Developing Business Information System Solutions - EquipHire Company - Case Study Example

Developing Business Information System Solutions: Case Study [Name] [Professor Name] [Course] [Date] [Words 1994] Table of Contents Table of Contents 1 Introduction 2 Description of the Business 3 Information required for effective organizational operation 4 Business Information Systems Requirements 6 Type of information systems 7 Recommended information systems 8 Conclusion 11 References 12 Introduction Modern-day business organizations are increasingly putting emphasis on information systems for effective operational management and informed decision-making (Nowdori 2011). Indeed, the potential benefits of different kinds of information systems have made organizations to develop information technology strategies that are aligned to the corporate strategies (Hemmatfar and Salehi 2010). This report examines the activities the business undertakes and where crucial decisions are made in the company. It further discusses the activities an organization requires in order to operate effectively. Further, the requirements for business information systems are also analyzed. Also examined include of business information systems that could be used to effectively meet these requirements. Apposite information systems are also recommended. Description of the Business EquipHire Company is essentially a commercial and domestic company operating an equipment hire business. A great majority of its sales are in the commercial sectors, and mainly comprise hiring out engineering, construction and building equipment. The company’s DIY sales are however the fastest growing sections of the business. The company has 78 members of staff in distributed across its 11 branches in Sydney, Newcastle and Wellington. The company however faces a range of operational hitches in the areas of inventory, building customer relationship, human resource equipment maintenance and accounting. This is since the company uses outdated system for hiring staff and for sales and marketing. Further, it operates offline on hire bookings and payments. It has also failed to accommodate complex costing for large and long-term hires since it is presently working on spreadsheets. The company’s major decisions are made at the Human Resources department, the accounting department, the supply and logistics department, the sales and marketing department, equipment maintenance and the records and inventory department. Information required for effective organizational operation Modern-day enterprises such as EquipHire are generally knowledge-based organizations where proactive information management is integral to the competitiveness and efficiency (Hemmatfar and Salehi 2010; Cale 1998). The company needs information for supply chain management to manage the movement and storage of commercial and domestic equipment from different points. The information is expected to enable strategic coordination of business operations that entail transportation of the equipments for hire in the commercial sector, such as engineering, construction and building. The information is expected to be used for planning and managing all activities that involve procurement, sourcing, logistics management and conversion. The information needed also includes that of the intermediaries, customers and third-party service providers (Hemmatfar and Salehi 2010; Olugbode, Elbeltagi, Simmons and Biss 2008). The company also needs a range of information on its customers to develop a rich understanding of the company’s customer base as well as establish whether they show a genuine interest in the company. The customer information needed include the name and contact details, to allow the company to market directly to its customers, strategize personalized communication and even contact them in case an order runs late (Shang and Seddon 2002). Based on the facts of indicated in the case, EquipHire Company faces operational problems. It therefore needs information to support its unstructured decision processes, which has to be gathered from different departments. The information is essential for seamless integration of various sources of information to improve the speed and quality of decisions made. It also needs information on its competitiveness and innovation rate (Hoyer et al 2011; Harsh 2005). The company also needs information on the human resource activity processes. This will be effective in the management of the human capital. More specifically, the pertinent information includes personnel histories, qualifications, skills and capabilities, salary and accomplishments. It also needs information on training and development of human resources on equipment hire operational processes (Cale 1998). Other information required includes personnel recruitment information, talent management, compensation planning records along with other related activities. The information will be useful for the effective recruitment, evaluation, placement, development and compensation of the workers. The company also needs information on its current stock of equipment in its warehouses by different locations throughout its 11 branches across Newcastle, Sydney and Wollongong. Specific information needed include the equipment issued, receipts, the rejected equipment, transferred equipment and rejections. EquipHire also needs information on the business’ accounting processes. These mainly include financial accounting, tax accounting and management accounting (Wiechek 2012). Financial accounting refers to the