Introduction to Business Information Systems - Term Paper Example

Name Course Lecturer Date Table of Contents Table of Contents 2 Knowledge Management and Business Intelligence (BI) 3 Senior Employees at CMP 5 Recommendations on improvements at CMP in terms knowledge management 5 Excel spreadsheet forecasts can assist CMP with BI as follows; 6 Porter’s Five Forces Model 6 An analysis of rivalry, entry barriers and the threats of substitute products for CMP using Porter’s Five Forces Model 8 Strategies on recommendations that can be employed to combat competition, showing the role of information systems in achieving these strategies 9 Website and Social Media Sales and Marketing 11 Some barriers CMP may encounter when try to use this medium for marketing and selling its products 11 Recommendation to be made on the way CMP operates so that investment on social media is a success; 12 Security and mobility 13 Potential internal and or external threat s to security that may compromised the safety of data within CMP 13 Ways to secure this data from the threat 13 Two (2) ways CMP can embrace m-business 13 Pros; 14 Cons; 14 Pros and cons of purchasing an off-the-shelf time and attendance application and outsourcing custom development 15 Pros; 15 Cons; 15 References 16 Knowledge Management and Business Intelligence (BI) Current trends of our modern world are characterized by change which is fast and rapid. Businesses, society and governments are as a result impacted greatly. Therefore, in such a challenging economy, business enterprises are required to change fundamentally so as to cope and fit in (Brown & Davison 2008). Transformation entails revolution in the methods in which a business manages and perceives its essential assets, and how workers put in their contribution, all which are generated from the main assets of knowledge and intellectual capital. (UDEN, 2013) Knowledge management idea is the most recent tool in responding to economic challenges in our world today. In this view, knowledge management involves obsolescing what one knows prior to others, and earning returns by initiating opportunities and challenges other competitors have not put into consideration. In addition, knowledge management chases after the ever-evolving environment whereby individuals, organizations and societies live, survive, work, learn and adapt. (Amphora, 2012) One important knowledge management tool for positive change involves ‘business process re-engineering’ (BPR). Its implementation points towards eliminating processes which are old or obsolete, cultures, structures and practices which are currently inappropriate for modern highly changing challenges in the business world. Most successful business organizations have Business Intelligence (BI) as they implement enterprise systems such as Supply Chain Management (SCM), Customer Relationship Management (CRM), and Enterprise Resource Planning (ERP) and in their decision making processes. (DOOM & DOOM 2009) The key elements of an organization are knowledge and information. BI is an important tool of management that is used by organizations in refining and management of business data in order to make efficient and effective decisions. BI employs large database analysis, data mining, and statistical, mathematical and artificial intelligence and On-Line Analysis Processing (OLAP). BI has to provide tools such as screen/dashboard tools, OLAP, production reporting, modeling, end-user query tools and reporting and planning tools (Wayne and Wiley 2005) Combined Milk Products Pty Ltd (CMP) currently is operating using methods that may in any time be overcome by the prevailing trends which in essence would make it prone to failure or experience challenges of stiff competition. For instance, operational information needed to run the company, such as sale trends, promotional information, and distributor information and so on are not always well documented. Also, some key information is only known to a few senior employees. The website is not well put into use as it only includes the basic information such as product types and contact details. Thus it is quite not clear whether the website generates any new business. This proves a low rating in terms of knowledge management since the company lags behind in terms of awareness and response to any other competing enterprise. CMP needs Knowledge Management so as to effectively respond to economic challenges that do arise due to lack of knowhow. There exists modern and better communication tools would are fast, efficient and effective for a business which, however, are not found in CMP. This in effect contributes negatively to the progress of the business. Moreover, the methods applied may soon become obsolete. Business Intelligence (BI) need also to be implemented in CMP so as to improve on information dissemination and so that all who are involved working towards the success of the enterprise is aware of all that is required of them. Social media marketing is one of the major areas that need to be put into use. A vast population can be reached, ideas to improve can be generated and this takes much less time. Senior Employees at CMP Currently, the