ISY81001 Designing Information Systems Assignment Sample

• Subject Code : ISY81001
• University : Southern Cross University My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Information Systems Management

Activity 1

Summary of 100% Organic Co.

The 100% Organic Co. is a farm-to-consumer organic food company. It sells products such as vegetables, fruits, nuts, and eggs that are grown with principles of permaculture and biodynamic soils. It is owned by John and Ardell. It was started in the backyard but was upscaled when the demand for the products increased. The company’s production model and expertise have led to the development of proficient production and a growing consumer base. The company has been facing problems in managing the increasing demand for its production, resource management, delivery, and customer relations protocols occasioned by the fact that the company is still managed as a small personal entity despite growth into a business with a large consumer base. The production side is managed by the husband, Joe, while the rest of the corporate affairs are under the purview of the wife. There is poor role definition with employees crisscrossing between production and sales. The company has the potential to expand their product range but is restricted by logistical and administrative challenges.

Organization Chart for Business

Research Area

The information system that is required will address the various business function of the company due to the fact that the entire company requires information management upgrades. The issues identified all stem from efficiency problems that hamper company growth. The most prevalent issue that has been noted in this assessment is that the company has issues in managing their customers. First, the information system will be crucial for the collection and management of customer information. This is crucial for companies that are dependent, for the large part, on the same market for their products. The system will also be a vital tool in managing orders. The process of phoning-in orders is cumbersome and dependent on a single person to effect making it susceptible to failure. Communication with clients is also important as the company must provide up-to-date information on available products that must be continually updated. The need to expand the market will require that the information system contain a marketing component to reach target markets. The system will inculcate a communication system that should maintain the same personal touch that has endeared clients to the company.

The system must also address the production challenges faced by the company. Given that documentation on all the products must be available for scrutiny at all times, the systems should facilitate adequate collection of data. It must also retain information on the production techniques while providing predictable volume and quality updates to the management of the company. This is crucial in determining the availability of certain products. The system will facilitate the standardization of production protocols to allow for uniformity as the company seeks to expand its cooperation with neighboring farmers.

The complexity in compiling accounts for such an operation requires that records are standardized. The different modes of payment used must be translated into financial information to aid in accounting. This system must also evolve to handle the increasing payment methods for orders within the system. it should enable clients to process electronic payments and orders to ease delivery. The system must purposefully be designed to streamline the logistical functions. Delivery of orders should be made with optimal efficiency and expediency to satisfy demand and reduce transportation costs. This logistical records will be crucial in regulating the traffic to the company shop to streamline its functioning. Additionally, the information system should include a framework for personnel management. This is to prevent the duplication of tasks and poor role assignments. It will also allow Joe to focus on production.

Activity 2

Functions of The Information System

The functions of the information system can be divided into five categories. The first category is production management. Under this, the system must collect and provide information on the volume and availability, the input levels and types, the production costs, and be available to provide documentation concerning each of the products. This system should allow the clients, retailers, and industry regulators to access information that supports the 100% organic farming model for the company.

The second function is the customer service management. The information system should handle the collection and cataloging of client information. It should also provide customers with an avenue to make orders and track them to ensure delivery and pick up are streamlines. They should also be able to access information about the company product catalog at all times. It should provide automated services for repeat customers. It should also provide communication channels with customers to maintain the personal nature of the business and allow for marketing and quality surveys to be carried out.

The third function to be met is human resource management. The system must provide specific roles for each member of the company. It must also provide a facility for tracking and reporting the performance of the same. The goal is to ensure that simple tasks such as order taking and compilation are automated.

The fourth function is accounting. The services and products that are received in-kind by the company must be translated into financial information using standardized systems. It should also enable the customers to pay for orders using different payment models such as cash, credit, and online payment in a fast and reliable way.

The fifth function of the system is as an information repository. In consultation with Joe, the production methods and implements should be documented to enable other members of the company to carry out functions without close supervision. The information should be transferable to partners as desired to duplicate functions in several locations.

The sixth function of the system is logistics management. This system must be capable of tracking and documenting pick-ups and deliveries of both inputs and products. It must allow clients to now the delivery dates for products and therefore plan accordingly. The aim is to reduce backlogs and misplaced orders while saving money due to efficiency.

System Vision Document

1. Introduction

1.1 Purpose

The purpose of this project is to increase the efficiency in the business functioning of 100% organic Co by developing a comprehensive information system.

1.2 Scope

The project will cover all aspects of the company including production, human resource, administration, and customer service.

1.3 Overview

The documents will:

1. Identify problems

2. Propose a solution

3. Identify constraints to actualizing the solution

4. Identify risks to actualizing the solution.

5. Identify stakeholders and team members.

2. Positioning

2.1 Opportunity

The 100% Organic company is one that has entered a fast-growing segment. There is potential to increase the production and market for its vegetables, diversify into fruits, and increase the market exponentially as consumers seek more organically-grown food products.

2.2 Problem statement

The company has problems evolving from a family project to a corporate entity. Despite the increase in production volumes ad market, the company still faces the challenge of streamlining its operations to include faster order taking, information management, human resource management, logistical efficiency, and electronic order and pay systems. This has led to dependence on one individual to carry out production and order taking functions, vague role definitions for employees, and backlog at the company shop. This problem affects the company management and the consumers of their products by stifling growth and inconveniencing consumers respectively. A successful solution should allow the company to diversify, and grow while easing communication between the company and its consumers.

