Nowadays Information System (IS) has become a vital component of successful organisation particularly for manager in order for organisation to grow and survive.
.0 Introduction.
'As Information system (IS) can be defined technically as a set of interrelated components that collect (or retrieve), process, store and distribute information to support decision making, coordination, and control in an organization.' (Lauden, Lauden, 2003, pg7) However, Information System has to go through three basic activities, which include input, processing, and output in order to transform its raw data into essential information. Meanwhile, from the business prospective, IS represents an organizational and management solution based on information technology to a challenge posed by the environment. (Lauden, Lauden, 2003, pg31)
Information System is useful for helping organizations to deal with changes in global economies and business enterprise. Firms use Information System on communication and analytic tools for conducting trade and managing business on a global sale. Besides that, Information System is the basic of service in knowledge economies; new knowledge based products and help firms manage their knowledge assets. By using Information System, a business can adopt flatter, more decentralized structures and more flexible arrangement of employees and managements. (Laudon, Laudon, 2003 pg30)
Nowadays Information System (IS) has become a vital component of successful organisation particularly for manager in order for organisation to grow and survive. With Information System, it can provide companies with require practical and functional information that leads to efficient, operation, competitive advantage and effective
management. On the other hand, Information System can critically damage and negatively effect it prospect as well as bring dissatisfaction and unable to fulfill all the requirements for success and survival if Information System appropriately sustain the business objective operation strategy of an organisation. Therefore, this report contains the result of research about a real case study. - " Cisco Systems: Poster Child for the Digital Firm?"
Significantly, the purpose of this report is to critically analyze why an Information System is commonly designed to be efficient, as opposed to effective and thus evaluate why it fails to deliver in practice what business managers require from their system .It is particularly important in an attempt to increase the efficient and improve performance of Information System in organization's operation.
Therefore, the objective of this report can be summarizing as the following:
. To analyze the reason why an Information System is designed to be efficient as opposed to effective
2. To evaluate the reason why Information System fails to deliver in practice what business managers require from the system.
.4 Methodology.
The information for this report which obtained from secondary research was conducted through online/electronic sources, magazines and reference books. In conjunction with this case - 'Cisco System: Poster Child for the Digital Firm', it will be enclosed in the appendix.
2.0 Context
2.1 Summary of the Case
Cisco System advertises itself as the company on which the Internet runs. Cisco has been very successful under the leadership of CEO John Chambers. The key to its success is that Cisco uses information systems and the Internet in everyway it can as well as using the two main strategies which enhance Cisco's growth. Besides, Cisco is using Internet to drive its business and promoted itself as a model to other companies.
In 1995, Cisco started selling its product through Internet. However, in the year 2000, the Cisco Connection Online (CCO) is established in order to make the delivery process more efficient and convenient to both suppliers and customers.
Besides that, Cisco also uses Internet to establish a business-to-business supply chain extranet which is called Cisco Manufacturing Connection Online (MCO). MCO is established for the manufacturer and suppliers to share information and communication. Moreover, it also helps Cisco and its manufacturing partners to reduce the inventories.
Eventually, Cisco shows a great deal of knowledge on its intranet. According to Peter Solvik, CIO of Cisco and the senior vice president state that, the purpose of admitting many customers, suppliers and distributors of its Intranet is to create good relationship with them.
Other than that, Cisco also establishes Cisco Employee Connection through Internet which is used by the Intranet employees and managers. Employees use it to enroll in company
benefits and file expense reports. On the other hand, manager can review the employees, monitor the sales, and collect information of the competitors and other functions through Internet. This is the reason that maintains the low turnover rate of Cisco.
'Virtual close' is then develop by Cisco which rapid its growth. On the other hand, it also helps executives on analyzing performance at all level of the organization effectively. Cisco's Information System is also used to forecast sales; information of bookings, short falls in supplies and delayed product deliveries.
During the market decline in 1994 and 1997-98, when the sales of networking devices slowed, Cisco had continued to expand and increase its market share which lead to the continuing success until now.
