Current IS and Future Technologies at GLM - Report Example

Table of Contents Executive Summary 3 Introduction 3 Review of the Current IS and Future Technologies at GLM 4 The Current GLM’s IS 4 Future Technologies 4 GLM Structure 6 GLM Business Model 7 GLM Culture 7 Suggestions for Improvement 8 Cloud Computing: Software as a Service (SaaS) 8 ERP Microsoft Dynamics AX 9 Surado CRM Software 9 Risk Analysis 10 Outline of Additional Costs 12 Recommendation 12 Conclusion 12 Appendix 1 16 Executive Summary This strategic information technology systems reports seeks to provide a comprehensive analysis of three important technologies that may improve the business operation and performance at Greens Line Mouldings (hereafter GLM) in the future. In analyzing the technologies, the report emphasizes on the opportunities and benefits of these technology for the organization for the next five years ending 2017. Furthermore, the report also includes a risk analysis for GLM’s adoption of the technologies, as well as a general risk assessment that incorporates a risk limitation plan. Lastly, the report offers a summary recommendation for technology adoption by GLM in future, including a costs outline of such an undertaking. The analysis of the impact of adopting future technology enables the company to identify technologies that prove beneficial (Palvia, 2003:161). The implementation of such technologies is integral to the sustainability and growth of GLM. Introduction The report has several parts that comprehensively analyze the adoption and benefits of new technology in the company as far as information systems and information management (IS and IM respectively) improvements are concerned (Ward and Joe, 2002:74). The first part reviews the present status of the IS and IM at GLM, and the impact of adoption of future technologies to the organization’s business culture, model, and structure in the next five years. The second part analyzes a set of suggested technologies that may successfully improve the IS and IM at the company after the previous implementation of BCCD while adhering to a specified period. The third part analyzes the risks involved in adopting such technologies, as well as proposing a risk limitation plan that could possibly reduce or avoid the negative consequences. The last part provides a set of recommendation to the organization with a clear outline on financial costs. This report highly recommends that GLM implement these proposals in order to achieve cost saving, improve the workplace environment, meet the demands of current and potential customers, and remain competitive in their market. Review of the Current IS and Future Technologies at GLM The Current GLM’s IS The current IS at GLM has potential for improvement. Drawing upon the pre-workshop document on the company’s IS system, the implementation, and use of information systems is less than ideal. This report provides an overview of the areas presently with IS in the organization in appendix 1 (Travis, 2004:94). From a consultant’s point of view, there is need for improvement on these areas, as discussed later in the report. Future Technologies Technology in the modern world is an integral asset to organization. This is evident from the increasing number of organization and individuals embracing technology in the global market. It has thus become imperative for organizations to adopt technology in order to compete and expand effectively in the market. In this regard therefore, the objective by GLM to expand into the global market must go in hand with adoption of current technology, which will enable it to meet the needs of its current customers as well as attract technology-enthusiastic customers. Thus, GLM needs to leverage this knowledge and subsequently enhance the work processes and communication channels. To achieve this, this report analyzes the technologies that may prove beneficial to the business culture, business model, and structure of GLM as an organization. Among the most significant technologies, include cloud computing, customer relationship management software (CRM), and Enterprise Resource Planning (ERP). Other relevant future technologies include mobile technologies and radio-frequency identification. These technologies serve different categorical purposes. Cloud computing will improve the communication channels, customer relationship management will improve the customer relations, and enterprise resource planning will significantly influence the production and business processes at the organization (Lederer and Sethi, 2001:45237). Below is an outline of the advantages and disadvantages of each of the technology. Advantages Disadvantages Cloud Computing Multi-tenancy. Reliability. Location and device independence. Cost reduction. Privacy. Compliance. CRM Improved product development. Customer attention. Decision support. Improved planning and profitability. Decrease in overall costs. Complexity. Poor usability. Fragmentation. ERP Sales forecasting and inventory optimization. Order and revenue tracking. Protect sensitive data. Enhance standard coding and product naming. Transparency and legitimacy. Lacks customization. Extensive training. Radio-frequency identification Efficiency. Time saving. Data flooding. Security. Table 1: Advantages and disadvantages