Discussion
Discuss about the Competitive Advantages and Strategic Information Systems.
Information systems (IS) are today used to integrate business with information technology. In their functions IS collaborate enterprise activities with information modules to establish effective communication channels. These channels are then used by organizations to make accurate and timely decisions. Moreover, they facilitate customer engagement where a mutually beneficial relationship is developed between clients and business. A similar objective is held by Animal After Hour Services (AAHS), who envisions an IS to facilitate their daily activities. This system should share data with the staff and customers while maintaining its integrity. As such, this short report analyses the AAHS case study while providing recommendations to its IS requirements. In all, a basic structure is followed having the general discussion of the items in question and later on a recommendation of the system to be used.
Types of Information Systems: IS are integrated components that collect, process and store data to provide variable information (knowledge) for decision making. These business and IT elements provide organizations the basis for management operations such as those done by AAHS. IS would be important to AAHS as they would facilitate the interaction of the business with the customers while increasing its competitive advantage. Now, several types of IS exist depending on the functions and requirements of business (Zwass 2018). There are transaction processing systems (TPS) that serve the basic operations of firms including the daily routines and activities. Office automation systems (OAS) are other examples that are widely used to manage information more so, through the controls of the managers (Al-Mamary, Shamsuddin & Aziati 2014). Management information system (MIS) on the other hand define the crucial IS that collect and process data for business functions. Finally, there are decision support systems (DSS) that help managers make semi-structural decisions.
AAHS Business and System Problems: Several problems facing AAHS have led the founder to consider the solutions of IS. These problems although independent in themselves are linked by the need for information collaboration. As such, the most critical problem is the need for information management. Nevertheless, in all, AAHS faces the following issues:
- IS Culture – AAHS lacks a way to manage its data from the point of collection to delivery to the customers, which undermines its business and functional objectives.
- Security of information – having the data in place requires a means to securely share it to all members. In its current state, the business does not have a way to manage this requirement.
- Integrating its functions – AAHS wants to share resources with all its branches, staff, and customers, a function that is currently done using manual means e.g. phone calls.
- Scaling information – due to its growth AAHS lacks the means to share its resources more so, data which is ever growing with the number of branches it opens (Lander 2018).
AAHS Information Requirement: The data needed to support the operations of the business define the information requirements. Through these elements, system analysts also develop the necessary functional specifications of IS (Alter 2018). In this case, AAHS has the following requirements; transactions, inventory, and master records (for the employee, vendors, and customers). Transaction information helps AAHS to identify the most lucrative practices that give the best return to the business. For instance, dental treatment may give better returns as compared to other animal treatments. Therefore the business can try to focus on this venture which can boost its market edge. A similar outcome is seen with the inventory data as it facilitates the choice for the best vendors and suppliers based on their returns (Hemmatfar et al. 2010). Finally, master records manage employees and their resources as well as offer insights into the needs of the customers.
Role of Intranet, Extranet, and the Internet
AAHS Specific IS: Two general IS are needed by AAHS; Transaction Processing System (TPS) and Decision Support Systems (DSS). These systems would not only meet decision demands of the business but would also fulfill the requirements identified above. In the first instance, the DSS while integrating office automation and management systems, would collect as well as process all the information used in the veterinary business. Thereafter, using scenarios and simulation it would help predict future outcomes thus the management would base their actions on its factual insights. Furthermore, through past records, as stored in the system, the company would learn from past experiences (knowledge management) (Asemi, Safari and Zavareh 2011). Secondly, because the TPS manages all the affiliated resources such as inventory, sales, and employees, the organization would track its functional activities. Therefore, efficient practices e.g. the best working hours would be identified. Moreover, the best employees would be rewarded similarly to the incentives that would be given to returning customers. As such, these systems would provide the basis for all business actions.
Role of Intranet, Extranet, and the Internet: Computer networks offer new avenues for communication that are not limited by physical boundaries. AAHS can use these networking technologies/models to enhance its collaboration and communication. First, the intranet as a private and restricted network of an organization can be used to facilitate in-house activities. The management can, therefore, share resources and communicate to its employees (Moussa 2016). Secondly, the extranet, which serves as the external version of the intranet and is often seen as a connection of two or more networks. Thus, AAHS can develop a wider network using virtual private networks to connect customers and suppliers. This action can facilitate personalized communication which can improve the company’s customer interaction (Fredman 2018). Finally, the internet as a global network can increase AAHS digital footprint. Essentially, potential customers without access to the extranet can communicate to the business through the World Wide Web.
