Understanding of the principles of systems theory provides a means of building better and more appropriate systems within a business organisation. (Elliot, 2004)
Looking at how TGL work, and the inputs for TGL are likely to be the raw material involved in production of clothing, labour and the equipment, etc.
Using data flow diagram I will see how the information flows through the different departments
Data flow diagram (DFD’s) is a method of data-oriented systems. A data flow diagram is a graphic representation of a system. With a dataflow diagram, users are able to visualize how the system will operate, what the system will accomplish, and how the system will be implemented. How any system is developed can be determined through a dataflow diagram.
Below is a context diagram (Leve0) for TGL stock order system. A context diagram is a general and broad representation of an information system. The system is represented by a single process circle where all the activity takes place for that particular system. Furthermore, the context diagram shows the extent of the systems boundaries. In the above diagram the systems boundaries are shown by the circle bounding the system; in this case the TGL Stock Order system. The Level 0 DFD shows all the external entities that interact with the system and the data flows between those external entities and the system. (indicated by the square boxes).
Level 0 Data flow Diagram for Stock order
After the level 0, to look at the process in more detail, a level 1 Diagram is used to show the sub processes that are happening within the processing circle for TGL. The diagram clearly and logically shows the process of stock order.
To see Level 1 Data Flow diagram of TGL stock order see appendix A.
Data flow diagram is one of analysis tool that helps businesses to increase software productivity and the quality of the system. The process and data flow is easy to understand from one process moving to another. It will make the work efficient, as well as easier to understand.
Networks
The main purpose of a network is to simply connect a group, if not, 2 computers to together so that they can share information from each other. It also allows users to share files and peripherals such as modems, printers, software etc. Linking computers in a local network is called a Local Area Network (LAN).
In networks there is also Wide Area Networks (WAN), which spans a relatively large geographical area. These are to connect computers on different sites and are used over the internet.
For an in-depth analysis of Networks See Appendix B.
Recommendation
Concerning the topology, (see appendix for more information), for connection of each of the computers, I would highly recommend a Star topology. This can easily be used on a WAN network.
A star topology may be the easiest to understand. The star topology is one of the most common network topologies found in most offices and organisations because of the cost and the ease of troubleshooting. If one computer on the star topology fails, then only the failed computer is unable to send or receive data. The remainder of the network functions normally. However, in this topology each computer is connected to a central hub or switch, if this device fails, the entire network fails.
Although the company has grown, in comparison to many other clothing manufactures they are still very small. Due to the current size of TGL, both of these Networks are important. Local and Wide Area Networks (LAN / WAN) are integral to the future success of the firm. .
A company like TGL would use both types of networks, LAN for connecting each unit internally, and WAN to inter connect all their offices and units.
Having a LAN in a unit, would be good for communication and sharing files and information. However I think the 3 units should be connected to the mainframe which should be at Head Office. This allows easy access for firms. A mainframe network consists of a many PC terminals linked to a master computer called the mainframe, where all the processing and most of the information are stored. Although having all the information stored in one area may cause an over reliance on one computer, which could have a knock on effect on other computers if something went wrong.
I also recommend the use of a client server network, this involves the use of one, more powerful computer which is responsible for printing, the maintenance of files and any peripherals connected to the network. It will allow staff to communicate with each other and also computers can access all the network facilities with ease. The fact it is more flexible than the other servers than the peer-to-peer server, it’s easier to update, and monitor.
One of the problems of this system is that clients are dependant on the server, and therefore the server needs to be administrated properly and looked after to reinsure that there is no problems with the system. If the server goes down, the whole company is affected if it isn’t backed up properly.
Moreover preventing unauthorised access to company information and computer networks is a vital part for any business, especially seeing technology is becoming ever important. Computer hacking, and other attacks on computers exist. It is simply something businesses must deal with, and the risks of intruders increases as businesses become connected to the internet, connect to the internet constantly. It is imperative that the business organization maintains state of the art tools to combat security threats.
