Use of Information Technology to Support the Drive E-Business in Organizations - Research Paper Example

? The Use of Information Technology to Support the Drive for E-Business in Organizations s : Date: Abstract Application of information technology provides major benefits for enterprises as this has become a weapon for business survival. This requires development of a system that links all the process of the organization and gathers information from suppliers, distributors and customers. This system must be secure and integrates all the processes of an organization. In addition, the system must be maintained and upgraded as changes in technology occur. When introducing changes to the business model, staff must be retrained and the work culture managed to ensure successful implementation of a new system. Challenges in the integration of new information systems into business processes and information needs of an organization are inevitable. These challenges include training, outsourcing expertise and selecting appropriate systems. Therefore, it is important for organizational managers to identify these challenges and overcome them so that the advantages of applying information systems in business processes are achieved. Information systems and their incorporation in business functions enhance business activities. Through e-commerce for example, web based information systems are able to increase efficiency and effectiveness in transactions, communication, collaboration and information sharing within the supply chain. Table of Contents Abstract 1 Table of Contents 2 Introduction 3 Use of IT to integrate the sales and supply chain management 4 (a) System Requirements 4 (b) Ability for upgrade 8 (c) Competitive Intelligence Systems 10 (d) Integration into of IT into business model 11 The Challenges in Integrating New Systems 12 The Challenge in Outsourcing 14 The Challenge in Deciding On a System 16 Conclusion 17 References 18 Introduction Information system adoption and implementation is the most viable business solution for organizations especially those which are experiencing increased growth. It is through the information systems that management is enhanced and efficiency in transactions is achieved via e-business. On deciding to use information technology, the organizations must develop a system that will help integrate all the activities involved in the flow of goods from the suppliers to the customer. The system developed should be web-based given that e-commerce is conducted in distributed networks and must assure all the user of the security of the transactions. This is enforced by use of various components of an IT system. Given the dynamic nature of technology, the system needs to be periodically upgraded and therefore the organization must develop strategies to ensure smooth transitions. Businesses seeking to integrate their operations and processes should use competitive intelligence systems which gather information from all the components of the supply chain thereby guiding the innovation process in a company. However, there are challenges which organizations face in their attempt to integrate new information systems into business processes and information needs. These challenges include deciding on the right information system as presented by vendors to the management. An ideal information system must be in line with business needs and processes including congruency to the goals and objectives of the organization. Organizations also face a challenge f training users to integrate and apply new systems especially when such organizations are large. Outsourcing of technical staff is another challenge in integration because the outsourced companies may not be familiar with the culture, goals and objectives of an organization when integrating the new system. Use of IT to integrate the sales and supply chain management (a) System Requirements To enhance supply chain management which will help companies integrate their relationship with customers and suppliers, there is need to ensure that the system meets some certain requirements. Supply chain includes all the activities associated with the transformation and flow of goods from raw materials stage to their final stage of consumption by the customers (Misra, Khan and Singh, 2010). Supply chain also incorporates information flows and supply chain management is described as the integration of those activities and processes by implementing a system that will enhance the relationship within the supply chain flow which in turn helps businesses achieve a competitive advantage. To streamline its processes after an organization decides to implement e-commerce, it must develop a database detailing all the products it stocks and their prices. Moreover, another database is created to control the goods in the warehouse where after the stock falls below the reorder level, the organization makes an order for more supplies. The database also helps monitor the customer ordering rates and therefore plan with distributors to supply goods to the customers (Misra, Khan and Singh, 2010). The other requirement is a website which serves as an interface between customers, suppliers, distributors to the business. The website also links the business with the bank where the customers make their remittances. The website is based on distributed technologies where many people are able to make order from the client serve. After making an order and paying through the designated bank, the bank sends a confirmation to the organization and procedures are made to dispatch the goods to the customer. An electronic catalogue is usually used to list the prices of the products. Transaction processing middleware are required in implementing an e-business system. Transaction processing software enhances controlled connectivity and access by a large number of users. These include files and databases that store information useful to all persons involved in the supply chain. Moreover, transaction processing middleware include transaction monitors which acts as a link between executed user applications and backend resources by offering services like workload balancing, memory management and multi-reading. Transactions are described as computer activities that lead to variations in the state of the network service. For instance, transaction monitors checks