Mr. R, a chemical engineer, started a business to manufacture perfumes in the year 2015 on a very small scale. The company was using coventional manual methods of records keeping under which information was stored manual

Mr. R, a chemical engineer, started a business to manufacture perfumes in the year 2015 on a very small scale. The company was using coventional manual methods of records keeping under which information was stored manually in different files. These files used to be stored in filing cabinets. Retrieving information from these files was a very tedious job. In the year 2020, the company introduced a new perfume for women which met with unexpected success. Mr. R was not able to cope up with the growing volume of business using manual legacy systems. The company employed more employees to ensure that the growing demand of the new perfume is met better and faster. But with the increase in number of monthly transactions to 25000, the manual processes which were being followed by the company, were holding it back. The managers were facing difficulties in decision-making due to non-availability of timely, relevant and reliable information due to the usage of manual and conventional filing system. The difficulties faced by managers in decision-making many-a-times resulted in loss of opportunities to the company. Moreover, the success of the new perfume encouraged Mr. R to enter into B2C e-commerce to enhance the reputation of his company. He feels that with e-commerce, more and more consumers would buy his products online from any corner of the world and his company would touch new heights. Management information systems can also help the decision maker to make valid decisions by providing accurate and up-to-date information and performing analytic functions. Mr. R approached a management consultant to suggest him on these issues urgently because he knew that the competition will emerge in the market sooner or later and his company will loose the competitive edge. After holding several discussions with Mr. R to understand the problems being faced by him, the consultant suggested that database is a crucial tool for successfully and efficiently handling massive amounts of data. The company should install computers to store data as computers can store large volume of data for future reference which can be accessed effectively and even from remote locations, for the following reasons: To implement different information systems in the company which would assist the managers in their decision-making process. To develop a website with which customers of the company can directly purchase from the company online instead of buying it from the open market. To employ Artificial Intelligence (AI) to provide the best possible customer services to its existing as well as potential customers by analyzing customer browsing behavior, purchase history and even the time spent looking at specific items. He also suggested that the AI system can assist in analyzing huge amounts of network data and in understanding the variations in network traffic that is different from normal or usual network traffic. The consultant cautioned Mr. R that the suggestions made by him would involve the following issues: Installation of computers in the company would definitely lead to fast and accurate processing of data, but computers lack in common sense and IQ. Computers work on the principle of Garbage-In-Garbage-Out (GIGO). The incorrect data fed into the system and incorrect program would produce incorrect results. Usage of these technologies will lead to new types of risks in the company's business as data handling through computers is prone to the loss of information and being tampered. For indulging into B2C e-commerce, the company will have to host its website. When people access the web, they often entrust vital personal information such as their name, address, phone number, credit card number, etc. to the website they accessed. This personal information may fall into wrong hands and may be used for illegitimate purposes. In case the company is unable to protect the personal information collected on its website, it would be responsible to pay damages to the person affected. The consultant also cautioned Mr. R that due to the use of Artificial Intelligence (AI) and Machine Learning (ML), the company would be facing an exponential increase in the amount of data produced through these technologies. The conventional database tools would not be having the processing power to analyze this increase in the amount of data produced through AI and ML. They would have to use other advanced techniques such as Data Mining to analyze the data. In view of the above, answer the following questions: As the consultant suggested to implement the new Information system to assist the managers in their decision-making process. Explain the main reasons why the information system may be useful for the company?