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HI5019 Strategic Information Systems1

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Question:

1. Identify the company’s critical success factors and primary objectives. What types of information might be helpful in evaluating these objectives? Create a mission statement that would be appropriate for your client business.
 
2. Develop a formal organizational chart based on the information given.
 
3. Analyse the current system and identify specific control weaknesses that must be addressed by a new, improved system. As part of your analysis, prepare a document flowchart and a data flow diagram of the current system.
 
4. Describe the primary features of this new system and explain why this is the best solution for your client to pursue. Discuss the relevance of such advanced technologies as MRP, MRPII, and EDI as information system options.
 
5. The proposal should also contain the following items:
 
a. A description of the technology platform for the system.
b. A list of financial and nonfinancial data attributes for each entity in the ER diagram.
c. Four user views, which can be source documents or management reports. At least one view should support the needs of a non-accounting user.
d. Examine potential security risks, data breaches and provide discussion of the appropriate accounting controls for the new system.
 
 

Answer:

Introduction

Strategic Information System is a system of information systems developed in response to the company's business plan. They are designed to give competitive advantage to organizations. They may be focused on a lower price, differentiated, clear market share, or on novel products and services.
Strategic Information Management is an important feature in the field of information technology. Typically, SIM allows businesses and organizations to categorize, store, process, and create and receive information to receive. Companies also provide tools to help them use statistical and analytical tools in their repositories, so that they can identify growth opportunities and identify ways to improve efficiency.

A Strategic Information System may be described as a set of definitions which help companies to develop plans and plans according to existing specific features. The main purpose of merging such systems is to enable the entrepreneurs to evaluate environmental changes and to use them in a suitable way. In general, SIS can be divided into 3 types: strategic, operational and financial. These types are related to some extent based on the type of business related to each other. SIS helps support system systems to facilitate business information and facilitate decision making systems with company business policies. In addition, SIS provides solutions that enable them to set and complete long-term and short-term business objectives.

HSBC Bank CSF & primary objectives 

ES implementation supports many methods, which may vary from organization to bank depending upon the requirements and capabilities of an organization. Execution methods include: full implementation, pilot implementation, and phased implementation.

The approach taken by banks is best suited to their business needs and operations, as the banking system uses almost all modules of ES. Therefore, it must find a way to include business actions.

Companies which are big and striving, utilize inclusive method to execute ES system. This is odd for a company to execute all the modules at the same time, however many companies are ready to take risks.

By utilizing this approach, HSBC can save the costs, reduce time needed to finish business processes and facilitate everyday work as well as decision-making. Though, a number of resources must be allocated, execution costs and time economics are not extremely high except high risks and uncertainties.

 

Pilot implementation method involves implementing a comprehensive ES system at chosen organizations, branches or locations. The legacy system still works in an organization. After success of an ES system on the test site, it is executed on an excellent branch or site of the organization, usually with a direct and comprehensive approach (Babu, and Bezawada, 2012). Information Technology look into recommends that data innovation and web decrease the expense of procedures, correspondence and to change the business topic. Data innovation lessens the expense of advancement, dissemination and correspondence. Besides the cost decrease in circulation channels empowers associations to diminish the expense of stock. Because of the development in data innovation, associations can accomplish cost initiative procedures by giving achievement administrations

Using a pilot implementation approach can reduce the risk of system failure as it will serve as test process for ES system. The pilot execution method is costly compared to integrated ES execution method and maintains organizational data security through horizontal operations.

Earlier, in HSBC, diverse information systems were utilized to serve diverse business functions such as manufacturing, marketing, production and sales. The business procedures in every business function are completely different and cannot share information along with each other. It is not easy for the managers to collect divergent data in distinct systems to fully understand the organization's operations and make decisions about the entire company.

For example, when a customer places an order, the seller cannot tell him whether the product is in stock or if it is produced. To overcome these problems, many organizations in recent years have chosen to replace various different information systems along with a sole integrated system which supports business actions for diverse business functions. These methods are known as the Enterprise System.

