Franchising Business Model - Research Paper Example

Decision Support Systems: Franchising Business Model Submitted by: [Client’s Name] Submitted to: [Professor’s Name] [Subject] [Date] In the world where data and information plays an important role in the daily lives of many people; where competition is ruled by how data and information is shared between and among users; where a split-second delay in obtaining the information could spell huge profit losses for companies, the availability of the data to the end-users, the importance of the integrity of the data, and the tools with which the users interact with to obtain these data and information play a major role in the picture. Importance of Data and Information In today’s modern business environment, the ability of any business organizations to gather, synthesize, and use data and information pertaining to various business processes determines the success of the business. Data ranging from various raw materials components to data on consumer activity during certain months may be irrelevant unless placed on the right context. Business organizations, particularly those that aim to grow and prosper at exponential rates, have to be able to place data and information in the same context as their strategic goals and development plans in order to achieve success in information-sensitive business arena (Aurum & Wohlin, 2003). It is mainly from this strong drive to succeed that Information Systems (IS) and enterprise resource planning (ERP) – software programs that manage data and information in organizations – were created. Choosing the right IS and ERP for a backbone requires understanding of a variety of factors (Borovits et al, 1990). If the system developer fails to grasp the full extent of the function of the IS and ERP in the organization, there is a high likelihood that any efforts would be in vain. In the case of Regional Variations Group, the Decision Support System was created in accordance to its needs which involve mainly of the integration of operations, accounting, inventory and sorting of customer-related information. Any further development and system integration to the existing IS and/or ERP framework requires that the organization’s needs for the system is explored and understood from a deeper context. This report explores the business-related principles behind IS, ERP, and customer relationship management (CRM) software packages and apply it to Mr. Broccoli’s need to capture data and information in his franchising business. Background on Information Management All type of business transactions contain information that may or may not be useful to the organization. Seemingly unrelated and irrelevant information such as price sensitivity of the consumers, the increase in the demand for specific products or services, the monthly sales information, and related data which businesses gather on a periodic basis are typically treated with less care or concern until actual need arises. Prior the digital age, these data and information are placed in archive vaults to be used later when the needed (Jessup & Valacich, 2008). More often than not, the effort required to sift through the stacks and boxes of paper makes it tedious and expensive for organizations that such researchers were never performed at all. With the recent developments in Information Technology business organizations can easily gather, sort, manage, and distribute data and information to virtually any terminal, given the right access levels. Data and information are digitally processed and analyzed which significantly reduce the amount of time needed to turn seemingly irrelevant data and information from day-to-day transactions of the business into very useful ones. In other words, management of data and information is done by a computer software program that enables businesses to see any information they want derived from their own system, given that such information exist and is within the capability of the system to provide. It further implies that even with the capabilities of information systems such as ERP and CRM, a limitation exist which depends highly on two factors – (1) the understanding of the business of its internal processes and (2) the skills or capabilities of the systems developer to translate these requirements into program codes. It is important for Regional Variations Group to be aware of these limitations before commissioning IS and IT platforms. Information Systems Information system is the combination of technology and algorithms that helps organizations save cost, cut errors, and increase efficiency and productivity. This is because information systems in general address particular needs of organizations ranging from inventory management to accounting functions to trend analysis and sales projections (Schwalbe, 2002). Information systems aid in the decision-making process by giving decision-makers the right information at the right time (Aurum & Wohlin, 2003). This system can be programmed to show the most pertinent data and information from a variety of data and information stored in it and performs internal analysis based on the pre-set parameters. Information Technology (IT) and Information Systems (IS) as they are do not offer any strategic advantage to organizations. This is because anyone can avail IT and IS platforms from various sources. Rather, they enable organizations to tap their potentials to grow as long as business organizations are able to perform complete integration of technology and business strategy (Marchand et al, 2000). With IS, IT, ERP, and CRM integrated in the business process, architectural planning, relationship building, informed buying, technical progress, business systems thinking, vendor monitoring and development, inventory management, and customer relationship automation and standardization are achieved. The potential benefits in integrating the IS and IT platforms in business organizations have been very well documented. In a case study of integrating geographical information systems (GIS) in Ataturk airport in Istanbul, Turkey, it was found out that GIS aided in the efficient development and productivity and establishment of proposed changes and modifications to the existing methods (Kavzoglu et al, 2006). A similar result is noted in a case study on Indian manufacturing industry where it was found out that integration of a Computer-based Information System (CBIS) allows managers of manufacturing firms to make accurate and reliable operational decisions (Dharni et al, 2009). In the same manner, it was found out that IT and IS platforms increases efficiency, productivity and accuracy of the reports generated by public accounting firms (Banker et al, 2002). As Regional Variations Group is able to successfully integrate Decision Support System into its business processes, it needs to be able to understand the full extent of its IS capability. What does it want? What are the expected deliverables of the company from its IS framework? What data would it need to keep? What data should be kept for future reference? Can the existing Decision Support System (DSS) stand alone? Or would it need additional software and hardware interfacing in order to optimize its capabilities? In other words, Regional Variations Group must take full advantage of the features and capabilities of its existing DSS in order to optimize its strategic advantages. But how can the company do this? Generally speaking, there are five ways Regional Variations Group can do to optimize the capability of its DSS. These are (a) integrate technical skills with (b) business skills, (c) increase interpersonal skills of individuals and departments that interact through the system, (d) define and balance time horizons which refers to the short-term versus the