Change Management: If introduced, an IS would serve as a new component in AAHS business. While it is a welcome development, it stands as a significant change in the way the organization’s activities are conducted. As such, it would be challenging to both the management and employees. However, with proper planning, it can follow a smooth transition. To start with, AAHS should involve the employees in the implementation process, formally communicating the new changes. Secondly, the business can assess the feelings of these individuals with regards to the proposed change. This evaluation would help integrate their suggestions into the final application thus boost its usability. Thirdly, the management must delegate the different stages of the change to make the employees feel as if they are part of the development (Stark 2017). Fourthly, the communication channels must be expanded to mitigate any risks or limitations. Finally, a firm yet flexible mindset should be used to meet the goals set at the start of the change.
Change Management
Security and Ethical Issues: IS introduce the security and privacy considerations of information technology. In general, AAHS system would have to deal with cybersecurity where intrusions in the forms of identity theft, phishing, and viruses among many others would arise. Furthermore, based on the user’s awareness these systems would be vulnerable to independent attacks or losses due to negligence. Ethically, data confidentiality would come into question as the employees would have access to sensitive data. These people would thus require a good moral balance to maintain the integrity of this resource. As a solution to these issues, the business would have to implement an effective security policy (O’Brien, Marakas and Behl 2018). This policy would dictate the cybersecurity measures used as well as the access limitations of each stakeholder. Also, facilities such as firewalls, access control, and intrusion detection system would be used. Finally, the staff would sign bidding agreements to uphold the customer’s confidentiality or face severe consequences.
Information systems as a subset of information technology improve business by providing the basis for factual decisions. Through IS, enterprises can improve profits while adequately engaging their customers. AAHS is an emerging business whose activities are in need of an efficient management information system. By employing the functions of IS, AAHS can improve its competitive advantage, control its inventory and increase its locations collaboration. Therefore, a two-part information system is proposed having the functionalities of a TPS and a DSS. This application would serve to enhance the efficiency of AAHS functions by managing the organization’s data and decisions needs. In all, IS would propel AAHS to the next level by addressing its data requirements.
References
Al-Mamary, Y., Shamsuddin, A & Aziati, N. 2014. The Role of Different Types of Information Systems in Business Organizations: A Review. International Journal of Research, 1(7), pp.333-338. Available at https://pdfs.semanticscholar.org/485f/9cfdc60ba6494866a82af81084e31ae21b9e.pdf. Accessed 19 May 2018
Alter, S. 2018. How Effective Managers Use Information Systems. Harvard Business Review. Available at: https://hbr.org/1976/11/how-effective-managers-use-information-systems. Accessed 19 May 2018
Asemi, A,. Safari, A & Zavareh, A. 2011. The Role of Management Information System (MIS) and Decision Support System (DSS) for Manager’s Decision Making Process. International Journal of Business and Management, 6(7), pp. 167-171. Available at: https://www.ccsenet.org/journal/index.php/ijbm/article/download/8940/7938. Accessed 19 May 2018
Fredman, J. 2018. Business Uses of the Internet, Intranets & Extranets. Chron. Available at: https://smallbusiness.chron.com/business-uses-internet-intranets-extranets-62042.html. Accessed 19 May 2018
Hemmatfar, M,. Salehi, M & Bayat, M. 2010. Competitive Advantages and Strategic Information Systems. International Journal of Business and Management, 5(7). Available at: https://pdfs.semanticscholar.org/8059/ad51063c06817675194fc9eca751a292d6a0.pdf. Accessed 19 May 2018
Lander, S. 2018. Common Problems in Management Information Systems. AZ Central. Available at: https://yourbusiness.azcentral.com/common-problems-management-information-systems-29126.html. Accessed 19 May 2018
Moussa, M. 2016. Internet, Intranets and Extranets in Organizations: An Integrative Literature Review. Research gate. Available at: https://www.researchgate.net/publication/306031154_Internet_Intranets_and_Extranets_in_Organizations_An_Integrative_Literature_Review. Accessed 19 May 2018
O’Brien, J., Marakas, G & Behl, R. 2018. Security and Ethical Challenges. Management Information Systems. Available at: https://highered.mheducation.com/sites/007014494x/student_view0/chapter13/index.html. Accessed 19 May 2018
Stark, P. 2018. 8 Tips to Help Managers and Employees Deal with Organizational Change. Peter Barron Stark. Available at: https://peterstark.com/managers-employees-organizational-change/. Accessed 19 May 2018
Zwass, V. 2018. Information system. Available at: https://www.britannica.com/topic/information-system. Accessed 19 May 2018
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