As with any organisation, reliable processing of transactions are required to make sure that the customer’s orders are fulfilled on time, also companies partners/suppliers receive their payments. Transaction processing systems have now become a vital part of effective business management and they are led by organisations such as the “Association for Work Process Improvement” and the “Transaction Processing Performance Council”.
The transaction processing system offers the company a means to process transactions rapidly to ensure that the flow of data and the progression of processes throughout the organisation are smooth. The typical characteristics of a TPS are rapid processing, reliability, standardisation and controlled access.
Warehousing
A warehouse management system (WMS), plays an essential part in the supply chain and aims to control movement and storage of all materials that are within the companies warehouse and processes any associated transactions, this includes shipping, receiving, stocking and picking.
The WMS will utilise Auto ID Data Capture (AIDC) technology. These can be barcode scanners, mobile computers, wireless LANs (local area networks) to monitor the flow of products. When all of the data is collected, there can either be a “batch synchronisation” or a real time transmission, both completed wirelessly to a central database. This database then provides useful reports regarding the goods status in the warehouse.
Sales
As with the purchasing department, a transaction processing system (TPS) would prove to be a major improvement in how the sales department handles any transactions made by customers. The essence of the TPS is that it will manage any data that must be left in a consistent state. For example if a payment is made, it must be withdrawn from one account and added to the other or none at all. If there is a case of failure that prevents the completion of a transaction, the partially executed transaction must be rolled back by the TPS.
This type of integrity must be provided for batch transaction processing, it is also particularly important for any online processing. If the company does not have proper transaction monitoring, double orders may occur.
Some other functions that can take place during transactions include deadlock detection and resolution. A deadlock situation is where two or more competing actions are waiting for the other to finish, and thus neither ever does. Another function is transaction logging, in journals, that in case of a massive failure in the organisation can be used for real time recovery.
Delivery
Warehouse management systems (WMS) can either be a standalone system that is separate from all the others or it can be a number of modules in an enterprise resource planning (ERP) system. The systems primary purpose is controlling the movement and storage of all materials within the company’s warehouse. In the WMS simplest form, the data can track products throughout their entire movement.
As it’s explained in the warehouse department, the WMS will make the most use of tracking technologies such as AIDC and GPS. This will then not only allow the company to track products and vehicles, but it will also allow customers to track ordered goods.
The delivery department could alternatively implement a Management Information Systems (MIS).
MIS are a subset of all the overall internal controls of the company. This covers the actual application of people, technologies, documents, and procedures, to solving any problems the company may face, such as costing a product, service or even a business wide strategy.
MIS is also a planned system in the collection, processing, storing and disseminating of data in the form of any information that is needed to carry out the functions of management.
Distinct from regular information systems, MIS are used to analyse other information systems that are applied in any operational activities within the organisation. MIS are commonly referred to as the group of information management methods that are tied to automation or the support of human decision making, (e.g. Decision Support Systems, Expert systems, and Executive information systems).
Finance and Human Resources
With the implementation of financial information system (FIS) the company will be able to accumulate and analyse all financial data, enabling them to make good financial management decisions in running of the business.
The basic purpose of the FIS is for it to meet all the company’s financial obligations as they come in due course by using a consistently minimal amount of the company’s finance resources that has been established as the margin of safety.
Outputs that can be generated from the FIS include accounting reports, capital and operating budgets, cash flow forecast, working capital reports, and various analysis reports. This financial data may be evaluated through a variety of performances including trend evaluation, ratio analysis and financial planning modeling.
Alongside the FIS, the human resources department would be able to use a Human Resource Information System (HRIS). It generally tends to cover administrative processes and it is common to all organizations. The HRIS is able to track all the existing employee data and typically includes salaries, skills, personal histories, accomplishments and capabilities.
Discussion and Evaluation of Appropriate Alternative Structures
IS support operations, knowledge work, and management within the organisation. The overall structure of organizational information systems is shown below.
Typical Structure of Organisational Information Systems
Operational support
At the operational level of the structure is transaction processing systems. It is through these that products are designed, marketed, produced, and delivered. These systems accumulate information in databases that form the foundation for higher-level systems.
Support of knowledge work
In an information society a large proportion of work involves manipulating information and knowledge, rather than having to directly process, manufacture, or deliver tangible materials. Generally there are three categories of IS that support knowledge work, professional support systems, office information systems, and knowledge management systems.
