ACME Mexico City Information Systems Management Plan - Case Study Example

? ACME Mexico (AMC) Information Systems Management Plan By 5. Alternatives and Analyses All the stores systems of ACME Home Improvement value information technology. Information technology in the stores helps to achieve efficiency in the stores’ operations at different levels, including the human resources, financial, and data warehousing, among others (Acme Home Improvement (2013). In the information system management planning for the new ACME Mexico City store, the utilization of information technology remains paramount to the store. For instance, the utilization of computer and mobile devices will remain in place. However, consideration will be given to other different alternatives in management information systems, which can help boost efficiency and effectiveness of the store’s level of management information systems. This has several advantages to the store. Most importantly will be the boost in the store’s efficiency and effectiveness of its core operations, which will in turn increase the competitiveness of the store. 5.1 Alternative A All ACME stores have an information system. However, each of the information systems for each store is suitable for the individual stores. This is after modification of the information systems in order to suit the specific store. Different factors influence the choice and nature of the information system in use by a store. These include the geographical location of the store, language of most customers, and finances, among others (Management Information Systems (1995). In the case of ACME Mexico City, when geography and language aspects are considered, it is noted that most customers are Mexicans, and these speak Spanish. Therefore, ACME Mexico City might choose to settle only on modifying the existing information system to the Mexicans, who speak Spanish. This way, communication in the store will be easier and more efficient. This is especially after considering the fact that most employees in the store are the locals, who speak Spanish. On the contrast, this kind of information system might be limiting to the non-Spanish speakers in the store. 5.2 Alternative B ACME Mexico City also has the option of designing its own new management information system. This new management information system will be unique and different from the initial management information system, which the different ACME stores have adopted and customized. The new management information system will therefore, be developed to be more efficient, effective, and modern than the initial management information system. For instance, the latest new computer and mobile devices will be purchased. These are more efficient but sophisticated. However, a totally new system will often cost more, as this will also require training of the staff on its usage (Baltzan, 2011). 5.3 Alternative C ACME Mexico City store might adopt the bid optimization tool in the design of its information system. This application will be highly advantageous to the store, as this might increase the opportunities of the store with suppliers and vendors, thus increasing the store’s competitiveness by giving it an edge over its competitors. The bid optimization tool has more strengths, which are paramount to the store. First, this is superior to the manual bidding, thus outperforms it. Secondly, this application has the ability of leveraging historical data and automatically updating bids based on different days and time, among other factors. This also saves time, as it is capable of analyzing data and making bid changes on a routine basis. This application can as well be customized to uphold simplicity, which will make it easier for all staff to use it, despite their varying levels of IT competence. However, the bid optimization tool will generate significant costs. 5.4 Alternative D ACME Mexico City store will have the consideration of adopting the new IBM and UNIX-based data warehousing. IBM’s data warehousing provides a unified and powerful access to both the structured and unstructured information within a short time. This will therefore, increase efficiency and effectiveness of the store, as IBM’s data warehousing is also manageable and helps in the control of large volumes of data (IBM, 2013). A new IBM and UNIX-based data warehousing increases the flexibility of the supply chain (Stetz, n.d). This will therefore, be advantageous to ACME Mexico City store. However, this will cost the store approximately $ 800 for each store manager. Although this is considerably costly, the adoption of this system will lead to great profits in the store, which will eventually compensate the cost (Ponniah, 2004). 6. Preferred Solution 6.1 Financial Considerations The capital cost of the entire IS project of ACME Mexico City encompasses different aspects and costs. These include the cost of setting up the system, the purchase of different hardware and software, the installation costs, initial upgrading, and documenting the various processes and procedures involved, among others (Bagad, 2009). Since ACME Mexico City is a new store with no financial assets, it is expected that the larger ACME will be responsible for the initial capital cost of the AMC IS project. Nonetheless, it is the role of the larger ACME to fund different projects, including the IS projects of its newer stores. ACME will obtain the finances for funding this IS project from the profits it has accumulated over the years. ACME will only be responsible for the cost of inception of the IS project of AMC. On the other hand, it is expected that AMC will be fully responsible for the cost of operating the already set up IS system. This is because, once the store becomes operational, it is expected to accumulate profits, part of which it can use to sustain itself, including maintenance of its IS system. Nonetheless, since the IS system that will be adopted by AMC store is expected to be highly effective and efficient, the probability of great profits for the store is high. Nonetheless, a plan will be put in place to ensure that ACME Mexico City store compensates ACME Home Improvement for the capital cost of its IS system. However, this will be done in phases. The commencement of compensation to ACME Home Improvement will be after the store gains stability in the market, and after it has accumulated considerable profits. Additionally, depending on the level of profitability and commencement of compensation, the compensation period will be established. This is important to ensure that ACME Home Improvement does not incur any loses or what might be considered as misappropriation of finances. The compensated amount might be used on other similar or different projects in future. 