Operations and Information Management - Case Study Example

Student Name Professor Name ID # Date Operations and Information Management A centralized information management system such as an enterprise resource planning (ERP) system is a software system that is used to manage and automate the business activities of huge and medium businesses. Integrated enterprise resource planning systems turned out to be acknowledged in the near the beginning of 1990's. Single monolithic parts of ERP software, enterprise resource planning systems assured to act away by means of changeable data, mismatched formats, as well as improper databases applications. Up till now, enterprise resource planning systems has been approached by means of their individual, unforeseen complexities. Their wonderful generalizations as well as huge difficulties build them level to glitches as well as low performance, complicated maintenance, as well as accomplish to put into practice (Daneva). ERP is an organizational business administration/ management system that puts together every part of the organization, encompassing sales, scheduling, marketing and manufacturing. As the enterprise resource planning method has turned out to be further well-liked, software applications have come out to smooth the progress of commerce administrators to put into practice ERP in organizational dealings such as, in order tracking, finance, customer service, inventory control and human resources (Laudon and Laudon). Information technology is reshaping the development of administration, offering powerful innovative capabilities to assist manager’s plan, sort out, lead and direct. For example, it is at the present achievable for managers to get hold of information on organizational routine behind to the amount of definite transactions from just about any place in the organization at any time. Many organizations at the present make use of information technology for enterprise resource planning (Laudon and Laudon). This paper is written in the context of an organization the High Note Group (HNG), which has recently faced important business changes. This paper describes the necessary business changes and the recommended solutions to deal with these changes. The High Note Group: Overview The High Note Group (HNG) is a well-known music business, which provides a wide variety of musical instruments all over the region. Up till now, HNG has been operating using the traditional computing practices. However, with the passage of time, there has been extensive growth in the business structure. In fact, HNG has established partnerships with various retailers and organizations. In addition, the business has been expanding in all the directions. In this scenario, the management of business activities through traditional information management processes has become a serious challenge for the HNG business. Since the business has grown in different directions hence the number of stakeholders have also increased. On the other hand, the success of a business is highly dependent on the effective data sharing among different business stakeholders. Jack, who is the owner of the HNG has realized the importance of an effective information management system for the success of a business. Hence, he has decided to implement an effective information management system. Changes in the Existing Business The HNG manages its business through the customary management system. Through this system, the management has to face various problems regarding the effective management of the business. One of the most important issues is the absence of a centralized business management system such as a customer relationship management (CRM) or an enterprise resource planning system. Finance and management are totally managed through the de-centralized approach. In fact, they have a manual budget and finance handling of the overall projects and organizational areas. The old databases of the HNG are unable to provide a comprehensive management of the daily routine working regarding the CRM, finance and sales. The records and information regarding each unit are managed separately. Due to this there are serious problems of the system working and compatibility. Different systems have different data file formats and working sheets. The combined data processing and handling is really difficult for the HNG. Here we need a centralized system that can manage all these areas and have the overall system compatibility. Purposed System The management of HNG is aimed at implementing a centralized information management system such as a CRM or ERP. In addition, the implementation of this system will brought an improved working environment for the HNG, since it will improve the traditional working environment of the HNG: Expected Changes The management of HNG has decided to implement a centralized information management system, however the implementation of such a system can have significant impact on the business environment. Basically, the business of the HNG is expanding in different directions and in order to deal with this ever-increasing expansion the business needs to bring some changes to its existing business environment. These changes can be: Implementation of latest technology Up till now, the HNG has been using the traditional tools and technologies for the management of its business operations and business information. Though, these tools and technologies provide some support for the management of basic aspects and information. However, they are not effective in dealing with huge data and information. In fact, these technologies do not support effective data sharing among various business stakeholders. Hence, the HNG needs to implement a centralized solution for the management of its business operations. Basically, the implementation of a centralized solution will help the HNG business manage its business activities in a better way. Data Sharing Though, the use of existing tools and technologies can provide considerable support to the HNG for the management of its basic units however, with the expansion of its business the number of stakeholders are also increased. So in order to share information among these distributed stakeholders there is need for an effective technology through which all the stakeholders can have fast access to accurate information. Improved decision making The decision making is a complex however an important aspect of all the business organizations. In fact, the successful execution of a business depends on the effective decision making (Stair and Reynolds). As the business of HNG has expanded considerably so in order to improve the business potential accordingly there will be a need for effective decision making. The traditional business management does not provide an effective decision making capability. Hence, the business needs to change the decision making process through the implementation of a modern information system technology. Internet Supported Communication Since the