System Management Overview - Example

TITLE PAGE Assignment Title: Assignment 2 Report Title: FIN’s Organizational Change Student’s Name: Number: Course Name: System Management Overview Course Number: COIS20024 Term: Year: 2014 Tutor’s name: Due date: Date submitted: EXECUTIVE SUMMARY Purpose of report This report seeks to advise the owners and management of ‘FixitNow’ (FIN) on how to improve various management requirements in their enterprise by incorporating relevant information systems, while addressing the emerging issues and problems in the business. Major findings The problems facing FIN result from a failure to automate systems and proper leveraging of technology. As such, FIN should seek to incorporate the relevant information systems upon consultation and planning with a qualified expert. Other issues to be addressed at FIN are the proper application of business ethics and the use of Porter’s competitive forces model to give the organization a competitive advantage. Conclusions An overhaul of all the systems at FIN and a new approach to management and business, as recommended in this text, will be a cure to the chronic problems at FIN. Specific recommendations Proper planning, preparation and communication in the implementation of organizational change Technological overhaul of all of FIN’s operations. Automation of operations. A review of the business ethics of FIN at all levels A proper use of Porter’s competitive forces theory to improve FIN’s business. INTRODUCTION This report will address the management problems in the FIN business by addressing the various emerging issues in management. Answers will be given to the various study questions raised, by using thoroughly researched references that are relevant to the particular queries. Hence, the report will advise the owners of FIN on the best possibilities that suit their important management requirements so as to streamline operations, in a bid to make more profits while rendering great service to the clients. DISCUSSION Information Systems Information systems refer to the software and hardware systems that are supportive to various data-intensive applications. As such, they are ways and means by which people and organizations use computer systems to collect, process, use, store and distribute relevant information. The systems are important to businesses for various reasons. Firstly, information systems allow easy and efficient information storage and analysis. Companies can use comprehensive and sophisticated databases that hold all the required, relevant data concerning the particular organization. Apart from the storage, these systems can be configured to update as well as analyze this information, which then helps in pin-pointing solutions to current and future problems. Secondly, information systems assist with the making of decisions. The management team in an organization uses the information systems output to formulate relevant strategic plans and make decisions that ensure the prosperity and longevity of the organization. These systems also allow the evaluation of information from all relevant sources including the external references that provide general information on the economy. Thirdly, information systems assist in improving business processes. This means developing value-added systems in the organization and in so doing simplifies the business and removes the unnecessary activities and repetitive tasks while increasing accuracy (Sousa et al., 2014, p.33). There are five major types of information systems. Decision Support Systems help in making decisions by analyzing data which can be used in generation of statistical projections and relevant data models. Management Information Systems uses data collected to create relevant reports that managers use in making routine decisions in responding to arising problems. Transaction Processing Systems provides an efficient way for collecting, processing, storing and modifying data on business transactions. Expert Systems and Neural Networks or Knowledge- based systems analyze data and produces diagnostic recommendations. The neural network interconnects data from various sections of the business. Office Automation Systems serve the people at the knowledge level of the organization and help in processing of organizational and personal data as well as create documents and perform calculations (Sousa et al., 2014, p.37). The named types of information systems are relevant to the FIN business as they address all if not most of the arising issues and problems. Business and Technological Change The first thing that needs to be done is the automation of all business operation by applying various information systems. This means that all accounting, inventory requirements, supplies operations and payments of dues should be computerized and integrated into the overall business system such that losses, repetition, delays, errors and confusion are minimized or eliminated all-together. There is also a need to establish proper communication channels. The organizations should commission a FIN business website where all relevant information can be found. Additionally, each employee should be assigned a mobile communication handset and a local FIN network established, such that any employee can be reached at any time during working hours. Each employee should also have a work email address. The other thing to be done is the improvement of customer care. A department should be established on the same. A system for online ordering and payment should be established for the clients. Lastly, a system for proper dissemination of relevant data should be formulated. Apart from the FIN website mentioned before, the organization should establish group databases for employees and also for clients. These databases should contain the relevant information particular to individual target groups (Andriole, 2008, p.49). Michael Porter’s Competitive Forces Threat of new entrants Profitable markets which yield relatively high returns are most likely to attract new players. This leads to many entrants, consequently decreasing the profitability margins for all players in the particular industry. The only way out of this predicament is for the incumbents to block new entries (Hill