employees at the highest rank have not been carrying out their roles as required of them. They have minimized the extent to which information is conveyed such that only a few of them know the key information of the organization. Thus, documentation which is to be done in detail is seen to be poorly done. They can be said to be non-proactive as even for today, marketing is done, relying on the word of mouth. This goes with the fact that CMP uses little marketing. Currently they are not giving the General Manager the advice to employ for the betterment of the company which if they did the company would grow and maintain a competitive edge. Recommendations on improvements at CMP in terms knowledge management Improvement should be made towards the company, in this case, in relation to knowledge management. Firstly, external collaboration should be enabled. Most existing infrastructures of management only support collaboration of stakeholders from within. In order to however ensure a better and advanced knowledge management strategy should put into consideration external collaborations too (UDEN, 2014). These are a significant opportunity for an interactive pathway, co-innovation, and services design and enhance processes. Secondly, social media in CMP should be integrated. Social media plays a key role in knowledge management integration. Most critically, knowledge can be made accessible at all times and everywhere if mobile cloud initiatives are established. Thirdly, knowledge management system in can be marketed by brand building. For CMP to ‘sell’ its potential, it should display the knowledge message. The company should think about brand manager and knowledge management implementation. Excel spreadsheet forecasts can assist CMP with BI as follows; The forecast displayed clearly tells what among all the products need to be strategically taken care of. The percentage growth or loss data clearly against quantity cost shows the products that may fail to survive future market and those that would thrive very well. BI would be of great application. This is because it would help in data dissemination aiming at reaching majority of potential customers. Moreover, various causes of negative trend may be identified and though positive BI results, the company gains the potential to survive the future conditions which otherwise would cause a slump in CMP business situation. Also, by employing knowledge management, CMP would favorably survive the prevailing market conditions over other rival companies that may not have had such prior knowledge and may eventually exit the market. Porter’s Five Forces Model Strategic analysis of organizations’ interactions, the structures which bind their relative success, and structural position within the structure are all supported by Porter’s (1985, 2008) five forces model. Porter’s five forces (figure 1) is necessary as it frames analysis strategically the structure any given domain. Additional factors that complement the forces include innovation and technology, industrial growth, and interactions with other sectors including the leaders. Accrediting bodies and governments also play an important role, especially in higher education for instance. An analysis of buyer power and supplier power for CMP using the Porter’s five-Forces Model Parental perceptions with regard to quality and tastes of milk by-products significantly influence future purchases by the kids (KOUTSOCHERA 2012). Bargaining power of suppliers, especially the established ones, retain control over key industrial aspects and power. CMP as a company has that long existence in the market which puts it at an advantage over any incoming competitor regardless of the superior technology or more quality products. It would take time before the new entrants gain acceptance by the buyers in the market. (KOUTSOCHERA 2012) Porter’s “bargaining power of buyers” force can simply describe young children, though strategically, it represents a mirror, displaying a reflection of impact and influence of a wide group of youths and minimal older generation. Children depend on milk products as food and refreshments, resulting to substantial investments in the system. Beyond normal milk use kids, through their parents and guardians experience high opportunity costs by engaging in additional consumption of the by-products. This plays a role in the industry (Kennedy et al, 2009). Parents and guardians are important stakeholders of the industry not only when they make purchases for their kids but also in their sometimes deliberate choice on the milk by-product as they buy the products. An analysis of rivalry, entry barriers and the threats of substitute products for CMP using Porter’s Five Forces Model Rivalry among the existing competitors is expected to have an effect on performance of the CMP. The companies may try to offer lower prices with some even promoting their sales by providing free gifts and coupons. However, perception among people that free goods have low or no value in a way protects the rival companies from prevailing over CMP. Factor Market Rivalry (FMR) involves firms which employ the same types of resources, in this case