Types of Information Systems for RTE - Case Study Example

RTE CASE ANALYSIS: INFORMATION SYSTEMS By Student’s Name Code + Course Name Professor’s Name University Cite, State Date Table of Contents Executive Summary………………………………………………………………….3 A. Introduction……………………………………..……………………………4 B. Definition, Nature and Benefits of Information Systems………………….4 C. How Information Systems Work……………………………………………5 D. Types of Information Systems for RTE’s Case……………………………..6 E. How the Systems will Affect RTE Business Operations…………………..7 F. Porter’s Five Competitive Forces Model……………………………………8 G. Information Requirement of RTE & Business Processes to be Computerized………………………………………………9 H. Importance of Information Systems In Affecting communication among RTE Stakeholder’s…………………..10 I. Management Challenges that Might Affect Organizational Changes………………………………….……11 J. Security and Ethical Issues……………………………………………...……12 Conclusion and Recommendation……………..…………………………………….13 References……………………………………….…………………………………....14 Executive Summary The purpose of this report is to examine the different informational requirement as needed by RTE in order to computerize its operations thereby improve on its production capacity. It also established the possible management challenges, security and ethical issues that relate to the implementation of the information systems. The report was requested on April 25, 2014 by the professor for purposes of applying information system theoretical aspects into real-life scenarios: RTE case. The report identifies transaction processing system, management information system and expert information system as viable information system options needed to improve on the current business operations of the entity in relation to its collaboration with different stakeholders. In the course of dealing with management challenges, it is recommended that the owner secure enough resources needed in training the existing employees on the necessity for change in order to avoid elements of resistance. A. Introduction For this report, the focus is on analyzing the information requirement of RTE in regards to the different operations conducted within the entity. The report examines the different information systems needed in computerizing the operations of the company in order to improve on their immediate productivity levels. The report also analyzes the security and ethical issues ascertained within the implementation of the information systems. B. Definition, Nature and Benefits of Information Systems Information systems is an integration of the hardware, software and telecommunication systems that assists business based activities to catapult their level of productivity and thus, help the management team make effective and efficient decisions in regards to a given situation (Romney & Steinbart, 2009). Basically, information systems refers to a given incorporation of personnel, information-based technology and also, business activities in order to attain a given business goal. Information system skilled personnel need to comprehend the activities of a given business entity before they are able to embark on designing a distinctive system. This is ascertained to the fact that every business operation, like one conducted by RTE, is unique and operates using different mechanisms for that matter. Some of the notable benefits of information system include; first, information system is utilized by entities in order to provide top-notch services with greater sense of satisfaction to customers. Second, they are used to access a wider set of information that will be used to make effective and necessary decisions (Romney & Steinbart, 2009). Third, information systems are used by business organizations in order to assist with implementing certain changes at a recommended speed in order to avoid possible delays and loss of time. Fourth, the information system is also used by businesses to increase the level of production of a given set of personnel within a given set of period (Romney & Steinbart, 2009). C. How Information Systems Work It should be worth mentioning any given system is composed of a set of interrelated components that are responsible for processing given set of inputs in order to affect outputs. Notably, all systems require certain levels of data input. For instance, bank ATM does require data related to PIN numbers in order to process a given transaction-based command (Romney & Steinbart, 2009). In respect to information systems, input data is composed of both facts and figures that form a system’s raw material component. Notwithstanding, information is raw data that has been fed and fully processed by a certain developed system. The activity of translating raw data material into useful information is conducted under a process. In order to fully work effectively and efficiently, information system deploys at least five components; hardware, software, raw data, process and people (Romney & Steinbart, 2009). Hardware, within information systems, is different forms of media platforms upon which activities related to input, processing and storage of information is executed. A good example of hardware is the physical computers and scanners within a workplace setting. Software is differentiated into two forms; system and application software (Alter, 2013). System software is used in controlling physical computers since it has an in-built operating system as well as device drivers that are responsible for communicating with the hardware section. On the other hand, application software is made up of programs that are customized to enable entities effectively execute their functionalities. Data is the raw material that is fed as input and undergoes successful processing to become useful information. Process is the set of procedures that expounds on the activities conducted by users and the management team (Alter, 2013). People, within information systems, are useful in the provision of invaluable information to management team and other users both inside and outside a business entity (Alter, 2013). D. Types of Information Systems for RTE’s Case First, the business will benefit immensely by adoption of transaction processing system (TPS). This form of information system will aid in conducting and recording routine-based transactions deemed useful for affecting positive business relations. It should be noted that transaction processing system are tasked with the responsibility of processing data that results from the happening of business based activities (The Saylor Foundation, 2013). The system is used to affect both credit and debit in a company’s ledger that will later be used in producing account statement. Second, RTE can embark on adopting the management information