et al., 2012, p. 36). Threat of substitute products/services The existence of a substitute product or service beyond the realm of common product limits increases the propensity of clients to switch to the alternative (Hill et al., 2012, p. 36). Bargaining power of customers This can also be defined as the ‘market of outputs’ and refers to the ability of the buyers to put the organization under pressure to review prices. Organization can respond by taking various measures to reduce the buyer power, for example, by implementing loyalty programs. The buyer power becomes high when the buyer has a myriad of alternatives (Hill et al., 2012, p. 37). Bargaining power of suppliers This is also referred to as the ‘market of inputs’. The suppliers of components, raw materials, services and labor to an organization can have power over the firm in the face of a few substitutes. As such, the suppliers might refuse to work with a firm or charge very high prices for needed resources (Hill et al., 2012, p. 37). Intensity of competitive rivalry For most of the industries, the level of intensity of the competitive rivalry is a major determinant of the overall competitiveness of that industry The bargaining power of customers and the intensity of competitive rivalry are two forces that apply directly to FIN. This is because the customers can demand for reduced prices especially in the face of existing cheaper products offered by other firms. Also, FIN faces stiff competition from players offering the same products, but giving better services at reduced prices. FIN should review the pricing of various products while ensuring customer loyalty through improved service and customer loyalty programs. Additionally, FIN should take care of competition by sustaining competitive advantage by leveraging of technology and rolling out comprehensive advertisements, while ensuring improved customer experience (Hill et al., 2012, p. 38). Information Requirements of FIN Information requirements refer to the information needed to operations within a business. In information systems, the information requirements constitute the information input such as detailed lists of transactions such as purchases and orders as well as data from the master records touching on customers, employees and suppliers. The frequency by which this information is availed is part of the requirements (Misra et al., 2006, p.216). The information requirements for FIN include: Data on employees, casuals, customers and suppliers, data on various transactions such as purchases, orders, quantities involved and banking data, marketing data including information on competition all other information which encompasses inventory level, operational plans and schedules, company history, goals and vision, financial figures, product data, pricing information and sales data. All this information together with any other external information will be used in feeding the information systems for FIN. Major Ethical issues Compliance and Governance issues Businesses are required to comply with federal and state regulations, fiscal and monetary statutes, civil rights laws and environmental laws. All accounting practices must be above board (Hill et al., 2012, p. 99). Discrimination/Diversity Issues All employees and customers should be treated fairly and with respect. There should be equal opportunities in training programs and in employment regardless of gender, race or creed (Hill et al., 2012, p. 99). Fundamental Issues The most essential and fundamental issues that a business should face are trust, honesty and integrity. This should be at all levels, i.e. the owners, management, employees, suppliers and clients. Business should be conducted with honesty and a commitment to fairness (Hill et al., 2012, p. 100). Contemporary business and information systems ethics impact FIN’s operations in many ways. The issue of compliance should be taken seriously and all transactions must be done within the law. FIN should exercise fairness in dealing with employees, customers, suppliers and clients. A culture of honesty, integrity and openness should be cultivated. The three owners and senior management should operate with trust and openness as examples to the rest of the establishment. In integrating information systems to the operations of FIN, care Needs to be taken to ensure that all informational requirements are truthful and correct and that there is no improper manipulation of data is avoided (Kernes, 2009, p.192). . Managing Organizational change in Business Organizational Change in business should be managed carefully for various reasons. Firstly, in case the involved consultants are insufficiently equipped, the change process is likely to suffer. The consultant may be under-equipped at a personal, informational or analytical level. As such, the involved experts must have capacity and the business should disseminate all the relevant information to the consultant (Duncan, 1986, p.312). Secondly, the model of change must be complete. The organization must engage in a process that will account for complex, non-linear nature of good transformation. Otherwise, the results will be mediocre and uninspiring. Thirdly, there should be capacity at all levels of the organization. This means that the personnel must be dedicated and time created for the project besides the normal working hours, to plan, design and coordinate the transformative process. Another capacity requirement is the availability of resources to finance the process (Holan et al., 2002, p.76). Some guidelines on how FIN can best manage organizational changes include: Thorough preparation and assessment of design requirements, proper planning and organizing for the actual implementation, intimate communication and involvement of all members of the organization and focusing on results that address pertinent issues and problems within FIN (Schneider, 2009, p.54). SUMMARY Information Systems are very important for good business management. However, proper preparations must be made in implementing organizational change and in incorporating the relevant information systems, if real change is to be achieved. Porter’s competitive forces model can be very helpful in improving a business, so is the