Information System for BMW - Case Study Example

Business Information System Written Assignment Introduction Businesses have been seen to use technology to not only solve an existing problem but to also create opportunities for growth. Information systems help a business in the various areas to enhance efficiency and provide for information that can be used to make important decisions at the operational as well as the executive level of management. According to Lucey (2004, p.172) there are many types and levels of decisions that are made in an organization depending on how that decision affects the organization. An information system provides the managers at the various levels with the kind of information they need to make the business decisions, at the right time and place. Information system for BMW According to the case, it is clear that the firm needs to use an enterprise resource planning system to manage its operations. In acquiring a business system, the business can acquire a system for each of the functions that it has, or it can acquire an information system that cuts across all the functions of the business. An enterprise resource planning system is a system that is designed to centrally manage all the process of the business. In other word, information is shared across all the departments in the organization. This is achieved by installing a system that incorporates all the functions of the business. If a business acquires this kind of a system, it means that all data from all its departments is centrally collected and managed which makes it easier for each department to collaborate more easily and also eliminates redundancies in functions. BMW will need an enterprise system that incorporates the following; Customer relationship management system (CRM system) A customer relationship system is crucial to make sure that customers are managed properly. According to Gravely (2003, p.12), customer relationship management is a process of finding, identifying, acquiring and maintaining the most dependable customers for the business. In a modern business environment, customer management is important, and the CRM will help BMW in a number of ways. First, it will make it easier to maintain a close relationship with customers. Given the kind of products that the firm is selling, it is clear that its customers are long time customers who are going to remain using the products of the firm for a long time. Being able to have a close business as well as a personal relationship with the customers will be of importance to BMW in the long run and the CRM will help in this. The sales department will benefit from the CRM and the sales staff will be able to interact better with customers, both current and potential customers. A CRM will also help in getting and processing feedback from customers. Getting feedback from customers is extremely crucial and it helps in increasing customer satisfactions as well as provides valuable information from customers can be utilized in the design process to design a product that better suits the requirements and desires of the customers. The CRM will also be able to help BMW sales staff to manage the sales process. This is because in selling goods which cost a lot, the process of convincing the customer to buy is always a long one. A well designed CRM will help the firm to be able to easily manage this process and probably help in increasing productivity in the sales department. CRM will also help in increasing customer satisfaction by improving the way the business interacts with its customers (Donaldson and OToole, 2007, p.35). According to Kevin, Hackney, and Edgar, (2009, p.248), today’s operating environment is decidedly ambiguous and this changes the rules of success as new entrants can join an industry and beat the existing industry players. Information about the market is extremely hard to predict, and it will need a well designed information system to analyze the market data and be a step ahead of other players. According to Dyche (2002, p35), any business needs to have a streamlines manner in which it interacts with its customers in order to get the right data to the proper consumer at the right time, and CRM system can be used to achieve this. CRM cam also be used to not only retain customers but also to acquire new customers, and cane b used to minimize the cost of getting new customers which is usually five times higher than the cost of retaining existing customers (Information Resources Management Association, 2006, p.706). A human resource management system According to the case, it is abundantly evident that BMW will need software in the human resource department. A good and well designed system is able to monitor processes and also monitor tasks and who did what. By having a HR module in the ERP, the HR department will be able to conquer the problems it is having. A well designed system will also aid in the staffing process because it can be used to point out into human resource gaps which need to be filled. The HR module will be celebrated in making sure that the work unites are well managed and that there is no human resource is being wasted. Inventory management Being a manufacturing firm, BMW will undoubtedly need an inventory management system to make sure that materials, work in progress as well as finished products are well managed. The manufacturing process is extremely valuable, and it has a number of impacts on a number of functions such as making sure that there are inefficiencies I the way the inventory is managed. An inventory system can be used to manage the lead time for both incoming (raw materials) and outgoing (finished products) levels. This will help BMW to create a smooth production process without having to keep the machinery idle for some time just because the materials did not arrive in good time. It can also help in managing bottlenecks in the outgoing finished products to avoid holding too much or too little products. Supply chain management is becoming a paramount concern for many businesses because business executives in boardrooms have realized that quality management is tightly coupled with the supply management (Kalakota and Robinson, 2001, p.273). Computer aided design Given the nature of the products that BMW is producing, computer aided system can be extremely useful in making sure that the firm will increase its quality as well as efficiency in serving developing creative products. CAD software is available for almost any kind of manufacturing ant it can be used in creating new products unusually fast. BMW must include at least on CAD system in the CRM to ensure that it is competitive in the design and production of new exciting designs. Computer aided designs increases and expands a firm’s manufacturing potential and therefore may lead to a need to analyze the market against to include the new opportunities that provided by the new system (Storey, 1994, p.100). At the same time, as Gershon (2008, p.285) says, CAD helps in simulating a new design in three dimensions before it is manufactured and this improves quality and efficiency. BMW can use this tool to increase customer satisfaction by simulating customized