Information Technology Reference
In-Depth Information
Information Systems in the Global Economy
Computer-Based Information Systems Support Best Business
Practices
High-quality, up-to-date, well-maintained computer-based information systems are at the
heart of today's most successful global corporations. For a business to succeed globally, it
must be able to provide the right information to the right people in the organization at the
right time, even if those people are located around the world. Increasingly, this means that
decision makers can view the state of every aspect of the business in real time. For exam-
ple, an executive in Paris can use an information system to see that a company product
was purchased from a retailer in San Francisco three minutes ago. If a company's infor-
mation system is not efficient and effective, the company will lose market share to a
competitor with a better information system. For a deeper understanding of how infor-
mation systems are used in business, consider Fossil.
You are probably familiar with the Fossil brand. Fossil is well known for its watches,
handbags, jewelry, and fashion accessories that are sold in numerous retail and depart-
ment stores around the world. Fossil was founded in 1984 when it set up wholesale
distribution of its products to department stores in North America, Asia, and Europe. The
company quickly grew and began manufacturing products for other brands such as
Burberry, Diesel, DKNY, and Emporio Armani. As Fossil grew, the information it managed
expanded until it threatened to be unmanageable, so Fossil invested in a corporate-wide
information system developed by SAP Corporation and designed for wholesale companies.
The SAP information system efficiently stored and organized all of Fossil's business infor-
mation, which assisted Fossil management with important business decisions they needed
to make.
An information system's ability to organize information so that it provides fuel for
smart business decisions is the real value of computer-based information systems. SAP,
IBM, Oracle, and other computer-based information systems developers do much more
than provide hardware systems and databases. The systems they install are governed by
software that implements best business practices. These systems assist managers in de-
signing the best business solutions, which is why selecting the right computer-based
information system is crucial to a company's success.
Using the SAP information system to manage its business, Fossil continued to prosper.
The company linked its information system to those of its customers, such as Wal-Mart
and Macy's, to automate the task of fulfilling orders. Fossil was one of the first companies
to launch an online store on the Web, and managed its evolution from a wholesale business
to a retail business. Another information system was developed for Web sales that worked
with the core SAP corporate-wide information system.
More recently, Fossil began experimenting by opening its own retail stores, which
have now blossomed into hundreds of Fossil stores across the United States and in 15 other
countries. However, because managing a retail store is different from managing a whole-
sale company, Fossil again turned to SAP and IBM to design additional information
systems that would service its retail needs. Because Fossil's retail and wholesale opera-
tions share production warehousing and shipping, the retail information system is de-
signed to be integrated with its wholesale information system.
Fossil's information systems are all integrated, connecting to one central database.
Using these information systems, the company can quickly react to market demands. For
example, if Fossil sees that a particular style of watch is selling well at its retail store in
