To: IQBAL LATIF who wrote (30008 ) 12/10/1999 1:55:00 AM From: JD Respond to of 50167
A very well organized and thought out presentation of the benefits of CIS. I give it a resounding A+. I don't know how extensive you need to be with this paper, but to an old timer like me, two of the most important benefits of CIS are productivity increases (both management & workers) and increased return on investment. Productivity is increased for managers by the instant flow of information provided by CIS (which allows for resource allocation to the proper places at the proper time and in the proper amount). One Wal-Mart example of this would be employee scheduling, which is now done by computer. The computer knows all the factors which need to be considered to build the employee schedule - customers per hour, # of cases on the 10:00 delivery, which part-time employees need Sat off, seasonal shopping trends,...and on and on. 10 years ago you would see the manager in his office, stacks of schedule notes from his employees in one hand, a pile of sales logs in another, trying to make sense of hundreds of bits of info to make a schedule that "works" (meets co. guidelines on productivity, overtime, ....). I find it amazing that the creation of this "virtual world" within the CIS has such a profound impact upon the "brick and mortar" real world. Just extend the logic of your last sentence under positive impact #2 : The result: dramatic improvements in customer service because inventory is always fully stocked. This automated ordering system means quicker inventory turns (no waiting for the dept. head's weekly inventory to order). And quicker inventory turns also means that you can serve the same product demand with less inventory, which means you need less shelf space to carry this lower inventory amount, which means 100,000 sq. ft. stores which used to carry Y amount of products can now carry perhaps 10% more items (I've never worked retail - 10% is just a guess, but the percentage of increased inventory turns is the amount you have increased your shelf space). In other words, because of the ordering system you have in this virtual CIS world, you have just increased your real world selling space (without having to buy a single brick to expand). And this leads to an increase of your return on investment. And a virtual storefront on the internet can really leverage your return on the cost of this capital investment. Like I said, I'm sure this is more detail than you need for this paper, but it gives you a taste of what lies ahead in your business education, and more importantly, the real business world. Thank you for sharing your paper with the thread - reading your thought provoking assignment leads me into a few investment areas that I think will benefit from this CIS / internet dependent economy that is developing. The areas of "ASP" (Application Service Providers) and internet fulfillment co's may lead to some profit making investments.... Good Luck and best to your family, Jerry