electric commerce system
Expand merchandise to the web for high profits
Computer glitches, non-updated online stock
Enterprise resource planning
Easy access to all department data
Access to sensitive information
Although we run a very simple record store, it is extremely important to keep our technology and information systems updated. These are five different systems that are typically used in all stores that help management and employees serve their customers.
Functional area IS. Tracking employee schedules and hours will help to pay the employees for their work or even prevent over paying them. A slight drawback may be forged hours of work where an employee could swipe out later than their worked hours. Management information system. This system provides easy inventory tracking. It makes summarized reports of all merchandise bought and sold from the store. This systems information could be automated or manual, allowing employees or management to input data. Transaction processing system. This system is self-explanatory; it processes the transactions in the store. This is mostly done at the point of sale terminals operated by cashiers or at self-checkout stations. The only drawback I see would be theft. Automated self-checkouts may be too much for our store, but it would be good to keep it in mind. Electric commerce system. This system allows access to the web, allowing for electronic sales.
Often times I have experienced online stores not being current with their online stock. This may go hand in hand with the management information system mentioned earlier. Enterprise resource planning. This system integrates all functional areas into one database. Easy access to any information needed would be helpful to management and employees. The only setback would be the ability to access unnecessary information that should only be seen by certain personnel. This system must definitely come with password access.
In conclusion, implementing each of these systems at our record store will ensure proper operation from management and employees while still keeping our nostalgic, brick and mortar style. Understanding these systems is important, but upholding our flare of business is our key component.
R. Kelly Rainer Jr. (2011). Information systems: Concepts and management. Retrieved from University of Phoenix, BIS220 website.