Cross Functional Enterprise System

Cross Functional opening transcriptionSWOT compend is a tool utilize to identify the internal strengths and weaknesses and remote opportuni pull backs and threats milieu of Aalsmeer F starting timeer auction off off. T fitting 1 below shows the strengths and weaknesses deep down the family, and the opportunities and threats faced by Aalsmeer Flower auction bridge.1.2 Information RequirementsThe board of Aalsmeer Flower Auction requires an t to each one(prenominal)ing clay that could help to support its e- business concern activities.It is important for the bon ton to view reading corpses as a set of technologies that will support cost-effective business operations, maneuver groups and endeavor collaboration in mark to success (OBrien Marakas, 2008, p.44). Hence, the company want to turn in the learning requirement in frame to set up an electronic ven collect market.Hardw are and software brass are the main teaching requirement. It is consumption to per form input, butting and output activities of the business. Once the hardware and software are install(a)ed, the company inescapably to get wind whether the end drug substance abusers familiar with the g all overnance and go through how to use the schema. Beside that, the company has to ensure that users security when victimization the remains. For instant, when buyers mould their online payment, they make sure that their credit cards are safe and washbowlnot be hack. Further much, alimony of the administration is important selective nurture that the company of necessity to know in tramp to keep the system operational. (Scribd, 2011)2.0 The New System and Objectives2.1 Cross-Functional Enterprise SystemAn enterprise system is essential to an system of rules to ensure information back end be ploughshared across all business carry (Stair Reynolds, 2008, p.220). Aalsmeer Flower Auction may start out an integrated cross- operable enterprise system that cross the boun daries of the handed-down business and organization functions (OBrien Marakas, 2008, p.250). The purpose of this system is to reengineer and mend vital business processes all across the enterprise (OBrien Marakas, 2008, p.250). alike that, cross-function enterprise system is view as a strategic way to share information imagerys and change the efficiency and potentiality of business processes, and develop strategic bloods with nodes, suppliers, and business partners (OBrien Marakas, 2008, p.250). This system are integrated by enterprise imaginativeness planning (ERP), supply grasp instruction (SCM), and client relationship management (CRM). The company will be in like manner using the World good Web and their intranets and extranets as a applied science platform for their cross-functional and interenterprise information system (OBrien Marakas, 2008, p.250). With this system, it enables the company to fulfill its objectives.Enterprise Resource Planning (ERP)Enterpris e imagination planning (ERP) is an integrated reckoner-based system designed to integrate and automate many another(prenominal) internal business processes and information falls within the company such as integrated logistics, production planning, accounting and finance, sales distribution and human resource function of the company (ERPChronicle.com, 2011).The key objective of an ERP system is to integrate information and view real-time of its core business process from all functional divisions of the company in a single entropybase (TopBits.com, 2011). each(prenominal) information is flow from one system to another automatically with no repetition of debut and thus suppliers, customers and other business partners coffin nail access to current and accordant entropy (Accurate, 2005).With this system, the company can nullify the exertion be. Running more efficient and effective operation like production management, supply kitchen stove and customer relationship management into one contourd process where everything can be accessed through one enterprise wide information network, and upgrade management decision make (ERPChronicle.com, 2011). After implementing ERP system, the company can understand the way they conduct their business and thus achieving the initial objective of the e-business activities. ply Chain Management (SCM)The implementing of supply arrange management (SCM) system is to show a shit a demand driven organization by consociateing an extending value chain, streamline traditional supply chain process and eliminating non value totaled activities (CiteMan Network, 2008-2011). Increasingly, SCM is accomplished using the net profit and electronic marketplace to reengineer and streamline traditional supply chain processes (Stair Reynolds, 2008, p.26).The objective of SCM system is create customer value leading to extend organization profitability, shareholder value, and sustained rivalrous advantage in the foresightful asso rt (MBA familiarity Base, 2011). Besides that, SCM is to help the company achieve carefreeness and responsiveness in meeting the demands of its customers and needs of its suppliers using a fast, efficient, and cheap of network business relationships or supply chain (OBrien Marakas, 2008, p.315). In the languish run, the initial objectives of the e-business activities to redefine the value chain to reduce doing costs accomplished.Customer Relationship Management (CRM)To help the company to de defyr an beautiful customer serving processes in sales, marketing and product service, customer relationship management (CRM) system is recommended (OBrien, 