The Value of Effective IT Systems: A Report on Johnson Supermarket

This report examines the significance of effective IT systems, particularly Management Information Systems (MIS) and Transaction Processing Systems (TPS), within the context of Johnson Supermarket (JS). The introduction highlights the crucial role of IT in enhancing operational efficiency and achieving business goals. Task 1 focuses on the positive impact of efficient MIS on improving system functionality, addressing the current mismanagement issues at JS. Task 2 recommends the implementation of both MIS and TPS, detailing their functionalities and benefits, such as improved customer management and streamlined supplier communication. The discussion section elaborates on the effects of these systems, emphasizing enhanced customer relations and improved coordination between suppliers and the purchasing department. Task 3 assesses the value addition and operational performance improvements resulting from the recommended IT systems, including better resource management and increased profitability. Finally, Task 4 proposes practical IT solutions to address the challenges faced by JS. The conclusion summarizes the key findings, underscoring the importance of strategic IT implementation for business success. The report also discusses topics such as the value of value addition, productivity, profitability, and better management of information generated in the organisation.

Value of Effective IT Systems

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO1.............................................................................................................................................1
Effect of efficient MIS on the improvement of the system.........................................................1
TASK 2............................................................................................................................................2
LO2.............................................................................................................................................2
Recommendation of two different IT system for the company. ................................................2
Discuss........................................................................................................................................3
1) Effect on customer management system................................................................................3
2) Communication between suppliers and purchasing department.............................................4
TASK 3............................................................................................................................................4
LO3.............................................................................................................................................4
Effect of the recommendation on the value addition and operational performance of the
company......................................................................................................................................4
TASK 4 ...........................................................................................................................................5
LO4.............................................................................................................................................5
Practical IT system solution to the problems that are been faced by the company.....................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Information Technology (IT) plays a very significant and crucial role in the management
of operations of a company. For a business, an effective implementation of Management
Information System (MIS) helps in improving the operational capacity that aids the company to
meet the targets and goals (Armstrong and et.al., 2015). In addition to this, it supports in
improving the work efficiency of the company. The organisation of the context for this report is
Johnson Supermarket or JS which works in the retail sector. This report will focus on the
efficient implementation of MIS at the company that will help to increase the overall
productivity. Moreover, various IT systems have been suggested and its various implications
have been taken into consideration. Also, its effect the value added change and practical IT
solution are been suggested (Bazak, Eliyahu and Van Kolck, 2016).
TASK 1
LO1
Effect of efficient MIS on the improvement of the system.
Looking at the present condition of operations in JS, we can say that the overall
conditions lay a very negative impact on the operations of the company. The system of the cited
firm is mismanaged and not in a proper synchronisation. This leads JS to face many issues that
affects the productivity and profitability. The organisation has to, thus, look after the effective
solutions to the problems it faces while operating due to absence of a proper management
system. Thus, to counter this situation at JS, effective implementation of MIS can be followed in
order to improve the overall functioning and productivity of business organisation. The MIS
stands for Management Information System which allows the individual organisation to get a
better productivity and gain a better profit (Capela and et.al., 2017). This helps the company to
meet the requirements of the customers and meet the requirements of its customers in a very
effective manner. This system not only helps the company to manage its systems but also
contribute in increasing its productivity. The efficient implementation of MIS will help the cited
firm to meet the requirements of the company in an effective and efficient manner. It helps JSto
opt the latest measures and steps to meet the customer's requirement. The effective usage of the
various system resources that have been held by the company will help the business organisation
meet its targeted goals in a better and sustainable manner (Fujimura and et.al., 2017).
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At JS, MIS will help the company to build coordination between the various bank
accounts of the cited firm that will lead to the better management of the financial resources of the
company. Besides this, it will also help JS to build a better coordination between the Accounts
and Purchasing department of cited firm, thus, reduce the communication gap between the
suppliers and the system of business organisation. Apart from this, it helps in building effective
connection between the various departments of JS that helps the company to improve its
productivity (Goldman and Dalibard, 2014). The MIS will enhance the communication with the
suppliers and thus will help it to manage its resources in a better way. Other than this, the
functionalities of the existing EPOS system, which will helps the company to increase its
productivity and helps JS to achieve its targeted goals. Besides this, all the three systems of the
account department system, system of purchasing and storage with the centralised MIS helps JS
to meet the requirements of customers. Moreover, the effective implementation of MIS in cited
firm will lead the company to gain a better management of the resources and attain better
productivity (Guo, Tong and Liu, 2015).
