ifsm 300 disc resp 2

Using IT for Decision Making

First, read Week 2 Content on Data and How Information Supports Decision Making, paying particular attention to the Levels of Decision Making.  For purposes of this discussion, we will use a retail business as an example.  This retail business is comprised of the corporate headquarters, regions (oversees several stores in a geographic area) and individual stores.  Each of these aligns to one of the three levels of decision makers in an organization.  

Main Postings:  Select one of the levels of decision making and identify one decision that a manager at that level might make.  The decision must relate to the retail business and what it does.  Then, explain what information a manager at that level might get from the IT systems  (such as inventory management or customer information system) to aid in

making that decision.

Example:  Managerial Level:  The Regional Director makes a decision to shift inventory that is not selling in one store to another store where sales in those items are high.  To support this decision, the Regional Director would need information on sales of specific products by store.

RESPOND TO THE DISCUSSION POST BELOW AND INCLUDE CITATIONS

Operational Level Example

Jenny

Discussion 1

The example I am choosing for this discussion is Operational Level: The store manager of a clothing company chooses to display popular and highly demanded items at the entrance of a store for high visibility to increase overall sales. Showcasing the top-sellers and best-quality merchandise upon entry will also inspire shoppers to peruse the entire store and buy more items. ("What is a good layout for a clothing store?," n.d.) At an operational level, the store manager of an individual store has control and influence over how that store is specifically ran based on the manager’s knowledge of the local area, sale history, and customer traffic. 

In order to make the most effective decisions, the clothing store manager would have to use IT systems to generate the previous years’ sales to determine what items created the most sales. Based on that data, they would have to order sufficient inventory for the upcoming season, anticipating to have enough stock for all consumers. The IT system could product a report of the volume of shipping done with each vendor, along with their rates ("How information supports decision making," n.d.) After having all inventory in stock, the manager would then choose to strategically display these items at the entrance of the store in a welcoming and inviting arrangement to encourage customers to walk into the store, thus making the sales. 

Reference: 

How information supports decision making (n.d.) Retrieved from learn.umgc.edu.

What is a good layout for a clothing store? (n.d.). Small Business - Chron.com.  https://smallbusiness.chron.com/good-layout-clothing-store-18235.html

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Discussion 2

Aaron 

Decision-making is among the most significant concept in management. It is also a process people go through every day. By definition, decision-making involves developing alternatives by recognizing a decision, collecting information, as well as evaluating alternative resolutions. There are three levels of decision-making, including managerial, strategic, and operational. The management level controls the effectiveness and efficiency of resources and the performance of all operational departments. The strategic level establishes the resources, policies, and objectives of a corporation. The operational level focuses on day-to-day resource allocation, delivery routine, and ensuring an optimized flow of products and services.

As a result, the selected level of decision-making appropriate is operational. This is because it significantly relates to retailing, involving the sale of goods and services to customers. Operational decisions are also important for the reason that they assist the organization and the management in comprehending the fundamental cost-volume relationship and how it relates to the operation of the company (Fann & Smeltzer, 2016). Besides, the managers have to consider management risks, latency, volume, variability, and self-service at this level.

One decision that a manager at the operation level might make is deciding the amount of inventory to keep in the stores or warehouse. The information a manager at the operational level of decision making might get from the Information Technology (IT) system to facilitate deciding on the amount of inventory can be the report on the number of sales per day. Essentially, by knowing the daily sales, the manager can make decisions on the number of products to be kept in the warehouse.

Reference

Fann, G. L., & Smeltzer, L. R. (2016). Communication Attributes used by Small Business Owner/Managers for Operational Decision Making. Citeseerx.ist.psu.edu. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.1015.1040&rep=rep1&type=pdf

Discussion 3

Dylan

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Managerial decision making for this example will focus on staffing, inventory, and projections. To start revenue forecasting is extremely important as it will play a role in staffing, inventory, and sales. By using IT systems from the company records an accurate estimation of product sales can be pulled making inventory easier to manage. For example if as a manager I know the winter months are coming and prior records show the hoodies and long sleeve T-shirts are the most desired item while the shorts and tank tops are the least desired item we can rearrange inventory to show more of what is in demand as well as order what we believe will be needed in the coming months. Projections also play a role in staffing, if we know the next few months are the busiest times for the company more staffing will be required which may lead to the need for more employees. 

As the managerial level of decision making they can effectively plan out inventory desires, staffing/scheduling, and the projected sales. At the managerial level of decision making the IT systems can provide a huge advantage as well as possible the system can show how and where staffing and products should be placed and presented, when to switch out products and move into "different season" products, and how and what to advertise for upcoming demand.

References:

Dutta, N. (2015, August 10). Managerial decision making process (5 steps). Economics Discussion. Retrieved January 21, 2022, from https://www.economicsdiscussion.net/decision-making/managerial-decision-making-process-5-steps/6099

GrowthForce. (n.d.). Revenue forecasting for decision making? here's how to use it... Bookkeeping, Accounting & Controllers for Businesses and Nonprofits. Retrieved January 21, 2022, from https://www.growthforce.com/blog/revenue-forecast-for-decision-making