DEPARTMENT BUSINESS MANAGEMENT
STUDENT NAMEMAKHOSONKE A. MOYO
STUDENT NUMBER L0141641K
PROGRAMMEDEGREE IN ENTREPRENEURSHIP
MODULEINTRODUCTION TO INFORMATION TECHNOLOGY AND INFORMATION LITERACY MODULE CODE COAF 1104
LECTURERMR. B. DLAMINI
With the aid of relevant examples, explain the importance of information systems in executing the following organizational function: Forecasting
Information technology (IT) is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data, often in the context of a business or other enterprise. It is the technology that is driving what has often been called "the information revolution." Information Technology has become a major driving force in many organizations. These organizations are seeking to get IT applications which can help them sell their products or services effectively. For example, by use of Internet, organizations or businesses are moving information faster and they also coordinate multiple activities to achieve efficiency. In the business world it has helped in creating a ”networked economy” where businesses are linked with their suppliers, customers, manufacturers and business partners in real time. Users of information technology can use tools like computers to perform different tasks faster and accurately. For example, a computer can perform multiple functions on the same time which cannot be done by humans. This helps users perform a given task on time and it even reduces tension and stress at work. Even though information technology is managed by humans, it is more likely to be more accurate than humans. An example of a software platform used is an Enterprise Resource Planning (ERP) System. ERP software typically consists of multiple enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing. A business can use ERP software to manage back-office activities and tasks including the following: Distribution process management, supply chain management, services knowledge base, configure, prices, improve accuracy of financial data, facilitate better project planning, automate employee life-cycle, standardize critical business procedures, reduce redundant tasks, assess business needs, accounting and financial applications, lower purchasing costs, manage human resources and payroll. Some of the most common ERP modules include those for product planning and forecasting, material purchasing, inventory control, distribution, accounting, marketing, finance and HR. Information systems are a very important tool to organizations and have helped in forecasting, planning, control, coordination and operational optimization, to name a few facets. Forecasting is the use of historic data to determine the direction of future trends. Forecasting is used by companies to determine how to allocate their budgets for an upcoming period of time. This is typically based on demand for the goods and services it offers, compared to the cost of producing them. Investors utilize forecasting to determine if events affecting a company, such as sales expectations, will increase or decrease the price of shares in that company. Forecasting also provides an important benchmark for firms which have a long-term perspective of operations. With the help of forecasting the organizations can find out whether they can succeed in the business, whether they can face the existing competition and what is the possibility of creating demand for the proposed product. The success of a business unit depends upon as to how sound is the forecasting. Proper forecasting will help to minimise the role of luck or chance in determining business...
References: Goold, Michael, Andrew Campbell, and Marcus Alexander. Corporate-Level Strategy: Creating Value in the Multibusiness Company. John Wiley & Sons, 1994.
Gottfredson, Mark, and Steve Schubert. Breakthrough Imperative: How the Best Managers Get Outstanding Results. Collins Business, 2008.
Hamel, Gary, and C.K. Prahalad. Competing for the Future. Harvard Business School Press, 1994.
Hrebiniak, Lawrence G. Making Strategy Work: Leading Effective Execution and Change. Wharton School Publishing, 2005.
Ken Laudon and Jane Laudon, Management Information Systems, 12E, Prentice Hall, 2012
Koontz, H., & O 'Donnel, C. (1978). Essentials of management. New Delhi: Tata McGraw-Hill, p. 104-105.Massie, J. L. (1979). Essentials of management. New Delhi: Prentice-Hall.
Porter, Michael E. Competitive Strategy: Techniques for Analysing Industries and Competitors. Free Press, 1998.
Stevenson, W. J. (1989). Introduction to management science. Boston: Irwin.
Waldron, M.W. (1984). Management of adult and extension education. In D. Blackburn (Ed.), Extension handbook. Guelph: University of Guelph Press, p. 127-140.
Please join StudyMode to read the full document