Management Business Information Systems

Questions: Complete the following tasks and submit your answers as report. Make sure to follow the requirements and report structure mentioned below under a separate heading.As the business/IT consultant, you need to advise Catherine Siddothi on possibilities that would best suit the requirements. She will need advice on what types of information systems can help the business and how the introduction of information systems will impact the business. You need to write a report which should cover the following tasks: 1. Define information systems; explain how they work; and describe their benefits for business. What types of information systems could be used to support PMF? 2. Explain how these information systems could help PMF in managing the business. How will the introduction of information systems affect management decision making? 3. Use Porters Competitive Forces Model to explain how these information systems could be used to gain competitive advantages. 4. What are the information requirements of PMF? What business processes should PMF consider making computerised? Why? 5. Explain how collaboration and communication among key stakeholders could be supported using information systems. Explain the use of computer networks (intranets and extranets) and the Internet to serve their needs. 6. What management challenges will affect organisational change during the implementation of the computerised information system? 7. State and explain the security and ethical issues may arise from the introduction of information systems in the business? Answers: Introduction: In present situation, technological evolution has made information management system as an integral part of any businesses. With the increasing number of obstacles arising in the market place, every organization is also trying to implement different technologies so that they can able to gain competitive advantage in the market. The assignment also deals with a similar case study that illustrates the kind of challenges that a small business namely Pepper Mint Food (PMF) has to face in order to run it properly. The case study mentioned an entrepreneur namely Catherine Siddothi who started the Pepper Mint Food company on her own kitchen. From the beginning, the business has able to gain success with its unique foods and services. However, with the increasing size of business Catherine has facing many challenges regarding managing information and communicate with all the employees in the company. The assignment will critically analyze how the introduction of information management system can help PMF to manage the business much more effectively. Information system: An information system is a system that assesses and analyzes business information, captured continuously form both internal and external sources of an organization. It is extremely crucial for the success of the organization. Timely information provide basis for making important business decisions such as pricing, packaging, media selection and distribution. Effective decision-making is extremely important, as it will help the company to counter any challenges from the market (Chang et al. 2013). The use of information system also helps the company to smoothen the communication process, which is extremely important to minimize work related confusion at the office premises. Types of information system for PMF: Even for a small size business like PMF, utilization of single system cannot help the organization to use all its information effectively (Abdelhak, Grostick and Hanken 2014). Since, a business has to maintain different kind of data in order to run its operations effectively. Pepper Mint Food also has to combination of different system in order to gain competitive advantage in the market. Therefore, identification of information system is necessary for the company. PMF will also have to select information system based on two perspectives, functional and constituency. Functional perspective will help PMF to identify a system that will help to smooth the operation al function of the company. On the other hand, constituency will help to identify a system for the group of customers that the organization serves. In functional perspective, there are four types of information system such as sales and marketing information system, production and manufacturing information system, accounting and finance information system and human resource information system (Cordray et al. 2015). If PMF utilize these types of information system properly, it will definitely able to improve its existing operational process. There are four types of information system in constituency perspective as well that can play significant role in the success of PMF. These information systems are transaction processing system (TSS), management information system (MIS), decision support system (DSS), and executive support system (ESS). Utilization of information system: Sales and marketing information system: This information system can help PMF by identifying potential customers from the market. This information also can provide PMF an indication about the need of the potential customers (Haux et al. 2013). This is extremely crucial for PMF to capture major portion of the market, as this process can help the company to target its customer much more effectively. Production and manufacturing information system: It deals with the development and planning of the production system. Therefore, this system can enable PMF to control the flow of production. Hence, the system will increase the effective decision-making of Catherine Siddothi. Accounting and finance information system: This system will allow PMF to keep track of all the assets of the company. Therefore, it will make sure that all the assets of the company are utilizing to its fullest for the success of the organization (Power, Sharda and Burstein 2015). Account receivable system will help PMF to store important data of customers. Human resource information system (HRIS): It will help PMF to maintain records of its employees. However, PMF is working with six employees currently. Still, the company has to implement this system so that it can able to utilize all its resources properly. Transaction processing system (TSS): This basic information system will help PMF to maintain information regarding daily routine transaction that is necessary to conduct a business. It is important, as keeping a tract of daily task is very difficult without any information system. Management information system (MIS): The study already mentioned the kind of difficulties that Catherine Siddothi is facing to run its business properly (Galliers and Leidner 2014). Therefore, MIS system will help Catherine to analyze present and historical data of the company. So that she can able to plan and control her decision-making in such a way that will help PMF to grow in the existing market. Decision support system (DSS): This is a key system for any company for taking effective decision. Since, it analyzes the data in much more effective way. It will allow PMF to make decision so that the company can able to grow in the market. Executive support system (ESS): This system will allow PMF to minimize issues within the organizational system. Since, it allows to create an environment that will help Catherine Siddothi to take decisions much more effectively. Porters competitive forces model: This is arguably the most used model to analyze competitive advantage of a particular firm in the market (Lim 2013). The model highlighted five competitive forces that PMF has to consider to judge its position in the market. Traditional competitors: PMF obviously is not the only business that is providing pre-packaged meals in the town. Therefore, like any other organization, PMF also has to share the market with its competitors. New market entrants: The study has mentioned that a new competitor has already trying to grab the major portion of the market with utilization of new technology, which working as a competitive disadvantage form PMF. Substitute product and service: Almost in every industry, customers have many options from which they can choose the product they desire. Therefore, PMF has to keep a close look on the market in order to maintain its position. Figure 1: Porters competitive force model Customers: Customer is another major factor that decides the amount of competitive advantage a company