Task 2
To improve product and manufacturing performance Super TV will acquire a new computer-aided design (CAD) and computer-aided manufacture (CAM) systems. Computer-aided design permits to create design models on a computer screen. To achieve different design concepts, the structure of the designs can be easily modified and simulated. A great advantage of CAD is that it saves time comparing to manual methods. The three-dimensional drawings can be rotated, tilted and reshaped as required. CAD would make designing TVs much easier and the process and sketches would be more foreseeable (Wikipedia 2007).
Nowadays for TV production and manufacturing companies to be efficient, factory automations have an essential role. One of the most modern techniques is computer-aided manufacture. Super TV is a mass production company and CAM would replace human intervention in the factory assembly line process. With this technology all the necessary parts for televisions can be produced to high standards of accuracy and consistency, especially comparing to manual control processes. The machinery acts by comparing with a design pattern (of size and shape specifications) that is stored in the computer. CAM is also used in application of industrial robots. The amount of work done and its quality in the manufacturing process is a lot higher than of manual labour. The negative side of it is that some workers will lose their jobs or will be forced to switch to another job (Elliott 2004, p.315).
“Integrating computer-aided manufacturing with computer-aided design systems produces quicker and more efficient manufacturing processes. CAD/CAM systems offer the advantages of increased programming accuracy, geometric conformance to design parameters, ability to make minor and often major changes to part configuration and programming metrics within the same system.” (Wikipedia 2007). Especially, since Super TV is entering the highly competitive international market, efficient systems and technologies are crucial factors for the company to be successful.
The development of CAD/CAM system in Super TV can be rather time-consuming and costly. The system can cost up to 50,000 £ (Wikipedia 2007) and a standard three day training – around 530 £ per person (Schott Systeme GmbH 2007). That is why it is so important to choose the right development process. Super TV is in a constantly changing, dynamic and competitive global environment, which requires for the company to develop the new information systems as rapidly as possible. Taking that into account, I would suggest Super TV to choose Dynamic systems development method (DSDM). It was created expanding and improving RAD process. “The DSDM approach uses time-boxing, facilitated workshops, incremental and iterative delivery, and object reuse, as some of its techniques for reducing systems development uncertainty in quick turnaround systems development environments. The aim is to achieve ‘rapid and right’ systems development” (Elliott 2004, p.151). In contrast to the traditional approaches the main focus of DSDM is not on satisfying the contents of a requirements document and conforming to previous deliverables, because the business needs may have changed since the start of the product. Therefore resources and time is fixed for the project, but the requirements are allowed to change. The main benefits of DSDM are just what Super TV needs: it will make users participate in the development process – it makes the final system to be more likely to meet the users’ real business requirements; the employees will be better trained; small development teams allow better communication; and it does not ignore the importance of establishing and publishing systems documentation etc. (Elliott 2004).
For the CAD/CAM systems development to be controlled and guided in the right direction, it has to be in a framework – methodology. It is essential for Super TV to have a systems development methodology to provide a competitive advantage over other companies in the same market and to integrate CAD/CAM systems with rigorous planning, analysis and design and implementation. As the purpose of integrating the new system is to make the work with technology easier and more efficient, I would suggest Multiview as the most suitable and appropriate methodology for Super TV. It is “a hybrid of a number of other methodologies and adopts various tools and techniques that are appropriate to the systems situation” (Elliott 2004, p.232). Like the business environment of Super TV is ever-changing, Multiview is flexible - being a soft systems development approach Multiview also incorporates harder tools and techniques as necessary. It means it concentrates on both human and technical, and also organisational aspects of information systems.