to ensure that in money transfer, money leaves one account and is added to another account and in case it detects a fault in the money transfer, it reverses previous transactions and databases to their initial state. E-business system requires communication middleware which allows applications to corresponds with each other. Communication middleware include message-oriented middleware which allows the client and server operations to be well coordinated. Each application sends a message which is in-turn retrieved by the other application and acts accordingly (Al-Jaroodi, et al, 2010). Message oriented middleware operates on the basis of queues. Database middleware is required and these are useful in masking access to the database by applications. Application middleware are also required in developing e-commerce platforms. Application middleware are described as the products and technologies which trigger other applications, lengthen the operation of the applications and control execution services (Al-Jaroodi et al, 2010). This includes the common gateway interface which link with the web server by use of environmental variables the server provides after receiving instructions from the website. Furthermore, e-commerce requires directory services which stores information concerning the network resources and users who using the network resources. This is done to enforce security of business transactions (Al-Jaroodi et al, 2010). A directory service is required for email services which enhances the ability of users to identify the location of other users and send emails to them. Organizations deploying e-business ought to maintain a common email directory for maintaining email contacts of their clients. A local area network directory is required to store information authorized to access the LAN in addition to facilitating functions such as linking the up to the internet, allocating use of printers and enhances LAN chats (Al-Jaroodi et al, 2010). Directory services platform comprises various components including look up databases which keeps information concerning network resources and profiles of users. The user profile encompasses the names of the users, their address, departmental code, and phone numbers. Network services and resources include names of printers and computers being used. The directory services also stores security services information which enforces security limits. The directory service may rely on various security controls including password authentication or biometric measures. Moreover, to enforce further security in transactions, se-commerce requires use of a secure application infrastructure which is usually based on public-key cryptography. This requires public-key directory including all names and certificates of the authorized users (Al-Jaroodi et al, 2010). Given that E-commerce operates within a global environment, it requires an internet domain name service (DNS). DNS enables the identification of the organization on the internet. It links the domain name of the company to the IP address. In addition to the components required for developing an e-business system, there are various factors that these systems must fulfill some policies such as authentication of users of the network and integration. According to Al-Jaroodi et al (2010), supply chain management and enterprise resource management are critical in building an integrated e-business system. Supply chain management software applications software offers real time analysis to manage the flow of goods and information in the supply chain network (Misra, Khan and Singh, 2010). Most of applications software in the market are designed to meet specific supply chain management operations such as sourcing for suppliers, production scheduling, inventory planning, demand and transportation planning. Some of the current software supply chain management include: Advanced Planning and Scheduling, Business Intelligence, Component management, Warehouse Management, Customer Response Management, Enterprise Resource Planning, Manufacturing Execution System, Enterprise Asset Management, Forecasting and Demand Management, Secure Supervisory Control and Transportation and Logistics (Misra, Khan and Singh, 2010). However to do away with the fragmentation in the supply chain management applications, there are efforts to consolidate the functions into a comprehensive suite. Emergence of modern telecommunications and information technologies, systems are being developed to link suppliers, manufacturers, distributors, retail outlets, and client world over. In addition to supply chain management system, streamlining business processes and operations requires implementation of an enterprise resource planning system (ERP) (Misra, Khan and Singh, 2010). ERP is tool employed by a specific company to integrate all the business processes and optimize utilization of the available resources (Misra, Khan and Singh, 2010). An enterprise resource planning system equips the business with the required abilities to synchronize and integrate business functions and allow them flow smoothly (Misra, Khan and Singh, 2010). ERP systems are usually comprehensive covering most functions of the business such as sales, distribution, business organization, production control and shop floor oversight. However, the supply chain management system employed in e-business must meet specific requirements including integration of all the activities and stakeholders involved in the supply chain. Moreover, the supply chain management must offer capabilities for supply chain planning, forecasting and optimization by use of various tools such as decision support software. The supply chain management system must also have the capability of measuring performance from a global perspective. Furthermore the system must have the ability to respond to customer inquiries. Customers are afforded a chance to make inquiries through the FAQ section on the website. The system developed in e-business should be customer centered. The system must be able to gather and analyze customer data, problems being experienced by customers and their needs. The system must have the ability to share information with other members in the supply chain about the customer needs and logistics opportunities and challenges being experienced by customers. The system requires