INFORMATION SYSTEM MANAGEMENT

Information system management

Information system management

Introduction

Information management through automated information systems is an indispensable part of modern day businesses. Given its business strategy of ever expanding stores and sales and increased profit margin through bargain and bulk buying, 99 Cents Only Stores utilizes information systems covering many aspects of business to achieve their business objectives. Particularly, given the nature of business i.e. the uncertainty in the timing and quantity of merchandise receiving and the ever changing product lines, it is of great importance for the business to achieve competitive advantage by using information systems. The strategic importance of information management system can be analyzed from the point deliverables. First, what are the benefits of having such system, whether the system is capable of achieving its objectives i.e. whether it can help turn around the merchandise faster, cheaper and more effectively and efficiently than competitors. Secondly, whether the system itself is cost effective and easy to implement and maintain.

In addition, information is the basis for every decision taken in an organization. The efficiency of management depends upon the availability of regular and relevant information. Thus it is essential that an effective and efficient reporting system be developed as part of accounting system. The main object of management information is to obtain the required information about the operating results of an organization regularly in order to use them for future planning and control. The old techniques like intuition, rule of thumb, personal whim and prestige, etc. are now considered useless in the process of decision taking. Modern management is constantly on look out for such quantitative and such information, which can help in analyzing the proposed alternative actions and choosing one as its decision. Thus, modern management functions are information-oriented more popularly known as “management by information”. And the system through which information is communicated to the management is known as “management information system (MIS)” (Laudon, 2008, p56).

In managing information, the main objective of the company is to keep the cost down and get most possible return on investment (ROI). In the case of 99 Cent Only Stores, information systems help the company reduce the time involved between receiving the product supply and shipping them to the retail store. It provides the staff with more accuracy, speed and efficiency thus making the right goods available in store at the right quantity and at the right time. The information systems' ability to deal with delivery flexibly is very important as 40% of the items are non-repeatable which could also be in very large quantity and may require quick distribution for various business reasons. Having such a capable information system empowers the business with great strategic importance.

Information system for 99 Cent Only Stores need also be cost effective for achieving strategic advantage. Provided the strength of the business, such as faster decision making and rapid implementation of projects, 99 Cent Only Stores is able to purchase and implement information system that is easy to customize, and flexible to adapt with company's unique business ...