Implementation of an Improvement Strategy in an Organizational Structure of Mathews Corporation - Essay Example

TABLE OF CONTENTS TABLE OF CONTENTS 1 Context 2 Introduction to business: 2 What are the key functions? 3 What are some of the competitive forces at work? 3 What goals did the organization have? 4 What was their strategy and IT based vision 4 Diagnosis 5 Problem with existing system 5 Basic Improvements 6 How this adds quality to business (Enhancements Expected) 7 Budget Needed For This Project 9 Approach 9 Why this project and improvement approach? 9 SWOT analysis 10 Strengths 10 Weaknesses 12 Opportunities 12 Threats 13 IT Infrastructure, policies and procedures 14 Strategic advantage gained with the use of CRM tools and techniques 15 Conclusion 16 References 17 CRM -Customer Relationship Management 18 Introduction This report presents the implementation of an improvement strategy in an organizational structure. This improvement strategy will implement an IT based solution and enhanced technology for the overall business management and handling. I have chosen the Mathew’s Corporation regarding the implementation of an improvement strategy. In this report I will also present the Mathew’s Corporation business analysis and the need for the new IT based information system and online order processing and management system implementation. I will talk about the implementation of an ERP Information System and then its impacts (both positive and negative) on the overall Mathew Corporation’s business. Context Introduction to business: Now I will discuss the Matthews Inc. Systems and business, basically Matthew Corporation was founded in 1923 and is a leader in high-performance labels, signs, and associated industrial safety products. It manufactures ultra-thin recognition labels for handheld electronic devices. One more labels it producer shields electronic devices by dispersing their temperature or static. A number of labels work in temperatures colder than 50 below zero, others burn or turn out sounds in the dark, cover themselves, or still stick to oily or greasy products. So this is the little introduction regarding the company business and production. What are the key functions? The key function carry out by the company is to run the 30 business units and manufacture and distributes its labels from 35 locations in 15 countries on five continents around the world. There are lots of countries where this company supplies its products. The basic task of the company is to produce the high-performance labels and related industrial safety products. Matthew Corporation has following process in their business cycle New production system Scheduling system Availability system Purchase of raw materials system Manufacturing process system Product reporting system Delivery system What are some of the competitive forces at work? If I talk about the competitive forces that are attached to the overall company system then we get that in this new age and with the availability of new digital system, customers have the facility of purchasing and ordering online for their products. In this area a lot of new companies have launched their websites to support their business in a better way through internet facility. So there is lot of computation on e-business for the company, and this challenge can only be achieved through better online order management and ecommerce standards implementation. The basis of competition is the availability of better online and ecommerce support to the customer. Nowadays there is need of less time consumption in order processing and better online customer support and services. So the company that incorporates these qualities in their business would be able to obtain the maximum share of market. As technology advances companies using internet and their online website for the purpose to save costs on already-low profit margins and better online customer management. This also facilitates in capturing the global market for the business. So the ecommerce is the basic innovations that necessitate business to change their old business style. What goals did the organization have? Jennifer Martin, Matthews’s CEO since 1994 has taken lot of initiatives for the betterment of the company. She has settled few goals that will boost the on the whole company’s annual revenue. Martin aimed to have an annual revenue growth of 15 %, reaching $1 billion in sales by 2010. What was their strategy and IT based vision In this section I will present the main vision of the company and initiatives regarding the implementation of new IT based infrastructure. At this time Matthew Corporation is working in a semi automatic way and they want a completely automatic IT based infrastructure. They also want more revenue generation through this new IT based system. Diagnosis In this section I will present the main particular improvement that I have decided. These improvements will change the overall old bossiness style of the Matthew Corporation. I have analyzed the overall business structure of the Matthew Corporation and accessed lot of improvement that are really sensational at this stages, because in this new age of technology the competitors are using enhanced ways to attract their customers. This can be possible through new IT based technology implementation and better customer services. Problem with existing system Matthews Corporation has the strategy that 44 Matthews’s business units’ worldwide working on manual bases means no better slandered technological interaction among these units. There is really need for a system that can integrate them all in a way that they would have a better integration like this would have the ability to provide