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147594-80


Course        INDU1122: Human Resource & Inf Mnt (MBA)            Course School/Level        BU/PG
Coursework    Information Management Portfolio                    Assessment Weight         25.00%
Tutor         P Stoneman                                          Submission Deadline    13/04/2009



Coursework is receipted on the understanding that it is the student's own work and that it has not,
in whole or part, been presented elsewhere for assessment. Where material has been used from
other sources it has been properly acknowledged in accordance with the University's Regulations
regarding Cheating and Plagiarism.



000525874
Tutor's comments




Grade
                            For Office Use Only__________             Final Grade_________
Awarded___________
Moderation required: yes/no Tutor______________________               Date _______________
Shopko and Pamida
1. Evaluate the role of information systems in the way ShopKo and Pamida run their
business. How important are they?

Shopko made tremendous investments in information system like price optimizer during
markdowns which helps the companies to retain price It enables the company in deciding
prices according to season, geography, local taste and demand, by analysis of previous sales
data. Weekly data is stored to feed the software with required information. Each item sold
contains some specific description.

Pamida is striving towards availability of their specific product advertised through their
information system. Its trouble was dealing with out of stock items due to which it reduced its
warehouses from five to three and looking to enable fulfilment of their store shelves that was
possible through converting ware houses into flow through facility. Updating took place in
warehouses but not in information systems. Shopko invested in its IS to enable its functions
more.

2. Evaluate the importance of Pamida's distribution centre consolidation project on for both
Pamida and ShopKo. What management, organization and technology factors prevented
Pamida's new distribution centre from working successfully?

Pamida being the only major retailer in small towns with proper stocking strategy rather than
becoming the competitive one. It‟s being important for both ends due to interdependence, as
Shopko want large coverage and Shopko was looking for its updated new information system
which can lead to better run in long way. Its flow through service model let it enabled with
the quicker stocking in stores. This full-service distribution centre is where inventory is
stored, so that it can be shipped to the stores immediately when required. The management,
organization and technology factors that prevented Pamida‟s new distribution centre from
working successfully are because recent inventory system at warehouses. Due to its inventory
management system that was never updated since its installation which made it difficult to
layout and run a fully fledged service centre effectively. Being the old software was counted
fine at the time when Shopko taken over Pamida and even don‟t considered it

3. Are ShopKo and Pamida using information systems effectively? Why or why not? How
   much value do their systems provide to the business?
They both used different data. But with the significant investment by Shopko in its own and
Pamida led it knows about the changing trend in for mark down values of the outdated
products. Pamida‟s ineffective information system, which was really behind the time to cope
up with recent scenario was letting it functions and sales go down where as Shopko is taking
full advantage of the system to clear its outdated stock and getting ready for the new season
merchandise.

4. If you were the CEO of ShopKo, how would you have addressed the problem? If you were
the CEO of Pamida when it was purchased by ShopKo, would you have recognized the
problem? Explain. How would you have solved the problem?

I had addressed the problem when me as the CEO of ShopKo by determining the net resulted
prices up to one fourth of the actual price along with looking to the most sought products that
can even be sold at higher markdown prices at certain stores.

Problem for Pamida can be sought after by looking towards its inventory system that can
enable the fulfilment of shelves in the stores rather than warehouses, for which it reduced the
number of warehouses to change it to flow through facility centre and enabled modern
inventory system as well.

5. What management challenges does this case study illustrate? Explain your answer.

Mainly to deal with the management and action formulation, which can solve organizational
problems. Allocation of human and financial resources are utilized strategically to coordinate
work effectively. It covers knowledge based challenges which seeks expertise. With lack of
information system investment and digitally integrating their information flow and making
major information system investment are the biggest challenges. Making automated relation
between suppliers and the firm to optimize business process efficiency along with a proper
supply chain

References.

Source: Case Study questions. Available at: http://www.al-ikhsan.com.tripod.com/2
(Accessed on April 15‟ 2009).
U.S.STEELS
1. Summarize U.S. Steel's current competitive situation.
According to the International Iron and Steel Institute (2006) U.S. Steel enjoys the sixth rank
worldwide with an output of around 21 million centric tonnes crude steel per year. Arcelor-
Mittal (Global) being the number one with 117 million tons and Posco of South Korea at
fourth place with 30 million tons. Apart from increasing net sales since few years US Steels
is recording its slower pace. With decreasing figures to 48000 from 500000 since early years.
Research and development led increase the output with less workforce that reduced the
overall production cost. With multiple stake holders, US Steels is still ran by the board of
directors. Along with few environmental cases for the last years charged it huge compliance
costs.
 2. How are information systems related to the way U.S. Steel runs its business? What
role is played by supply chain management systems?
They analysed the value chain and started improving the information systems. Software help
were taken by the consultants like ORACLE to upgrade their existing system. Use of internet
and online tracking system was improving their customers and clients. It refurbished their
whole value chain system due to enhanced efficiency in fulfilling the customer‟s needs.
Further down the lane it started using its information system for its value chain; inventory
and warehousing which led them tackle the whole supply chain through a single platform.

