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MNG93211 Managing Information Systems

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  • Course Code: MNG93211
  • University: Southern Cross University
  • Country: Australia
 

Question:

Assignment topic

The purpose of this assignment is to evaluate your ability to develop a comprehensive implementation proposal for an information system that uses a systems approach. The proposal should be targeted at a potential ‘sponsor’ organisation that will need to be convinced of the appropriateness and effectiveness of the proposed new system.

Choose an information system (e.g., ERP systems, CRM systems, SCM Systems, Management Information Systems, Decision Support Systems, Executive Information Systems, Enterprise Portals, Data Warehouse & Data Mining Applications, Enterprise Collaboration Systems, Knowledge Management Systems, and so on, that you have studied in this unit. Alternatively, you may wish to combine features of several systems. Please note for the purpose of this assignment, mobile apps or other e-business and digital enterprise applications should not be used as the chosen information system). 

 
 

Answer:

Introduction

The intent of this paper is to present a report related to the implementation of an information system in Optus Company to assist it in improving its procedures and productivity in the industry. The information system could be any organized combination of people, software, data resources, communication networks, hardware, process, and policies that recovers, stores, converts, and distributes information in a company (Mamary, Shamsuddin and Aziati, 2014). Today, people majorly rely on the advanced information systems in order to communicate with each other by using a range of information processing instructions, physical devices, and procedures, stored data, and channels of communication (Rouse, 2018). Presently, businesses are moving in the race for improving their competencies to sustain the strong competition of the global market. Hence, organizations are trying to develop their agility level by refining the procedure of decision making in order to be more competent and operative to encounter the consecutive variations of the market (Karim, 2011). Considering this aspect, the report will suggest a new information system for Optus Company to overcome the challenges that it faces in the industry. Besides this, it will provide details of the system development life cycle for the selected information system.   

Information about Optus

Singtel Optus Pty Limited, traded as Optus is the second largest Australian company of telecommunications. The company is the wholly owned subsidiary of SingTel, which is based in Singapore since 2001. Optus majorly operates its activities with the brand name Optus, while preserving numerous wholly owned subsidiary brands, Virgin Mobile in the market of mobile telephony, Uecomm in the market of network services and Alphawest in the service sector of ICT (Optus, 2019b). In order to offer services, Optus majorly owns and runs its own infrastructure network, and procedures the wholesale services of the Telstra and National Broadband Network. It serves in the market directly to the customers and works as a wholesaler to other providers of service like Amaysim and Exetel. With its Optus 'Yes' brand, it delivers wireless and broadband services of the internet. Other services of wholesale comprise 4G Mobile and Satellite (Optus, 2019c). (Refer to Appendix 1)

Vision of Optus

The Optus Group has set high standards of professionalism, dedication, and perfect vision in the worldwide real estate domain. As a group with the major focus of consumer, the business is aimed towards promoting its vision of altering the way of living with respect to the future. The company gives major priority to describing, careful planning, implementation, accuracy, and higher quality deliverables (Optus, 2019a).

Mission of Optus

The mission of Optus is to offer unrivaled services that provide the best value to the customers. At Optus, Fashion comes with finesse, which has enhanced the expectations of the customers. The company is accountable for delivering all the assurances (Optus, 2019a).

 

Industry Analysis of Telecommunication Industry

The Telecommunications Services sector has altered the way people in Australia communicate by offering increased connectivity. Increasing demand for mobile services has happened at the expenditure of fixed-line services. Revenue resulting from wireless services has improved, determined by increasing consumption volumes of mobile data, and improved mobile connectivity. However, decreasing demand for the services of fixed line and high price competition in the services of mobile space has considerably diminished the revenue of the section generating potential. Generally, the revenue of the division is predicted to increase annually at the rate of 0.2% (IBIS World, 2018). Mobile providers have contended on a price basis by providing extra value on their topped plans.