the corporation an easier and more rapid production procedure. Then there are no globally unified price lists and distributor discounts, and corporate-wide processes for purchasing raw materials. Next main problem is the absence of global access to customers. Means there is no new Web based customer interaction and management. They take the order in the manual methods. There is no prices discussion and dealing on the specific produced. This all function is functioning good but not efficiently. There is need of total automation of the whole order processing, information management, and strategic decision making system. Basic Improvements Here I have decided some improvements that are really sectional at this stage of Matthew Corporation business. I have decided to connect the Matthews Corporation in all 44 business units worldwide with each one other and its 1,400 business developments to be integrated in a sole system. Integration like this would provide the corporation an easier and more rapid production procedure. Here I have also want a system that can provide a globally unified price lists and distributor discounts, and corporate-wide processes for purchasing raw materials. The next main improvement is the implementation of new Matthews Corporation Web based order processing and customer management system. By this they would be able to take the order both in the manual and electronic (internet) methods. It is desired that half of all orders to approach through the website and Internet facility by 2009, thus minimizing operating cost by 2 % or $10 million per annum. How this adds quality to business (Enhancements Expected) Organizations and information systems control each other. Every business shares general characteristics that the information system is able to improve (Kenneth, 1998). On the other hand, every organization has exclusive characteristics that should be taken into explanation when slotting in technology. The business should decide how the technology is incorporated and not consent to the information system completely state the organizational structure (Kenneth, 1998). Now I will explain if information system provides greatest value to the firm and how it has the ability to make informed judgments on the application/use of IT, here I will also describe the critical awareness of the impact of Information system and IT strategy within organizations. It is detrained that transform is the simply constant in the relationship connection among the information systems and organizations. As technology develops and transforms, its introduction interested in businesses needs changes in the organization's communications and the services it would be able to offer to its workers, clients, and suppliers. Years before information systems consisted of an enormous big computer with a small number of terminals linked to it. We have to plan a specific time to utilize the computer if our corporation had one at all. All data were reserved on one machine, and in a number of respects the data were obtainable to whoever could right to use them. With the development of the new technology computers were connected through internet and it became easier to transfer data from one part of world to other with no trouble. Now it appears we have approached full circle in a number of ways: we have shared the storage and data handing out on a fundamental machine with personal computing accessible on desktops. The data are obtainable to anybody who can make use of them or has authorized right to use in the course of a network with links literally all over the globe. The transforms that have taken place in organizational computing have an effect on the business situation in a huge way. Over 40 % of the equipment investment in the previous decade has been on IS computing equipment. Businesses are discovering additional well-organized techniques to accomplish tasks by means of networking, moreover inside networks or by linking to outside networks. This new information technology has reasoned numerous transforms in the process businesses attached to their consumers and suppliers. We will investigative a lot of these transforms throughout this path. In the Matthews major Web based information and business management system that is named as “Web-to Workbench”, allows consumers to be capable to design and order their individual signs online and the company’s Website would involuntarily forward the latest order to the suitable manufacturing capability. 1 This way of innovative production management has caused to minimize the overall order processing costs by 88 %. So this is an effective way for handling the orders in scenario of customer order processing and as well as for the company to have an easy to handle the two-thirds of its on-line orders that come from new customers. The Matthews Ltd. has aimed to completely rely on the online the order processing and order processing. By implementation of this system the company would be able to have a better estimate and order processing information. They would have an automated order recording and revenue details. This provides an easy way for the day to day report generation and progress checking for the better milestone achievement management. I have decided to implement the SAP software for planning and operations and that is a product of IBM Global Services for consultant support in integrating the new software. SAP was previously installed in more than17, 000 organizations in 160 countries, while IBM had discussed with on SAP installations in 1,900 organizations. Here we will to do very little customization of SAP software so as to prevent the problems regarding the appropriate business match up. We will make use of SAP software in two key areas-product design and customer relationship management (CRM). It is concluded SAP functionality will be adequate in both of these areas. 