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CSC60404 Management Information System

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1. Rabatt operates deep-discount stores offering housewares, cleaning supplies, clothing, health and beauty aids, and packaged food throughout Germany, with most items selling for 1 euro. Its business model calls for keeping costs as low as possible. The company has no automated method for keeping track of inventory at each store. Managers know approximately how many cases of a particular product the store is supposed to receive when a delivery truck arrives, but the stores lack of technology for scanning the cases or verifying the item count inside the cases. Merchandise loses from theft or other mishaps have been rising and now represent over 3 percent of total sales. What decision have to be made before investing an information system solution? 

2. Fulbert Timber Merchants in Brixton, UK features a large selection of building supplies, including timber, fencing and decking, mouldings, hardwood flooring, sheet materials, windors and doors. The prices of building materials are constantly changing. When a customer inquires about the price on fixtures, fittings, hangings and other items, sales representatives  consult a manual price sheet and then call the supplier for the most recent price. The supplier in turn  uses a manual price sheet, which has been updated each day. Often the supplier must call back Fulbert’s sales reps because the company does not have the newest pricing information immediately on hand. Assess the business impact of this situation, describe how this process could be improved with information technology, and identify the decisions that would have to be made to implement a solution.  

3. Quincaillerie is a small family hardware store in Paris, France. The owners must use every square foot of store space as profitably as possible. They have never kept detailed inventory or sales records. As soon as a shipment of goods arrives, the items are immediately placed on store shelves. Invoices from suppliers are only kept for tax purposes. When an item is sold, the item number and price are rung up at the case register. The owners use their own judgement in identifying items that need to be recorded. What is the business impact of this situation? How could information systems help the owners run their business? What data should these systems capture? What decisions could the systems improve? 

4. Despite aggressive campaigns to attract customers with lower mobile phone prices, T-mobile has been losing large numbers of its most lucrative two-year contract subscribers. Management wants to know why so many customers are leaving T-mobile and what can be done to entice them back. Are customers deserting because of poor customer service, uneven network coverage, wireless service charges or competition from carriers with Apple iphone service? How can the company use information systems to help find the answer? What management decisions could be made using information from these systems? 

Management should consider these organizational features:

  • What are the competitive forces at work in the industry, specifically the relative power of suppliers, customers, and substitute services over prices?
  • Is the basis of competition quality, price, or brand?
  • How is the industry currently using information technology and is the organization behind or ahead of the industry in its application of information systems?
  • How is the company creating value for the customer?
  • What are the organization’s core competencies?

Management should make these decisions to ensure the strategy works:

  • Has senior management correctly articulated an appropriate business strategy and goals for the organization?
  • Is the company using the right metrics to measure progress toward those goals?
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