Executive Summary

This is a report on the working of a small business RTE where packaged food is supplied by the owner with the help of a small workforce. In order to extend the services and to eliminate the competition the business RTE has proposed to implement an information system which is the need of the hour. In this report total emphasis is on the information system, how it works and the influence it has. Furthermore, different forms of information system are taken into consideration and also the model of Porter’s which helps to gain competitive advantage. From the report, it will be clear that an information system is the chief ingredient and will help the business in the long run.

Table of Contents

Introduction. 2

Discussion. 3

Conclusion. 8

Recommendations. 9

References. 10

Introduction

Ready to Eat is a small business which provides ready made meals. Rebecca, who started the business on a small scale, witnessed a gradual increase in demand. The man power was limited and the business was never run on holidays. The business started on a small note, but gradually reached to a great height. Rebecca used to operate the entire work through the help of computer and software, but with the passage of time it was difficult to operate through it. Moreover, another competitor entered into market which took away some business. Hence, in order to ensure better performance it needs to be noted that the proper information system needs to be implemented which will enable the business to change the circumstances in its favor and enhance the operations. In this report, it will be discussed what possible course of actions are available with RTE and how can the information system be utilized in this scenario to derive the utmost result.

Discussion

Information system and its utility

Information system can be said to be a research of complementary network, which consists of hardware as well as software that individual as well as organization utilize to collect, enhance, create and distribute data. The information system is the need of the hour and encompasses innumerable discipline such as the evaluation of the system, networking, and security of information, management of database and decision support system. The information system helps to drive the business with ease and flexibility. The system utilizes a variety of methods and tools, programming, implementation, media production, data filtration as well as decision support (Alter, S., ‘Work System Theory’, 72-74). Hence, information system tends to bridge the business and computer science utilizing the concepts of information and computation which enables to study models of business and related processes within a discipline of computer science. The information system helps to support operations, management as well as enabling proper decision making. It also signifies the manner in which people use to connect with the technological process in order to back up the processes of business. Information system relates the data with the data system and also links the activity system. It can be said to be a communication system where representation of data is done and processed in the form of a special memory. The business can use a wide variety of techniques which will help to enhance the operations and create a positive impact (Alter, S., ‘Work System Theory’, 100-112). The systems which can be used are the operations support system, transaction processing system, process control system, and management information system and decision support system.

Utility of Information system in RTE

The information systems which can be implemented and used by Rebacca are:

Operations Support System – This system is mainly used where there is a need of day to day operations. Here the business is of providing and hence regular operations are there. Therefore, this system will help to make routine decisions.
Transaction processing System – through this system the daily activities are recorded and even processed. Here the input data is received and accordingly converted into an output which is the basic need of the user. Here the input data are termed as transactions which influence the business. A financial transaction is an economic event while others are non financial transaction.

Process Control System – This system helps to evaluate and control the physical processes. It is of great use in the Rebacca business as it will help to test the food’s temperature when it is being prepared and also knowing the moisture content of paper when it is manufactured (Mingers & Stowell, Information Systems, p.88). It enables the collection of data periodically (Galliers, Markus, Newell, Exploring Information). The data which is collected is then evaluated by a computer program which helps to make adjustments and provide a clear cut result.

Management information system – This system is of great help as it helps to compile reports such as business analysis, inventory report, financial statements which help the manager in decision making. In this scenario RTE needs MIS because it needs to have a proper analysis of data so that results can be predicted and appropriate methods can be used for meeting the objectives or to eliminate the competition. Routine decision can be easily achieved through this system. Other report such as profitability report, the employee – analysis report can be easily drafted.

Decision Support System – A decision support system can be termed as an interactive system that helps to collect, display and integrate data from various sources which will help the managers in making non routine decisions (Hevner, Park, ‘MIS Quarterly’, 82-97) In this scenario Rebecca operates RTE and wants to enhance the business so as to cater to a wide range of customers. The data can be extracted from internal sources which will help to decide whether the business has the financial strength to enhance the operations. From the external sources, it will be determined that whether there is huge demand for the food. This DSS will help to analyze as well as interpret the data and hence it is easy to take final decision without any hindrance.

The management decision making will be enhanced with the implementation of an information system as the entire work will be computerized and hence the softwares will take care of the entire process. The data filtration as well as evaluation can be done easily which leads to proper decision making. Prediction can be easily done when there is a proper system available. Information system bridges the gap between the management and the data which provides a huge impetus to the overall business.

Porter’s five Force tool

Porter’s five Force tool helps to understand where the power resides in a business. This helps to know both the strength as well as the current competitive position (Michael E. Porter, Five competitive forces, p.27-32). Under this concept, there are five major forces which help to know the competitive power. They are:

• Supplier power

Under this it is determined how easy it is for the suppliers to increase the prices. This is preceded by the number of suppliers which is available for each input, the unique capacity of the product, the strength it has. The fewere the supplier are present and the more help is needed, the more powerful a supplier becomes.  Transaction processing system can be used to know about the supplier, the availability and hence proper decision can be made for RTE.