External Analysis

Porter 5 Force Framework

Porter's Five Forces is a framework that recognizes and evaluates the five competitive forces that create every industry and assists in defining the weaknesses and strength of the business. This framework is generally utilized to recognize the structure of an industry. Normally used to recognize an industry's structure to determine corporate strategy, Porter's model can be applied to any segment of the economy to search for profitability and attractiveness (50MINUTES.COM, 2015). (Refer to Appendix 2)

Competition among existing players

The competition among players in the telecommunication industry of Australia is high because all the companies are offering similar kind of products (Optus, 2019d). The influences that a competing business can cause comprises an attractive advertisement, customer analysis, effective competitive approaches, and firm concentration ratio.

Bargaining power of suppliers

The bargaining power for sellers of advanced devices and technology is high. Companies of telecommunication cannot afford to lose the suppliers as customers in the industry demand for particular products.

Bargaining power of customers

Bargaining power is considered as the ability of the customers to influence the service prices. The customers can place the industry under pressure, which affects awareness of the buyer in the changes in the commodity's prices of the business. The buyer’s bargaining power is high while considering the switching cost.

The threat of Substitute products

Competition and Development in technology have decreased the profit margin in the industry. In the industry there can be an existing product that can be a substitute of a product provided by one business can enforce customer to switch to another alternative, for instance from telephones to internet calls, telegrams to emails.

The threat of New Entrant

The telecommunication industry possesses numerous numbers of barriers to entry. Few of the factors that can have an influence on the scale of the threat of new players could pose: capital requirements, branding, legislative policies, accessibility to distribution, patent rights, the probability of the industry, customer loyalty, retaliation, product difference economies, the difference in products, and scales of economies.

Internal Analysis

SWOT Analysis

A SWOT analysis is a model used to assess the competitive position of business by recognizing its opportunities, strength, threats, and weaknesses. Precisely, SWOT analysis is an initial valuation model that measures what a business can do and cannot do. A SWOT analysis is a fundamental framework that measures what is the scope of the business, where it can be placed through it (Sarsby, 2016). Utilizing environmental data to assess the company’s position, a SWOT analysis regulates the businesses to go home. (Refer to Appendix 3)

Strength of Optus

Computerization of activities carry steadiness of quality to the company’s products and has allowed the business to scale up and scale down depending on the demand situations in the market.

Optus with its devoted department of customer relationship management has capable to attain an increased level of customer satisfaction among existing consumers and operative brand equity among the potential consumers (Fern Fort University, 2019a).

Optus has successfully attained expertise in entering a new marketplace. The business expansion has assisted the business to create a new revenue stream and differentiate the economic cycle risk in the industry (Fern Fort University, 2019a).

Weaknesses of Optus

The structure of the organization is only compatible with the existing model of business thus reducing expansion in head-to-head product segments (Fern Fort University, 2019a).

Optus is not successful at incorporating companies with diverse work culture. Even though, Optus is successful at incorporating small businesses it has its share of failure to combine firms that have diverse work culture (Fern Fort University, 2019a).

Opportunities for Optus

The market development will result in weakening of competitor’s advantage and allow Optus to upsurge its attractiveness in comparison to other rivals (Fern Fort University, 2019a).

Decreasing transportation cost due to low prices of shipping can also bring down the prices of the products of Optus thus offering an opportunity to the business to either increase its profitability or pass on the profits to the consumers to increase market share (Fern Fort University, 2019a).

Threats for Optus

Laws related to liability in diverse nations are different and Optus may be uncovered to numerous claims related to liability given change in strategies in those markets.

Stable profitability has augmented the number of companies in the market in the last two years, which has increased the pressure on not only productivity but also on total sales (Fern Fort University, 2019a).

