What is an information system? An information system can be defined technically as a set of interrelated components that collect, process, store, and distribute information to support decision making and control in an organization. In addition, information system also helps managers and workers analyze problems, visualize complex subject, and create new products. “In 2005, more than 40 million businesses registered their company in internet sites. More than 35million people receive their news online.
Table of Content
Reasons of information system are so important for Dirt Bikes USA
The changes of the business function of Dirt Bikes USA
The Key management challenges involve in building, operating and maintain system information
Recommendation of Dirt Bike’s information system
E-commerce and internet advertising are booming: Google’s online ads revenues had achieved $6 million in 2005, and internet advertising continues to grow at more than 30 percent a year, reaching more than $11 billion in revenues in 2005. The results has led many experts to believe the era of massive recessions and booms of the typical business cycle is over, replaced by much smaller contractions and expansions and strong long-term growth. ” – Management information systems [Tenth Edition] Loudon & Loudon. From the paragraph above, we know that internet is growing in a very fast speed every year and it achieve lot opportunities.
The internet now is very cheap and it is affordable by everyone, which means everyone can online at home and they can shop in home in anytime. Company can save cost in hire employees to serve and the internet can run 24/7 at a week. The transaction can deal in just few clicks. No dough, this is another way to decrease cost and increase sales. The role of information systems in business today. As managers, most of you will work for firms that are intensively using information systems and making large investments in information technology.
If you make wise choices, your firm can outperform competitors. If you make poor choices you will be wasting your investment. Reasons of information system are so important for Dirt Bikes USA. The meaning of transform of digital form that I mention before is information systems automate many steps in business processes that were formerly performed manually, such as checking a client’s credit, or generating an invoice and shipping order. With the properly transformation, Dirt Bike can apply the information system in order to survive in the crucial business world.
Moreover, the analyze of business processes in dirt bike, dirt bike can achieve a very clear understanding of how the business actually works. For instance, by analyzing the customer service process, the company will know that how long it take to answer to customer when he or she request for a service, how many steps are involved, how many people are involved and the costs. By applying the business analysis, the company will know how to make the company more efficiency and effectively. As we know, the information system is an essential tool for a business firm.
Specifically, business firm invest heavily in information system to achieve six strategy business objectives. Operational excellence New products, services and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival Without information system in this twenty-first century, the company may not survival anymore. Hence, information technology and information system are some important tools for manager to achieve a higher level efficiency and productivity. The changes of the business function of Dirt Bikes USA.
The goals of a company is to seek improve the efficiency of their operations in order to achieve higher profitability. Dirt bikes can apply information system in his system like Wall-mart, the largest retailer on Earth, with the power of information system coupled with brilliant business practices and supportive management to achieve a world class operational efficiency. Wal-Mart using RetailLink system to link its suppliers to every Wal-Mart’s stores worldwide. As soon as customer purchases an item, the supplier monitoring the item knows to ship a replacement to the shelf.
Dirt Bikes does not sell directly to retail customer, it relying on a network of 40 distributors. A small percentage of Dirt Bikes is export their motorcycles to Europe with independent distributor that sell other brands of motorcycles. Dirt bikes is using typical order system, the sales department must works closely with those Distributors. By using a better order system, it helps dirt bikes enhance its operation progress, the system will automated receive the order and telling the manager which distributor is ordering their products.
Besides that, the system can auto inform the supplier of Dirt Bikes that the goods are sold. The supplier will know to ship a replacement for that. This system will reduce the human power and paper form for the production department of Dirt Bikes. Another example, Toyota, the largest auto maker in the world. “With the aids of information system, Toyota produces the vehicle based on actual customer orders rather than “best guesses” of what to stock in dealer showrooms, so the company only builds the cars that customer want, when they want them, without additional delays or quality problems. L&L Dirt bikes can take it as its benchmark, they build when customers want it, so Dirt bikes won’t happen something that the products are keeping in their store or showrooms for ages. Dirt Bike does not directly sell to retail customer, and even Dirt Bikes are producing their own bikes. They should have retail shop to sell their own bikes instead of fully dependent on the distributors. With the own retail shop, Dirt Bike can build the good impression and customer services for customer. It helps build up customers confident as well. These bring a lot advantages for sales and marketing department of Dirt Bike also.
The department can have another way to sales their products, and they get higher profitable and reduce the cost and storage space. When a business is really serving their customer well, the customer will satisfied the price that he buy and return to purchase again and again. Likewise, the intimacy of supplier can provide lower costs. The information system can help to record the customer or supplier’s so that Dirt bikes can fulfill their needs anytime Typical managers are making decision without the right information at the right time to make an informed decision.