TASK 2
LO2
Recommendation of two different IT system for the company.
Various sort of IT systems are been taken into consideration by JS that helps the
company to manage its operations and meet the requirements of the customers or the company in
a better and effective manner. These systems will help the company to gain a better productivity
and profitability that aids the company to meet the market needs and demands. The two systems
that can be taken into consideration by JS are as follows:
Management Information System: The management information system, also known as MIS
helps the cited firm to meet the requirements of the various operations that have been carried out
by the company to gain a better productivity (Gupta, 2016). This system helps the company to
manage its operations and various operations that are being generated by JS and are very vital for
the management of organisation. The MIS system manages the various data that is being
generated by the transaction system of the company and helps in the production of the various
reports on the management of the operations of cited firm. Thus, this assists business firm to
increase the work efficiency and management of the various reports that are being taken into
consideration by the company. Besides this, effective management of MIS helps the company to
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carry out its operations in a very effective and efficient manner by proper utilisation of various
resources that are available to JS (Hao and et.al., 2016). This helps the cited firm to make
suitable changes, if required in the company and gain better idea of customer's demand and needs
to make an effective future plan.
Transaction Processing System: The effective implementation of transaction system at JS will
help the company to meet the requirements of suppliers that assists the firm to manage its various
transactions and process them in a very suitable and effective manner. TPS allows the cited firm
to carry out its transaction process in a very effective manner in order to meet the requirements
of JS as well as the customers (Hong and et.al., 2016). This will help cited firm to manage
operations and transactions like inventory management, billings of customers, managing bank
accounts and other transfers of funds, wages and salaries of employees. This helps organisation
for better registering of operations of cited firm. Apart from this, the transaction processing
system helps the company to manage its financial resources that supports business to gain a
better sustainability in the market. The transaction processing system will also help JS to
improve its sales by managing various types of transactions that are being carried out in the
organisation (Kane, Kerr and Pianta, 2014). This supports JS to take suitable measures to meet
the customers’ requirements and increase its productivity and profit margin.
Discuss
1) Effect on customer management system
The MIS system helps the company to meet the requirements of the system that helps the
company to gain a better productivity and profitability. Besides this, it also helps the company to
build a better relationship with the customers that helps the company to cater their requirements
in a better way. The MIS system helps the cited firm to carry out the various operations that are
related to the customers such as selling of goods or services, purchasing of the raw material and
carry out the various transactions that will contribute in the growth of the company and
management of the systems (Kuijken, Gemser and Wijnberg, 2017). Besides this, the
information of the system will be carried out in a very effective manner.
The information of various transactions that is been generated in the company by the
transaction processing is been processed, that helps the company to meet the requirements of the
company in a very effective manner. The analysis of the various transactions that are been
carried out in the cited firm will help the company to meet the requirements of the customers in
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an effective and efficient manner (Park and et.al., 2016). Besides this, the effective management
of the transaction will lead the JS to make the suitable planning of its future plan that helps the
company to meet the targeted goals and manage its financial resources. This will help the
company to increase the productivity and manage resources in a better way.
2) Communication between suppliers and purchasing department.
The MIS system will help the company to manage its operations in a better way that will
help the company to meet the system requirements of the consumers and suppliers in a better
way. The information that is been managed by the MIS system will help the company to take the
suitable measures that will help the company to build a better relationship with the customers
(Ponte and et.al., 2015). This will help the company to gain a better customer loyalty and will
sustain their relationship with the company. At present, the suppliers have to look after then
assessment of the three different systems that are been placed at the purchasing department of the
JS to gain an idea about the stocks that are been required and are available with the company.
This lead to the communication gap and may sometimes cause the wastage of the resources or
the purchased goods in excess (Pyster and et.al., 2015). But the unification of the various system
in MIS will help the better management of the information and resources in the company,
avoiding any sort of wastage.