A good computer network is substantial within any organisation. Super TV has ten business units in five major cities. For the company to be efficient it needs to have a good information flow between its business units and the departments within them. That is why a good computer network is crucial for Super TV. I would suggest the company to have local area networks (LAN) in every business unit between the departments in a hierarchical network topology (Elliott 2004, p.383). In a hierarchical network topology computers are connected in a tree-like configuration (see Figure 2). It means that the information would be passed to the necessary departments and the departments could exchange information as well. For example, information about recruiting would go to the HRM department, and if Manufacturing department wanted that information, it would be sent from the HRM department. It makes the company well-organised and LAN enables fast information flow. All the local area networks of the business units should then be connected in a wide area network (WAN) for the information systems (also CAD/CAM) to be able to run simultaneously through out the organisation at its different sites and for the whole business to be easily foreseeable by the management.
Figure 2. Hierarchical network topology (source: Elliott 2004, p.382).
Task 3
Super TV as a hierarchical business has three levels of organisational decision making: operational (TPS), management (MIS) and strategic (EIS) (see Figure 3). Every level has different information systems by its design and composition, because the levels are different “in terms of the decision timeframe, certainty, risk, responsiveness, information structure and application of technology” (Elliott 2004, p.71).
Figure 3. Information systems decision levels within a business organisation (after: Elliott 2004, pg 70).
The operational systems or transaction processing systems (TPS) are with less responsibility, decision risk and impact on strategic goals. Super TV uses and relies on operational systems a lot, as it is a manufacturing business. The inputs are certain and the system processes are mechanical, and decision makings are algorithmic (Elliott 2004, p.71). That is why Super TV heavily relies on TPS. They rarely go wrong, but if they do, the problem has to be solved immediately. For example, the stock control in Super TV is run with a transaction processing system. With TPS it is easy to follow the raw materials which are in the warehouse at the moment and which are supposed to come in near future and also control the produced television level in the warehouse. It also helps to schedule the productions. The system can process big amounts of information and develop a schedule for production. Also payroll system, accounting systems, sales records and others are transaction processing systems. Those are vital things for the organisation, but there is very little decision-making activity in operational systems.
Management information systems (MIS) have characteristics from both the bottom and top levels of business systems. They are used for medium-term budgeting and forecasting (Elliott 2004, p.71). The head of Super TV’s departments or even a whole business unit is considered to be middle management, which use management information systems. MIS use internal and external data to generate meaningful reports for management decision making and personnel information. Often operational systems’ outputs are inputs in MIS. For example, MIS can summarize and convert the information about sales order processing, or purchase order processing into important information for management to make significant long-term decisions about production or purchasing tactics, gaining a competitive advantage over other TV manufacturing companies.
Managing Director of Super TV has to make strategic long-term decisions, which influence the future direction of the company. He uses executive information systems (EIS) to get a support in the process and practice of decision making. “EIS are designed to eliminate information overload and provide clear, summarised information that usually highlights opportunities or weaknesses for the organisation” (Elliott 2004, p.76). With this critical information Managing Director is aware of the strategic factors for the company, so it is easier to make important long-term decisions. For example, the decision about acquiring a new up to date integrated CAD/CAM system was a strategic decision, which will help Super TV to reach greater efficiency and effectiveness. To make this decision, General Director had to make great research and analyse all the consequences acquiring these systems. EIS processed the necessary data to make a forecast about the usefulness of these systems and Managing Director had to analyse that and make a final decision.
Alongside MIS and EIS “decision support systems (DSS) are specifically used by organisations as support tools within management or strategic decision making. They are usually characterised by levels of expert knowledge built into the base of the system” (Elliott 2004, p.77). DSS evaluates and compares the alternative choices making the decision making a lot easier for managers and Managing Director. For example, choosing to produce either LCD or plasma screens for televisions, DSS could process the strengths and weaknesses of both alternatives and give its advice.
Usually the outputs of the systems from lower levels are inputs in the higher level systems, as I already described it talking about MIS. It means that there is an interaction between different level and department systems. It is clearly foreseeable in appendix 1 and appendix 2. In appendix 1 it is showed how Super TV is divided in different departments. Every department and its sub-systems are in the same colour. Appendix 2 shows information flow in Super TV. It is illustrated that different colour systems interact with each other – it shows how different departments and different level systems cooperate in the company. This interaction is essential for the company and it is possible and efficient only with appropriate network systems, which I described in task 2.
