Information System Market

To be successful in today’s competitive market place, organizations need access to a business information system that produce accurate and targeted information about customers, markets and competitors. Information system is a combination of people, hardware, software, communication devices, networks and data resources that processes data and information for a specific purpose. The system needs inputs from users to process it using technology devices such as computers to produces output that will be sent to another user or other system via a network and receives a feedback method that controls the operation. Information system helps organization processes and operates its daily works more accurately and easily. The vast majority of information system are developed for and used by people in functional areas To develop information system that addresses the needs of the organization, information system management professionals must process a solid mix of business and technical knowledge.

System Theory:

A system is an organized collection of subsystems that are highly integrated to accomplish an overall goal. The system has various inputs, which go through certain processes to produce certain outputs which together accomplish the overall desired goal for the system, Clark (1994). Systems range from simple to complex. Complex systems are comprised of numerous subsystems that are arranged in hierarchies and integrated to accomplish the overall goal of the system. Each subsystem has its own boundaries of sorts and includes various inputs, processes, outputs and outcomes geared to accomplish an overall goal for the subsystem. Complex systems usually interact with their environments and are thus open systems. A high functioning system continually exchange feedback among its various parts to ensure that they remain closely aligned and focused on achieving the goal of the system. If any of the parts or activities in the system seems weakened or misaligned, the system makes necessary adjustments to more effectively achieve its goals. System theory helps managers view the organizations from a broader perspective that include structures, patterns and events rather than just the events themselves. This is what is known as system thinking which is used as a tool for system analysis.

Trendy Garments Ltd (TGL) is a complex set of interdependent subsystems such as Accounting, Marketing, HRM, Design, Sales, Purchase and Warehousing, Manufacturing, logistics and Dispatch that work collaboratively to accomplish the organization’s goal which is manufacturing and selling various types of male and female garments. TGL is an open system that takes in resources and information from its environment, processes them in different ways and returns a range of products to individuals and systems in its environment. It is highly dependent on its environment for survival.

TGL system characteristics:

Input: TGL take in financial resources mainly from selling its products. Another vital form of input for TGL system is information such as market research data, political, business and customers’ needs and expectations. Buying products from fabric supplier can be considered as an important input.

Process or throughput: In this organization, the subsystems have very specialized functions and their works include several processes that are both distinct and interdependent. For example, the purchase department and warehouse receive input in the form of fabric, through individual effort and group works; they turn the fabric into beautiful garments. The marketing department uses research data to create effective advertisement with the intent to generate revenue. Another important type of organizational throughput is the work of coordinating individual and subsystems effort toward the goal of producing output. This work may be done through formal processes such as staff meetings, planning and decision- making, communication between the departments, discussing and working together.

Output: The most obvious output of TGL organization is manufacturing and selling female and male garments. Another output is advertisement of TGL’s products in the market. Introducing changes in the organization based on the market needs is another important output.

Environment: According to open system theory, TGL interacts with its environment in a complex series of interrelated loops such as individuals, increased use of information system by all business organizations, change in customers’ needs and demands, change in business political rules and policies, competitors, suppliers , contact with local, national and international retailers and whole sellers and expansion of the business. Their success depends on how well their characteristics and behavior align with their environment.

Feedback: Completing the cycle, TGL receives feedback from its environment about its product and services in the forms of sale figures, business reviews, expansion of business, increase in number of employees and marketing search. Individual subsystems may also receive feedback from their immediate environments inside the organization. This information serves as new input and becomes part of a new cycle and potentially shapes future actions.

Goal: TGL’s main goal is to produce the top quality garments for male and female that meets their needs and expectation and has a very well known reputation in the market.

In each system, the information flow between the system and its subsystems should be clear and simple in order to perform its daily work. There is always interrelated communications and integration between all subsystems in the organization, Brynjolfssn & Mendelson (1993). Managers cannot look at each department separately. They should recognize the various parts of the organization and in particular, the interrelations of the parts. For instance, the coordination of the central office with other departments, communication between purchasing department and warehousing department, integration between purchasing department and manufacturing department, coordination between accounting department and purchasing department and so on. This coordination occurs also between the sections of each department. Therefore, we can see that the inputs of one department can be an output for another department and vice versa.

