Systems Project / Information Systems Project[CD1]
Thomas Zemrowski
Business 270
November 3, 2004
4 Grey:
Evan Lengkeek
Cal Solack
Zac Preston
Jason Ritzema
Emilio Tapia
Table of Contents
Executive Summary........................................................................................................... 3
Systems Project...................................................................................................................4
Information Systems Project...............................................................................................8
Works Cited………………………………………………………………………….......12
(Executive Summary: Evan Lengkeek Systems Project: Evan Lengkeek, Cal Solack, and Zac Preston Information Systems Project: Jason Ritzema, Emilio Tapia, and Evan Lengkeek Works Cited: Evan Lengkeek)
Executive Summary
Radio Kaos is a music store in Stevens Point, Wisconsin that specializes in selling compact discs, movies, and music memorabilia. The Systems Project assignment helps outline the importance of transport, pricing, and sales through the Input-Processing-Outline model. The goal of Radio Kaos is to out-profit competitors within the same field such as Best Buy, FYE, and Circuit City. This is difficult because of the size and capabilities of Radio Kaos, which is a small business. Money is the key factor for Radio Kaos, because with constant profit in net income a business is able to survive for a long time. That is why earnings reign supreme in this department. This also alludes to how the financial view is a major component to the success of Radio Kaos. Obstacles come from the corporate conglomerates that compete against Radio Kaos because of the vast amount of money they have access to. Relationships and states are also touched upon during this project to show the complexity of Radio Kaos. These numbers are small due to Radio Kaos being a small business. The Information Systems Project is next and shows how Marketing is also an important part for Radio Kaos to survive. This is because marketing produces clients, which produces sales. Trends have changed dramatically for small business’s recently because of the time and effort to keep a small business in business. Exclusiveness, accessibility, and price are the key system attributes that Radio Kaos must have to produce desirable numbers[CD2] .
Systems Project
1.
Radio Kaos is involved in selling music, movies, magazines, and posters. It is located in Stevens Point, Wisconsin and gives a chance for customers to find unique music and memorabilia in that area. It is important for Radio Kaos to achieve its goal of providing the best music store in town by following the goal-driven manufacturing model that was previously shown[CD3] . The input level of Radio Kaos’ model includes the transportation of products that are received by the store. This includes the ordering of products through the internet and by mail. These products are then mailed, via airplane or truck, to the store. The store then prices the objects received and places them within the store, which is the processing level. Customers then walk through the store and buy products, which completes the sale and puts the output level to a close.
2[CD4] . The goal of Radio Kaos is to out profit its competitors by providing quality service along with outstanding prices. Best Buy, FYE, Circuit City, and other media stores are the main competitors that Radio Kaos hopes to outsell because of the threshold that these stores have. The key to success lies with the profit that the store gains, which in turn leads to the ultimate success of the business. If Radio Kaos can provide substantial numbers within its early life, it will remain a successful music store as time passes.
3. A measurable result would be Radio Kaos’ earnings. Accounting terms such as net income, owner’s equity, and revenue would be numbers that cause a great deal of interest. Radio Kaos would also like to have assets higher than liabilities. Too many payable accounts without enough money would cause immediate doom to the store.
4. The product view from the Business Dimension would be very important because the key to Radio Kaos’ success is the product. Without the proper products, music stores fail to succeed. A proper product portfolio is necessary because of the expansion of the media industry. Movies, compact discs, and others have expanded immensely over the years, and for a company to have success they need a huge selection. The service view is also very important because it “provides optimum use of its [stores] product portfolio.” (Targowski 112). This means that a store will have a hard time surviving if it can not sell its products. Radio Kaos has to provide the best service because of its competitors. To make it as a small music shop, they must create a buzz within the town or city because that means more customers. This will create money, which allows the financial view to prosper[CD5] . The financial view incorporates the importance of money and “reflects a firm’s profitability and return on investment.”(Targowski 112). Radio Kaos needs the most money they can get to survive against the corporate conglomerates.
5. The
financial view reigns supreme to Radio Kaos because of money. There are four
major components of the financial view for Radio Kaos. Profitability is the first which means all
the sales divided by all the expenses.