Use of passwords, physical security and firewalls, will all help. When implemented correctly, firewalls can control access both to and from a network. They can be configured to keep unauthorized or outside users from gaining access to internal or private networks and services. This form of security controls offer protection but are limited, although a lot of the limitations can be fixed it comes at a higher price. However with important banking and financial information it is important TGL make every effort to invest in security, and reduce vulnerability to network attacks.
It is no longer an issue for managers to decide if security is needed, what security is needed for their business. Those that do not decide to secure their networks can face costs in the millions.
Another point on this matter is that, I suggest the company to bring in a reliable team of engineers handling all daily operations of the network, including monitoring, maintenance, general trouble shooting and performance analysis. Problems will reduce the quality and effectiveness of work and cost TGL money. So it is important to have a reliable mainframe, server and network security, with a good team following it. This will then set you on the way of having a stable and reliable network.
System Recommendations
They are a lot of different systems packages and software available, suitable for larger and the smaller firms. Many packages are often expensive, I think its is important for TGL to finding a package suitable for the size and structure of the company.
Initially looking at accounting systems which are important to managers in the aspects of planning, control and decision making as it holds information for marketing and sales, and the company’s current financial situation that the management need. In the past, companies were dependent upon traditional accounting methods (paper based) in order to help them with the financial information they needed. They were often misleading and sometimes unreliable, hence accounting software was developed to get this information
Accounting information may helps managers to plan, achieve goals and even focus their attention on specific issues which need to be looked at. They provide efficient delivery of information needed to perform necessary accounting work and helps deliver informative data to users.
The key modules or characteristics we should be looking for in a accounting system are:
- Accounts receivable- Where the company
- Accounts payable-where the company enters its bills and pays money it owes
- Billing-where the company produces invoices to clients/customers
- Stock/Inventory-where the company keeps control of its inventory
- Purchase Order-where the company orders inventory
- Sales Order-where the company records customer order for the supply of inventory
Source: wikipedia
Now looking Human Resource Management (HRM), HRM is needed by firms in order for them to improve the moral of the workforce hence increasing the working efficiency of the firm. We also need to look at Human Resource Management systems which should help them to organise and manage HR, payroll and how employees work. More importantly HRM systems should allow them to reduce costs, save time and improve profitability (Buhler, 2002). HRM systems are typically geared towards managing human resources more efficiently.
An outline of what we should be looking for in a HRM system:
- Attendance control
- Employee rota’s
- COBRA administration
- Payroll
- Performance management
- Reward system
Recommendation
For accounting the SAGE 1000 seems to have a lot good qualities. This is probably one of the most popular companies in terms of accounting systems. It enables businesses do their accounts in hours instead of days. The software provides a great foundation in basic, intermediate and advanced tasks.
SAGE 1000 can be extremely valuable, it implements a great deal tools that a changing business can use such as; accounts, payroll and forecasting and fits all the functions covered above. However this is an integrating the software which can be ran by different departments. It also covers areas such as the Supply Chain, Manufacturing, Distribution, Sales Management etc. TGL can enjoy greater efficiency and experience fewer errors with such packages.
It is expensive, but the fact that the sage is easy to use and can be used by more or less anybody. It has all the features that a firm like TGL need. With its user friendly interface can be used with great efficiency.
Looking in to HRM software JD Edwards EnterpriseOne seems to stand out the most. Renamed by Oracle, it was previously known as Peoplesoft. It is basically multifunctional software. Apart from it performing the HRM software functions, it also allows businesses to become more effective in terms of distribution, manufacturing, supply and chain and other vertical market.
This system uses collaborative Human Resource Management applications to help organise and manage HR, payroll, time accounting and employee performance. It maintains a database of all the employees, successes/failures, length of employment, etc which aids management in performance management and therefore rewarding or reprimanding their staff. It ticks all the boxes, in a HRM system and should really be considered by TGL.
