The Future of Business Information System Essay
In order to manage its hardware and software in different location across the globe, it took help of the Fujitsu Philippines Incorporation to implement a system the system. The system is called Help Desk which enables in the monitoring of the inventory system and the management of the SMS and documents. Due to Help Desk the technical support service now take half the time it previously did. (McDonald’s Philippines improves customer service via technology, 2007). Due to high volume of sales of McDonalds around the globe, the manual or low level storing data system is not anymore a product of efficiency for the organization.
Therefore, it has moved a step forwards and “The PC POS system replaced proprietary computer registers that delivered information to in-store processors. These computers are a McDonald’s restaurant’s black box, recording information on operations such as an individual store’s total sales for the day, and the number of patties, buns, cups and other products used, and delivering it back to the McDonald’s mainframe systems in Oak Brook each night over a modem connection” (Food, Folks and Forecasting, 2006).
We as Managers also make use of this technology to place orders to the suppliers for replacement as well, hence
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Outsourcing is a trend that has recently become very popular among the multi-million and multi-billion organizations around the world. Outsourcing “often refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation” (Wikipedia, n. d. ). There are various functions of an organization that are not the main operations and therefore can be outsourced to other parties such as “Business segments typically outsourced include information technology, human resources, facilities and real estate management, and accounting.
Many companies also outsource customer support and call center functions, manufacturing and engineering” (Wikipedia, n. d. ). There are several reasons why one would outsource their operations to an outside party, which might include the purpose of exploiting cheap labor in case of third world countries or utilizing the efficiency of specialized expertise in a particular field of work. Outsourcing might also involve reducing the cost even it effects their quality to a slight extent.
IT outsourcing helps improve the efficiency of IT department as after outsourcing there is special attention given by an entire group people to only one operation, hence in return increasing its importance and therefore its efficiency. IT outsourcing might also be done due to cost reduction by utilizing brains that are willing to work for less as compared to the human resource that is present domestically. Along with a lot of benefits in outsourcing, there comes a bucket full of criticism as well.
The critics believe that outsourcing reduces the quality of the operation outsourced hence reducing the overall performance of the organization. Hence, it is believed that organizations reduce their cost by compromising on their quality and exploiting cheap labor by outsourcing. On the other hand “proponents of outsourcing believe that arguing that outsourcing leads to lower product quality is pointless because if it were true, consumer demand will force firms to shift back to producing the good or service in-firm rather than out-firm” (Wikipedia, n. d. ).