2 Budget Needed For This Project After the detailed analysis of the organizational configuration and its anticipated enhancements, I have decided the budget of this project. Where I have accessed that there will be need of $ 5 million budget for this project- where $0.5 million for consulting, $2 million hardware, $ 1 million for SAP and other software licenses, and $1.5 million on project administration and training. 3 Approach Why this project and improvement approach? In this section I will present why the project and approach which I have preened is significant for the organization. For this purpose I have conducted a SWOT analysis for this project. By this analysis we have clear view of the basic effectiveness, enhancement, risks and needed impotents in the overall project implementation. SWOT analysis In this section I will present a SWOT analysis of the Matthews Ltd implementation of the new information system and IT technology enhancement project. Here I will try to streamline the main features and difficulties in the implementation of this system. Strengths Matthews’s strengths are its resources and ability that is able to be utilized as a foundation for increasing a competitive advantage. Illustrations of similar strengths comprise: High-quality reputation among customers Cost compensation from proprietary know-how Good contact to distribution networks Better order handling Efficient customer support. Now I will analyze did the Matthews Ltd. offer all these services and qualities. There are 30 business units in he Matthews Ltd. and produce and distribute its labels from 35 locations in 15 countries on five continents around the world. In such a big system there is need for system that can switch the whole business and administer the whole business in a better way. Online and centralized IS and IT support is best way out that will be utilized by the Matthews Ltd. So they are able to obtain the competitive edge on this point. The most significant strength of this system implementation is the increase in the net profit of company. It is anticipated that net sales augment from $260 million in 2009 to $450 million in 2010, while it is also projected that net income will cultivate from $18.5 million to $39.6 million in 2010 after the accomplishment of this enhancement plan. One unit, Seton Products, does 30 percent of Matthews’s business with sales in 2008 of $150 million. Seton will be able to sell custom; made-to-order signs mostly directly to customers by online information system support, while other divisions will also be able to sell through this system distributors. This augment to sales is due to the enhanced produced deliver and advertisement support. Next potency of this system accomplishment is the competent customer support and availability of the online service. So these features also add to the company’s strength. The minimization of the operating expense by 2 percent or $10 million per annum will also assist the company for the effective business management. The cost of processing an order will fell from $16 to $2. Worldwide-Varitronics projected a 66 percent raise in new-fangled business while accounts receivables were greatly reduced by requiring on-line credit card payments. Weaknesses The absence of certain strengths in the Matthews’s system can be sighted as its weakness. Here I will present few cases through which the Matthews’s system caused the poor reputation among customers or some difficulties regarding the system handling. As the implementation of SAP system and its customization is a very intricate task. There will be huge problems in SAP data, like that delivery time errors. Customer order problems as well surfaced. For instance, one client ordered 25 cards and received 25 boxes of cards. So this type of system action can produce the poor reputation among customers. Next I will also talk about the site’s backlogs grew by 25 percent while on-time deliveries fell from 95 percent to 80 percent. This point is also the main weakness regarding the system implementation point of view and also for the customer satisfaction. Next weakness of this system is its difficulty in its adoption. Like it takes 18 months to correct and become comfortable with whole system and new management circle. Opportunities The implementation of new ERP and Information system that have incorporated the new-fangled IT support and technology have brought lot of new opportunities like now the Matthews Ltd. is in this condition to compete for the global business and brand. Next it has provided them better and timely interaction with customers that is really necessity for customer satisfaction. Here we also see that Matthews Ltd. got the opportunities for establishing the competitive edge for their competitors. Another big opportunities got by the Matthews Ltd. is the availability of centralized system. First there were 19 different databases that were difficult to handle now it became easier for the management to handle and manage the overall system in a better way. Threats Now I will discuss about few threats that are associated to the Matthews Ltd. The biggest threat is the transform in the outside environmental that is as well can present threats to the firm. Like slowdown of the global economy have affected the Matthews Ltd. business. I have also listed few threats those are selected and refined through the Matthews Ltd. business case study. shifts in buyers aptitude away from the company's products Appearance of new substitute products New market