However, Cisco experienced a decline of two-third in the technology-laden NASDAQ stock market at this time. Cisco projected telecommunications sales would be double in 2000-2001 but it resulted a sharp decline in Cisco's stock. In summer of 2000, Cisco received an outpouring of orders, which caused substantial delays in fulfilling orders. In order to enhance the delivery process, Cisco has launched a two-fold strategy to resume filling order quickly.
Meanwhile, there is a decrease of sales in Cisco where many sales to newer companies did not grow and most of these companies that had declared bankruptcy could not return their
debts to Cisco. According to Chambers, the order had increased as compare to previous years and the sales are expected to be increased.
At the end of January 2001, Cisco's sales to young telecom companies and 'dot.com' have fallen. There were a layoff around 5,000 to 6,000 of employees, and Cisco is only selling to about 180 young telecom companies and had a written off of $2.5 billion of swollen inventories. Therefore, a quick fall of dollar of network equipment has occurred in the market by 15 cents.
Further, Cisco was suffering from over ordering. This is because many customers ordering from many suppliers to avoid delays in shipments after ordering, and it has caused the backlog increase. Customers cancelled the others suppliers once a certain order by certain supplier had arrived and it has caused the backlog to decrease in sudden. This situation cannot take account by Cisco Information Systems, which Cisco's forecasting software has ignored the macroeconomic factors. Therefore, it causes a misleading and inaccurate information lead to bad decision.
Moreover, the overconfidence of the remarkable sales growth of Cisco that they had before has led to its failure, as Cisco did not consider the possibility of sales might decline.
Cisco is totally over depending on the forecast technology, leading people to undervalue or ignore human judgment and intuition. According to Volpi, "We haven't seen any sign of
slow down." besides, Volpi also states that he will not be too optimistic against the future of Cisco.
According to Chambers, the sudden and unexpected economic determination is suffering by Cisco, as the company is too dependable on its software. Chambers admitted that this system will do a great job of telling them where there are today but it will not estimate their future by using this system.
In the late August 2001, Cisco underwent a major reorganization, abandoning its "line of business" which had been place since 1997. However, Cisco has replaced the ...
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slow down." besides, Volpi also states that he will not be too optimistic against the future of Cisco.
According to Chambers, the sudden and unexpected economic determination is suffering by Cisco, as the company is too dependable on its software. Chambers admitted that this system will do a great job of telling them where there are today but it will not estimate their future by using this system.
In the late August 2001, Cisco underwent a major reorganization, abandoning its "line of business" which had been place since 1997. However, Cisco has replaced the old lines of business with a centralized engineering and marketing organization which allowed Cisco to focus on a products and technologies more closely. Although the used of reorganization was its poorest performer, but it will rapid its sales growth.
*Sources From:
'Case Study- Cisco Systems: Poster Child for the Digital Firm?' page 33-35
Lauden, KC, Lauden, JP, "Essentials of Management Information Systems', Prentice Hall
*(Refer to Appendix 1 for 'Case Study- Cisco Systems: Poster Child for the Digital Firm?')
3.0 Analysis
3.1 Analysis of Company - SWOT.
Even though Cisco achieves it success using Information System, there still continuation of strength and weaknesses in the company. It is clearly shown that Information System plays a very important role in determining the successful and failure of the operation and performance of Cisco Company. Thus, after carefully analyses the case, SWOT analysis is use to evaluate the impact of Information System in Cisco as well as the overall evaluation of the company's strengths, weaknesses, opportunities and threats from the business environment both external environment and internal environment analysis.
SWOT
Description
Strengths
> The use of IS has become the key of success of Cisco company.
> Cisco has promoted itself as a model for other organization by using Internet.
> IS has ease the business process between customer and Cisco company.
> Cisco Connection Online (CCO) has been developed to enable customers to configure, route, price and submit orders electronically.
> Orders that entered on CCO are directly sent to the suppliers.
> Orders shipped directly to customers once the product has been manufactured and thus reduce order-to-delivery cycle.
> Enable the manufacturing of Cisco and its suppliers based on actual orders.