Read also Agile methodology

Selling

Money

Raw materials

Meeting

Planning

Sale figures

Business review

Feedback

Input Process output

Competitors

Political

Environment

TGL System Theory

TGL Business Organization

Manufacture

Accounting

Marketing

Warehouse

Purchasing

TGL Information Flow

Computer Networking:

It is the practice of linking two or more computing devices together for the purpose of sharing data. Networks are built with a mix of computer hardware and computer software. Networking enables people within your business to work with each other and with other people in other locations and other businesses. It enables contact in entirely new ways and entirely new levels across the offices and right around the world. Computer networks allow the users to access remote programs and remote database either of the same organization or from other enterprises. It provides communication possibilities faster than other facilities. Beside these reasons, computer networks reduce costs by sharing hard and software resources. It also has high reliability by having multiple source of supply and having greater flexibility because of possibility to connect devices from various venders. Because of the importance of this technology, decisions of purchase, structure and operation of computer networks cannot be left to technical staff. Management as well has a critical need for understanding the technology of computer network. Good computer network prevents defects in the system and system down all the time, is secure and prevents hackers.

Computer networks fall into two main types: client/server networks and peer to peer networks. A client/server networks use one or more dedicated server to share the files, printers and applications. Peer to peer networks allow any user to share files with any other user and doesn’t require a central dedicated server. The most common networks are Local Area Networks (LAN), Wide Area Networks (WAN) and Internet.

Since TGL is a growing organization, it is in great need for these networks to achieve its goals. TGL needs both LANs and WANs. LAN connects departments in the same area together to share files, work on projects, send instant massages and e-mail massages simultaneously. WANs connect multiple LANs together, usually over large distance. To networks everyone together, servers, router, core switch, switches, fire wall and personal computers are needed. The most suitable design for TGL is client/server network. The system will be used by programming language connected data base. This is easier to implement data, more secure, efficient, time consuming and friendly use for end users. The program must be custom system so that it can be changed based on changes in environment of TGL and can be developed when necessary. The system and data base in the server will be shared between clients and admin. Microsoft windows 2003 will be used for the server and Vista or XP for the client. .net programming language provided with SQL server 2005 is needed. After installing the system, create network accounts for the users (names, passwords). Passwords will be saved in data base. Users should be in data base to use the system. For security purpose, log in appears each time the user open the system. The menu contains each departments and it is friendly use. Create areas on shared disk drives for users to share data files and programs. Each department has its own data base and there is connection between each department data base using data base relation. Users can add, delete and make search according to the organization’s policy while administrators have access to everything in the system and can perform all the related functions.

NETWORK DIAGRAM

DEPT. SWICH

CORE SWICH

MAIN SERVER

BACK UP SERVER

DATA BASE SERVER

ROUTER

Topology refers to the way in which the network of the computers is connected. Each topology is suited to specific task and has its own advantages and disadvantages. The choice of topology is dependent upon: type and number of equipment being used, planned application and rate of data transfer, required response time and cost. There are four major topologies, bus, tree, ring and star. Most networking software support all topologies. Topologies are an important part of network design theory. Therefore, any organization should select the one that best fit its purpose. The best topology for this network would be star topology. Star topology is designed with each node (file server, workstation and peripherals) connected directly to a central network hub. Data on a star network passes through the hub before continuing to its destination. The hub manages and controls all functions of the network. It also acts as a repeater for the data flow. This configuration is common with twisted pair cable. Star topology is easy to install and wire, no disruptions to the network then connecting or removing devices, easy to detect faults and to remove parts, easy to add new workstations, centralized control and centralized network/hub monitoring and prevent traffic collision in data. However, it requires more cable length, if the hub fails, nodes attached are disabled, and more expensive. The protocols used with star configuration are usually Ethernet or Local Talk.

STAR TOPOLOGY

HUB / SWITCH

Accounting and HRM systems:

Accounting information system uses modern information technology resources to provide users with the financial information necessary to manage their organizations. Accounting information systems cover all business functions from backbone accounting transaction processing systems to sophisticated financial management planning and processing systems. The module that you install will depend on factors such as the size and complexity of your organization, your existing financial systems and the expertise of your accounting staff. You have to ensure that your organization’s financial system is handling all its functions. Your goal is to keep your system as simple as possible while meeting your current and potential needs, Elliott (2004). Be sure to take future growth into consideration and evaluate whether you can modify a software package by adding additional modules in the future if the organization expands or you need to revise the system. Modules include:

System manager: control the computerized accounting system.

