Adoption of Information Systems for Small and Medium Businesses - Example

Adoption of Information Systems for Small and Medium Businesses Assignment 2 COIS20024—Systems Management Overview Term: Prepared and Submitted by: Tutor: Due date: Date Submitted: Executive summary This report is intended to analyse the case study on “Law for you”, a start up law firm based in Sydney. The firm is growing at a rapid pace and is intending to expand into Newcastle, and other centres. Among other things, this report intends to analyse the challenges facing LFU in relation to information technology and how best the firm can utilize information technology to expand and improve service delivery to its clients. From the analysis of the case study, it is clear that tie current manual model of running the system is unsustainable in the long run as clients service is greatly affected by the slow pace of doing things at the company. If the company is to expand, the manual system is not sustainable. The company therefore needs to seriously consider implementing an IT system to automate its operations, create a data base accessible from the different sites and connection between the different offices. All the same, issues such as privacy, security and ethics are critical in the process of instituting information technology and thus need prudent handling so that negative outcomes associated with them are not experienced. Table of Contents Executive summary 2 1Introduction 4 2Information system and its importance to LFU 5 3Business Problems faced by LFU 6 3.1Poor customer service 6 3.2Poor Data Storage 6 3.3Managing Current Workforce 7 3.4Streamlining Clients Database 7 3.5Time consuming 7 4Key business requirements of LFU and business processes to be computerized 7 4.1Managing current workforce 8 4.2Streamlining the client database 8 4.3Reducing time wastage 8 4.4Efficient data storage 9 4.5Improved customer service 9 5Type of information systems to help LFU to manage its business issues 9 5.1Management information system (MIS) 9 5.2Transaction processing system 10 5.3Knowledge Management Systems 10 5.4Marketing information systems 11 5.5Human resource information systems (HRIS) 11 6Types of information system to manage LFU in business decision making 11 6.1Management Information System 11 6.2A transaction processing system 12 6.3Decision Support Systems 12 6.4Expert Systems 12 7How LFU’s new offices can be connected effectively using information technology 13 8Security issues that may emerge 14 9Privacy and ethical issues involved 15 10Expected change and how it can be managed 15 11Summary and Recommendations 16 1 Introduction The aim of this report is to offer a professional analysis and opinion as to how information technology can be used to enhance the productivity of LFU law firm as it seeks to expand and upgrade from manual systems to computerized operation system. To achieve this, the report will critically highlight the problems facing LFU as it seeks to serve it clients. The report will also define information systems and identify how information systems can be used to solve operational problems affecting LFU. In so doing the report will seek to understand how information systems can improve decision making, enhance communication between departments and improve service delivery. In addition, the report will address possible drawbacks to the idea of implementing information technology at LFU and how they can be successfully avoided. LFU is a start up law firm offering a unique model of doing business by charging a standard price for its services. It has grown rapidly and is considering expansion from Sydney into other areas such as Newcastle. The manager who doubles up as the owner believes service quality is very important and thus has reservations on whether expansion is a good idea and more so, whether information technology will create more problems or solutions. All these concerns are addressed in this report under appropriate subheadings. 2 Information system and its importance to LFU According to Rainer & Cegielski (2010), information system is an intergrated set componets used for collecting, processing and storing data as well as delivering knowledge, information, and digital products. Organizations and business firms rely on information system to manage and carry out their operations, interact with theirr suppliers and customers, as well as compete in the market place. Moreover, information system can be defined as a combination of software, hardware, trained personnel and infrastructure organised to facilitate planning, coordination, control, and decision making in a company[Rai10]. By implementing various types of information system, LFU will be to undertake is operations effeciently in the future . to start with, By using a management information system (MIS), LFU will be able generate accurate, timely and organized information about its clients. Currently, the law firm is processing its information manually and this has resulted to wastage of valuable time in locating and managing clients’ files. MIS will enable LFU will be to efficiently manage its client’s information and locate it quickly. Moreover, Belinda who is the founder of LFU is concerned about sharing client information across its branches, and managing the movement of client files from one site to another but by using MIS, the law firm will be able to share client information safely and make it easy to move client files. On the other hand, knowledge management systems help to create information as well as share information [Deh11]. this will help the staff of various branches to create new knowledge and expertise which can be shared by other staff in the law firm to come up with further commercial opportunities for pursue. In 2011, LFU started to handle conveyance transactions require a lot of standard communication to be sent to buyers and sellers and therefore, for the law firm to hand large volume of conveyancing transactions it should use a transaction processing system which will capture and process large data