> Decreased the inventory cost for both Cisco and suppliers.
> Satisfied customers with the speed.
> Cisco's website has helped Cisco to save $600 million.
> Establishment of the portals has increased the customer satisfaction.
> MCO has been established for its suppliers and manufacturers to share information and connection.
> Inventories of Cisco and its manufacturing partners have reduced by the used of MCO.
> Cisco intranet enables Cisco to share a great deal of its own knowledge.
> Cisco Employee Connection has used as an employee intranet in order for employee to enroll in company benefit and file expense.
> Having employee technical training online saves company employee time and travel money.
> Functions of managers which include the review of employees, sales monitoring, and competition information collecting are all carried online.
> Managers can determine the quota meeting by company's sale database by using IS.
> Email alert will be sent to engineering manager when a problem is occurred in order to contact the particular customer and provide solution.
> Customers' problems can be solved through Cisco website.
> Majority of the job application to Cisco is done through Internet.
> 'Virtual Close' is developed to reduce its time consuming.
> Executive can analyze performance of all level of organization where forecasts-sales are done by Cisco's system.
> Centralized engineering and marketing organization is replaced which focusing on access, core routing; Internet switching and services; network management service; optical voice and wireless technology.
> Cisco able to be more closely by the reorganization
> Can wisely choose products and technologies that gain the most profitable to be focused on.
> Cisco discovery that rapid sales growth can be achieved by a use of wireless networking technology.
Weaknesses
> The employee turnover rate of Cisco Company is high while restructuring its business.
> Cisco was only focused on what their customers were ordering but no one looked at the macroeconomic factors overshadowing the entire communications industry.
> Cisco's estimation software focused on growth data and ignored macroeconomic data.
> Software was not designed to deal well with declining demand.
> Misleading though accurate, information had resulted in bad decisions.
> Company suffered from overconfidence after years of remarkable sales growth.
> Had relied on past rosy sales and never think of the possibility that sales might actually decline.
> Cisco over relied on estimating technology, leading people to undervalue or ignore human judgment and intuition.
Opportunities
> Cisco has better opportunity since it stay tough for 12 to 18 months of it stock market.
> It can be shown when the market declining, competitors slowed the activity but Cisco remained aggressively.
Threats
> A market decline where the sales of networking devised slowed.
> Decline in Cisco stock.
> Bankruptcies had caused a step discounts.
> Unexpected economic deterioration had caused the suffering of Cisco.
Table 1: SWOT Analysis
*Sources From:
'Case Study- Cisco Systems: Poster Child for the Digital Firm?' page 33-35
Lauden, KC, Lauden, JP, 2003, "Essentials of Management Information Systems', Prentice Hall
3.2 Toward the Digital Firm: The New Role of Information System in Organizations
Managers decisions, plans, and managing on their employees, and increasing, they shape what products are produced are affected directly by today's system.
Figure 1: The Independences between Organization and Information System
Illustration above had shown the new relationship between organization and information systems. There is a growing sovereignty between business strategy, rules, and procedures on the one hand, information systems software, hardware, databases, and telecommunications on the other. A change in any of these components often requires
changes in other component. The relationship becomes critical when management plans for the future. The business will depend on the systems capability in prospect of the businesses. Quality of information systems in the organization will expand on the market share, high-quality pr low cost producer, developing new products, and increasing employees' productivity. (Laudon and Laudon, 2003, pg15)
3.3 Learning to Use Information Systems: New Opportunities with Technology
There are some source of problem, issue and challenge for managers although information systems have created several of exciting opportunities for both business and individuals.
The Emerging Digital Firm
Electronic Business Electronic Commerce
Firms
Figure 2: Electronic Commerce and Electronic Business in the Emerging Digital Firms.
