Information System Proposal
INFORMATION SYSTEM PROPOSAL 2
Table of Contents
1.0 – Introduction/Proposal.........................................................................................................3
1.1 – Information Systems Useful to Company...........................................................................4
1.2 – Benefits of Implementing Information Systems.................................................................5
1.3 - Drawbacks/Disadvantages of Information Systems............................................................6
1.4 – Conclusion..........................................................................................................................7
1.5 - Images Displaying the Operation of Transaction Processing & Functional Area Systems.8
1.6 – References...........................................................................................................................9
INFORMATION SYSTEM PROPOSAL
1.0 – Introduction/Proposal
Hello Jody,
I really enjoyed the conversation we had the other day regarding this new nostalgic record store
we are partnering together on. Personally I think we have made a wonderful choice on investing into
this record store based on the amount of revenue it will yield. The objective of Vinyl Record Store will
be to provide people with the ability to purchase classic hit records no longer being sold or not yet
converted into CD form in our store and on our website. In addition to our website there will also be a
customer service support center that will assists customers with their purchases and on locating hard
to find records. However, before any of this can take place there are specific information systems that
must be implemented first in order for the company to generate the expected amount of revenue
projected. One of the first things I would like to do is list of the information systems I think would be
best for us to use followed by the advantages and disadvantages of each system. There are five different
information systems available that are computer based and non-computer based that I think will help
us maximize our productivity and increase the level of service customers receive. The information
systems that would best benefit us would be a functional area information system, transaction
processing system, office automation system, management information system, and a supply chain
management system.
This proposal to integrate/implement these five information systems into the startup of our
business will help us generate the appropriate reports needed regarding products and sales, process
payroll payments, perform cash and credit card transactions, form and maintain spending budgets
verses income, as well as generate, track, and analyze spending trends of consumers. The
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INFORMATION SYSTEM PROPOSAL
implementation and training of these five information systems will help us yield new products, services,
greater sales, and higher profit margins.
The next page contains a table outlining the functionality of the five information systems we
should integrate first.
1.1 – Information Systems Useful to Company
Type of System Functionality
Functional Area Information System Supports activity within a certain functional area
of a business or organization like payroll.
Transaction Processing System Helps to monitor, collect, store, and process all
data generated from transactions. (POS Machine)
Office Automation System The use of varied equipment, machinery along
with software to store, duplicate, and
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INFORMATION SYSTEM PROPOSAL
electronically save or transfer information
necessary for business. (Photo Copy Machine or
Microsoft Word)
Management Information System A computer- based system that enables managers
to organize, efficiently manage, and evaluate
different departments within the business or
company. (Customer Sales Reports)
Supply Chain Management System A system of actively managing the flow of goods,
information and services between organizations.
Information Retrieved from: Rainer, R.K. & Cegielski, C. G. (2011).
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INFORMATION SYSTEM PROPOSAL
1.2 – Benefits of Implementing Information Systems
1. Functional Area IS – Supports efficiency along with increases effectiveness for business in the
following areas:
Financing/Accounting
Human Resource Management
Marketing
Operations
2. Transaction Processing System – Batch transaction processing - gathers transactions in groups
for them to be processed later. Real time processing - immediately processes data and provides
instant confirmation of the transaction. The advantages are:
Helps to lower transaction processing costs
Minimizes Errors
Makes every transaction unique
Supports the collection, storage, monitoring, and processing of transaction information
from the data generated.
3. Office Automation System – Supports managers, clerical staff, and other employee's with daily
work activities. Advantages include:
Helps gets tasks and jobs done faster
Develops documents and provides scheduling
Less spaces is needed for file storage
Keeps personal information safe
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INFORMATION SYSTEM PROPOSAL
Allows you to emails and memos to multiple people at one time
4. Management Information System – Produces summarized reports from data generated from
transactions that increases as well as enhances a company’s capabilities. The Benefits of
Management Info. Systems is that it:
Reduces Redundancy
Increases Efficiency
Improves Accuracy
Helps maximize profits while reducing costs
Makes company more competitive
5. Supply Chain Management System – Helps manage the information regarding the exchange of
products and services between retailer and suppliers. Benefits include:
Reduces lost in sales from out-of-stock items
Helps maintain control over inventory investments
Helps identifies the most profitable items and customers
Helps measure sales and business performance
Gives accurate forecast of the businesses inventory as well as the suppliers
1.3 - Drawbacks/Disadvantages of Information Systems
1. Functional Area IS:
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INFORMATION SYSTEM PROPOSAL
System Breakdowns/Failures
Payroll Processing Errors
Makes working in teams difficult
Cost of Implementing is high
Requires all employee's to be trained on how to use software properly.
