Mergenthaler mis300 1203 a-01 ph 1 ip
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This document discusses how an information system can provide a competitive advantage for SewWorld. It defines key terms like data, information, and knowledge. The goals of implementing an information system are to collect data, convert it into information and knowledge, and use that knowledge to make effective decisions. This supports improving operations, designing strategies, and completing tasks faster and more accurately. The document recommends what types of product, process, and customer data SewWorld should collect. It also defines enterprise resource planning (ERP) software and explains how an ERP system could benefit SewWorld by integrating various business operations.
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Mergenthaler mis300 1203 a-01 ph 1 ip
- 1. Using IS to Stitch Competitive Edge in SewWorld MIS300-1203A-01 Phase 1 Individual Project Sabrina Mergenthaler Colorado Technical University Online Professor Michael Pelosi July 16, 2012
- 2. What is Data? •Raw Facts •Including: -Alphanumeric -images - audio -video What is Information? •collection of data organized in such a way that they provide meaningful and useful content • The value of information is directly Related to how it assists decision makers in achieving the goals of the company. What is Knowledge? •Achieved through comprehension of information •New learning •Development of concepts, theories, and ideas based on information Data, Information, and Knowledge (Oh My!)
- 3. Increasing Competitive Edge with IS Goals of Implementing an Information System •Collect Data •Convert data into Information •Covert information in knowledge •Use knowledge to make decisions about company Effective Decisions Lead to Competitive Advantage •Provides support to complete a task faster, more cheaply, & with greater accuracy and consistency through automation •Provides support to improve day-to-day operations by creating, acquiring, and transferring knowledge •Supports the design of effective strategies to accomplish specific company goals.
- 4. Creating Competitive Advantage begins with Knowing what Data to Collect Products Cost Quality Quantity Time Profit Processes Speed Efficiency Input/Output Costs Barriers People Employee Information Consumer information Name Purchase information Location Buying preference (online/in-store) Frequency of purchases Goal of Product Data •Create new products or services •Enhances current products or services •Differentiate products or services Goal of Process Data •Lock in consumers and suppliers •Raise barriers to market entry •Establish alliances •Reduce costs Goal of People Data •Protect private employee/ consumer information •Generating Job functions •Generate marketing information •Develop target market
- 5. Recommending an ERP •What is an ERP? -Enterprise resource planning (ERP) software: software programs that manage a company’s vital business operations and integrates core business areas such as manufacturing, distribution, financials and human resources offered by vendors such as SAP, Oracle, and PeopleSoft •Benefits •Disadvantages •Right for SewWorld -Based on Transaction Processing System, Management Information System, and Executive Information System
- 6. References Kroenke, D. (2010). MIS Essentials. Upper Saddle River, New Jersey: Prentice Hall. Information Systems in Business. (n.d.). M.U.S.E. Introduction to Information Systems. Colorado Technical University. Retrieved from https://campus.ctuonline.edu/courses/MIS300/p1/hub1/33485.pdf Laudon, K.,& Laudon, J. (2010). Management information systems: Managing the digital firm. (11th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. ERP Software Systems Index for Manufacturing. (n.d.). Top10ERP. Retrieved from http://www.top10erp.org/sap-business-all-in-one-products-10
Editor's Notes
- Introduction One of the ways any business determines success of any campaign is through measuring data. Data can include a variety of details from inventory, costs, purchases, sales revenue, to everything the company might wish to know about their client. These measurements are essential to a business, because it allows executives to make decisions based on proof of what works well, and what needs improvement. SewWorld has many opportunities to not only collect data, but to turn it into the information necessary to make knowledgeable decisions. Throughout this presentation, we will identify the components of data and what type of data should be collected by SewWorld. We will also demonstrate how to use this data to formulate information and demonstrate how that information can assist SewWorld in generating knowledgeable decisions. The conclusion of this presentation will prove how SewWorld can develop its competitive edge using software applications that address the specific information needs of the company.
- Data, Information, and Knowledge (Oh My!) In order to facilitate the incorporation of an information system at SewWorld, we must first come to define certain key points regarding the system. In hopes of eliminating certain complexities, it may be best to begin with the very basics. The basics include the concepts defining data, information, and knowledge. Very simply, data is a collection of facts. These facts may include everything numerically from the company’s expenses, sales, and inventory, to detailed images or textual keywords regarding products and consumers. For example, receipts contain data about sales. Inventory sheets contain data regarding how many products should be in-house, how much is incoming, and what may be outgoing. These data sheets may contain images of the products, they may not. Data regarding consumers might include age, gender, location, and similar features (Kroenke, 2010). We use data to compile information. Information is the interpretation of data into useful and meaningful content (Pelosi, 2012). For example, if we collect data that shows our sales to total $20,000 for the week, what we essentially have done is taken all of the data, and added it to produce a meaningful final output. In turn, we take this information and generate knowledge. Knowledge is our understanding of the information, compiled into complex theories, cognitive suggestions, and concepts (Kroenke, 2010). We effectively receive information to turn it into knowledge so that we made make better decisions. For instance, knowing that our sales are $20,000 per week, and that our costs total $6,000, we understand the profit to be $14,000 for the week. From that we can decide if we need to raise prices, host a sale, and try new tactics to generate greater business. Obviously, this is all just hypothetical information and data, but the point is to show you the simplicity of compiling this data into something useful that will provide SewWorld with an advantage over the competition.