• Buyer Power – in this scenario, it is to be noticed how easy it is for the buyers to bring down the prices. Here, in case of RTE, management information system will help to know about the customers and the importance of them. The cost of switching from the current services and product will also be determined. This helps to deal properly with the buyers and to know about their importance.
• Competitive rivalry – Here it is to be determined the number as well as capability of the competitors. In case of RTE a new competitor has cropped up which offer the same quality as well as services and is taking away the customers. Hence here decision support system will help to know how the services can be enhanced which will enable to attract new customers and retain the old ones. This RTE must provide services which must be able to cater to the requirements and drive the bsuiness forward.
• Danger of substitution – this is influenced by the ability of the customers to find a unique way of doing what you do. If the system is well known to the customers and suppliers then may use it and apply in their case. Hence, if the substitution is available, then it can weaken the power.Here, process control system must be used which will enable a unique stand to the business and provide a clear cut result.
• New entry threat – When a new supplier enters the market it becomes a threat. It is to be noted that economies of scale are available and less protection of chief technologies are available then it becomes difficult altogether. Here, in case of RTE new rival has entered and hence strong barrier to entry must be created by implementation of a strong operations support system. This will help RTE to create a strong barrier and have a favorable position which will help to take advantage of the situation.

RTE is in a state where it requires the information regarding the competitor, its productivity as well as its stocks. This information is vital for the business and will help to take proper action. Moreover, this will also provide scope of expansion and the strategy can also be implemented with ease and flexibility. There are many business processes which need to be computerized such as stock movement, delivery time and status, supplier concentration and the requirement fulfillment (John & Joe, Strategic Planning, p.25). These are the certain area which will help the business to cater to the requirements of the customer and will also filter the process. This will bring a smooth process and will also enable RTE to have proper control over the activities which will help to manage the cut throat competition. Data processing as well as filtration will also be smooth and hence it will enable the business to drive forward.

The information system is a boon as it helps to ensure collaboration as well as communication among the stakeholders. Computer networks and internet helps the stakeholders to extract the information they require which promotes the business.  The stakeholder engagement is enhanced and hence participation of stakeholders is ensured. With the help of internet the participation of stakeholders are more and accountability of the business gets increased which helps to strengthen the process and protect them (Galliers, Markus, Newell, Exploring Information). Through the help of internet the stakeholders are able to get a better view of the entire happening of the business and also know about the recent happenings. So through the medium of internet the information is spread and a better understanding is ensured.

Challenges of implementing computerized system

The computerized system is no doubt a big boon to the organization, but it needs to be noted that there are huge challenges attached to it. The challenges are in the form of application, training, understanding and utilization of   system. The employees are trained and educated in a different manner and hence when computerized system is implemented, then the employees resist change and show signs of reluctance which impacts the results and the output. Secondly, the training needs to be imparted which takes time and amidst that the output is affected. Training consumes time and employees have a tendency to resist new training which creates a difficult scenario. Thirdly, when it comes to application of new system, it is always experimental and unknown how the system will operate and provide results. Therefore, the new computerized system implementation will produce a lot of challenges and problem which needs to be encountered to drive the business forward.

Issues connected with application of computerized system

The application of computerized system will bring loads of advantages, but it needs to be noted that there are various problem associated with it. The following are the major issues:

Privacy – As a matter of fact, all the communications in web are subject to eavesdropping. The activities are recorded in the history files through the use of browsers and the cookies collect the information. When cookies are collected into a database they may expose the identity of individuals which can lead to huge problems.

Security – it has now become a common parlance that computers and websites of people are hacked. In this scenario it has become very difficult to maintain secrecy as well as privacy. This leads to ethical problem too, because the organization data gets leaked.

Computer related crimes – more and more people are trying and are able to hack the system. The internet has led to a huge increment in the number of crimes. The data are getting leaked and are manipulated, which leads to internal issues as well as external ones.

Conclusion

It can be clearly stated from the above study that RTE is not being able to utilize the opportunities due to lack of information system as well as lack of manpower. Hence, in order to utilize the opportunities the business needs to implement various information systems which will provide a clear understanding and will also enable the business to meet the competition with ease and flexibility.

Recommendations

From the above report, it can be concluded that information system is the need of the hour and all in all. It helps the business to achieve significant results and lead the business in the correct path. The stakeholder participation can be better ensured if there is a well implemented information system. Moreover, there is certain problem which crops up when the new system is implemented so it must be solved to ensure better result.

References

Alter, S., ‘Work System Theory: Overview of Core Concepts, Extensions, and Challenges for the Future’, Journal of the Association for Information Systems, 14(2), 2013, pp. 72-121.

Galliers, R.D., Markus, M.L., & Newell, S., Exploring Information Systems Research Approaches. (New York, NY: Routledge, 2006)

Hevner, March, Park, Ram. ‘ Design Science in Information Systems Research’, MIS Quarterly, 28(1),2003, 75-105.

John, W., Joe, P., Strategic Planning for Information System, 3^rd Ed. (West Sussex, 2002)

Michael E. Porter., ‘The Five Competitive Forces that Shape Strategy’, Harvard Business Review, 2008, 86-104.

Mingers, J., Stowell, F., Information Systems: An Emerging Discipline? (McGraw- Hill, London, 1997).