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IT601-0903B-07 Information Technology in Business Management - Phase 1 Discussion Board - Essay Example

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Kevin would like to use the IS to help improve and streamline the production process. This however requires calculation of inventories, manual roll out of products and also the budgets. It would be more beneficial if…
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IT601-0903B-07 Information Technology in Business Management - Phase 1 Discussion Board
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The IS are given importance a little more than it is needed. Kevin would like to use the IS to help improve and streamline the production process. This however requires calculation of inventories, manual roll out of products and also the budgets. It would be more beneficial if the IS recorded the raw materials when they came into the premises. Also the production plan can be used to calculate the budget and Kevin would also have access to the inventories directly from the system. Also the IS can assist Kevin with the plan production and help reduce the inventory and also make effective use of the raw materials. This will assist in reduction of the variable and fixed costs (Sanders, 1982).
The IS can also be used for the sales as well. For example, the website can have an order cart which could be used to take orders and also receive payments using a button. This would send out the shipping information to the warehouse and the order could be shipped immediately through courier. This would reduce the costs involved and will also provide the customers with an easy mode for the customers to place orders and also receive the deliveries (Drejer, 2002).
Dan the sales head is not very comfortable with the use of new technology. It has also been noted that the use of the new PCs is very ineffective and the orders take as much as ten days to process. This is a very long period and is very ineffective. Also the website seems to be the only mode of communication with the customer. The website also lacks an internet link which can be used for the wholesale customers to speed up the delivery of the orders.
The uses of information systems can help improve and help achieve organizational goals and also help reduce the fixed and variable costs. This will help in increasing the profitability of FYC as well. Also, the FYC requires a bettered supply chain management which can be gained through the IS. It could also allow for production control and inventory control and also help for the co – ordination of the stores as well. This could also speed up the process of the booking and deliveries as well. Also the IS could be used for the human resources functions and the financial functions as well (Treqoe, 1983).
The hierarchy structure of FYC is very irregular and requires a lot of attention as well. Both Laura and Dan report to Donna. This leads to increased confusions among the marketing team and the marketing functions as well. There is also no or very less coordination among the brand management, sales, merchandising and marketing teams as well. Kevin also reports to Donna and this leads to mismatch between the production plans and sales forecasts as well. Also there can be large inventories and can also led to slow sales of the products as well. Also the administrative head of the company Tom also is the head for the human resources teams and the finance teams. This is incorrect as he does not have the expertise for the leading the other teams as well (Johnson, Scholes & Whittington, 2006). Thus looking at this it is clear that the FYC lacks a strong organizational structure and also if FYC needs to reduce the costs and become profitable it will need to check on this and this will help the company grow again.
Bibliography
Drejer, A. (2002).Strategic management and core competencies: theory and application. Westport, CT: Quorum Books.
Johnson, G., Scholes, K. & Whittington, R. (2006). Exploring corporate strategy. 7th edition. New York: Prentice Hall,.
Sanders, P. (1982). Phenomenology: A new way of viewing organizational research. Academy of Management Review, 7(3), 353-360. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=4285315&site=ehost-live&scope=site
Treqoe, B.B. (1983). Top management strategy: what it is and how to make it work. New York: Simon & Schuster. Read More
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