In: Business and Management

Submitted By sium00043
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3. How integrated information system maximize the value of operation at SEJ.
Answer: SEJ’s success that it achieved globally is because of their integrated information system. There is a possibility that an information system followed by any organization either can add value to its operation or can mislead that organization by providing false data. At its early stage of information flow SEJ established an online ordering system or the POS system. This system was one way communication which enables SEJ only to order the products by communicating with the headquarters host computer. But not aid SEJ by the feedback from customers, suppliers or HQ’s host computer, which is essential for future product development. Interactive two-way communication was achieved with the use of Integrated Service Digital Network (ISDN) in 1991. The two way communication enables franchisees to directly access the host computer and the central database containing the POS data and their analyses. The operation part of SEJ was not only to order products but to order in right quantity, maintain the delivery time, maintain the stock keeping units (SKU’s), contact with the manufacturers, suppliers to its new product development. Now describing how this integrated system maximizes the value of SEJ’s operation:

* As the integrated information system can record the customers buying preference along with which product is bought at what time, it makes easy for the store managers to determine the delivery volume and delivery time of products. This information can be reviewed hourly, daily and weekly and can pass the information by the operation field counselor (OFC) to the weekly meetings. This system also aids to inform the HQ’s about the next day delivery time and quantity. * As the information system keeps the life cycle of each product, it can analysis which product sits long, scrap…...

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