This number needs to be high to have a small business succeed. Next is the ability to have Radio Kaos have
more assets than liabilities. This is
also important because Radio Kaos wants to have a low number of liabilities to
pay. Third is Radio Kaos’ effectiveness
in spending the profit they have earned to the fullest extent. If they can do this, then the store will be
able to proceed in its’ future life.
Last is retained earnings with[CD6]
is the money left over from year to year.
With high leftovers, Radio Kaos is able to keep up with expenses and
liabilities. 
6. Obstacles Radio Kaos may encounter mostly come from keeping up with corporate competitors. Such obstacles include prices, amount of product, enough hours of being open, and a proper number of employees. Product pricing is the most important obstacle to overcome because a store will flourish if they have the best prices. Having a proper amount of products is also very important. Since Radio Kaos is a smaller store they need to have the appropriate merchandise for their customer type. Enough hours of availability helps a store succeed because customers have different schedules. This causes employees to be needed to fill this time. With the hiring of these employees that means having more money spent on wages, but if there are not enough employees then the store will be unable to run properly.
7.
Relationships
(4-1)4
R= 6
2
States
S = 24
S= 16
Radio Kaos complexity is rather small because
of the size of the store. These
elements involved with Radio Kaos are low, but are vital to the survival of the
business. Money is the key to a proper
business, so complexity with corporate stores are much higher to succeed.
Information
Systems Project
1. The Marketing Information System is vitally important to Radio Kaos because “the essential responsibility of marketing is to create customers, just as production creates products.”(Targowski 165). The functions involved in MKIS include advertising, sales promotion, customer service, marketing research, pricing, and numerous types of analysis that are necessary for Radio Kaos to survive. These functions are especially important because Radio Kaos’ main function is to make money and survive in an industry where competition is heavy. The recent growth of corporate media stores poses a threat to a small business in the same field. Such functions involved in MKIS, as mentioned earlier, provide Radio Kaos ideas to enhance their selling capabilities if followed properly.
2. The trends of the Marketing Information Systems have undergone some changes in the last few years. In the past, it was far more common for larger companies to utilize marketing information systems than small businesses. However, Li states that “in today’s competitive market, the use of marketing information systems is becoming very important to the success of all companies, regardless of their size” (1). Another important trend has been the linking of the Marketing Information Systems to companywide information systems. This is necessary to fulfill all competitive advantages of MKIS. The future of Radio Kaos may very well depend on its ability to fully exploit the benefits of its MKIS in order to keep up with its larger competitors[CD7] .
3. An important part to MKIS is that “market research information systems perform serious number crunching in classic applications of computer-based analysis.”(Targowski 166). This enables the Information Systems Model to be completed. Cognition Units of the[CD8] model for Radio Kaos include knowledge of customer preferences, proper pricing, sales promotion, and advertising. Input mechanisms include finding information dealing with possible success methods of the business and finding strategic planning to fully enhance profit made. Procedures that will help will be looking at other company’s prices and trying to match them, along with offering sales on products that are above competition. Also is the use of advertisement via newspaper, internet, and television. In the storage unit will be records of sales due to marketing schemes. Money spent on the procedures will also be stored so Radio Kaos will be able to compare the amount of money spent versus the amount of money earned. Output will result in the purchasing power customers distributed to Radio Kaos, the measurement of transactions within the store, and the overall success of the store through the amount of profit made by marketing.
Cognition Units: knowledge of customer preferences, proper pricing, sales
promotion, and advertising
Attributes: Exclusiveness, Accessibility, and Price
4. System attributes important to Radio Kaos include exclusiveness, accessibility, and price. Exclusiveness reigns supreme because Radio Kaos hopes to bring something new to the consumer by being a music store that offers an abundance of music that can not be found at competitor stores. Accessibility is also crucial because consumers have varying schedules or are unable to make it to the store when it is open. Internet access[CD9] to the titles carried at Radio Kaos is important along with having flexible hours of availability. Price is the last attribute of importance because if Radio Kaos has the best prices, then they will get the most business.
Works Cited
Li, Eldon Y. (1997 Winter). Marketing Information Systems in Small Companies. Information Resources Management Journal, 10, 1.
Targowski, Andrew, & Rienzo, T. (2004). Enterprise Information Infrastructure (4th ed.). Kalamazoo, MI: Paradox.