Value Chain Task

"You have decided to open an Internet site to buy and sell used CDs to other students. Describe the value chain for your new business."


If I opened an internet site to buy and sell used CDs to other students, my value chain would consist of the following.

Product: First, I would need a source for used CDs aside of the ones I may currently own. This would be where other students selling me their own CDs would come in. Since I’m not selling new compact discs, I don’t need a distributor, or any larger business supporting my store.

Storefront: Second, I would need a web server or internet storefront to set-up my store to sell the CDs. Without the site, I would have no means to practically sell my product.

Storage: Next, I would need a place to store the CDs while they are waiting to be sold. I could store them in my house, a storage unit, or any place that I could have easy access to send them as soon as possible.

Shipping: Additionally, the store would need a mechanism to ship the item. I would most likely have to use the postal service or a private shipping company.

Marketing: Finally, my store would need a marketing system to get the word out about my business in order to increase revenues.

Hardware and Software

Today’s society is full of ever changing technology that serves a variety of purposes. It helps people stay in touch with each other almost effortlessly over the internet, but also serves a more practical purpose. It can help business prosper if they have enough foresight to keep up with the latest technology trends. A few pieces of hardware that can assist companies are:

GPS- GPS systems can assist truckers, shipping companies, and taxi companies save money and time throughout the business day. No longer do they need to plot out the most effective routes, but they can get updated directions as they go about their travels. Many systems also give up to the minute traffic information to avoid sitting in costly traffic jams.

Smartphones- Smartphones allow people and business to stay in touch with important clients and contacts anywhere they may go. Users have the ability to make calls, send/receive emails, and even take and send pictures in large quantities over the typical cell phone network. “ Their ability to get the job done away from the office, a computer, and maintaining connections while mobile make them seem autonomous when compared to the various technologies that preceded it. Smart phones are a great tool to help you improve your business. [1]

Tablets/Ipads- Similar to Smartphones, tablets and Ipads are allowing employees and businesses to communicate and work with much greater ease than in years previous. They allow for access to the internet, many productive software systems, and also take the place of paper information. For example, airlines have now started to equip pilots with Ipads to replace paper charts and maps. “The FAA does allow pilots to use so-called electronic flight bags, but these aviation computers are bulky and weigh as much as 18 pounds." By contrast an iPad weighs less than 1.5 pounds, and "will replace about 38 pounds of paper operating manuals, navigation charts and other pilot materials." [2]

Kindles/Ebooks- The rise of Ebooks and Kindles in recent years has show that another small device can help improve business and make work easier for many employees. These small electronic devices can hold thousands of documents or books, allowing for everything to be found in one place. Instead of lugging around a few books and a briefcases worth of information, Kindle users now have everything at their fingertips. “Kindle makes it easy to take your personal and professional documents with you. Each Kindle has a unique and customizable e-mail address. This allows you and your approved contacts to send Word, PDF Documents, and pictures to your Kindle.” [3].

G-Chat- GChat, or similar systems, can help employees maintain contact with one another much easier than having to keep sending emails to one another. Instead of waiting for replies whenever the person may check their email, Gchat and other live messaging systems allow for live interaction and contact with anybody who is already in the employees Email lists. I have several friends who work in accounting and maintain contact with other employees through inter-office live messaging programs and systems.

1-http://businessowner.org/technology/use-smartphones-to-improve-your-business/

2-http://www.theatlanticwire.com/technology/2011/08/giving-pilots-ipads-might-not-be-greatest-idea/41618/

3-http://www.amazon.com/gp/feature.html?ie=UTF8&docId=1000658051

Evaluating the Importance of an IS

Electronic and mobile commerce information systems have an impact on our lives every day, sometimes in ways we don’t even realize. Electronic commerce allows for employees and other individuals to conduct business through computers, phones, or any other means that uses an electronic device. Whenever someone orders an application on their I-phone, downloads a song on I-tunes, or downloads a book for their Kindle, they just conducted an E-business transaction. Often times the business already has the payment information stored securely, so you don’t even have to reach for your wallet to finish the transaction. This provides for increased customer satisfaction due to the convenience. Increased satisfaction usually means a customer will continue to purchase your items in the future. Aside of individual customers, many companies and stores now use electronic commerce information systems to help boost business and keep it running smoothly.

What good is a store if no items are on the shelves? The company would lose business to competitors and possibly drop customers for good. Electronic information systems allow for inventories to stay full and shelves well stocked. For example, stores can now order merchandise for the shelves without having to do an inventory every week to determine what items are needed. The store I work at has a system that automatically keeps track of quantity on hand, and when they get low, if the item will still be carried, it gets automatically ordered and shipped to the store within a few weeks. They are in the process of rolling out a new information system that will allow customers to special order large quantities of items and have them in the store within two weeks. In the past, customers would have to place an order and hope it came in within four weeks, or search countless stores around the area looking for more of the required item. This will without a doubt help the company increase sales that it may have lost to competitors due to low inventories.

Looking at the components of an information system, input, processing, output, and feedback, it is easy to breakdown what parts of this information system at my job fall under each category. The input would be the customers special order or the system automatically placing the order for the low item. The processing is when it actually gets to the warehouse and the employees ship the item. The output of this system is when the customer actually receives the special order, or when the delivery arrives. Feedback could possibly be if the order was late, the customer could complain and the management would have to tweak the system in order to meet future needs and prevent failures.

Information Systems Task 2.4

Ever-changing information systems are crucial to the increased success and profitability of modern businesses. If companies do not keep up with current trends, changing technology, and consumer needs, they will most likely suffer decreased revenues. Information systems are not a new thing, but only recently have been getting recognition because of the money highly efficient information systems can save. In Illinois, since implementing electronic medical data records, “…the share of primary care providers using a basic electronic health record has gone from under 20 percent to nearly 30 percent". [1] 

It is important to have a system that can streamline activities within companies, while having the ability to change the system accordingly. Information systems are comprised of four main components. Input is what goes into the system, usually comprised of raw data. Processing takes the data and makes it into something useful. Output is what comes out after the data is processed. The book uses the example of hours worked being processed into a paycheck. The final aspect is feedback, which I feel is the most important aspect of an information system.

Feedback helps the person or people who use or create the information system learn how to fix or make better the system being used. “Generally experts (but also simple examples from everyone's life) indicate that no learning would occur if some kind of feedback was not available.”[2] If systems did not provide a mechanism for how to improve how it is running or being used, there would be no point in having the information system.

Having a helpful information system isn’t just enough to help a business succeed. As we have seen in the book, it is very important that employees accept the technology. Companies need to have high technology diffusion rates for new systems to succeed. “Installing automation simply for the sake of having it guarantees it'll be a just an ordinary (and expensive!) business possession, but grasping an understanding of the ways it can be used is the real value.”[3]

[1]http://articles.chicagotribune.com/2011-04-11/news/ct-biz-0412-medical-records-20110411_1_health-care-concerns-about-patient-privacy-medical-information/2 

[2]http://www.economicswebinstitute.org/glossary/feedback.htm 

[3]http://www.helium.com/items/853154-maximizing-information-systems-to-gain-a-competitive-advantage 

Information Systems

Hello. This is my information systems blog. This is just a test.