ES are the large-scale software packages which support the information flow, business processes, and reporting as well as data analysis in intricate organizations. Whereas ES is usually packaged Enterprise software (PEAS) system, they can furthermore be customized personal systems that support the needs of a particular company. Although data warehouses or business intelligence systems, in the field of E-packaged packages often sold by ES sellers are often terminated from terminology because they do not directly support business process execution. ES are built on the software platforms, for instance, SAP's Oracle's Fusion and NetWeaver as well as the databases. From the hardware perspective, ES systems are storage and servers related software that big businesses utilize as the basis of their IT infrastructure. These systems are planned to handle a large amount of crucial data. The systems are usually designed to give high level of data security and transactional performance (Fatimah, &Trisminingsih, 2017).

 

Information might be supportive in assessing objectives

An enterprise system (also known as ES system) is cross-functional information system which provides the integration and coordination of an organization's core business processes as well as assists in planning organization's resources. With Business Resource Planning System, the information from the company may flow unquestionably. In addition, you can integrate diverse business processes of production, sales, production, human resources and logistics into the process of business of bank.

No one wants to do business in isolation where each department works separately from another. Collaboration amid departments is essential and often necessary part of business. As the data input to the ES system is centralized and consistent, there is no reason why departments cannot work jointly. Software covers approximately every feature of business; hence it naturally promotes collaboration as well as cross-departmental efforts.

Current system as well as control weaknesses 

At present, HSBC uses an ES system. In long run, the ES systems may help companies improve productivity and efficiency, but implementation may have the conflicting effect, that is not considered always. When budgeting, you must consider the cost of finance and the time of the ES project team members. The company's internal staff must be responsible for the project, converse as well as work closely along with ES provider to get the finest results. Even if ES system fulfils all business expectations and requirements, one of potential pitfalls may be lack of testing. A sufficient number of tests must be performed in the ES implementation to ensure that it is executable at deployment time. Testing will provide an opportunity to highlight any issues, so they will be processed before the system is fully implemented and real-time (Goel, Kiran, Garg, 2012).

New System: Primary features 

MRP, MRPII, and EDI relevancy

MRP stands for Material Requirements Planning. HSBC can collect these systems from the names to help you plan the quantity and quality of materials need. MRP is designed to help manage manufacturing processes and is a relatively niche software category. Companies typically use these systems to manage their production plans and use them to predict and order materials. This ensures that when these materials are needed for production, the right amount can be obtained on the correct date. The main features of the MRP system include inventory management and production scheduling software. As the accounting tools point out, data integrity must be very high. If not, HSBC material forecasts will be biased, which means you will end up receiving too much or too much material. This will not only reduce production speed, but also cause inventory control to fail. MRP technology was used in 1980 to prepare a new method called Production Resource Planning or MRP2. Effective production planning in manufacturing resource planning (MRP2) is so successful that the organization knows that they can use effective strategies to manage resources and manage plans. The most important and most important benefits of construction resource planning (MRP-2) in supply chain management are as follows: Good stock management • Product relations, Best quality • Improved design control • Improved cash flow through fast delivery • Accurate stock records • Operating for decreasing shares Capital (Kong, and Daud, 2013).

 

5. Proposal Items: 

a. Technology platform 

The banking industry includes its own specific technical restorative, operational challenges, complex data clauses and security issues. For most of these and other similar issues, ES software is not less than one-stop solution. Banking includes many types of activities like loan service, deposits and fund transfer. Many banks have large branch networks, sometimes there are thousands of branch networks around the world. They must maintain strict privacy and strict compliance with client cases. ES software programs help integrate and integrate a variety of financial procedures, HR management as well as support services. ES software applications effectively impact all the functional areas which define efficient banking system. So, let's suppose that the whole ESA uses a common database system with open architecture running on common hardware and operating systems. Universal Resource Planning Software is so popular in the banking industry that there is no need to understand rocket science. Due to their increasing popularity, many sellers offer ES software applications in highly competitive markets. Following are the top 10 ES systems for various business purposes:

SAP: This is Market Leader in Financial Accounts, CRM and ES Solutions. The SAP is primarily used by the top banks, which means that institutions which can meet the expense of the costs of high school software systems only mean.