Illustrates above had shown that a digital firm creating intensive use of internet and digital technology for electronic commerce and electronic business. Information can flow easily among the company ad external unit such as, supplies, customers, and business partners. The organization will move towards to the digital firm vision as organization using internet, intranet, and extranets to manage their internal processes and their relationships with customers, suppliers, and other external entities . (Laudon and Laudon, 2003, pg23)
3.4 How Information System lead to the Successful of Cisco
In early 2000, the valuations of Cisco reach $555 billion and stock price increases $80 per share. The use of Information System has lead to the successful of Cisco as the invention increase the sales forecast. Introducing Information System has reorganizing every problem factor to be solved and this has increased the work speed and efficiency. Information Systems that created by the technology market has helped the products and services to be more liquidity. Beside that, manufacturers and retailers are started to use information systems to create products and services that are custom- tailored to fit the specifications of individual customers from achievement of Cisco.
3.4.1 Strategy
According to the case, the use of Information System and Internet has become the key of success of Cisco Company. The two main strategies basically determined the growth of Cisco consist of the outsource of the company's production and acquisition of an investment in other companies. Thus, Cisco has actively promoted itself as a model for
reorganizations by using Internet to run its business. According to Fortune Magazine, it claimed "Cisco used more effectively than any other big company in the world."
3.4.2 Cisco's website-Cisco Connection Online (CCO)
Information System has eased the business process between customer and Cisco Company by developed Cisco's Website-Cisco Connection Online (CCO) for customer to configure route, price and submit orders electronically to Cisco. Besides, majority of the orders entered on CCO are sent directly to the suppliers and it is shipped directly to the customers once the product has been manufactured and produced. It has reduced the order-to-delivery cycle. Thus, it enables the manufacturing of Cisco and its suppliers based on actual orders instead of estimation, reducing inventory cost for both Cisco and its supplier which satisfied customers with the speed. Further Cisco's website has helped the company to safe $600million in 2000 by handle 85% of customers support queries. The establishment of these portals in 1995 has lead to increasing in customers' satisfaction by one quarter.
Therefore, as the internet and the Web have developed an effective new marketing and sale channel to retail consumers or other businesses, "Companies can use the Internet for advertising, customer support, and even some form of product testing with customers ordering products and services over the Web from their desktop computers." (Laudon, Laudon, 2003, p29) Meanwhile, "Digital firms use inter-organizational system to link with suppliers, customers and sometimes even competitors to create and distribute new products and services without being limited by traditional organization boundaries or physical location".(Laudon, Laudon,2002,p20)
3.4.3 Cisco's Manufacturing Connection Online (MCO)
Moreover, Information System presented many others strength in Cisco. Cisco Manufacturing Connection Online (MCO) has been established by Cisco as a business-to- business supply chain extranet for its supplier and manufacturers to purchase supplies make reports and submit forecasts and inventory information. Inventories of Cisco and its manufacturing partners have reduced by 45% by the used of Manufacturing Connection Online.
To further explain, "Internet and network technology have enhanced the precision and flexibility of the manufacturing and production function. Large manufacturers can software and networks for mass customization. Companies can also use these technologies to work collaboratively with other companies and coordinate their production processes more tightly with those of suppliers and distributors."(Laudon, Laudon, 2003, p29) In addition, 'Transactions such as payment and purchase order can be exchanged electronically among different companies, thereby reducing the cost of obtaining products and services from outside the firm.'(Laudon, Laudon, 2002, p20). Furthermore, "manufacturing and production systems to solve problems related to the planning, development and delivery of products and services and control he flow of production."
3.4.4 Knowledge Sharing
In additions, Cisco intranet enables Cisco to share a great deal of its own knowledge (on collaborate) with its company goals - "Create a relationship where customers can access to
every aspect of their relationship with our company over company over the intranet or Internet."
Besides, 'Organization can share business data, catalogs or mail message through network. These networked information system can create new efficiencies and new relationship between an organizations, its customers and suppliers which redefine their organization boundaries.' (Laudon, Laudon, 2002, p20)
3.4.5 Human Resources
On the other hand, the low employee turnover rate in Cisco has shown as one of the strength of information system on organization. Cisco Employee Connection has used as an employee intranet in order for employees to enroll in company's human resource benefit and file expense report which they often reimbursed within 48 hours. Company employee time and travel money are saved while increasing training for employee by having employee technical training online. Function or the responsibilities of managers which include the review of employees, sales monitoring and competitors' information collecting are all carry on online.