Task 4
“Electronic commerce (EC) is where business transactions take place via telecommunications networks, especially the Internet” (Hussain 2007). In traditional commerce the interaction between a customer and a supplier is purely physical. Customer walks in a store, chooses the suitable TV and pays for it in the store; he can collect the TV himself or require delivering it to his home. But in e-commerce at least one of the factors has to be digital – the product sold, the process or the delivery. TV is a physical product, so it has to be delivered physically as well. It means that in TV business e-commerce means that the customer orders and pays for his TV online. Super TV should exploit this mean of selling, because it would expand its marketplace significantly, especially in international markets. It is a huge marketplace, because many customers prefer shopping online, because it is much more convenient – they can shop any time and from any where in the world, shoppers do not even have to leave their homes to buy a TV. It is easier to find a suitable product for the best price online, and customers can also get the necessary information about a certain product right away.
Business-to-business (B2B) electronic commerce is where organisations trade with one another electronically or have connected information systems that automatically communicate with each other. Business-to-customers (B2C) electronic commerce is when products or services from an organisation are sold directly to customers (Wikipedia 2007). Business-to-business is performed in much higher volumes than business-to-consumer applications. That is why Super TV should focus on that. Routinely trading online with its partners the whole process would be less complicated, because the information systems would control the transactions, and there would be no need of physical contact between the companies, just a person monitoring the processes and negotiating (can be done online as well) with the partners for new contract terms if necessary. But starting to expand its business to e-commerce, also business-to-customer opportunities occur. While in traditional business, Super TV would have to make its own retail stores to practice B2C business (that would mean Super TV would expand from a manufacturing company to being also a retail company, which is perspective, but very complicated to do – requires careful analysing and planning). Whereas starting retail business online is much easier. Alongside with B2B Super TV can offer its TVs for retail prices for regular customers as well – it would just require setting up a different web page, showing the TVs that they offer for a retail price. Offering its products in e-commerce, Super TV would benefit by expanding its marketplace, decreasing its expenses by reduced inventories and overhead and making the connections between its partners much quicker. With the easy information exchange Super TV could also move its manufacturing plants to countries with cheaper labour and supply its customers directly from there. But there are also negative aspects of e-commerce. Even though the costs would decrease, developing an e-commerce can be expensive, but in the long term Super TV would only benefit from it anyway. Also Super TV needs to take into account that TV is a serious purchase and there is a lack of touch and feel online – that could hold back the customers. Customers also do not trust “unknown faceless seller, paperless transactions and electronic money” (Hussain 2007), so that would make it difficult to switch from a physical to a virtual store as well.
Super TV will have to create a separate department for e-commerce under the IT department. Exploiting e-commerce, would effect other departments. Stock control, production, engineering and other processes will not change. Other department functionalities might change. For example, advertisements should be concentrated also on popularising Super TV web site or recruiting department under the HRM department would look for employees with high IT skills, also stream lining the current ways of selling by the Sales department will be necessary. Appendix 3 shows how the information flows in e-commerce and also how it interfaces with other departments. E-commerce would not only require a strong computer network between Super TV departments and business units, but it also needs special Web servers, strong e-commerce software, network servers between the company and its customers and other infrastructures.
Conclusion
Super TV is a hierarchical, well organised and structured organisation. Each department has its own functions, but the good communication and interaction between them makes it possible for the company to work as a whole and very effective. It is mainly thanks to the new information systems. Not only it unites different business units and departments within them, but it also makes the operational processes much easier and it even helps the management to make decisions and the Managing Director to make long-term strategic plans. The new computer-aided design and computer-aided manufacture, developed and integrated with the new information systems, will make the production of televisions a lot quicker and much more efficient. Exploiting electronic business will expand Super TV’s marketplace and will make the business transactions more efficient. This should give Super TV a competitive advantage and make it more profitable and successful in future.
Appendices
Appendix 1. Entity diagram of Super Television.
Appendix 2. Level 1 data flow diagram.
Appendix 3. E-commerce data flow diagram.
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