In major context of the information Technology and the Information science, Woolworths has decided to let go of five hundred employees from corner to corner its support office and the supply chain network. It will also mark down the millions in the IT benefits as the new chief executive officer Brad Banducci commences a reconstructed operating representation (Woolworths.com.au 2017).
Woolworths is facing major challenges. The company has been struggling with the supplier relations during its most current quarter. There were also issues with the presentation of the replacement of the assets of the Company and the inventory systems. The relationships with the suppliers have also been strained. The other challenges that the company is facing is the slow consumer cycle. Then there is the sales struggle, which is a major challenge. The deleverage of the Australian supermarkets and the quality of the product has become an issue. The New Zealand supermarkets are also facing greater competitive pressure.
Woolworths wanted better customer satisfaction and to gain advantage over competition. The Company had the vision to increase the revenue and save more by improving the productivity and the efficiency of the employees. The completion of the projects of the Company should also be within the desired budget. The intention is to invest in the advanced analytics.
The purchasing power of the customers is to set the increase in the near future. There is an insistent push by the Federal government and the ACCC to a lower competition barrier. Latest competitors have to be allowed to penetrate the market in order to increase the choice of the consumer. The increase of the consumer bargaining power would lead to the rise in price of the comparison websites. That will enable the consumer to enable the prices and choose the cheapest alternative that is available (Abeywickrama and Zambonelli 2012).
The pros and cons of these IT strategic decisions is the expanse of the Company in the marketplace to the national and the international markets. The expanding of the base of the customers and the suppliers will enable the organization to sell more at a cheaper rate. The consumers will benefit from this and will be able to shop from any location. The customers will also be able to interact with the company. The disadvantages are regarding the security and the privacy concerns that deter the customers from buying. For the long term, the level of online fraud is increasing. In both short and long-term scenarios, some of the customers would like to touch and feel the products. There is also the resistance from the customers regarding the change of the shopping experience from the buildup store to the virtual store (Slack 2015).
The main role of the IT is for the supply chain management to manage the entire supply chain in order to gain the competitive advantage. It is important to maintain the trusted and respectable connection with the manufacturers. The IT helps the company regarding the issue of the distribution. IT is the key business driver. The implementation of the new software is still in process but he has seen a material improvement in the performance.
The decision of the new management in writing down the millions of dollars in the It investment is a good move. This will help the business to expand the required skills in both the area of data analysis and the undeviating selling to renovate its supply chain. Woolworths is now focussing on the online performance of its singular brands. The supplier relationships have also been strained over the last year due the troubled six year of the Company that will be fixed with the help of the new management system (Benlian and Haffke 2016).
(8.1)The chief information officer has certain responsibilities to fulfil. He has to be the one who will take the decisions regarding the purchase of the IT equipment from the suppliers or the creation of the new systems. They have to direct the workforce of the organization. (8.2)The retailer has the new IT foundation program which aims to catch up on the underinvestment in the IT infrastructure with a specific focus on the self-service checkouts and the point of sale systems. (8.3)If the CEO rejects the idea then idea and the objective should be reframed and conveyed to the CEO. The ideas should meet the goals. The response to an objection should be available and has to be supported with a reason (Laudon et al. 2012).
The information systems to be used are the Transaction Processing systems that are operated directly by the shop floor workers and the data is obtained through the automated or semi-automated tracking of the basic transactions. Then the Management Information systems can be used to ensure the smooth running of the Organization in the short to medium term. The Decision Support System will support the ill structured decisions and have an analytical capacity. The executive information system will help to predict the future and support the unstructured decisions (Stair and Reynolds 2013).
There was poorly thought out strategy and there was selling of the wrong stuff. Part of Woolworths’ plan was to introduce a leaner operating model and to replace and implement a number of company-wide systems. This was done to improve underlying processes. This is about the process of stability. Woolworths has also introduced the success factors HCM across the company. The new ERP system in the merchandizing platform is now stable and has been implemented. When the platform went live for Big W mid-last year, the store was unable to process orders for suppliers, leaving empty shelves and millions in lost sales.
The Stakeholders are the customers, employees, unions, suppliers, franchisees, shareholders and the investors and the business partners.
The functional requirements for the IT systems are: for Transaction Processing system the inputs for the transaction events, for processing the validation and sorting and for the outputs lists and detail reports are required. The Management Information systems requires internal files and structured data and in the processing field requires sorting merging and summarizing. The Decision Support System requires modeling for processing along with simulation, analysis and summarizing (Ricciardi and De Marco 2012).
Abeywickrama, D.B. and Zambonelli, F., 2012, April. Model checking goal-oriented requirements for self-adaptive systems. In Engineering of Computer Based Systems (ECBS), 2012 IEEE 19th International Conference and Workshops on (pp. 33-42). IEEE.
Benlian, A. and Haffke, I., 2016. Does mutuality matter? Examining the bilateral nature and effects of CEO–CIO mutual understanding. The Journal of Strategic Information Systems, 25(2), pp.104-126.
Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.
Laudon, K.C., Laudon, J.P., Brabston, M.E., Chaney, M., Hawkins, L. and Gaskin, S., 2012. Management Information Systems: Managing the Digital Firm, Seventh Canadian Edition (7th. Pearson.
Ricciardi, F. and De Marco, M., 2012, February. The challenge of service oriented performances for chief information officers. In International Conference on Exploring Services Science (pp. 258-270). Springer, Berlin, Heidelberg.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Stair, R. and Reynolds, G., 2013. Principles of information systems. Cengage Learning.
Woolworths.com.au (2017). Welcome to Woolworths. [online] Woolworths.com.au. Available at: https://www.woolworths.com.au/ [Accessed 25 Aug. 2017].