2. Transaction Processing System
Failure in processing transactions
Breaches in security of private information
Lost data from system crashes
Technical issues with internet connections to financial institutions
Easily Hacked
3. Office Automation System
Hard to locate misfiled documents
Equipment costly to maintain
High Implementing costs
Requires training for proper use of system
Crashes in system software
4. Management Information System
Expensive to start up
Must be constantly monitored
Not easy to integrating with other systems
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INFORMATION SYSTEM PROPOSAL
Eliminates Jobs
Experiences system failures
5. Supply Chain Management System
Requires a lot of time, money, and resources to be invested
Configuration in distribution network
Investing in products low in demand
Integration of Supply Chain
Choosing the right suppliers
1.4 – Conclusion
Information systems is an essential element to the overall development of our business and is
absolutely necessary in order to keep things organized and to maintain the general flow of business.
With the cost of implementing all five of these systems at one time being extremely high; I think it would
be ideal for us to start out by implementing the Functional Area and Transaction Processing
information systems first. The other three information systems can be integrated 3 – 6 months from now
when we have generated enough revenue.
What these two systems together will do is make the store more efficient as well as increase the
productivity of the store. The transaction processing system will benefit us by automatically processing
transactions in store and online, keeping track of day to day transactions, and composing the inventory
reports; which will save us from manually processing payments and conducting inventory checks of
everything on the shelves. When it comes to the management of things such as the accounting needs,
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INFORMATION SYSTEM PROPOSAL
the finance and human resource needs, and the production and marketing needs is where the functional
area information system will come in at. I've included images on the next page that displays how both
the Transaction Processing and Functional Area Information Systems operate.
Although many of these systems break down from time to time, that one disadvantage doesn’t
outweigh the advantages of providing us with the tools we need to survive in the record selling industry.
With the proper use and training of the five information systems in this proposal, Vinyl Record Store
will be able to successfully open, operate smoothly, and generate profits that will guarantee our overall
success rate. I will be awaiting your reply.
1.5 - Images Displaying the Operation of Transaction Processing & Functional Area Systems
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INFORMATION SYSTEM PROPOSAL
TRANSCATION PROCESSING SYSTEM:
FUNCTIONAL AREA INFORMATION SYSTEM:
Images Retrieved from: The "Learning Module #10 Of the Introduction to Information Systems:
Supporting and Transforming Business, 4th Edition by Rainer/Cegielski " (n.d.) website.
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INFORMATION SYSTEM PROPOSAL
1.6 – References
Henderson, T. (2014). Office Automation. Retrieved from
http://www.referenceforbusiness.com/encyclopedia/Mor-Off/Office-Automation.html
IT Knowledge Portal: Supply Chain Management. (2014). Retrieved from
http://www.itinfo.am/eng/supply-chain-management/
Information, Processes, & Technology. Bored of Studies.org. Retrieved from:
http://intranet.cbhslewisham.nsw.edu.au:82/computing/supdocs/2002_IPT_N_Transaction_Processing_
Systems_Chan.pdf
Learning Module #10 of the Introduction to Information Systems: Supporting and Transforming
Business, 4th Edition by Rainer/Cegielski. (n.d.). Retrieved from
http://www.csb.uncw.edu/people/servickyl/classes/mis213/chapters/10/10-2.html
Rainer, R.K. & Cegielski, C. G. (2011). Introduction to Information Systems: Supporting and
Transforming Business (3rd Ed.). Hoboken, NJ: John Wiley & Sons.
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