2.3 Product Position Statement

For the target consumer who requires efficiency in company operations, this information system is an administrative tool that increases the efficiency of production and service delivery. Unlike the present system, the information system takes advantage of all the available resources to increase production and communication.

3. Product Features

3.1 Ability to collect, analyze and display information

The system should collect information on inputs and procedures to support the idea of organic production. It should collect consumer information to facilitate tracking, payment, and order management.

3.2 Ability to provide communication channels between consumers and the company

It should allow for communication on order tracking, available products, and customer relations surveys.

3.3 Ability to manage logistics

It should provide information on ready orders, delivery, and pickup times as well as streamline the logistical operation of delivery by selecting optimal routes and dates.

3.4 Ability to manage human resources

The systems should track and manage the specific roles of the employees and management.

3.5 Availability of a marketing function

The system should allow the broadcasting of targeted marketing information and provide research data on current and future market characteristics.

4. Constraints

4.1 Time

The system should be designed and implemented with a framework of 12 weeks and this is insufficient for understanding all the needs and providing solutions.

4.2 Resources

Financial resources are limited thus dictating the overall design of the company’s information management systems.

4.3 Expertise

The end-users of the system may have a varied level of tech-savvy and may require training. In the case of system maintenance, there may be a need to employ or outsource for a professional.

5. Risks

5.1 Friction

Small companies transitioning into corporate status may face friction in changing long-standing relationships and communication dynamics between the employees, management, and customers as they believe it works.

5.2 Delays

There are external factors that may cause differences between expected and actual outcomes in deliveries and product availability. The system must be able to address these risks. This will affect the research into the system and the development of the system. further, this would increase the project cost by altering labor costs considerably.

5.3 Budgeting shortfalls

The expense of the system development and implementation process may outstrip the budget allocated for the project. Any changes in the revenue of the company may lead to management seeking to cut back on investments.

5.4 Lack of software development support and maintenance capacity

The system may cause difficulty for consumers and employees to adopt and use due to technical issues such as accessibility and ease of use.

6. Stakeholder descriptions

6.1 Management: This stakeholder notes the need for:

1. Increased information collection and processing

2. Proper accounting

3. Logistical management

4. Communication with clients

5. Order and delivery management

6.2 Customers: This stakeholder notes the need for

1. Up-to-date information on products

2. Order tracking

3. Easier payment modes

6.3 Employees: This stakeholder notes the need for

1. Proper role assignment

2. Efficiency in role fulfillment

6.4 Potential Fruit Farmers

This stakeholder requires information on the production process and the benefits of the organic farming process.

7. Project Team Members

The project will include all the stakeholders mentioned above. It will also include a software developer and a marketing team.

Activity 3

Task Time Table

Overall project duration is 16 days

Activity 4

Risks Associated with The Project and Probabilities

Definition of Anticipated Benefits

1. The establishment of an information system will increase efficiency in the delivery of inputs and products to and from the farm. Reduction in ordering time, the increased tracking capability will facilitate efficient product delivery.

2. The automated ordering system will reduce the time required to take down orders by phone and translate them into customer packages. This freed up time will be used to carry out other functions that cannot be automated.

3. Efficiency in human resource management in terms of role assignment and reduction of the workload will reduce the number of employees required. This will result in cheaper labor costs and allow for employing experts such as information systems managers.

4. The communication between the client and the company will increase the company visibility and volume of sales. This will translate into financial gain and market size increases.

5. Efficient logistics will allow for faster delivery and reduce traffic at the company shop. This will increase the speed of delivery allowing for the processing of more orders, therefore increasing the company revenue.

The expected cost of the new system

The cost of development of the new system including software and hardware as well as the expertise for development and installation must be accounted for. This cost should also include the cost of training the customers and company staff in the use of the same.

Cost-Benefit Analysis

Benefits

1. Increased revenue

2. Lower labor costs

3. Increased customer base

4. Faster delivery, therefore, cheaper logistics

5. Ease of expansion of production

6. Ease of accounting and financial management

7. Increased communication with consumers and partners

Costs

1. Cost of research

2. Cost of development and installation of the system

3. Cost of training personnel

4. Cost of maintenance

Revenue in 2 years without system = $3,400,000

Revenue in 2 years with system = $4,100,000

Cost of maintaining system= $15,000

Savings on logistics= $30,000

Savings on labor cost = $25, 000

Net revenue= $4,140,000

CB=4140000/3400000 = 1.21

Proceed with the project

Assumptions and Interpretations

1. The success of the system is linked to the circumstances within the product market. Consumer characteristics are held constant.

2. The upscaling of operations assumes that the market is not saturated.

3. Despite most of the current consumers being in a rural area, it is assumed that they have adequate access to information technology to utilize the company website.

4. The cost of labor and inputs will remain stable over time.

The Case for The Proposed System

For a company that is rapidly expanding, the project comes highly recommended as it streamlines the current process while creating room for expansion. The ability to handle more clients effectively will be beneficial to the company over time. Further, the repository of information will provide a tool for critical analysis by partners, consumers, and regulators that will guarantee the quality of the products form 100% organic co. compared to these benefits, the cost of the project is minimal and it takes less to maintain the system over time than the gains anticipated from its inception.

Increasing efficiency on the production side will enable the company to recruit hesitant farmers by providing information and evidence of gains. This will also allow the company to reduce the time wasted making adjustments and inquiries into the provenance of input. Further, reduction of dependency on Joe to handle the farm management plans will allow senior management to focus on the bigger picture of expanding their operations.

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