Effects of Implementation of Information Systems in E-Business - Essay Example

?Production Introduction The utilization of information systems remains a business strategy adopted in introducing fundamental improvements into the various business processes. Many challenges experienced while utilising various systems necessitate the improvement of business processes, to enhance efficiency and customer satisfaction. Improved processes remain fundamental in achievement of significant gain within the business environment. The implementation of management system would enhance information sharing between different stakeholders, consequently improving efficiency of the communication channels utilised. Proper communication remain essential in ensuring the minimisation of errors; hence improvement of the business process. The utilisation of an internet based system for establishing links between salesmen, customers and suppliers remains essential in improvement of the processes. The different stakeholders will access information from a central source, and share information from the same centre. This sharing can effectively improve business processes and increase the company’s market share. Objectives The main purpose of the subsystem remains ensuring quick transfer of information and sharing between various stakeholders. The system aims at improving the business process and increasing efficacy of the process of making sales and manufacturing. Improvement of these processes can result in increased sales owing to the reduced time taken in making orders and delivering supplies. The application of the system objectives can ensure the company sales increase significantly, ensuring the company achieves significant growth. Background Avitz Bike is a UK based manufacturing company which specialises in different types of bikes for different markets globally. While the company experiences a considerably good market share, stiff competition has resulted in reduced market share over the last 5 years. This reduction has been attributed to the duration taken before bikes are delivered to customers. The company relies heavily on sales made through different retailers across the United Kingdom. While the utilisation of retailers has continuously provided sufficient market-share, improvement in the selling process remains inevitable as the company seeks to increase sales. The utilisation of an E-business system seeks to ensure the company reduces the delivery time for most products. This would effectively increase the current sales volume, consequently increasing the market share. The company has adopted the E-business strategy to eliminate the lengthy supply chain, present in the current strategy. Description of the business process The process of receiving orders within the business involves direct communication with retailers, through telephone, electronic data exchange of facsimile. The retailers first make contact with sales managers, to negotiate on different product prices, before making orders to the company. The orders are then subjected to a validation process, which includes verification of various order requirements as stated by the retailer. This validation process results in acceptance or rejection of the order. Following the validation of different orders, required parts can be orders to enhance the assembling of the requested bike. The customer specifications determine how the distributors deliver bikes to various retailers. When utilising process, the company does not make direct contacts with the customers making the process lengthy. The company utilises an information system developed in 1997, built on LAN with Windows NT as the client-server system. The current system contains information regarding customers, suppliers, bikes and other physical attributes of company products. Some of the information contained within the system remains available to specific departments, an aspect which causes delays. Problems and solutions in project that the company is facing The company faces a number of challenges resulting from the current business process and information systems. The biggest problem facing Avitz Bike remains the experienced delays which have resulted in diminishing market share. The supply chain utilised in making orders remains lengthy and time consuming. The company plans on adopting a different method where the customers place orders directly, to the company. This would reduce the number of individuals involved in the supply chain process; consequently reducing the duration taken in delivering customer orders (Myers & Rosson 1992). The information system utilised by the company also presents another problem to the business process. The system remains highly departmentalised, with different departments enjoying various privileges. Many departments lack access to information which could be essential in timely delivery of different products. The integration of the system into a large system could overcome the problem and enable various departments to access more information (Kulak & Guiney 2000). The utilisation of a LAN network provides limitations to the access of different information on company products. A public internet based platform would effectively ensure customer can place orders directly to the company (Connolly & Begg 2000. This would reduce the number of individuals involved within the supply chain; consequently reducing the time taken in making orders. Sub-system analysis and design The system has been developed in consideration of the different users utilizing the system. The capabilities and requirements of the users have been integrated into the development of the system to ensure efficiency and effectiveness of the system. The design of the system seeks to ensure ease and comfort for the users. The system design seeks to ensure all user requirements become addressed and effectively integrated within the system. User profile There are three users who will be utilising the system: customers, suppliers and sales staff. The customers will be making orders for different types of products available within the company products, and consequently make payments for the orders made. The sales staff will be checking the orders received then confirming such or rejecting orders based on the availability of products, and assessment by the sales team. The suppliers will be receiving the order confirmation and then checking payments before making deliveries for ordered items. User requirements The desire to expand and increase the company market share has necessitated the improvement of business processes. The implementation of the system seeks to satisfy the requirements of major stakeholders in the process of manufacturing and selling bikes by the company. Increased numbers of customers require easy access to information, sales staff desire reliable communication channels, and the suppliers need to understand the required materials in order to deliver on time and quicken the manufacturing process. This system seeks to provide an improved process according to the following user requirements. The customers need to access information regarding availability of products and specification of different products. Such information includes price, colour, among other physical attributes of the available products. The system must provide customers with guidelines to assist in searching for desired products and ensuring the customers gain essential information before making orders. The payment methods provided within the system are both efficient and effective, based on customer requirements. The production staff requires clear information regarding product requirements established from the customer orders. This would effectively assist the sales staff in making informed decisions regarding the received orders. Since the information must be transferred to other departments, clarity becomes essential in ensuring accuracy of transferred information. The system should also provide the sales staff with capacity to provide feedback to customers for clarification of various