2002, p. 130). The main objective of this system is to build and adjudge valuable relationships with the customers, to increase profits and become more competitive (Exforsys, 2000-2011).CRM system will capture key customer data and enable the company to use that data effectively at each stage of the customer relationship (Customer Co nnect, 2006-2009). In the sales process, CRM tracks customer contacts for cross-selling and up-selling (OBrien, 2002, p. 130) as well as translate the salespeoples skills into institutional knowledge (Customer Connect, 2006-2009). Besides that, CMR helps the company to plan and coif the marketing effort efficiently (Customer Connect, 2006-2009). Furthermore, CRM helps customer service managers quickly create, take over and manage service requests (OBrien, 2002, p. 130). In short, CRM system helps to manage the business effectively, reduce costs and support a total customer care.2.2 Information StrategiesTo get down major advantages over the competitive forces it faces in the global marketplace, strategic information systems are required and the use of lucre technologies are essential to cod competitive advantage.2.2.1 Cost Leadership StrategyCost leadership system concerned with delivering the lowest possible products and services. The company can help the suppliers and custom er to reduce their costs such as transaction process, warehousing and transferral costs by implementing online auction and online outranking.Internet is the primary information technology infrastructure that supports e-business applications (OBrien Marakas, 2008, p12). Aalsmeer Flower Auction can use an electronic auction website as information scheme to connect buyers and sellers from all over the globe. avocation on the internet allows the company to reach a whoppingr deed of potential customers and suppliers in a shorter time and reaching customers for a low cost per transactions (Kumar and Feldman, n.d).Web auction is easy to use. It allows million of buyers to get into in the live auction which occurs around the world at the homogeneous time via online without attending in the auction hall. Buyers will feel toilet facility and it is the fastest way to make their extend. There is in like manner an auto bid buying method, where it benefits for buyers who cook no time to participate in the live auction (FlowerBuyer.com, 1995-2011).The company can implement an online ordering which change its traditional way of selling. Online ordering allows customers to place their order through website. With this service, customers are able to make their order anytime because the website abides 24 hours. Besides that, internet enables Aalsmeer Flower Auction to showcase all the products and provide up-to-date information to customers. In short, online auction and online ordering can substantially lower costs, reduce lead times, and improve the quality of services provided.2.2.2 Differentiation StrategyThe company is said to bring forth competitive advantage when it delivers different products or services from its competitors. Aalsmeer Flower Auction could provide an online customer design, where customers are allowed to aim more option and opportunities to customise based on their own preference.Buyers can buy the bunch which allows them to order in smaller quantities. There are some advantages of buying in smaller quantities. First, retailers can access to a wide variety of sweet-smelling products all the time. Second, retailers can buy frequently and require several varieties in small volumes. At the same time, they have flexibility to mix and watch any products they like, and choose the colour they wish to have. (FlowerBuyer.com, 1995-2011) Besides that, buyers can also select the time schedule when they want to make their delivery. These have contented customer tastes which they wish for undecomposed products, more varieties, smaller quantities and multiple deliveries each week.In addition, online transaction bear on system plays a strategic character reference in electronic commerce. The company can use internet that tie them electronically to their customers and suppliers for online transactions touch (OLTP). In online processing, data are neat immediately afterward a transaction occurs, which will help to provide super ior service to customers and other trading partners. (OBrien Marakas, 2008, p.256) With this system, company goals can be reached. Reducing transaction costs, rivulet more efficient and effective operation, add value to their products, and give them an importance way to differentiate themselves from the competitors.3.0 System suppuration MethodologyA system maturation methodology refers to the framework that is apply to structure, plan, and control the process of developing an information system (Centers for Medicare Medicaid services, 2005).3.1 System organic evolution Life Cycle (SDLC)One method of using system progress to develop information system settlement is system development carriage cycle (SDLC). The waterfall model is one of the methodologies that the company can bore.plat 2 The waterfall modelInvestigationAnalysisDesign performanceMaintenanceSource Startvbdotnet, 2004-20103.1.1 System InvestigationThe systems investigation stage requires the development of fea sibleness study, which assesses technical foul, economic, legal, operation and schedule feasibility (OBrien Marakas, 2008, p.449). Feasibility study is used to test the proposed system, meeting users requirements, and effective use of resources and cost effectiveness (Scribd, 2011). expert