In terms of implementing these systems, a Rapid application development process may have to use to implement the systems. “The term Rapid Applications Development (RAD) is an umbrella term that uses a number of tools and techniques to speed the information systems development process.” (Elliot, 2001). With the RAD process there is a high level of user involvement in the development process to aid in communications. What are needed are highly skilled, analysts and technical specialists. This can be an expensive process.
However TGL could always use outsourcing and get everything done by another company who use these systems. Although it would be expensive, TGL will not have to use a good deal of money to train staff. However it does have his downfalls, with an over reliance on the vendor as well as having security risks, it can be disastrous for the firm.
In order for the IS to be benefiting for a company it has to be implemented correctly. The employees and the staff of the company should be well informed about the new system so that they will be able to use it so that the system will become more efficient. With ready made packages like I have recommended, it should be fairly quick, as they are focused on being user friendly.
E-business is the way of the future
“E-business (electronic business), derived from such terms as "e-mail" and "e-commerce," is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners.” (Nelson, 2001)
Due to the ever changing way that business is conducted. E-Business is no longer about promising future profitability relying solely on the benefits of the internet technology. E-business is about using Internet technologies to transform key business processes. It is about strengthening the company’s relationship with its customer, suppliers and increasing efficiency. Using the internet for research or even communicating via the internet is E-business. E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. All of which will help with the smooth running of TGL, it makes business much quicker, and easier. (Liautaud, 2000).
However it doesn’t stop there, E-business will allow TGL to reach narrow market segments through customized content, through the information they can receive. It can also increase purchasing opportunities and options for TGL, looking at different suppliers as well as opening up to new consumers (Liautaud, 2000). However like with everything there are disadvantages and the biggest is whether they can incorporate the e-Business in to their current system to suit their needs. This is often challenging and may take some time for TGL to get use to.
With concerns of TGL business model and what approach they should take, I think the obvious one is business-to-business approach, which is there current way of doing business. An E-business model is an approach a company will take to become a profitable business on the Internet. A business-to-business (B2B) model is explained as being“…driven from two sides. At the pragmatic level are businesses looking to use technology to develop improved ways of working and relationships with trading partners up and down the supply chain. At the other end of the spectrum are the e-commerce product and service providers who are developing new ideas and concepts and hoping that some will fly.”
What we know from the way TGL is operating this can be easily done, B2B incorporate tools to manage supply chain and distribution of products and information. Furthermore strict B2B websites are typically a way for companies to interact with suppliers and distributors. However with TGL wanting to sell direct to the consumer, a business-to-consumer (B2C) is the most appropriate. They will sell direct to their consumers or market. B2C is more sales focused on selling to consumers. After looking at current research online sales are said to rise to 32% this year (Emily Seares, 2008). Signs of more people shopping online should be on TGL’s mind. It is a huge market they are yet to exploit. What we do know is that this market is highly competitive, and is dominated by many large businesses and firms. It is a risk but for me it is imperative TGL exploit this as soon as possible. Having a website and e-commerce could help the company grow. The internet would open a huge market for TGL would probably help them sell their products on a global scale.
TGL’s website, its design is vital. There is much to be said about first impressions and a website can be just that for a company. If the website is poorly designed or is difficult to navigate it can possibly turn the consumer away from the company and lose potential business. To have a good website which will appeal to customers with easy navigation for customers will create efficiency and easy service for them. Online security needs to be considered for secure payments of goods.
The site should offer information on not only product offerings but also corporate or agency information like employment opportunities. On the whole however the website should be based around selling to the consumers and with some space added for feedback and customer support. In any case, the site serves to improve efficiencies within the firm to market their particular offerings.
It is important that TGL give thorough thought to utilize the correct e-business model for their business and provide the content needed to attract and retain the desired customers. Regardless of the model chosen, the intent of having a website online is to provide increased support, cost savings and convenience to the customer and provide efficiencies to the company.