GLM Structure Organizational structure in GLM is fully functional. Employees in the organization fall under functionality groups depending on their areas of specialization. In the warehouse department for instance, Raynor Bow acts as the Warehouse manager, Isla white as the Dispatch Officer, David Copper as the Head warehouse man, Steve Green as the Fleet Manager. All departments have managers who are responsible for overseeing the operation and performance of the entire department. The departments further disintegrate into smaller working units with a manager with subordinates who work to support the daily routine and operations of the company. Cloud computing and mobile technologies may significantly improve the efficiency and reliability of the communication channels within the organization. Mobile technologies, cloud computing, and customer relationship management relate to communication, both multimedia and voice, over internet communication networks. The adoption of these technologies will not have any significant impact on the organizational structure of GLM, as the primary function of the technologies is to improve communication and interaction in the organizational context. Therefore, the functional divisions and responsibility will remain much the same (Lederer and Sethi, 2002:452). Currently, the communication channels in the company are unstructured, with eminent retention of information by the top management of departments. On the other hand, enterprise resource planning will enhance the integration of other important business functions such as project management, human resource, supply chain management, data services, access control, manufacturing, accounting, and supply chain management. The ERP system will significantly influence the work process of the organization, as its operation depends on the integration of certain departments. Adoption of the ERP system will enhance the company’s ability to forecast and track orders and revenue, thus improving the strategies and decisions of the company, reduce expenses and save time. In addition, the centralization of business information will reduce the effect of fragmentation of the CRM, thus synchronizing the entire business process (Ward and Joe, 2002:74). GLM Business Model The business model of an organization essentially refers to its motivation to deliver and create value. The future technologies will have significant impacts on the business model of GLM. For instance, cloud computing will enhance the independence of devices and their location, which is a very important aspect in the nature of business that GLM undertakes. In addition, the use of cloud computing and integration with customer relationship management concepts will significantly improve the communication within the departments of the company as well as with existing and potential customers. ERP will affect the business model in that there will be more concern over certain aspects of the business. This includes the need for close relationships between departments in order to achieve efficient and fast decision-making. Furthermore, implementation of an ERP system will promote the smooth flow of business processes, from accounting to manufacturing. GLM Culture Analyzing the business culture, it is evident that the organization depends on repeat purchases from its base of loyal customers. Another important aspect for consideration is that the Greens family runs the business, thus it boasts of a loyal workforce. Thus, most communication channels are informal and unstructured. Implementation of future technologies will affect the business culture in the company in the various ways, including transforming the information system from unstructured and informal to relatively well structured and formal, and integration and merging of departments in the organization (Lederer and Sethi, 2002:452). Suggestions for Improvement Cloud Computing: Software as a Service (SaaS) The changes imposed by future technological changes may be significantly disruptive, and may result in unforeseen implications. However, cloud computing is a universally trusted and proven services as providing access to application functionality without the need to install or own them. The technology requires limited or no additional staff for operation. The organization’s data is securely stored in the “cloud”, and the end users access the application functions they require without much IT burden. Adoption of the SaaS technology in the organization will show some of dynamics in business processes. The SaaS with cloud computing essentially means that information is not stranded in fixed location on machines. Rather, all information combines to form one digital cloud available to many other devices in the organization. In line with the dependency on repeat purchases of GLM, the technology will prove very effective in terms of minimizing errors and improving quality of service, as these are the foundation of the SaaS business model (Earl, 2001:26). The technology will also significantly improve the security of information and data of the company. ERP Microsoft Dynamics AX Microsoft Dynamics AX enhances the management of an organization. This technology will significantly improve and supports complex business hierarchies as well as customization that