Managing Operations and Information Nowadays - Essay Example

?MANAGING OPERATIONS AND INFORMATION By Table of Contents Table of Contents 2 Executive Summary 3 Introduction 3 Discussion 4 Question Number 1: 4 Question Number 2: 6 Question Number 3: 8 Question Number 4: 9 Question Number 5: 11 References 12 Executive Summary At the present, information technology is playing an important role in all the fields of life. In the same way, it is modernizing the ways in which a company can perform business. This report has presented an overview of Zara case. This report has answered five different questions based on Zara case. This report has examined the options for Mark Lucas in terms of minimizing the costs to his business. Afterward, this report has discussed the ways that Mark Lucas can adopt in order to satisfy his customers. This report has also discussed the options of data marts and data warehouse. Data warehouse is decision support system that organizations use to build effective decisions. This report has also suggested the supplier relationship management techniques that Mark Lucas can adopt to improve his business performance. This report has also suggested that the sharing of information among business customers, suppliers and working staff would benefit the organization. Introduction This report will present the answers of five different questions. The answers of these questions will be based on Zara case. First answer comprises the discussion on business areas which can help Mark Lucas reduce the business expenditures. The next answer outlines the steps that Mark Lucas should take to maintain the quality of services. After that this report will discuss the role of data warehouse in a business. At the present, the majority of business use data warehouse for effective decision making. This report will also suggest the type of supplier relationship Mark Lucas should adopt in order to improve his business performance. Information is a very important asset of business. This report will discuss the sharing process of this information among different business operations. Discussion Question Number 1: The emergence of latest tools and technologies is modernizing the shape of the world in which we are living. At the present, latest information technology based systems are offering a lot of facilities and services for the business management. In this scenario, the establishment of new technology based systems has offered a lot of easiness and facilities to the businesses in the form of better customer support and supply chain management. Additionally, the modern information technology based systems are based on automated customer response systems that can deal with customers’ requests seven days a week and 24 hours a day. In short, modern technology has not only changed people’s view of the world but also opened new horizons for the business corporations (Turban et al., 2005) and (Ray, 2004). In scenario of Zara Corporation, Mark Lucas has decided to establish a new business arrangement that will be based on an online business store. This new business store will help the corporation carry out business operations effectively. However, the new online business store will be for Organic Food Company. In this way, customers will be able to interact with business directly using this web based arrangement. Additionally, this online business store will work as a customer relationship management system that will offer web based business management. In addition, this new web based business store will be helpful to Zara Corporation in reducing their business expenditure. For instance, Zara Corporation will be able to reduce cost associated with physical business management. Additionally, they would have possible cost reduction due to lower human resource requirements and they would need to find out a special region for opening a business shop. In addition, Zara Corporation can also reduce expenditures by avoiding store management issues. In this scenario, they can make use of their web based business store for marketing purpose to reduce business expenditures. I have discussed below the possible business areas of cost reduction: Marketing cost reduction: Mark Lucas’s idea for Just Organic Food Company will offer a great deal of marketing support to the business. The new online business arrangement can be used to apply the e-mail marketing strategy that can possibly reduce the overall cost of the marketing as compared to traditional business practice. Human resource: Mark Lucas’s idea for Just Organic Food Company will also reduce the human recourse cost. Since, they will need a number of people for the management of physical store. On the other hand, in case of web based business store they will need minimum staff members for managing the business operations. Business Management: Mark Lucas’s idea for Just Organic Food Company will facilitate the business to spend minimum investment. In addition, there will be need of minimum cost for running a web based business. Question Number 2: Mark Lucas’s idea for Just Organic Food Company would be successful because in this age of information technology almost all the businesses (regardless of their size) are making use of latest technology based systems for the management of their business operations. On the other hand, the use of internet is increasing day by day. At the present, more and more people use internet for different purposes (i.e. for entertainment, shopping and playing games) (Shelly et al., 2005) and (Turban et al., 2005). Thus, this web based business will offer an excellent support to the customers. I have outlined below some of the possible steps that Mark Lucas should introduce to maintain quality of product and service experience for his customers: One of important steps Mark Lucas has taken is about computerising and e-mailing invoices that can inform the customer about the frequent issues and aspects. Thus, it will offer low cost marketing facility. Additionally, through this facility company will be able to inform its customers regarding new products, services and promotion that lead to a better projection of business facilities and capabilities. In this way, the business will attract more customers. Then next main initiative of Mark Lucas for the Just Organic Food Company is about the establishment of automatically allocated and managed stokes facilities that are used to link with the order of the supplier. This is generated according to the quantities needed and how quickly they are required. In this way, customer’s order processing and management becomes much easier. The business is also managing automated stock levels, which helps the business to manage overall business supply chain. In this way, business is capable to deal with stock related issues. In addition, automated stock management at the business can enhance the overall business capability to respond to the customers’ requests. Moreover, the business also offers password protected arrangement for ensuring maximum business data security. Additionally, the customers’ data and information is stored off-net in order to ensure proper customers’ privacy and security. In case of web based business arrangement security is one of the main requirements for any business. In this scenario wise decision by Mark Lucas regarding establishment of enhanced security management system can improve the business efficiency and increase customers’ confidence on business services. For the Just Organic Food Company, Mark Lucas has also established new technology based intelligent system based on reporting and data mart tools. These tools and systems will help the company to protect business information and take on time business decisions. In addition, they will also help the business in building promotional marketing drive for customers for the better customer management. Furthermore, product photo is also a new utility offered by the business. The basic purpose of this utility is to allow the customers to view the products and their sources for better understanding the business credibility. Question Number 3: Mark Lucas’s idea for Just Organic Food Company and establishment of intelligent Data Marts or Data Warehouse systems for the business management will bring potential business enhancement. In this way, the business would be able to attain high level business capabilities. Additionally, the implementation of these modern decision making or decision support systems is aimed at facilitating the business to take effective and on time business decisions. Thus, by taking on time decisions a business can get a lot of advantages. The Data Mart for disconnected operational systems is able to offer the business capability of enhanced decision making. The effective business decision making will lead to business management to take some decision in interest of business and customers. In this scenario, one of the important advantages of Data Mart for disconnected operational systems is about assessment of the customer behavior. In this way the business management will be able to better assess the customer buying behavior. Thus, this will allow the business management to assess the customer buying patterns. On the basis of those patterns the business can offer some packages or discount offers to the customers. In this way, these systems can help improve the business efficiency and turnover. The application of Data Mart for disconnected operational systems is also aimed to take decision for the interest of the customer for instance, on time availability of products in case of any customer ordering arrangement. This will also allow the business to keep track of the customers’ orders and issues. The implementation of Data Marts or Data Warehouses at any business is aimed to take on time business decisions and establish an effective business reporting system. Thus, they can improve the business efficiency. Question Number 4: In order to survive in this competitive world, all the companies should be build and maintain well-built relations with their suppliers. Additionally, the businesses are not individuals that buy products and services from the individual entities that become capable to deliver them required material at that specific time. However, businesses normally make large level purchases. In this scenario, a business must identify the necessity to construct bridges between their firm and the supplier that they operate with by implementing powerful purchaser/vendor associations. However, buyer/vendor relationship is not similar to simple purchasing dealings because there can be a sense of obligation to the vendor. For instance, if a seller sells tube lights, he knows that purchaser will come back to him the next time the business he represents necessitates a new consignment of tube lights. In addition, one most important part of these vendor associations is high-level planning. In view of the fact that the purchasers do not immediately talk with vendors when a purchasing need takes place