Transcript Unit 1

Part 1
MIS and You
Purpose of Part 1
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
Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall
Part1-2
GearUp Processes
• Sends emails 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
Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall
Part1-3
GearUp Processes (cont’d)
• 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
Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall
Part1-4
GearUp People
• 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
Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall
Part1-5
Financial Situation
•
•
•
•
•
•
•
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
Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall
Part1-6
Part1-7