has in the market (Van De Walle et al. 2014). PMF also has to introduce strategies in order to have more customers within the market. Suppliers: Suppliers also play a key role in gaining competitive advantage. Since, the more number of suppliers a company has greater the chances of competitive advantage in the market. Strategies to gain competitive advantage: Low-cost leadership strategy: Utilization of informational system will allow PMF to achieve minimum level of operational cost (Schwalbe 2015). For example, PMF can introduce a efficient customer response system that will directly link behavior of the customer to production and distribution of supply chain. Product differentiation strategy: Information system enhances customer convenience to enable product of PMF. For example, utilization information system will allow PMF to utilize strategies like individually tailored offering that will create a huge impact on the competitive advantage of PMF. Niche market: Information system will enable PMF to narrow their target better than its competitors. It will also support the strategy by providing data to analyze the way the company can actually able to gain the major share of the market. Information requirements of PMF: In order to maintain its position in the market, PMF will have to utilize available information in a structured way so that the company can able to gain competitive advantage in the market. Firstly, PMF will have to gather and store information about its internal process so that the company can perform its operation effectively. Internal information like employee details, employee pays, raw material cost, packaging cost, distribution cost of the company. This information is extremely crucial for the assessment of the company (Katz 2012). As it will allow PMF to understand its position in the market. The company also has to collect external information as well. External information like competitors information, market information is extremely crucial for a company to gain competitive advantage in the market. External information will also allow PMF to assess the strategies of the competitors so that it can able to counter it successfully. Business process for PMF: Before implementing an information system, PMF first have to identify the business process that the company will follow in near future in order to get competitive advantage in the market. Selection of business process is extremely crucial for the running a company effectively. The study mentioned that PMF is facing lot of difficulties to manage its activities properly. Therefore, Management process will best suits PMF, as it will allow the company to set goals and then plan, organize, direct and control the business process of the company (Davenport 2013). In addition, implementation of information system will also help the company to perform these processes properly. Figure 2: Management process PMF should also select management process as it can be computerized easily. Therefore, PMF will not have to spend too much time to understand this business process. Therefore, the implementation of the information system will not affect the productivity of the company. Use of computer networks for collaboration and communication among key stakeholders: In present situation, importance of internet cannot be ignored. Due to internet, competitions among the organization have become immense. Use of internet encouraged many businesses to enter into the market. However, internet also plays a significant role in developing businesses (Letellier and Eppich 2015). Since, it supports certain activities that allow more effective collaboration and communication of the stakeholders. The activities discussed as follows: The value chain model: It depicts specific activities in the company where competitive strategies can be applied where information system can have strategic impact most likely. The use of internet will allow PMF to perform a chain of activities that will enhance the value chain of the company. These activities can be categorized as a part of the value chain model. The performance of this activity can also create effective collaboration among the key stakeholders of the company. Figure 3: Industry value chain Primary activities: Use of internet in the information system will allow PMF relate production with the distribution. Therefore, it will allow the company to create a good bond with all its suppliers. It will also allow the activity like operation, sales and marketing of the company to work more properly. Support activities: Use of internet in the information system will also create opportunity for PMF to maintain a high quality internal infrastructure (Marchewka 2014). It will also allow PMF to manage its human resource, procurement and technology processes properly, which will help the company to increase the boding of the company with its internal stakeholders. Management challenges regarding implementation of the computerized information system: Implementation of computerized information system in a small business structure like PMF is not easy at all. The management of the company will have to face certain obstacles at the time of implementing computerized information system. Therefore, it is up to the management of PMF on how they deal with the challenges so that the company can able to achieve its desired objective. The challenges that the company may have to face described as follows: Job elimination: The major challenge that PMF has to face regarding implementation of information system is the employees fear that the new technology will make them obsolete. Therefore, the company might not need them at all (Deelman et al. 2015). Hence, the management of PMF first has to make everyone educate within the company about the exact reason of implementation of this new technology so that no misconception can able to arise in the workplace. Otherwise, the company might lose its productivity. Security breaches: This is another sever challenge that PMF have to face at the time of implementation of computerized information system. With evolution in technology, hackers are now can easily able to breach the information system of the company very easily. Therefore, it makes the confidential information vulnerable in front of them. Hence, PMF will have to create high security system can cannot easily be breached by the hackers. Security and ethical issues: As mentioned before, security of information is the major cause of concern for every company in present situation. Since, information breaches can actually create a huge amount impact on the businesses of the company. Therefore, it is necessary to keep maintain a high quality security level for the company. However, the company will have to make sure that in order to create a high quality security system; the company is actually following the ethical codes of information system. Otherwise, it might create a huge amount of negative impact on the businesses of the company (Feng, Siu and Zhang 2013). PMF also have to maintain four prime factors such as privacy, accuracy, access and property in order to maintain ethics of information system. Especially, PMF have to make sure that the information system of the company is maintaining the accuracy factor. Otherwise, the whole objective of implementing computerized information system might get lost in between the unethical practices. Conclusion: In modern days, information system has become an integral part of any businesses. Companies are keeping on trying to implement an information system that can give them the opportunity to gain competitive advantage in the market. In fact, many studies have established the fact that no company will able to remain competitive in the market without the utilization of proper information system. However, like any other technologies, information management system also comes with certain obstacles. Hence, it is up to the management of PMF to utilize the information system in such a way that it could able to gain competitive advantage in the market. References: Abdelhak, M., Grostick, S. and Hanken, M.A., 2014.Health information: management of a strategic resource. Elsevier Health Sciences. Borghoff, U.M. and Pareschi, R. eds., 2013.Information technology for knowledge management. Springer Science Business Media. Chang, C.J., Kuo, H.C., Chen, C.Y., Chen, T.H. and Chung, P.Y., 2013. 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