system (MIS). It adopts information produced from the transaction processing system and thereby generates real-time reports that will be used by management team to conduct effective planning and controlling of the business operations at any given time (The Saylor Foundation, 2013). This type of information system is deemed useful in assisting management team access brief and useful information and also, information that can be accessed and processed within a given set of period. Third, the business can utilize the expert information system. This is a program that generates a given set of decisions that are likely similar to the decisions executed by experts in given business scenarios (The Saylor Foundation, 2013). The program can imitate human thinking capacities and thereby make decisions. This is ascertained to the fact that it combines the utilization of certain levels of knowledge, facts and techniques in order to make an effective decision. It is capable of ensuring optimal levels of benefits to all personnel concerned. E. How the Systems will Affect RTE Business Operations RTE will use the transaction processing system to execute routine based tasks especially because the business has now grown into providing pre-packed meals within the CBD. The TPS can be used to access and store all of the information about the transactions that are related to RTE. These transactions include; customer based details, variety of meals and their prices, wages distributed to both part-time and permanent staff, details related to fruits and vegetables as well as raw and packaging materials (The Saylor Foundation, 2013). Furthermore, the fact that Rebecca needed an information system that could allow her spend public holidays with her family while the business was operational, TPS would be a viable option for recording routine procedural transactions. In consequence, RTE would also need a management information system in order to access information from the TPS and thereby generate reports related to overheads, invoices and calculating the business immediate financial figures (The Saylor Foundation, 2013). The MIS can also come in handy in assisting RTE in managing pricing information as well as raw materials given that there were increased varieties of these materials. Significantly, the management information system was to help with aspects related to communication with the business immediate customer base. It should be understood that with the introduction of the information system into RTE’s operations, it will allow the fulfillment of the needs of the management in regards to the acquisition of information that is relatively brief and useful as well as access and obtain the processed information for effective decision making activities (XU, 2007). Basically, the information systems will allow effective and efficient decision making process that is timely. F. Porter’s Five Competitive Forces Model The model identifies five facets that are considered to be necessary in evaluating a given business scenario in relation to the competition at hand. First, the model analyzes existing competition between given number of suppliers; The transaction processing system can be used to examine the pricing information of raw materials as well as the packaging materials deemed necessary in producing the pre-packed meals (Porter, 2008). The management information system can be used at this juncture to execute tasks related to analyzing the nature of the raw figures and thereby generate reports on the existing supplier information within the market. Second, the model analyzes the threat of new market entrants into the market. In relation to RTE, there has been a major competitor that has entered the market and it can be perceived that it has tremendously taken some of the clients within the market. The expert information system can also come in handy to establish the nature of business operations conducted by the competitor and thereafter recommend the processes from this competitor to emulate and ones to discard for efficient operations (Porter, 2008). Third, the model evaluates the bargaining power of buyers. It should be understood that for any given business, buyers are always enjoy the upper-hand since they are the sources of revenue for the entity at hand (Porter, 2008). Management information system will come in handy at this stage to generate reports regarding the prices that can be affected to the pre-packed meals in order o generate substantial profits while ensuring the quality of services and products. The expert information system can be used at this phase to distinguish whether the prices set for the pre-packed meals are affordable and competitive in nature. Fourth, the model distinguishes the immediate power of suppliers. It should be noted that the suppliers ensure that the raw materials and packaging materials for RTE are provided on time. Thus, depending on how they are treated, they can affect the operation of the business either positively or negatively for that matter (Porter, 2008). Thus, such an information system like the expert information system should be used to determine business situations in regards to these suppliers and compare how RTE treats its suppliers with the immediate competitors. This will be achieved since expert information system uses a wide myriad of database to conduct industry analysis and also, affect financial modeling that might affect the nature of supplies. Fifth, the model analyzes the possibility of threats of substitute products being availed to the market (Porter, 2008). For the case of RTE, the pre-packed meals can face the threat of development of fast food joints. For this rather unlikely scenario, the expert information system can be used to develop almost human decisions that will help the business cut down on the effects of possible competition. This can be conducted by affecting the pricing information of the pre-packed meals as well as the quality of the products and services. The decisions can be designed in a manner deemed necessary for improving and diversifying the business operations in order to self-insure against possible losses (Porter, 2008). G. Information Requirement of RTE & Business Processes to be Computerized First, Rebecca needed to open the business in the course of public holidays but not be present to run the entity. This was especially difficult because she undertook the managing task single-handedly. For this case, since the company almost had a routine clientele and supplier base, it will be necessary to computerize details regarding the transactions based on customer profiles so that the system can depict whether or not the pre-packed meal was sold to particular customers. She also needed to