ultimately reflect the business structure. In addition, the technology enhances sharing of data in a more secure and easier way. End users may share data within departments, including data and master transactions, and reference information (Compiere). Another interesting feature of the technology is the provision of communication between organizations and other outside organizations, which essentially means that GLM will be capable of communicating with suppliers and consumers more directly. Surado CRM Software Surado CRM is among the strongest and most innovative CRM products that may benefit GLM by establishing long-term, profitable relationships with its clients, as well as enhancing the company’s ability to execute plans on target and on time. Strategically position Surado CRM software in the organization may further create a loyal customer and supplier base. Surado CRM incorporates powerful and functional features in an easy to use and implement format, including options for customization and fast integration of third-party applications. This means that GLM does not necessarily need to implement complex and expensive standard integration to enhance compatibility with hardware and other applications. In essence, the Surado CRM software will enable GLM to build a loyal customer base, reduce costs, and increase sales by seamlessly coordinating customer service, sales, back-office integration, and marketing. Risk Analysis In implementing the future technologies, there are four associated classes of risks. These include staffing, technical, legal, and external issues. Those risks with a score of 8 or higher need instant address and implementation of remedies. Cloud computing: SaaS ERP Microsoft Dynamics AX Surado CRM Software Outline of Additional Costs Implementation of the future technologies will ultimately impose some additional costs to GLM. The annual estimate for the implementation and operation of eth technologies is. The operational and products costs for cloud computing technology are relatively cheap, as the technology does not additional staff and extensive hardware for implementation. This report perceives the stated cost as justifiable as far as the merits and benefits of the technologies are concerned (McNamara). Recommendation This report recommends the adoption of Microsoft Dynamics Ax, Customer Relationship management software, and SaaS with cloud computing by GLM. This is because the technologies with improve the communication of the organization with departments and customers, increased productivity by analyzing production and business processes, provide business opportunities through the direct communication with the customers, and significantly reduce errors (Brown, 2004:31). In addition, the technologies will enhance efficiency and effectiveness of the products from the company as well as achieve cost cutting and downsizing. Conclusion This report outlines three future technologies that may significantly improve the operations at GLM. The report emphasizes on cloud computing with software as a service, Microsoft Dynamic Ax ERP, and Surado CRM software. The report explicitly recommends the adoption of these three technologies that will significantly improve production, enhance service delivery, create a loyal customer base, and improve internal and external communication. Such benefits the organizations in terms of cost saving and increased revenues. Each of the proposed technologies, however, has associated risks and benefits. The report briefly outlines the risks, advantages, and disadvantages, providing remedies to counter the risks. Furthermore, the report summarily outlines the additional costs that may result from implementation of these technologies, including hardware and operational, which totals to about  per year (Egan). This amount far outweighs the benefits that GLM will realize from implementation of the technologies, thus it is acceptable and cost effective. The report concludes by strongly recommendation the implementation of suggested implementation proposals. Bibliography Anonymous. The Global Language of Business (2011) ‘FAQs’. Available at: http://www.gs1.org/aboutepc/faqs [Accessed April 26, 2012] Brown, I., 2004. Testing and extending theory in Strategic information systems planning through literature analysis, Information Resources Management Journal, 17 (4): 20-48. Checkland, P. & Scholes, J. 2001. Soft Systems Methodology in Action, John Wiley & Sons Ltd, Chichester. Compiere, 2011. ‘Open Source ERP Software Solutions’. Available at: http://www.compiere.com/erp.php [Accessed April 26, 2012] Earl, M. J. 2001. Experiences in strategic information systems planning, MIS Quarterly, 17 (1): 1-24. Egan, D. 2005. Advanced System Problem Solving Lecture Notes. 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D. Galliers & D. E. Leidner (Eds.), Strategic Information Management – Challenges and Strategies in Managing Information Systems: pp. 151-180, London: Butterworth-Heinemann. Travis, J. 2004. An action research investigation of Information Systems Planning in the context of small business, Unpublished doctoral dissertation, Curtin University of Technology, Perth. Ward, J. and Joe, P., 2002. ‘Strategic Planning for Information Systems’ (3rd edition). New Jersey: Wiley Series. Appendix 1 Read More