What Are the Benefits of an Information System for the Bead Bar?

The Bead Bar is a pseudo business created to teach the concepts of Information Technology.

In general, think of ways that information systems add value to companies like the Bead Bar, the company that is introduced on p.2 of your text (Malaga, 2005). How can information systems affect a company's bottom line (such as financial performance)? What are other non-financial values that information systems can add to a business? Explain your answer. Keep in mind that many IT projects do not receive management approval unless there is a business benefit to be derived from them. (UofP)

The Bead Bar company would benefit from an information system that keeps information on products, orders, inventory, and account activity accurate and current, and it would ensure the information is organized for easy accessibility and practical use, such as making decisions regarding what stock to keep on hand for quick shipment and ensuring client or account confidentiality.

In order for the Bead Bar to build an information system that would adequately manage information between its various locations (studios, franchises, and the Bead Bar on Board), the Bead Bar will need computer hardware to input and output information; software to process payments, accounts, and orders; databases to organize and store information for easy retrieval; a network system for the computers at each location to transmit and communicate with each other; and the internet to power the network. Utilizing these systems will promote more accuracy, reduce or eliminate lost orders, errors in invoicing, and fulfillment delays, resulting in a greater financial performance and fiscal responsibility.

An information system would improve the bottom line for the Bead Bar company by increased revenue from: reduced invoice error, filling orders in a timely manner, reduce the number of new hires needed to process paperwork as the company expands, ensure supply meets demand, faster product and revenue turnaround, and add the potential for expansion due to greater customer satisfaction and increased internet sales.

References

Malaga, R. A. (2005). Information systems technology. New Jersey: Pearson Education, Inc.

University of Phoenix IT 205 Management of Information Systems Course Syllabus Discussion Question Week 1