Advantages and Disadvantages of Information System

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  • Topic: Electronic Data Interchange, Airline ticket, Travel agency
  • Pages : 5 (1429 words )
  • Download(s) : 12870
  • Published : August 2, 2012
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MIS is the study of information needs of a management at every level in making operational, tactical, and strategic decisions. Its aim is to design and implement machine procedures, processes, and routines that provide detailed reports in an accurate, consistent, and efficient manner. Most MISs are organized along the function lines of an organization. Typical functional management information systems include financial, manufacturing, marketing, human resources and other specialized systems. Each system is composed of inputs, processing subsystems, and outputs.

Helpfulness of MIS to Air Asia (Online reservation system)

Online reservation system is helping Air Asia to reduce cost, employees and time. Air Asia use online reservation system for customers to book airlines tickets on 24 hours, it can increase the bookings while the employees are not in front of the computers and reduce the complaint from customers. Air Asia is providing two different ways for customers to book the ticket. One way is for customers only book the airlines ticket while another way is give customers to book airlines ticket and hotels. If customers book airlines ticket with hotel it is cheaper than only book airlines ticket. So, most customers will choose book airlines ticket with hotels, it can settle the problems of finding hotel in the country. Air Asia use online reservation system to show that airlines schedule, fare tariffs, promotion, customer’s reservation, and ticket records. Online reservation system is direct distributed with Global Distribution System (GDS), Air Asia can connect with travel agencies to confirm the tickets or hotel rooms for customers. This system is flexible for those customers who plan to travel and can buy airlines ticket with the cheap prices. Otherwise, customers also can choose the suitable and comfortable that seat with friends or family. This system will show that customers can choose either seat in first, business or economy seat; it can help customers to compare the price with others airlines company such as MAS. Air Asia is doing promotion to increase the numbers of online booking, so this system will show the date, place and which day of the airlines ticket is the cheapest. On the other hand, Air Asia will send e-mail to members and let them know that which day they doing promotion with the cheaper price to attract customers book the airlines ticket. This system will confirm the customer’s personal information, it is like a security for customers which won’t exchange the airlines ticket with a stranger or sell it. Air Asia also wants to protect the customer’s credit card numbers and personal information.

Advantages and disadvantages of Online Reservation System (ORS)

Advantages

First of all, online reservation system will help the Air Asia to save more cost, because by producing less paper for passenger’s ticket. For example, by using this system, the Air Asia can save the cost for RM 2,000 everyday, such as, the Air Asia has to produce a thousand of papers everyday and the cost is RM 0.20 per each paper. This thing is one of the biggest saving for the Air Asia.

Second of all, online reservation system will deliberate accurate financial report because with more efficient passenger processing, company gets immediate access to the sold inventory revenue, it can record revenue immediately once the travelers checks in. It helps to reduce error, which is caused by human resource factors such as mistake of receptionist, for more accurate report.

The third advantage is which benefits both the customers and the Air Asia. Online reservation system will benefits the customer or the passengers by saving time for ticket issuing process, in the other hand the Air Asia do not only save cost but also save operating cost as well, for example by skipping the process of printing paper ticket of passengers which save operating cost a lot. Online reservation system a lot more...
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