generated during the law firm’s day-to-day transactions and process payments. Therefore, by implementing information system, LFU will be able carry its operations efficiently and reduce its operational cost. 3 Business Problems faced by LFU The problems that LFU is facing are as a result of using manual system to manage its organization especially now that they want to increase their current clientele. These problems are as discussed below: 3.1 Poor customer service The manual based system of maintaining files has led to LFU giving poor customer services especially due to the inconvenience that comes with using this system. Sometimes clients have to wait for long before the staff locate their files and even wait for longer time for the staff to locate the information once they find those files. Sometimes the files are misplaced by the staff and hence cannot have access to the information that they need. 3.2 Poor Data Storage LFU stores their client’s data in files. This data can be sometimes misplaced due to human error or in the event that the offices are broken into, data on clients could be stolen. LFU staff spends lots of time looking for particular files and sometimes they cannot locate the files which reappear after a few days causing embarrassment in front of the clients. 3.3 Managing Current Workforce LFU manually manages the payroll, staff leave times and timesheets at their Sydney location. Considering that they use a manual system, it is going to be very difficult to manage the movement of the workforce to different locations. Belinda is already having difficulty in maintaining files for their 10 employees and it is therefore going to be more difficult managing files for all employees in different location. . 3.4 Streamlining Clients Database Considering that LFU uses paper-based filing system to manage the files of its clients it is going to be very difficult to transfer theses files from one location to another. Belinda is concerned about sharing client’s files online due to security issues. 3.5 Time consuming The manual based form of keeping records that LFU is using is time consuming. The workforce uses a lot of time locating the client’s files and even more time is spent looking for information in those files once located. 4 Key business requirements of LFU and business processes to be computerized Information technology can be used as a competitive tool since it enables massive amounts of data to be processed quickly and at the same time an organization can be innovative enough to automate some of its service for better service delivery and employee productivity, contends King (2009) 4.1 Managing current workforce LFU is having problems maintaining the current workforce as they rely on paper-based record keeping for their staff. There is need to computerize the payroll which will make it easy for Belinda to streamline the salaries expenses for all the employees in all locations. There is also need for LFU to computerized staff leave times and times sheet. This will also make it easier for Belinda to manage the workforce even when the number of staff is increased 4.2 Streamlining the client database LFU uses a manual system to maintain its client’s files. This process should be computerized so that it will be possible to streamline the client’s files in one database. Streamlining the clients data base will ensure that the clients’ information can easily be shared from one location to another conveniently. 4.3 Reducing time wastage A lot of time is wasted in locating files and information for the clients. Lots of time is also wasted in keeping records for the workforce manually. So as to solve this problem, LFU should computerize the process of keeping records which will reduce the time used to locate clients and workforce files as it will only require then to type in the clients name and search for the information needed. 4.4 Efficient data storage Storage of clients’ data is of great importance for any organization since it enables easier access and manipulation to achieve desired output [Kin09]. The mode of storage that LFU is using is inconvenient. Sometimes they have to deal with the embarrassment of misplaced files in front of their customers. LFU should therefore computerize their data storage process which will ensure that all data is well stored and backed-up in the system to avoid such inconveniences that could cost them their clientele. 4.5 Improved customer service This is a business requirement for all organization. The manual system of imputing and processing customer information has been ineffective in that at times the staffs have to keep customers waiting for long to locate their files and at times, they cannot locate their clients’ files. There is therefore need to computerize the data entry process as well as data processing which will improve the customer service delivery by LFU. 5 Type of information systems to help LFU to manage its business issues 5.1 Management information system (MIS) MIS is concerned with internal sources of information, it takes data from transactions processing system and summaries it into a series of management reports[Kah11]. LFU stores their client’s data in files. This data can be sometimes misplaced due to human error or in the event that the offices are broken into, data on clients could be stolen. Moreover, LFU staff spends lots of time looking for particular files and sometimes they cannot locate the files which reappear after a few days causing embarrassment in front of the clients. However, by using MIS, LFU will be able to store and maintain its client’s information efficiently and this will improve customer satisfaction. In addition, by using MIS, staff will be able to share and move client information safely and efficiently. 5.2 Transaction processing system This is a system designed to process routine transactions accurately and efficiently[Kah11]. Currently, LFU is process its transactions manually which is consuming a lot of time leading to poor customer service. By using Transaction processing system, the firm will be to process its payment and conveyance transactions efficiently and accurately in a short time. This will improve customer service and reduce operational cost since less staff will be required to process this information. 