Information Systems:
Information
Systems enable companies to take raw data and convert it into useful
information that can help the company run more efficiently. Information Systems can be described as a set
of interrelated components that collect, manipulate, and disseminate data and
information and provide feedback to meet an objective. This process can be
employed manually, but by using computer-based information systems, it becomes
possible to manage much more information as well as disseminating it to all the
necessary outlets.
Wal-Mart gives its
suppliers access to its inventory system, so the suppliers can monitor the
database and automatically send another shipment when stocks are low,
eliminating the need for purchase orders. Such an interaction can be described
as business-to-business E-commerce (A business transaction executed
electronically). Those suppliers in turn have their own systems in place that
ensure they fulfill all their responsibilities.
By
utilizing E-commerce, specifically business to consumer, a company increases it
value by being able to reach a larger market. Instead of only having a retail
location, sales can be made to anyone with an Internet connection, who may not
have been able to make it to the store.
E-commerce can give a company a competitive advantage among competitors,
including better customer service and lower costs.
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