Business information system - Case Study Example

Business Information System Introduction Information constitutes the most important tool for business success. Different businessesuse varied information systems to conduct daily activities. The information system to be used is basically determined by the organizational structure of the business and the type of venture. It is imperative to develop effective information systems in order to enhance smooth progress of various activities within and outside the business (Wigand, 2003). Causes that led to the problem Unclear communication paths The enterprise had not established sound communication channels.

In fact, the top management and the junior employees operated under different and confusing communication systems. The juniors had no clear idea about the source or the destination of certain messages. For this reason, normal operations were interrupted since a smooth information system for linking the head office with constituent offices was not present. In fact, the growth and expansion of the business posed a communication challenge that took the management several years to fix. Technological challenges The company, Neelkanth Drugs, had not installed sufficient modern technology facilities.

The expansion strategy adopted by the enterprise called for an enormous investment in modern technology devices such computers. Shortage of such faculties strained the company’s management, and they had to source funds from various sources in order attain a full technological transformation. Consequences of the problem The lack of modern technology support infrastructures resulted in delayed services and reduced profits. For instance, the employees of the company could work for long distances to make orders for the law materials.

In addition, information would take long time before getting to the relevant user. In this regard, execution of services was delayed, and profits significantly reduced. In addition, some customers were lost to the competitors, either because of delays in the delivery of products or delays in the dissemination of important information to suppliers and distributors. SWOT Analysis Strengths The adoption of modern technology has aided in increasing the company’s profits due to increased sale Production has been made easy since some processes have been automated Electronic filing system replaced the tradition filing system thereby making information easily accessible Weakness Insufficient workforce, especially the technical team The full Installation of modern information system is costly and may affect the normal operations of the company Opportunities The company may opt to establish a technical team composed of information technology specialties to assist in fix technological problems that may arise The company has a competent team of staff members who can be easily trained to use the modern information technology facilities Threats Investment in the information technology may drain the company’s resources Technical problems might result in huge losses for the enterprise Conclusion The information system used by a company affects it performance and quality of production.

It is important for firms to establish effective information systems in order to increase their market share and reduce production cost. However, caution must be taken when investing in the modern technology in order to avoid poor performance of other sectors of the company. Reference: Wigand, R. T. (2003). Introduction to business information systems. Berlin [u.a].: Springer-Verl.