As an IT consultant I have been asked to produce a report that will show and explain how Kwik Space Cabins could benefit from an IT based Information System. The management would like to see how such a system could improve efficiency also how it could obviously reduce any costs and most importantly become more competitive in the current market, as Kwik Space, has lost its position as market leader. The aim of the report is to not only to identify the major TPS’s within the company but also to explain how they support the operations of the business.
The second part of this report will illustrate how the IT based information systems will support the functions of the Accounts, along with the Human Resources, Marketing, Purchasing, Production and Sales within the company. Finally the reports aim is to show how the company can gain a competitive advantage from such systems and how it will assist in decision making within the organisation. Operational systems, generally referred to as TPSs simply because they carry out the day-to-day transactions that take place within any business.
Kwik Space Cabins is an Industrial organisation making something from something else supplied by other industrial organisations. The major TPSs found at Kwik Space Cabins are as with most companies are found in the departments of sales, purchasing, accounts and the production, this is where most of the day-to-day transactions take place, shown in table 2. 1. A computerized system can make most operational decisions automatically.
Which would instantly free up time wasted in manpower performing these task since there are so many, plus the transaction would be more accurate when performed automatically. Most firms implement data processing systems since processing customer transactions is a necessity. As the data is collected a database is built up and becomes available to produce reports. Ref: Benyon/Information ; data modelling Operational systems are responsive and deterministic to the extent that the inputs and outputs are known and certain.
A sale is probably the most important TPS’s as it involves dealing with the companies customers usually placing orders, and since it is the customer that keeps the company up and running it should be the main priority that the customer is always taken into consideration and kept happy in what they expect from you as the company and what they require as a customer. This sales transaction is extremely important where the invoice is concerned, as this is output data and information which is vital to the company as records are needed of the list below and what the company stores and relies on as information.
If the system was to be computerized it would give advantage in that it would eradicate repetition of data be able to perform such task in providing sales reports which would be used by the marketing department also it could automatically give daily sales figures to the accounting department. PURCHASING TRANSACTION The advantages in the case of the purchasing department of implemting a computerized system would be the fact that not only would the company be able to keep a minimal level of stock as far as raw materials is concerned, which would help to keep cost of purchasing at a minimal level thus creating profitability in the long run.
It must also retain all the data that is held on suppliers their goods and services, which is a vast amount of data to be held manually. The repetition of details that the system currently running is holding, is extremely time consuming and also probably taking up too much storage space, which could be put to much better use. If the new system was to be introduced no unnecessary duplication would be made and also the computer could also order materials automatically when stock levels reach a minimal. This is good business practice and frees up money.
Another advantage in the proposed system would be one of the Internet, where managers of the department would be able to compare prices with what is available, also they would be able to see what competition has on offer as well. Marketing’s main priorities must be with the presentation of the products in which they are producing to the potential markets. Computerizing the system would enable data/information to be collected, which is used to forecast future sales, to show areas of growth etc. Accounts A computerized system would be a great advantage to the company in that it would be able to store accurate records of all transactions made.
The accounts can be split into two categories, one where the financial side is catered for and the other where the management makes use of information that is captured and stored. The financial side would benefit considerable with an automated system in that all cash flows in and out of the business, sales and purchases, are logged into the computer and Computerizing the accounts would provide the management with reports of great importance to the whole organization as managements job is to forecast what sales they will make and what the costs of overheads of the business will be.
Profit and loss reports and balance sheets that are essential to management because they show the organisations assets and liabilities can be generated by a computerized system. It would identify bad debt customers and minimise its losses in the business quicker. Since there is a legal requirement for all accounting records to be kept, it is much safer and less storage space when the system is computerized. Human Resource Management A computerized system would give the advantage in this department simple because it deals with the people of the company and as such should be regarded as a valuable resource.
Contracts will be held in regards to the employees here. Inputs would be such things as employee records, employment status, personal data about an employee etc. Automating the system would mean that records can be updated more efficiently with a great deal more speed, less effort and less man power to perform such tasks. Managers would be able to use this system to analysis there employees, for example they could match certain employees skills to specific jobs. Outputs would contain reports for things such as skills analysis, salary reviews etc.
Question 3 Mention real time prossing ; batch processing and the advantages COMPUTERS IN BUSINESS Business revolves around the making of decisions about what to produce, where to buy materials and the price to charge for the product. Computers can help with the making of these decisions by providing accurate and timely information, which will take the uncertainty out of the process. Computers are needed in business because information is required to be not only accurate but to be produced quickly as well, so that correct, timely decisions can be made.
When events occur they can be fed into the computer and files can be updated immediately. Computers do not make mistakes (incorrect data maybe entered or a faulty program are the causes for mistakes) managers rely on information that computers produce. For a business to function it needs information, obviously a computer based system rather than a manual one would act more efficiently, accurately and quicker, it would also inevitably assist management with decision making.