Decision Support Systems provide business owners with business intelligence necessary to remain competitive and operate profitably. An owner of music store needs access to many different types of data to predict customer’s needs and ensure the appropriate inventory will be in stock when needed. Too much inventory will drain financial resources and take up valuable shelf space and, in contrast, not having the inventory customers want will result in missed opportunities for sales. The Decision Support System for a music store would provide the most value to its owner if all features can be easily utilized, both internal and external data can be stored, and data can be easily analyzed.
Ease of Use
The Decision Support System must have a user interface that provides the music store owner with a means to easily input data and retrieve the business intelligence needed to make the best decisions. Technology of any kind that is not user friendly or ...view middle of the document...
The ideal system would use internal data such as customers’ purchasing history and preferred artists along with external data such as top hit lists or radio trending data. Additionally, allowing customers to pre-order CDs that have not yet been released not only allows you to meet the demands of those customers, but also provides useful data that can help determine how much inventory should be purchased. Additionally, external data related to pre-ordered CDs from other sources would be an indicator of future sales for the CD. Additionally, assessing current inventory levels to determine albums that should be discounted or marketed differently to generate sales and reduce shelf time.
Easy Analysis and Modeling
The Decision Support System for a music store must be able to take all of the internal and external data and present it to the store owner in the form of actionable business intelligence. The owner should be able to review the dashboard and understand what albums are being released and should be purchased. The system could provide any pre-orders already in the system, the pre-orders from external data, prior purchases from the same artist and the data could be used to predict how many CDs to purchase to meet the demand without accumulating excess inventory. Additionally it should recognize any slow-moving current inventory from an artist that is releasing a new album in order to relocate it so it can be remarketed. The Decision Support System should also allow the business owner to predict the appropriate inventory levels for every CD using trends from past sells.
Businesses that desire to be competitive and remain profitably use data as a basis for good business decisions. The Decision Support System used by the business must be easy, maintain internal and external data and analyze the data to produce business intelligence. The music store owner must understand many aspects about his inventory and his customers in order to meet their demands at the right time and maximize profitability. The desired system would provide all of the features and analysis discussed.