Reference no: EM133722748
Commentary assignment
Description:
In this assignment you are expanding on the previous two commentaries. You have an idea of what information you need to know and what level of management each option falls into. For the sake of the exercise, we will assume that the different options fall into the levels of management provided below.
The existing Scenario:
You are a manager making a decision as to which option to select for the use of information systems.
Here are the options:
Question: 1. Develop a new information systems product. For instance, online banking was once considered a new Information systems product.
2. Develop a new capacity into an existing information systems that enables managers to quickly reroute materials to different manufacturing facilities.
3. Replace the information systems that provide support of online ordering. This will speed up the time it takes process an order by ten fold and increase throughput.
Assumptions:
Which scenario(s) fits senior level manager decision making?
Develop a new information systems product. For instance, online banking was once considered a new Information systems product.
Which scenario(s) fits mid level manager decision making?
Develop a new capacity into an existing information systems that enables managers to quickly reroute materials to different manufacturing facilities.
Which scenario(s) fits operational level decision making?
Replace the information systems that provide support of online ordering. This will speed up the time it takes process an order by ten fold and increase throughput.
Assumptions:
Strategic decisions can be risky in that we are less sure of the outcomes. Typically, if things go well you get a big return on the investment.
Mid level decisions provide a modest return and are less risky (things will occur as planned).
Operational decisions are easier to quantify but do not have as big a return on the investment.
Information we need to be able to decide:
Option 1: Cost $1,000,000. Earn $3,000, 000 if Likelihood (30%) of market responding positively, if not earn $500,000.
Option 2: Cost $500,000. Savings $1,000, 000 if Likelihood (50%) of making a difference, if not $100,00
Option : Cost $2,000,000. Earn $1,500, 000 if Likelihood (80%) of improving operations, if not earn $900,000.