Current Issues for Strategic Information Systems - Report Example

Current Issues for Strategic Information Systems Report Table of Contents Executive Summary Strategic information systems play a significant role in the business development because they allow the business organizations to change their strategies according to changing business environment. In addition, in order to gain a competitive edge the use of strategies information systems has become essential for the organizations. In fact, the strategic information system allows an organization to quickly respond to a change in its business environment. Thus, in the absence of a strategic information system an organization cannot imagine the proper working, superior performance and greater credibility. This report discusses some of the current issues for strategic information systems in the context of a specific organization. For this report, I have chosen Greens Lime Mouldings (GLM) business. This report will present an overview of their strategic information system, its operational performance and possible issues regarding better corporate support and will also specify an improved IS/IM based strategy for business management. 1. Introduction A Strategic Information System (SIS) is an information system that allows the organizations to alter or otherwise update their business structure and/or strategy. Basically, the strategic information systems are aimed at streamlining and increasing the response time to varying or changing environmental aspects and helping it in gaining a competitive edge over other business organizations. In this scenario, some of the important elements of a strategic information system can be: (Bhatia, 2007) Decision support systems that help business organizations build a strategic technique to bring into line Information Technologies (IT) or Information Systems (IS) with a company’s business strategy First and foremost enterprise resource planning systems that put together/connect the business operations in an attempt to achieve the organization’s goals for the optimization of the enterprise resources Database management systems having full capabilities and an excellent support of data mining to make the best use of existing organizational information for business production, marketing, innovation and promotion. In addition, the strategic information systems also allow the business organizations to establish and implement the data collection policies to support the database in optimizing marketing opportunities. Finally, synchronized information systems that are aimed at maintaining a quick response and the quality indicators. The basic purpose of implementing an SIS is to gain a competitive edge over other business organization through its participation to the organization’s tactical objectives and offering a capability to considerably improve the efficiency and performance of an organization. In addition, many researchers believe that an SIS helps business organizations gain a competitive edge and to help very much at the cost of those that cause to undergo competitive drawback (Hemmatfar et al., 2010; Rogerson & Fidler, 1994). This report discusses the use of strategic information systems in the context of a specific organization ‘Greens Lime Mouldings (GLM)’ that is a manufacturing company which produces a wide variety of small plastic products. In addition, they produce both their own standard range of plastic products which they supply to retailers, and limited production of plastic items designed on the basis of a customer’s specification. At the present, the organization desires to improve its business structure in order to improve the business performance and efficiency. In this scenario their basic goal is to implement a strategic information and management system. Raynor Bow has recently joined the management team to run the warehouse and has introduced a warehouse system resulting in greater competence in this side of the business. Business Managing Director Bob Green desires to invest more in GLM for the foreseeable future of business. They have therefore recently appointed a new Managing Director to take over fully in the next 18 months. He wants to review the IS policy which is currently non-existent and review the overall use of IT in the company. In this scenario, this report will assess some of the possible aspects and issues of technology based systems at Greens Lime Mouldings (GLM) business. This report will also suggest the new technology based systems support for the business and implementation of a business management system for the performance improvement. 2. Scene Setting Greens Lime Mouldings (GLM) business is a customer-led, a nationwide plastics production company specializing in both bespoke and standard products. The company will continue to produce its high quality plastic goods for a range of uses, investing in innovative design opportunities while supplying a buoyant local and national market with their competitively priced goods. Thus, keeping these aims in mind the business has decided to improve the overall working performance, operational capabilities and customer support. However, its current information systems are not so efficient in managing the business working and operations. Thus, to identify the deficiencies in existing business structure and information systems, Greens Lime Mouldings business management has performed a review of overall corporate operations and processes. The result of this review was not satisfactory. I have outlined below some of the important aspects that need to be improved through IS/IM based tools and techniques: 2.1- Central Business Technology Support Greens Lime Mouldings business is currently not having a central business management arrangement that can better manage the business operations. There is no central business management technology that can offer a great deal of support for business communication, information management and operational support. 2.2- Online Support The website of Greens Lime Mouldings business is not dynamic. In addition, the web site does not offer a great deal of support for the business operations. 2.3- Technical Support Findings from BCCD also show that Greens Lime Mouldings business staff and corporate technology management staff lacks IT skills that is one of the biggest challenges for the business management. 2.4- IS/IT The current infrastructure of the organization makes very limited use of IT. In fact, computers are scattered all through the organization but are not linked in any way even when software packages could be linked quite easily. 