7. ISM 7.1 Introduction Information technology in a business and in a market is of great importance today. Apart from the physical buildings of a store, it is essential that a store embraces technology, which will ensure its effectiveness and efficiency (Loudon & Loudon, 2012). In the case of ACME Mexico City store, the IS project and its implementation will greatly aid the functions and operations of the store. Nonetheless, the adoption of information technology, and specifically an IS system is not only beneficial to ACME Mexico City but also to its customers, employees, and other stakeholders. Before the adoption of an IS system, ACME Mexico City has to put different factors into consideration. First, it is important for ACME Mexico City to decide whether it will adopt the existing IS system of ACME and customize it for suitability, or whether the store will adopt a new and totally different IS system. Another important consideration is whether the store will manage to recruit staff members that are highly knowledgeable in information technology and can, therefore operate the store’s IS system without major difficulties. 7.2 ISM Planning-Budget According to King (2009), a budget is necessary for the implementation of IS systems. This is therefore, also necessary in the case of ACME Mexico City. The budget provided is for ten weeks. This translates into about two and a half months. The first one month budget is meant for the implementation of the IS system. The ninth week is meant for testing the IS system, while the last week is for conducting any corrections on the fails noted in week nine. The provided budget highlights the major categories of hardware and software, staffing, training, personnel and contracts, system maintenance, and overhead. The total cost of the Information System Management Program for ACME Mexico City is estimated to be $ 200,000. As noted, the implementation time framework of the ISM project is eight weeks. There is an additional two weeks, which will be used to test and repair the ISM system, after repairs are confirmed during the first phase of implementation. During the second phase of implementation, hardware and software will be procured. This will take the second position of the budgetary allocation. Nonetheless, procurement of hardware and software is prioritized in order to maintain proper set-ups, security, and data mining software, among others. IN procuring and setting up hardware and software, an estimated period of four weeks will be used. The next phase after procuring and setting up hardware and software is the implementation of the personnel, staff, and contracts. These are important in order to accommodate the new ISM system. This process will cost slightly more than half of the budgetary allocation, which will cover the whole five years of the system. The next phase will involve the training of the employees on how to utilize the information system. This will cost slightly below 10% of the overall budget. However, the training of employees will be gradual and continuous, thus might extend into their work schedules. Nonetheless, the training is expected to take not more than 60 days. Category Purpose Type Amount Cost SUSE Linux Enterprise 11 interoperable computing needs HW/SW SUSE Linux Enterprise Desktop SW 3 $150 Server Virtualization SW Novell ZENworks Linux SW 0 $0 Software Deployment/management Management SW 2 $120 Licence:SUSE Linux Operating System Enterprise JeOS SW 2 $500 Desk Top Computers Department PCs HW 6 $3408 Desk Top Computers Manager PCs HW 6 $3408 Point of Sale Needs Cash registers HW 4 $20,000 Bar code scanner HW 4 $4,000 Microsoft Office Professional 2010 Licence SW 2 $0 Office Productivity Suite Licence:Openoffice.org SW 5 Free VoIP Telephones corporate communication HW 2 $1,400 Contracts Internet Service Provider Contract/Service Service (Annually) 1 $20,000 Licence: Microsoft Enterprise Resource Planning Dynamics SW 1 $0 Supply Chain Management Licence Licence: Microsoft SW 1 $0 Financial/ Accounting Management Dynamics GP SW 1 $0 E-Commerce Licence: K e-Commerce SW 5 $0 Training Initial Training Budget $20,000 Refresher & Upgrade Training (Annually) $40,000 Web Training $20,000 Maintenance Unexpected problems (Annually) $3,000 Annual maintenance (Annually) $8,000 Staffing Information Systems Manager employee – salaried (Annually) 1 $45,000 Information Systems Engineer employee – salaried (Annually) 1 $15,000 Consultant Service temp. setup staff 6 $30,000 Total Initial Year $233,986 Estimated 5 yr. cost $402,786 Key: HW = Hardware; SW = Software 8. Conclusion The use of information system by companies is an important factor, which boosts the overall performance and competitiveness of a company. Therefore, this is also important to ACME Mexico City. As a new store of the ACME Home Improvement, ACME Mexico City adopts an IS system, since this is one of the major business strategies of the larger ACME Home Improvement. The adoption and implementation of an ISM system by ACME Mexico City is beneficial to both the store, ACME Home Improvement, the employees, as well as the customers. For the customers, this increases efficiency, while employees experience an ease in communication, as well as efficiency in their operations and different processes in the store. This ISM plan is considerate of all the stakeholders and aims at satisfying the needs of them all. In addition, this plan shows the relationship between AMC and ACME Home Improvement. ACME Home Improvement is quite dedicated to the success of AMC, as this is a new store, which needs a considerably high support level. Nonetheless, after the ISM plan is implemented in ACME Mexico City, the different major stakeholders of the store will have the knowledge about various processes in the different departments of the store, which together make up AMC. The total budget of approximately $200,000 will financially cater for all the necessary aspects of the ISM plan. This includes the cost of hardware and software, personnel and contracts, training costs, maintenance, and miscellaneous, among others. Nonetheless, this ISM plan adheres to the strategy of ACME Home Improvement, and thus is an important project that will help AMC to realize great success in the market. References Acme Home Improvement (2013). Retrieved from http://www.acmehomepro.com/Contact_Us.html Management Information Systems (1995). Retrieved from http://www.occ.gov/publications/publications-by-type/comptrollers-handbook/mis.pdf Bagad, V.S. (2009). Management Information Systems. London: Technical Publications. Baltzan, P. (2011). Business driven information systems (3rd ed.). New York: McGraw-Hill Higher Education. Gonzales, M. (2003). IBM Data Warehousing: with IBM Business Intelligence Tools. New York: John Wiley & Sons. IBM (2013). Data Warehousing. Retrieved from http://www- 01.ibm.com/software/uk/data/warehousing/ King, R. W. (2009). Planning for Information Systems. London: M.E. Sharpe. Loudon, K. C. & Loudon, P. J. (2012). Management Information Systems: Managing the Digital Firm. New Jersey: Pearson Education, Limited. Ponniah, P. (2004).Data Warehousing Fundamentals: A Comprehensive Guide for IT Professionals. New York: John Wiley & Sons. Stetz, C. (n.d). A Data Warehouse Application under UNIX. Retrieved from http://www.lexjansen.com/nesug/nesug95/NESUG95080.pdf Read More