Oracle EBS: The most widely utilized ES systems in banking industry. SAP and Oracle EBS have markets with their high-performance-focused and secure application processes.

Corneel: Management of the private banks, foreign banks as well as other financial organizations engaged in payments and loans. It offers various types of currency accounts, back-office interfaces, merchant service, payment levels, card services as well as online banking (Kremers, and van Dissel, 2000).

ES speak to a particular classification of data frameworks. They expand on pre-bundled industry best practices implanted in institutionalized item programming and target large?scale incorporation of information and business forms over the entirety of organization's useful territories and past organization outskirts. Undertaking Systems unequivocally interchange with work practices of individual representatives and also authoritative structures forming and being molded by people's conduct." Specifically with regards to process-driven programming items just a little arrangement of the actualized reference business forms is shared over all ventures. Numerous business forms are industry particular. In this manner, industry-particular programming actualizes industry best practices. Information digging and concentrated offering for advancement can build the results in saving money, stocks, protection, and exchanging association. Utilizing tweaked systems, entrances, Dashboards, and numerous other IT answers for give different clients each changed understanding, will raise the effectiveness level. At least one zone of the business can be upgrading to fit HSBC association needs and take your business to the following level. As managing an account is right now considered a non-run of the mill territory for ES utilization, the creators led a review on foreseen benefits, potential inconveniences and usage achievement related with ES appropriation in saving money. The outcomes show that, regardless of a prevalent use of ES frameworks in back-office regions, banks see ES frameworks as a long haul key venture to help hierarchical adequacy.

b. Financial & non-financial data attributes

c. User views 

Independence of date: Another advantage of the database administration frameworks is the manner by which to accomplish information autonomy. In different terms, framework information is either separate from the application. This is conceivable on the grounds that information structure changes are taken care of by the database administration framework as opposed to in the program.

Backing up and restoring devices: Backup and recuperation is an approach to shield your information from mischief. The database framework offers a different method from information reinforcement and system reinforcement to reinforcement. On the off chance that the hard drive comes up short and Qantas can't get to database put away on hard drive, the single method to get back the database is to back it up.

Welfare Perspectives - The advantages of ES are infrequently acknowledged: there are numerous explanations behind executing ES, which is regularly reflected in a positive business case and is relied upon to satisfy inside five years. In actuality, 80% of ES ventures have not accomplished this objective, or have not accomplished this objective.

Isolation between data and programs: In a document based structure, the information record structure is depicted in application, in this way if the client wants to adjust the record structure, it might be important to change all projects that entrance the document (Matende, and Ogao, 2013).

 

d. Security risk and data breaches 

There are huge opportunities for growth and value creation opportunities in ES implementation, as well as risks, high cost of IT infrastructure, application maintenance, system updates, consulting, and customization.

The general reasons for the failure of ES implementation in any business are comparatively because of poor organizational structure as well as management, which are an important business issue in execution, as described in the Christian Vogt (2002) publication.

Survey organized by the Shari SC Shang along with Tsung-Lin Wu (2004) asserts that many studies focus on their strategic interests, rather than on the motivation to be disappointed after implementation. Therefore, some of the reasons related to the failure of ES implementation comprise:

  1. incorrect data
  2. Non-corresponding of the Software along with the business need
  3. keenness in execution
  4. Long-term funding
  5. Depart of the guarantors
  6. unsuccessful consultation

Many studies have shown that several organizations that are willing to execute ES systems in their organizations utilize incorrect data that is mitigated as records become available. As a result, data inaccuracies can affect the recording of data and information that needs to be included with ES system, so that the records are inactive in confirming the records to be integrated.

