Introduction
The information system provides immense help to the manager in an organization for facilitating easy decision-making. Information means the useful facts and figures that have been retrieved, processed, or also used for information or argument, decision making, or forecasting. Information systems and decision-making are closely connected with each other. An information system consists of a system of people, records of data, and activities that process data and information in an organization. Information systems are different types. They are transaction processing system, decision support system, knowledge management system, database management system, and office information system. “An information system (written IS) represents all the elements involved in the management, processing, transport, and distribution of information within the organization.” (Information system 2009).
Every business organization depends on the information system. It provides great help to the organization for the smooth running of the business. Here, it is proposed to discuss the report adopted by the clothing manufacturing company, Larry’s clothing company This Company also used to their advantage information system in their working. The company recognized the importance and advantages of information systems in the decision-making process. The information system provides great support and contributes to the success and growth of the organization. It includes data collection, data processing, and information sharing. The company has applied a variety of information system tools. These tools can be fruitfully used for making accurate and adequate decisions. It also helps to identify the market demand and changing customer preferences, thus leading to the success and growth of the business. The company used information tools at different functional levels. Such tools provide them with quality information for decision-making purposes.
Findings
Application of information system techniques in Larry’s clothing company
The Larry’s Clothing industry is a textile industry and it concentrated on men’s and boy’s clothing. The company introduces new fashions to develop the business. The benefits that the company derived out of the computerization include high speed in business operation, improvement in accuracy, providing management information, reduction in the total cost of the company, and space-saving inside the organization…etc.
Data collection
“Data gathered from surveys, or input from several independent or networked locations via data capture, data entry or data logging.” (Data collection 2009). The important objective of Larry’s clothing company is to provide maximum customer satisfaction. The company adopts new technology such as e-commerce relating the goods and services offered by the company to its customers. By applying different techniques available with the information system the company was able to assemble proper and dependable data within limited time and price requirements. The company started its e-commerce website with the help of which the customer could make a purchase online. The customers only have to place orders using the facility provided in their e-commerce website of the company; the rest will be taken care of by the company. The company will ship the products according to the online order placed by the customers. This ensures saving of time and money for both of the parties, that is, the company and the customers.
Data processing
Information system techniques are used by the company for the processing of collected data and it ensures quality information for the decision-making process. Data processing is the process that converts data into information or knowledge. A data processing system is usually referred to as an information system. The main elements of data processing are data entry, data analysis, cleaning and coding of data, data transformation, etc. Computerized data storage facilitates data processing on an accurate time basis. It helps the company to have the correct information regarding the production and marketing functions in a timely method.
Information storage is a technique for recording or storing information or data.
“Devices that process information (data storage equipment) may either access a separate portable (removable) recording medium or a permanent component to store or retrieve information.” (Data storage device 2009).
Sharing of information
The Larrys clothing company consists of the various functional department. Sharing of data is an important task in the decision-making process. Information system tools provide help for sharing of information between different functional areas. Heightened cooperation amongst employees and greater coordination between departments is made possible by the company. “The goal of information sharing is to change a person’s image of the world and to develop a shared working understanding. It is an essential component of collaboration.” (Sonnenwald 2006).
Managerial decision making: Information system helps to arrive at strategic and tactical decisions relating to production, marketing, and management functions of human resources. Decision-making is the process of choosing an alternative course of action to achieve desired objectives. It is the process of selection and the aim of it is to select the best alternatives. “This level of decision-making is concerned with deciding on the objectives, resources, and policies of the organization. A major problem at this level of decision-making is predicting the future of the organization and its environment, and matching the characteristics of the organization to the environment. This process generally involves a small group of high-level managers who deal with very complex, non-routine problems.” (Chapter9: marketing information system n.d.).
Flow and management of information within the organization:
In Larry’s clothing company the information flow is facilitated by the advanced information system technique. For transferring of information in between the department’s fax, telephone, email, etc are used. Fax means transferring published documents between the departments, while email and voice mail are used for transferring data between the partners in the supply chain system.
“In the clothing industry to introduce advanced management ideas and management information systems, enterprise management is to improve the only way, which, distribution management and supply chain management and enterprise is a top priority.” (So do not stop fashion – clothing industry analysis of the application of information systems 2009).
Decision support system
Larry clothing company has a decision support system. A decision support system is a group of physical and computer-based tools that help in a decision-making activity. The decision support system provides assistance to the business owners and executives and managers of Larry’s clothing company to solve problems. In the company, the information system helps to improve the business through better forecasting, developing product performance, and the availability of resources. Decision support systems are of two types. They are structured decisions and unstructured decisions.
