The Role of Systems to Support Business Processes - Essay Example

? Atokowa Advantage Table of Contents Executive Summary…………………………………………………..2 Introduction…………………………………………………………...2 Input Process Output Model…………………………………………..3 4V’s Typology………………………………………………………...4 Business Process Mapping…………………………………………….6 Decision Making Hierarchy……………………………………………7 Systems Levels…………………………………………………………8 The Role of Systems to Support Business Processes…………………..8 Pareto Analysis………………………………………………………….9 Soft Systems Methodology Rich Picture Building…………………………………………..10 CATWOE Analysis……………………………………………..11 Recommendations……………………………………………………….13 Conclusion……………………………………………………………….13 References………………………………………………………………..15 Atokowa Advantage Executive Summary Most companies change with times in order to serve the needs of the given time, and so that they can keep up with the increasing competitions. Like other companies, Atokowa Advantage has taken this trend in order to ensure that it is equipped enough to compete in the constantly changing market. The company’s use of electronic point of sale system (EPOS) and the Atokowa Stock Information system (ASIS), an access database application by Microsoft, propelled the company to higher heights as far as stock management is concerned. Local area networks, third party logistics, electronic data interchange, amongst other systems aid in the efficacy of the processes. Problems such as supply decision-making by the managers, the incorporation of the brand into the furniture product line due to the poor quality of the products, the weaknesses in ASIS as it is good for stores monitoring but poor for purchasing, the incorporation of other forms of making sales such as online selling are quite evident in this company. The company must ensure that it upgrades the existing systems or incorporate new ones, enhance communication flow and cohesion in the managerial department. Introducing other forms of technology and strategies are also encouraged as it will make the organization to convey effectiveness and efficiency in its works It will also experience the targeted rewards. Introduction Companies started in the twentieth century or earlier have continued to introduce new technology into their business systems in order to enhance many aspects of the business. Unfortunately, more often than not, constant upgrading, adjustment or total replacement of these systems is constantly necessary due the growth of the business, the changes in other systems, the changes in the market in general and other reasons that lead to such actions (Stevenson, 2009;12). Although the enhancing technology is not the only priority so as to ascertain that the industry runs smoothly, it is an area that may make business loose millions of dollars if it is not properly addressed. Other areas such as the managerial effectiveness and efficiency, as far as decision-making and strategy implementation is concerned, business mapping, soft system methodology, pareto analysis and other factors are essential in order to make sure that the operation-management is of effect as intended. Like in other major organizations Atokowa Advantage has managed to effectively control some business areas. Similarly, it has trouble taking care of other areas that are mostly technology based and hierarchical based. Fortunately, most of the troubles can be dealt with by incorporating the right systems or by implementing the right strategies. Input-Process Output Models The company needs a more complex business system than it already has in order to handle the level of activity level it executes in a given time. The purchases, the supplies and storage of the inventory need to be taken care effectively (Ibeas, De La Sen & Alonso-Quesada, 2004;480). The ASIS system has proved to be effective as far as inventory accountability is concerned. However, it has evident weaknesses in controlling the purchase activity level. The information input comprises of depicting the companies that act as Atokowa’s suppliers. The main suppliers are from China and Hong Kong. The logistics of the Atokowa comprises of the inventory retrieved from the suppliers. They include the furniture, branded computers and other office equipment, printing materials amongst other supplies that are sold by the company. Although the company sells stationery and office supplies, it first started as a customized printing company. It still does the customized printing as it sells the other products. Vendors are tracked by invoices and sales are also recorded in this same way. However, due to the introduction of technology, the company uses computer systems in updating the sales. Pries are determined by calculating the cost of good per unit with the addition of twenty five percent and another addition of goods and service tax. The company has incorporated ASIS in dealing with the storage of the supplies. Although the current warehouses are capable of handling the inventory, the storage space in the warehouses is slowly decreasing as the purchases increase. Additionally, the decrease in the storage space is being caused by the inventory that is either not sold due to their high prices or is out-dated. For example, the expensive leather chairs bought by Lauren contribute to this problem. Since this is not a production or a manufacturing company, the company sells the same products it purchases. It mostly sells to other organizations and to individuals. Although the company has integrated other distributors between it and the customers, it mostly sells the products to organizations and the consumers directly. The company returns any rejects to the suppliers. If they are unaccepted, they are recorded as losses and the contract between the company and supplies is terminated as it happened with the furniture suppliers. 