Management Support
A large number of IS categories comprise of IS that are designed to support the management of the organization. These systems rely solely on the data obtained from the TPS, any data acquired outside of the company and also data that has been provided by business customers, suppliers and partners.
Proposed Structure of Organisations Information Systems
The following IS structure will be implemented into the organisation.
Recommendation of Proposed Information System
The following proposal we recommend lays out steps to systematically integrate new technology into your business vastly improving your efficiency and providing you with a greater audience and customer base.
Your business won't stop while we implement a new system. The project will be in addition to the workplace, and we will deliver to budget and without surprise. The proposed information systems for each department are discussed below. Jackson office furniture will strive in future business with this new cutting-edge information system
Here is our proposed new system
Our proposed new system is a comprehensive information system that connects online each of JOF’s Warehouse's to efficiently and accurately control operations. In addition to storing warehouse and shipping information, location data, and control functions for all stock in the warehouse. This system allows us to share information with departments by seamlessly linking with their systems through Electronic Data Interchange (EDI), the Internet, intranet and file transfers.
Basic functions
Our system can be customized according to client requests, further enhancing operations and efficiency.
Warehousing and Shipment Management System
Registering warehousing schedule
Registering fixed warehousing
Registering allocation of inventory
Transmission of collective processing for warehousing and shipping
Other functions
Providing data about warehousing, shipment, and inventory
Providing statistical data
Outputting customized orders
Inventory Control System
Product code management
Lot management
Location management
Expiration date management
Order levels management
Picking system
Bar code management
Crisis Management System
Ensuring the safety and accuracy of management through host system redundancy.
As a security measure against disasters such as fire, floods, earthquakes & more, we will provide a core information system that is outsourced to a specialised company. When host system redundancy is implemented, even when one computer system goes down, the back-up system immediately takes over processing, making recovery possible within an hour. The Data Center at the specialised company is not only equipped with disaster resistant facilities, but also provides comprehensive monitoring to ensure safe, accurate management.
Web Order System
Supporting real-time inventory inquiries and orders using the Internet. Jackson Office Furniture will offer a document inventory inquiry display that customers can access using a Web browser. We will include high-security Web pages using SSL encryption for worry-free use by customers.
Delivery Management System : Efficient vehicle allocation and cargo tracking
In the highly competitive industry, providing services with higher added value to customers leads to expanded business chances. Jackson Office Furniture Co., Ltd will have a proprietary vehicle allocation management system that takes full advantage of cutting-edge IT systems such as computers, mobile networks and the Web. Its three functions, automatic vehicle allocation, cargo tracking, and vehicle position management, facilitate efficient vehicle operation and strengthen customer trust.
Automatic Vehicle Allocation System
Vehicle allocation, a previously time-consuming task causing problems in the workplace, is now handled by computer. While checking total weight, loading ratio, the number of places to assign vehicles, and delivery times on screen, you can quickly develop the most efficient vehicle allocation plan. This improves load efficiency, shortens delivery times, and reduces costs. Customers also benefit from these advances.
Cargo Tracking and Vehicle Position Management
Radios and mobile phones were previously used to handle customer inquiries on the status of their shipments, instructions to drivers, and reports of completed deliveries, leading to inefficient, error-prone communications. Jackson Office Furniture Co., Ltd. Will have a newly developed and adopted a Cargo Tracking and Vehicle Position Management System that combines GPS mobile phones and bar code readers. This new system allows customers to submit inquiries to a cargo delivery management database on a Web site, anytime, in real time, and receive responses quickly. Moreover, analyzing delivery results leads to more efficient delivery plans.
Implementation of New Financial Package
The warehouse will be the main source of critical data to maintain the new high standards of the company, invoices will be electronically available the second an order is processed for the finance department, also the new database will provide quick access to company accounts including payroll, sales and deliveries eliminating the chance of errors or duplication in paper based operations. Our new IS allows instant credit checking of customers to allow an efficient and accurate transaction.
Sales Department
Data produced from the warehouse gathers sales figures which can in turn perform trend analysis for the company allowing the prediction of certain trends during the year, e.g. the rise of sales at the beginning of an academic year for university students.
Purchasing
Our new system will vastly improve the purchasing department by allowing real time stock level analysis enabling a more accurate ordering system, giving the company a major leading edge on stock re-ordering eliminating over procurement of stock. All previous paper based orders are now eliminated with our new efficient system reducing the possibility of human error.
Chapter 2 – Change Management
Analysis of sub-systems within the company
Organisations usually have a system that controls all the business tasks. Within this system there are many sub systems which are explained in more detail below.
