Understanding The Roles Of Vodafone Telecommunications Information Technology Essay

Vodafone group plc is a global telecommunications company based its headquarter in Newbury, United Kingdom. If measured by the revenues it’s a largest telecommunication company in the world, along with this if measured by the subscribers it’s the worlds second largest just behind the china mobile. As Vodafone is a global company, it is providing services in more than 30 countries not only this Vodafone has other partner networks in 44 different countries. The Vodafone name comes from three different things which are voice, data and fone which reflect to providing services of voice and data over the devices (Mobile phones etc).

The company was formed in the year of 1984 basically as a subsidiary of Racal Electronics Plc. In start the company named as Racal Telecom Limited but it was fully demerged and changed the name as Vodafone Group plc in 1991.

The main objective of this specific report is to probe into the organisation’s information systems, structure of organization, analyze the information requirements, decision making, Business strategies, IS strategy, IT strategy, ethical issues, strength, weaknesses, opportunities, goals and objectives, managerial levels, benefits, and some other environmental factors. Furthermore this report will be the evidence of understanding of the entire studies which is conducted in this module and also the real world market.

Organizational Structure

The number of employees in Vodafone UK is over 10,000. Vodafone aim to provide a fair, safe and flexible workplace which helps to motivates their employees to work hard and to feel engaged and create better environment to the work.

The below is organisation structure of Vodafone group;

Vodafone Group Plc organisation chart

Diagram: Vodafone organizational structure

(www.vodafone.com)

Marketing development organization

As marketing is very important tool to expand the businesses in this modern world. Vodafone is continuously working on it to compete with the market and also fulfil the people’s requirements. Vodafone is using different ways to advertise their products (services) such as Zonal marketing trial, Idle screen, Branded applications and widgets trial, Location based advertising trial and so on. Within these different types of marketing advertisement, Vodafone is keep in touch with the customers to knowing their requirements and also providing them better services.

Mission statement

A mission statement of an organization is very important to indicate itself. It is just a sentence but it is full description of general purpose and intention of that organization. The mission statement tells the employees what they are working for; along with this persuade the customers to buy the products or services. A mission statement is that which define the basic reasons for the existence of an organization and helps legitimise its function in society (Robson, 1997).

Mission statement of Vodafone is;

“We will be the communications leader in an increasingly connected world”

This specific mission statement shows that it is Communication Company / organization, which goal is to become the leader to connect the world rapidly.

Goals and objectives

The goals and objectives play vital role to a company. As this is a modern age and every company is facing challenges to compete with the current market , same Vodafone has some goals which they are trying to reach. Vodafone is continuously working to update and meet the requirement of the customers. To reach on the top and accomplish with the goals Vodafone has some objectives which they are completing step by step.

Below are some goals which Vodafone is willing to achieve;

Create Authenticity in expanding communication technologies.

Connectivity between different devices in future.

To understand and use (web) data in more ways.

To find options and possibilities of energy.

Improvement of services in each part of country.

(www.vodafone.com/start/about_vodafone/future_agenda.html)

Strategy

The strategy of the organization indicates its prospects and also helps to improve the business. Strategy of an organization can be defined as the identification of the purpose of the organization and the plans and action to achieve the purpose (Lynch, 2006). The strategy of Vodafone changes with the passage of time, because in the year of 2006 Vodafone intentions were different according to the year 2009 and 2010. The Strategic focus in 2009 is on operational performance, total communications, emerging markets, capital discipline.

Environmental analysis

Political factor

The political factors are very effective for the organizations. If the political factors are in favor of the organization then it will be easy to navigate and boost the business. It is also said that managers should operate within the laws and regulations of the host country (Gray &Larson 2008). The stability of political issues in the specific region or country and local laws sturdily influence the performance of organization. Without the information of the local laws and regulations there is a possibility of facing penalty which could lead to a big loss. If we have a look on Vodafone globe, we will come to know that its price plans and other services are different according to the country law and demand of nation. So the organization must need to understand and obey the local laws of the country where it is operating.

Economic factor

The economical factors can also have adverse effect on the organization’s profitability and productivity. Vodafone was quite better in economy but because of recent downturns in economy it was affected in some countries. Vodafone Spain reported turnover of euro 6,982 million in the last financial year, 2.6 % less than the previous. (Vodafone 2009). To get economically strong Vodafone is working continuously to improve the economy of the company. Recently Vodafone has extended the services for customers; this could lead to improve the economy.