In conjunction with this, according to Laudon, Laudon (2003), "With Information System, manager can communicate with many employee simultaneously, and manage distant task forces and worker teams much easier." He continues state that "human Resource systems help businesses develop staffing requirement; identify potential new employees; maintain employee record; and track employees training, skills, and job performances."
3.4.6 Company Operation (Problem Solving)
Furthermore, because of information system; managers can determine the quota meeting of salespeople and regions by company's sale database which updates 3 times daily. When there is problem that not solve within an hour, e-mail alerts will be sent to engineering manager in order for the manager to contact the particular customer and provide solution. Besides, while customers contact Cisco, customer problems will be solved through Cisco website. Further, majority of the job application to review to Cisco is done through Internet. According to Loudon, Laudon, 2003, state that, "efficiency customer response system can improve sales by tightly coordinating production and distributions with customer orders." Besides, "information system helps businesses promote products, contact customers, track sales, and provide on going service and support, and they can also be used to analyze performances of the firms' sales staff."
3.4.7 Company Financial
Meanwhile, "virtual close" is developed to reduce its time consuming in its book closing as well as helping Cisco to manage its rapid growth. Booking, revenue and product margins can be updating within minutes. Performances all level of organization can be analyzed by executive regularly while forecast-sales are done by Cisco system. According to Carter, "Daily information about our product backlog, product margin and lead times," which triggers decision throughout Cisco's chain of supplier. Information on booking, shortfall in supplier and post phone product deliveries are included this forecast.
According to Laudon and Laudon (2003), "Corporate financial systems, some of the first to computerize, are based today on high-speed computers and networks. Financial and accounting information can be obtained instantly from internal computer systems and can flow smoothly across entire organization. Financial information from sources outside the firm can also be obtained instantly on the Internet." he continue states that " the accounting function can monitor transaction flows and keep track of cost and revenues more precisely in real time. Tracking and identifying changes in assets and fund flows that use to take weeks can now be accomplished in hours or days."
3.4.8 Reorganization
Lastly, centralized engineering and marketing organization is replaced which focus on access, core routing; Internet switching and services; optical voice and wireless technologies. Cisco able to be more closely track by reorganization and can wisely choose product and technologies which gain the most and least profitable to be focused on. Through this reorganization, Cisco discovered that rapid sales growth could be achieved by the use of wireless networking technologies.
In references with Laudon, Laudon (2002) stated that, "The explosive growth in computing power and networking, including the Internet, is turning organization into networked enterprises, allowing information to be instantly distributed within and beyond the organization. This capability can be used to redesign and reshape organization, transforming their structure, slope of operation, reporting and control mechanisms, work
practices, workflows, products and services. The Ultimate and product of those new ways of conducting business electronically is the digital firm."
*(Refer to Appendix 2 "Make IT your Business" for Further Information about How Information System lead to the Successful of Company.
3.5 The Limitation of Information System to Fulfill Manager's Requirement
After discussing about how Information System determine the successful of an organization-Cisco, there is still some limitation of Information System that fail to deliver in practice what business manager want from the system.
3.5.1 Over-ordering
Regarding the case, Cisco's information system fail to report certain circumstances and this has misled the company when problem occurred. The company was suffering from over-ordering due to over concentrate on their customers' order show by the data which notify by Information System instead of considering about the macro economies factors overshadowing the whole communication industry. Thus, it has caused the order unable to sustain because many customers will start to order from other suppliers besides Cisco when they face postponements in shipment after ordering. It has led to greater backlog. However, a sudden and rapid backlog decrease occurred while these companies cancelled the other order when an order did arrive.
3.5.2 Ignore Macroeconomics Data
In addition, Cisco unable to know the magnitude even they knew there is multiple orders. It is because Cisco's forecasting software are too focused on growth data and ignore those macro economies data such as debt levels, economies spending, interest rates, the bank market, and the stock market. Therefore, it is often misleading and caused the information resulted in bad decision as the software was not designed to handle well with decreasing demand.
