List of Possible Information Systems to Use
|Type of the System||The System||Benefits for the Business||Drawbacks|
|Office Information Systems||MS Office Outlook||Easy to organize information and ensure communication of employees, cheap (Stair & Reynolds, 2013)||Staff needs training|
|Transaction Processing System||Online transaction processing (OLTP)||Supports day-to-day operations, optimize supplier processes (Whittington, 2013)||Needs maintenance|
|Management Information Systems||Inventory Exception Reports||Updates information, draws attention to problems which need immediate solutions (Kelkar, 2012)||Needs maintenance|
|Expert Systems||AtTask||Provides structured data on various aspects of business important for the executive (Pandey, 2014)||Costly, may be superfluous for an old-fashioned record store|
|Decision Support Systems||optimize||Helps make decisions||Needs maintenance|
Brief Description of the Necessary Programs
Importance of Information Systems
Information systems are crucial for contemporary businesses as the modern business environment is very competitive, and markets develop rapidly. The store will focus on selling records, and this market is also very competitive. There are lots of offers on the market.
Moreover, people have loads of opportunities, and they often do not even need to go to a store (online purchases are very common). Hence, the ability to meet customer’s needs and expectations and provide them with unique products and services is essential for a successful record store. Information systems will not come up with creative ideas on a better range of products or services.
However, they will help managers to save time as they will not have to think of operational issues. Information systems will help optimize all processes. The effective business operation will make the business more efficient (see Fig. 1).
Even though the company is rather small, it does not mean it can be competitive without the use of information systems. Admittedly, it is necessary to make sure that the use of these systems is cost-effective. Therefore, the record store will be useful if the partners make use of the necessary information system with a focus on transaction processing system and management information systems.
This is one of the most important goals of any business person. This can be achieved through effective use of efficient software. Stair and Reynolds (2013) state that all types of information system help reduce costs due to optimizing a variety of processes. Thus, MS Outlook may be sued to make communication more efficient. The partners, as well as employees, will be able to manage their time effectively.
Admittedly, the most effective system is a transaction processing system which helps manage resources. Since the business is quite new, managers may lack the necessary experience and make wrong decisions, which will lead to additional expenses and even losses. Decision support systems will enable inexperienced managers to make the right decisions (Pandey, 2014). It is necessary to note that this system is quite costly and can be replaced by a management information system, for example, inventory exception reports.
Optimization of supplier processes is closely connected with the optimization of the company’s performance and the reduction of costs. OLTP will help the store operate effectively and maintain proper communication with suppliers (Whittington, 2013). It is crucial to have all products available as being short of goods can mean dissatisfaction of customers and, as a result, losses. This information system will help manage supplies and sales.
Kelkar, S.A. (2012). Software project management: A concise study. Delhi: PHI Learning PVT. Ltd.
Office information system service. (2014). Web.
Pandey, J. (2014). Geographic information system. Delhi: TERI Press.
Stair, R., & Reynolds, G. (2013). Fundamentals of information systems. Boston, MA: Cengage Learning.
Whittington, O.R. (2013). Wiley CPAexcel Exam Review 2014 Study Guide, Auditing and Attestation. Hoboken, New Jersey: John Wiley & Sons.