Bag Of Toys Case Study
Explain the benefits for upgrading their IT system in an organisation (Bag of Toys)
The Bag of Toys needs to upgrade their IT system in order to run the company successfully. Information technology benefits the Bag of Toys by allowing organisation to work more efficiently and to maximize productivity. IT can present real-time or archived data as needed and are flexible to new information requirements. …show more content…
If Bags of Toys continue to use the old equipment therefore it will costs more money and it will be harder and difficult to use it. However if they buy new equipment then they will not need to supervise the machine which will reduce the costs of paying employees. The Bag of Toys new equipment needs to be IT established. On the other hand, the new equipment also has a disadvantage, it is very expensive and costs more therefore, if it breaks down then the company could get into debt.
Another benefit of that Bag of Toys will get out of upgrading their IT systems is improved efficiency. This means that the Bag of Toys business will produce toys at much faster rate than before and therefore as result they will increase the number of sales. By upgrading their IT systems will also improve the communication between the different departments in the Bag of Toys business, such as; the sales and stock information and it can be easily and without difficulty accessed by the employees on the centralised system. This will benefit them business as this will make it easy for them to decide if they need to increase the production on a specific selection of the Toys. Also, the new equipment’s’ will let the Bag of Toys to produce toys much …show more content…
By upgrading their integrating system will benefit Bag of Toys as it will reduce duplication and therefore costs, reduce risks and increase profitability and also will improve communication between different departments and so the company will then run successfully but also it will costs more money.
Improving management information
The fourth and final benefit of that Bag of Toys will get out of upgrading their IT systems is improved management information. This means that Bag of Toys can keep the records of their customer trends and they will have a broader knowledge of who their business appeals to. If the Bag of Toys upgrades their IT systems will help them to reach a wider audience by marketing themselves on the popular Media's, this will give the Bag of Toys a chance to be well-known globally and also will increase customers and will run successfully. In addition this will also make them more profits.
Improves on business competitive