- Increasing Competitive Edge with IS You can almost begin to understand how this all leads to building your competitive edge. By let’s keep things simple. We know we need data, to accumulate information, and to generate knowledge. When we implement an information system, we put in a place a strategy to collecting that data. Best of all, we get this data without having to physically, manually, collect it ourselves. All of this data is stored in computers, under specified labels so that when we wish to retrieve it—to turn it into information—we simply have to push a button. It’s that simple. When we have our information, and we develop the knowledge that our information tells us, we can develop strategies and plans that enhance the company. Decisions based on information systems are going to be those that allow us to complete tasks faster, less expensively, with greater accuracy and consistency, because those tasks have been automated. The information systems will enable SewWorld to improve day-to-day operations by crating, acquiring, and transferring the knowledge to others. For example, if we know a certain technique works best, we share that information—develop a procedure for carrying out the process—and we simply delegate it to an employee. Finally, the system is designed to fully support specific goal strategies. The chart above best demonstrates, this idea, but because data and information is so specific in an information system, we can actually look not only for the weakest link in the chain, but for the speck of rust on that one link causing the breakdown. Now, there’s ways to eliminate just that speck of rust (Information Systems in Business, n.d.).
- Creating Competitive Advantage begins with Knowing what Data to Collect Creating competitive advantage, however, encompasses more than just collecting data and turning it into knowledge. You have to know what data to collect, and how to use the knowledge derived from it. Generally, there are at least three areas in which data can be collected. These areas include data from products, processes, and people. Within each category, there is a series of data which can support the development of a competitive advantage; and the data will revolve around satisfying specific goals of each category. For example, in the products category, our goals include creating new products and services, enhancing current products and services, and differentiating products and services. The means by which we accomplish these goals requires SewWorld to collect data on the cost to produce products, the quality of the products and services being put out, the quantity put out in the amount of time it is put out. Keep in mind the overall goal of the company is to reduce costs, improve quality and quantity of output, and to increase the speed at which these goals are accomplished. Having data on hand that addresses these components, we can address problem areas, or enhance effective areas (Kroenke, 2010). Similar functions are addressed in the processes category of data collection, however, the goals are slightly different. In the area of processes, we are looking at the processes of the company as a whole to accomplish the following goals: Locking in consumers and suppliers to ensure future sales and production Raise barriers that inhibit other competitors from entering the market Establish alliances, and Reduce costs (Kroenke, 2010). In order to measure and direct these goals, we must have data on the speed at which our processes are being carried out; the efficiency of the processes; what are we putting in and what are we taking out of the process; what are the costs of the process; and what are the barriers affecting the process from being done better (Kroenke, 2010). Finally, we have the category of people. People is further broken down into employees and consumers. It is necessary to maintain data regarding both of these people. In fact, in this category, we will see more security come into necessity with the data we are collecting. The goals in fact include protecting this data, generating marketing information, generating job titles and descriptions, enhancing marketing campaigns, and developing the target market. Just about every type of data to be collected is going to be collected in this category, as you can see above (Kroenke, 2010). This also brings up the data in terms of storing, retaining, and reporting on, as there is data you will keep, without turning into information. For example, specific aspects of employee data will be store, but not reported on, such as age, gender, and data on consumers such as credit card information. Some data will be retained for future use, and some data will be interpreted and reported on immediately, such as sales (Laudon & Laudon, 2010).
- Recommending an ERP It is my recommendation that SewWorld implement Enterprise Resource Planning (ERP) software that can address the Transaction Processing System, Management Information System, and Executive Information System. An ERP is a type of program that manages a company’s vital operations and integrates core business functions such as manufacturing, distribution, financials, and Human Resources. These progrmas are offered by vendors such as SAP, Oracle, and PeopleSoft. However, finding a program that fits the company to its exact needs can be costly and take time. In many cases, organizations can develop custom applications to fit the company precisely (Kroenke, 2010). More importantly, there are advantages and disadvantages to using ERPs, such as: One common system - less duplication, more efficient Customer focus - better customer service Open communications among business partners Adherence to standard business practices Removes need for in-house development Good reporting capabilities Support for multiple currencies and languages. Disadvantages: High cost Forced change of processes Very complex software Lack of trained people Not Internet-ready SewWorld has specific needs that must be met by an ERP program. Those needs include: A Transaction Processing System (TPS), which is ideally expected to perform the task of record keeping required in any organization to conduct the business. Examples of TPS are Sales Order Entry, Payroll, Banking, Shipping etc. TPS is also used for generating reports on demand as well as exception reports. An Executive Information System (EIS), which is a type of management information system intended to facilitate and support the information and decision making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. It is commonly considered as a specialized form of a Decision Support System (DSS). EIS is expected to do trend analysis, exception reporting and has drill down capabilities. At times it is also expected to have online analysis tools. And, A Management Information System (MIS) which refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments. In order to provide past, present and prediction information, an MIS can include software that helps in decision making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently. Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include IS (Information Services) and IT (Information Technology) (Laudon & Laudon, 2010). For this reason, my recommendation is for SewWorld to use the ERP by SAP: SAP Business All-In-One. This program offers complete, proven ERP / manufacturing software solutions with deep industry-specific functionalities that can evolve to best meet the unique and changing business needs of SewWorld’s midsized locations in an affordable and predictable way. The SAP Business All-in-One ERP / manufacturing software solution is a comprehensive and flexible business management software with support for industry specific best practices built in. It assists in helping you manage everything from financials, human resources, inventory, manufacturing, logistics, and product development to customer service, sales, and marketing in one configurable solution. The cost for this program can run anywhere from $120,000 to $2million (ERP Software Systems, n.d.).
- Conclusion It is painfully obvious that SewWorld can benefit extremely well from implementing an information system that deals with the data being generated by the companies processes. Because of the nature and importance of being able to compete in today’s classic and virtual markets, it is my recommendation that SewWorld employ the use of technology that will enhance many of the functions. It is my hope that this presentation has been informative and helpful in making this choice less difficult.