however, they as well communicate with them in an attempt to determine their future requirements as well as to decide how best to fulfill those requirements by working in cooperation (Epiq Technologies, Inc, 2010). From the above discussion it is clear that for successful development of Just Organic Food Company, Mark Lucas also needs to develop and maintain high level relationships with customers and suppliers. Additionally, for the better business relationship management with business suppliers there is need for building a system to manage domestic ties with the suppliers. In this scenario, internet is a very helpful tool for the businesses to find suppliers at minimum cost (Liker & Choi, 2004) and (TechTarget, 2003). However, supplier relationship management is normally considered as an element of supply chain management and consists of both business practices and software. In this scenario, the practices based on supplier relationship management develop a common standpoint to create effectual communication system between a company and suppliers who can utilize relatively dissimilar business practices and terminology. In this way, supplier relationship management improves the performance of business practices normally linked with purchasing products and services, dealing with inventory, and processing of raw materials. In addition, sellers and purchasers are both better served when they cooperate with each other to build influential, commonly favorable, and safe business relations. Thus, if Mark Lucas adopts such kind of relationships with his suppliers, he would be able to strengthen the growth and productivity of his business and suppliers as well as minimize issues (TechTarget, 2003) and (Epiq Technologies, Inc, 2010). Question Number 5: Information and knowledge is intended to be shared with others. In the same way, sharing of business data and information with clients and employees is necessary for every kind of business. However, with the arrival of business networking and electronic commerce, the majority of businesses depend on the information they collect using internet. Additionally, the companies have now turned into division of a distributed production chain in which they need to supply their services and products to the customers within given time. In this scenario, the companies themselves can depend on a lot of local or global vendors to supply them material required for production of their products or goods. In addition, when customers look for goods and services to match their needs, the information mentioned on those products turns out to be extremely important and critical (Exforsys Inc., 2007) and (Laudon & Laudon, 1999). Moreover, with the emergence of Enterprise Resource Planning (ERP) systems the financial challenges and issues of organizing products, material goods and order based production method are resolved by the majority of corporations. However, Enterprise Resource Planning, business systems and products depend on the business information supplied for efficient processing. Additionally, these systems offer the valuable direction and execution of product development lines competently. As these systems facilitate the businesses in predicting when supplies of raw materials are necessary for the manufacturing of products, the quantity of stored inventory is very much minimized. However, from a financial point of view stored inventory and raw materials are very important assets of a business. Thus, bearing in mind these features of electronic commerce, Mark Lucas needs this fundamental information to verify the practical delivery program based on their manufacturing procedure, supply time required by their suppliers, and customer requirements. However, the success of a business is measured through continuous dependability and performance over a long period of time. Moreover, the business customers and employees as well rely on the information offered by the companies (Exforsys Inc., 2007). From the above discussion it is clear that in Organic Food Company the sharing of information among business customers, suppliers and working staff would benefit the organization. The company will supply them information for the better management of business activities. References Epiq Technologies, Inc, 2010. Articles : Supplier Relationship Management : Supplier Relationships. [Online] Available at: http://www.epiqtech.com/supplier_relationship_management.htm [Accessed 30 June 2011]. Exforsys Inc., 2007. Information Sharing in Business Network. [Online] Available at: http://www.exforsys.com/career-center/business-networking/information-sharing-in-business-network.html [Accessed 03 July 2011]. Laudon, K.C. & Laudon, J.P., 1999. Management Information Systems, Sixth Edition. New Jersey: Prentice Hall. Liker, J.K. & Choi, T.Y., 2004. Building Deep Supplier Relationships. [Online] Available at: http://hbr.org/2004/12/building-deep-supplier-relationships/ar/1 [Accessed 02 July 2011]. Ray, R., 2004. Technology Solutions for Growing Businesses. New York: American Management Association (AMACOM). Shelly, Cashman & Vermaat, 2005. Discovering Computers 2005. Boston: Thomson Course Technology. TechTarget, 2003. supplier relationship management (SRM). [Online] Available at: http://searchsap.techtarget.com/definition/supplier-relationship-management [Accessed 02 July 2011]. Turban, E., Leidner, D., McLean, E. & Wetherbe, J., 2005. Information Technology for Management: Transforming Organizations in the Digital Economy. New York: Wiley. Read More