Development of Business Information Systems in Snappy Happy Catering Ltd - Essay Example

Task Information System An Information System (IS) is an organised combination of resources of people, hardware, software, communications network, data, policies and procedures that stores, retrieves, transforms and disseminates information in an organisation (O'Brien & Marakas, 2007). These resources are used to perform input, processing, output and control activities that would convert data resources into information products and functions to the organisation. Examples of IS that are widely used nowadays includes supply chain management (SCM) systems, customer relations management (CRM) systems and geographical information systems (GIS). SCM systems support all sequence of activities involved in producing a product or service from purchasing, manufacturing, assembly, distribution, shipping and billing. CRM systems help manage an organisation's relationships with its customers which includes maintaining customer records as well as analysing and detecting buying patterns and preferences of individual customers. GIS application accesses a database that contains data about a neighbourhood, city, state, country or even the entire world and ties them to physical locations represented in a map. (Oz, 2006) The major components of IS are data, people, hardware, software, networks and procedures. Data are the input the system takes to produce information which includes stored data and knowledge bases. People are the IS professionals and end-users who analyse organisational information needs, design and construct information systems, write computer programs, operate the hardware, and maintain the software. Hardware includes the computer and its peripheral equipments such as input, output, and storage devices, as well as data communication equipments. Software is sets of instructions or programs that tell the computer how to take data in, how to process it, how to display information, and how to store data and information. Networks are telecommunications media and network support involving hardware and software that facilitates transmission and reception of text, pictures, sound, and animation in the form of electronic data. Lastly, procedures are rules for achieving optimal and secure operations in data processing that include priorities in dispensing software applications and security measures. In today's highly competitive world where knowledge is power, information system has become a major functional area of an organisation together with finance, operations, marketing and human resources management. Information system is a major source of information and support needed to promote effective decision-making of managers. It is a major contributor to operational efficiency, employee productivity, morale, customer service and satisfaction. It is a vital ingredient in developing competitive products and services that creates a strategic advantage to the organisation. In today's networked world, information system is a key component of resources, infrastructure and capabilities. In summary, IS has become a strategic tool to grow the business; to compete in the market; and improve their position in the industry. (Iansiti & Favaloro, 2006) Task 2 Snappy Happy Catering Ltd Snappy Happy Catering Ltd may explore a supply chain management system and a human resource information system in order to improve operational efficiency and to meet their business objectives. In order to identify the suitable information systems for the company, the management team must organize several meetings aimed at selection of the systems. Typically, every round table discussions must have an agenda based on the steps provided and be attended by all department heads. There are three steps in the selection and management process. First step involves planning, identifying and justifying IS. Information systems are enablers of business processes, their planning must be aligned with the overall business plan of the organisation and the specific decisions or tasks they support. It must be justified through cost-benefit analysis, ROI and other financial analysis. Second step is the creation of an IS architecture. The architecture is a plan for organising the infrastructure and applications of an information systems project which includes the information and data required, application modules needed, and the specific hardware and software involved. Third step is selecting a development option either by building the system in-house; or have a vendor build a custom-made system; or buy an existing application; or lease a standard software from a provider. (Turban, Aronson, Liang, & Sharda, 2007) The recommended systems have its benefits and limitations. Supply chain management system can help support and manage the links between the company's key business processes and those of its suppliers and customers (Chandra & Kumar, 2000). SCM system in Snappy Happy Catering Ltd can manage perishable goods through inventory management subsystem. A procurement subsystem can help in ordering food supply from different suppliers. A distribution subsystem can identify and organise food and equipment delivery services at the least cost possible. A transaction processing subsystem can produce invoicing, purchasing and ordering on-line when integrated in the Internet. And most of all, various reports can be generated by the system that would help management in their decisions. (Oz, 2006) The Human Resource Information System (HRIS) is a vital tool in managing increasingly complex transactional requirements between the organisation and the people running it. HRIS can assist managers in improving the efficiency of the employees by reducing costs; enhance the reliability of reporting; and improving services to employees (Huselid, 1995). It can help organise staffs on a temporary basis, create staffing payment, and enhance staff communications. (Torrington, Hall, & Taylor, 2008) However, SCM and HRIS systems are very costly when it is fully integrated in the different functions of the company. They are also dependent on the functionality, reliability and quality of the software that manages the whole system. Trainings of personnel are required in order to exploit its full potential and benefits. (O'Brien & Marakas, 2007) Other risks would include downtime caused by unavailability of data, system crashes, natural disasters or blackouts. The company may lose some business transactions when data are not available in the course of conducting business. When the company implements the automated system, system crashes can disrupt the functions of the organisation and important data may be lost. Natural disasters and blackouts can also contribute to the disruption since computers and other hardware run with electricity. Security is also a limitation in implementing information systems. Malicious hacking and server attacks can disrupt the business and create data losses as well as financial damages. Information theft and identity theft can happen in a networked system where information is available in the whole organisation and on-line. Alteration or destruction of data may occur when security is not tight in the network. Task 3 Snappy Happy Catering Ltd The IS architecture requires technology infrastructures