 

Problem and Opportunity Analysis

Optus is one of the leading organizations in the telecommunication sector that is successfully meeting the changing requirement of the customers. However, the implemented information system in the business does not support it in maintaining the privacy of the information and raising security issues. The company has claimed to take rational steps to protect the private information and personal security of around 300,000 consumers in three distinct incidents (Arellano, 2015). The hacking of the private information of the customers has majorly damaged the brand image of the company. The implementation of a successful information system into the business could support Optus to improve its image in the market and safeguard the private information of the customers. An information system is said to be the set of constituents that operate together to handle data processing and storage. Its part is to assist the main features of operating an organization, like decision-making, communication, record-keeping, etc. Business utilizes this information in order to enhance business operations, take strategic decisions, and attain a competitive advantage (Seidel, 2018).

To improve the performance and eliminate the chances of hacking of information Optus can adopt Decoy file System as an information system. This tool will support the company in tracking the hackers and save its customers information and offer the best services to them. This system will also improve the brand image of the business by safeguarding the private and confidential information of the company.  

Justification

Deception is the tool used by the cyber criminals to enter into the corporate networks; though, one-security firms deploy file system that can support in saving the business information. TrapX Security offers decoy file system to allow businesses quickly deploy false computer environments intended to fool hackers and make it simple for the team of Information Technology security to identify threats to the business network and examine the behavior of malware (Arellano, 2015). The issues faced by Optus Company such as private information hacking by the hackers can be solved by implementing deploy file system as the information system for the business to save the information. With the implementation of this system, the company will successfully improve its performance and image in the market. Besides this, through the support of this system company will be able to manage the information of the customers for the long period.

Cost/Benefit Analysis for Optus Company

Tangible cost

The increasing cost of maintenance and training of employees

Purchasing system

Tangible benefit

Reducing the cost of information processing

Intangible cost

Time consumption in developing a system

Intangible benefit

Effectively managing the privacy of the customers

Improving brand image

Cost/Benefit Analysis of purchasing Decoy File system

Cost

 

Purchasing software

$ 20000

Maintenance and training

$ 5000

Benefits

 

Increasing Profits

$ 25000

System Analysis and System Design

System analysis is the procedure of examining a business to recognize its objective and drives and create systems that will attain them in an appropriate manner (Wang and Wang, 2012). Another perspective looks at system analysis as a technique of problem solving that breakdowns a system into constituent pieces for the drive of the reviewing how well those constituent parts work and interrelate to realize their purpose. The information system is comprised of different components that are hardware, database, network, and people. Systems design is the procedure of determining the design, components, interfaces, and data if the system to satisfy particular requirements. Systems design can be observed as the system application theory to product development.

 

System Development Life Cycle

The systems development life cycle also called as the life cycle of application development, used in the information systems, software engineering, and systems engineering to define a procedure for developing, making, testing, and organizing an information system. The systems development lifecycle notion smears to a variety of software and hardware configurations, as a system can be created of hardware and software (Singh, 2011). There are generally seven stages in the life cycle of system development - planning, defining, building, testing, deployment, and maintenance. (Refer to Appendix 4)

Planning – Planning is the starting stage of system development life cycle which is comprised of defining the requirement of a particular system, the user of the system, cost of the system, and the time it will take to implement in the business (Langer, 2016). Optus is dealing with the challenges of data hacking which us affecting the image of the company and decreasing customer satisfaction and trust. In order to overcome this, the company requires an information system that could solve this problem. The system will nearly take 5 months to develop and the end user of the system will be Optus Company.

Defining – This stage is comprised of a general development plan in the system development life cycle. At this stage, the development team identifies the feasibility study and language of programming that must be utilized into the system. Optus is one of the leading telecommunication industry which reflects that it will not deal with any type of challenging in financing the information system for its smooth functioning.

Designing – Designing stage includes preparing the user interface and defining how the system will operate. The information technology department will look after this step and will prepare the best possible solution for the business.

Building – Building stage involves numerous types of software development procedures. It comprises generating graphics, compiling the assets, and programming source code into an executable system (Cannon, 2016). At this stage, the information technology department will be involved in developing the deploy file system for the business such that hacking can be avoided at maximum extent.  

