Posted: January 8th, 2023

What is an Information System

Introduction Play Around Toys Inc. was started by Herb Johnston 20 years ago on the south side of Indianapolis. Mr. Johnston made and sold his own special brand of toys. He believed in providing his customers the highest quality of product. Every toy made by Mr. Johnston was carefully inspected to ensure that every little detail was perfect. This dedication to quality and service allowed the company to grow from one to seven stores across Indiana. Today, the company is run by Mr. Johnston’s family, who wants to expand the business to other states. They plan to open a store in Louisville, KY, Edwardsburg MI, and Cincinnati OH. Over the next few weeks, you will help Play Around Toys understand how information systems can help them achieve competitive advantage. In this first lab, you will explain the importance of an information system in achieving business objectives, highlight the dimensions of the business problem, and suggest how to invest in an information system.What is an Information System? The executive management team at Play Around Toys wants to know more about information systems. Task 1: In your own words, explain why information systems are important to business. Write a minimum of one page. In addition, describe how an information system works and explain the role of an information system in problem solving.Understanding Dimensions of Business Problem Task 2: Classify the following description of business problems as Organizational, Technology,or People.Description of Business ProblemDimension (Organizational/Technology/People)Insufficient telecommunications capacityInsufficient or aging hardwareDifficulties of evaluating performanceOutdated business processesWork environmentComplexity of taskIndecisive managementUnsupportive culture and attitudesRapid technological changePoor managementPolitical conflictLegal and regulatory complianceOutdated softwareInadequate resourcesTurbulent business environment, changeLack of employee trainingIncompatibility of old systems with new technologyInadequate database capacityLack of employee support and participationDeciding on Investing an Information System Play Around Toys Inc. maintains a culture of producing high quality products while keeping costs as low as possible. As a strategy, they use information systems sparingly. Each store uses an information system to track sales. None of the stores have any automated system for tracking inventory. Managers know approximately how much inventory each stores is supposed to receive. The stores also do not have any method of scanning the cases or verifying the item count inside them. Inventory losses from theft or other mishaps have been rising and now represent three percent of total sales. Task 3: In a minimum of one page, describe the decisions that need to be made before investing in an information system solution.

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