Play Around Toys Inc was started by Herb Johnston 20 years a

Play Around Toys Inc. was started by Herb Johnston 20 years ago on the south side of Indianapolis. Mr. Johnston made and sold his own special brand of toys. He believed in providing his customers the highest quality of product. Every toy made by Mr. Johnston was carefully inspected to ensure that every little detail was perfect. This dedication to quality and service allowed the company to grow from one to seven stores across Indiana. Today, the company is run by Mr. Johnston’s family, who wants to expand the business to other states. They plan to open a store in Louisville, KY, Edwardsburg MI, and Cincinnati OH. Over the next few weeks, you will help Play Around Toys understand how information systems can help them achieve competitive advantage. In this first lab, you will explain the importance of an information system in achieving business objectives, highlight the dimensions of the business problem, and suggest how to invest in an information system.

What is an Information System?

The executive management team at Play Around Toys wants to know more about information systems.

Task 1: In your own words, explain why information systems are important to business. Write a minimum of one page. In addition, describe how an information system works and explain the role of an information system in problem solving.

Understanding Dimensions of Business Problem

Task 2: Classify the following description of business problems as Organizational, Technology, or People.

Description of Business Problem

Dimension

(Organizational/Technology/People)

Insufficient telecommunications capacity

Insufficient or aging hardware

Difficulties of evaluating performance

Outdated business processes

Work environment

Complexity of task

Indecisive management

Unsupportive culture and attitudes

Rapid technological change

Poor management

Political conflict

Legal and regulatory compliance

Outdated software

Inadequate resources

Turbulent business environment, change

Lack of employee training

Incompatibility of old systems with new technology

Inadequate database capacity

Lack of employee support and participation

Deciding on Investing an Information System

Play Around Toys Inc. maintains a culture of producing high quality products while keeping costs as low as possible. As a strategy, they use information systems sparingly. Each store uses an information system to track sales. None of the stores have any automated system for tracking inventory. Managers know approximately how much inventory each stores is supposed to receive. The stores also do not have any method of scanning the cases or verifying the item count inside them. Inventory losses from theft or other mishaps have been rising and now represent three percent of total sales.

Task 3: In a minimum of one page, describe the decisions that need to be made before investing in an information system solution.

Solution

Information system is a combination of hardware, software, skilled personnel and infrastructure that is organized to improve planning and decision making.To gain maximum benefits from information system, one have to exploit all the capacities of the organization. Information systems gain its importance by processing the data from company\'s inputs to generate information that can be used for managing your operations and decision making. To increase the effectiveness of information system, you have to add more data to the system and use this data in a new wasy to analyse.

Important roles of the MIS

i. Satisfiesthe needs through different systems such as query system, analysis system, modeling system and decision support system.

ii. Helps in strategic planning, management control, operational control and transaction processing.

iii. The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control , and helps them further in decision-making at the operation level to correct an out of control situation.

iv. It helps in short term planning, objective setting and controlling the business functions. It is supported by the use of the management tools of planning and control.

v. Helps management in goal setting, strategic planning and evolving the business plans and their implementation.