General ledger: receives entries from other modules, creates key financial documents such as balance sheets, lets users amend information previously posted, records financial transactions not recorded in other modules, creates budgets which allows an organization to track differences between planned and actual business results and creates detailed audit trials.

Accounts receivable: handles the reporting of income owed to an organization from sales, responsible for billing clients, recognizes deposits to bank accounts, usually maintains the master files about customers, has the capacity to print out a list of all money due, identifies the source and notes how long the debt has been outstanding.

Accounts payable: handles the reporting of money due to others, may have the capacity to print computer-generated checks to vendors, maintains master records, permits posting of immediate payments, allows an organization to recognize expenditures and update budgets at the purchase order stage, recognizes costs when the invoice is posted.

Inventory: updates inventory stocks and prices when goods are received, reduces inventories at the time of sale, links the purchase order system to show goods on order, alerts staff when goods need to be reordered.

Fixed assets: tracks key information such as cost, date when put in service, title holder and useful life of fixed assets, may also track model and serial numbers, location, identification tag number, warranty, service information and vendor.

To be able to manage a company efficiently, one should always have full information about each particular business process and the whole company. Accounting cannot always provide top manager with such information because it focuses mostly on the needs of external entities. The purpose of management accounting is to provide full and trustworthy information necessary for making correct management decisions and plans. The management accounting reflects all factual expenses and revenues of the organization so a top manager can get a clear picture of the organization operation and make reasonable decisions. Modules include:

Staff/organizational structure management module reflects the organizational structure in the automated system. Departments, sub-departments, and positions are formed according to the company staff list. The staff manager gets the necessary tools for performing their tasks: inputting and accounting the company staff information.

Production management module contains tools for working with the information about all production process components, projects, developers and financial documents.

Customer relationship module is a set of programming interfaces for entering and managing information about organization’s customers.

Revenues/expenses analysis module is a data analysis tool that is necessary to the company managers of all levels. Especially important is the financial accounting because it is the financial analysis that helps determine the company’s financial situation and success.

Reporting module creates individual reports at the top manager’s request apart from the general usual, regulated reports.

Accounting interfacing module exports the necessary data from management accounting system to the external accounting software.

Human resource management allows enterprises to automate many aspects of human resource management with the dual benefits of reducing the workload of HR department as well as increasing the efficiency of the department by standardizing HR processes, Stalinski, (2004). The HR department plays a vital role in ensuring the smooth running of an enterprise. Modules include:

Payroll module automates the payroll process allowing HR to ensure that payroll functions are completed on time and without errors.

Time and labour management module is designed to collate and analyze employee timekeeping information in the processes of organizational cost accounting. By sourcing data directly from the timekeeping devices and methods used to calculate payroll, this module can provide management with valuable data regarding the use of labour resources within the enterprise.

Benefit administration module provides the personnel with the capacity to monitor and manage employees’ participation in a range of benefits programs such as health insurance, pension schemes and profit sharing.

HR management module provides a range of HR solutions ranging from analyses of application data through to the basic demographic data of employees.

Electronic business:

E-business means using the internet or related technologies for any of business operation. This includes managing internal processes such as human resources, financial and administration systems as well as external processes such as sales and marketing, supply of goods and services and customer relationships. The emerging e-business market affords companies of all sizes and types the opportunity to leverage their existing assets, employees, technology infrastructure and information to gain or maintain market share, Li (2007).

TGL can run its business more efficiently, achieve more with fewer resources and for less cost using e-business. This can be accomplished by integrating business system and eliminating duplication of efforts. Using e-business can make TGL administrative and operational activities more efficient through accessing the internet to source information about the industry, suppliers and products and fro general search, streaming traditional physical transactions into electronic transactions, human resources management, customer relationship management and using appropriate project management software. By selling products and services online, an e-business is able to reach a much wider consumers base than any traditional store could ever hope for. An e-business may also use the internet to acquire wholesale products or supplies for in-house production. In addition to buying and selling products, e-business may also handle other traditional business aspects. The use of electronic chat as a form of technical and customer support is an excellent example of this. Using e-mail and private websites as a method for dispensing internal memos is another use of the internet by e-business. Rather than producing time-intensive and costly physical copies for each employee, a central server or e-mail list can serve as an efficient method for distributing necessary information. To remain viable, e-business must adjust to evolving technologies, continually integrate new systems and satisfy a wide variety of consumers. If a business fails to do so, its customers do not have far to go to buy from competitors.

