Currently the businesses are selling different ranges of cards to specialist shops and retailers.The business current information system includes three industrial printing machines, a PC, three laptops each belonging to one of the managers who have basic

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Introduction

Currently the businesses are selling different ranges of cards to specialist shops and retailers. The business out sources the card’s designs from a graphics company called ‘Graphsoft’ who make the designs then send it to the company who upload the designs and prints the different designs. This card company has a well spell out hierarchy structure consisting of three managers viz: Purchasing manager, Sales manager and Manufacturing manager.

Using information technology to improve the way in which the business operates.

Strengths of the current Business System

The business current information system includes three industrial printing machines, a PC, three laptops each belonging to one of the managers who have basic IT skills. The business has already secured twenty five contacts thus they have secured some sales if the orders are met and if its customers are satisfied with the service they receive.

Weaknesses of the current Business Information System

Limited Access to Internet

There is limited access to the internet where by the purchasing manager is the only one connected to the internet via his laptop. This is disadvantageous to the business as only one person can access the internet at a time therefore time will be wasted by other managers if they want to use the internet as they will have to wait for the current person to finish using the internet. Time will be wasted this way which could be used productively. In addition to the purchasing manager’s laptop malfunctions as it is the only one connected to the internet, the business will not be able to access internet.

Hand written reports

The information currently provided is in the form of printed graphs and handwritten reports. These reports can contain errors such as grammar errors and spelling errors which could lead to some words loosing meaning, calculations errors which could lead to the data not being reliable and portraying misleading figures. All these errors could lead to the information not being accurate and reliable, which could lead to managers making wrong decisions based on these reports e.g. if the remaining stock in the report falsely shows that stock needs re-ordering whereas there is enough stock, purchasing manager will buy more stock which will tie the business’ cash and increase expense like more storing space will be required for the extra stock. As the reports are handwritten, it is difficult to modify the reports. Reports need to be flexible as the business is always dynamic. If a small change is required in the report, it will have to be re-written which is a waste of time and resources.

Design sent via CD-ROM

The greeting cards design is outsourced to company Graphsoft who make the design and send it to the businesses on CD-ROM via post and then it is uploaded to a PC and printed. This is very disadvantageous to the business because the CD-ROM sent via post is time consuming which could result to production being put on hold because designs taking long to arrive and reduce production thus reduce sales. Also the CD-ROM could get damaged on the post thus all data lost and Graphsoft will have to send the design again resulting in production being put on hold and loss of time. The CD-ROM could also get lost in the post and results are same as when it gets damaged. And it is not safe as competitors may maliciously get hold of the CD-ROM and copy the design.

Single point of failure

The business only has a single personal computer controlling three critical printers. If this single computer fails to function or malfunctions, all production will be halted, loss of sales, reputation and customer satisfaction. There is too much depending on the single computer.

No network

There is no network in the business and file sharing is difficult e.g. if the sales manager wants to forecast sale based on amount of stock available, it would be difficult. It is also expensive t license individual laptops with software programs. Also data files on all the managers laptops are ...

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Single point of failure

No network

Slow Communication

As only one laptop is connected to the internet this means that this is the only laptop with email capability. This will reduce communication. Also the business only has meetings once a month, this reduces communication and makes the company less efficient as they are unable to respond to changes, miss out potential opportunities.

Recommendations

Installing Broadband

As for the limited internet access, the businesses can solve this problem by installing broadband with a router. This will enable simultaneous access and faster access to the internet. The business can have wired access or wireless access to the internet however wireless access is most suited because there will be less wires around, hence lesser chance of accidents by tripping over wires. Managers can access internet any where in the office within certain radius (normally 50 metres from the router). However installing wireless internet can be expansive, especially if the laptops don’t have wireless cards, if they don’t have, wireless adaptors need to be purchased. The business has to scramble encrypt the wireless signals so that no unauthorised persons can access the internet using the signals omitted from the router. And when many users are accessing the internet, it may slow down but new technology devices are available for buffering the traffic flow. Using Microsoft Office to produce reports and Graphs