Functional Sub-System
These systems use many different types of components that help with the control of the organization. This sub system includes the use of roles, policies and procedures to help achieve this. It controls most of the functions within the organisation which help it to operate. Departments such as HR, finance and executive staff would be classed as this sub-system.
Informational Sub-System
An informational sub system handles large amounts of data and ensures that the data is good quality and useful for the organisation. Data that is not useful for the organisation will cost the organisation money and time which can be better used to maintain good customer relations.
Information from this system serves all the other sub systems and systems which are why this is a very important sub system within the organisation. This system is not necessarily on computers it could be paper based however a paper based system is harder to keep track of. The sales and warehouse department would make use of such a system.
Social Sub-System
This system focuses more on the social side of the organisation. Which contains different types of social activates like social networking, friendships and social activities. All of these will help with staff morale and loyalty because they will feel more confident within the organisation.
This system is not always used to make a profit but to make staff happier and more motivated to work well. Also it is usually built on the beliefs and values that staff may have. We assume that the company like any other company the employees form their own sub social networks.
Political Sub-System
They often involve goals of the organisation, people with the organisation and the power of the organisation. This system can be linked into the social sub system to build up informal power within the company. This means that staff can ask for respect when they feel they are being treated differently to other staff members. This would be linked to all of the department managers.
Cultural Sub-System
This is mainly focused on the values and beliefs of staff within the organisation to avoid offending anyone within the organisation. This sub system is a sensitive system to some organisations so they will hire people that will work well with the current staff members within the organisation.
Possible Impacts on Operations, Organisation and Roles
What this new system and proposal will do to the organisations operations is streamline it and make it as efficient as possible to save time and in turn money. It will also affect the organisation because there will be many changes made and implemented for new systems including possible reduction of staff numbers.
One thing that needs to be considered in this proposal is to either outsource some parts of the organisation or to keep it within the organisation. When this decision has been made the benefits and disadvantages of both of these must be considered. Outsourcing is used for the purchasing software and the new EPOS (electronic point of sale) systems.
The life cycle of the development process must also be considered whether it will be a waterfall method where one part is introduced at a time or a rapid method where it is all introduced at the same time. When introducing the new systems or proposals they will be implemented gradually through all the departments to reduce the problems that will occur.
Implementing new systems can affect organisational goals and roles due to new products or services the organisation will be able to provide. They will have to provide support for these new items and advertise the new items to make customers aware that there is something new. Because of all the proposals we made, a change of goals and roles will be required due to new products being available or a reduction in staff numbers.
Due to the introduction of the AIDC system in the warehouses the way that they will update the system with orders and deliveries will change because they can use scanners to simply scan the item instead of what is currently in place. Also it will impact the role of the warehouse because it will be responsible for keeping the system up-to-date and accurate.
By only installing systems required and avoiding overcomplicated software and hardware it will lessen the initial impact on the organisation. New software will be customised to fit what the organisation needs it for and to reduce problems occurring when any one uses them.
Assessment of Possible Resistance to Change
Because of all the proposals and systems being suggested there may be a resistance to change within the organisation by staff members. They may be worried about job loss or a drop in their income when a system takes more of their roles. Because of this there could be resistance in the workplace resulting in unwanted situations arising in the workforce.
This will have to be considered with the implementation of the new systems and proposals we made and can be addressed by reassuring staff members that they will not lose their job or the amount they are paid, but the new system will relieve stress and help out in their daily chores.
Your staff may also be unwilling to do further training for the new proposed system or tasks because they may find it too difficult or no motivation for change. This is considered in our proposals and appropriately addressed. The Staff will be involved in the implementation of a new system to reduce the likelihood of resistance to the change which will involve informing staff how their new workload will be beneficial to them.
Staff will also be informed on what is happening with the new systems and operations coming into the organisation, which includes presentations, news letters sent by email and meetings with departments currently undergoing a change.
Our proposals are made to reduce staff workloads and help make staff work more efficiently and effectively which will be greatly beneficial to the organisation.
To help avoid resistance to these changes we are implementing we will use most of the legacy software and systems drastically reducing costs of training and new technology. Making staff aware that extra support will be given for new systems that will be introduced will help staff to be more accepting of their new role.
Because we are upgrading some software and hardware in the systems already used within the organisation most staff will only notice a slight change in their working environment and therefore keeping up morale and staff satisfaction.