5.3 Knowledge Management Systems LFU is planning to open offices in Newcastle, Wollongong and Parramatta. This means that staff will not be situated in one location and therefore they need a system that will enable them share ideas and come up with innovative ways to carry out business. Knowledge management systems will help LFU to create information as well as share information. This will help the staff of various branches to create new knowledge and expertise which can be shared by other staff in the law firm to come up with further commercial opportunities for pursue which is what Zheng (2011) envisions for business that impelement intelligent information systems. 5.4 Marketing information systems This is the latest system that is used to do marketing activities such as increase the awareness for the existing products or service, gather information to develop new products or service[Kah11]. LFU can use this system to market its services as well as interact with its clients online. 5.5 Human resource information systems (HRIS) Human capital is the most valuable limb in any organization to exist and HRIS helps to recruit, place, appraise, compensate, develop, and maintain the work place health and safety standards of the employees in the organization. Through online job banks, candidates and employers can be virtually meet and communicate before the sequence of the interview to fill the potential vacancies effectively and efficiently. The intranet allows the employees to self asses their past performance and matches them to be success in future promotions and also to get their rewards and bonuses as applicable[Deh11]. A basic HRIS will help LFU to maintain its current workforce 6 Types of information system to manage LFU in business decision making 6.1 Management Information System A Management Information System is a computer system that provides information about the operations of a business[Cre07]. This application will help LFU in that it will provide its managers with information regarding inventories, sales and other data that will help them manage LFU. By using a management information system (MIS), LFU will be able generate accurate, timely and organized information about its clients. Currently, the law firm is processing its information manually and this has resulted to wastage of valuable time in locating and managing clients’ files.  MIS will enable LFU to efficiently manage its client’s information and locate it quickly.  Moreover, Belinda who is the founder of LFU is concerned about sharing client information across its branches, and managing the movement of client files from one site to another but by using MIS, the law firm will be able to share client information safely and make it easy to move client files. 6.2 A transaction processing system A Transaction Processing System (TPS) is a system that allows the user to capture as well as process every transaction on a day to day basis[Deh11]. This system will help LFU in capturing and processes of the daily deposit, payment, reservation or orders of the organization. This system will help the organization reduce time wastage in terms of data entry and data processing. 6.3 Decision Support Systems Decision Support System is a system that is developed to assist to reach a final decision when faced with a decision making situation. This system utilizes data from both internal and external sources[Kah11]. This system will be of importance to LFU in making decisions as it will provide the decisions makers with adequate information in making decisions. 6.4 Expert Systems An expert system is a system is able to capture as well as store human knowledge expert and then imitate decision making process and human reasoning for those people who have less expertise. This system has two components: the knowledge base and the inference rules. The inference rules refers to as set of logical judgments’ that are applied to knowledge base every time the users describe the situation to the system. The knowledge base on the other hand combines the experience and knowledge of human experts (Crespi et al, 2007; Kahraman et al, 2011). this system will help LFU non-management employees especially when faced with decision making situation in which they have less expertise in. 7 How LFU’s new offices can be connected effectively using information technology By utilizing the intranet which is basically a secure internal network only accessible through a company’s network but which can also be accessed via virtual private network in the internet according to Kryvinska, Strauss, Nocker, & Zinterhof (2011), the company will have a secure network system that it can use to transfer clients information without the fear of leaking out clients information. The intranet also allows for the company to conduct all functions such as email sending and teleconferencing thus enhancing the connectedness of the network. This addresses the concern by Belinda on how she will manage employees’ affairs and at the same time keep in touch with the running of the company through a hands-on approach. Web publishing is also a key feature of intranet allowing businesses to maintain large volumes of data to be maintained and reviewed easily (Kryvinska et al, 2011). It is also accessible to all authorized employees making Belinda’s management work easier as she can regularly remind the employees of the policies, values and important newsfeeds she wants to get across. The extranet allows for a company’s intranet to be accessible to clients through their own intranet. This gives people outside the company a limited access to the company’s data to the extent that the company so desires (Kryvinska et al, 2011). This will be an important feature for LFU to connect with some of its clients and partners in sharing vital information. Authorities