issues, which might arise. The suppliers require an easy access to the system from remote locations, providing essential information on requested supplies. The system should enable the suppliers to determine products being manufactured. This would enable the suppliers to understand different attributes, which might not be specified. Through the provision of such information, suppliers would deliver quality products, on time. Achievement Upon completion and subsequent implementation of the subsystem, the business process will become effectively improved. This will occur through the elimination of the lengthy ordering process of products through ensuring customers make direct contact with company representatives. The customers will be able to check the progress of their orders on the provided public website as well as make provided amendments. Customers will be provided with the privilege of accepting or rejecting quotes from company sales representatives. This will create a direct communication link between customers and the company, and consequently reduce the duration taken in making orders. Process map Diagram 1 process map The above diagram shows a process map for different activities performed by various stakeholders involved in the process of actualising a sale. The customers remain the main stakeholders initiating the process of making an order. Within the system, customers will be required to create an account from which they can make new orders and check the progress of existing orders. The sales persons within the company shall be the individuals receiving customer orders and making essential processing of the orders. Analysis of the orders will result in rejection or acceptance of the order by the sales representatives. Following acceptance of the orders, the sales persons will initiate communication between other departments involved in production process. These include communicating with the warehouses to check product availability, and production department to confirm components. Within the process map, the fundamental role of the sales staff shall remain confirmation of payment on behalf of the other departments. The suppliers will be able to access information regarding order progress form the company website. The information gained will ensure suppliers remain informed about new orders which they might receive from the company. This information will ensure suppliers can deliver components within a short notice; enhancing the overall product delivery duration. The suppliers will ensure delivery of components from manufacturers on behalf of the company. This will also become a time-reducing element within the overall process map. The system enhances information sharing between the various departments and stakeholders in quickening the business process. UML modelling for the subsystem Diagram 2 production activity diagram for a new order The above diagram indicates the various activities which the production manager would perform in ensuring timely delivery of a new customer order. The process begins with the manager checking for new orders within the system to ensure production process remain updated according to the received orders. The received order can be extended to provide time for handling other orders received earlier. Following the first step of checking customer orders, the order becomes marked as in progress. The manager then issues a dispatch order for the production process to begin. The dispatch order serves as a formal request for material which might not be available to ensure completion of the order. The production manager can then begin making schedules for the shipment of the completed proudest. The system provides a platform for estimating the time taken to produce different orders, according to their specifications. This estimation remains a fundamental element in assisting the production manager to develop schedules for delivering completed orders. At this stage the customer can know when to expect the ordered product. While the manager prepares these schedules, the production process remains ongoing; hence the activities occur concurrently. Since customers can view the progress of their orders from the website, the manager must keep updating the online records. This would include provision of information, regarding the progress made towards delivering the final product. The finished product must be delivered to the production manager for inspection. This ensures the product fits the requirements presented by the customer when ordering. Following inspection the product can be delivered to the customer according to the shipment method defined by the shipment schedule. The record is then updated indicating the order as completed and dispatched, awaiting customer confirmation. Database schema and relationships for the sub-system The system involves the integration of various activities undertaken within the company to ensure timely delivery of different products. The system enhances the exchange of information regarding work progress between different departments, consequently resulting in a controlled movement of data. The departments share critical information regarding customer orders for efficacy of the business process. The information received from the customers initiates actions in different departments. These actions are recorded and the information shared across the company. Different department utilise the generated data in performing different functions. The work order, for example, is utilised in developing a production schedule by the production department. The sales department on the other hand utilises work order information to develop a sales schedule. Within the previous business process the level of information sharing between departments remains relatively low, and this could be a significant improvement in the process. The stock control panel receives data regarding the required product and develops a work in progress data. This data is transferred to the production department and it results in development of a work order by the production department. The work order report is then utilised in the development of different schedules for delivering the finished products. The various schedules developed include production and sales schedules. Following the scheduling process, the other processes are undertaken in presenting the finished product to the customer. With the introduction of the information system, the process of sharing information becomes extremely easy and quick. This ultimately results in the quickening of the business process, which has been identified as lengthy and cumbersome. The integration of this data retrieving element shall enable the overall improvement of the business process utilised by the company. The diagram below shows a data flow diagram for the company. Diagram 3 company's data flow Database Scheme of Production The database scheme of production represents an extensive aspect involving numerous production entities identified within the system. Each entity contains different attributes, which must be clearly identified and defined when assessing the performance of the scheme. The attributes represent the information requested by the system in developing an entire entity within the system. The attributes attached to each order remain a fundamental element in determining the identity of the order when making follow-ups, by the customer. All attributes have Ids which can be utilised in defining the progress of work during the production process. The scheme consists of numerous sequential interrelated processes, which are performed to ensure successful completion of different orders. The presented orders might include all or some of the entities defined within the system. The system consists of many tables representing different entities and their attributes as contained within the information system. The entities have different relationships based on a one-to-many approach. As a sequential scheme, there is a high level dependency between different entities. Each entity depends on