According to Walsh, e-business tools include mobile phones, personal digital assistance (PDA), electronic data interchange, file transfer, facsimile and video conferencing, internets, intranets and extranets. Activities that can be performed using e-business tools include: trading of goods or services online, electronic retailing, use of the internet, intranets or extranets to conduct research and manage business activities, web site marketing, online communications such as e-mail and online training for staff. The way in which you manage your business relationships through e-business is known as:

Business to business (B2B) where organizations trade with each other electronically.

Business to consumer (B2C) where organizations communicate directly with customers electronically.

Consumer to consumer (C2C) where consumers meet in a virtual environment to share information.

TGL can use e-business to communicate with customers, members or suppliers via e-mail, send e-mails to other organizations to order products and services, sell or promote their products, or services via their Web site, use the web to find information such as prices, use the web for research, such as the latest trends, use their Web site as a means of managing the information in their business and use the internet for online banking and paying bills.

To implement e-business strategies, a portal is needed. A portal represents a Web site that provides a single point of access to applications and information that can be hosted on one or many servers. Portals are becoming more and more important to companies such as TGL who have an ever-increasing need to provide employees, partners and customers with an integrated view of applications, information and business processes. Portals meets these needs by allowing companies to build Web sites that combine functionality and resources into a single interface while enforcing business policies, processes and security requirements and providing personalized views of information to end users. A portal is the best solution when a company has the need for several types of Web presence: an intranet for its employees, a secure site for interactions with partners and a public Web site, White (2001).

Portal sites offer visitors the chance to find almost anything they are looking for in one place. They often provide news, sports, and weather information as well as the ability to search the web. Horizontal portals are that aggregate information on a broad range of topics. Vertical portals are more specific because they offer a great deal of information pertaining to a single area of interest and this is what is needed for TGL. Portals that link consumers to online merchants, online shopping malls and auction sites provide several advantages. These portals help users collect information on products and services thus facilitating comparison shopping.

Conclusion:

Information Systems Management is the application of information technology to support the major functions and activities of any business organization. ISM supports the process of collection, manipulation, storage, distribution and utilization of an organization’s information resources, Mursu (2007).

ISM managers and professionals must stay up-to-date with evolving information technologies and have a solid foundation of technical skills to select appropriate technologies and to implement computer-based information systems. Thus, ISM people must be well versed in topics such as systems development tools and techniques, information architecture, network configurations, databases, and systems integration.

They must understand organizational structures, objectives, operations including processes and flow of data between processes and the financial implications related to these factors. Only by understanding these factors can an ism professional committee communicate effectively with users and then design systems that support their needs.

References:

Brynjolfsson. F, & Mendelson. H. (1993) Information System and the Organization of Modern Enterprise. Journal of Organisational Computing.

Clark, R. (1994) The Path of Development of Strategic Information System Theory. http://www.anu.edu.au/people/Roger.Clarke/SOS/StratISTh.html

Elliott, G. (2004) Global Business Information Technology. Addison Wesley, Harlow, England.

http://www.Network Organizations.htm

Kurtyka, J. (2003) The limits of business intelligence: An Organizational Learning Approach. DM Review. pp. 36-41.

Li, F. (2007) What is e-business and does it still matter? International Journal of Information Technology and Management. Vol. 6, no. 2. pp. 125-137.

Mursu, A. etal (2007) Activity Theory in information system research and practice: theoretical underpinnings for an information systems development model. IR information research. Vol. 12, no. 3.

Stalinski, S. (2004) Organizational Intelligence: A System Perspective. Organizational Development Journal. Vol. 22, No. 2.

Walsh, B. Building e-business plan for an e-commerce project networking computing. http://www.networkcomputing.com/917/917f2.html

White, C. (2001) The evolution of e-business portal. DM Review Magazine. http://www.the Evolution of the E-Business Portal.htm

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