Home Furniture Retailer’s Global Information System
A home furniture retailer can benefit from a global information system because such technology will help enhance the operations and align the information sharing processes with the strategy of the firm. The general benefits include improved management and coordination. In essence, the Internet use allows global branches of the retailer to exchange information more swiftly, resulting in better management of supply and demand. Moreover, analysis of operations, sales, and competition become easier with a global network since the retailer can use a unified database to store and use the information necessary for analysis.
Arguably, such a system does not immediately result in a profit increase. Instead, it allows the company to refine its operations and cut unnecessary spending by improving some activities. Another example is related to the supply chain management since the unified system can allow managers to use contacts of the global suppliers in case a need to change a partner arises. In addition, this can help the furniture retailer fulfil customer demand by using the capacity of its branches in the region. For example, if the subsidiary in one country or region experiences an increased demand for a particular piece of furniture, the global system can be used to use the capacity of branches in other countries and fulfil this demand.
Hence, this furniture company will not lose money and potential customers by applying this system. The added value that arises as a result of a unified system is enormous. Overall, any company operating internationally can enhance its operations and increase its competitive advantage by introducing the global information processing system. These systems improve the management of cooperation of the company’s branches and contribute to the bottom line through improved efficiency.