Question

You are the manager of a Tim Hortons coffee shop. Describe precisely and using examples how the information system can help you to run the business ?

Answer 1

Use of an information system can help to run the business in following manner.

(i) It can help the manager to analyse the past patterns by recording the sales pattern over past periods, which can prove to be valuable inputs to predict future sales and take the capacity decisions and plan more effectively according to seasonal variations and trends. Example is to determinee right number of overtime employees on weekends

(ii) It might help the manager to optimise its inventory policies and order the right items at the right time in right quantity. Example is to identify the fast moving items from slow movers and order them accordingly

(iii) It helps the manager to coordinate more effectively with its vendors, which in turn helps to improve the service levels, lower the supply chain costs, reduce te lead time and improve the customer satisfaction. Example is to place order of seventy litres of milk to the vendor, through information system and obtain confirmation for a birthday party this evening.

(iv) It can help the manager to communicate with stakeholders more effectively, thereby improving accountability, make rational decisions and make the processes more responsive.

(v) It helps him to see the big picutre more effectively with entire organisational performance in front of him and better visibility of processes. It can help in strategic planning for upcoming international event in the town, which calls for immaculate planning to meet the surge in demand

(vi) Greater interpersonal communication improves organisational culture.