Discuss aout the Introducing Information System for a Taxi Cab Business.
A taxi cab refers to a type of vehicle with a driver used for hire by a single person or a group of passengers. Introducing a new software system, however, is not a guarantee that the business will succeed (Brown, Chervan & Reinicke 2007). Therefore, while introducing new software the business should ensure that the software one that will best serve the organization. Feasibility should be conducted to ensure that the software has positive rather than negative effects the normal operation of the business. Therefore, it is good for business to study the current system before introducing new software to manage the system. My case study, therefore, tries to dig deep on some of the impacts that new software would have on the current running of a taxi cab business.
Components of feasibility study
A feasibility study is a project document that shows the outcome of a proposed project. Therefore, before the taxi cab introduces new software to manage their information system, they have to consider the components of the study. Technical components such as requirements and project scope should be clearly defined to ensure that appropriate requirements are assigned to the project (Cook, Woods & Howie 1990). The behavioral components will determine how the system users will react to the newly introduced software. The study should, therefore, capture what users require and it should be a system that suits user needs. Economic components will determine the impact of the new software to the economy. It should be viewed as an improvement to the current software rather than software that is a burden to the economy.
Advisory information for the company
The company should, therefore, consider the impact the new software will have on their current mode of operation. They should conduct a well-researched study to ensure that all the requirements of the user are properly captured in the new system. They need to ensure that the new software will have a positive impact and one that can maximize profit while reducing loss and mitigating risks. During the implementation process, they should consider either a parallel or phase method of introducing the software since it is a new system (Davenport & Short 1990). This is because the new software might have a severe risk that may eventually result in loss of customers to competitors. For example implementing a system without conducting feasibility may reduce users’ interest as they will feel they were not involved during the implementation process.
Benefits and risks associated with the new system
Introducing a new system is not a guarantee to succeed over the old system. There are benefits and risks associated with such system changeover (Mitev 2000).
Higher profit: a new system is likely to maximize profit as there is increased efficiency with less cost.
More competitive: the newly introduced system is likely to be more competitive with the old system. This will give the business a competitive advantage.
Less workforce: less workforce will be required if the new system can be an automated system. This will give the business an added advantage as less manual power will be needed.
Introducing a new system is not a guarantee to success over the old system. The following are some of the risks that may be associated.
Implementation expenses: the cost of implementing a new system may be expensive. Implementation process may involve many user requirements that may be expensive to afford.
Failure to meet user needs: the new system may fail to meet user needs as expected. This may result in severe loss of customers as customers may opt to shift to other organizations that offer the same service.
Adaptability by users: It may take a very long period for the system users to adapt to the newly implemented system. This will result in loss of customers as they may see it difficult to learn how to use the new system.
Method of implementation
Since this is an already existing business, it is advisable for the business to use a parallel method of implementation. This method involves introducing a new system while the other system is still in operation (Galbrait 1977). It allows the result to be compared to ensure that the new system is properly working without affecting the operation of clients. It offers an opportunity to refer to the old system to identify the problem and make necessary modifications. The parallel introduction will also allow the operations to continue under the old system while problems on the new system are addressed. This will give the staff and will also help them in gaining confidence to work with the new system. However the cost of implementing parallel system may be expensive, but it is the best method to introduce a new system since other operation by clients will carry on normally. The system administrator will, however, be required to input or change data to the new system. This data must be the same as the data in the old system to ensure that the information in both old and the new system are identical.
Time frame for implementation
Since the main objective of implementation stage is to allow users to use the system in line with set goals of the business, it is advisable to set a plausible time frame that can accommodate the challenges that may be associated with the implementation process. The business needs to learn the clients’ response to the new system and see if post-implementation process is required. A period of 100 working days is appropriate to implement a new system (Ives & Learmonth, 1984). This period offers an opportunity to conduct any necessary correction before final implementation is finalized.
The business should consider many factors that may be associated with the introduction of a new system. The implementation process should be addressed during introductory stage and collection of requirements to ensure that the newly implemented system is one that is successful during operation (Patterson, Cook & Render 2002). The system should be accepted by clients and the operating administration environment. The system should, therefore, be a system that can maximize profit, reduce loss and mitigate risks. The system should address all clients’ requirements and serve them without any disruption. The system should also remain competitive with the system of other taxi cab business.
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