2.5- Order Processing and Stock Management Findings from BCCD also show that Greens Lime Mouldings business also lacks suitable order processing and its management and it is also not linked with dispatch. In addition, there is no stock control system for handling factory supplies. 2.6- Customer Support Presently Greens Lime Mouldings business lacks web based support for the online ordering as well as the external communication is poor. There is a non interactive web site i.e. just a homepage. It has significant impact on business performance and operational management. 2.7- Automated Process and planning and Decision Support The organization does not have an automated process planning as well as suitable systems for the automated corporate decision support. It affects the decision making process for the business. 2.8- Business Management system All the business management systems are working through stand alone systems. In view of the fact that these systems are not well maintained thus they do not offer an excellent support for business operations and working areas. These systems also lack a great deal of operational and performance management. In addition, these systems do not offer support for regular updates and patches. The overall performance of the firm is compromised due to flaws in the following systems: Accounts management system Stock control system Catalogue production Factory and warehouse work schedules systems Customer relations management systems Customer support Warehouse management system Supply chain management system Decision support systems 3. Important areas of technology for GLM’s future business needs In this section I will present some of the important aspects regarding technology based systems specification to GLM business. This section outlines three main technology based structures to better manage the business operation of GLM Company: 3.1- Web based Customer Support system At the present, the use of the Internet to manage business operations has become essential. In this scenario, the majority of business organizations are using the Internet to perform e-commerce related tasks. Basically, e-commerce is the process of carrying out business transactions using digital channels of communication (Laudon & Laudon, 1999). Appendix A contains an example of the web based customer support system. Thus, I am going to recommend a web based customer support system for Greens Lime Mouldings business. This system will incorporate a wide variety of innovative tools and applications for managing customers’ issues and requirements. Our web based system will offer a great deal of corporate information on the web. This will work as a complete web based system for Greens Lime Mouldings business. The next main module for this web based support system will be an order management system. Here this online order management system will be used to maintain and save the records of orders. Greens Lime Mouldings business will also have a web based customer relationship management center where a 24x7 support staff will be available for dealing with customers’ queries and complaints. Online web based system of Greens Lime Mouldings business will also serve as a web based marketing engine for the business, where we will be able to promote new products and distribute information regarding business. 3.2- Supply Chain Management System Supply chain management integrates the supplier, distributor, and customer logistics requirements into single reliable way. Basically, the supply chain is a set of an organization’s physical departments such as supply centers, manufacturing plants, transportation, retail outlets, personnel, and information, which are connected throughout processes for example procurement or logistics, to distribute goods or services from source through usage (Laudon & Laudon, 1999, p. 55). Appendix B contains an example of the Supply Chain Management System. For Greens Lime Mouldings business we will also suggest the implementation of a supply chain management system. This system will better manage the overall stock levels inside the organization and also handle the overall operational aspects of the business. In this scenario, we will be able to manage the products of Greens Lime Mouldings business from production to customer usage. This system will also oversee the warehouse products and stock services. In this way the overall performance of the organization will be improved. 3.3- Decision Support System A decision support system (DSS) is an application of an information system that facilitates the users with decision-oriented information when a decision-making situation occurs. Basically, a decision-support system facilitates the management in the decision making process by integrating information, appropriate logical models and techniques, and user-friendly interface in the form of a single powerful system that supports unstructured or semi structured decision making (Whitten et al., 2000; Turban et al., 2004). Appendix C contains an example of the decision support system. Thus, we also recommend the implementation of a decision support system for Greens Lime Mouldings business. This new decision support system will offer a great deal of support for corporate decision making. The application of this system will potentially improve the data quality and will offer an excellent support in the form of on-time and quality decision for the better management support. 4. Benefits and Opportunities of the technologies Greens Lime Mouldings business wants to improve their overall business performance and credibility. In this scenario the intended system for the Greens Lime Mouldings business will offer an excellent support for the business. I have outlined below the details of three suggested systems for Greens Lime Mouldings business with respect to their benefits for the firm. 4.1- Web based Customer Support system The suggested web based customer support system will offer following advantages to Greens Lime Mouldings business: Online access to corporate information Online support for business 24x7 business services availability Customer management Fast order processing Free business marketing Open access to all business resources Fast availability of business information Easy tracking of customer order Easy management of business requests 4.2- Supply Chain Management System The suggested supply chain management system for business warehouse and product management will offer following advantages to business: Warehouse management Simple handling of business deals Recording each transaction Managing products on the racks Handling each aspect of the business product development cycle Processing of orders from the development to consumption Stock control Raw material management Product