3. What management, organization, and technology factors were responsible for USS's
inability to compete with other steel manufacturers?
With better customer service they try to come a new way along with improving. With
predictive strategy they started analysing the customer‟s needs more precisely leading to an
effectively managed low cost inventory system. With improved and efficient information
system they managed to wider the value chain and succeeded in retaining their business
relationship with Ford Motor Company. Still ongoing problems with old language enabled
COBOL in the system led it face hurdles to maintain it and find experts for it. Switching to
any other ERP platform will not be so easy for existing ongoing home software, with which
its professionals are well versed.

4. Describe how USS has responded to its global and American competition.
POSCO
Two reasons supporting Posco enjoys to give competition to US Steels are the cheap South
Korean labour to produce and second is the advanced set up of Posco that enables it to
produce more cheaply than US Steels. And to maintain its old plants US Steels need to spend
ample money which ultimately affects its growth and competitiveness. Ford Motor
Company
Being the leading steel supplier for Ford, US Steels maintained good business link with it but
after realizing its performance in 1996 and the recession in American Motor industry led it
change the supplier which really affected and made US Steels, to think about its strategies.
5. How helpful were information systems in addressing USS problems?
Being the best example for addressing the information systems and value chain, competence
in their old home made software with proper customer analysis. In absence of which, they
can‟t stand anymore in front of cheap labour countries. Making their value chain more
reliable and competent was the only way left with US Steels. Still to shift over to the latest
technology is another big challenge for them. Potentially last year acquisition, led them really
independent and innovative to give their infrastructure a new outlook.
References
Source: Case Study: U.S.Steel. Can Information Systems Save U.S. Steel?Available at:
michael.schwanzer.info/uclan/BT3001/a2.pdf( Accessed on April 15‟ 2009).
Coursework Header Sheet
147593-68


Course        INDU1122: Human Resource & Inf Mnt (MBA)            Course School/Level        BU/PG
Coursework    Information Management Essay                        Assessment Weight         25.00%
Tutor         P Stoneman                                          Submission Deadline    13/04/2009



Coursework is receipted on the understanding that it is the student's own work and that it has not,
in whole or part, been presented elsewhere for assessment. Where material has been used from
other sources it has been properly acknowledged in accordance with the University's Regulations
regarding Cheating and Plagiarism.



000525874
Tutor's comments




Grade
                            For Office Use Only__________             Final Grade_________
Awarded___________
Moderation required: yes/no Tutor______________________               Date _______________
                           MBA – Information Management Essay
The implementation of major strategic systems such as ERP (Enterprise Resource Planning)
systems within an Organisation has obvious technology implications. Besides these, there
will need to be changes to Business Processes and other elements such as the organisation‟s
people, policies and procedures.

Acting as the CIO (Chief Information Officer) for a large Multi-national organisation, write a
report to the Board outlining the organisational implications of deploying such a system,
suggesting appropriate strategies to address these issues. Ensure within your report that you
also spell out the additional implications where such a system is to be deployed on a multi-
national basis. Support your answer by referenced examples with which you are familiar and
by appropriate references to theory or „good practice‟.


Ensure that you structure your report logically and cohesively. You may wish to use a
business consultancy model such as the McKinsey 7S model, or an alternative with which
you are familiar, as a basis for the structure of your report although this is not mandatory.

Enterprise Resource Planning
Introduction

A software dealing with a company‟s data to coordinate and manage information, resource
and business function through a single platform. Basically originated as the upgraded version
for Material Requirement Planning (MRP) in 1990 by a firm called Gartner. It works for
almost every business stage from Product Life Cycle Management to Decision Support
System but usually being deployed due to following reasons-

   a.   Synchronises the financial data.
   b.   Prepare well to do customer database.
   c.   Make gelling in process and manufacturing to fasten the cycle.
   d.   Reduces requirement for stocking.
   e.   Gives a platform to Human Resource.




                                                    McKinsey 7’S Business Consulting Model
To take forward the ERP now we will consider the McKinsey 7‟s Business Consulting Model
and move forward taking every “S” simultaneously to know about the required implication
for the company in deploying this ERP System. We are targeting a multinational
organization.

First “S” STRATEGY.

This process comprises of three stages for implementation orientation, standardization and
implementation procedures-

IMPLEMENTATION ORIENTATION.

   1. Global Roll Out- Creation of common global template for every site. This being the
      unchangeable configuration but many companies changes it due to different problems
      such as improving business problems.
   2. Local Implementation- In this every template on local site can be changed any time
      according to the company‟s demand.
   3. Mixed mode Implementation- It‟s a mixture of both local and global roll out.