Social /cultural factor

As Vodafone is expanded in different countries, so they have to understand the requirements and social issues of specific country / region. Vodafone have created social networking and social media sites which helps to communicate and information sharing. Along with this Vodafone have agreements with so many social networking sites to offer the services. Vodafone always put efforts for safe social networking. (www.vodafone.com)

Technological factor

There is technology revolution at this present age. Every day new technology arrives with so many advanced enhancements. It is becoming necessary for an organization to keep update with their technology and to keep with the pace of the modern life, it also play the part to compete with the market. Vodafone is always active to keep update its technology to satisfy the customers and also to fulfil with the modern requirements.

For this Vodafone announced the launch of its latest Digital Living Network Alliance (DLNA) certified Mobile Wi-Fi device, the R201. (Vodafone, aug 2010)

Ecological factors

In a report it is mentioned that there are more than 800 million mobile devices are in use and these are growing every day as new technology is in market. The using and expanding of these devices are not that good for health and ecologically.

Vodafone keeping in mind these all issue that’s why Vodafone Ireland has announced to reduce CO2 emission by 30% by 2011. With the progress Vodafone is also working to create a better environment for future.

SWOT analysis

SWOT analysis is a method of strategic planning which is used to evaluate the Strength, Weaknesses, Opportunities, and Threats related in a project or in any task. SWOT analysis specifies the objectives of the project and also identifies the internal and external factors of the project.

Strength

Vodafone always struggle to make the network outstanding. Vodafone is committed to giving you a network you can depend on. The first priority of Vodafone is make sure that people can use mobile and connect to the internet where they are, and whenever they want. Vodafone competitors are also upgrading their services to persuade the customers but speciality of Vodafone is, its network is expanding but also provides better signal strength indoor and outdoor. Vodafone is keeping in mind to provide a such network which has journey of a call, fast and reliable connections and a network you can trust.

(www.vodafone.com)

Weakness

As every company have some weaknesses, same Vodafone sometimes face such problems. The first weakness of Vodafone is its less connectivity in rural areas. Shares in Vodafone fell to lowest point but still head of Vodafone Company decided to sell the shares. BP overtakes Vodafone amid continued telecoms weakness (www.independent.co.uk). Vodafone got negative return on assets (ROA) underperform the main competitors like BT Group, AT&T and others. The other weakness is Vodafone has about 80% business generate in Europe. Due to these weaknesses Vodafone sometimes face problems to maintain the company standards.

Opportunities

Vodafone has so many opportunities to get benefit of it. Vodafone has expanding network with better services this made Vodafone to create opportunities for customers as well as Vodafone itself. With the passage of time climate is changing also Vodafone is working to tackle this problem with the facility of video and teleconferencing and thorough the other energy efficient machines. The Vodafone policy is full of opportunities for customers and company itself.

Threats

As Vodafone is dominating in the world of communication, so the competitors are the main threats for Vodafone. In start of Vodafone life, there weren’t so many competitors of Vodafone but gradually so many companies come to exist and started the war in the field of telecommunication. As it is expanding network, every day new customers are joining Vodafone, it could create problem in network. So Vodafone need to update their boosters or all other technologies which could lead to calling and data transferring problems. Along with this, as other competitor companies are introducing new services, same Vodafone need to introduce such facilities/services which could keep customers in touch with Vodafone.

Level of Management Information System

There are four level of management, each level supporting different kind of decision process. It works from top to bottom, as top level management which is strategic level makes decision then it ends with the bottom which is Operational level.

These four are defined below;

Strategic level:

This specific level of management is for seniors like, CEO, VIP, and Manger. This type of management usually makes long term decisions like 3 to 10 years.

Recommendation:

Sales and Marketing IS, Manufacturing IS, H R Information system, And Finance and accounting IS.

Management level / Tactical level:

This management level is usually resource allocation decision level. In this management level managers utilise and allocate time, raw material, machinery, funds etc and this is usually for 1 to 3 years.

Recommendation:

Sales and Marketing IS, Manufacturing IS, H R Information system, And Finance and accounting IS.

Knowledge level:

The knowledge level is a additional level of management in which knowledge and data workers work. This level is all about the knowledge of the specific project.

Recommendation:

Sales and Marketing IS, Manufacturing IS, H R Information system, And Finance and accounting IS.

Operational level:

In this bottom part of the management level, managers work day to day to complete the task. Normally in this level, manager makes decisions less than one year.

Recommendation:

Sales and marketing IS, Manufacturing IS, Human Resource IS, and Finance and Accounting IS.

