ITC508 Object Modelling

This company has a requirement for a new information system which will work together to support their day to day operation of airline system. New information system must include:
Flight reservation system
Travel service reservation system
Human resource management system
Accounting and finance system
Sale and marketing system. 

 

However, regular customer have special profiles where they can get advantage of special discounts and other benefits as royal member. 

Technological advancements have increasingly contributed to a change in business operations across the globe. These advancements have led to a shift in business competition. Today, the might and power of business corporations across the world is measured by how much the business has invested in its technology. As a result, various businesses have put in place information management systems to help them operate effectively and compete favourably. Some of the business information systems put in place by various companies include; business transaction processing systems, customer relationship management systems, business intelligence systems as well as knowledge management systems.

In order for any company to obtain maximum benefit from its information systems, it’s essential that such a company exploits all its capacities and implement measures that will help the company to increase the effectiveness of its information system (Cenfetelli & Bassellier, 2009). The company can do this by adding more data to the information system to increase the system’s efficiency and accuracy and in some cases the company can exploit the information and use it in new ways. Business information systems help a business in various fields such as communication, business operations, business decision making as well as in keeping and retrieving business records.

XYZ is an upcoming company whose aim is to offer a wide range of services such as freight transport, airline operations, loyalty programs as well as production of food. To ensure efficiency in its operations, the company intends to use various business information systems. This is a report of a case study conducted at the XYZ Company to establish the effectiveness of business information systems to the running and success of the company. This report offers an analysis of the functionality, the required resources, feasibility of the business information system project as well as proposes recommendations based on the analysis of the research conducted at the company.

Analysis of the Business Information systems’ functionality

For effective operations and delivery of services, the company intends to use business information systems such as;

• Flight reservation system
• Travel service reservation system
• Human resource management system
• Accounting and finance system  
• Sale and marketing system.

Transaction Processing System

XYZ company intends to use transaction processing systems in its operations. These systems include the flight reservation system and the travel service reservation system. For instance, to manage its vast transactions, the company aims to put in place a transaction processing system. This system helps the company in data collection, data storage, data processing as well as help the company to output its core functions effectively for it to improve its core operations (Curtis & Cobham, 2008). For instance, the company has embraced a flight reservation system that enables both its ordinary as well as regular customers to book for services such as air travel online without necessarily having to travel to the office. This will reduce congestion at the company offices, improve service delivery and save the company customers’ time. Similarly, use of the travel service reservation system will allow the customers to access non-flight facilities such as booking hotel accommodation, rent cars as well as access leisure packages online. (de Guinea, et al. 2007).

The Customer Relationship Management System

  To assist the company establish positive customer relations for the success of the business, the company aims to embrace a customer relationship management system such as a sales and marketing system. This system helps the business in the synchronization of the sales made as well as in the implementation and management of the business marketing strategies (Chen, et al. 2010).

Through a customer relationship management system, the company will be able to make an accumulation as well as keep track of the activities of its customers; key among them the purchasing trends of the customers, the existing defects in its products and track the inquiries from its customers and offer instant feedback. This system helps not only to improve customer relations but also to enhance the relationship within and without the organization (Galliers & Leidner, 2014). Under this system, the company will ensure that information systems are put in place that easily informs the customer of the goods and services on offer as well as the prices of the available goods and services at the company. To effect this, systems such as Price Subsystem and Sales Forecasting systems have to be put in place. For instance, commodity price decisions are supported by DSSs as well as data bases containing industry prices.

Business Intelligence System

To analyse the business financial data, the transport line aims to develop business Intelligence System such as Accounting and Financial system. This system helps the company to make an extraction of data and make an analysis of the data obtained. Such analysis helps the company to make a prediction of future patterns in the sales of its products. Similarly, data prediction and analysis helps the company in making a summary of its current costs which eventually enable the company forecast the company’s revenue from the sales made (Herath & Rao, 2009).

Human Resource Management System

 The XYZ Company in an attempt to ensure efficient employee management, the company intends to embrace the Human Resource Management systems. This system is aimed at fostering employee relations and boosting their performance. For instance, the system will enhance employee recruitment and training. This information system serves various purposes such as administration of company benefits to the employees of the company. For efficient employee management the company will use human resource systems such as employee payroll systems.

The Human Resource Management systems will also enable the company conduct and review the performance analysis of its employees. Through training, knowledge held by employees will be shared across the company. Knowledge sharing helps the company advance innovation, record improvements in its performance, advance its employee integration as well as to expand the knowledge and retain it within the organization for use whenever need arises (Petter, et al. 2008). The knowledge management system also enables the company learn the skills possessed by its employees. This helps the company to know where to place each employee so that they can perform effectively as well as identify the skills that the company can teach to the employees. Moreover, identification of the skills of employees helps the company in promoting the employees.

