July 2, 2012
Information System Business Proposal
A Business Proposal to Increase Revenue, Reduce Wasted Spending, and Increase Customer Base
John A. Smith
Vice President of Nostalgic Records
Research and Marketing
June 29, 2012
Proposal Number: 120629
Types of Organizational Information Systems Table5
Average Percent of sales for companies engaging in E-commerce Chart5
Sales trend increase for Internet and in store shopping table6
Functional Area IS7
Transaction processing system7
Management Information System7
Electronic commerce system8
Areas supported by Information Systems8
Information Systems (IS) are tools that aid managers in accomplishing their goals using Information and Communication Technologies (ITC). These Information Systems tools are a proven vital piece of successful new businesses being competitive in the digital world. Amazon, Barns & Noble, and numerous other companies have used these tools successfully and in today’s business world there are few businesses whose processes are managed at some level by Information and Communication Technologies (ITC). Background
The digital area is upon us and without an adequate and maintained information system, the chances of survival in this digital competitive market if greatly reduces. In today’s market, companies need to explore all their options to reach out to a new customer base and into further geographical areas. The days of physically spamming someone’s mailbox with flyers is drawing to an end due to the new innovations in reaching these customers. More cost effective methods have been developed to assist you in administrative record keeping and instant inventory adjustments at the point of sales for the purpose of instant requisition for restock. Five simple information systems can provide the competitive edge needed in the digital business environment.
Types of Organizational Information Systems Table
Types of Organizational Information Systems|
Types of Systems| Function|
Functional area IS| Support a particular functional area in the organization| Transaction processing system| Supports the monitoring, collection, storage, and processing of data from the organization’s basic business transactions| Management Information System| Produces reports summarized from transaction data| Executive Dashboard| Summarizes business information that is important to executives | Electronic commerce system| Enable organizations to conduct business-to-business (B2B) and business-to-consumer (B2C) electronic commerce| Table 1. Listing of the five types of information systems and a brief description of their functions. Average Percent of sales for companies engaging in E-commerce Chart
Figure 1. On average, the point of sales for a business that is engaging in E-commerce is greater for online orders. Second is in store purchases followed by mail order catalog.
With the average family household owning a computer or other online accessible device, online Internet shopping has become more common than receiving a daily newspaper at your doorstep. In fact, online shopping for 2011 increase 22% from the previous year and is expected an increase 26% for 2012. With these percentages increasing at this trend, businesses cannot afford to not invest into some form of information system. Figure 2 below shows the trend of increased internet sales over the last five years. Sales trend increase for Internet and in store shopping table
Figure 2. Internet shopping has been steadily outgrowing in store shopping for the last 5 consecutive years.
With the ever-growing wide accessibility to the Internet and the busy schedule of...