to be well synchronized of all the activities involved as goods flow from the supplier to the business and eventually to the customer via the distributors. The system must also be agile which means that it has the ability to process transactions fast and accurately. A supplier chain system developed in e-business must be well coordinated; this can be implemented by creation of a centralized system. For instance businesses develop a centralized warehouse management where all the supplies in the business are coordinated ensuring that supplies do not fall below a certain level. (b) Ability for upgrade In developing an e-business system, the organization must be alive to the fact that technology keeps on changing and therefore there will come a time when the system will need to be upgraded. Furthermore, as e-business is developing, a business may develop a system that does not support mobile commerce but after some time decide to add m-commerce services to its customers. The system developed must therefore have an ability to be upgraded without having to affect the core activities of the business or disrupting operations. To enhance upgrading of the system, documentation of the process of implementing the system has been described as a critical factor enhancing the ability of upgrading the system (Williams et al., 2009). All the processes involved in developing the system are well documented and therefore even in cases where another person is called upon to implement the changes, they can easily understand the system and identify areas that needs modification (Williams et al., 2009). In case the system is developed by consultants from outside the organization, it is critical to include some personnel from within the organization so that they can learn from the consultants. To facilitate system effective system upgrading, businesses can benefit from vendor support programs. Vendor support programs come in to assist a business in case there are issues in the operation with the system and may also carry out period maintenance to the system. To benefit from vendor support, business should seek to procure components for the system from vendors who are more likely to stay longer in the business. Such firms must also be in continuous research for newer and more efficient e-business solutions (Williams et al., 2009). The ability of upgrading the system is enhanced by creation of a research and development (RandD) department in an organization to make a follow up on the trends in e-business and propose changes to the organization’s e-business system. A Rand D section helps identify the available technologies in market and advices the management on the way such technologies can be used to achieve the desired changes in the present system. System upgrade also involves ensuring that system is always in good working conditions. This in-turn requires changes to the hardware components used in the system as they have a specific life span. In implementing an e-business system, an organization must make a commitment to change computers, printers and other hardware components after a specific period. This will make the transition smooth without negatively affecting operations. The organization should also come up with periodic maintenance of the system. Maintenance would involve scanning computers for malicious applications and checked system to ensure that it is not being accessed by unauthorized persons. (c) Competitive Intelligence Systems Businesses rely on information systems in executing their organizational strategy and as pathway for achieving the goals of the business. This is because information technology comprises of systems with which businesses caries out their processes and logic (Iyamu and Olumide, 2010). Most organizations rely on information technology as tools for innovation to enhance their processes and operations. Innovation is a competitive weapon for weapon for most businesses although it comes with so many risks (Iyamu and Olumide, 2010). Competitive intelligence system is an important tool for development of the strategy for the organization. The system contributes to technological knowledge and intelligence and is used in innovations based on information systems (Nemutanzhela and Iyamu, 2011). Competitive intelligence systems are considered as tools for guiding the innovation process, monitoring of the market and analyzing the behavior of customers and competitors assessing their values, needs and expectations (Nemutanzhela and Iyamu, 2011). Competitive intelligence system processes and refines information and knowledge be it from within the organization or within the network of organizations (Nemutanzhela and Iyamu, 2011). This is critical in e-business as it allows organizations to integrate the all the information from all players in the supply chain thereby enhancing coordination. Competitive intelligence systems are used to help adjust a given strategy to the competition paradigm (Iyamu and Olumide, 2010). They offer a strategic advantage for many businesses and are used with an aim of better coordinating the internal processes and operations within an organization. Their deployment is the beginning of creation of an integrated organization with innovation technology driving innovation. (d) Integration into of IT into business model Implementation of information technology by enterprises has shifted from its previous tool of creating competitive advantage for organizations to being a weapon for survival. However, the process of integration of IT into the organizational processes of the business must be carried out in a well coordinated and in phases. After the system has been developed, it is critical to train the staff on the functioning of the new system. Training involves creating awareness on the use of the system and the roles of each individual within the new system. Training helps to motivate and prepare the employees mentally of the new system (Perumal and Pandey, 2008). In integrating IT into business model it is important to carry out cultural management. According to (Perumal and Pandey, 2008), every major transformation comes with changes in the work culture of the organization. In addition, an organization may have employees having different cultures and therefore the two needs to be managed well to avoid crisis in the organization. In