TPS

OAS

KW

MIS

DSS

ESS

Operational Level

Knowledge Level

Management Level

Strategic Level

Diagram: Types of IS and level of working.

Information Systems

An information system can be defined technically as a set of interrelated components that collect process, store and distributed information to support decision making and control in an organization (Laudon & Laudon, 2009). With the help of information system a project could lead to a successful project and can complete on time. Information system provides fast and accurate transaction along with this it provides support for decision making. The information system is the weapon against competitor companies. There are some major information systems which work in each management levels are below.

ESS (Executive support system) work in strategic level.

DSS (Decision support system) work in management level.

MIS (Management information system) work in management level.

KWS (Knowledge working system) work in knowledge level.

OAS (office automation system) work in operational level.

TPS (Transaction processing system) work in operational level.

ESS (Executive support system)

ESS is designed to draw summarized information from MIS and DSS and present graphs and data from many sources through an interface that is easy for senior managers (Laudon & Laudon, 2009). This is top management level and top people of management deal in this level. The chief executive of Vodafone makes final and basic decisions, and all departments head collect the information (data) and present to him for his decision to go throw. The ESS information system manage all the activities happening within the company like sales, purchase, cost etc which helps chief executive to make decisions and start new plans.

DSS (Decision support system)

The DSS helps to navigate the company into right path, because if company is getting loss from present services or technology then it indicate the down turn of the company. With the help of DSS Vodafone sometimes change the price plans and also other changing occurs which are effect for company. The DSS of Vodafone can usually use information from other information systems but they need to get informed from outsource to come up with it.

MIS (Management information system)

Middle management needs system to help with monitoring, controlling, decision – making and administer activity and to work with this, the systems which are use called MIS (Laudon & Laudon, 2009). This information system basically helps to monitoring the activities happening within the company. With the help of this information system managers can check any transaction from thousand of transaction. Managers often need to see, what is going on with the company during it is working to know that, is company is doing fine or not, and MIS helps to do that. This system also provide required reports weekly, monthly or yearly, which helps manager to make decision.

KWS (Knowledge working system)

Knowledge work system or knowledge based information system that support the creation, organization and dissemination of business to employee and mangers throughout a company (O’Brien & Maracas, 2008). This information system helps the organization to find the new ways to reach the success. In Vodafone KWS use to find what new price plans will be appreciable by customers and also how to improve services.

OAS (office automation system)

The OAS usually use in employees data and for office work. As it is mentioned above that OAS is use in operational level. This information system manages all the office work of Vodafone like non financial asset, share based payment, pension etc.

TPS (Transaction processing system)

TPS help the operational managers to keep track of the elementary activities and transaction of the organization, such as sales, receipt, cash deposit, payroll, credit decision and the flow of materials in a factory (Laudon & Laudon, 2009). In this system Vodafone can interact with the customers on daily basis. The information system helps Vodafone to deal with the all sort of enquires.

Ethical Issues

The use of Information system could be very risky for an organization. As it is very necessary for an organization to use information system to boost the performance of the work in better and convenient way meanwhile it could be very risky and can lead to disruption. So a lot of ethical issues need to keep in mind when implement information system. For example, if wrong information of data is entered then output also will be wrong this could lead to wrong decision making which is very harmful for company. It is very important to focus on ethical issue, if there is problem in OAS that wrong information is entered in the database of Vodafone then it will store wrong information in the system, it will produce wrong result. Same as if there is problem in TPS (Transaction Processing system) that transaction is made wrong while customer is paying bill or when Vodafone is topping up the account of the customers this could create problem for both customers and the company. Some ethical issues of Vodafone are below;

Privacy Protection: company need to focus on privacy of the company and its business. It needs to ensure that all transaction, made exactly and correctly. Along with this Vodafone needs to protect transaction occurred, that other can’t retrieve it.

Accuracy of Information: In process of data storage and all other inputs Vodafone needs to be careful of the authenticity of the stored information. Sometimes companies are expecting are something but they get something else at the time of result.

Right of Information: Every mangers needs to know his responsibilities that he can maintain structure of the company.

Security: As much the system is secure company will be safe from threats and misuse.

Lack of knowledge: Staff must be trained to do the job and satisfy the customer in the criteria of information system.

Conclusion:

All organizations need to use information system to boost the performance and drive through the success. Information system helps organization to sort out, about all kind of problems and become profitable. As Vodafone is a communication services provider, so to come up with all necessities of this modern life and to compete with market, Vodafone needs to use specific information systems. There are so many companies in market competing with Vodafone, but due to choosing right and efficient information system, Vodafone is at the top.