3.5.3 Undervalue of Human Judgments
Overall, Cisco may over-rely on forecasting technology which provided by Information System which led to undervalue of human judgement and intuition. It can be show when Cisco cannot notice any sign of slowdown when economies trouble attack during November 2000. Finally, Information System of Cisco has the ability to tell the company about the current status but it still unable to predict or assume the future progress.
Information System can create problem and limitations that cannot fulfills the managers' requirements even Information System has provide benefits and efficiency to Cisco. Therefore, according to Loudon, Loudon (2003), "Major management change is making informed decisions that are sensitive to the negative consequesnces of Information Systems as well to the positive ones." Besides that, "a firm invites disaster if it uses system that don't work as intended, that don't deliver information in a form that people can interpret correctly and use, or that have control rooms where controls don't work or where instruments give false signals."
3.5.4 The Challenge of Information Systems: Key Management Issues
Even though Information System is improving at a blinding pace, there is not easy to develop and to use information systems. Business managers always face five key challenges which are discussing below:
The Challenge of Information Systems: Key Management Issues.
Key Challenges
Explanation
.) The Strategic Business Challenge.
(How can businesses use information technology to become competitive, effective, and digitally enabled?)
* To fully benefit from information technology, realize genuine productivity, and take advantage of digital firm capabilities, organizations need to be redesigned.
* Organizations will have to make fundamental changes in organizational behavior, develop new business models, and eliminate the inefficiencies of outmoded organizational structure.
2.) The globalization Challenge.
(How can firms understand the business and system requirements of a global economic environment?)
* Given language, cultural, and political differences among countries, this focus frequently result in chaos and the failure of central management control.
* To develop integrated, multinational, information system, a global hardware, software, and communications standard must be developed; cross-cultural accounting and reporting structures should be created; and design transnational business process.
3.) The Information Architecture and Infrastructure Challenge.
(How can organizations develop an information architecture and information technology infrastructure that can support their goals when business conditions and technologies are changing so rapidly?)
* Meeting the business and technology challenges of today's digital economy requires redesigning the organization and building new information architecture and information technology (IT) infrastructure.
* Information architecture is a design for the business application systems that serves each functional specialty and level of the organization and the specific ways that they are used by each organization.
(Refer to Appendix 3 for the "Chart of Major Elements of Information Architecture")
4.) The Information System Investment Challenge.
(How can organizations determine the business value of information system?)
* A major problem raised by the development of powerful inexpensive computers involves not technology but management and organizations.
5.) The Responsibility and Control Challenge.
(How can organizations ensure that their information systems are used in an ethically and socially responsible manner?)
* Managers will also face with ongoing problems of security and control.
* Information systems are so essential business, government, and daily life that organizations must take special steps to ensure that they are accurate, reliable, and secure.
* Information systems must be designed so that they function as intended and so that humans can control the process.
Table 2: The Challenge of Information Systems: Key Management Issues
Sources from:
Lauden, KC, Lauden, JP, 2003, "Essentials of Management Information Systems', Prentice Hall
3.5 Positive and Negative Impacts of Information System
Besides the strengths and limitations of Information Systems that exist in Cisco System which able to lead to its success and failure, there are still a number of positive and negative impacts of Information System in organizations as well as in individual aspects. The table below illustrates the positive and negative impact of Information System today.
Benefit of Information Systems
Negative Impacts.
. Information can perform calculations or process paperwork much faster than people.
2. Information can help companies learn more about the purchase patterns and preferences of their customers.
3. Information Systems provide new efficiencies through services such as automated teller machines (ATMs), telephone systems, or computer-controlled airplanes and air terminals.
4. Information systems have made possible new medical advances in surgery, radiology, and patient morning.
5. The Internet distributes information instantly to millions of people cross the world.
6. Broad understanding of business activities
7. Flexibility and adaptability
8. Prompt response to the information needs of the business unit
9. Clear, jargon-free explanation of what technology can and cannot do for the unit
0. Candid explanations of what information systems can and cannot do
1. Honest budgeting
2. Single point of contact
. By automating activities that were previously performed by people information systems may eliminate jobs.