Because the software discovery is not suitable for banking business needs, the management of a large number of products is inefficient, and it is impossible to plan complex bills. Therefore, the ES system software is mismatched with materials and planned inventions due to the unreasonable selection and evaluation process of the bank's comprehensive ES system. Due to mismatches, ES systems have evolved in a limited way. The lack of compatibility amid the organization's business procedures and the ES system may result in significant loss of explicit or expected benefits. The basic business process flow will rely entirely on incorporated ES system; the weirdness amid them can direct the organization to reduce productivity as well as ultimately lead to ES systems’ failure (Pamungkas, 2009).

Due to the lack of clear functional requirements, ES system implementation may fail, and almost 60% of ES system implementations lack extensive requirements definition failures. As Vedabrata Basu, Al Lederer (2011) conveys, the lack of specification and description of the required module definitions and the degree of understanding of business processes may lead to the collapse of ES system implementation. Due to the unequal ES software and excessive reliance on strong customization, program customization requires strong customization that leads to the budget overruns, project delays, and even untrustworthy systems. The new business process itself (sometimes called the refund on investment) can affect the success of ES system in the organization and is a complete failure. Another important reason for the failure of ES implementation is the ES vendors estimates ROI and other benefits by increasing the quality and efficiency of ES system software. The organization cannot enable to achieve the expected return on investment without taking into account the expenditure like training, testing and data conversion.

The guarantor's deposit is another problem related to the implementation of system failure in certain organizations. E.A. implementation is usually around 7:30 in the event of the implementation of an experienced project implementation plan during the implementation of the office, as the efficiency process will be spread widely and the entire system is inaccurate. Therefore, removing their posts or changing management posts can prevent the success of ES system implementation in the organization. Most organizations implementing ES systems are ineffectively used by consultants and will be negotiated one or two times through the process (Venkatesh 2013). Consultation should be as much as possible to keep abreast of the project, and many organizations consider the implementation process without proper consultation of experts, leading to a complete failure.

Appropriate accounting controls 

ES implementation is a strange challenge and a problem, so any institution should be prepared to face the common cause of failure or failure.

The failure of ES system implementation () is the main reason for senior management support and dedication in failing. Therefore, senior management dedication and support; Effective ESL system implementation is used to succeed in ES system instead of failing.

Another problem is the inclusion of the ES deploys staff to get the skills of the essentials, which requires a special adviser to assist the employees with the help of the system. Therefore, the appointment of the advisory team to assist in the implementation of ES system is essential to avoid failure.

Most employees and customers are very worried about the new ES system because they are aware of their complexity and have the necessary certifications for the operating system; this will cause customers to protest, object and complain because they are used more for older payments. As a system, banks must utilize training to identify users with the changes made by system; the main employees' identity is also utilized to help ES system that helps users comprehend the best components of system and its potential benefits.

The expected level of service may not be expected by the bank and the client's expectation for ES execution is more than the preliminary stage. So, banks must analyze the incredible advantages of ES system execution and it is necessary to combine tangible and intangible benefits with future earnings through margins to get returns on investment.

Therefore, banks need to be aware of inadequate resources, lack of funds and failure due to technical support; Coordinating and monitoring human resources from different groups to those locations can be used to ensure good technical infrastructure and successful implementation.

The management of flexible, handy management framework and management of all implementation activities is dynamically a big problem for banks. Defines what is being done, how to do it, how to do it, and how to solve rules, and defines the implementation process in the external and internal teams. Management models can be created to provide full structure through internal models and external teams and to support strategic, operational and operational banking goals.