STANDARDIZATION.

This process comprises of looking for a close outlook on system processes, data format and
structure of site and degree of standardization can be classified by implementation
orientation.

IMPLEMENTATION PROCEDURES.

It comprises of two procedures-

      BIG BANG- In this procedure, every site introduces the system at same time and its
       risk of getting unsuccessful is very high. It varies due to project management and site
       capabilities.
      PHASED IMPLEMENTATION- It works individually site by site, department to
       department. Being a successful process but takes longer to implement.

Second “S” STRUCTURE.

Multinational organization usually decentralize their Organization structure or Hierarchy
broadly within six different categories and their responsibilities are as follows-

      Specialization- Sub division of multiple tasks into various jobs
      Departmentalization- Basis on which close jobs can be grouped in.
      Chain of Command- To whom every individual should report.
      Span of control- Deciding number of personnel a manager should deal with.
      Centralization- Details regarding the decision maker for certain issues.
      Formalization- Code of conduct for employees and managers.
Every organization employs and ranks their workforce according to the above structure where
in Chairman, Managing Director; CEO lies under the specialization head, leading to different
Department managers from HR to Finance and so on. The above structure is an outlook but to
give an inside view of an organization, under given diagram will give a bright light on it.




Third “S” SYSTEM.

The organization system being so complex so it relates to subdivision of every process into
different groups so that if any error arises it can be detected from a particular department and
not by scrolling process from the scratch. From HR to Finance department are assigned their
duties along with their reporting bodies to keep the system work smoothly. Managers now
can really have an eye over ongoing matters closely and have feedbacks as well to analyse the
whole system under their supervision. Broadly this system covers different organisation
understanding according to the following-

      Culture: To define behavioural patterns and habits of the employees.

      Structure: Organisational structure as a whole according to the hierarchy.

      Internal economy: Managing and handling the entire department to have a consensus
      of work flow from organisation to clients.

      Methods and tools: Usage of procedures, methodologies, skills, and tools by the
      employees in an organisation.

      Metrics and rewards: Feedback on the performance meant for incentives and
      improvement.
Fourth “S” SHARED VALUE.

In multilevel organization their shared value or core value structure is defined into three
layers which comprises of following-

   1. Basic assumptions-
      It relates to general abstract and statements in a group on day to day basis. It can be
      contradictory, eclectic, heterogeneous and unilateral aspect.
   2. Shared values amongst organisation personnel-
      It relates to organisational structure communication and comes with attitude of ranks
      according to hierarchy. Some people find it difficult to adopt but some take these
      values comfortably and respect it as if values are expressed and imposed at the same
      time.
   3. Organizational norms-
      There are certain set rules and norms for anyone under this structure. Culture
      engineers produced these norms to effectively establish the relation of every
      employee with their manager and sub ordinate. It also reflects cultural unification of a
      group of people.

Fifth “S” STYLE.

It relates to the leadership style which gives the major influence on the employees, manager
and organization. In house politics also gives an increment to the productive output but it
depends on various styles with which leadership is carried out. Its two types-
     1. Transactional- This style meant with certain means of rewards to the follower in
         return of a job and everything is decided in the earlier stages. It‟s a common type
         which can be found in any organisation.
     2. Transformational- It relates to a vision which leader gives to every follower and put in
         his efforts to make them successful in their targeted vision. This leadership style
         doesn‟t pays in monetary terms and has an uplifting effect. Above style is rarely used
         when there is no other way out and morale is at bottom. Organization usually applies
         this style to take an extra bit out of their workers.

Sixth “S” STAFF

To excavate the potential talents among the groups and teams which are still performing their
day to day task. It can either be realized by giving the chance to some deserving employee to
perform some specialized task in supervision of the senior professional. Making a proper data
regarding the essential posts need to be filled in a specific time gap with prospective terms
and conditions along with recruitment initiation through different sources such as in house
and outside recruitment.
Realizing the different areas of gaps and competencies that is affecting the overall
performance of the group on these levels-
     Proficiency level. Looking over on qualitative and quantitative aspects of team.
     Context level. Considering the relevancy of information and data input.
     Competency level. Required skills and experience that needs to be put in and working
        on the negative outcome for its positive transition.
Seventh “S” SKILLS

Multiple personalities with different qualities and skills, contributes a group, which can be
analysed and further put in forward as the strongest skills such as time management, process
handling and management etc. In spite loop holes should also be worked upon till
improvisation. Predictive analysis should be done prior opting to any new case which helps to
have a big picture in mind and reduces the need for unnecessary wastage of resources. To
keep up with performance and skills measuring tools should be applied in every task to avoid
low performance.