integrating IT into the business model, the management must come up with based on a measurable platform which allows for corrective actions to be implemented when need arise (Perumal and Pandey, 2008). Key performance indicators are developed to help monitor performance. After the IT system has been developed and integrated into the business model, monitoring of results should be monitored continuously to evaluate the impacts of change and decide on the course of action (Perumal and Pandey, 2008). From what is observed after monitoring, the interaction of various components within the organization should be maximized to ensure the gains made from the transformation are sustained. In addition, the management in an organization must be alive to the fact that transformation is not a one of activity but should be built into the organizational strategies and carried out in as a continuous cycle. Therefore there should be period retraining of the employees in an organization. The system must also be upgraded continuously to keep up with the changing trends. The Challenges in Integrating New Systems The process of development information systems within organizations is not effective if the system cannot be implemented and integrated to the business functions of the organization (Murtaza, Gupta and Carroll, 2009, p. 325). Integrating information system into business processes requires that the information requirements of the organization and its business processes are streamlined to fit the information system (Shahrokhi, 2008, p. 365). In this sense, the challenges that businesses or organizations face in integrating new systems into business processes are attributed to poor streamlining of the systems with information needs. E-business in itself is a challenge especially when organizations are obliged to integrate a new system into business activities. In supply chain management, managers are mandated to manage the production, supply, distribution, marketing and sale of a company’s products and services. Information systems such as supply chain management systems are developed and implemented by organizations. The challenge which there organizations face is the integration of the systems into the business processes of the supply chain (Van Donk, 2008, p. 308). The integration of information systems into a supply chain becomes challenging because the diverse information requirements of the sectors of a supply chain must be met by the information system. When organizations grow into international supply chains, the challenges in management become more. Internationalization of organizations and their supply chain demands for the development of an information system. The implementation of international information systems and their integration into the trans-border e-business is a challenge which many organizations face (Jain and Benyoucef, 2008, p. 469). This is due to the problems associated with trans-border data flow. The administration of international supply chain management systems is derailed by the integration process. Information system administrators are obliged to ensure that the information system is able to meet the needs of the various functions of a supply chain regardless of their position or location in the world. As a result of this challenge, many information systems fail to adequately meet the information needs of suppliers, producers, distributors, marketers and sales representatives across the world. Electronic commerce requires that information systems are connected sufficiently across the world. The internationalization of supply chains is often faced with a challenge of technological hurdles. Communication within a supply chain is acutely challenged by poor connectivity. When technological problems emerge, the integration of an information system into the business processes and information needs of an organization is doomed to face challenges (Zaidman, Schwartz and Teeni, 2008, p. 268). The design and development of information systems can be perfected through appropriate application of ERP and SDLC approaches. However, implementation and integration of the system into the business functions would be paralyzed by lack of reliable connectivity. Organizations which have a global supply chain often experience a problem of losing connectivity into some of its subsidiaries especially in the developing world. This demonstrates the challenge that these organization face in integrating new information system into the e-business across a company’s subsidiaries across the world. Additionally, the integration of information systems in the management of a supply chain is arrested by technological challenges such as poor connectivity (Van Donk, 2008, p. 310). Organizations often face a challenge of managing user involvement in the integration of a new information system into business processes (Zaidman, Schwartz and Teeni, 2008, p. 267). If users resist a new system, it means that its implementation and integration into the information needs of the organization is not possible. The resistance of users during the implementation stage of an information system usually emanates from lack of proper user needs analysis during the development stage of the system. Moreover when the users are not involved in the design stage, a challenge of resistance to the new system is more often than not expected (Regalla, 2007, p. 7). Information system administrators and the management team have a challenge of ensuring that the attitudes and perceptions of the employees towards the new system are positive. This is a sure way of ensuring acceptance of users to the new system and their involvement in its integration into business processes. The challenge of causing change in organizational culture makes it difficult t integrate new information systems into business processes. If employees and clients of an organization are used to the old system of processing information, the integration of a new system is bound to face barriers and challenges associated with cultural change and developing new attitudes towards the new system. The Challenge in Outsourcing For a new information system to be successfully integrated into the business processes and information needs of an organization, user training is mandatory (Murtaza, Gupta and Carroll, 2009, p. 330). Training involves the management