IS Strategy for the Business of Johnsons Plc - Essay Example

Table of Contents 1- Executive Summary Modern and efficient technology always attracts common and business people. In this decade the new information technology such as IS and IT based system have offered an exceptional influence on the diverse aspects. Additionally, the emergence of e-commerce or web based business has offered a lot of advantages to business corporations. In addition, the application and utilisation of new technology based tools and systems have offered better support for the business operational automation in addition to enhanced management. In case of traditional business practices the business managers along with administration nowadays competently comprehend the significance of technology and its potential influence for the better business and corporate support. This report is based on the specification and presentation of IS Strategy for the business of Johnsons plc. In this scenario this report will present a comprehensive analysis of some of the main aspects and areas for the application of new IT and IS technology based infrastructure for the business of Johnsons plc. This report will present and assess some of the prime areas those will be influenced by this new technology based systems application at the business of Johnsons plc. 2- Introduction The need for the new technology based systems and support is now considered very vital in every area of business. Additionally, the business management and administration has now realised that without a proper technology based systems and operational support through new technology based systems, there is no way to manage business effectively and obtain a better competitive edge for the business (Abdul-Gader, 1997) and (Laudon & Laudon, 1999). Johnsons plc manufactures and trades a range of office fixtures products, comprising chairs, desks, tables and special computer furniture. Johnsons plc was established a long time ago and now evolved to an immense business arrangement with the staff of 60 people along with sales earnings of £2.5m for the previous year. The business comprises a lot of business departments like management, sales, purchase, manufacturing, advertising, etc. In addition, all the departments are presently operational through the traditional business handling and management arrangements. In this scenario the business is facing some of the major and critical handling and operational complexities for the better business and operational management (Case Study). This report is aimed to assess the main problems, areas and also present a superior information system application approach for the enhanced business management of the business of Johnsons plc. This report will be based on the synchronized analysis of some of the main ground realities in addition to problem areas of Johnsons plc, so that we can better specify an IS Strategy for its business. 3- Business Overview Johnsons plc is a manufacturer and seller of a variety of office furniture products, including desks, chairs, tables and special computer furniture. The business was established approximately 15 years ago and now evolved to a huge business structure with a staff of 60 people and £2.5m per year revenue. The business is having variety of products range that encompass 6 product groups; those including the 86 individual product items. The business is having a variety of selling techniques those can be dealing with self-governing office equipment suppliers, making straight contact with the new office contract marketplace through architects and the building trade, directly dispatching catalogues to the business as well as commercial organizations and then placing direct publicity in the trade press and professional magazines. The business is operational by means of a centralized business management arrangement that is based on the business sales, purchase, manufacturing along with marketing department. Here the management branch is responsible for the main business decision making as well as operational management. In this scenario the business is centrally managed through the centralized business arrangement that is based on business managers. In recent times the business management has taken a wise decision of establishing a new business (Case Study). 4- Problem Areas After the detailed analysis of Johnsons plc business prime areas we have assessed that it comprises conventional performance of business handling and operational management at most of the business areas. The majority of business areas are working by means of traditional paper based or manual handling of business operations. Additionally, the Johnsons plc has retained a manual system for keeping the goods information as well as price registers of its providers. Johnsons plc purchasing department is also working through the manual methods of business handling and working. In addition, the practice of elevating purchase orders and then checking successive deliverances prior to the imbursement of suppliers is also working through the manual system that is over and over again creating problems for the business management. However, Johnsons plc present sales and order system for/from customers is based on digital database system that records the customers’ information and telesales ordering service and details through digital database system. In case of Johnsons plc business we are facing following problems: Lack of business data digitization [business is running through manual system] Complex business management formation [as it takes more time to process requests] Lack of management [means there is no proper management control over business processes] Less effective business data [more dirty data, different sources so different formats ] High complicity for searching customer records [paper based system takes more time] Lack of support for business decision [no proper data that can offer better reporting facilities ] Dirty data [lots of data formats along with errors] No integrated data layout [lack of data centralization] Long reporting time [long time need for compiling report result due to manual data] Long time required for reports analysis [higher complexity in case of manual data handling] Less effective customer management plus support. [long customer request processing time] Delayed plus time consuming order processing cycle [long time required for managing customer requests and even more if stuck at any stage] 5- New project For the better management of the business operations and dealings with the business Johnsons plc has decided to implement a new and much better business arrangement for the corporate. In this scenario this new system will combine the entire corporate operations and transactions. The new system will be based on the complete business operational management for the Johnsons plc business. This system will computerise all the business processes and operations in order to offer better business performance. This new and innovative business system will comprise standardization or consistency of whole business, all the business areas and aspects of business such as data formats, order dealing out, data storage and reporting. These all operations will be effectively administered through the new Information System that will revolutionize the present business structure of Johnsons plc and will offer more improved business support. 