milk, to end up competing in the same product markets. Majority of firms know the firms that are rivals in input and product markets. The rivals’ activities are checked in strategic places. Their behaviors are governed by their mutual forbearance even over a wide geographical region (Yu, Subramanian $ Canella, 2009). Two firms may also purchase identical inputs and end up in similar industries but not compete since product-market fails to overlap significantly. However, competition due one of the firms expanding firm growing, and diverts what it offered on the basis of perceived opportunities. Such unrealized potential FMR ends up being product market rivalry (Marksman et al, 2009). For instance CMP can have such a firm which initially bought milk for export and with time decides to change to doing what CMP does, ultimately becoming a rival competitor. In short, amongst existing competing firms, rivalry is high if majority of them occupy the same position in the market. The converse is also true. Fresh entrants to an industry, come in with different and new capabilities, and are strengthened to compete with the already existing firms. For them to access inputs that are not in use in other organizations, they may build upon success in other main areas or domains. Potentially they are at an advantage even in questioning assumptions and wisdom that at the moment may be obsolete. Then, they are not burdened by investment (psychologically or financially). Likelihood of appearance of incoming firms is a function entry barrier. The threat of substitute products is clearly identified for the CMP Company’s produce. Appealing price-performance outcomes result from substitutes and it becomes much easy to switch to, forsaking the already established product. (Mary $ Audacity, 2012) For instance a buyer has the power to choose from what is offered in the market putting into consideration the quality and the price tag of the product e.g., between cheese and butter, or whole milk and dry milk. The threat of new entrants is low in the market place if duplicating of product or service of a firm becomes challenging and ultimately difficult. Strategies on recommendations that can be employed to combat competition, showing the role of information systems in achieving these strategies The operational information necessary to run the company is seen to be poorly handled and managed. The company should have a clear cut way of data presentation, storage and dissemination. For instance sales treads which would show how CMP can be rated market-wise is not well documented. There should be a better way which enables comparison between the firm and other firms and ways in which the competition can be overcome. In terms of marketing strategies, a word of mouth, though is said to still have an effect, it is not as effective as when other modern ways are applied. The database should also be well managed and utilized as at the moment very few details are covered. Many other rival firms may be using the same kind of resource to better their marketing strategies which for CMP can be also applied and expounded. Information system is composed of data, database, process and information. Data component of an information system is referred to as a system input and consists of raw facts. Information needed by users impacts data type collected and used. Both internal and external sources of data should be used incorporated. A good data system is of great essence as it is used for operational reports and for future predictions of cash flow reports and budgets. CMP as a firm needs to put into place the measures on how to integrate into system the information systems for these and other purposes. A database is the core of an information system. It is a collection of all necessary data, integrated files arranged in series form. Any information system that is successful employs a comprehensive database. For success and proper utilization of such modern opportunities, CMP should ensure its database is well and efficiently put into use. In a computerized database, the database management system (DBMS) can be treated as an essential resource which is simple to use and easy to access, efficiency is enhanced. The process component of information system is to generate the key information in decision making. This entails decision analysis models and transaction-processing reports which by external sources can be accessed. This is found not to have been well employed in CPM as it is clear that only few partisans have access to the most useful information leave alone the nonpartisans. A good process should grow with the firm for users to restructure and redefine models integrating current data into their analyses. Information is made up facts already analyzed in the process part, thus, available for use by the MIS user. Information in CMP has not been well organized as the process component is not clearly defined and this should be noted with clarity for purposes of good use as information system output. Website and Social Media Sales and Marketing Marketing on social media is n important tool to employ in a firm as a wide range of people can be reached. This high