Testing – The testing stage is one of the essential parts of an information system as its support in identifying the loopholes into the project and recognizes the solution for them (Alwan, 2015). Without testing an information system cannot be implemented in the business. The system development team will in the starting test the progress and development of the system such that in the future business do not have to face problems in the future.

Deployment – Deployment stage takes place after the testing phase because in this the system is offered to the businesses or implemented into the business (Innovative Architects, 2019).

Maintenance – After the release of the software application, some additional updates or work needs to be done with the changing requirement of the market. The information development team will regularly supervise the system and will identify the requirement of maintenance into the system.

Post Implementation Activities

Optus Company will follow some of the post implementation systems such as training of the employees, maintenance of the system, understanding the new changes into the business.

Training to employees

Optus will provide proper training to its staff such that they can effectively manage the newly implemented system.

Maintenance of the new system – Optus Company will regularly work in properly segregate the requirements.

Project Management

Project management is the exercise of introducing, designing, implementing, regulating, and closing the work of a team to attain precise objectives and encounter precise success criteria at the quantified time. A project is a provisional endeavor intended to create an exclusive product, service or outcome with a well-defined beginning and end commenced to encounter unique objectives, majorly to bring about valuable change or added value. The implementation is deployed file will be managed by proper analysis that must be followed by the business. Some of the steps involved n successful project management are:

  • Project conception and initiation
  • Defining and planning
  • Launching of project
  • Performance and control (Smart Sheet, 2019)
  • Project close
 

Change Management

Change management is a methodical method to trade with the change or renovation of the goals of the business, procedure, or technologies. The aim of change management is executing strategy for effecting change, regulatory change and assisting people to familiarize to change (Rouse, 2019). Such policies include having an organized process for demanding a change, as well as devices for replying to requests and following them up. Optus Company will manage the change by discussing the issues with the key stakeholders and providing the best possible solutions to that. Some of the steps involved in the change management are:

  • Preparing for change
  • Change management
  • Reinforcing change (Prosci, 2019)

Risk management

Risk management is the recognition, assessment, and prioritization of risks compiled by economical and coordinated resource application in order to diminish, display, and controls the prospect or influence of unsuccessful events that exploit the understanding of opportunities (Merna, T and Al-Thani, 2011). The company will manage different risk effectively by adopting different activities. The company will deal with numerous types of issues such as resistance to adopting the new and improved system and getting stuck to the old administration. Components of risk management are Risk avoidance, mitigation, risk transfer, and risk retention (FB Insurance, 2016).

Conclusion

The report has provided a detailed analysis of the system development life cycle of the deploy file system for Optus Company in the market. The company is dealing with numerous types of challenges such as information hacking. The hackers are hacking the systems to take complete information of the customers. In order to overcome this challenge, a paper has suggested Optus Company implement deploy file system as it is planned to support organizations in safeguarding their important information. The system has also followed the system development life cycle during its development phase. Moreover, different post-implementation activities that take place into the business are the training of employees and communicating changes to the employees. In the end, the paper has provided the project management, change management, and risk management of the implemented system.

 

References

FB Insurance (2016) Four Components Of Effective Risk Management [online]. Available from https://www.fbinsure.com/four-components-of-effective-risk-management/ [accessed 23 January 2019]

50MINUTES.COM (2015) Porter's Five Forces: Understand competitive forces and stay ahead of the competition 1st ed. U.S: 50 Minutes.

Alwan, M. (2015) What is System Development Life Cycle? [online]. Available from https://airbrake.io/blog/sdlc/what-is-system-development-life-cycle [accessed 23 January 2019]

Arellano, N.E. (2015) Company uses Decoy systems to trap hackers [online]. Available from https://www.itworldcanada.com/article/company-uses-decoy-systems-to-trap-hackers/100809 [accessed 23 January 2019]

Cannon, D.L. (2016) CISA Certified Information Systems Auditor Study Guide 4th ed. U.K: John Wiley & Sons.

