Information Systems Proposal

Prepared by

Chris Camburn

Partner

Prepared for

Brad Tunes

Partner

Background

Over the last couple years we being my friend (Brad Tunes) and myself (Chris Camburn) have been discussing opening a small vintage record store made out of good old brick and mortar. Now given that most of these types of businesses have become obsolete due to the digital music revolution we have decided to open a classic record store with a digital twist located in the center of the very popular shopping center Santana Row. We will combine old vintage records with the option of hooking your listening device up to a hub where you can transfer audio files from our large database of records. You will also have the ability to access the files of other customers while in the store, listen to what they are listening to and transfer with one another, all in all creating a one of a kind customer/user experience. The name of the business will be DigiBox!!

Proposal

As a small business we will need to incorporate certain information systems so we can optimize capital growth, establish a smoothly run more efficient workplace, and execute processes better than our competitors. Over the past decade business information management has gone through a significant change that allows small business owners to operate at a corporate capacity in more ways than one with software that is designed for people who have limited knowledge with IT systems. There are several different types of information systems, yet not all of them would be applicable to the type of business we are looking to run. I therefore propose we focus on and implement the following systems into our business: transaction processing system, management information system, a dashboard system, decision support system, and a function information system. The following table shows each of the systems I propose we should use along with their function and purpose.

Summary

As stated above there are several information systems available for us to use, however I find it essential for us as a new business to focus on these specific systems at first, which will allow our small business to flourish. Whether it is creating and having access to vast amounts of data, interpretation of such data, performing fast accurate communication, or simply just allowing our business to run smoothly by increasing the effectiveness and efficiency of our employees. Each system has its benefits and drawbacks which I will outline in detail with the following bullet points.

1. Transaction processing system: A POS(point of sale) system will be crucial for us being a small business by enabling us to make efficient use of all company related transactions including collection and storage of all sales, purchasing, and generate data for all of our basic business operations. Potential drawbacks to this system are cost and complications that may arise from using a complex system. Although it makes the selling/buying process easy for the consumer it adds other expensive operating costs. We also have to think about security and hardware issues, being a software/hardware system there is the potential for malfunction and consumer threat.

2. Management information system: Being a new business we will really want to collect and analyze different types of information so that we can make crucial decisions, this however takes a lot of time which being new we will want to focus our priorities elsewhere such as customer service. It will allow our employees to be more productive and help our cost efficiency. One of the areas we will focus on will be the tracking of customer sales which allows us to monitor what our particular demographic preferences are. Drawbacks to this system are once again cost as these systems are expensive to implement and keep current as business technology advances. Then there is the question regarding the systems' effectiveness, are we gathering the pertinent information needed to make business decisions that will help our business grow.

3. Dashboard system: As a start-up Brad and I will want to monitor various aspects of performance on an easy to use real time interface which the dashboard system will provide. Using this type of system will allow us to see visual presentations of performance measures so that we are able to identify and fix negative trends and also identify new trends. The information gathered through the dashboard will provide us intelligence on our business so in turn better decisions can be made. Potential drawbacks could include using the right software programs to create the dashboard, using the proper programs that have extensive gathering and analytical capabilities unlike excel, PowerPoint, etc. Also again is the right data being drawn or are we gathering data with too narrow of a scope undermining the desired result of the business.

4. Decision support system: While we establish our business and look to grow we will set up a decision support system than will gather all of the raw data, documents, and personal knowledge in one place and aide us in solving problems that may arise and formulating solutions such as in budget planning. The DSS will help improve efficiency and create more of a competitive advantage over the competition, as well as force creative innovative ideas to speed up performance. A couple of potential drawbacks we need to be aware of using this system are not giving the system to control/ slash power; we want to grow with the business just as the business grows with us. Decision making is a key element that we should be well adept at doing. Then there is the possibility of having too much information to know what to do with. Information is important but an overload could overwhelm and bog down the business.

5. Functional information system: We will utilize a system of this nature to provide support to a specific department such as payroll. This system will promote efficiency and effectiveness within a department by assisting in the communication, coordination and control. The only potential drawback I foresee here is the program not operating correctly or breaking down, which could be quite chaotic.

Although there are drawbacks, information systems have revolutionized how business is conducted