Business Information System - How Business Uses Information - Assignment Example

Running Header: BUSINESS INFORMATION SYSTEM: HOW BUSINESS USES INFORMATION Business Information System Name and ID Course Name & Code Instructor’s Name 10th February 2010 1- Amazon’s strategy in which you address the following: a-Describe how Amazon.com uses e-business and e-commerce for B2B and B2C. Information technology is the backbone in which Amazon operates. Amazon main aim is to revolutionize the retailing industry, utilizing information technology to achieve it. Amazon has built a strong infrastructure that has enabled it to become the largest online retailer, but the profits are not consistent as initially expected. To achieve its goals, Amazon utilizes both e-business and e-commerce for B2B and B2C transactions (Aleman & Wartman, 2009). Through their online retailing services and transactions, Amazon utilizes B2C strategy to ensure the customers can search, analyze, purchase, and determine whether the product and the entire service were beneficial. The competition in the retailing sector is becoming more competitive, and thus, Amazon has entered into B2B sector through introduction of three services that are required by numerous service providers companies. The three services include the Elastic Compute Cloud (EC2), the Simple Storage Service (S3), and the Mechanical Turk. These three services have improved on the organization profitability and have ensured the market share has tremendously been improved. Therefore, utilizing e-business and e-commerce has enabled Amazon to compete strategically maximizing on its infrastructural base. Moreover, utilizing these strategies has enabled Amazon to reduce the operational costs, and hence been competitive in an overcrowded market. 2- 2-Prepare a 150- word overview/commentary on: Differentiate between a functional (or silo) approach and a process approach for operations management. What are the advantages and disadvantages to IT support for these strategies? What changes to a company’s business strategy can occur when IT support increases? Functional approach strategy defines organizational requirements in terms of modules while process approach is aimed on how things are done, through learning, rather than focusing on the outputs (Wailgum, 2008). The advantage of functional approach is that specific tasks are specified to each module while the disadvantage is that integration between functions may not be smooth. On the other hand, the advantage of process approach is it allows throughout learning improving on quality while the disadvantage may be numerous conflicts between sectors within the organization; this is because different sectors are included in the way activities are accomplished. When the IT support increases in an organization, efficiency and effectiveness of the operations are championed, and thus beneficial to entire business requirements. Generally, the two approaches influences the way the IT support team that achieve its goal, and proposing strategies that can improve on the entire process (Bradburne, 2007). 3- Prepare a 150-word overview/commentary on: What are the differences between ERP and Customer Relationship Management (CRM) software? In what ways do they complement each other? What is the best use of each? ERP is fully integrated software that provides means of communication across sectors in an organization. It can be used to manage all activities in a company ranging from inventories, human resource, and finance, to providing customer service. Moreover, ERP may incorporate CRM. ERP is software that handles multiple processes and updates each stage simultaneously (Magid & Collier, 2007). On the other hand, CRM solution is designed to manage all customer requirements and interactions in an orderly manner. It brings together salespersons, updates the customers, customer can access directly information, and ensuring customer’s requirements are addressed immediately. Thus, CRM usually complements the operations of ERP, while ensuring the customer obtains value for their money. CRM is usually used by customer care of an organization while ERP is used by manufacturing, financial, and entire organizational processes. Thus, ERP ensures that information obtained from different sectors are assimilated and grouped based on the past, present and future strategies (Aleman & Wartman, 2009). 4- Prepare a 150-word overview/commentary on: Considering business needs, in our e-business world, for “getting the word out” on new products, take a look at Johnny Lee’s 5-minute TED Talks presentation and post your thoughts on the impact of social-networking sites, such as YouTube, blogs, etc., on business communication as practiced in the past. Please visit johnnylee.net and/or search on Johnny Lee on YouTube for additional input. http://www.ted.com/index.php/talks/johnny_lee_demos_wii_remote_hacks.html Social networking sites are an important component in championing business communication compared to strategies that were used in the past. Product targeting is achieved easily because it is easy to analyze consumer segments while some sites can pinpoint location of a person through GPS technology. Social networking provides means of meeting new people, with advanced search tools, it is easy to find users with the same interests, and businesses can communicate to these users easily (Aleman & Wartman, 2009). Moreover, most of these sites provide an opportunity of promoting business through creation of a business profile; the profile may contain logo, images, and other topics that are related to the business. Social networking sites is appropriate avenue in which information concerning a product can be transmitted through word of mouth e.g. one user informs another user. Thus, at the end of the day, the business vision, mission, products, and services are communicated to an array of users. 