Conclusion

ES system execution has proven to be the good idea, which has several concerns and challenges, but offers opportunities to improve institutional performance such as business consolidation, strategic planning, operating costs reduction and encouraging daily management. Overall, it indicates that the ES system has significant benefits to the system implementing system, provides significant benefits and the risk of execution does not exceed the expected value, however, the case discussed in the award indicates that e-projects can be implemented. Dangerous or even unsuccessful many organizations have many software components that work with specific ES capabilities, but standard and integrated ES systems provide difficult and costly interoperability to independent and custom built buildings. Because of the advantages of ES system, many organizations consider a competitive and important information system infrastructure in today's business and support for future growth but failure of some banking ES systems is endangered. High-level management assistance, brilliant management structure, high-quality organizational culture, and any ES system execution can be effective and beneficial.

Recommendations

But, for the successful implementation, four major components - the skills of internal team; Proper execution partner; senior management commitment as well as support; and effective project management practices It brings knowledge to IT professionals who know financial package business skills. This helps the project to get a macro, company-level perspective.

  • All E.S. From the above discussion of implementation methods, it appears that due to lack of high risk or complete system failure, the aggregated approach to organizations with high-traffic business is not suitable.
  • Although ES systems are more than just traditional information systems, ES-based execution always takes such actions that business processes are replaced. Several companies included in ES software systems are not full-time IT experts. So, full IT consultants should at all times be engaged for consulting, implementing and training.
  • The implementation of the technology expansion and ES can be used as a process-oriented perspective to address the problems expected during the implementation period.
  • Banks must adopt a strategic implementation phase which includes other processes like training and support, approval and execution time. In most common situations; Experience and retention are the characteristics that users have used to evaluate the quality of the system rather than the scientific features.
  • The positioning step by step addresses the distributors of the ES system and reduces the user's resistance. Positive expectations are the foundation for ES system implementation, but the user's concern and resistance are serious. Feedback will be used to evaluate ES system as well as user's needs.
  • To overcome some micro-problems, a more comprehensive research is needed, which creates an error in some banking ES systems and helps in better implementation of IT policies, value chain analysis and value-benefit analysis process.
 

References

Babu, K. and Bezawada, M. (2012). Enterprise Resource Planning. SSRN Electronic Journal.

Bahssas, D. (2018). Cloud Enterprise Resource Planning System. International Journal of Computer Trends and Technology, 55(1), pp.50-81.

Fatimah, H. and Trisminingsih, R. (2017). Analyzing Success Factors of Enterprise Resource Planning Adoption using Analytical Hierarchy Process. International Journal of Innovation in Enterprise System, 1(02), p.46.

Goel, S., Kiran, R. and Garg, D. (2012). Vulnerability Management for an Enterprise Resource Planning System. International Journal of Computer Applications, 53(4), pp.19-22.

Hoch, J. and Dulebohn, J. (2013). Shared leadership in enterprise resource planning and human resource management system implementation. Human Resource Management Review, 23(1), pp.114-125.

Kong, P. and Daud, Y. (2013). Effectiveness of Enterprise Resource Planning System in Supporting the Lean Manufacturing. Applied Mechanics and Materials, 315, pp.899-904.

Kremers, M. and van Dissel, H. (2000). Enterprise resource planning: ERP system migrations. Communications of the ACM, 43(4), pp.53-56.

Matende, S. and Ogao, P. (2013). Enterprise Resource Planning (ERP) System Implementation: A Case for User Participation. Procedia Technology, 9, pp.518-526.

Pamungkas, B. (2009). ADempiere 3.4 ERP solutions. Birmingham, UK: Packt Pub.

Pavel, J. and Evelyn, T. (2017). An Illustrative Case Study of the Integration of Enterprise Resource Planning System. Journal of Enterprise Resource Planning Studies, pp.1-9.

Sun, Y. and Bhattacherjee, A. (2011). Multi-level analysis in information systems research: the case of enterprise resource planning system usage in China. Enterprise Information Systems, 5(4), pp.469-494.

Venkatesh (2013). Operation of enterprise resource planning system implementation compatibility towards technical advancement. Journal of Computer Science, 9(2), pp.169-175.

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