Likewise, the transaction processing system will help the company to manage its
transactions and the value paid to the supplier in return of the service or goods it supplies. This
will help the company to meet the requirement of the company and meet the requirements of the
suppliers. Apart from this, the TPS will help the cited firm to fill the communication gap that is
been taken into the consideration by the company (Ramirez-Estrada and et.al., 2016). This will
lead to a better communication process and understanding of the requirements and demands,
building a better relation between the supplier's and the purchase department of the company.
TASK 3
LO3
Effect of the recommendation on the value addition and operational performance of the
company.
The value addition is very necessary for the better management of the operations of the
company. This will not only help the company to meet the requirements of the company but also
aids into the performance of the company. From the recommendations provided above, the
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approach of MIS will be beneficial for the cited firm as it will help the company to improve its
production and meet the targeted goals (Rubik and Frankl, 2017). Besides this, the MIS system
will help the JS to build a better relation between the storage, purchasing and the account's
department of the company which will help to improve their functionality and meet them in a
better way. This will help the company to manage its resources in a better way and thus will help
the company to reduce the cost of storage or holding the goods. This will lead to the better
revenue generation and helps the company to meet the requirement of the various suppliers and
the customers that deals with the firm. The better management of the various informations that
are been generated in the organisation will help the company to plan the suitable measures in
order to gain a better productivity and profitability that helps the company to meet the
requirements of the organisation (Rubin and et.al., 2016). The rise in the productivity and
profitability will help the company to meet the requirements of its customers and the suppliers
that will lead the company to generate a better market value for its customers, stakeholders and
supplier's.
The better generation of the revenue and the value creation will help the company to meet
its targeted goals in a better and sustainable way that will help the company to gain a better
profitability. Besides this, it will also contribute to the rise in the customer's loyalty towards the
cited firm which will act as the competitive advantage for the company and will help JS to gain a
better market share (Thong, 2015). The better management and interaction of the various
operations performed by the different departments of JS will help the firm to perform well in the
market and have a higher profitability as compared to its competitors. Other than this, it will lead
to the effective running of the company which will help the organisation to produce better
services and products and increase the customer satisfaction level. This will reduce the
operational cost and aids the company in better inventory management.
TASK 4
LO4
Practical IT system solution to the problems that are been faced by the company
Various solutions are been undertaken by the company to gain a better share of the
market. The implementation of this effective IT solution will help the company to gain a better
productivity that will contribute in the better share of market for the company (Yang and Jia,
2014). Besides this, the management of the operations of the company by the means of IT will
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help the firm to gain a better productivity and profitability. That helps the company to meet the
requirements of the suppliers and the customers of the company. Some major recommendations
or the practical IT solution that will help the problem solving of the company is:
 The three different stores that uses the various systems can be merged together to form a
single, centralized system (Zeyringer and et.al., 2015). This will help the company to gain
a better share in market. The three separate systems that are been connected in the
purchasing department who are using the services of the same supplier will be connected
using the EPOS with the MIS system in order to facilitate the better communication
process between the company and the supplier. This will help him to develop a better
coordination and help in the sorting out the queries that are been asked by the supplier in
regard to the products in the stock.
 The management of the resource at the cited firm will be carried out in a better and
efficient manner. The process will help to keep a check on the available resources that are
been used and use them appropriately (Thong, 2015).
 Merging the 3 different bank accounts of the company to one account will help the
company to meet the requirements of the company in a very effective manner. This will
help the company to manage its transaction, purchases and payments to customers and
the suppliers. Besides this, it will help the company to reduces its stock cost and keep a
check on the accounts of the company.
CONCLUSION
Thus, from the report it can be concluded that IT solutions helps the company to increase
its productivity and profitability. This report laid the focus on the efficient implementation of
MIS at JS, that will help the firm to increase the overall productivity. Moreover, various IT
systems have been suggested and its various implications have been taken into consideration.
Also, its effect on the value added changes and practical IT solution for the problem solving are
been suggested to increase the customer satisfaction and better productivity and profitability of
the company.
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