Task 2 - Analyzing Value of an IS

E-commerce is a valuable information system that allows consumers, businesses and the public to carry out business transactions electronically. The system allows these people, businesses and organizations to put their products out in a global setting, at a low price for consumers, allowing a high profit for them. One of the most valuable aspects of e-commerce is the simplicity it offers to businesses and organizations in purchasing. When performed in a manual system, an employee must wait for approval for a purchase needed from the purchasing department, and the purchase cannot exceed a set amount. When purchasing a product through an e-commerce system, a step in the manual system is eliminated. Instead of going to the purchasing department, an employee can buy directly from a supplier, and the price on that website will not exceed the amount they have budgeted – the business they work for has already set the price. Management can be notified by e-mail quickly if approval is necessary. E-commerce eases much of the management information and decision processes as a business information system. 

An example of a website that I use which I will use as an example of e-commerce is Ruelala.com. In terms of the processes e-commerce consists of, it begins with a gathering of data that will be used as input. For e-commerce, data about products, markets, consumers, and prices are necessary for their website – this is where partner organizations and customers will go to order. For Ruelala, clothing, sales, fashion merchandise, and other goods will be researched. This data should be processed and then used for output. E-commerce looks at the gathered data and creates information from it, and when this process is complete, the next process is output. During output, the organization creates useful outlets for the information, like reports for suppliers and partners. Ruelala creates reports and analyses for the partners and suppliers it works with, for example Tommy Bahama and Marc Jacobs. Feedback is then necessary from the system that monitors the processing and input procedures. Feedback is essential for input, processing, and output procedures to take place properly in an e-commerce system. In addition, management is necessary to monitor each facet of the e-commerce business, including the processes of the system, as well as all departments that comprise the business, for instance, manufacturing, marketing, and finance. Ruelala is an example of an e-commerce business that is successful in all processes of its system, providing consumers with ease of access to fashion trends.