boat designs before manufacturing them. Knowledge management system In today’s business environment, it has become necessary for businesses to be able to manage the knowledge they own, unfortunately, for a firm like BMW, most of its knowledge is contained in the heads of it employees. When these employees, the firm losses its knowledge and has to start from squire one. A knowledge management system will help in ensuring that the business does not lose its knowledge even when an employee leaves BMW for one reason or the other. It will also help in managing the expertise of the available employees and help in making sure that the right person is give the right job in accordance to their knowledge and expertise. Better still, a knowledge management system will help in managing the apprentice programs and make it even more successful. Avoiding technology hype Technology offers a lot of opportunities and at the same time a lot of risks, and it is necessary for mangers to be able to separate hype from opportunity in order to benefit from technology (Fenn, 2008, p.65). In this regard, managers need to understand technology hype and be able to avoid the hype while at taking advantage of the advantages that the technology provides (Broadbent, 2005, p.73). One of the biggest challenges that any firm it the world faces with regard to acquiring technology and especially information technology is differentiating technology hype from useful technology. Technology hype is the difference between the useful technology that a firm can use to advance its strategy and the more optimistic and less practical promises of technology. It is not all technology that is useful to a given firm at the end of the day. For this reason, it is increasingly urgent that BMW be careful in choosing technology that suits its strategy instead of choosing a technology and then trying to align its strategy to the new technology. This is because an information system, such as an ERP is supposed to support the management processes, as opposed to the management processes having to bend to the needs of the system (Ndubisi and Chi, 2005, p.24). Tips for success There are various factors that affect how successful an information system is going to be for a firm. Among these factors is the top management commitment to the implementation process of the system (Sadagopan, 2004, p.51). Selecting an ERP can be an exceedingly tedious takes even for the most successful firms in the world, especially to the high risks involved in the process (Khan, 2005, p.12). For instance, according to Mehdi (2001, p.570), over 90 percent of ERP implementations projects either go beyond time and money budgets or they are a complete failure. BMW should be careful in making sure that it follows the steps in buying a new system for its business. Suggestion for a business information system SAP ERP is one of the most common enterprise systems that many businesses have bought and tied to use to manage the functions in the business, if well implemented and well managed, the system can help any business to be able to overcome a number of operational challenges. The system is well designed and has been tested by number businesses around the world, including multinationals. BMW can use it to be able to improve efficiencies in its operations. Acquiring SAP will give BMW a number of advantages. One of the advantages the system will give the business is the ability to manage the firms data in a centralized manner than making the firm to be seamless across all its departments. Management information systems are designed around the concept of data driven business. A closer look at any business reveals that business is information moving from one point to the other. For instance, BMW’s operations are done around informational and data. This includes customer information, product information, marketing information, market information. Supplier and customer information All the information within all departments in a department is geared toward achieving the goals of the firm. The bottom line is that this information in each department is paramount to all the other departments and the more easily the departments share the information, the easier it is for BMW to be streamlined and efficient. SAP will help in achieving this kind of information sharing because all information ca n be stored in a central repository and be shared across the firm. This will help in managing the discrepancies that have been occurring between the various departments. At the same time, acquiring SAP will offer BMW a chance to have a system that highly scalable. Scalability refers to the expandability of the system at a later date in order to accommodate any growth that may be available. This means that if BMW acquires SAP, it will be able to have software that will grow along the firm and therefore be able to meet future needs of the firm as the firm grows. SAP system will offer BMW a number of advantages. However, it is increasingly critical to note that it requires to be properly implemented to guarantee any positive impacts. In acquiring SAP, it will be necessary to understand that the software has various pros and cons. Some of the disadvantages that the BMW may require to be mindful of the fact that sap is not a customized system because it was developed as a generic system to meet the generic needs of a business. As a result, in acquiring SAP, it is good to know that the system the system will not offer services that are fully customized to the requirements of BMW. BMW will therefore have to make sure that the installed system meets its needs as much as possible by making sure that the system will not have been bought in vain. Conclusion A closer look at BMW indicates that the main challenge that the firm is facing is lack of a centralized way to manage the various functions of the firm. BMW has not been able to have a data driven management process and this has led the firm being divided into different compartments. In this regard, the best way is to use an information system to centralize the functions of the firm and make sure that the firm avoids inefficiencies. Using an ERP will help the firm to overcome its inefficiencies and also increase its ability to meet customer needs and increase customer satisfaction. Reference List: Broadbent, M. (2005). The new CIO leader: setting the agenda and delivering results. Boston, MA: Harvard Business Press. Conference, I. R. (2006). Emerging Trends and Challenges in Information Technology Management: 2006 Information Resources Management Association International Conference, Washington, DC, USA, May 21-24, 2006, Volume 1. Boston, MS: Idea Group Inc. Donaldson, B. and OToole, A. (2007). Strategic Market Relationships: From Strategy to Implementation. New York, NY: John Wiley & Sons. Dyche, J. (2002). The CRM Handbook: A Business Guide to Customer Relationship Management. Boston: Addison-Wesley Professional. Fenn, J. A. (2008). Mastering The Hype Cycle: How To Choose The Right Innovation At The Right Time. Boston, MA: Harvard Business Press. Gershon, R. (2008). Telecommunications and Business Strategy. 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