can also get access to important information they maybe interested in further improving the relationship between LFU and its stakeholders. Corporate clients are particularly a key stakeholder in LFU conveyance transactions. Extranet connections can therefore help improve communication and information sharing between LFU and corporate clients in this regard. The internet, being the worlds largest network of private an business computers (Kryvinska et al, 2011), is obviously an important tool that LFU can take advantage of to give information regarding its services to clients and also regarding the various offices that it is operating. The company’s website accessible through the internet should share contact information for administrators in LFU offices and also a clear explanation of how the company can be of help to clients. Clearly then this will improve communication between the company and prospective clients in light of the growing digital culture in Australia today where websites and social media sites are key tools in advertising, increasing brand awareness and responding to queries. 8 Security issues that may emerge Security is one of the major concerns for mangers when it comes to implementation of information systems. Information systems are always under threat of information leakage, sabotage and assault if left highly vulnerable to external and internal attacks. Some of the main issues when it comes to information systems security include password loss which maybe done deliberately by employees or by hackers using phishing techniques. This may lead to unauthorized access to vital data relating to crucial cases and clients information[Kau02]. LFU can prevent this by limiting the number of employees with access to vital files. Strong passwords which have multiple characters also limit low profile attacks. LFU can also invest in software technology that alerts some people in the organization once there is a hacking attempt or multiple login attempts by unauthorized persons. All this will be accomplished successfully if the company continuously engages the services of a reputable IT company, which is possible at a relatively inexpensive cost. Strong antivirus software and an always turned on firewall will protect the company’s system from malware attacks which may lead to loss of data and probably hardware damage. Regular updating of the software is recommended to keep the system up to date. 9 Privacy and ethical issues involved Some of the privacy issues that may emerge from implementing an IT system at LFU include increased risk of client’s information leaking. Schultz (2010) contends that unlike in manual files, computerized files are more exposed to unauthorized access remotely especially where extensive network connections are involved such is the case with LFU if the systems were to be implemented. However, the issue can be addressed using security procedures and policy to guide information sharing as well as standards acceptable for the whole system. The privacy issue borders closely with ethical issues, employees maybe having unregulated access to clients data and may thus use it for selfish aims such as offering information to external parties for a fee. This is unethical and can only be approached from a training perspective to sensitize employees on the need to maintain ethical conduct even as technology makes matters easier to execute[Des08]. 10 Expected change and how it can be managed The organization will have a whole different approach when it comes to security of data and privacy of clients since the data will be at a greater risk than it was in before. As such the management should help the whole organization responding positively to this change by training the employees on security, ethical and privacy issues that will come about because of the change. There will be increased activities due to expansion; this will definitely stretch employees beyond their current level of activity. This may cause stress and strained relations between workmates and between the management and employees. LFU management should therefore be ready to handle such pressures through optimum use of the IT system to simplify work and reduce work load on employees. Lastly employees should understand how to use the information system to their advantage instead of it working to reduce their productivity. It is common for employees to use facilities such as free internet to visit recreational sites and social media sites in effect wasting valuable time that should be utilized for the benefit of the company. This reduces productivity drastically as the behaviour takes root[Tur10]. However, management may set out a policy on what can and what can’t be done and at what time. This way everybody would be aware of what is expected of them and the consequences of breaching the unspoken agreement. 11 Summary and Recommendations If LFU is planning on expanding into other places other than its original offices, implementation of an IT system is not a choice but a necessity. LFU needs to integrate the operations at all its offices to handle the massive amounts of data that will come its way. The management will also require computerized systems to effectively handle management activities such as payroll management, file sharing, communication and consultation. Even though there are risks of having security breaches and system breakdown. The company will only reap more benefits by having such a system. It is therefore advisable for the company to implement an information system to handle it operations effectively and deliver value for money to clients in terms of shorter waiting time while being served, improved communication and most of all quality services. References Rai10: , (Rainer & Cegielski, 2010), Deh11: , (Zheng, 2011), Kin09: , (King, 2009), Kah11: , (Kahraman, Kaya, & Çevikcan, 2011), Deh11: , (Zheng, 2011), Cre07: , (Crespi, Criscuolo, & Haskell, 2007), Kau02: , (Kaufman & Speciner, 2002), Des08: , (Desai & Embse, 2008), Tur10: , (Turban & Volonino, 2010), Read More