long-term interests of the organization, and (e) develop motivating values in its workforce to optimize the use of the DSS (Peppard & Ward, 2004). In order to achieve this, the company has to develop three core capabilities which include Information Technology Practice (ITP), Information Management Practice (IMP), and Information Behavior and Values (IBV) (Marchand et al, 2000). More importantly, the company has to define the enterprise resource planning platform it needs where the DSS can be integrated and operated at optimum performance. Enterprise Resource Planning Enterprise resource planning platform is the mother of all software and hardware platforms that will be used in the business. Some of the most common ERP platforms used are IBM, Microsoft, and Lawson. IBM’s Business Intelligence Software connects people with information in an easy-to-use way so they can make better decisions. It set targets, see results and understand what drives the numbers; Identify trends that may be benefits or threats; take action with a common context for decision-making across every department; Identify and analyze opportunities and trends. Provide the capabilities and information you need to make better decisions. Use reports, analysis, dashboards and scorecards to monitor business performance, analyze trends and measure results. A service-oriented architecture makes it easy to deploy and manage. It builds reports, OLAP cubes, and dash-boards and scorecards using all data sources; proven scalability to hundreds of thousands of users and modular deployment lets you meet immediate user needs and expand or modify as needed (Luhn, 1958). On the other hand, Microsoft business intelligence is delivered through a trusted and familiar environment that solves the business needs of organizations of all sizes around the world. Powered by the flexibility and horsepower of Microsoft SQL Server and delivered through the trusted and familiar 2007 Microsoft Office system, Microsoft business intelligence solutions work together to provide value to all users across the organization. Running on the campaign slogan, “simpler is better”, Lawson Software offers ERP solutions that focus on the clients’ industries in order to provide their clients competitive advantages and flexibilities that they could expect in high-performance business automations. Lawson has made a reputation for itself as the company provides customized ERP software programs to their client companies’ performances which help their clients identify the various constraints of the process and thus progress in the endeavors they make in their respective industries. Lawson provides a wide range of ERP products that can address to the wide variety of needs of organizations including business process management, compliance control management, enterprise asset and financial management, and supply chain management to name a few (Lawson, 2010). By choosing the platform that suits the needs and information requirements of the organization, which does not necessarily mean the most popular platform in the market or the most expensive, Regional Variations Group can be able to optimize the system to its full advantage. It can even require highly customized integration between the ERP platform and the customer related management (CRM) platform it intends to attach to its franchise network to manage and handle customer data and information. But first, it is required that the company should be able to define the functions and purposes of a CRM and its deliverables. Customer Relationship Management In the simplest sense, a CRM is a very specific form of ERP, focusing only on the managing customer data and information as opposed to the broader coverage of ERP. The need for Regional Variations Group to handle various aspects of customer information is apparent since it plans to pursue and aggressive expansion of franchises and knowing the target and captured markets would enable the organization to create decisions that could be very helpful to the strategic growth of the business in the long run. Moreover, CRM platforms can do a lot of things aside from storing and managing data and information. These types of platforms can create patterns that could aid in the decision making process of the organization. But then again, CRM platforms depend on the two limitations identified earlier. In order for Regional Variations Group to handle customer information and develop a suitable CRM platform that would cater its needs, it has to – (a) identify key issues and concerns, (b) identify which ERP platform suits best for its data needs and demands, (c) understand how the ERP platform can help address the issues by testing the reliability and integrity of the platform, (c) design monitoring systems that would enable the company to keep track of its customers and employees, and (d) design back-up and security plans to prevent unauthorized entry to the system. Although the discussion made it appear as if the whole method is simple, the level of preparation required to develop, implement, and successfully integrate the IS platform into the business process can be difficult and daunting. Conclusion The discussion highlighted the fact that having an IS /IT/ERP/CRM framework does not actually count as strategic advantage. The strategic advantage that can be derived from owning this type of system can only be achieved if the business is able to understand its needs and translate this understanding into programmable system. The good thing is Regional Variations Group is able to understand about its needs which are apparent in its commissioning of the Decision Support System. The not-so-good thing about it is the company is yet to optimize the capability of its existing system to include a wide variety of functions like customer information management (CRM). While the whole process may sound daunting, it actually is not particularly since the organization has shown that it is able to understand its need and has made ways to fill areas where it lacks the most. With a good ERP and a supplementary DSS, Regional Variations Group can open avenues for growth and development through the aid of IS platforms, just like any other companies did. References Aurum, A. & Wohlin, C. (2003).The Fundamental Nature of Requirements Engineering Activities as a Decision-Making Process. Information and Software Technology. 45:. 945 -954 Banker, R., Chang, H. & Kao, Y. (2002). Impact of Information Tehnology on Public Accounting Firm Productivity. Journal of Information System. 16(2). 209-222. Borovits, I., Ellis, S. & Yeheskel, O. (1990). Group Processes and the Development of Information Systems. Information and Management. 19: 65-72. Dharni, K., Sharma, R. & Kiran, R. (2009). Information Systems in the Indian Manufacturing Sector: Extent of Use and Support for Managerial Roles. International Journal of Business Information System. 4(6); 673 -687. Jessup, L. & Valacich, J. (2008). Information Systems Today (3rd ed.). Pearson Publishing. Kavzoglu, T., Yilmaz, E., & Selsi, A. (2006). A Case Study for an Airport Information System. Goensenanza. 11(1): 29-38 Lawson Software. (2010). Homepage. Retrieved online from http://www.lawson.com/wcw.nsf/pub/applications_index   Luhn, H. (1958). "A Business Intelligence System" (PDF). IBM Journal. Retrieved online from http://www.research.ibm.com/journal/rd/024/ibmrd0204H.pdf. Marchand, D., Kettinger, W., & Rollins, J. (2000). Information Orientation: People, Technology, and the Bottom Line. Sloan Management Review, Summer 2000, 69 – 80 Peppard, J. & Ward, J. (2004). Beyond strategic information systems: towards an IS capability. Journal of Strategic Information Systems, 13: 167–194 Schwalbe, K. (2002). Information Technology Project Management. 2nd ed. Canada: Thomson Learning Read More