business has encompassed a variety of stakeholders from all over the regions so there is need for an effective communication structure. This communication can be supported through a modern technology such as the Internet based communication structure. Improved Customer Support The successful growth of a business depends on the successful customer services. If the customer is satisfied he will come to the business again. In scenario of the HNG the number of customers are increasing with the passage of time. Hence, the business should provide an excellent customer support to its customers so that they could maintain an effective relationship. Close Network of Departments Currently, the HNG is managing its business processes through decentralized fashion. Though, the business has different units such as the finance, the customer service and the sales department, but these units are not closely linked with each other. Without a doubt, the effective sharing of information among these units is necessary for the success of the business. Hence, there should be a system to network all these units. Staff and Training The business is expanding in different directions but the business has been using the traditional tools and technologies to manage its business operations. However, the business needs to implement an improved technology that is easier for the staff to manage. If the staff is well-versed with the technology then it will be easier for them to manage the business operations. Though, some training will be required for the staff members. Information Security Without a doubt, the information security is a significant aspect of almost every business. Since, the HNG has to deal with a large number of customers and organizations hence it needs to ensure the security of the data that is provided by its stakeholders. The traditional tools and technologies used by the business do not provide considerable security for the customer data and information. Hence, there is need for an effective security measures to improve the security of the customers’ data. The support for the Changes As discussed above, the implementation of a centralized customer relationship management system or an enterprise resource planning system can help the HNG manage its business effectively. The implementation of a centralized information management system does not only provide support for the above mentioned changes but it can provide an excellent support for a large number of additional business processes. The Customer Relationship Management (or simply CRM) refers to a strategy that business organizations implement to manage customers’ communications. One well-known instance of a CRM policy is the rewards card program available at numerous supermarkets. In this scenario, the business offers its customers a free card that allows them with the access to particular deals and discounts when they swipe the card at the checkout point. In addition, this card as well tracks the entire process of shopping by the customer as well as allowing the store to produce a tremendously detailed buyer personal and shopping profile based on customer purchasing behavior. Thus, on the basis of such application of information, the store is able to offer its clientele targeted coupons and additional programs that will motivate its consumers to purchase more products from that store (Connick; Turban, Leidner and McLean). CRM systems are designed to collect customer information from various sources of interaction and channels used between customers and an organization such as telephone, email, website and social media etc. CRM systems tend to generate insightful information for customer-dealing staff such as personal information, buying preferences and concerns. It helps in the growth of business because it tracks customer interactions. It helps in a better understanding of the customers’ psychology, their attitudes, choices, fear factors and concerns. CRM systems help in manipulation of a customer as a valuable asset of an organization from different social, psychological and economical perspective to determine future of organizational success and customer growth. The purpose of this writing is to introduce concept of CRM with emphasis on its technological applications and usefulness of its integration into organizational practices to maximize customer attraction, gain and retention thus eventually leading to organizational growth and success. CRM software consolidates all the customer information and data into a single database so users can easily access and manage it. The software collects data related to customer interactions such as emails, calls and web interactions etc. that is then used for automated evaluation of customer satisfaction level and quality assurance in addition to providing overview of overall performance and growth trends of the organization that are vital to its sustenance. CRM software can automate tasks such as repetitive tasks like marketing and promotions, sales force automation and contact center automation. All these activities are quite exhaustive in nature and demand a lot of workforce but this can be minimized by deploying a CRM system that automates all this for the organization efficiently (Rouse; Oracle). The implementation of a customer relationship management system allows the business organizations to manage their accounts effectively by providing the marketing, sales and support staff with the comprehensive customer histories they require in order to deliver a great deal additional personalized service. In addition, it as well ensures the smooth execution of key operations and practices, by facilitating businesses to get a deep insight into the communications that absolutely and harmfully influence the customer experience, so more effectual procedures could be implemented in order to resolve those issues (Business-Software; Turban, Leidner and McLean). In addition, a wide variety of CRM applications and solutions encompass modules for call center, campaign and contact management, and customer analytics that bring vital intelligence regarding customers’ requirements, preferences, and behaviors. Additionally, the customer relationship management systems as well offer dashboards that permit administrators to track serious customer related performance metrics. Moreover, the CRM could be used for modernizing email marketing by completely automating the method business has launched, developed and tracked. As well, CRM improves the global account management, eradicating overlapping and redundant activities by effectively organizing service delivery to customers through many offices spanning numerous countries (Business-Software; Turban, Leidner and McLean). Moreover, CRM allows the businesses to attract more customers to their business by authorizing sales representatives through efficient opportunity management that facilitates them to prioritize their forecast, systematize their sales cycles, and precisely uphold calendars