Apart from the physical resistance of change there is also a virtual resistance to change due to legacy operating systems and software currently being used. Due to various software vendors being utilised there is more chance of incompatibility which will be amended by the use of conversion interface software producing full compatibility with each tool. Included in our proposal are software and operating system updates which are required for greater functionality and compatibility.
Because we assume that all the staff in the organisation has basic computer knowledge, detailed support and help will be provided to help solve problems that occur. User guides will be available to staff for any new systems or software that needs to be implemented. Feedback will be requested from staff after a certain period to rectify any problems that arise with the new functions and systems.
Assessment of Readiness to Change
Implementing any new systems in stages will help with the readiness of change allowing the company to gradually integrate the new proposed system reducing the amount of problems occurring and increasing the success of a new system. Also good communication of any problems that arise can aid in the readiness of change for the organisation.
Knowing how the new system aids each department and how it will be implemented will give the users a great advantage of understanding what’s involved in the change.
Users would need to be aware that the implementation may not fully function until fully integrated with the existing structure of the system. There is also a section which would include certain aspects on the risk of the implementation which would mean that the users would need to make sure that the system has been fully checked.
There is also another cause of implementation which involves certain aspects such as the quality of management and the implementation process. The factors from above are linked into the information system. This diagram below shows how all of the sections are involved.
There would also be involvement from the user which would engage many different aspects. One of the main aspects is when the new system gets introduced to the company the employees which work on the system would instantly rebel against change. Most employees would instantly dislike the new system as they would need to learn how to operate the implemented software again. Also the employees may find it difficult to adapt to a new system which would reflect in their work production.
Communication in a newly implemented system could be a major problem, resulting in the need of advice from the creator, where profits could become losses in those crucial moments if training is not pursued.
There is a theory called the adoption curve. This would show how a typical user would feel if there was a new system which was implemented into a company. The diagram which is shown below explains what a typical user would feel. The employees at JOF may also relate to these statistics. When a new system is introduced to a company there are many problems which arise in the first few months. Once the system has been fully implemented, this would produce long term benefits which would vastly improve the company.
There are many different issues when a new system has been created which can affect the employees. One of them is the amount of training which would be given may not be enough for employees to understand fully what they would need to do. This could also result to them not feeling secure with the new system. The employees who work at JOF may also have been working at their full capacity which would mean that the employees would find it difficult to retrain and understand the new system.
The company would also need to promote and influence the change as the users would not accept the new system instantly. Communication can be seen as one of the most effective ways of promoting a new system. The company could raise awareness early to the employees which would help them to understand the new system and how it could benefit them and the company. This would also soften the impact of the news about the introduction of a new information system. The company could also do some internal marketing which would help the employees within JOF to notify them of the change. There are also different means in which JOF could deliver the new systems to the employees such as training. There could also be meetings and presentations to help the employees while the new system is implemented.
Recommended Approach for Managing Change
There are many aspects in which JOF would need to understand when implementing a new information system. There are also many types of methods which are used to manage the change of a new information system. This is one of the most important parts on implementing a new system, the company would need to make sure that the change is efficient and it is done in a way which would not disrupt the working environment.
Types of Forces
There are many different forces which are for and against the changes. There are also external and internal forces which are linked to the changes. There internal forces such as organisational growth which would try to make sure that change would work. There are also external forces which would link to changes such as changing technology. There are also individual forces and the organisational forces. The individual forces would usually be the employees within the company. This might also be linked to the employees who work at JOF.
Overcome resistance
There are many forces which would have different opinions of the new system. One of the main methods is the force field. A force field can be seen as type of analysis which would be able to show which forces are stronger than others such as the organisational forces would be stronger than the individual forces. The force field would be done with a brainstorm which would be able to analyse the strengths and weaknesses of all of the forces. This would allow JOF to identify the weaknesses and try to improve them into strengths.
A force field analysis on JOF would include every department of the organisation. There are many forces which would be used in the analysis. The main forces would be the executive department, purchasing, warehousing, and sales, delivery and also the finance and human resources departments. The executive Management would be informed about the system as there would be an EIS implemented which would allow the executive staff to learn about expansion and other possibilities. This could also lead to long term profits. The delivery department would also benefit heavily as all of the orders are made, they would be tracked with RFID. This would be seen as the strengths of change for the company. There also some departments which would not see as much benefits. The finance and human resource department already have a simple spreadsheet system installed. There would be benefits in the department but not as much as the delivery department. This could be seen as the weakness of the departments.
