Current System and Advantages/Disadvantages
The existing system in ABC timber and hardware is such that there are a lot of information in the system which the managers use. It has a huge volume of database but when the senior manager of sales retire then the new breed of managers find it difficult to handle. The four advantages and disadvantages of the existing system are:
Advantages:
- State of the art accounting system and hence more user friendly in terms of showing the results
- Details of the purchasing activities is available and hence it will help the operations and finance departments to also analyse the demand -supply requirements of the company
- Centralized system where all data are kept together and hence cost effective in terms of infrastructure support
- There is sufficient information in the files which could be used in training the next generation employees for a better understanding of the company
Disadvantages:
- Segregation of information is not done.
- Distribution of information is not done properly which is why new employees find it difficult to handle.
- Upgradation of software is not possible in a centralized database system as it can damage the old files
- Departmental interaction must be increased for a smoother system
Mobile and cloud computing would be very helpful in this organization. It is because the cloud computing system helps in greater amount of interaction between company, suppliers and distributors. The market trend analysis and projection reports, detailed accounting measures and implications will help ABC timber and hardware in having a competitive advantage over its rivals in the market. As it is a hardware manufacturing company hence the assembly line and inventory management will become easier. So through continuous monitoring the evaluation of the stock situation of the company and management of the selling process will become easier. ABC timber and hardware.
The planning activity of the development would begin with the assessment of the current situation. Based on the effectiveness and requirement of the 12 branches the information management system would be built. As there is one sales representative for each branch hence an automated software update system should be enabled so that all the branches can have information regarding the daily sales activities and stock remaining on a weekly basis. This will improve the communication and collaboration between these branches. The managers in the marketing department should be able to analyse and forecast the market trend before its rivals in order to gain an advantage. Analytics and cloud computing is helpful as it provides details on the pattern of buying based on age, gender, location, income and various other parameters.
As the sales executives have a cordial relationship with the customers hence custom made services depending on the needs and ability to pay could be provided to them. The company needs to build a number of software porotypes and test it on their platform to see which one is working. Financial reports, confidential documents, forecasting and a host of other important things should be worked on for a systematic business process.
Expert trainers need to be brought in and train the employees of ABC timber and hardware in dealing with the software upgradation. The employees of the company also needs to be trained on the operating system and need based upgradation which will clarify the problems within a short span of time. Data security is a very important aspect that the employees need to be told so that they don’t share confidential data. As software’s can be misused hence emergency response team should be prepared within the company. Through this sudden problems arising in the course of business in a branch or head-office could be tackled easily. A team of in-house experts in information system management must be recruited and trained as in future when the company expands managing large volume of information becomes easy.
Proposed Plan and Steps
The stakeholders of ABC timber and hardware are the customers, employees and creditors. The customers are the ones who are buying hardware’s from any of the branches, the financial institutions like banks and private equity groups are the creditor’s and all the employees in the direct payroll of the company are the stakeholders. The government is also a stakeholder as ABC timber and hardware pays taxes to the government and follows its rules and regulations. The firm has to keep in mind the interests of these stakeholders while designing the information management system. Shareholders for example would always look for instant updates on the financial performance on a monthly basis as well as the volume sales.
The human resources which are required in building up the information system would consist of software engineers and one managers from each marketing, operations and finance departments who would specifically talk about the requirements. Depending on the needs of the manager the system development would be done on a customized way. The financial requirement would be an increase in the budget allocation of software upgradation. Information management system is not a onetime process but a continuous modification, upgradation and maintenance is required for which trained employees need to be hired on a permanent basis. Physical resources are already there as it has been said that ABC timber and hardware has a state of the art infrastructure.
There should be an intranet facility in the company so that information flow within the different branches of the organization can take place in a smooth manner. Sales reports must be available to all the branches and based on their performance projected targets should be set by the organization. In addition to this the budget of the company should be involving the costs that are incurred in the development of the information management systems. Better co-ordination of the departments and their involvement in the decision-making would be very helpful in the improvement of the information system.
Organizing of seminars, talk shows and providing incentive to the employees for using the information management system effectively would encourage better and accurate use of the system. The management of ABC timber and hardware must interact more with the employees regarding the importance of change management. Moreover the benefits of the system implementation need to be clearly communicated to the employees. Salary and promotion should be added incentives to the employees who will be able to handle the software’s effectively. These activities would increase the interest of the employees in getting hold of the upgradation. The increased usability of the technology will help in the smooth working and effective communication within the departments of the organization and understanding of the market becomes easier.
Considerations for Stakeholders and HR Needs
The expected outcomes from the utility of the software should be matched with the actual outcomes and from there the accuracy will be judged. The decision-making of the company should become easier and more informed choices would be exercised for the improved performance. Systematic analysis of the financial performance of ABC timber and hardware would be done so as to compare the situation before and after the implementation of the system. The gap between the expected outcomes and the original must be fulfilled and the employees should be in a better position to improve their efficiency and work effectively in meeting the target.
The two important procedures for effective running of information management system includes:
Delivery of tangible and visible benefits: The information system should be able to provide results which are visible to the stakeholders at large. Increase in sales volume, improvement in financial performance are some of the things which would justify the use of information management system. Setting realistic goals for ABC timber and hardware in the short-terms would break-down the objectives of the company into various segments and fulfilling this will be sufficient enough in meeting the long-term business objectives.
Business needs prioritization: ABC timber and hardware needs to work on the core competencies and based on the priority software designing and usage should be done.
ABC timber and hardware will have to follow the Information Technology act and make sure that sensitive information is not lost to rival companies in the process. The management of the organization must be able to inculcate a sense of responsibility among the employees so that unnecessary leakage of information could be prevented. Also the intellectual property rights, patents and trademark issues which arise from copying design or other exclusive features from rival organizations need to be assessed. Maintaining ethical issues will help the company in avoiding any legal hassles in the course of doing the business.
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