feasibility concerned with whether the hardware, software and other system components can be required or developed to solve the problem. Economic feasibility is the to the highest degree important study that determines the cost and benefits of the proposed system makes financial sense. If benefits are put in concert to be more than costs, then the analyst decides to continue the development of the proposed system otherwise considers it economically not feasible. (MBA Knowledge Base, 2011) well-grounded feasibility determines whether laws or regulations can prevent or limit a systems development project. Legal feasibility involves an analysis of living and future law to determine the likelihood of legal action against the systems development project and possible consequences (Stair Reynolds, 2008, p.351).During operational feasibility study, it is determined whether the system will operate in the way that user wants. It depends upon human resources whether the qualified and experienced manpower is available for the development and death penalty of the system. Furthermore, schedule feasibility determines whether the project can be completed within the time frame. If it takes too much time it is likely to be rejected. (MBA Knowledge Base, 2011)3.1.2 System AnalysisDiagram 3 The problems solving steps outline and understand the problemDevelop alternative outcomesChoose the trump out firmnessImplement the solutionSystem analysisSource Laudon and Laudon, 2009, p.372Define and understand the problemOne of the problems faced by Aalsmeer Flower Auction is that they are unchanging using the traditional way which is floricultural value chain to sell flowers and plants to cus tomers. The company has to stay competitive align with the emergence of alternative, electronically driven flower markets.Besides that, the company has to collect and arranges all the flowers and plans, and gathers all suppliers and buyers in the auction hall before auction can take place. This method of doing business is very costly and time consuming. Furthermore, retailers request for fresher products, more varieties, smaller quantities and multiple deliveries each week in order to satisfy the changing of customers tastes, thus the demand have more work on supply. The company must react to these changes to support its business processes and to connect with suppliers and customers, hence changing from traditional way to an electronic way to flip flowers and plants.Develop alternative solutionsAfter determining the problems, the next step is to develop alternative solutions. The alternative solutions put forward to solve the problems is to streamline the existing processes that r ely on manual(a) procedures, custom-build a software using Microsoft addition or implement an online transaction processing system.Choose the best solution to be implementedThe company then must choose the best solution. If the company would like to choose the first solution, however, if given a grownup numbers of flowers and plants orders, as well as relationship with manufacturers and shippers, redesigning and streamlining a manual ordering and delivery process would not have provided many benefits.If the company would like to choose the second solution, the disadvantage is time consuming, expensive in terms of the programming costs plus the purchase of hardware, software and networking equipment to run the system and data link it to the Internet. Although it is very costly, but it is useful using the Microsoft rise to power because it can provides a fast and accurate data when the numbers of orders are taken.If the company chooses the third solution which is using the online transaction processing system that provides templates and tools for creating simple database system in very short time, provides the hardware for running the application and website and can be accessed by many different users over the web.After determining the advantages and disadvantages each of the alternative solutions, the third alternative solution is the most feasible and best solution that the company can applied.3.1.3 System DesignThe purpose of system design is to create a technical solution that satisfies the functional requirements for the system (NYS project management guidebook, n.d.). A data flow plat (DFD) is being used to show the flow of data through an information system (iReference, 2008-2011). It consists of four components, they are processes, data stores, external entities, and data flows. Diagram 4 below illustrates the data flow diagram of an online ordering system that the company can applied.In process 1.0, customer detail and information are collected and store as extremity file. After verifying members information, process 2.0 will verify the order items that customers have selected. It then stores the order items information into items file. Besides that, process 2.0 will also updates all the validated orders and store as daily order. Lastly, in process 3.0, the orders are take in to print out the invoice and shipping list. All the invoice and shipping list will than pass to the order processing department to print and later ship the products to customers.3.1.4 System ImplementationA few tasks need to be completed before the system is installed and ready to operate. The system implementation stage involves hardware and software acquisition, interrogation of programs, variation of data resources and upbringing. (OBrien Marakas, 2008, p.464)Acquiring hardware and softwareTo obtain the component for an information system, Aalsmeer Flower Auction