team, employees, customers, suppliers, distributors, marketers and sales representatives of a supply chain. This in itself demonstrates an eminent challenge in training users of a new information system. The challenge in user training becomes more complex and challenging in global supply chains. Users must be able to apply e-business effectively in processing information within a company’s supply chain so that the objectives of a new information system are attained (Jain and Benyoucef, 2008, p. 469). The challenge in training often arises from lack of adequate resources in terms of time and money. Organizations are often faced with tight budgets and high operational and marketing costs which are associated with internationalization of supply chain. Moreover, the budgetary allocation for the development and implementation of an information system may not be adequate to meet all training needs of the users (Murtaza, Gupta and Carroll, 2009, p. 330). Furthermore, it is challenging to train a large work force and a diverse group of users across a global supply chain due to the challenge of obtaining adequate training expertise. Companies often outsource IT services as a way of cutting on the costs associated with the IT management and implementation. The challenges which an organization is likely to face inn outsourcing is related to the fact that outsourced expertise may not be conversant with the organizational culture, core objectives and goals. As a result, the integration of a new information system with the help of outsourced services may not attain success. The companies which organizations outsource usually have different business processes and information needs which makes it challenging to enable them to satisfactorily integrate a new information system into the business activities of the organization (Jain and Benyoucef, 2008, p. 470). When outsourcing technical support, organizations are often faced with challenge or identifying the most skilled and experienced expertise to provide IT services (Vizard, 2009, p. 3). In large supply chains, it is challenging to outsource technical support because aggregate costs are likely to be high. In addition, outsourcing poses a challenge to information system administrators in determining whether there are hidden costs which would be associated with the outsourced services. The Challenge in Deciding On a System Business activities are diverse especially in a large organization with a global supply chain (Zaidman, Schwartz and Teeni, 2008, p. 272). IN conducting e-business, organizations face the challenge of determining the right system for effectively meeting the information needs in transacting business. The business requirements of suppliers, producers, distributors and marketers within a supply chain are diverse and vary. In this regard, it is evident that organizations are faced with a challenge of deciding on the right system which will integrate all information needs and business requirements of the various functional areas (Shahrokhi, 2008, p. 365). When the development process of an information system is outsourced, the problem and challenge of deciding on the right system becomes a problem for IT managers. Moreover when vendors present information systems before the management for selection, they may be convincing even through their systems are not ideally in line with the business requirements and information needs of an organization. The application of information systems within modern organizations is aimed at enhancing e-business process and thus making them competitive within the business market (Vizard, 2009, p. 3). The challenge which the management team faces in selecting the right information system which meets the aims of the organization is therefore eminent. For example, it is difficult to decide the kind of information system which will enhance security requirements of an organization in information processing. Vendors would present information systems to managers who lack adequate IT expertise to understand the security requirements of the organization and how the new information system would ensure that this security is enhanced (Regalla, 2007, p. 10). As such managers are faced with a challenge of deciding the most appropriate system which will not only lead to efficiency and effectiveness within the organization, but also secure it from attack. Conclusion For organizations to achieve success in e-commerce, development, implementation and integration of appropriate information systems within business functions is inevitable (Zaidman, Schwartz and Teeni, 2008, p. 270). For an organization to achieve success in integration of new information systems into business processes and information needs, the challenges of this integration must be identified and overcome. Improvements in information and communication technology characterize the modern business environment. As a result, organizations are obliged to adopt, implement and integrate these systems into their functional areas so that they would gain a competitive advantage over their business rivals. Integration of information system is described as the most appropriate and profitable business solution. This is because information systems enhance communication, information sharing, management, and marketing and improve efficiency in business transactions and processes. Through e-business for example, payment transactions are efficiently achieved over the internet. The importance of information systems are mostly felt by organizations which are experiencing increased growth and internationalization into a global supply chain. Through information systems and web based applications, efficiency and effectiveness in the management of a supply chain is attained in addition to improved communication among marketers, suppliers, producers, distributors, managers, customers and employees. References Al-Jaroodi, J. et al, (2010). Security middleware approaches and issues for ubiquitous applications. Computers and Mathematics with applications vol. 60, (2). Iyamu, T., and Olummide, O., (2010). Components of the computing environment. GESJ: Computer Science and Telecommunications No.. 3 (26). Jain, V., and Benyoucef, L. (2008). Managing long supply chain networks: Some emerging issues and challenges. 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