such as hardware and software. The hardware required by Snappy Happy Catering Ltd would include intelligent personal computers that will be used by managers and employees. All this computers will be networked and managed by a centralised server. Other hardware required would be network peripherals and telecommunications equipments that would be needed for Internet access. The software required by the company would include application software and operating system software. The application software would include service specific programs for the SCM and HRIS applications such as Oracle E-Business Suite; and general purpose application programs such as web browsers, word processing, spreadsheets and database managers, i.e Microsoft Office Suites. The operating systems manage and support operations of computer systems and networks such as Microsoft Windows for PC and Linux Red Hat for network systems. The SCM system creates crucial reports to help managers in their decision making. These reports would include inventory level, order quantity, staff requirements, sales, sales trend and forecasts, activity costs, and other financial reports. The HRIS system creates payroll reports, employee skills and information, availability and other relevant information about the workers. Integrating both systems would create human resource plans and allocations, operational plan, performance evaluation, and productivity or profitability reports. Several legislations govern the use of information systems and the nature of the business itself. These include privacy laws for customers and employees and intellectual property laws. With regards to privacy laws, it is the obligation of the company to protect information about the customers and employees that they have collected. The company cannot disseminate nor sell such information to other parties without the consent of the person concerned. Violations of such laws can lead to lawsuits. As for intellectual property laws, when the company decides to buy packaged application software, they are bound to the license of using such software for their own use. They cannot alter, make copies nor distribute such licensed software. The licensing is also limited only to a number of computers to be used. As an example, an MS Office Suite under an enterprise license can be installed only on limited computers. In order for the company to utilise more computers, it must acquire another license. Violations and breach of the license can lead to lawsuits and withdrawal of licensing agreement. In order to comply with legislation, the company must be able to communicate such laws to the whole organisations and make all employees aware of the impact it would cause for violations of the laws. The company should also create an organisational policy for protection of privacy as well as acknowledging of software licenses. Training on business ethics and professionalism may be conducted to enhance the knowledge of each individuals. Task 3 Snappy Happy Catering Ltd External and internal threats may put the information system and the company at risk. Security measures must be addressed in order to prevent such threats. These include data entry controls, back-ups, access controls, atomic transactions and audit trails. Data entry controls secures the system from every possible misuse or abuse and resist inappropriate usage such as incorrect data entry or processing. The program includes code that produces a prompt message if a user either errs or tries to circumvent a process. (Oz, 2006) Back-ups protect against losses of data by automatically duplicating all data periodically. The back-up data may be stored off-site so that if the business site is damaged by natural or man-made disasters, the remote storage will be spared. Access controls, on the other hand, are measures taken to ensure that only those who are authorized have access to a computer or network or to certain applications or data (Oz, 2006). The most common way to control access is through the combination of a user ID and a password. Users are encouraged to change their passwords frequently so that others do not have time to figure them out. In an efficient IS, a user enters data only once, and the data is recorded in different files for different purposes, according to the system's programmed instructions. An atomic transaction is a set of indivisible transactions that are either all executed or none are-never only some (Oz, 2006). Using atomic transactions ensures that only full entry occurs in all the appropriate files. An audit trail is a series of documented facts that help detect who recorded which transactions, at what time, and under whose approval. Whenever an employee records a transaction, such a system prompts the employee to provide certain information: an invoice number, account number, salesperson ID number, and the like. Sometimes an audit trail is automatically created using data, such as the date and time of a transaction or the name or password of the user. (Oz, 2006) When the information system is implemented in the whole organisation, job roles will be affected. Individuals and groups may resist changes that may occur due to the implementation of the new automated IS. This resistance can be overcome through education, coercion, persuasion and participation. Education involves formal training of end-users. Coercion can be done through department policies. Participation is made possible by creating commitment from concerned employees. (Turban, Aronson, Liang, & Sharda, 2007) Some factors inherent in the design of the new system may also create resistance. These factors may include an unclear and puzzling human interface that would make the end-users too long to familiarize with. This can be overcome through formal training of end-user, an improved and user-friendly system interface. User participation on the design would be very helpful to improve the system. (Torrington, Hall, & Taylor, 2008) Some users may resist the system if they believe that the system would threaten their existing status and work authority. This can be subdued through identification and resolution of organizational blocks before the system is introduced and implemented; and making compliance more attractive. Empowering users and promoting user participation would be essential to the success of the system. (Torrington, Hall, & Taylor, 2008) References Chandra, C., & Kumar, S. (2000). Supply Chain Management in Theory and Practice: A Passing Fad or a Fundamental Change. Industrial Management & Data Systems , 100 (3), 100-114. Huselid, M. (1995). The impact of human resource management practices on turnover, productivity and corporate financial performance. Academy of Management Journal , 38 (3), 635-672. Iansiti, M., & Favaloro, G. (2006). Enterprise IT Capabilities and Business Performance. Keystone Strategy, Inc. O'Brien, J., & Marakas, G. (2007). Introduction to Information Systems. Boston: McGraw-Hill. Oz, E. (2006). Management Information Systems (5th ed.). Florence, KY: Course Technology. Torrington, D., Hall, L., & Taylor, S. (2008). Human Resource Management. Essex: Pearson Education Ltd. Turban, E., Aronson, J., Liang, T., & Sharda, R. (2007). Decision Support and Business Intelligence Systems (8th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Read More