4V’s Typology The company has a number of retail outlets in some main cities in Australia. These include Adelaide, Brisbane, Canberra, Melbourne, Newcastle, Newcastle, Perth and Sydney. From 2008 to 2011 each of these outlets made annual sales between Aus. $ 942,225 (Canberra) to $ 10,952,480 (Sydney). The volume of sales increased progressively within these years. Since the cost of per unit is based on the actual cost of purchasing the product from the suppliers, an increased number of sales made that the company is forced to purchase more inventory. Bulk purchases attract discounts. For many years, the company determined prices by adding the goods service tax, and twenty five percent onto the cost per unit. When the managers decided that the managers could determine the prices of the various products through depending on the region, some retail outlets experienced sales volume increase. Atokowa’s level of flexibility is high (Cachon & Terwiesch, 2009;35). The company has a variety of products serving the various needs of office activities. The founder of the company, Mr. Lachlan Atokowa, wanted the retail outlets to serve as a ‘one stop’ outlet for the various requirements in an office. The variety of products not only enables people to serve as a wide variety of customers, but it also enables the company to target a wider range of consumers as compared to the other companies dealing with similar products. The variation in demand is quite evident. The cheaper products are demand more than the expensive products. As noted y Anton, expensive leather chairs are les in demand as compared to the other cheaper furniture. Unfortunately, the managerial department does not note this. Anton complains that the company still overstocks obsolete products and items that hardly sell. The organization’s visibility has been laid out. Although there are a number of weaknesses in some areas, the organization has proved to be strong in other areas. The customers are encouraged to give feedback to the company concerning their experiences with the organization. While the company seems to experience weaknesses with the customers’ waiting time (67 complaints), goods processing (30 complaints), invoice accuracy (30 complaints) and late delivery (18 complaints), the customers seem satisfied with the accuracy in goods delivery (8 complaints), courteous assistants (7 complaints), product knowledge by the assistants (3 complaints) and convenient prices (3 complaints). Business Process Mapping In this organization the process identification is customer centric. The purchasing of products from Hong Kong and China, the shipping, which may is done in full or partly full containers, the storage into the warehouses, the distribution to the various outlets and selling of the products via distributors or directly, are processes done to ensure that the customer is served in the most effective and efficient way possible. Through the process identification, one is able to identify the weaknesses in the supplies purchasing system, warehousing, lack of a system for the finance team, ASIS operating issues and the differences in the methods used to come up with the prices of the various products (Heizer & Render, 2001;26). Like in any other company, the main objective of the company is to maximize its sales, to satisfy the customers and to guarantee that the business is growing. Risk identification and identifying the key controls in the specific processes have been categorized in the information gathering. Various professionals have been put in charge of diverse processes in order to ensure the smooth flow of the processes. EPOS is put in place to ensure that stock monitoring is taking place through the bar code tracking. Paul Fairclough who had managed the Melbourne outlet for some time was brought to the headquarters to manage the ASIS system, since he had proved that he was competent enough. Lillian Newnham is in charge of shipping due to her qualifications and her experience. Such professionals are put in position in order to play down such risks as legal inherent risks due to mistakes in the shipping process, extra costs due to poor system management amongst other risks. The consultation process takes place among the managers. However, the company’s C.E.O, makes the majority of the decisions. The organization uses the managers in the various branches to make enquiries that concern other employees or customers. The managers are also at liberty of implementing the strategies that are made optional. For example, there are managers who have embraced the new pricing strategy while others have stayed with the old strategy of pricing. The professionals, such as IT experts are consulted when implementing system software. The implementation of technology has been the most effective as far as making processes to run more efficiently and effectively is concerned (Jacobs et al. 2009;36). Such systems as the ones used to come up with the payrolls, monitor the stock and perform other tasks have been developed to make the processes more efficient and easier. Additionally, work designation, resources such as the transportation vans given to every outlet and other facilities have contributed to the increase of sales and the general growth of the business. The Decision-Making hierarchy The decision-making process is limited to the C.E.O and the other four board members. The C.E.O., Mr. Jonathan Atokowa, has been significant is such decisions as moving managers from one area to another, implementation of strategies amongst other activities. Paul Fairclough, Ranjeev Patel, Hayley Atokowa and Graham Newcourt are the other important members important to the decision-making process. Unfortunately, there seems to be a broken communication flow among the top managers. There is also poor communication between the top managers and the other managers. Anton is afraid of airing his views about the overstocking of the some items that are obsolete and not well selling as he feels that he will be complaining about his colleague Lauren to Ranjeev. Ranjeev is not free enough to share his view with Jonathan Atokowa about the online sales yet they unknowingly share similar views. Similarly, Atokowa only shares his views with his wife instead of sharing them with the rest of the managers or the board members. This weakness in the flow of communication retards the business growth (Schroeder et al. 2011; 65). Systems Levels The incorporation of technology, hierarchical mode of leadership, and other implementations are meant to work with the aim of making the company successful (Klemljak, 201; 232). EPOS with the integration of the local area network, the electronic data interchange, the third party logistics, ASIS, and the payroll system are the technology-run systems in this company. Although each of the system carries out a particular activity, ASIS carries out most of the stock control and the purchasing activities. However, it is not effective in all these activities. The role of Systems to Support Business Processes The main advantages of the systems are that they make the business processes to be more effective and they enhance efficacy (Nurcan et al., 2005; 635). Systems also allow the company to gauge the pleasure of the clientele. This is doe through asking for the customer through the various feedback systems. The stock control and monitoring has been made easier. Unfortunately the systems have not been of use in the management and monitoring of purchases. Employee satisfaction through the timely salary payment has been made possible by the payroll system incorporated into the business processes. Pareto Analysis The main problems in the company include monitoring and control of supplies and purchases, communication problems in the