2. Information systems may allow organizations to collect personal details about people that violate their privacy.
3. Information systems are used in so many aspects of everyday life that system outages can cause shutdown of businesses or transportation services, paralyzing communication.
4. Heavy users of information systems may suffer repetitive stress injury, techno stress, and other health problems.
5. The Internet can be used to distribute illegal copies of software, books, article, and other intellectual property.
Table 3: Positive and Negative Impacts of Information System
Sources from:
) Laudon, KC, Laudon, JP, 2003, "Essentials of Management Information Systems', Prentice Hall
2) <http://www.course.com/downloads/additional/21322-1ppt_chap10.ppt 18April2005>
4.0 Conclusions
Information System plays a very important role in determining the successful and failure of the operation and performance of Cisco Company. Cisco utilizes Information System to develop Cisco Connection Online (CCO), Manufacturing Connection Online (MCO), and Connection Employee Online (CEO), to work together with two strategies to operate and manage the business efficiently, which made the company become valuable and successful in the world.
Moreover, Information System also helps the Cisco Company in the aspect of finance and accounting, human resource, manufacturing and production, sales and marketing, customer and suppliers, company operation and problem solving and reorganization. However, Cisco's information system fail to report certain circumstances and this has misled the company when problem such as over-ordering occurred. Basically Information System in Cisco also tends to ignore external factors and undervalue human judgments.
As a conclusion, even though Information System in Cisco posses some limitation, but it also offers numerous advantages towards Cisco in helping and facilitate Cisco to operate their business well.
5.0 Recommendations.
Since the uses of Information System had bring some disadvantages to Cisco. Therefore, Cisco should not overrely on the forecasting technology, and Cisco should involve human judgement and intuition on certain task.
Meanwhile, Cisco Company should consider about macroeconomic factor which are the Political, Economical, Social and Technological factors. As well as the shadowing in the communication industry to sustain the sales order from the customer. Besides, Cisco also needs to improve the shipment process by having adjustment of the shipment timetable as well as effective communication with the transportation company to shorten the delivery time of customers' order.
On the other hand, in order to provide more accurate information in the decision making process, Cisco should keep on advancing the information system that was used in Cisco. Moreover, Cisco should also try to keep the number of temporary worker low for the purpose of increasing benefit and providing better working condition for the employees. Information System must be designed so that they function as an intended and so that human can control the process.
6.0 Reference:
Books
) Lauden, KC, Lauden, JP, 2003 "Essentials of Management Information Systems', Prentice Hall
Websites
) <http://www.course.com/downloads/additional/21322-1ppt_chap10.ppt 18April 2005>
7.0 Bibliography
Books
) O,Brien,J.A, 1998, 'Introduction to Information System', 2nd edition, Irwin McGraw-Hill.
2) Ritchie,B, et.al., 1998, 'Information Systems in Business', Thomson.
3) Senn,J.A, 1990, 'Information System in Management' 4th edition, Wadsworth inc.
4) Kroenke,D and Hatch,R, 1999, 'management information systems, 3rd edition, McGraw-Hill.
5) Laudon,K.C and Laudon,J.P, 2000, 'Management Information Syatem' 6th edition, Prenhall.
6) Alter,S, 1996 'Information System- A Management Perspective', 2nd edition, Benjamin Cumings.
7) Stair,R.M and Reynolds,G.W, 2001, 'Principles of Information Systems', 5th edition, Thomson Learning.
8) O,Brien,J.A, 1999, 'Introduction to Information System', 4th edition, Irwin McGraw-Hill.
Websites
) <http://www.course.com/downloads/additional/21322-1ppt_chap10.ppt 18April 2005>
2) <http://www.fao.org/docrep/W5830E/w5830e0k.htm 18April 2005>
Management Information Systems
Year 2: Semester 2 (2005)
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