Management Information Systems

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1) Description of two information systems for operational support in a business

The two types of information systems for operational support in a business are;

  • Transaction processing system (TPS).

  • Enterprise collaboration system (ECS).

Transaction processing system (TPS) is an example of operational support system (OSS) that records and processes data that results from transactions within a business (O’Neill, 2011). It processes sales, inventory, purchase and other organizational databases. These databases are later used to provide data resources that is processed and used by decision support system and executive information system within an organization. An example of TPS is sales and inventory processing.

Enterprise collaboration system (ECS) is another example of OSS that employs a variety of informational technologies to aid people to work together (O’Neill, 2011). It helps an organization to collaborate in, share resources, communicating ideas as well as coordinating work efforts within the organization. It aims in at using information technology in enhancing creativity and productivity of an organization as well as that of work groups within an organization. Example of enterprise collaboration systems are email and video conferencing.

2) Description of two examples of cost leadership strategy

Wal-Mart is a best example of a successful cost leadership strategy. It uses its slogan “everyday low prices” to attract its customers. By this slogan, Wal-Mart offers its products at a lower price than its competitors do in a consistent manner. It achieves its cost advantage by relying on its large scale and efficient supply chain. Wal-Mart has the capability of sourcing its products at cheaper rates from both domestic and low-wage international markets (Dudovskiy, 2016).

Ikea is another example of cost leadership strategy. It has changed the furniture industry by offering cheap but yet stylish furniture to its customers. Ikea’s low prices are attributed to sourcing its products from low-wage states and offering a simple level of services to its customers. Moreover, to reduce its cost of production, it does not deliver or assemble its products to its has a policy whereby customers must collect their furniture from the warehouse and later assemble at their homes by themselves. This allows it to cut production costs and offer their products at a lower cost (Dudovskiy, 2016).

3) Description of two benefits of knowledge management systems

Knowledge management systems enable fast and better decision-making (North et. al, 2004). They allow delivery of relevant information in a time of need through search, support, subscription and syndication thus providing a basis for making the decision.

Secondly, knowledge management systems aid in reusing ideas, documents and even expertise (North et. al, 2004). Having efficient knowledge management systems implies that organization has no need to re-invent the wheel. Organizations can use knowledge present in the system. This reduces the amount of work required to perform the same task again. For example, if an organization has created a presentation that addresses an occurring problem, it can be used in similar occurrences in the future.

4) Explain one application of strategic information system to gain competitive advantage

Organizations use the strategic information system to gain a competitive advantage in several ways. For instance, organizations create barriers that hinder entry into the market (Thakur, 2017). Organizations use informational systems to provide products or even services that are difficult to duplicate. This hinders competitors from venturing into the market as they find the cost of creating or even adopting similar product very high.

5) Three benefits of using enterprise planning in business

First, enterprise planning enhances management integration (Zare Mehrjerdi, 2010). Through enterprise planning, different users from multiple areas of a business can join into one program. This allows manager to have access to the entire database. Moreover, management integration through enterprise planning allows information to be accurately stored in a manner that it will not be lost.

Secondly, enterprise planning brings cost benefits to a business (Zare Mehrjerdi, 2010). Enterprise planning allows business managers to make considerable cost reductions in relation to administrative tasks or even inventory. Information is shared across all levels within the system thus making communication easy. Further, operational costs are reduced whereby enterprise planning merges all business aspects into a single central system that allows business to cut down on unprofitable areas and hence improve. Lastly, enterprise planning in business enhances strategy planning. It enables managers to have quick and easy access to information they require when making decisions (Zare Mehrjerdi, 2010).


Dudovskiy, J (2016). Walmart Value Chain Analysis. Research Methodology. Retrieved 22 March 2017, from

North, K., Reinhardt, R., Schmidt, A., & Schmidt, A. (2004). The benefits of knowledge management: some empirical evidence. Retrieved 22 March 2017, from

O’Neill, D. (2011). Business Intelligence Competency Centers. International Journal Of Business Intelligence Research, 2(3), 21-35.

Thakur, D. (2017). How do the organizations use their strategic information systems for gaining competitive advantage. Retrieved 22 March 2017, from use- their-strategic-information-systems-for-gaining-competitive-advantage

Zare Mehrjerdi, Y. (2010). Enterprise resource planning: risk and benefit analysis. Business Strategy Series, 11(5), 308-324.