managerial level, lack of a system for the finance team, the diversity in the calculation of prices and the lack of the integrating the online purchase and sale system as a way of making more sales as it reaches a more customers. Other problems include the incorporation of the failing to embrace the latest technologies. The root course of the majority of these problems is poor or no communication and overloaded systems. ASIS has proved to be of immense implication as far as stock control and monitoring is concerned. However, the monitoring of supplies and purchases is not as efficient when using this system. This means that the system can only carry out the functions that it is effectively carrying out. The other functions overload it or it was not effectively built to carry out the latter functions. The managerial unit either delays in implementing the other systems or proper communication has never taken place regarding the problems in the finance area and the calculation of the prices. Similarly, the managerial department has never addressed the communication problem in the managerial unit. Additionally, it might also not be conscious of the predicament. The leaders might mistake this as a sign of respect for the prevailing authority or a concern for the other employees as Antony sees it. # Problem Cause Score 1 Purchases and supplies monitoring problem An ineffective ASIS 15 2 Communication problem in the managerial level Unaddressed communication techniques and strategies 12 3 Lack of a system for the finance team Lack of implementing all the available forms of technology in the departments 10 4 Efficiency in serving customers Slow systems, lack of employee training 10 5 Lack of knowledge in customer account processing Lack of training nd ignorance on the employee’s side. It may be due to lack of seriousness 8 6 Incorrect invoices Poor systems or employees’ mistakes when entering the data 5 Total 60 Soft System Methodology Rich picture building CATWOE Analysis The clients or the customers are business owners since they are the most in need of office facilities. However, people in the non-profit making organizations, individuals needing office facilities in their own homes amongst other people also make a good fraction of the customer base. The customers have the need to acquire a place that they can stop and be able to have all their office needs met at just prices without compromising the quality of the products. The customers also want efficiency and effectiveness in the delivery o their goods and good customer service. The customers have a positive reaction towards the independency evident in our stores, the fair prices and knowledge of the employees towards the products. However, they want improvement in customer courtesy, customer’s account operations, efficiency in serving them and accuracy in invoice delivery. The organization and customers will both benefit if the right adjustments are made. The main actors are the managers, the employees and the other professionals who will be engaged such as the IT specialists/experts (Troutt Ehie & Brandyberry, 2007; 370). Each actor has a significant role to play. If any of the actors fail to play his/her role, the changes will not be successful. The inputs of the organization are the outputs since this is not a production company. However, there is a slight different when dealing with customized printing. Customers receive customized printing services therefore printing materials act as the input while the finished printed product becomes the output. The inputs are retrieved from china and Hong Kong while the outputs are sold to other businesses and to individual customers. The transformation needed is that ways of making the shipping process easier need to be experimented. Systems that monitor the shipping process need to be introduced so that it is does not become as assignment meant for one person. The company has the intention of reaching other areas apart from the mentioned area. It plans to become a multi-national company as compared to being a national organization. Integrating competent systems is the main problem at hand. When the right systems are integrated, the purchasing and supply processes amongst other business processes will become easier to run as compared to the current situation. The main decision makers are the board members with the incorporation of the C.E.O. If they make use of the IT specialists in applying the right systems software, running the business will become easier. Expanding the business to other regions constitutes the main environmental constraints. Geographical barriers, barriers of trade and settling in the comfort zone of the Australian environment is another challenge. Recommendations As far as systems are concerned, the best option is to improve/upgrade ASIS since the company is already used to it. Alternatively, a different system can be developed to tackle the purchases and supplies so that ASIS is only left with the controlling of the stock. This will ensure that the tasks are differentiated. Although this costly, it will be a long-term solution. Communication problem between the managers should solved. This can be done by having communication workshops, training and team building activities so that the managers become acquainted with each other on another level. Employees should be given ample training and orientation when need be. All employees should be courteous, they should be aware of operating the customers’ accounts and they should also be aware of all the products. Other systems should be upgraded in order to facilitate efficiency and accuracy. The customer is one of the most important members in any business. Satisfying the customer should be the foremost priority. Conclusion Atokowa Advantage is a big business and it has the advantage of expanding further to other areas in the globe. Poor systems, poor communication among the managers and poor customer service will work towards the downfall of the business. Competitors strive by taking advantage of each others weaknesses. Although it has an advantage on pricing, poor systems thus slowed business processes and customer service will make the customers to look for other better alternatives. Since the business is growing at a consistent rate, the system change needs to be done as fast as probable so that there are no troubles experienced when the business grows to reach other global markets. References CACHON, G., & TERWIESCH, C. (2009). Matching supply with demand: an introduction to operations management. Boston, McGraw-Hill/Irwin. HE, X., & KHOUJA, M. (2011). Pareto analysis of supply chain contracts under satisficing objectives. European Journal of Operational Research. 214, 53-66. HEIZER, J. 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