proper application of technology. Finally, correct business ethics must be embraced at FIN. RECOMMENDATIONS Proper planning, preparation and communication in the implementation of organizational change Technological overhaul of all of FIN’s operations. Automation of operations. A review of the business ethics of FIN at all levels A proper use of Porter’s competitive forces theory to improve FIN’s business. REFERENCES Andriole, S. J., 2008. Best Practices in Business Technology Management. London: CRC Press. In this book, Andriole seeks to explain how to best integrate technology into a business. He points out the fact that many businesses spend a lot of money on new technology but their business processes and models underutilize the resources they have as well as the newly acquired. The text is targeted at consultants in the field and hence can be used by students studying on the same. This text is relevant to case study question 2 as it gives advice on how, why and when to utilize technology in a business. The only shortcoming in the book is that it focuses on big businesses and fails to address small and mid-level businesses. Duncan, W.J. 1986, "Ethical Issues in the Development and Application of Business and Management Knowledge", Journal of Business Ethics (1986-1998), vol. 5, no. 5, pp. 391. In the journal, Duncan deals with various ethical issues in the development and consequent application in business and management. The issues are illustrated with the help of case studies. The main audiences are students studying business ethics. The text is useful in addressing case study question 6 as it expounds on the ethical issues encountered at all levels and organs of an organization of whatever size, location or industry. The main limitation of the text is failure to address all ethical issues encountered in businesses. Hill, C. and Jones, G., 2012. Strategic Management: An Integrated Approach. London: Cengage Learning. Hill and Jones wrote this text after research on the effect of Porter’s forces on various businesses. Their research focuses on various topics including corporate performance, strategic leadership, business ethics, proper management and business ethics through case studies based on Porter’s competitive forces model. This book is useful in answering case study questions 3 and 5 as it explains porter’s six competitive forces and their relevance to business management as well as business ethics and their importance in the success of an organization. The main shortcoming of using this text is the fact that it is sometimes quite critical on the correctness of Porter’s models in certain business settings, although it comprehensively covers business ethics. This book is research based but is very relevant to anyone seeking to understand Porter’s models and business ethics. Holan, M.D. & Phillips, N. 2002, "Managing in transition: A case study of institutional management and organizational change", Journal of Management Inquiry, vol. 11, no. 1, pp. 68-83. In this journal, Holan et al. did a case study on MegoTaplan, a medium-sized Cuban company that continues to manufacture quality products and make good profits in a catastrophic economy and facing a lot of competition. As a research document, it is very useful in addressing case study question 6. It gives a thorough explanation on the careful and effective management of organizational change at MegoTaplan. It also explains how to manage complex institutional linkages and ideological demands in a changing management structure. The main limitation of this text is its failure to draw a comparison to other less punishing economies. Misra, S.C., Kumar, V. & Kumar, U. 2006, "An actor-dependency technique for analyzing and modeling early-phase requirements of organizational change management due to information systems adoption", Journal of Modelling in Management, vol. 1, no. 3, pp. 215-231. In this journal, Misra et al. address the various requirements, including information requirements, when modeling organizational change in a bid to incorporate information systems. This is a research document that can be used as an educational text on requirements of organizational change. The journal cites the various sources of information and presents an actor-dependency technique for analysis and modeling of early-phase requirements in managing organizational change. The text is useful in answering case study question 4 as it gives the information requirements in the relevant context. The main shortcoming of the text is failing to draw a line between informational differences in big versus small companies. Sousa, K. and Oz, E., ed., 2014. Management Information Systems. Stamford: Cengage Learning. In this book, Sousa et al. provide a real world understanding of information systems and their appropriate application in businesses. The main target audience is students taking courses that cover information systems. This book is useful in answering case study question 1 as it explains the various types of information systems and their importance in any business management setting. Additionally, it explains how to systematically integrate information systems into a business to solve various problems. The main weakness of this text is that it is too technical and hence might not sit well with students taking non-technical courses. Andalibi, M.A., Rafizadeh, K., Salimi, B. & Khleghi, M.R. 2013, "Effects of Technology and Change Management on the Business", Interdisciplinary Journal of Contemporary Research In Business, vol. 5, no. 2, pp. 618-625. Karnes, R.E. 2009, "A Change in Business Ethics: The Impact on Employer-Employee Relations", Journal of Business Ethics,vol. 87, no. 2, pp. 189-197. Kennedy, C. 1996, Managing Without Management: Richard Koch and Ian Godden: Published by Nicholas Brealey Publishing, London (UK). Schneider, C. & Sarker, S. 2005, A Case of Information Systems Pre-Implementation Failure: Pitfalls of Overlooking the Key Stakeholders' Interests, IGI Global, Hershey. Yoda, Y. & Yoshida, M. 2011, "A CONSIDERATION IN DEVELOPING STRATEGIC INFORMATION SYSTEMS THROUGHOUT BUSINESS TRANSFORMATION: A CASE STUDY OF SEIREN CO., LTD", Journal of International Business Research, vol. 10, no. 2, pp. 143-165. Read More