Conclusion
Information Systems has a growing importance in business today. It has grown fast in the last few years and it continue to grow at an even faster rate. Information systems have been used to solve a wide variety of common but critical business problems.
At present TGL have a lot to look forward to, systems can sometime take time to fit in and have initial problems but in the long-term will be very beneficial for the firm. IS will help TGL to increase profits, expand their performance and position in the industry and gain a competitive edge. They will develop more as a company and will certainly give them the chance to compete with larger firms in the market. Technology is the future and firms need to embrace it or risk falling behind.
Appendix A
Level 1 Data flow Diagram for Stock order
Appendix B
A computer communications system limited to no more than a few miles covering a small geographic area, like a home, office, or group of buildings
LAN’s can be used by organisations internally. This allows companies to access their own databases for customer and employee records. Usually the transfer rate of this data is very quick, and normally instantly accessed.
The data stored by a company or business is on a server. This Server is connected to many workstations and is the main source of data. The fact that anyone in an organisation can access information on the server simultaneously is one of its biggest advantages.
However having it all on one server is probably one of the major disadvantages. If the file server is damaged then the whole company may suffer.
Wide Area Network is a network connecting computers within very large areas, such as states, countries, and the world. The Internet is the best example of a WAN network
WAN can be used by businesses to connect companies over large distances i.e. connecting devices kilometres away.
Common problems with any kind of network is the spreading of viruses, the system becoming corrupted or going down, and also issues with hackers stealing valuable information.
Network Topologies
-
Ring Network-A ring network, which is a LAN, the computers are connected by a single loop of cable, the data signals travel around the loop in one direction, passing through each computer. Its main advantages are that it is relatively easy to install compared to the others, however a break in one of the cable may affect the whole network.
-
Bus Network- A bus network, an arrangement in a LAN, in which all computers are connected to a single cable or backbone, by a transceiver either directly or by using a short drop cable. All ends of the cable must be terminated by a special terminator. This system works well if the channels are not too heavily loaded.
-
Star Network- A star network is when all computers (workstations or other devices) are directly connected to a central computer. This is a common topology for WAN in large companies which have a mainframe computer at the Head office and computer facilities at each branch. Its main advantage is that the loss of one workstation would not affect the other, however if the central computer fails, so does the network.
-
Hierarchical Network- A hierarchical network integrate star topologies together onto a bus. The computers are connected in groups of star-configured workstations that branch out from a primary workstation. This topology is easy to extend. When new users need to be added, it is simply a matter of adding a new hub. It also is easy to control because the primary computer provides centralised management and monitoring.
-
Hybrid Network- Hybrid networks use a combination of any two or more topologies, to make a single network.
References:
-
Harry, M (1997) Information Systems in Business, 2nd Ed. Pitman
-
Elliot, G (2004) Global Business Information Technology: An Integrated Systems Approach. Addison Wesley
-
Mitchell, B. Network Topologies, [Internet] About.com [Accessed: 16th April 2008]
-
Chellis J, (1998) Networking Essentials Study Guide, 2nd Ed. John Wiley & Sons
-
-
Buhler P, (2002). Human Resource Management. Adams Media Corporation.
-
-
Nelson, T (2001). E-business [Internet] SearchCIO.com [Accessed: 20th April 2008]
-
Liautaud B, (2000) E-Business Intelligence: Turning Information into Knowledge into Profit, McGraw-Hill Professional
-
Mari, A (2008) Online sales still high despite downturn [Internet] Management cosultancy [Accessed: 23rd April 2008]
-
E-Commerce - Exploiting the Business to Business Model [Internet] National computing centre [Accessed: 23rd April 2008]
Bibliography
Lacity, M (1995). Beyond the Information Systems Outsourcing Bandwagon, John Wiley & Sons
Goonatilake, S (1995). Intelligent systems for Finance and Business, John Wiley & Sons
Lucey, T (1998). Management Information Systems, 8th Ed. Letts Publishing