6- New IS Application Areas An information system (IS) is a system or process that presents the information required to run a corporation efficiently. Additionally, the IS and the information it produces are normally considered necessary element of practical and realistic business decisions. In addition, these information systems are used within corporations to allow various individuals to access and change information (Schauland, 2010), (Comptroller’s Handbook, 1995) and (Myers, 1997). In case of new information system at Johnsons plc business we will put the data into digital form for the overall business areas and aspects through the new technology based system. In this scenario the new system will digitize the overall departmental along with business operations. In case of new technology based Information System, following departments of the Johnsons plc business will be computerized: Management/Administration Department Sales Department Manufacturing Department Purchase Department Order Processing Department Marketing Department The development of new information system at the Johnsons plc business will offer much better business support in addition to working effectiveness in following business areas: Better and reliable order processing [complete data recording] Fast delivery of consumer orders [fast information transfer leads to better processing of customer orders] Customer database handling plus management [recording and managing all customer records] Sales Database Management [recording of all sales information] Purchasing management [recording and managing all purchasing records] Retailers operations management [recording and managing all Retailers operations records] Back-office information management [managing accounts, reporting and decision support] Management Decision Support [effective reporting leads to effective decisions] Finance management [recording and handling all financial records] Fast plus correct Business reporting [digital data management and quality of reports] Inventory Management [recording and automated management ] In time and well-organized customer support [digital system for online customer recording and support] HR management [HR data recording] 7- Scope of new IS The initiation of new information technology along with the information system for the business application in 1980s was planned to manage and undertake the prime and fundamental requirements of the executives, businesses and administration. Just then the establishment of the new technology based decision support and corporate management system has presented an enormous gain about the enhanced business operations management as well as tasks handling (Fragidis & Tarabanis, 2005) and (Stair & Reynolds, 2003). In case of Johnsons plc business the new technology based system is aimed to offer higher support and effectiveness for the business processes handling and management of various issues. Additionally, the implementation of new information system is intended to support all the major areas of the business for the better production, orders management and sales handling. However, the scope of this technology is to computerise all the business operations and after that reduce work load on business personnel for the business handling and as well offer superior support to business management is the form of speedy and correct business decision support. For the application of new technology based system at the Johnsons plc business we are having the following scope: The development of new digital database technology infrastructure for the business Simple User Interface Reduce Load No Paper based working Computerized order taking plus management Recording all the sales and customer information plus record Easy way of working Improved data collection and safety Simple handling and management of data Fewer conflicts between diverse data formats Simple data sharing between the entire department of Johnsons plc No dirty data Fast Business reporting along with the analysis Simple handling of all business operations Successful administration of customer necessities Connection among all the departments Better decision making through new decision support systems 8- Objectives of new technology Below are the major objectives of the new technology based system application for the Johnsons plc business: Better business order management [digital data and automated systems] Digital Data recording [automatic responding systems ] Data safety [security software ] No paper based working [digital data] Better data allocation [data recording for each business department] Backup facilities [data safety] Fast business reporting [automated system] In time as well as correct business decision making [automatic responding systems] Effectual business operational handling [automated systems] Efficient business resource deployment [automated systems] Enhanced record keeping [data recording and storage] Small or minimum time for searching the records [digital data] Quick response to business operations [digital data and automated systems] 9 -Information systems strategy for Johnsons plc business Information systems have become an essential component in any corporation with growing strategic significance. An information systems strategy combines the company’s objectives, a consideration of the information required to achieve those objectives, and the development and implementation of computer systems to offer that information. In other words, it is a planning for the implementation of systems towards some prospect idea of the function of information systems in the corporation (Allen, 1995) and (Abdul-Gader, 1997). ISS (Information systems strategies) are usually acknowledged to be very valuable and fruitful in developing and planning new business information technology and information systems (Levya et al., 1999), (Kraftner, 2006) and (Wynn, 2008). In this section of report I will present some of the prime aspects of the new technology based information system application IS Strategy for Johnsons plc business. 9.1- Method and Approach In case of new information system technology application at the Johnsons plc business we will use the structured approach regarding the substitution of old working or else legacy system through the realization of new IS technology based arrangement. Here we will replace the old operational system with a step based approach, where each corporate component will be replaced through new technology based system in a step based manner. The main aim of this approach is to keep the business continuing in spite of the new technology establishment (Whitten et al., 2000). 