regulations Augmented trade barrier Online information theft System viruses Changing global economy trends IT Infrastructure, policies and procedures Now I will discuss few corporations’ business needs that are essential for the continuity of the Mathew’s Corporation. First I will talk about the IT Infrastructure relating needs and requirements for the betterment of the services of the Mathew’s Corporation. First of all we need to establish sound firewall against the external information theft and spamming attacks. There is also danger of virus attack from the outer environment, so the establishment of this firewall for the overall enterprise system will facilitate in better information and business data management. Next will talk about the different policies those are needed by the system for the efficient business management. First of all we have to establish customer management and support policy that will help the customer in many ways and also increases the company’s market value. Need of security policy for the information and physical security is also important for the whole business. We have to develop such policy to establish rights for the system handling and use. In this way we would also able to implement the network and organization security. Need for the strategic decision making strategy is also important for the organization enhanced future. There is need for the competent strategic decision making policy that can have the ability to handle the on the whole system and organization structure. As talking about the procedures need to be in place to ensure business continuity of the Mathew’s Corporation, first we have to establish some better outsourcing procedure for the system error handling and website management. I have accessed lot of problems regarding website availability and SAP system functionality. We have to hire technical personnel for the effective corporation IS fault management. I will also emphasis on the IT system centralization, because this will facilitate in the overall system management in a better way regarding resource planning and strategic decision making. This system will proffer a way for the organizational executives to have a whole organization data at single place. This will facilitate in policy making and future planning. The resolution of technical issues is also very important for organization. So we have first discussed and priorities the main issues so that it becomes easy for the company to resolve them on priority bases. Strategic advantage gained with the use of CRM tools and techniques First I will discuss the CRM and its implementation to the corporation’s better management. CRM is denoted as Customer Relationship Management. It is a procedure or technique employed to study additional regarding consumer’s requirements, desires, needs and behaviors in order to normalize and build up stronger associations with them (Chan at al, 2003). CRM is engaged for the following two reasons 1. Customer Data Management 2. Customer Service Management   If I talk about the Matthews Ltd. implementation of the CRM tools, then I have found that Matthews decides SAP software for planning and operations and then chosen IBM Global Services for advisor support in integrating the most recent software. SAP was previously installed in 17,000 organizations in 160 nations, whereas IBM had stated on SAP installations in 1,900 organizations. I think if the company incorporates the CRM functionality it will be useful in their better customer and organizational management. Conclusion In this report I have analyzed the improvement strategy in an organizational structure. I have presented the suggestions for the implementation of the improvement strategy that will implement an IT based solution and enhanced technology for the overall business management and handling for the Matthews Ltd. I have discussed the different aspects of the implementation of the IS and IT technology at the Matthews Ltd. In this report I have discussed that how an organization can enhance its business and customer management through the incorporation of the new IT based technology. I have also determined that it is necessary to have an efficient IS and ERP system for having better competitive edge. In this report I have tried to present the facts that got in the Matthews Ltd. business report. I hope these will be effective for the reader to take an insight into the implementation new IS and IT technology based improvement strategy of the Matthews Ltd. References 1. Chan, Y.E., Huff, S.L., Barclay, D.W. & Copeland, D.G. 2003. ‘Business Strategic Orientation’, Information Systems Strategic Orientation, and Strategic Alignment, Information Systems Research, 8(2), pp. 125-150. 2. Henderson, J.C. & Venkatraman, N. 2000. ‘Strategic Alignment: Leveraging Information Technology for Transforming Organizations’, IBM Systems Journal, 32(1), pp. 4-16. 3. King, W.R. 2000. ‘Assessing the Efficacy of IS Strategic Planning, Information Systems Management’, Winter 2000, pp. 81-83. 4. Laudon J. Laudon K. 2007. ‘Management Information Systems: Managing the digital firm,. 5. Leslie p. Willocks, Peter Petherbridge, Nancy Olson. 2002. ‘Makin IT Count, Strategy,Delivery, Infrastructure’, Butterworth-Heinemann. 6. McNurlin B., Springue R. 2008. ‘Information Systems Management in Practices 7th Edition’, 7. Segars, A.H., Grover, V. & Teng, T.C. 1998. ‘Strategic Information Systems Planning: Planning System Dimensions, Internal Coalignment, and Implications for Planning Effectiveness’, Decision Sciences, 29(2), pp. 303-345 Key Words: CRM -Customer Relationship Management IS- Information system IT- Information Technology ERP- Enterprise Resource Planning Read More