and activity logs. Once a view is complete to make a purchase, CRM can be used for status tracking and order processing. In addition, the business wide measures can be improved through CRM. Additionally, high level forecasting potential offers more timely and accurate business supply chain management (Business-Software; Turban, Leidner and McLean). From the discussion, it is clear that CRM offers a lot of advantages to the businesses. So by using a CRM the HNG can improve its services and attract more customers. Hence, the implementation of a CRM can help the HNG resolve the majority of its business issues. ERP is an abbreviation for enterprise resource planning. (ERP) is an industry term applied to integrated software systems used to organize the internal and external resources of an organization. These contain the financial resources, physical assets, materials and human resources. ERP system is used to organize the business. ERP software is basically an integrated system used to maintain, and organize the data. Businesses use ERP software to combine and incorporate data. It could be very complex to select an ERP software package and execute it efficiently. A lot of companies feel that ERP software is the backbone of the organization. The main benefit of ERP systems is that they can impel massive advancement in the success of any organization by expressing their data into decision making information, delivering you with the tools to provide a high level of service to your customers, permitting you to arrange your work load based on existing orders and forecasts, helping you in determining your business processes, securing your key business data through clear-cut roles and security access. Open source CRM software make source code of the software available that can be useful for companies since they can modify and customize the software as per their needs and resolutions to maximize the benefit out of such a product. SugarCRM is a popular open source CRM vendor that provides this kind of software. The main benefit of such systems over other proprietary counterparts is that they allow the freedom and requirements of organizations to easily adjust in the realm of software structure without raising the need to redevelop or rewrite software as per their specifications (Rouse; Oracle). The HNG can choose a solution among these solutions. However, all these solutions are aimed at support the business processes. All these solutions encompass a wide variety of functions that are critical for the success of a business. Challenges In implementing the above mentioned solutions, Jack can face a number of challenges. Some of the challenges are discussed below along with the recommendations to improve the effectiveness of this strategy: Increasing Cost Since the implementation of a centralized technology such as an ERP or CRM is a costly activity, hence Jack can face a challenge of cost overrun. There will be a need for additional budget to run this project. Recommendation Jack can use an open source solution to minimize the cost of his implementation. Since, there are a large number of open source solutions. These solutions come with a minimum fee. However, it can be better for Jack to implement a customized solution to keep the budget as low as possible. Staffing Problem The existing staff of the HNG is used to work using the traditional business management solutions and the implementation of a new and advanced solution can cause serious challenges for Jack. In fact, some workers can refuse to work using the new technologies. In addition, working with new technologies can take additional time from the staff members. Recommendation Jack should take the confidence of his existing workers prior to the implementation of a new solution. He must realize them the importance of this new technology. In this scenario, Jack can conduct some training sessions by calling experts from the industry. In addition, some training can be provided to these staff members in order to improve their learning capabilities. Security challenges Security has turned out to be a significant challenge for today’s businesses. Jack will have to face serious security challenges after the implementation of this solution. In this scenario, it is really important to make sure that the customers’ and associates’ data will be kept secure. Recommendation Jack should implement these solutions by keeping in mind all the security needs of both its customers and associates. It is very important to ensure them that all the important security measures have been taken in order to ensure the security of their data and information. Because the customers will be using the Internet to perform the necessary transactions with the HNG business and they will be providing their secret information such as personal information and accounts information so it is very important for Jack to make sure that their customers feel confident while conducting such transactions. Successful Execution The implemented solution should be faster and should perform all the desired operations quickly within a minimum interval of time period. It can be made possible through the implementation of high level computing resources and algorithms. Jack will need to make sure the security of its data and information in case of any hazard. For instance, if the business loses control over its system due to any mishap then it should not have a significant impact on the successful execution of the business processes. Recommendation Jack can overcome these challenges by using high quality equipment. At the present, the prices of hardware equipment and resources are going down. In addition, Jack will also need to ensure the implementation of a successful backup strategy. In this scenario, Jack can ensure that his staff takes backups of data on a regular basis at the end of every day. In case if the business undergoes a hazard such as the loss of control over the business, Jack can be able to restore data from the back up material. This back up data can be used to run the business operations without any stoppage due to the loss. Works Cited Business-Software. CRM A-Z. 2012. 01 March 2015 . Connick, Wendy. What is CRM? 2012. 03 March 2015 . Daneva, Maya. "Measuring Reuse of SAP Requirements: a Model-based Approach ." ACM (1999): 141-150. Laudon, Kenneth. C. and Jane. P. Laudon. Management Information Systems, Sixth Edition. 6th. New Jersey: Prentice Hall, 1999. Oracle. Modern CRM: A Competitive Advantage. 2015. https://www.oracle.com/applications/customer-experience/crm/index.html. 04 March 2015. Rouse, Margaret. customer relationship management (CRM) . 2015. http://searchcrm.techtarget.com/definition/CRM. 03 March 2015. Stair, Ralph M. and George W. Reynolds. Principles of Information Systems, Sixth Edition. Toronto : Thomson Learning, Inc., 2003. Turban, Efraim, et al. Information Technology for Management: Transforming Organizations in the Digital Economy, . 4th. New York: Wiley, 2005. Read More