The company should purchase Microsoft Office XP small business. They can use Microsoft Word to write up reports. This is more efficient because it is easier to format the reports by correcting the spelling, adding or deleting text and reallocating entire blocks of text. The business can set up a template through Microsoft word for the reports that are frequently produced, this will save time and effort needed to write a report. Microsoft Excel can be used to forecast sales and cash flow by setting up a simple workbook on Excel. If the managers have not got the skills to set up a simple spreadsheet, they can purchase a book on Excel that is self- directed learning and they can learn at their own pace.

Database

The business should set up databases for its clients by using Microsoft Access. Microsoft Access will be able to create and edit tables that will contain customer information, create relationship e.g., relationship between customer and order invoice. Creates queries to search customer information, print user friendly reports. These will reduce data redundancy and increase efficiency.

Sending Design via email

Instead of the outsourced company sending the CD-Rom via post, the business can request Graphsoft to send the design for the card via internet using email. This can be done by sending zip files that are password protected thus no one can access the files. This method is very fast and reliable therefore reduce postage time and chances of data being lost or damaged via post.

Setting up LAN

The business should set up a Local Area Network (LAN) which will resolve most of the current problems. By setting up a network, the business can share resources such as printers, fax machines and modems. Files can also be shared by managers via their laptops. Individually licensed copies of many popular software programs can be costly. Networkable versions are available at considerable savings. Sensitive files and programs on the network can be passwords protected to restrict access to unauthorised users. Once the LAN is established, the company can use Workgroup software such as Microsoft BackOffice that allows many users to work on a document or report concurrently reducing time spent on any single report. The network will also enhance faster communication.

Setting up Intranet and Extranet

An intranet is an internal corporate network built using Internet and World Wide Web standards and products, used by employees to gain access to corporate information. The business should set up an intranet to increase communication and reduce costs. The business can put all of its documents such as phonebooks, supplier information, and other work procedures on the intranet and this can be accessed by employees who previously found it difficult to get hold of such data. Managers can put notices and announcements on the intranet, making communication flow faster.

Once the intranet is set up, the business can set up an extranet: an extranet is a network based web technologies that link selected resources of a company’s intranet with its suppliers, customers or other businesses. (Fundamentals of Information Technology, Ralph Stair and George Reynolds pg 164) In this case, the extranet will link the business with its suppliers to exchange information such as prices of raw materials and they suppliers can send their invoices quicker via the extranet. Graphsoft can send the design via the extranet faster and more securely. The intranet and extranet will require a Virtual Private Network (VPN) which is a secure connection between tow points across the internet.

Change of the business strategy to begin selling greetings cards direct to the public.

Selling direct to the public is a risky venture for the business to get into but it could also be very profitable if the business succeeds. The business should concentrate on its core market (which includes the specialist retailers and shops) just in case the venture fails. The business will be diversifying to a new market and possibly selling a new product. As they have no experience of selling direct to the public, they will have to conduct a research of the current level of competition and the market structure. The key card retailers include Hallmark Cards, Clintons Card, Birthdays, Card Factory and other small scale card retailers like WH Smith and other stationery shops. It is clear there is going to be competition therefore the business has to differentiate themselves.

