Organisational Information Systems - Case Study Example

Organizational IS College February, 7, 2008. Systems thinking concepts: The concepts include identifying the input, process, output, feedback and control mechanisms of the entire activity. This is diagrammatically represented as follows: Systems Thinking Application of Systems thinking in the case USS, the largest integrated steel producer faced a serious threat from its customers because of its irregularity in system and the processing. USS moved rapidly to solve these problems. They made a complete differentiation n the system by fulfilling customer’s orders and make them order repeadtly. USS enabled the customers to enter the order electronically, this was the major input given and the others were decision express software, these inputs were processed such a way that customers can now specify the product, quality, size etc and lost and delivery dates were processed. Using decision express software credit authorization were processed, more over tracking was done which raddled process managers in 12 min rather than 90 min. In addition to that information about price, quality and delivery date, captured information on each steel products composition size and thickness. The outcome of these was, the customers were benefited because of exact information by tracking and hence the repeated orders were given as feedback. Regarding the order fulfillment systems the input was the data management software from oracle to handle product specification and prices for customers. The order fulfillment system was replaced with IQ technologies which helped in tracking orders and an automatic generation system for repeat customers. It also helped to forecast the demand and maintain the inventory more efficiently. Thus the electronic orders and order fulfillment systems with the tracking systems, by using software’s helped to know about the price, quality, and delivery date with inventory management served as a best system for the customers. Process Control Systems The electronic order system and the order fulfillment system were the major Process Control systems involved, as the process control systems monitor and control the physical process. Another type of IS observed here was the manufacturing information system. The USS was using the information system in different departments to integrate. The purchasing department was using the electronic orders by the customers by using web, the specifications of the steel were got as input and for the production limitations and capabilities they in turn enquired in the production department. Even to calculate cost and delivery date. The IT department with its software capabilities was able to collect the uncollectible debts through finance department and IT. USS was able to track the products. Thus the process control systems with the integration of different levels of departments like order fulfillment, purchasing, manufacturing, finance, IT and logistics were able to meet out the scheduled delivery dates, tracking the orders properly and I maintaining optimum inventory and even the third-party service centers to customers were facilitated by managing the entire supply chain through integrated system. Environment Analysis The internal environment of USS comprises of various departments like purchasing, order fulfilling, HR, Financing, Logistics etc., with the information got from external customers like ford, other customers who supply the software. The internal environment functions of is to get the input, process it and give the output with feedback and control. The internal environment receives the input from the external environment and the output is given to the external environment. Eg: Here the order is got from the customers who require steel (ford) process it by tracking the order forecasting the demand and giving output by delivering according to the schedule. Integration of business systems Integrated Management Systems (IMSs) take into consideration all activities that have an effect on the business and are implemented at all levels within an organization regardless of its size or function. A management system, be it quality, health & safety, environmental or financial, should operate seamlessly across all components as part of the day-to-day business functioning. Integration brings together the processes of these systems for effective business management. Benefits of an Integrated Management System Greater focus on company objectives Reduced business risk Clearly defined roles and responsibilities for managing the integrated management system Reduced documentation Promotion of a single system Reduced resources to manage the system Easier to prioritize on key issues More concise reporting structure More efficient system – removes duplication Easier to manage. Helps with multi-skilling Key System Applications in the Organization Because there are different interests, specialties, and levels in an organization, there are different kinds of systems. No single system can provide all the information an organization needs. Figure 1 illustrates one way to depict the kinds of systems found in an organization. In the illustration, the organization is divided into strategic, management, knowledge, and operational levels and then is further divided into functional areas such as sales and marketing, manufacturing, finance, accounting, and human resources. Systems are built to serve these different organizational interests. Figure 1 Types of information systems. Organizations can be divided into strategic, management, knowledge, and operational levels and into five major functional areas: sales and marketing, manufacturing, finance, accounting, and human resources. Information systems serve each of these levels and functions. Different Kinds of Systems Four main types of information systems serve different organizational levels: operational-level systems, knowledge-level systems, management-level systems, and strategic-level systems. Operational-level systems support operational managers by keeping track of the elementary activities and transactions of the organization, such as sales, receipts, cash deposits, payroll, credit decisions, and the flow of materials in a factory. The principal purpose of systems at this level is to answer routine questions and to track the flow of transactions through the organization. How many parts are in inventory? What happened to Mr. Williams’s payment? To answer these kinds of questions, information generally must be easily available, current, and accurate. Examples of operational-level systems include a system to record bank deposits from automatic teller machines or one that tracks the number of hours worked each day by employees on a factory floor. Definitions:   Knowledge-level systems:                 Information systems that support knowledge and data workers in an organization.   Management-level systems:             Information systems that support the monitoring, controlling, decision-making, and administrative activities of middle managers.   Strategic-level systems:                    Information systems that support the long-range planning activities of senior management. Operational-level systems:               Information systems that monitor the elementary activities and transactions of the organization. Leveraging Competitive advantage using IS The company differentiated itself by taking the process as challenges using various software’s like decision express, the tracking system, advance shipping notices which handle the process in 12 minutes Order fulfillment and data management software from oracle. By replacing order fulfillment with IQ technologies. Mechanical item generation system. By continous up gradation of Monvalley Works using lazer sensor to make steel more than this they are leveraged by reducing the production time and low labour cost when compared to other firms. E-Commerce: E-commerce brings the universal access of the Internet to the core business processes of buying and selling goods and services. It helps generate demand for products and services and improves order management, payment, and other support functions. The over all gain is to cut expenses by reducing transaction costs and streamlining all kinds of processes. The Internet world wide reach helps businesses discover new markets while increasing the speed of access and the aped of transactions. In short, Electronic Commerce is the marketing, buying and selling of products and services on the Internet. Advantages of e-commerce to USS Here USS made use of the online transactions; by using web the customers would place orders electronically, online tracking system were made in practice such that the orders are tracked. More over the order fulfillment systems and the inventory management systems were also there in practice. Difference between traditional and Internet means of selling. Setting up a website is easy in e-commerce. but setting up a firm is not such a easy task. The cost of purchasing through on-line is cheaper than in person. All products can be sold in online through the display but not directly to all. Online firms face less pressure to grow and achieve economies of scale, but the traditional trade works on high pressure. Size is not that important for the online business but for traditional business it is prominent. The intermediaries are out in the case of online business but in traditional business the intermediaries play a important role. In case of traditional selling the products can be felt and touched but in case of online it could not be done. The customers are seen and an eye to eye contact is got in traditional business but in online it is not possible. The documentary and paper works are cut down in the online business but in other case it is mandatory. When in case of money transaction the security is less in online but in case of traditional it is more. B2B business; B2B e-commerce is a world wide bazaar where you can buy anything, from paper clips to live elephants to oil tankers. The goal is to serve money on purchases that are negotiated instantly. Suppliers use the purchaser’s web site to respond to bids and sell excess inventory. Replacing a purchasing bureaucracy with online links means savings, improved efficiency in ordering material, many fewer errors and just-in-time environment that minimizes inventory sitting in the warehouses. Drawbacks; B2B e-commerce sites were exploding in number in early 2000. Hundreds are launched to support major buyers in the automotive, chemicals retailing and others with the goal of setting suppliers more cheaply and quickly. To date no one has figured out a formula that will ensure success in B2B commerce. Most web exchanges charge during a small percentage of each transaction as fee for doing business. References James O’Brein, “Management Information Systems”, Tata Mcgraw Hill Edition, thirteenth edition, Pg. 174 – 245. Elias Awad, Electronic Commerce, S.Chand & Sons, Pg. 64 - 86. Read More