several entities with others depending on the same entity. Many entities entirely depend on others for existence within the system. Within the website, for example, customers must create user accounts before proceeding to place orders for various products. All activities undertaken by the customer rely on the presence or absence of a user account for the customer. The database scheme presents a platform for defining different aspects of the various entities contained in the system. The diagram below represents a database scheme for the production department. Diagram 4 production database scheme A Selection of Use case diagrams covering two activities in your section Work In Progress use case diagram The work in progress represents a series of activities which are undertaken once an order has been received by the production department. Majority of these activities identified above are assigned to the employees by the production manager. The work in progress activities begin with the receiving of a customer order in the production department. The departmental head assigns the various responsibilities to different individuals working within the department. The components of the products remain an essential element in determining the work to be performed. The components being utilised are essential in determining the process to be pursued in completing the duties involved Upon completion of the process of defining the work to be undertaken, a work order is developed based on the activities involved. This is followed by the assignment of different staff members to various duties as might be required by the production manager. The manager then continues with the process of ensuring the progress remain updated within the system. The continuous updating enables customers to view the progress of their orders and know when they expect to receive their products. The updating process continues as the work continues within other sections of the production department. Following completion of the work in progress, the manager officially ends the process after receiving finished products, and ensuring they conform to the customer requirements. Shipment use case diagram The shipment process refers to the process of delivering the finished product to the customer as requested. Within the platform of the company system, the customers have been provided with different methods of determining the desired shipment system. The company shall utilise the available options as selected by the customer in delivering the finished products. The shipment schedule is normally developed following the allocation of the work in progress, by the production manager. The process is initiated following placing of an order by customers. The staff members then embark on checking the orders to determine their validity. The production manager remains in-charge of the shipment process and coordinates all activities involved within the entire process. The main role performed in the shipment process remains the development of a shipment schedule following commencement of work. The shipment schedule is primarily determined by the method selected by the customer when placing the order. The customer must provide physical address details for orders being delivered by the logistics department of the company. The process of making actual delivery occurs following inspection to ascertain the product conforms to customer requirements. These requirements are based on the specification provided when making orders. The process of undertaking actual delivery, however, is not performed by the production department. A Selection of Screen Shots of User interfaces for the above use cases showing how they are linked to the database schema Diagram 5 user work progress screenshot The work progress snapshot indicates the progress of accepted orders whose activities have begun. The production manager remains in-charge of establishing and updating the different attributes of the work in progress entity in the system. The progress of work remains dependent on several other attributes of the database schema. The most fundamental aspect affecting the work progress remains the performance of employees. The performance could affect the start and end dates of the allocated work as determined by the production manager. The work progress also depends on the order details as these determine the duties to be performed within the work. The work in progress can be viewed by the customers from the order status entity on the system. The production process is commonly monitored through the progress achieved on the work performed. The entity also directly links to the production inventory utilisation. Diagram 6 user interface for shipment The user interface for shipment provides information showing client and order ID as contained in the system. The interface follows clients request for shipment of purchased consignment as well as information regarding the staff member involved in processing the consignment. This enables the production manager to undertake periodic follow-ups as might be required from time to time. This ensures the shipment process remains within the designated shipment schedule. The entity remains mainly dependent on the customer order requests. The channel followed in establishing the shipment method depends of the customer specifications. Though not undertaken by the production department, the actual shipping depends heavily on other production entities. The aspect of shipment and work in progress remain closely related entities as they have direct influence on each other. Both entities are utilised in establishing the order status when measuring progress. The customer requirements contained in the order remain fundamental determinants of the shipment method utilised in delivering the consignments. Some clients might opt to collect their merchandise and shipment process might not be necessary on their products Discussion and Conclusions This report presents an analysis of the effects of implementation of information systems in undertaking e-business as a whole. The report identifies the successful implementation of a production sub-system, and the subsequent integration of such systems into the information systems. The application of these systems remains essential in ensuring successful improvement of different business processes. The improvement presents significant impacts upon the business and could be utilised as a method of increasing a company’s market share. The utilisation of subsystems enhances the aspect of increasing efficiency and effectiveness of the system. This occurs through the elimination of some tedious, cumbersome business processes within the supply chain. The implementation of sub-systems therefore becomes essential in overcoming business challenges resulting from ineffective business processes. The main objective behind implementation and integration of sub-systems on different departments remains increasing the efficiency of the processes. The improvement of the processes must however make consideration of the various users who will be interacting with the system. Through such consideration the requirements of different users become integrated into the different sub-systems implemented to improve business processes. The production sub-system relies heavily on inventory and the system remains fundamental in assisting the production manager to establish the required inventory. Through the system, the production manager can also make estimations regarding the time required in successfully completing a product development project. Through efficient management of resources, the system can essential assist a company into operating profitably, through minimising wastage of resources. References Connolly, T. M. & Begg, C. E. (2000) Database solutions, Addison-Wesley. Kulak, D. & Guiney, E. (2000) Use cases, ACM Press Myers, B.A. & Rosson, M.B. 1992, "Survey on user interface programming", Proceedings of the SIGCHI conference on Human factors in computing systems ACM New York, NY, USA, , pp. 195. Read More