population is able to assist in information conveyance and also generate new ideas for a company’s growth. These are essential in knowledge management integration. Information can be readily accessed anywhere at any time. As tools of technology information, customers gain great access to different kinds of data which include price comparison increasing customer loyalty and thus bargaining power. There is high supplier power if customers have less options and low when more option exist. Information technologies such as social media and websites increase a firms’ power in the market place. This in outlook has a greater picture in predicting the position of a firm at a given time alongside the current trends in place which ease the whole process of sale and marketing. Some barriers CMP may encounter when try to use this medium for marketing and selling its products For any endeavor there exist challenges that try to hinder its advancement. Firstly, there may exist among the managerial team, conservatives who would not be willing to change from the old ways of doing thing to modern ones. This in itself is a hindrance for growth as if majority of them would disapprove its implementation, then the integration process would be hindered. Capital is also a requirement as this medium would require resource persons. These would include network administrator, system analyst, web master, network administrator and others. So initial capital would need as would derail the process if funds were not available. The switch and gradual adapting to the new system would also be a challenge. Recommendation to be made on the way CMP operates so that investment on social media is a success; Various factors unless checked, would lead to the failure of the investment. For CMP to maintain a competitive edge and grow, it should deeply invest in social media. Some methods of marketing are not viable in this world that is fast and highly evolving. Word of mouth should not be considered as the only available way sales and marketing (CLOSE, 2012). Mass media should be used too to inform the potential market of the changes in place. Also, database website should be comprehensive and well packed with details and all information that need to be conveyed to the masses for their benefit and that of the firm at large. Few people can be said to be accessing the whole information about the firm. Both resource-men and buyers as the website cover little details about the firm with only few having the key information necessary to reach the firm’s objectives. Another problem is that of reaching the masses as only few that pass by get to be told about the firm. Security and mobility Potential internal and or external threat s to security that may compromised the safety of data within CMP Some employees within a firm, in some cases can be a threat to data safety. For instance, some are prone to betraying a firm to competitors which results to unfruitful efforts of knowledge management. Environmental uncertainty is also a threat as it would create fear, resulting to insecurity feeling. Poor data handling methods puts the data at a risk of loss as it is clear that little effort is made to keep a track of it.( MUEHLHAUSEN 2013) Farmer can also receive information from CMP which would be for the betterment of their sales and output. Such information is at a risk of reaching competitors who through their knowledge management and BI would try to out- do CMP. Ways to secure this data from the threat All employees should be trustworthy and have a sense of ownership for the firm, as each has the end in mind of reaching the set goals. Uncertainty is for every firm and this should be seen as a motivation hoping that all would end up well. Educating farmers and employees on the importance of information in the company for their benefit at large, knowing what they should share and what they should be silent about. Two (2) ways CMP can embrace m-business Personal lives and individuals’ work have integrated mobile technologies at a high rate. On relaxing the mutual constraints and independence of time and space for multiple organizational activities, maintaining a high value- for- time adherence, unlike the e-business (Corsairs et al, 2008). M-business can be done in the following; embracing an organization environment of technology framework and diffusing innovation theory (Wang et al, 2010). Also, research model should be embraced, whereby value chain innovations are applied alongside mobile technologies (Picot et al, 2014). Pros and cons of using CMP employees to build the time attendance system Pros; A microprocessor is used everywhere there are employees being provided by the system. It eliminates duplication as a result of data clocking due to borrowing and loaning of employees within the smaller systems, whereby the central processor can compile output used in the determination of payroll (ALSMADI & SAEED, 2013. The system prevents time wastage in different locations and also ensures that the operators do not forsake their roles for their own personal gain which ensure protection of the firm’s assets. Monitoring of the employees makes them conscious of their