MIS550 Analysing Prevailing Information System Of Fibre Fashion Assessment Answer

Answer :

MIS550 Foundations of Information Systems

Fibre Fashion Case Study

1.0 Introduction: 

Information systems play an important role in decision making, communication, record-keeping as well as in taking proper decision making in terms of sales, marketing, finance and operations (Ashmarina & Zotova, 2016). Nowadays, every organisation whether small or medium-sized organisations or large enterprises have their own information systems to manage various business activities (Susanto, 2019). Fibre Fashion is also no different as they also have their own information systems to manage their sales and marketing activities. However, it is important to note that having an information system is not enough, but having an efficient information system is the key to success. The current study, therefore, focuses on analysing the prevailing information system of Fibre Fashion, identifying the issues present in the information system, conducting a literature review on the same and analysing the literature review and at the end, providing a set of recommended solutions.  

2.0 Background to the issue: 

Fibre Fashion has mainly two types of information system namely a customer detail keeping digital information system and spreadsheet for detailing customer details and sales per brand. The first information system has a number of forms to fill like customer details, cost details, transaction details and order details. Each of these forms is having a number of areas to fill which is not only time taking, but also difficult to fill and keep a record for the person in charge. The second information system, the spreadsheet is very difficult to understand for even an experienced excel record keeper. Organisations keep their record of sales keeping in mind the fact that they can be analysed and presented easily for good decision making. However, the way the excel spreadsheet is developed for managing the sales is not inline for easy decision making or for easy to understand visual representation. The main reasons for such record-keeping of sales can be attributed to the number of brands and B2B clients that the company deals. However, the main motive of using an information system like spreadsheet and customer record-keeping systems seems to off track in case of Fibre Fashion. Therefore, the main research question to answer here is

• How Fibre Fashion can improve its information system for better decision making? 

3.0 Researching the issue and presenting a literature review: 

The main issues identified for Fibre Fashion is that of the inefficiency of the information system, complexity of the database system, difficult to understand, difficult for easy decision making, not possible for the proper visual representation of data and time taking. However, these are the issues information systems are supposed to resolve. 

3.1 Models of information system: 

There are two models that can be analysed in light of the current issue identified-technology acceptance model and Delone and Mclean’s IS model. According to Al-Mamary, Shamsuddin & Aziati (2014), individuals are reluctant to use technological and digital methods mainly due to ease of use and perceived usefulness. Small and medium-sized firms and the employees within such organisations are unable to accept the easy to use and usefulness of digital information systems and therefore creates problems. Organisations who are able to see the benefits adopt and accept IS in the initial phase of business operations (Aldholay, Isaac, Abdullah, & Ramayah, 2018). Delone and Mclean's IS model shows that organisations who see net benefits use information systems though the success of IS system depends on 6 factors namely system quality, information quality, user satisfaction, user, individual and organisational impact where the intention to use is the 7^th factor. It means that even if organisations adopt IS systems, without a quality information system and quality information to input, it is not possible to get user satisfaction and neither organisational productivity. 

3.2 The benefits and usefulness of using information systems: 

Wang & Wang (2019) remarked that the main purpose of information systems (IS) to the efficient use of information gathered. For example, using IS, managers can share information in folders and share with the employees who need the information to make rapid decisions. This makes collaboration in a systematic way. Lipaj & Davidavičienė (2013) is of the view that using IS, companies can segment the markets and identify the opportunities in the market easily and thereby can make decisions that can help in increasing sales and customer satisfaction. Integrating information like customers, suppliers, products and services and employees in charge for certain activities through an integrated information system can help a company to increase their performance and productivity in the longer run. Owens, Wilson & Abell (2019) in this context remarked that IS results in a number of benefits expressed in different parameters like reduced cost, increased co-ordination and monitoring of business activities and productivity of employees, especially the works done by the employees. AlBar & Hoque (2019) opined that using management information systems, companies can develop a set of alternatives and a course of action. For example, when accurate and up-to-date data and information is put into the information system, the output can help in making several alternative decisions with confidence.  

However, McHaney, Cronan, & Douglas (2019) argued that even though management information systems have become a general norm in the modern-day businesses, issues corresponding to security, ability to operate the system and cost of buying and managing the IS system are the major constraints for businesses, especially small businesses. Pearlson, Saunders & Galletta (2019) on the other hand, pointed out the relevance of resistance to change as a major constraint in using newer versions of IS systems. However irrespective of the constraints, proper IS system benefits are higher for an organisation as identified from the remarks of several scholars analysed above. One example is of Sainsbury, a UK based supermarket chain which has now also expanded into Australia through Coles Supermarket and e-commerce business. The company is the first in Europe and in the Oceania continent in using information systems to speed up its sales and bring customer satisfaction. However, the initial investment was higher. The company is also continually improving its information system (Caines, 2012). 