CONCLUSION
Before looking into deploying an ERP, we prior want to have an idea of an multinational
organisation on the above Seven “S” model which really provides the real time data regarding
in depth of an organisation for its strengths, weaknesses, opportunities and threats in current
and upcoming scenario, that can give a predictive approach to apply or not to apply the ERP
at this point of time.
Furthermore as there is no major data supporting huge concerns helped by ERP system, I as a
CIO for this company want to throw light towards mending the loop holes first before
entering into a whole new range of updated planning system for organisation functions.

References.

SOURCE: The McKinsey 7S Framework.Ensuring that all parts of your organization work in
harmony. Available at: http://www.mindtools.com/pages/article/newSTR_91.htm(Accessed
15 APR’ 2009)

SOURCE: ERP definition and solutions. Available at:
http://www.cio.com/article/40323/ERP_definition_and_solutions?page=2#fix(Accessed 15
APR’ 2009)

SOURCE: Google Books website. Available
at:http://books.google.co.uk/books?id=q3WFRbZBoDcC&pg=PA38&lpg=PA38&dq=erp+st
rategies+for+multinational+organization&source=bl&ots=Rf4C7CIqSz&sig=vY39Nk8XjjUi
0969RVkpZ8grh_k&hl=en&ei=V33sSc7KOK2jAeT0KWfCg&sa=X&oi=book_result&ct=re
sult&resnum=1#PPA43,M1(Accessed 15 APR’ 2009)

SOURCE: Organizational Structure of Multinational Corporations. Available at:
www.emu.edu.tr/tanova/IHRM/OrganizationalStructure.ppt(Accessed 15 APR’ 2009)

SOURCE: Thinking About Organizations as Systems. Available at:
http://managementhelp.org/org_thry/org_sytm.htm(Accessed 15 APR’ 2009)

SOURCE: The five organizational systems. Available at:
http://www.ndma.com/resources/ndm1881.htm(Accessed 15 APR’ 2009)

SOURCE: Pattern of organizational culture analysis. Available at:
http://ebooks.unibuc.ro/StiinteEDU/adulteducation/22.htm(Accessed 15 APR’ 2009)
SOURCE: Emerald Insight Website. Available at:
http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/
Output/Published/EmeraldFullTextArticle/Pdf/0140360501.pdf(Accessed 15 APR’ 2009)

SOURCE: Transformational Leadership. Available at:
http://changingminds.org/disciplines/leadership/styles/transformational_leadership.htm(Acces
sed 15 APR’ 2009)

SOURCE: A MODEL FOR COMPETENCE GAP ANALYSIS. Available at:
http://dspace.ou.nl/bitstream/1820/1119/1/model_for_competence_gap_analysis.pdf(Accesse
d 15 APR’ 2009)

Bibliography.

SOURCE: The McKinsey 7S Framework. Ensuring that all parts of your organization work
in harmony. Available at:
http://www.mindtools.com/pages/article/newSTR_91.htm(Accessed 15 APR’ 2009)

SOURCE: ERP definition and solutions. Available at:
http://www.cio.com/article/40323/ERP_definition_and_solutions?page=2#fix(Accessed 15
APR’ 2009)

SOURCE: Google Books website. Available
at:http://books.google.co.uk/books?id=q3WFRbZBoDcC&pg=PA38&lpg=PA38&dq=erp+st
rategies+for+multinational+organization&source=bl&ots=Rf4C7CIqSz&sig=vY39Nk8XjjUi
0969RVkpZ8grh_k&hl=en&ei=V33sSc7KOK2jAeT0KWfCg&sa=X&oi=book_result&ct=re
sult&resnum=1#PPA43,M1(Accessed 15 APR’ 2009)

SOURCE: Organizational Structure of Multinational Corporations. Available at:
www.emu.edu.tr/tanova/IHRM/OrganizationalStructure.ppt(Accessed 15 APR’ 2009)

SOURCE: Thinking About Organizations as Systems. Available at:
http://managementhelp.org/org_thry/org_sytm.htm(Accessed 15 APR’ 2009)

SOURCE: The five organizational systems. Available at:
http://www.ndma.com/resources/ndm1881.htm(Accessed 15 APR’ 2009)

SOURCE: Pattern of organizational culture analysis. Available at:
http://ebooks.unibuc.ro/StiinteEDU/adulteducation/22.htm(Accessed 15 APR’ 2009)

SOURCE: Emerald Insight Website. Available at:
http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/
Output/Published/EmeraldFullTextArticle/Pdf/0140360501.pdf(Accessed 15 APR’ 2009)

SOURCE: Transformational Leadership. Available at:
http://changingminds.org/disciplines/leadership/styles/transformational_leadership.htm(Acces
sed 15 APR’ 2009)
SOURCE: A MODEL FOR COMPETENCE GAP ANALYSIS. Available at:
http://dspace.ou.nl/bitstream/1820/1119/1/model_for_competence_gap_analysis.pdf(Accesse
d 15 APR’ 2009)

				
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