Effectiveness of the management system

 Business management systems will greatly improve the operations at the XYZ Company and increase the company returns. Among the areas the company should make advancements using business information systems include;

 Communication

The business information systems will make it easy to gather and disseminate information at the company. The management will be able to easily communicate with the junior employees and with the customers without necessarily having to move from their offices. For instance, managers will use emails which are quick and effective to send and receive information (Laudon, et al. 2011). The systems will also enable storage of documents in folders which allows for easy sharing of the same information among employees enabling employees to collaborate in a systematic manner.

Operations

Information system will ease the operations at the company. The system allows for passage of the most recent information. This will increase the efficiency of operations at the company. Through the use of information systems, the company will be able to gain a competitive advantage over its competitors since it has a cost advantage and is able to offer better customer service (Belanger & Crossler, 2011). For instance, through the sales data obtained and kept by the company, they are able to get insights on customer demands. This enable the company to tailor its goods and services in a manner that best suits the current demands of its customers.

Decisions

Information systems will enable the company to make better decisions through the delivery of all the required information to the customers. The company will also be able to model the results of the decisions made to match the specifications and needs of the customer (Cenfetelli & Bassellier, 2009). The company ensures that it delivers accurate information at all times. This is because they are able to refer to the information stored in soft copy which is always up-to –date hence are able to make decisions with confidence (Laudon, et al. 2011). The systems also offer alternative solutions for the company to choose from. Furthermore, the information systems allow for calculation of key marketing indicators like the sales made by the company over a given period, the costs incurred within a specific period as well as the profits or losses incurred by the company. Such analyses enable the company to come up with the best alternatives to address challenges for the benefit of the transport line.

Records

Through the information systems, the company is able to keep and retrieve its essential records. The records retrieved are used in the financial analysis as well as in the regulatory of the company operations such as problem analysis and implementation of solutions. Through the information systems, the company is able to safely store crucial documents  as well as revision histories, records of communications made among other important operational data (Belanger & Crossler, 2011). The company organizes data and uses the information systems in processing and presentation of the information as historical data. Using the stored information, the company is able to design cost estimates as well as conduct an analysis to establish the effects of the decisions made on company indicators.

Conclusion

Business Information System is the secret which every business in need of success must discover. Through the systems, the business is able to operate smoothly and to save of unnecessary expenses and losses that would otherwise have been accrued. The system allows the management to analyse how the business is operating and make alterations to put the business on line. As a result, the business is able to compete favourably in the world of technology.

Recommendations

The Business Information Systems put in place by XYZ company are good and likely to ensure that the company grows. Nonetheless, studies at the company observed adjustments that if made will make the company even greater. Thay include;

• The company should embrace some of the most recent information systems such as the use of Mobile Aps to make its operations more efficient

References

Bélanger, F., & Crossler, R. E. (2011). Privacy in the digital age: a review of information privacy research in information systems. MIS quarterly, 35(4), 1017-1042.

Bocij, P., Greasley, A., & Hickie, S. (2008). Business information systems: Technology, development and management. Pearson education.

Cenfetelli, R. T., & Bassellier, G. (2009). Interpretation of formative measurement in information systems research. Mis Quarterly, 689-707.

Chen, D. Q., Mocker, M., Preston, D. S., & Teubner, A. (2010). Information systems strategy: reconceptualization, measurement, and implications. MIS quarterly, 34(2), 233-259.

Curtis, G., & Cobham, D. (2008). Business information systems: Analysis, design and practice. Pearson Education.

de Guinea, A. O., Kelley, H., & Hunter, M. G. (2007). Information Systems Effectiveness in Small Businesses: Extending. Strategic Use of Information Technology for Global Organizations, 245.

Galliers, R. D., & Leidner, D. E. (2014). Strategic information management: challenges and strategies in managing information systems. Routledge.

Herath, T., & Rao, H. R. (2009). Encouraging information security behaviors in organizations: Role of penalties, pressures and perceived effectiveness. Decision Support Systems, 47(2), 154-165.

Laudon, K. C., Laudon, J. P., & Brabston, M. E. (2011). Management information systems (Vol. 8). Upper Saddle River, NJ: Prentice Hall.

Petter, S., DeLone, W., & McLean, E. (2008). Measuring information systems success: models, dimensions, measures, and interrelationships. European journal of information systems, 17(3), 236-263.