9.2- IT Governance In case of new technology based structure application at the business of Johnsons plc we will be have an IT governance body for the overall business handling as well as management: Business Administrator IT Manager Network In-charge System Analyst Data Entry Operators Common Working Employees 9.3- Strategic IT Governance In case of Johnsons plc business we will establish an ISS Group that will be responsible for offering assistance in managing and controlling the business strategic objectives and new technology based system application. In this way we will have the main division of the Information Systems Strategy Group given below: Senior Management New IS for Johnsons plc. Project managers New information system development staff IS Group Manager 9.4- Operational IT Management In case of new technology based system application for the Johnsons plc business we will establish a domestic developed system that will better fulfill our corporate working and operational requirements. In this scenario we will hire any system development firm that will proficiently manage the new system implementation. Below are the main activities in this scenario: Data gathering and manipulation of system requirements Team development Accomplishment of the system Business operational transformation Data transformation Business operations assessment Effective assessment of the entire working responsibilities plus operations Better management of all the reporting 9.5- IT Service Continuity & Information Security In case of new IS and IT system application at Johnsons plc we can face some issues regarding system security and continuity. Thus, in this case we will follow the security and continuity parameters given below: Network Firewall deployment Network System Safety Administration Network Database Safety Management Data Encryption Antivirus System deployment Operating System updates Staff performance assessment Staff education regarding security management 9.6- Corporate vision Johnsons plc desires to incorporate a superior information system strategy idea that could be clarified in a variety of aspects. In this scenario the basic corporate vision behind this project application is presented below: Business Staff working improvement Fast order processing Simple data handling and supervision Fast plus correct decision making In time as well as disciplined reporting Customer Satisfaction Business competitive edge 9.7- Architecture The new IS system will be business information and management system that will incorporate the business database for the management of business operations. Additionally, the new information system will be based on processing and management of business operations and various other related tasks. This system will include front end that will serve as user interface and the system back end that will be based on system database for recording as well as dealing out business data. This architecture of system will be executed on the business LAN (local area network). This local area network will interconnect all the business departments for the mutual data transmit plus information sharing. 10- IS Strategy Implementation 10.1- Activity List Below I have presented the list of activities those will be followed in the overall lifecycle of new technology based system implementation at the business: No Activities 1. Business needs analysis and Outlining main requirements 2. System working Analysis and System Design 3. System hardware specification 4. New technology system purchase 5. System Development 6. New network system design 7. Network establishment 8. Testing and quality assurance of network performance 9. New IS system deployment on network 10. Testing new system 11. Bugs Removal and fixation 12. Quality Assurance 13. Business Staff Training for new IS 14. User Feedback 15. Project Complete 11- Project Plan for Implementation 11.1- Gantt Chart Below is the project implementation plan for the new IS at the business of Johnsons plc: Project Stage Duration Start Date End Date Must Follow Business needs analysis and Outlining main requirements 20 days 09/29/10 10/26/10 System working Analysis and System Design 15 days 10/27/10 11/16/10 1 System hardware specification 20 days 11/17/10 12/14/10 2 New technology system purchase 15 days 12/15/10 01/04/11 3 System Development 18 days 01/05/11 01/28/11 4 New network system design 30 days 01/31/11 03/11/11 5 Network establishment 25 days 03/14/11 04/15/11 6 Testing and quality assurance of network performance 10 days 04/18/11 04/29/11 7 New IS system deployment on network 15 days 05/02/11 05/20/11 8 Testing new system 17 days 05/23/11 06/14/11 9 Bugs Removal and fixation 25 days 06/15/11 07/19/11 10 Quality Assurance 10 days 07/20/11 08/02/11 11 Business Staff Training for new IS 30 days 08/03/11 09/13/11 12 User Feedback 5 days 09/14/11 09/20/11 13 Project Complete 3 days 09/21/11 09/23/11 14 12- Conclusion Information system is a collection of different tools and techniques to manage organizational tasks. At present, almost all the organizations implement and use information systems to compete and survive in business world. In addition, to support these information systems in the organizations they implement information system strategies. These information systems strategies make sure the best use of their information systems. This report has offered a comprehensive analysis of some of the prime aspects of new technology based system application at the Johnsons plc business. This report has offered a comprehensive assessment of the implementation policy of new technology based system application. Here I have outlined some of the main areas along with aspects regarding new system application, its influence on corporate and possible advantages attained through establishing this system. This report has shown how the implementation of an information system will improve the capabilities of Johnsons plc. I hope this report will offer a better insight into system application plus its concerned IS strategy for the Johnsons plc business. Can you write more about conclusion? References Abdul-Gader, A.H., 1997. Information systems strategies for multinational companies in Arab Gulf countries. International Journal of Information Management, 17(1), pp.3-12. Allen, D., 1995. Information systems strategy formation in Higher Education Institutions. [Online] Available at: http://informationr.net/ir/1-1/paper3.html [Accessed 26 December 2010]. Comptroller’s Handbook, 1995. Management Information Systems. [Online] Available at: http://www.occ.gov/static/publications/handbook/mis.pdf [Accessed 29 December 2010]. Dhillon, G. & Backhose, J., 2001. Current directions in IS security research: towards socio-organizational perspectives. Information Systems Journal, 11(2), pp.127-53. Fragidis, G. & Tarabanis, K., 2005. The Business Strategy Perspective on the Development of Decision Support Systems. 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