A new Vision Statement and Mission Statement

There are many ways the business could sell to the public, they could set up shops on the high street and compete directly with other card retailers or use the internet to sell their products. It is better to set up a website and sell directly to the customers using e-commerce because it reduces transaction costs, speed of flow of goods and communication are much faster, improve level of customer service, enable close coordination among suppliers, the business and the customers. E-commerce also enables the company to gain access to worldwide markets .A vision statement is a description of the business in three to five or more years time outlining size, appearance and activities and a mission statement is a statement that describes the business’ intention and outlines where the business is now and where it is heading to (Economics & Business pg 233 Nuffield Foundation). The business will need a new vision and mission statement because they are changing their direction by selling direct to the public. This could be because they have focused their sales and realised that it’s falling or that they can increase their turnover by selling direct to public as there is high demand therefore take advantage of the gap in the market. The best strategy that the business can employ is to diversify to a market i.e. the public and sell their product. A suggested vision statement would be ‘Within the next five years, we intend to become one of the top ten card retailers, increasing sales revenues by five percent in the first year then 9 percent in the second year then maintain a steady increase of three percent by becoming internationally known for the exclusive and unique design for the product we offer and an excellent service to our customers’ and a suggested mission statement would be ‘Our mission is to be the customer’s first choice for cards, delivering products of outstanding design and great service at a competitive cost through working faster, simpler and together to satisfy our customers’.

Changes to the IT System that may be required.

The best strategy is to sell directly to the public via the internet. For this the business will need to set up a transaction website. The website’s advantages include publication of the business as the cards will be available to millions of potential customers which may increase the total sales. The website can be updated with latest news or prices much easier and cheaper than print based media. It will also save a lot of money in communication and administration costs. The business can advertise and publicise on the internet 24 hours a day, 365 days of the year without incurring much costs such as need to hire premises. One of the downside of having a website is if the website malfunctions, sales will be lost and the business’ reputation may be lost.

Setting up a website

There are many ways of setting up the website such as buying a generic website software application from PC outlets such as PC World. This is not recommended as the generic application is built for general users in mind and may not meet the business’ needs. The best way of setting up the website is by consulting some specialist web site developer to build a bespoke website. This is most appropriate as it will meet all the user requirements and the website should be as very user friendly because the general public will be using it of whom some have got very basic IT skills. However the downside is it is relatively expensive to build a website and it can cost from £1200- £10000. The business should also construct a database via a specialist software provider to store the customers’ and suppliers’ details then linked together with the website. The business can launch start selling e-cards. These are cards that are same as physical cards but the only difference is that they are sent electronically via email. This can increase the business’ sales. The website should have different options of different card designs and layouts with for different occasions and customers can build their own cards to their own tastes then the business will print the cards in batches and send the card out to the address requested by the customer. Once the website constructed, the business should sponsor the website e.g. by collaborating with Google to show their website if users are looking for cards to buy.

Setting up Shop on Ebay

This is a cheap option for selling the cards directly to the public but this limits what the business can do. It will have no direct contact with the customers but through Ebay and will have to pay some commission on the sales made. It is therefore not recommended.

Changes to IT System
The website can be based on a remote server in a different location but the business will have to pay monthly fees for hosting the website therefore the business will not need to buy a new server. A new Information Technology manager will be needed to run and maintain the website and the database.

All the computers in the business will have to be linked together to create a network as discussed earlier. This may require additional equipments such as Reuter and network Software utilities to maintain the daily running of the network.

Conclusion

If the business intends to use Information Technology to improve the way in which the business operates they will have to accept changes. A new IT manager will be required to maintain the IT system. All other managers may require doing some extra training. The business has to ensure the business keeps all the data safe and secure. If business data is lost, misused or accessed without authorisation, it can be difficult to make informed business decisions. This can also put the business at a competitive disadvantage and a risk. The business should write an IT security policy, setting out the general rules that will be followed to minimise IT security risks. The business should backup to let it continue trading even if computer data has been lost. Backups consist of copies of data from your key systems. These copies are made to portable media like magnetic tapes or CD-ROMs. The business should have a back-up routine (often done every day) as part of its IT security policy and should check that this is being correctly carried out. When constructing the website and database, the business should involve the managers as much as possible so that the system developer can understand the user requirements more precisely therefore develop a more comprehensive system. The cost of developing the system may be costly in the short run but the benefits will out weigh the costs and improve efficiency in the future there fore the business will have a secure future.