In other words, management of data and information is done by a computer software program that enables businesses to see any information they want derived from their own system, given that such information exist and is within the capability of the system to provide. It further implies that even with the capabilities of information systems such as ERP and CRM, a limitation exist which depends highly on two factors – (1) the understanding of the business of its internal processes and (2) the skills or capabilities of the systems developer to translate these requirements into program codes.

It is important for Regional Variations Group to be aware of these limitations before commissioning IS and IT platforms. Information Systems Information system is the combination of technology and algorithms that helps organizations save cost, cut errors, and increase efficiency and productivity. This is because information systems in general address particular needs of organizations ranging from inventory management to accounting functions to trend analysis and sales projections (Schwalbe, 2002).

Information systems aid in the decision-making process by giving decision-makers the right information at the right time (Aurum & Wohlin, 2003). This system can be programmed to show the most pertinent data and information from a variety of data and information stored in it and performs internal analysis based on the pre-set parameters. Information Technology (IT) and Information Systems (IS) as they are do not offer any strategic advantage to organizations. This is because anyone can avail IT and IS platforms from various sources.

Rather, they enable organizations to tap their potentials to grow as long as business organizations are able to perform complete integration of technology and business strategy (Marchand et al, 2000). With IS, IT, ERP, and CRM integrated in the business process, architectural planning, relationship building, informed buying, technical progress, business systems thinking, vendor monitoring and development, inventory management, and customer relationship automation and standardization are achieved.

The potential benefits in integrating the IS and IT platforms in business organizations have been very well documented. In a case study of integrating geographical information systems (GIS) in Ataturk airport in Istanbul, Turkey, it was found out that GIS aided in the efficient development and productivity and establishment of proposed changes and modifications to the existing methods (Kavzoglu et al, 2006). A similar result is noted in a case study on Indian manufacturing industry where it was found out that integration of a Computer-based Information System (CBIS) allows managers of manufacturing firms to make accurate and reliable operational decisions (Dharni et al, 2009).

In the same manner, it was found out that IT and IS platforms increases efficiency, productivity and accuracy of the reports generated by public accounting firms (Banker et al, 2002). As Regional Variations Group is able to successfully integrate Decision Support System into its business processes, it needs to be able to understand the full extent of its IS capability. What does it want? What are the expected deliverables of the company from its IS framework? What data would it need to keep?

What data should be kept for future reference? Can the existing Decision Support System (DSS) stand alone? Or would it need additional software and hardware interfacing in order to optimize its capabilities? In other words, Regional Variations Group must take full advantage of the features and capabilities of its existing DSS in order to optimize its strategic advantages. But how can the company do this? Generally speaking, there are five ways Regional Variations Group can do to optimize the capability of its DSS.

These are (a) integrate technical skills with (b) business skills, (c) increase interpersonal skills of individuals and departments that interact through the system, (d) define and balance time horizons which refers to the short-term versus the long-term interests of the organization, and (e) develop motivating values in its workforce to optimize the use of the DSS (Peppard & Ward, 2004).

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