5- Write a 60-word commentary on question 2 different from the 150-word overview. Functional (silo) approach is grouping an organization in terms of tasks such as finance, sales & marketing, human resource, and manufacturing and logistics while process approach means utilizing the customer’s point of view. Thus, both systems provide a framework in which efficiency and effectiveness can be encouraged; however, functional approach reduces chances of conflict because there is a clear communication path (Bradburne, 2007). 6- Write another 60-word commentary on question 2 different from the 150-word overview and different from question 5. A process approach is a set of interacting or interrelated activities that transforms inputs into outputs. Process approach control and manage the interactions between the processes and interfaces between the functional hierarchies of many organizations. Functional approach is assigning specific tasks to specific organizational segment (Wailgum, 2008). The disadvantage of process approach is the continuous interactions, which may result in conflicts while the disadvantage of functional approach is the bureaucracy that is associated with hierarchical nature of such organizations. 7- Write a 60-word commentary on question 3 different from the 150-word overview. ERP and CRM systems are common technologies used in many business systems and they share certain features. ERP is enterprise oriented while CRM is customer oriented. Small businesses may utilize only CRM (where no great integration is needed) while large business may utilize both but as separate systems. Thus, ERP and CRM compliments each other only based on span of usage. 8- Write another 60-word commentary on question 3 different from the 150-word overview and different from question 7. ERP organizes functions of an organization through supporting human resources, finance through the use of relational databases – it provides functionality while CRM are focused in ensuring customer requirements be satisfied. CRM may utilize information in ERP to satisfy requirements of a query. CRM are frequently used in front office while ERP in managerial offices (Magid & Collier, 2007). 9- Write a 60-word commentary on question 4 different from the 150-word overview. Social networking sites are borderless and has minimal jurisdiction. This means a consumer in United States of America can easily communicate and exchange views with a Chinese in China, without physically crossing countries. Moreover, different users of these sites exchange views on a given product, and credibility of an origination, thus, the organizational products can be known by many people (Bradburne, 2007). 10- Write another 60-word commentary on question 4 different from the 150-word overview and different from question 9. Social networking sites just require an email and password to access it. Social networking is a cheaper means in which marketing can be fulfilled compared with other communication channels e.g. TV, radio, and newspapers, social networking provides a means in which information is communicated to consumers at a cheaper rate. Additionally, a link can be provided in which it directs consumers to the products. 11- Write another 60-word commentary on question 2 different from the 150-word overview, different from question 5, and 6. Functional approach defines an organization system in terms of parts while process approach defines an organization in the way activities are accomplished. Process approach usually champions quality while functional approach ensures organizational policies are followed conclusively. Process approach cultivates a positive approach towards accomplishment of duties because the employees have prior knowledge of the entire system (Wailgum, 2008). 12- Write another 60-word commentary on question 3 different from the 150-word overview, different from question 7, and 8. ERP system brings together all activities in an organization, defining clearly all functions that take place. An organization is composed and defined in terms of functions, and thus its requirements can easily be fulfilled by the use of ERP. CRM mostly deals with activities associated with consumers (Wailgum, 2008). This means that it champions the requirements of consumers. Generally, ERP is used in entire organization production while CRM is used mostly in fulfilling customer and suppliers requirements. References Aleman, A. & Wartman, K. 2009. Online social networking on campus: understanding what matters in student culture. London: Taylor & Francis Publishers. Bradburne, A. 2007. Practical Rails Social Networking Sites. London: Apress Publishers. Fox, W. 2009. The Management Process: An Integrated Functional Approach (PB). New York: IAP Publishers. Magid, L. & Collier, A. 2007. Myspace: safe online networking for your kids. New York: Person Prentice Hall Publishers. Wailgum, T. 2008. ERP Definition and Solutions. Retrieved from 10th February 2010, from, http://www.cio.com/article/40323/ERP_Definition_and_Solutions Wailgum, T. 2008. Supply Chain Management Definition and Solutions. Retrieved from 10th February 2010, from, http://www.cio.com/article/40940/Supply_Chain_Management_Definition_and_Solutions Read More