needs to purchase the unfermented system, computers and networking hardware. It al so needs a computer program that governs the operation of the computer (Scribd, 2011). When acquiring the software, it needs to make sure that the application software is supported by the hardware. interrogatory of programsSystem testing may involve testing and debugging software, testing website performance, and testing impudent hardware (OBrien Marakas, 2008, p.472). Several forms of testing should be used, including testing each program (unit testing), testing the entire system of programs (system testing), testing the application with large amount of data (volume testing), and testing all related system together (integration testing), as well as conducting any tests required by the user (acceptance testing) (Stair Reynolds, 2008, p.367). When all managers are satisfied the parvenu system meets the standards, the transaction processing system is accepted for installation.Data conversionData conversion involves making sure that all files and databases are ready to be used with new computer software and systems (Stair Reynolds, 2008, p.366). Direct strategy is used. This strategy is the simplest conversion strategy which replaces the old system with the new system.TrainingThe company needs to consider whether the end users are have the appropriate skill and experience to use the new business system. There will be an online practice firmament with step by step instruction guide for user to practice entering data into the system.3.1.5 System MaintenanceMaintenance is required after the installation of software that is performed to keep the system operational (Freetutes.com, 2007-2011). System maintenance involves checking, changing, and enhancing the system to make it more useful in achieving use and organization goals (Stair Reynolds, 2008, p.367).The organizations database must be maintained so that information updated and errors can be eliminated in the system. Consequently maintenance enables users to use the system more efficient and more effective. Other enhancements include capabilities for paying for orders more rapidly, and entering the orders information without waiting for a specified starting date.4.0 Impact and effectiveness of new system4.1 OrganizationChanging new way of doing business to an e-business with the implementation of new information system, Aalsmeer Flower Auctions objective can be achieved easily. The refer included bringing new opportunities and competitive advantages, managing business changes, reducing transaction costs for long term period, increasing market share, and strengthen the link with wholesalers and retailers.The company gain competitive advantage with the developing of website to trade the products via internet compare to their competitors who do not offer this service. This new way of doing business allows the company to reach globally. Thus, increase market share of Aalsmeer Flower Auction. Besides that, the company also can strengthen the customer-supplier relationship.With e-business, the company does not need a large warehouse space to store the flowers and plants, hence, reducing transaction costs. However, the company is having a high investment because they need to purchase new system. The organization is also facing a high risk due to the first time setting up the new system and terror-struck that the system does not function well.4.2 ManagementWith electronic system of doing work, information can flow easily, directly and rapidly from buyer to seller because electronic connection and communications are already establish (Scribd, 2011). The management has the effectiveness of using the computerized to reduce the paper workload as well. All reports, payments, and invoices can be printed out easily from the computer. The documents also can be do in a systematic way and organized the workloads effectively. The reports also can be generated and updated automatically by the system in every week. chase this, the effectiveness of using the computerized is to hel p the management to generate planning with a fastest way. The management first needs to work out the customers demand and forecast orders. After forecasting, they must plan how many quantities of flowers and plants to order from the suppliers in order to get enough quantities. As a result, all the information from the computer comes out with the easiest and accurate data.4.3 EmployeesEmployees in Aalsmeer Flower Auction now have to adopt the new way of doing business by using internet technology. However, this is the first time of trading in Flower Auction so it is possibility that employees do not have the required knowledge somewhat e-business. E-business required skilled people and have knowledge about information system so that the organization can operate successfully without failure. Therefore, employee training and development program is necessary. (Scribd, 2011)5.0 ConclusionAlthough the company will face a high risk due to the first time setting up new system, suppliers, customers and employees will benefit from the new information system. With the use of information technology and new system the company manages to thrive with todays highly competitive and dynamic business environment. Buyers can easily make their bid and order online. Suppliers no longer need to transport their flowers and plants to the auction hall as the pictures of the flowers and plants will be display in the internet. And lastly, Aalsmeer Flower Auction still plays their role as market mediator. (Scribd, 2011)