Information technology (IT) refers to the technology used for dealing with various types of information, such as business data, images, or conversations. The wide use of computers and the Internet has made IT an essential element of the contemporary world and business world in particular. IT has changed the way enterprises communicate with each other and their customers, as well as the way they manage their business data. This report will explore the impact of IT on Bossini, a clothing company headquartered in Hong Kong.
Bossini’s business is concerned with retailing and distributing men’s, women’s, and children’s apparel under its own brand. The company uses different types of information systems to manage its business data. Since sales are the basis of Bossini’s business, it utilizes a transaction-processing system to manage shipping records, sales order entries, and other information related to sales. Another type of information systems used by the company is a decision support system that collects and synthesizes important information to foster informed decision-making regarding particular issues. Bossini also uses an executive information system to keep track of the crucial data coming from all its multiple locations and inform its strategical decision-making. Managers of the company implement a management information system to monitor and improve the organization’s financial and operational performance. Furthermore, Bossini uses Software AG’s webMethods ESB to integrate all its information systems and synchronize data.
IT is important in the context of clothing companies for several reasons. First, decision-making in such enterprises largely depends on demand and supply. A failure to determine the right amount of particular garments to be manufactured and distributed may lead to poor sales, outdated stock, and customer dissatisfaction. Secondly, since procurement in the clothing industry takes much time, apparel retailers should place orders beforehand. To be able to do this, managers should analyze trends and forecast the demand for their products. Finally, IT plays a significant role in e-commerce, which is a modern way of running a business. The online marketplace allows for reaching potential customers, collecting their preferences, and making individual offerings.
Bossini’s stakeholders include mainly employees, customers, suppliers, and stockholders. Employees of the organization need such information as shipment details, the current and expected demand for their products, and the financial and operational performance of the organization. Customers require data about pricing, products available in stock, and delivery dates for orders placed online. Suppliers need information about production requirements, such as a forecast of the demand, the organization’s customers and markets, and production schedules. Eventually, stockholders’ main interest is financial data of the organization, such as revenues.
Currently, IT, information, and knowledge add much value to the enterprise. The company’s value for customers increased with its entering the online marketplace. Bossini’s use of IT in e-commerce has allowed customers to get information about available products and prices, as well as receive personal offerings in the form of advertisements and e-mails. Running the business online has also given Bossini an opportunity to reduce transaction and operations costs and lower the number of required human resources. Furthermore, knowledge and IT has facilitated the company’s decision-making and demand forecasting processes.
In the next five years, IT, knowledge, and information could create more value for this company. Bossini could implement IT to speed up its month-end close process or expand its product line based on predictions of customer demand. Overall, IT could create value for the organization by allowing it to reduce unnecessary costs. It would increase revenues of the company and improve its operational performance.