development cycle management Less information duplication regarding order processing Communication among all departments 4.3- Decision Support System The suggested decision support system will offer following advantages to business: On-time decision support Quality decision making Business management decision making support Effective management of possible business issues Operational handling of business deals Improved data quality No dirty data Simple management of business operations 5. Risk Management A risk is anything which can affect the project results. The process of managing these risks is known as risk management (Gray & Larson, 2006). In the implementation of a new technology based system for GLM business the fundamental risk can be about the time and cost. If the development time increases the entire investment might waste. This can also affect the allocated cost of the project. There is another significant risk that is related to the technology. To deal with this risk, we need to choose the most suitable technology support while keeping in mind the organization’s interest. We will need to conduct a detailed market research for the selection of most excellent technology based system application. Risk Probability (1-5) Severity (1-5) Score (P x S) Actions taken to Prevent/Manage Risk HR issues Lacking skills 4 1 4 Recruiting staff with high quality skills and effected collaborative skills Technical Mismatch among new information system and hardware 3 2 3 Designing system in a great deal of enhanced way and offering better system working compatibility Political Political issues among staff and management regarding application of new technology based system 2 2 2 Need to take into confidence the whole project teams and staff for the application of new technology based system Resource Lack of resources in case of new technology based system development 1 1 1 New to plan the project in a more enhanced way to offer a great deal of support regarding better and enhanced handling and management of project planning and resource allocation process. 5.1- Optional Risk Limitation Plan Project risk management and application of effective risk management plan is one of the essential requirements for any project. Since this is a large size project thus we need for effective project planning and handling through application of effective risk assessment and management plan. For the effective risk management plan, project manager should pay serious attention to this risk management and spend sufficient time on this activity. In this scenario, the project manager should be conscious of bad outcomes when the project plan is out of date, none-existent, partial or badly constructed. To map for a project is to place the bases for project work by describing the jobs to be required, the resources, timeframe, staffing, communication, and costs concerned in completing these jobs (Field & Keller, 2007; Gray & Larson, 2006). 6. Technology Recommendations For the implementation of new systems at the Greens Lime Mouldings Corporation we need a total budget of $75000. In this scenario, we will require $25000 for each project application and its successful implement for enhanced business performance. This overall budget will also include new technology based system development and human resource as well as hardware system for running new technology based systems. 7. Conclusion Strategic information systems play a significant role in the business development because they allow the business organizations to change their strategies according to changing business environment. In addition, in order to gain a competitive edge the use of strategies information systems has become essential for the organizations. A Strategic Information System (SIS) is an information system that allows the organizations to alter or otherwise update their business structure and/or strategy. Basically, the strategic information systems are aimed at streamlining and increasing the response time to varying or changing environmental aspects and helping it in gaining a competitive edge over other business organizations. The basic purpose of implementing an SIS is to gain a competitive edge over other business organization through its participation to the organization’s tactical objectives and offering a capability to considerably improve the efficiency and performance of an organization. In addition, many researchers believe that an SIS helps business organizations gain competitive edge and to help very much at the cost of those that cause to undergo competitive drawback. This report has presented a detailed analysis of some of the important aspects of new technology based systems implementation at Greens Lime Mouldings business. In this scenario, this report has assessed technology based issues and aspects regarding better IS systems application for the business. In this report I have also recommended a new technology based systems for better managing the business operations. 8. Bibliography And References Bhatia, A., 2007. Strategic Information System. [Online] Available at: http://it.toolbox.com/wiki/index.php/Strategic_Information_System [Accessed 01 April 2012]. Field, M. & Keller, L., 2007. Project Management. Thomson Learning. Gray, C. & Larson, E., 2006. Project Management, The Managerial Process. 3rd ed. New York: McGraw-Hill. Hemmatfar, M., Salehi, M. & Bayat, M., 2010. Competitive Advantages and Strategic Information Systems. International Journal of Business and Management, 5(7), pp.158-69. Laudon, K.C. & Laudon, J.P., 1999. Management Information Systems, Sixth Edition. New Jersey: Prentice Hall. Rogerson, S. & Fidler, C., 1994. Strategic Information Systems Planning: Its Adoption and Use. Information Management & Computer Security journal, 12(3), pp.12-17. Turban, E., Aronson, J.E. & Liang, T.-P., 2004. Decision Support Systems and Intelligent Systems, 7th Edition. London: Prentice Hall. Turban, E., Leidner, D., McLean, E. & Wetherbe, J., 2005. Information Technology for Management: Transforming Organizations in the Digital Economy. New York: Wiley. Whitten, J.L., Bentley, L.D. & Dittman, K.C., 2000. Systems Analysis and Design Methods 5th Edition. New York: Irwin/McGraw-Hill. Appendix A Figure 1Web based Customer Support System, Image Source: http://reach1to1.com/solutions-2/customer_support_tracking_system/ Appendix B Figure 2Example of a SUpply Chain System, Image Source: http://www.eil.utoronto.ca/pictures/iscm.gif Appendix C Figure 3Decision Support System, Image Source: http://upload.wikimedia.org/wikipedia/commons/thumb/7/74/Decision_Support_System_for_John_Day_Reservoir.jpg/360px-Decision_Support_System_for_John_Day_Reservoir.jpg Read More