information that describes the financial obligations and resources of the company. Information on management accounting on the other hand involves financial information interpreted to assist the company’s management in operation of the business. Information on tax accounting involves the information reorganized to comply with the income tax reporting requirement. Business Information Systems Requirements To recommend the proper remedies, it is critical to establish what is wrong with the information management system of the organization. With regard to transaction processing system, the company seeks to take equipment hire bookings and payments via the internet. However, the HireIT system does not readily support online transactions. There is therefore a need for an effective information system that supports online transactions. Concerning the sales and customer relationship management (CRM), from the case study, it is clear that the successful operation of the business depends on creating linkages with the customers. On the issue of inventory, the costing for large- and long-term hires is undertaken on an impromptu basis through spreadsheets. Management of the company’s inventory of plant for hire is therefore challenging. EquipHire divisions are demanding and require than there should be a system that ensure more control over the direction of quality of equipment checking, tracking and maintenance, since it is not consistent enough to ensure good levels of ongoing repeat customer business (Shang and Seddon 2002). Concerning the issue of planning and scheduling, the company struggles to make effective decisions concerning the amount of plant it should hold in order to meet the demand for hire. The company should also be more proactive and strategic to ensure the success of business units, rather than reactive (Harsh 2005). Therefore, the company requires an information system for knowledge dissemination across the 11 branches to ensure fast and informed decision-making. Regarding decision support and management information systems, the most wanting is the significant lack of alignment between the information management and the direction and business needs of the company. The company requires an information system that provides fixed, regular scheduled reports containing data deduced from the company’s operations (Ozkan 2006). With regard to the accounts, the company lacks an effective accounting system that integrates all the financial date from the 11 divisions. This slows decision making processes. The company currently uses QuickBooks. This data later transferred manually into HireIT. Type of information systems Generally, there are several types of information systems, each having its specific functions and relevance. First, transaction processing systems (TPS) is designed to serve the individuals within the operational level of an enterprise by collecting and storing information about transactions as well as controlling certain aspects of the transaction (The Art of Service 2013). A typical example is the Accounting Information Management Systems (AIMS). Second, knowledge work system (KWS) comprises the information systems used by the technical staff to design specifications into graphical design. Office automation systems (OAS) are applicable in the knowledge level of an organization. They assist in processing organizational and personal data or perform operational processes or perform calculations. Typical examples include knowledge management systems and inventory management systems. Decision support systems (DSS) are designed to support the strategic management staff in their decision making processes. The system generates and processes information for managers to set out strategies (The Art of Service 2013). Typical examples include Human Resource Information Systems (HRIS). Management information systems are intended for use by the management level of the organization. The system condenses the transaction processing systems (TPS) data into information that can be used to monitor the organization’s performance. Executive support systems (ESS) are designed for use by the strategic level of the enterprise. It provides the top level management with readily accessible data that shows a representation of the entire organization (The Art of Service 2013). Based on the above analyses, several information systems can be recommended for EquipHire. Recommended information systems Supply chain system (SCM) refers to an information system that integrates the planning and management of all supply and logistics activities such as procurement, sourcing, management of logistics and conversion (Mahmoudyoussef.com 2011). Essentially, it is expected to integrate demand and supply of equipments for hire across the company’s 11 branches in Sydney, Newcastle and Wollongong. It is further expected to manage the movement and storage of building and constructions equipment from the company’s warehouses to the plants, where they have been hired. It will involve suppliers, retailers, final customers, and manufacturers. Human Resources Management Systems (HRIS) refers to an information system or operational processes that integrate information technology and human resource management. Basically, its functions are administrative in nature and involve processes such as selection and evaluation of employees as well as management of payroll processes. It is expected to assist EquipHire to track its current employees across its 11 branches. It is also expected to reduce the manual workload of these