Managers who are depend on forecast in luck. The result properly is misallocation of resources, and poor response times. These poor outcomes raise costs and loose customers. Information system can enhance decision making instead of making decision ‘blindly’. It possible for mangers to use real-time data from marketplace when making decisions. With the information system, Dirt Bikes manager can response in very short time. For instance, the manager can instantly allocate repair resources to affected areas, inform consumers of repair efforts and restore service in fast way.
When the Dirt Bikes can achieve those business objectives, which mean Dirt Bike are already achieved a competitive advantage. Do better compare to competitor , price lower then competitor, services better then competitor , operate and response is faster when due to customer and supplier. To survival in the crucial business world, the investment for information system and technology are necessities. The necessities will keep the company survive longer. For instance, the Citibank invent ATM machine at 1977 to attract more customer.
Today, ATM services consider a requirement for a bank and surviving in the retail banking business. Therefore, the profits of Dirt Bikes is decreasing year by year, information system is a key to keep dirt bikes surviving for longer. Again, information system changes the nature job of human and the culture of business, even a business model of Dirt bikes to survive in business world. 4. 0 The Key management challenges involve in building, operating and maintain system information. The information system is in investment for a company, it may be a burden or cost when the company did not get the return.
Before build an information system, the system may not cheap and the management level may hard to evaluate the system can obtain the meaningful return from it. The information system becomes an investment challenge when building it. Besides that, to maximize the benefit from those information systems, the company has to make some changes or redesign the employee, management behavior or even business model. The changes of company might be very challenges for a company if their having goals or strategies that need to change. It also some challenges for operating an information system, since the technology is growing rapidly.
The company hard to simulate value for current or future hardware and software. When it come to operate stage of information system. There are some challenges for the employee to operate on it. The usability is too hard for employee to learn to operate on it, they information system might abandon by the user. So, the information system must be build with user friendly so that employee can easy get used to it and maximize the usage of the system. A user friendly interface might be hard to implement because it need some skills to invent and testing repeatly.
If the employees are not familiar on it, it may cause the transaction become slow and may lose the opportunities. Maintaining systems may not easier since the company may grow bigger and the technology is growing very fast. The company may need to invest a lot in maintaining cost. Besides maintaining cost, the another challenges for the company is the secure of data when they come to maintaining stage, the data is confidential and important for a company. Not every company has IT department to develop and maintain on their own system, so they need to hire outsources to help and solve their problem. f the information system accessed by outsider then it may cause the company in a chaos stage. The information system bring a lot advantages and disadvantages to a company, before implement an information, a accomplish plan is needed. Management level should decide according to their organization goals, model, culture and funds. 5. 0 Recommendations As a manager, I will recommend Dirt Bikes some information systems in order to enhance the competitive of the company. As we know that, the information system is bring a lot advantages to a company. Firstly, I would like to introduce Manufacturing and production system to production department.
This system will monitor the material in the storage, scheduling the products, maintenance on the production facilities. It wills establishment all the production goals. Secondly, I will recommend the sales and marketing system to sales & marketing department. These systems are serving different organization level with different function. At Strategic level, it provides 5 years sales forecast. For Management level, the system can determine prices for products and services. For operational level, the system can provide enter process and track orders.
The company can get more information from the system about the buying trends. For Admin department, I will recommend human resources information system. This system major functions on tracks on employee training, skill and performance as well. Besides that, the system also provides monitor the range and distribution of employee wages, salaries, and benefits for the management level. The strategic level can use this system to plan the long term labor force needs of the organization. 6. 0 Conclusion In conclusion, information system can help the organization enhance the efficiency and effectively.
Hence, the information system becomes essential tool for a organization, the organization cant survival without information system and information technology. The information system becomes a necessity of doing business today. After this assignment, I will able to understand the role of information system within an organization and recommend appropriate management and organizational behavior approaches for the information systems function. I will able to apply the information system to a company that the company lacks of. References Kent. “Dirt Bikes USA – Questions. ” Dirt Bikes USA Project – ADSI 6601. 5 May 2007. Web. 1 Mar. 2010. http://adsi6601project. blogspot. com/2007/05/dirt-bikes-usa-questions. html. Laudon, Kenneth C. , and Jane Price. Laudon. Management Information Systems: Managing the Digital Firm. Upper Saddle River, NJ: Pearson/Prentice Hall, 2006. Print. Srhrric. “Free Essay Challenges of Information Systems. ” ECheat – Free Essays, Free Term Papers, Custom Essays. 17 Apr. 2007. Web. 20 Mar. 2010. http://www. echeat. com/essay. php? t=33113. “What Are Information Systems? ” Graduate Schools – Postgraduate Courses Worldwide. Ed. Gradua. Web. 17 Mar. 2010. http://www. internationalgraduate. net/information-systems. htm.