“A computer-based system that enables management to interrogate the computer system on an ad hoc basis for various kinds of information on the organization and to predict the effect of potential decisions beforehand.” (Decision support system n.d.).
Examples: In the manufacturing and marketing department of Larry’s clothing company, information sharing is assisted by the techniques of the information system. These techniques help the marketing segment decide on matters such as production and distribution of particular commodities and about the production target.
Analysis of the findings
In the marketing of textiles, Larry’s clothing company achieved a standard position in the market through tactical business strategies. Information is an important tool to face the competition. Information tools help identify the competitors of business. Accurate decisions making also helps to improve the efficiency and effectiveness of the business.
“Marketing information provides input to marketing decisions including product improvements, price, and packaging changes, copywriting, media buying, distribution, and so forth. Accounting systems are a part of marketing information systems providing product sales and profit information.” (Marketing information system 2009).
The Larrys clothing company makes customer surveys with the support of data gathering tools arranged in the websites. To suggest the application of effective production and distribution methods, correct information about the different options available in the company has to be deeply analyzed. Marketing information system contributes towards making tactical and strategic decisions on market growth, another important advantage is transparency. Through the adoption of information system tools transparency about the market opportunities is made available for the business. Larry clothing company ensures the availability of quality data for the decision-making process in the business.
Recommendations
The company adopts e-commerce for the growth and success of the organization. Today E-commerce is extensively used in the world. Commerce refers to an economic activity where purchasing and selling of goods are involved. The main objective of every business is customer satisfaction. E-commerce is the purchasing and selling of goods and services by electronic businesses through the internet. Now E-commerce is changed. A lot of websites are established for selling goods and other materials. “E-commerce may be conducted B2B (business to business) or B2C (business to consumer). But simply put, any website that attempts to make a profit is involved in eCommerce.” (Ward 2009). The company has to improve its operational efficiency through the application of business forecasting tools. This business forecasting technique helps to improve the current decision-making process.
Future directions that the business can take using the information system:
In future years this company aims to further develop the adoption of information systems in all the business functions, including marketing, human resource, and operational control, where the company can adopt the information system technique. In the operational management field, the company can adopt the decision-making applications available with the IS. It will help them enhance the operational efficiency of the organization together with improved cost advantages.
“Information access is an area of informatics and library science which concerns ensuring free and open access to information. Information access covers many issues such as copyright, open-source, privacy, and security.” (Information access 2009). Another important advantage of the company is the security of information. Information security can be breached by the involvement of external parties such as hackers. It can be done in the following ways. “(1) Interception of messages, (2) theft of stored data, (3) information sabotage (i.e., alteration or destruction of data belonging to another party), (4) spoofing (i.e., using stolen information to pose as somebody else), and (5) denial of service (i.e., the deliberate shutdown of cash machines, electric-supply grids, air-traffic control networks, or the like).” (Information security 2009).
Conclusion
The range of activities that can benefit from information technology appears to be unlimited. The main objective of information technology is to overcome existing barriers in business such as high transaction costs, inefficiencies in production, distribution, and supply, etc. In the company through the application of information system techniques, its market competency is greatly improved. The management information systems in the company help the business in the fields such as synchronized control and integrated processing, information diffusion, capital flow, and information flow. The flow of information between the departments and between the supply chain managers is greatly supported by the MIS of the business. Thus it provides an integrated comprehensive management system to the company which increases the competency and profitability of the business in the industry and thus its business growth is ensured.
References
Chapter9: marketing information system: decision making: strategic decision making n.d., FAO Corporate Document Repository, Web.
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Data storage device: wikipedia: data storage devices 2009, Answers.com, Web.
Decision support system n.d., Answwer.com, Web.
Information system: concepts of an information system 2009, Kioskea, Web.
Information access 2009, Answer.com, Web.
Information security: intelligence encyclopedia: information security 2009, Answer.com, Web.
Marketing information system 2009, Answer.com, Web.
Sonnenwald, DH 2006, Challenges in sharing information effectively: examples from command and control: abstract: introduction, IR Information Research, Web.
So do not stop fashion – clothing industry analysis of the application of information systems 2009, SourceJuice, Web.
Ward, S 2009, E-commerce: definition, About. com: Small Business: Canada, Web.