Introduction
Currently, many businesses are incorporating various information systems (IS) into their processes, relying on computers to not just store but analyze and systematize data. In a startup, using a number of IS can help the managers and executives to see data related to external relations (other businesses and customers) and internal activities (accounting, marketing, and more). The startup under exploration is an event planning business for small and medium-sized companies and individuals. Thus, this small company needs to search for and communicate with customers, have several other companies in the supply chain, and store a significant amount of data.
Types and Functions of Information Systems
The described startup can benefit from several IS, and more can be added in the future. At present, the business uses several functional area IS for accounting, marketing, and human resources (HR). First, the functional area IS is useful for helping employees and managers to collect, store, and analyze data related to internal company activities. An accounting IS’s function is to choose the best funding sources, perform audits, and forecast future revenues (Ferdiana & Sulistyo, 2019). Marketing IS can help determine how the startup should advertise itself and which goods will gain the most popularity among clients. Third, the IS for HR manages recruitment and employees’ performance and productivity (Rainer & Prince, 2019). Thus, these systems simplify the process of monitoring the main events that would otherwise be recorded and analyzed on paper.r
Apart from that, the startup utilizes a transaction processing system. The former is necessary for transactions that happen between the business and clients or suppliers. As the event planning business requires the company to purchase products from other companies, all purchases are recorded as transactions. Similarly, when clients purchase any services, the transaction processing system recognizes this as a change in the company’s accounts (Rainer & Prince, 2019). In this way, this particular IS also supports the accounting system and provides an insightful look into the company’s financial operations.
Integration in the Business
The information from each of these systems allows the business to optimize and save time on analyzing data. For example, the integration of a marketing IS decreases the difficulty of choosing the best marketing channels for the startup – the managers can rely on the collected information and see which media are the most popular among the chosen client group (Rainer & Prince, 2019). In accounting, the IS helps the appointed manager to create detailed forecasts with minimal effort. Moreover, an HR system documents the deals that employees close, their responses to customers, problem-solving measures, and other details of the performance. At the same time, the transaction processing system records all purchases and sales, which helps to create reports and determine the relationship with suppliers and clients in real-time.
Competitive Advantage
The main competitive advantage of IS is the ability to optimize every part of the business. As various IS perform data collection and help people to perform analyses, they shorten the time workers need to complete these tasks. As a result, they can concentrate on establishing a strong connection with clients – a necessity in an event-planning business. Thus, IS helps the startup to focus on what cannot be optimized while improving the internal processes of the business.
Furthermore, IS offers a reliable system for storing data that is easier to use than paper-based or other time-consuming means. A transaction system is particularly advantageous in this case, as it works in real-time and continuously updates the state of the business. This information can be used in risk and opportunity analysis by experts in order to detect any problems or note any possibilities for improvement timely. Thus, the startup equipped with the knowledge-based on IS has a chance to grow further by using existing data.
In the particular startup of tailored events’ organizing, IS offers another benefit – a quick response to the customers’ changing preferences. As trends evolve, clients may prefer one type of event over another or use one platform with advertising more often than others. Here, a marketing IS can detect such fluctuations effectively, alerting the company’s analysts that the startup may offer a new product or change its direction in marketing (Du et al., 2021). Although the input from people working in the company remains invaluable, such automatization lowers response time and increases the company’s flexibility.
Conclusion
In this essay, the information systems for an event organization startup are analyzed. The business utilizes several IS, including functional area systems for accounting, marketing, and human resources. These IS help employees to optimize their work and allow the company to review its financial prospects, make informed marketing decisions, and monitor workers’ performance. Moreover, a transaction processing system is also integrated into the startup. Its primary function is to record all transactions between the business and its clients and suppliers. Overall, these information systems grant the startup a significant competitive advantage. They simplify the process of collecting and investigating information and provide employees with more time for focusing on client interactions.
References
Du, R. Y., Netzer, O., Schweidel, D. A., & Mitra, D. (2021). Capturing marketing information to fuel growth.Journal of Marketing, 85(1), 163-183. Web.
Ferdiana, R., & Sulistyo, S. (2019). The role of information technology usage on startup financial management and taxation.Procedia Computer Science, 161, 1308-1315. Web.
Rainer, R. K. & Prince, B. (2019). Introduction to information systems (8th ed.). Wiley.