Information Systems Report: Competitive Edge and Business Tasks

This report provides a detailed overview of information systems and their application in business, starting with the coordination of business processes in a sandwich shop and the components of a Customer Relationship Management (CRM) system. It emphasizes the importance of e-policies and advanced authentication mechanisms for security, discusses the characteristics and drawbacks of cloud computing, and examines the use of sales management systems. The report also justifies the choice of different information systems like MIS and DSS, highlighting their role in improving operational efficiency and decision-making. Furthermore, it explores the impact of information systems on globalization, competitive advantage, and customer relations, using United Parcel Service Inc. (UPS) as a case study to illustrate the benefits of advanced supply chain management systems. Finally, the report analyzes the competitive forces affecting UPS, providing a comprehensive understanding of the strategic role of information systems in modern business.

Information Systems
Report

Information Systems
Table of Contents
Part A....................................................................................................................................................2
Answer 1...............................................................................................................................................2
Answer a............................................................................................................................................2
Answer b...........................................................................................................................................2
Answer 2...............................................................................................................................................2
Answer a............................................................................................................................................2
Answer b...........................................................................................................................................3
Answer 3...............................................................................................................................................3
Answer a............................................................................................................................................3
Answer b...........................................................................................................................................3
Answer 4...............................................................................................................................................4
Answer a............................................................................................................................................4
Answer b...........................................................................................................................................4
Answer 5...............................................................................................................................................5
Answer a............................................................................................................................................5
Answer b...........................................................................................................................................5
Answer 6...............................................................................................................................................5
Part B.....................................................................................................................................................6
Answer a............................................................................................................................................6
Answer b...........................................................................................................................................7
Answer c............................................................................................................................................7
Answer d...........................................................................................................................................7
Answer e............................................................................................................................................8
Answer f............................................................................................................................................8
References...........................................................................................................................................10
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Information Systems
Part A
Answer 1
Answer a
The three business processes that are conducted in a sandwich shop are as listed below.
 Processing of the orders for the customers
 Billing & Invoicing for the payments made by the customers and providing them with
an invoice on the basis of the orders placed
 Inventory and supply chain management
All of the three business processes listed above can be better coordinated with the aid of
information systems. The processing speed, data handling, and operational accuracy will be
improved (Dewett and Jones, 2001).
Answer b
The three main components of a Customer Relationship Management (CRM) system are as
listed and described below:
 Customer Service & Support: The relations with the customers are improved by
providing them with adequate service and support.
 Marketing: The customer data and information fed in the CRM system is analysed
using automated tools and the market plans and strategies are developed accordingly.
 Sales: The third major component of a CRM system is sales. The organization carries
out the sales activities as per the marketing plans and strategies along with the
customer demands and preferences.
Answer 2
Answer a
It is required for the organizations to develop and implement e-policies along with the
adherence to the legal and regulatory policies so that the ethical compliance can be
maintained. There are several instances of insider threats and attacks that take place in the
business organizations and with the use of e-policies, such occurrences will be avoided. Also,
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Information Systems
the information security risks and attacks will also be avoided with the implementation of the
e-policies.
Answer b
There are advanced authentication mechanisms that are developed and may be used to
prevent unauthorized access. Multi-fold authentication is one such mechanism that comprises
of two or more authentication processes. There are biometric recognition measures that may
also be used for the purpose of authentication with the use of face recognition or fingerprint
recognition. The hackers will not be able to access the organization applications or enter in
the organization with the use of advanced authentication measures (Trnka, Cerny and
Stickney, 2018).
Answer 3
Answer a
Cloud Computing is technology that allows the users to make use of the computing resources
over the network which is usually the Internet. Some of the essential characteristics of cloud
computing include on-demand self-service, broad network access, resource sharing, measured
service, and enhanced flexibility & scalability of the network and associated services.
Answer b
There are certain drawbacks associated with cloud computing. One of the primary drawbacks
is the enhanced probability of information security risks and attacks that may emerge. For
example, malware attacks, denial of service attacks, eavesdropping attacks, data breaches,
data manipulation issues, data loss, man in the middle attack, and distributed denial of service
attack are some of the security attacks that may emerge on the cloud (Svantesson and Clarke,
2010). Incompatibility issues may also be witnessed with cloud with the virtualization of the
entire infrastructure.
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Information Systems
Answer 4
Answer a
Answer b
Sales management system is the information system that is used to generate the report. The
report includes six fields as product code, product description, sales region, actual sales,
planned, and actual versus planned. In a sales management information system, all of this
information is included to keep a track of the sales processes and activities. There are
estimations made on the sales that may be made by an organization over a period of time
which has been included in the planned values. The actual values are recorded and the
comparison of the same is made on the basis of the planned value. The information may be
customized for the products and the product code as per the requirement to get an overview
