Page 14 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Unit 1: Management Information Systems

However, an IOS allows to obtain operative advantages too, such as: Notes
 Reducing paperwork and manual operations;
 Reducing the stock levels;
 Accelerating the product and material flow;

 Standardizing of procedures;
 Accelerating the flow of information about changes on the demand;
 Reducing telecommunication costs.
The IT is a basic support that facilitates the co-ordination of different enterprises through EDI
systems, shared databases, e-mail, video conferences, which will allow them to work together.
They will be able to share information on the markets, on the needs for materials, on stock
levels, production schedules, and delivery programs. A key factor in an efficient exchange of
information within a network is the computer connection of its members. The computer links
accelerate the transference of information, since it provides the automatic transmission of data
between physically distant computers. These links can be used as a strategic instrument to
increase the competitiveness of the enterprise, binding it electronically with its customers and
suppliers through inter-organizational systems. The electronic connection facilitates the
approaching of the linked enterprises, which means that the companies may provide the customers
direct access to the internal databases, as well as just-in-time stock control.

Task What should be the structure of network in the organization? Explain.

Self Assessment

Fill in the blanks:

3. ....................... is an approach by which all types of media and communication will be
digitized allowing them to be used through a single worldwide network.
4. A .................................... is a specific kind of relationship joining a particular group of people,
objects, or events.
5. The ................................ inside a network cannot operate properly if they have not the
possibility to communicate quickly, accurately, and over long distances.
1.3 Changing Business Environment

The powerful worldwide changes have altered the environment of business. These changes in
the business environment and climate are classified into political, social, economical and
technological categories.
Environmental, organizational, and technological factors are creating a highly competitive business
environment where customers are the focal point. Further, environmental, organizational, and
technological factors can change quickly, sometimes in an unpredictable manner.
Therefore, companies need to react often and quickly to both the problems and the opportunities
resulting from this new business environment. This dramatic change is due to a set of business
pressures or drivers. They maintain that in order to succeed (or even to survive) in this dynamic
world, companies must not rely only on traditional actions such as lowering cost, but also
encourage innovative activities by empowering employees.

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