As the new system would be implemented many employees would typically have a negative opinion about the new information system. The company would usually need to make sure that the system is fully integrated within the company before they could decide if it was a success or a failure.
Accept the change
The organisation development model can be seen as one of the most helpful ways to change an organisation. This would also allow the company to understand what the problem could be and also how to solve it. The organisation development (OD) model amplifies the goals and the strategies of the company. This would give the employees a clear understanding of what the company is trying to accomplish. The OD would involve the whole organisation as well as the departments; this would encourage teamwork within the company. If the new information system was implemented this would help JOF engage their employees to work together to reach the main goals of the company.
There are also other smaller ways which give the employees confidence of the new system. One of them is to provide the employees with evidence that the sacrifices which were made were worth it. The company could also give positive feedback to the employees to maintain the confidence. The managers of the departments could also be ‘kept happy’; this would mean that the company could insure that the system works accurately for them. If the managers were happy they would motivate the employees who work in the specific departments for them. These points can also be linked back to JOF which would also help them if they did decide to implement a new information system.
Become Committed to the Change
When a new information system has been implemented into a company, it would need to ensure that it would be committed to the change which is made. This would involve the entire internal organisation. There many ‘soft’ elements that can be changed which would involve mainly the employees. There could be a survey which would find out how the employees within the company would feel about the new information system after it had been implemented. There could also be individual interviews and focus groups which would be able to analyse the thoughts and views of the employees. If the new information system was implanted within JOF, they would also be able to understand how the employees within the company would feel.
The company could also motivate the employees with rewards and appraisal. This could also ensure the employees are satisfied with the new information system. There could also be a regular change in the staff training which would also ensure that all of the employees have an equal understanding of what they need to do. This would also give the employees more confidence about information system. Once the employees have gained confidence they could also learn to maintain the information system to a certain level and understand certain aspects of implementing the change. This type of confidence would also give the employees morale. This could also be included if JOF had a new information system implemented.
Strategy and Plan for the Implementation of Proposed IS System, Organisation Structures, Job Roles and Ways of Thinking
The general approach is to implement all of the IS alongside any of the organisations current systems, even if they are mainly currently paper based. This will avoid any downtime that could occur because of possible errors with the design of the systems.
Each of the departments within JOF has their own individual processes and views on the organisation. This means that the departments will not have the same IS, instead each department has an IS that is appropriate for its needs.
To make the implementation of the new IS as smooth as possible, the suggested plan is to make sure that all of the IS are put into place within a week of the installation. This will then eliminate the need to implement it alongside the current systems as they will have been tested within a smaller department in the company.
Job roles and positions within the company will not be changed, but they will have new systems in place that will make performing everyday business takes easier for JOF employees. To benefit the most from the new IS that are being implemented into JOF, it is suggested that all employees are trained on how to use the systems before they go live.
The warehouse system that was already in place has been completely computerized, making the functions of this department more efficient and it allows the company to have real time stock updates of products currently in the warehouse.
The introduction of a web order system, JOF will be able to receive orders from a wider customer market and it should increase the numbers of sales the company can obtain compared to the previous fax/phone/paper based system.
With the new warehouse system, it enables JOF to offer customers and the organization a much more improved delivery system, where customers/employees can track product orders and even the delivery vehicles.
Once our proposed IS are installed and running, it connects all three of the JOF warehouses. Executives and employees can then share information with all other departments with the use of an electronic data interchange (EDI).
Finally the launch and installation of all these IS will then be able to make use of a crisis management system, otherwise known as disaster recover. With the use of this alongside the IS, the company’s data is automatically backed up and mirrored to a second backup server so that if any disasters occur JOF can become fully operational within the hour.
Conclusion
In conclusion, once all of the proposed information systems are in place and working correctly, this will enable staff to perform more efficiently and is one of the main reasons for the implementation of the IS within JOF. This is achieved by all the IS linking together to collect, gather, store and manipulate various different data throughout the different departments in JOF.
Another main cause for the implementation of new IS was to save time and money. As everything was previously paper based eliminating time wastage in the order process. All of this process is now automated through the use of both TPS and WMS. The TPS enables the company to keep records of all transactions taken through all means of sale offered to customers, while the WMS keeps track of all the stock coming into the business and going out. With these systems in place the delay in which the company previously had between the orders being taken and dispatched is now more efficient and quicker, keeping and improving customer satisfaction with JOF.
Overall our proposition to implement a new IS will vastly improve your competitive edge in today’s market.
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