computerize transactions based on the supplies of fruits and vegetables in accordance to their specific details, raw materials and packaging materials for that matter. Significantly, the calculation of financial figures can also be computerized for speedy calculations as well as the generation of invoices and overhead costs incurred. A computerized system will position a control check on these activities and thus, ensure speedy information needed to make crucial decisions at any given moment in time (XU, 2007). Given that the company employed permanent staff to help the part-time workers, computerization of their working hours and payment rates will help to record accurate information in relation to their compensation packages. H. Importance of Information Systems in Affecting communication among RTE Stakeholder’s Presently, RTE possess a variety of stakeholders that include; the customers, the owner (Rebecca), the competitors, the employees (both permanent and part-timers), the suppliers and the government bodies. Communication and collaboration amongst these stakeholders can be made easier using information systems. For instance, TPS can help to provide customers with receipts for products purchased and the balances due. On the other hand, management information system can be used to generate reports necessary for filling tax returns thereby meeting the immediate tax obligations due to the government (O'Brien, 2003). It can also be used to produce invoices needed by the supplier to counter-check against their records on whether the raw materials and package materials information conform to their own. This system can also be of use to the owner to generate returns of the business within a given timeframe and thereby compute probable profits. The expert information can be used by the owner to devise strategies needed in dealing with the competitors entering the market (O'Brien, 2003). The management information system can also create a relation between the owner and the employees especially in regards to generating reports of their working hours and payment rates hence preventing possible conflicts that might arise due to inaccurate records (O'Brien, 2003). I. Management Challenges that might Affect Organizational Changes It should be understood that before the implementation of information systems, Rebecca was the sole decision maker of the company (Beasley, Bradford & Dehning, 2009). Thus, possible management challenges that might arise out of implementing the information systems rest with the incapacity to agree with decentralization of authorities so that authority generated by certain decision of the information systems are availed to relevant personnel that are expected to execute the tasks needed. Second, there might be an element of distrust given that most of the decisions will now be conducted by the information systems (Beasley, Bradford & Dehning, 2009). The organizational culture that deems human minds being most effective might not allow Rebecca to accept certain decisions formulated by the expert information system. This will likely led to a conflict of interest between the programs and the human personnel working with RTE. Consequently, the management might be forced to replace most of the tasks previously done on a manual basis to automated ones. This will likely cause an element of insufficiency amongst workers. Above all, the implementation of the information system might led to laying-off of some of the workers given that some of the tasks will now be automated. This will create a resilience attitude amongst the employees and thus, the management should ensure enough resources are availed for purposes of training the workers in the need for change and its benefits to the business operations (Beasley, Bradford & Dehning, 2009). J. Security and Ethical Issues Some of the security and ethical issues that might arise out of the implementation of the information systems include; first, there might be possible unauthorized release of business based information that relates to the RTE operations (O'Brien, 2003). Second, there might also be unauthorized copying or rather piracy of the information systems by the personnel to be used elsewhere. Third, the personnel might engage in accessing the business database in trying to compromise transactions that had already been executed. This might be conducted in order to alter records to fit personnel needs. In regards to ethics, the implementation of the information system might trigger elements of personnel invading the privacy of their co-workers in a bid to access information (O'Brien, 2003). This invasion into the privacy might result to conflicts of interest amongst workers. Conclusion and Recommendation From the above discussion, it can be noted that RTE needs information systems in order to improve on its operations and also, in a bid to promote effective communication and collaboration amongst such stakeholders as the owner, customers, government, employees and the suppliers. The company should deploy such information systems as the transaction processing system, management information system and the expert information system in order to execute tasks effectively and efficiently. However, the management should understand that in the course of implementing the information systems, such challenges as doubt, resistance from the employees as well as security and ethical issues are paramount. Thus, it should engage in securing enough resources needed in managing training functions in order to educate the workers on the importance of the impending paradigm change. References List Alter, S. (2013). “Work System Theory: Overview of Core Concepts, Extensions, and Challenges for the Future,” Journal of the Association for Information Systems,14(2),72-12. Beasley, M, Bradford, M & Dehning, B. (2009). The value impact of strategic intent on firms engaged in information systems outsourcing. International Journal of Accounting Information Systems,10 (2), 79-96. O'Brien, J A. (2003). Introduction to information systems: essentials for the e-business enterprise. McGraw-Hill, Boston, MA Polack, J.(2009). "Planning a CIS Education within a CS Framework". Journal of Computing Sciences in Colleges, 25(2), 100–106 Porter, M.E. (2008). The Five Competitive Forces That Shape Strategy, Harvard business Review. Romney, M. B & Steinbart. P, J. (2009). Accounting Information Systems. Upper Saddle River, NJ: Pearson Prentice Hall. The Saylor Foundation. (2013). Information systems in your life: Types of systems and careers. Retrieved on April 30, 2014 from http://www.saylor.org/site/textbooks/Business%20Information%20Systems.pdf XU, L. D. (2007). Enterprise information systems. Abingdon, Oxon, U.K., Taylor & Francis Read More