MIS and You Part 1

Part1-2 Purpose of Part 1 Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall Demonstrate why MIS is important to every business professional. Example case GearUp: 3-yr-old, privately owned company sells quality brand-name athletic gear and clothing at deep discount over Web Private buying club – customers must register before making a purchase

Part1-3 GearUp Processes Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall Sends s to customers announcing day’s sales event, which typically last 72 hrs Three events running simultaneously Members buy until sale ends or until maximum quantity obtainable is sold Customers incentivized to buy early

Part1-4 GearUp Processes (cont’d) Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall GearUp negotiates with suppliers for maximum item quantities, sales prices, and costs Might agree to purchase up to 5,000 soccer balls, priced at $22 each, purchase for $14, and negotiate shipping costs to GearUp warehouse Operations personnel contact vendor for photos and descriptions for Web posting

Part1-5 GearUp People Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall Kelly Summers – founder and CEO –Worked in sales for national sports retailer and corporate marketing before starting GearUp Lucas Massey – Director of IT services Emily Johnson – CFO Drew Mills – manager of event operations Addison Lee – lead buyer

Part1-6 Financial Situation Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall Sales revenue was $3 million, $11 million, $26 million first three years Sales restricted to United States Biggest problem: profit margins declining slightly Not seeing needed economies of scale Kelly says, “Get on top of it.” Information systems key to GearUp’s success Knowledge of information systems critical to success in business

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