of the sales data and performance.
The sales strategy of an organization can be modified on the basis of such a report and this is
why sales management system is one of the essential information systems for the business
organization.
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Answer 5
Answer a
Answer b
IS Type Justification Organizational Level
Payroll management system The information system
shows the handling and
processing of the payroll data
by using the inputs as the
employee data, online
queries, and payroll master
file. The outputs are provided
in the form of management
reports, government
documents, employee
checks, wages & salaries of
the employees to the general
ledger.
The organizational level at
which the information is
shown is at the
administrative level as the
employee code and
associated information can
also be accessed by the
system user.
Answer 6
Choice of Order of Information Systems Justification
Management Information System (MIS) The information of the organization is
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currently stored in spreadsheets which are
exposed to several errors and risks. The use
of MIS will integrate the information sets
along with the details of the materials and the
overseas supplier on a common platform
(Kneitel, 2005).
Decision-Support Systems The primary issue with the organization is in
the area of decision-making and the same
will be resolved with the inclusion of the
information system in the organization.
Transaction Processing System The information system will automate the
sales order and order processing activities
along with the supplier transactions.
Part B
Answer a
Information systems have automated the business tasks and processes which have led to the
increase in the operational efficiency of the business firms along with the accuracy of the
business functions. The information sets are integrated in these information systems which
have allowed the organizations to make decisions on the basis of the information from all the
business areas. The use of information systems in the organization has assisted in the
conduction of the business activities at the global level. There are huge number of customers,
suppliers, and business partners that are associated with the enterprise. The use of customer
relationship management, supplier relationship management, decision support systems, and
others has allowed managing the relations with the internal and external stakeholders. There
is a lot of competition in the market at present and the use of information systems has
succeeded in providing a competitive edge to the business groups. The market situation,
customer preferences, and expectations can be analysed in a better manner to deal with the
competition in the market (Lee, 2003).
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Information Systems
Answer b
The three major information system trends include the automation of the business processes
and activities, enhanced processing speed & accuracy of the business functions along with the
integration handling of the information sets. Internet and the World Wide Web are closely
related to the technical aspect of the information system. The use of these networks is done to
share the information with the other entities. Information sharing and communication is made
quicker and accurate with the use of WWW and the Internet. The conduction of global
business tasks and activities is made possible with the use of information systems enabled
with the network access. The redesigning and reshaping of the organizations is made possible
as an outcome (Wang and Zhang, 2015). There are newer technologies, such as Cloud
Computing and other mobile technologies that are being used to store the information and
data sets over the cloud. Cloud services and databases are used to give shape to the business
functions which has enhanced the overall quality of the operations.
Answer c
Globalization has its own set of challenges and opportunities. The business organizations
have succeeded in carrying out enhanced business functions and operations with the aid of
globalization. There are wider networks of customers, suppliers, and business partners all
across the globe resulting in enhanced profits and revenues for the business firms. The
enterprises with string global presence have succeeded in performing better than their
competitors. There are a few challenges that are associated with the rise of globalization in
business. The business enterprises are using Internet and other networks to conduct business
functions that have brought the risks of security threats and attacks. The information and data
sets are exposed to increased security risks in terms of malware attacks, network-based
security attacks, data breaches, and likewise. There are also issues of ethical violations that
have come up with the need to have a competitive edge in the market.
Answer d
 Operational Excellence: The use of information systems is done to enhance the
operational excellence and improve upon the profits and revenues.
 New Products and Business Models: There are wider business opportunities that may
be explored with the aid of the information systems along with the inclusion of newer
products and services.
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Information Systems
 Better customer and supplier relations: The use of information systems allow the
improvement of customer and supplier relations by targeting and fulfilling their
demands and expectations.
 Enhanced decision-making: The information systems provide an integrated set of the
business data and the decisions are made on the integrated information sets.
 Competitive Edge: The business enterprises succeed in outperforming the competitors
and target the customer expectations to earn better market reputation.
 Survival: The information systems have become an essential component for the
business firms in order to perform as per the requirements.
Answer e
United Parcel Service Inc. (UPS) is one of the leading logistics company and is based out of
Atlanta, Georgia, United States. The company has made use of advanced supply chain
management systems to revolutionize the process and to offer well-rounded solutions to its
stakeholders. The company has also grown immensely in the technological use in the areas as
billing, wireless, freight, and international technologies. The company has also shown
environmental and social responsibility by using sustainable technologies. It collaborated
with GreenBiz to make the best use of commercial fleet electrification. The company has also
used technology to develop enhanced sustainable logistics solutions in the crowded urban
areas (Ups, 2018). The benefits of doing so will be the environmental protection coupled with
technological advancement to offer better services to the customers. The customer and
stakeholder engagement levels will also improve as an outcome.
Answer f
Bargaining
Power of
Customers
Threat of
Substitute
Products
Bargaining
Power of
Suppliers
Threat of New
Entry
Rivalry among
the Competitors
Low Low Moderate Low Moderate
The company has a huge customer base in the market and has succeeded in targeting the
customer expectations. Thus, the bargaining power of the customers is low. There are not
many substitutes for the products in the market and the threat of the substitutes is low. All of
the trailers or package delivery vehicles are not owned by the UPS. There are also
outsourcing and supplier groups associated with the company and thus, the bargaining power
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of the suppliers is moderate. There are barriers of high investment costs in the industry and
the threat of new entrants is therefore low. FedEx, DHL, USPS, etc. are some of the
competitors in the market which brings up moderate competitive rivalry.
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References
Dewett, T. and Jones, G. (2001). The role of information technology in the organization: a
review, model, and assessment. Journal of Management, 27(3), pp.313-346.
Kneitel, A. (2005). Evolving and Implementing a Worldwide Management Information
System (IMS/MIS). MIS Quarterly, 4(3), p.31.
Lee, S. (2003). Business use of Internet-based information systems: the case of Korea.
European Journal of Information Systems, 12(3), pp.168-181.
Svantesson, D. and Clarke, R. (2010). Privacy and consumer risks in cloud computing.
Computer Law & Security Review, 26(4), pp.391-397.
Trnka, M., Cerny, T. and Stickney, N. (2018). Survey of Authentication and Authorization
for the Internet of Things. Security and Communication Networks, 2018, pp.1-17.
Ups (2018). Committed to More: Read the new UPS Corporate Sustainability Report.
[online] Sustainability.ups.com. Available at: https://sustainability.ups.com/ [Accessed 1
Nov. 2018].
Wang, F. and Zhang, X. (2015). The role of the Internet in changing industry competition.
Information & Management, 52(1), pp.71-81.
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