3.3 Different types of information systems: 

Fibre Fashion though has its own IS systems, but due to their complexity of use and inefficiency for decision making, the company is unable to make proper decisions. In this context, using a proper and highly effective, easy to use and cost-effective information system is highly relevant for the company to gain the benefits and advantages discussed above (Tierry-Aguilera, Vilalta-Prdomo & Mora-Vargas, 2019). There is a certain number of IS systems that can be taken into consideration. They are the followings:

Transaction Processing System:            

For recording basic financial and operational activities like cash deposit, flow of materials, sales, receipts, payroll as well as credit decisions, Transaction Processing System becomes effective. This is an automatic computer-generated system that automatically updates these daily activities (Susanto, 2019). As it is a computer-generated automatic system, it does not require manual input of data which is effective in increasing the efficiency of the business activities.  

E-Commerce System: 

The e-commerce system is a digital method that uses digital technology and intranet to carry out business activities like purchase and sales of goods and coordination with partners.  

Management Information systems (MIS): 

MIS feeds data from other information systems like E-commerce systems, Executive information systems, transaction processing system as well as Decision information systems to bring results that help companies to make informed decision making (Lipaj & Davidavičienė, 2013). Having an MIS system means having other information systems under its branch which can be helpful in making effective decisions for organisational growth.  

4.0 Recommended solutions: 

The two main issues that are being identified for Fibre Fashion are the ineffective operation of the spreadsheet and the complex use of Management Information System. Considering the financial status of the organisation it is recommended for the organisation to switch to SAP Technology, which will play a pivotal role in the reduction of both the issues that the organisation is currently confronting. Considering the current system that the organisation is and laying a brief insight into the issues that they are facing. It is seen that the spreadsheet operation is quite complex, which is very difficult for the staff to operate.  

The operation of the spreadsheet is manual. Manual operation is always a risky one. The organisation is trusting on the manual operation for maintaining the significant details of the organisation, which are quite important for the operation as well as evaluating the organisation growth and profit. It is seen that Fibre Fashion is maintaining their customer base by using the excel features, which is not generally accepted from an organisation in the age of digitalisation. A minor mistake in the manual handling of a complex spreadsheet may lead to huge damage for the organisation. It is seen that the organisation is maintaining its retailer's details in a spreadsheet. This sort of maintenance is highly risky as the confidentiality of the information can be compromised at any time and in any way.  

Now the emphasis is being led upon the solution of the issue that has been discussed above. The utilisation of SAP Technology can help the organisation to get rid of the issue (Menon, 2019). Firstly, focusing on the security of the confidential retailer’s information, it is a well-known fact that SAP Technology is cloud-based and therefore, it has high security, which is highly needed for Fibre Fashion in this case (Elbahri et al., 2019). 

In the spreadsheet, it is seen that the manual handling was done, and for that reason, they strike off the organisation with whom they are not involved with any sorts of operation. On the other hand, if the organisation is using the SAP technology, then they can keep the record in a much-organised way. SAP technology dedicatedly contains the block for the vendor information, where the detail information regarding the vendor is being maintained (Xu, 2017). Over here, there is no need to scratch the name of the retailers as there is an option to eliminate them without striking them manually.  

The second issue with the spreadsheet is calculating the total season sales, average sale and the number of new clients within the spreadsheet. This is not at all accepted as the information should be kept very much confidential. 

In order to calculate, the total season sale, average sale and the profit or loss, the utilisation of SAP technology can be done. The above figure shows how the calculation can be performed by keeping the data protected and secured.  

This Fibre Fashion can utilise the SAP technology for addressing the issue of the spreadsheet. 

The second issue is regarding the use of MIS software. The MIS software is quite complex to use.

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The maintenance of customer data is quite complex for the employees of Fibre Fashion. The names of the clients are difficult to comprehend along with the state from which the client belongs. This issue can be solved with the help of SAP technology.  

SAP technology is specially built with customer data management software, which helps in an organised way of maintaining the customer data along with the address of the customers and the city of the clients where they reside (Rasal et al., 2016). This will help in protecting the customer’s data as well as the data of the customers.

 Considering the rest of the case, it is seen that the transaction, ordering and maintaining the cost of the goods is fine for the organisation. However, the maintenance of the above can be done by utilising the ERP software. 

5.0 Conclusion: 

From the above analysis, it can be said that Fibre Fashion can be benefited by using the new SAP Enterprise Resource Planning software for managing its activities. As this method includes all the necessary business activities, it can be helpful for the company in taking better decisions. All managers and employees can be directed in a better way. However, the company needs to ensure that all the employees accept this change in the business process by ensuring proper training for the employees who need to mainly manage the new information system. Further, Fibre Fashion is also required to ensure that the security of the system is protected and is not used unauthorised as it may hamper the main motive of implementing the new system.