administrative activities by enabling the company to monitor its employee conducts and capabilities (Hemmatfar and Salehi 2010). Customer relationship management (CRM) involves a model of applying technology to determine current and future customer needs. The technology serves to organize, mechanize and synchronize marketing, sales and customer service (Mahmoudyoussef.com 2011). This system allows businesses to manage relationships with current and potential customers, business partners throughout the sales, marketing and service levels. This kind of information system is expected to find, attract and retain current and prospective customers. More specifically, it is expected to improve customer satisfaction, share customer information, increase sales and lastly, identify the most profitable clients for EquipHire. Knowledge management system (KMS) is an information system used in managing information flow in organizations. It supports the creation, capture, storage, dissemination and disposal of information (Mahmoudyoussef.com 2011). The idea of integrating KMS is to enable EquipHire employees to easily access the organization’s documented information. The system is also expected to enable the company to improve collection, organization, recording, dissemination, and retrieval of knowledge. Basically, this involves documents, practices, unrecorded procedures, accounting records, and skills. Other information systems recommended include Management information systems (MIS). This will provide fixed, constant scheduled reports based on data summarized and extracted from the company’s fundamental transaction processing systems (Ozkan 2006; Harsh 2005). The company’s operational and middle level managers can identify and inform semi-structured and structured decision problems. Decision Support Systems (DSS) will help the middle management of EquipHire to compile information from various sources to support decision making and problem solving (Mahmoudyoussef.com 2011). Materials Resource planning (MRP) is expected to help the company keep track on expenditure on materials, costing and development of bill of quantities. It will be useful in managing the materials procured and those that have been used. It also allows maintenance of existing plant and tools. Inventory Management Systems (IMS) are fundamentally Management Information Systems meant to particularly manage the inventory aspects of the business such as reorder levels, bundling and tracking. Accounting Information Management Systems (AIMS) assists in accounts administration. Typically, it includes payroll Billing for invoices to customers or clients, inventory/ Stock for effective control of its inventory, purchase order for orders inventory, sales order for recording supply of inventory for customer orders, and bookkeeping for records payment and collection among others. Conclusion EquipHire faces a range of operational hitches in the areas of inventory, building customer relationship, human resource equipment maintenance and accounting. This is since the company uses outdated system for hiring staff and for sales and marketing. The company will need to shift from outdates systems which only provide information on inventories, sales, and other data requisite in enterprise management. To ensure effective operational management, it will need to integrate a range of information systems such as human resource management, enterprise performance management (EPM), decision support systems, enterprise resource planning (ERP), project management, supply chain management (SCM) and customer relationship management (CRM). References Cale, E 1998,"Aligning Information Systems and Business Strategy: A Case Study," Journal of Information Technology Management, Vol 9 No. 1,pp.1-12 Harsh, S 2005, Management Information Systems, veiwed 18 Sept 2013, http://departments.agri.huji.ac.il/economics/gelb-manag-4.pdf Hemmatfar, M & Salehi 2010, "Competitive Advantages and Strategic Information Systems," International Journal of Business and Management, Vol. 5, No. 7, pp.158-169 Hoyer, V, Stanoevska-Slabeva, Kramer, S & Giessmann, A 2011, "What are the Business Benefits of Enterprise Mashups?" Proceedings of the 44th Hawaii International Conference on System Sciences – 2011 Mahmoudyoussef.com, 2011, Introduction to Management Information Systems, viewed 18 Sept 2013, http://www.mahmoudyoussef.com/aagsb/mba/mis/Lectures-2-and-3-Questions.pdf Nowduri, S 2011,"Management information systems and business decision making: review, analysis, and recommendations," Journal of Management and Marketing Research, pp.1-8 Olugbode, M, Elbeltagi, I, Simmons, M & Biss, T 2008, “The Effect of Information Systems on Firm Performance and Profitability Using a Case-Study Approach,” The Electronic Journal Information Systems Evaluation, Vol. 11 Iss. 1,pp. 11-16, Ozkan, S 2006, “A Process Capability Approach to Information Systems Effectiveness Evaluation,” The Electronic Journal of Information Systems Evaluation, Vol. 9, Iss. 1, pp 7-14 Shang, S & Seddon, P 2002, "Assessing and managing the benefits of enterprise systems: the business manager’s perspective," Information Systems Journal, Vol. 12, pp.271–299 The Art of Service 2013, The Six Types of Information Systems and their Functions, viewed 18 Sept 2013, http://theartofservice.com/the-six-types-of-information-systems-and-their-functions.html Wiechek, L 2012, "Effectiveness Of Information Systems Implementation The Case Of The Polish Small And Medium Enterprises," Management Knowledge and Learning, pp.193-201 Read More