Fern Fort University (2019a) Optus SWOT Analysis / Matrix [online]. Available from https://fernfortuniversity.com/term-papers/swot/1433/1371-optus.php [accessed 23 January 2019]

Fern Fort University (2019a) Incitec Pivot Limited Porter Five Forces Analysis [online]. Available from https://fernfortuniversity.com/term-papers/porter5/asx/1108-incitec-pivot-limited.php [accessed 25 January 2019]

Gregory, A. (2018) How to Conduct a SWOT Analysis for Your Small Business [online]. Available from https://www.thebalancesmb.com/swot-analysis-for-small-business-2951706 [accessed 25 January 2019]   

Harbour ISP (2019) Attachment [online]. Available from https://www.harbourisp.com.au/optus-logo-png-04905-png/ [accessed 25 January 2019]

IBIS World (2018) Telecommunications Services - Australia Market Research Report [online]. Available from https://www.ibisworld.com.au/industry-trends/market-research-reports/information-media-telecommunications/services/telecommunications-services.html [accessed 23 January 2019]

Innovative Architects (2019) The Seven Phases of the System-Development Life Cycle [online]. Available from https://www.innovativearchitects.com/KnowledgeCenter/basic-IT-systems/system-development-life-cycle.aspx [accessed 23 January 2019]

Karim, A.J. (2011) The Significance Of Management Information Systems For Enhancing Strategic And Tactical Planning. Journal of Information Systems and Technology Management, 8(2), 459-470.

Langer, A.M. (2016) Guide to Software Development: Designing and Managing the Life Cycle 2nd ed. Germany: Springer.

Mamary, Y.H.A., Shamsuddin, A., and Aziati, N. (2014) The Role of Different Types of Information Systems In Business Organizations. A Review, International Journal of Research, 1(7), 333-339.

Merna, T., and Al-Thani, F.A. (2011) Corporate Risk Management 2nd ed. U.K: John Wiley & Sons.

Optus (2019a) VISION AND MISSION [online]. Available from https://www.optus.in/vision-mission [accessed 23 January 2019]

Optus (2019b) About Optus' Privacy Policy [online]. Available from https://www.optus.com.au/shop/support/answer/about-optus-privacy-policy?requestType=NormalRequest&id=1683&typeId=5 [accessed 23 January 2019]

Optus (2019c) About us [online]. Available from https://www.optus.com.au/about [accessed 23 January 2019]

Optus (2019d) Competitive Advantage with Cloud [online]. Available from https://www.optus.com.au/opfiles/Wholesale/Assets/Brochures/optus-cloud-ucx-competitive-advantage-with-cloud.pdf [accessed 23 January 2019]

Prosci (2019) Change Management Process [online]. Available from https://www.prosci.com/resources/articles/change-management-process [accessed 23 January 2019]

Rouse, M. (2018) IS (inform ation system or information services) [online]. Available from https://whatis.techtarget.com/definition/IS-information-system-or-information-services [accessed 23 January 2019]

Rouse, M. (2019) change management [online]. Available from https://searchcio.techtarget.com/definition/change-management [accessed 23 January 2019]

Sarsby, A. (2016) SWOT Analysis 1st ed. U.S: Lulu.com.

Seidel, M. (2018) Role of Information Systems in an Organization [online]. Available from https://bizfluent.com/about-6525978-role-information-systems-organization.html [accessed 23 January 2019]

Singh, S.K. (2011) Database Systems: Concepts, Design and Applications 2nd ed. India: Pearson Education.

Smart Sheet (2019) Demystifying the 5 Phases of Project Management [online]. Available from https://www.smartsheet.com/blog/demystifying-5-phases-project-management [accessed 23 January 2019]

Wang, S., and Wang, H. (2012) Information Systems Analysis and Design 1st ed. U.S: Universal-Publishers.

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