roles thus maximizing their output. (ALSMADI & SAEED 2013) Cons; The system creates a sense of restlessness and insecurity amongst the employees. People like to work in a place where they sense trust. The whole process of integrating the chips in many positions where workers need monitoring is expensive (ALSMADI & SAEED). The system is prone to becoming obsolete in our changing world and new, cheaper and more efficient methods may be invented rendering the current ones useless. Pros and cons of purchasing an off-the-shelf time and attendance application and outsourcing custom development Pros; As it is owned by the company, the management is in a position to easily update it and troubleshoot problems. The application is easy to use and only few details need to be mastered for effective long lasting use (BOURNE, 2013). To some degree, the application is customizable. For those new in business, they are able to save cash by building it themselves from the start. Costs rise as one adds additional services and features. It ensures that the employees are at the right place and time, resulting to increased sales. It prevents understaffing during peak seasons and overstaffing during recession times. Correct accounting is done for employees’ time for good analysis of the labor expense of the firm. Cons; If additional integration is done of the company’s trade secrets, secret information may end up leaked to the wrong people; it is a potential risk and may lead to adverse effects. The system is also unable to exactly tell the exact time the employees finished their tasks. Some track hours by checking on the last or first names only which poses a problem of identifying two personalities with such identical names. Some dictate that employees have to work a minimum of eight hours, which is a disadvantage since it may be slow and there lacks essence for, for instance six people on the watch when three can do the same task. Most fail to positively affect those that do overtime but penalize they that fail to reach the set times. Thus I would recommend off- the- shelf time and attendance application, which is not prone to interference by the employees unlike the other. References Bottom of Form Top of Form Top of Form Top of Form Top of Form Top of Form Top of Form Top of Form Top of Form Bottom of Form Top of Form ALSMADI, I, & SAEED, S Toward Agile Interactive Software Development Process Models for Crowd Source Projects(2013).. BOURNE, K C Application Administrators Handbook Installing, Updating and Troubleshooting Software (2013). . Burlington, Elsevier Science. http://public.eblib.com/choice/publicfullrecord.aspx?p=1402501. BOURNE, K. C Application Administrators Handbook Installing, Updating and Troubleshooting Software. (2013).  Burlington, Elsevier Science. http://public.eblib.com/choice/publicfullrecord.aspx?p=1402501.Top of Form CLOSE, A. (2012). Online consumer behavior: theory and research in social media, advertising, and e-tail. New York, Routledge. DOOM, C, & DOOM, C) An introduction to business information management. (2009) http://librarytitles.ebrary.com/Doc?id=10781922. Hagel, J, Brown, J S, & Davison, L) Shaping strategy in a world of constant disruption. Harvard Business Review (2012) p.p, 80-89. Harris, J, Breier, M, & Wihak, C Researching the recognition of prior learning: International perspectives (2011),  Leicester, UK: National Institute of Adult Continuing Education, p.p 468-493. INTERNATIONAL CONFERENCE ON KNOWLEDGE MANAGEMENT IN ORGANIZATIONS, & UDEN, L. (2014). Knowledge management in organizations: 9th International Conference, KMO 2014, Santiago, Chile, September 2-5, 2014, Proceedings. http://dx.doi.org/10.1007/978-3-319-08618-7. INTERNATIONAL CONFERENCE ON KNOWLEDGE MANAGEMENT IN ORGANIZATIONS, & UDEN, L,(2013). The 8th International Conference on Knowledge Management in Organizations: social and big data computing for knowledge management. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=638849. KOUTSOCHERA, D) Analysis of UK Grocery Retailers -Tesco- using competitive strategies Porter's Five Forces Analysis and Generic Strategies Model, Bowman's Strategy Clock - Investigation into Tesco. (2012) Saarbrücken, LAP LAMBERT Academic Publishing. http://nbn-resolving.de/urn:nbn:de:101:1-201209265390. KOUTSOCHERA, D, Analysis of UK Grocery Retailers -Tesco- using competitive strategies Porter's Five Forces Analysis and Generic Strategies Model, Bowman's Strategy Clock - Investigation into Tesco (2012) Saarbrücken, LAP LAMBERT Academic Publishing. http://nbn-resolving.de/urn:nbn:de:101:1-201209265390. KOUTSOCHERA, D. ( Analysis of UK Grocery Retailers -Tesco- using competitive strategies Porter's Five Forces Analysis and Generic Strategies Model, Bowman's Strategy Clock - Investigation into Tesco. ( 2012). Saarbrücken, LAP LAMBERT Academic Publishing. MUEHLHAUSEN, J Business Models For Dummies. (2013) Hoboken, Wiley. http://www.books24x7.com/marc.asp?bookid=56261. SWAAN ARONS, H D, & WAALEWIJN, P). A knowledge base representing Porter's five forces model. (1999) Rotterdam, RIBES, Rotterdam Institute for Business Economic Studies. Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Read More