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Businesses are set with the aim of making profits and becoming leaders in their line of operation. They use various policies and practices to become successful and provide a benchmark for other businesses in the industry. One of the tools they have used to achieve it is the integration of information systems in their routine operations. Information system refers to computerized system that helps the business to process raw data into a more usable information that enhances easy reporting, analyzing and making of a decision. There are many types of information systems used, and organizations apply them differently to achieve their goals. This paper will look at the types of MIS and how they are used in organizations of a distinct nature. Also, the paper attempts to focus on how information technology is used by these companies to gain competitive advantage over their competitors. Finally, the paper tackles the effects of using IT and the potential security breaches and crimes.
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Management Information Systems
Amazon is a successful retailing company that uses the Internet to operate its business. They deal with online selling of books, CDs and even videos. They also help authors, publishers and suppliers to display their books and other goods for potential buyers to view and make orders. Information systems (IS) have helped the company to rise over its competitors during the past years. Due to the use of Enterprise Resource Planning System (ERP), which is similar to TPS, the company is able to manage their retailing activities efficiently and provide customers with quality service. It helps to plan the inventories and make necessary orders. IS enables Amazon’s customers to make payments easily and obtain their goods faster and safely.
McDonalds operates in the food service industry and provides its services to a huge number of customers worldwide. It has branches almost in all countries of the world. The company uses IS to track the many transactions hence ensuring efficiency. IS is also applied to expand the business and achieve their goals. McDonalds has maintained its quality, which helps to cater many customers as compared to its competitors. The company also needs to keep in touch with the suppliers to ensure timely supply of quality ingredients. Therefore, MIS is used in McDonalds in many ways to attract customers and maintain quality services.
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Use of Information Systems
Amazon uses many systems to ensure that customers can easily access the items’ catalogue and place orders, especially due to the use of a browser or device system provided by Enterprise Resource Planning. It enables the company to collect data and manage it to maintain effective functioning on the constant basis. Through such systems, Amazon is provides personalized services that meet the customers’ needs. It also applies safety measures to connect their customers to systems that are secure in terms of privacy protection of any information they may provide as credit and debit card numbers. The company has a system that enables them to reserve the inventory and allows customers to make payments fast and easy. A sophisticated system that helps in coordinating the shipment process and tracking the order status once a payment is made. Finally, sales record keeping software is being applied, as well.
McDonalds uses MIS to make decisions. The system transforms raw data to form reports for the management to use. Such decisions that can increase the profits and improve business performance by effective planning are being based on MIS use. Transaction Processing System (TPS) is widely applied to order raw materials from suppliers, and thus, the system contains the suppliers’ addresses, names, quality and quantity data and the invoice amount. It helps McDonald’s management to carry out their daily business activities like recording sales, keeping employee records and processing their salaries. In addition, McDonalds uses Decision Support System (DSS) to analyze the market and make expansion decisions by identifying the opportunities available. The analyzed data contains the wireless services the customers use, the length of time they stay in the restaurant, and the age category of customers vising the fast food network, whether they are the youths, older people or teenagers. It helps to make decisions on which peculiar services to offer in order to attract and retain customers.
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Use of Information Technology for Competitive Advantage
Amazon reviews its systems every time so as to remain competitive in the market. The company has integrated internet technology so as to create a value web with other organizations alike to enable them operate easily, obtain data about its competitors and achieve their goals. It analyzes market trends to make services available for their customers and combine other services like PayPal and FedEx shipping to ensure faster payment and delivery of goods. They also use information systems to maintain strong relationship and loyalty with their customers and suppliers. Amazon is can track customer preference trends and use this information to make recommendations to other customers thus attracting more clients (Information Systems, Organizations, and Strategy, n.d.).
McDonalds applies decision support system to analyze market data to find solutions to the problems the company may face. Data analysis helps to achieve competitive advantage, especially when choosing the best course of actions to be taken to increase sales and attract more customers. The company also uses “Made for You” System to ensure that the business raises its productivity achieving more customer satisfaction (McDonald’s, 2012).