Question

1-Explain why the IKEA's information system belong to which information system category (TPS, MIS, DSS, ESS, ERP, CRM, SCM, KMS). Support. 2-Which strategic business objectives can be achieved by using the information systems of IKEA? Prove and support your idea.

Answer 1

Answer 1= The main form of an information system that is being used in IKEA is the MIS that is Management Information System that is an information system that is commonly being used by organizations for decision-making purposes, having better coordination, control, detailed analysis and information visualization in the firm.

The different branches of IKEA are interconnected to the information system which is being used by all the branches with the help of a network that is termed as “inter IKEA system” both at international and national levels. This is commonly used by the management for the monitoring of sales in different branches, determining the current stock levels cash, demand of the different products, inventory level and supply of products in the branches. The managers at the local stores facilitate the basic information to this system and when all this information is collected from national to international level, this is used by the management for the decision making. The information is distributed with the help of the internet and wide area networks.

Answer 2= The company is looking to have Operational excellence as the strategic business objective to be fulfilled with the help of the information system. By using the “inter IKEA system” which is the IS used by the company, the company aims to overcome the operational hurdles faced in the different branches. The company has close monitoring of the different aspects of the store operations so that any operational restrictions can be overcome. There is regular monitoring of the inventory socks, in case of replenishment, the request is sent to the warehouse automatically, the management can also monitor the sale and demand trend in order to decide the availability of different products at different stores and so on. This is all done in order to make sure that no sales are lost due to operational inefficiency. The supply chain management is also closely related to it