Sample Business Research Paper on Online Shopping

Online Shopping

Information systems and technology have revolutionized the way organizations handle their work and the way documents are generated. Indeed, technology is bound to vary the way individuals exchange documents and information. In fact, most companies currently use electronic programs and machines to process, present, transfer, and store information. Nevertheless, information systems encompass different technologies like networks, computers, software, telefax, and even telephones. The requirement of the information system is to enhance the exchange and management of information in an organization. Therefore, the information system has unlimited potential and capability for any process component of an organization (Kaiser, Schlick & Bodendorf, 2011). In fact, the most recent technologies tend to affect how companies operate daily. The current paper focuses on how a good information system helps manage a small company or a large empire with fewer workers. The paper will use the online marketing industry to illustrate how management information system has transformed the processes of many industries.

The online marketing industry first realized the need to have a management information system. Because online banking is in the service industry, it was imperative for such a company’s management to store information as well as make their services better. Therefore, information technology would give them a competitive edge compared to the other organizations that offered similar services. For instance, they needed knowledge on database management to enhance their basic services such as keeping of book records for the clients and luxurious services such as the facility of an interactive voice recording.

More so, an information system needs responsibility due to leakage of information, huge investments among other security measures. Thus, knowledge on how to manage information technology is crucial. Indeed, companies that sell their products online need management information systems at every stage because the benefits of the information system are insurmountable. For example, today online marketing companies use information systems to make decisions. Furthermore, information system is also used by companies to market and sell new loan schemes. Nevertheless, online companies need management information system at the level discussed below

Level 1 or basic level

At the basic level, a management information system is used purely for administrative purposes. The duties here could include management of bookkeeping and customer account handling, among others. Furthermore, the revolution of online marketing companies through the internet has made level 1 more useful and attractive to clients than any other time experienced before. More so, the idea of online selling by use of IVRs has to a large extent become a major step in the advancement of information systems and the banking industry.

Level two or the advanced level

At the advanced level, technology is very critical and is usually used at the level of managing the subordinate staff. At this level, the management use information system in listing stocks, annual general meeting, among other facets in databases that need tight security. The information stored in such databases is normally secure and is rarely distributed without consent from authorized personnel. Indeed, the information stored at the advanced level is rarely used or accessed by clients or any other external users. Nonetheless, in cases of fraudster and cheating, various online companies use the second level as a safety measure to avoid losing the reputation of the organization.

Evaluation of management Information Systems in the online marketing industry

Many companies that sell online initiated in the western countries and those in the Asian countries currently make use of information systems to enhance their businesses. The banks use information systems to attract customers. In order to achieve this, the companies make use of decision-making tools, internet-based systems, and account management systems (Miyazaki & Fernandez, 2001). The companies have realized that they very much depend on customers and cannot let their clients go due to minor facets such as technological advancement. In order to be able to analyze the management information system used by other companies, it is imperative to understand the kind of information system used by online marketing companies today.

The nature of the currently used information systems in online marketing companies

Online marketing companies use different types of information systems today. In fact, currently, the online marketing industry survives by the use of multiple legacy systems. The latter system uses a single mainframe computer in its operation. The multiple legacy systems have been used for some while and have not changed a lot. Moreover, the idea of object-oriented programming has led to the utilization of multiple servers. Multiple servers minimize the load experienced by one personal computer. In addition, the internet has been fully developed as a source of technology that is secure and acts as a useful and critical resource to companies. The initiation of web-based systems mostly known as internet-based systems has also given the companies an opportunity to be precise and keep record systems that are hassle-free (Miyazaki & Fernandez, 2001).

Therefore, the companies have been very much willing to invest in management information systems due to the benefits that come with them. Indeed, the companies want to invest in innovative technology that will enhance their trading frequency and reduce their scheduling time. The companies want every millisecond to mean profit to them. By inaugurating information systems, the online marketing industry is certain that it will be able to deliver the best customer services in the market. According to Gefen, Karahanna, and Straub (2003), today such companies spent almost 60% of their IT budget on management information system

In addition, information systems have come up with changes such as ring-fencing investment and selling operations. The companies aim at separating the investment arms from the retail arm. The ring-fencing investment units in the industry are aimed at protecting the retail arm from drawbacks that emanate when the companies engage in sectors that have risks (Al-Dalahmeh, 2008). Indeed, many companies have been compelled by the government to separate their investment arm and the retail arm. Management information system will therefore, play a big role in the latter.

Integrating information technology in the online marketing industry

Most financial sectors in the online marketing industry troubles mostly lead to a wave of rescues, acquisitions, and mergers. This implies that there is a need for more information technology integration. For instance, the most challenging integration in the marketing industry has been the Lloyds TSB of acquiring Halifax Bank. The bank has been seeking to make more savings through the integration of more information technology facets (Al-Dalahmeh, 2008).

Moreover, most companies are moving from traditions to off-the-shelf software. For example, cash-strapped banking institutions have varied their habits of buying software. Many companies are shifting from a mainframe or customized applications that has lots of people and integration to the off-the-shelf software (Miyazaki & Fernandez, 2001). They have realized that attaining supplied software leads have a critical move in financial services where the system is developed and bespoken in-house. They therefore, view the move towards the off-the-shelf as a pioneering change that will lead them to greater level. For instance, the nationwide bank is changing to full-service banks and has been developing SAP throughout their back offices and Microsoft in the office in the front

Another area where management information system plays a big role is in the emergency of new companies. The companies that have not been in the marketing industry for long have integrated information systems in their operation. For example, Tesco bank has devised the use of an off-the-shelf sales system and left its old fishery method. It has now become a full-service retailer. Virgin Money is also taking its approach to information systems as it is about to become a full-service retailer. This example illustrates that any changes made in the marketing companies need a significant management information system because everything else in the system relies on information technology. According to Al-Dalahmeh (2008), the companies should spend a larger portion of the IT budget on the internet and software sector.

In conclusion, a management information system is very imperative for the development, growth, and survival of any sector in any industry. In fact, all the sectors of all industries are dependent on information technology due to the management of significant data and information. Therefore, both small organizations and large organizations enjoy the benefits that come along with information technology. Moreover, larger organizations like central and street banks and the local government use the information system to manipulate and regulate their data.  Therefore, the paper has analyzed the need for information systems in the online marketing industry.


Al-Dalahmeh, M. A. (2008). The application of information systems in marketing: a study of empowerment in electronic commerce.

Gefen, D., Karahanna, E., & Straub, D. W. (2003). Trust and TAM in Online Shopping: An Integrated Model. Management Information Systems Quarterly.

Kaiser, C., Schlick, S., & Bodendorf, F. (2011). Warning system for online market research – Identifying critical situations in online opinion formation. Knowledge Based Systems.

Miyazaki, A. D., & Fernandez, A. (2001). Consumer perceptions of privacy and security risks for online shopping