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Executive summary

The given report is assembled in order to assist to
the seven question of the case study of Brisbane Multi-Faith Temple (BMT) and
required to provide proper answers to given questions which are linked to
necessities of information system to the chairman, Sam. The due date to this
report is on 25th January, 2018.

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BMT is currently facing many problems such as due to
its huge growth. There is lack of advance technological advancement to stay
competitive in market place which is faced by the business. Therefore, Sam
suggests consultants to solve those problems and issues that are encountered by
BMT.

After the brief research and analysis of the business
it suggested that there must be some enhancement on its performance, cost
management, relationship between donors, customers and suppliers, safety and
security of data and files of donors and customer, staffing, online delivery of
foods, accounting, employee participation, marketing scheme and online banking
process. This all could be properly managed with advance technology of
information system. The more effective method for the business is to purchase
commercial software which could help to lower cost of business by the use of
internet. By the help of internet employee could have effective communication
inside the business through mobile, laptops, E-mails, and intranet. They could
also thank to donor with their kind contribution through via emails. Hence, Sam
wants some changes in the business system so that he could run the business
smoothly.

In conclusion, collaboration of systematic data with
enactment of advance information system for timely and accurate data is
required to BMT. BMT must adopt some changes in organisation in order to solve
the problems and issue that arises in the business.

                                                                              

 

Introduction

Every day new business is emerging in this challenging
world. There is high competition in this business world. Every business is establishing
to achieve maximum profit and their main focus is on serving current customer
and always looking forward to attract new customer providing their clients with
standard products and services. But due to this challenging world with many
competitors the owners of business are facing many difficulties to survive in
this challenging market. The growing problems in business can be minimized
through advance technologies with proper development of information system.
Information system is extremely important in business as it is integration of
hardware and software which is used by employee to communicate and used for
sharing many important information. Technology is very crucial part of any
business which help’s in making effective operation of business, cost
management and control, control of inventory, effective human resources,
marketing strategies and effective accounting method. In today’s world
e-commerce is rapidly used in every business to order goods and services and to
do banking transactions, many businesses with the help of technology they are
making their own business website for online purchasing and delivery of goods
and services. In one-click customers are able to buy any goods and services
staying at their own homes.

BMT is a charitable organization which is operated by
group of volunteers and Sam. Sam is chairperson of this organization. The first
temple was built at Mout Cotton. There was a huge growth of patronage in the
organization and was able to receive enormous popularity that the organisation
made a decision to make new branches of temple in Toowoomba, Rocklea, Gold
Coast, and Sunshine Coast. After the initial opening of new temples in
different locations Sam started feeling some difficulties in order to manage IT
cost and maintenance, worried about collaboration of communication and sharing
information, he was disturbed because of staffing issues. Also Sam prefers fast
and easy way to order product to reduce time and make it more comfortable in
work. Therefore, information system must be applied or adopted to BMT in order
to solve all these problems. As a consultant of information technology, Sam
will be given proper decision and recommendation for the improvement of
business performance.

The main focus of this report is to give answers to
seven key questions of BMT. The development of information system is to improve
performance of business and to achieve competitive advantage, effective
communication system within the business, safety and security of data and
documents, necessity of effective staffing, good relationship between supplier,
donors and customers. The main attention of this report is on seven
sectors.  In first question it explains
the definition of information system and role and importance of information
system to BMT. In second question problem we discuss about the problems faced
by BMT which are linked to various types of business and system issues. In the
third part it illustrates and suggests the role of information system in order
to achieve competitive advantage for BMT. After that it concentrate in the use
of intranet, internet and extranet to share information and to communicate and
interact inside and outside of the business. In the sixth part it explains on
management of organisation change after the adaptation of information system in
business. At last it illustrates about security and ethical problems that might
arise after proposing information system in business and finally at the end of
the report it will give some relevant decision and suggestion to the problems.

In this 21st century there is rapid change
in technology with the change in information system. Everyday new technologies
are invented in order to manage organisational performance. Information system
can be defined as a system which is designed in a systematic way to support
internal and external activities of an organization. Information system is
necessary in terms to manage collaboration in business, and for providing
relevant information and for collecting and storing of data and files.
Information system is combined mixture of hardware and software which are used
for inventory and cost control, planning and functioning, decision making and
coordination in the organisation.

According to (Keneth & Jane, 2016, p. 31) states that
the education on information system is very crucial to business as it help the
firm to achieve competitive position, meeting global needs of people, assisting
in achieving organisational goal and success, creating more value in business
by providing necessary goods and services to customers, with the help of proper
information system a business could survive in market and could compete with
other competitors.  The advancement of
information system helps in making digital firm, where there is proper collaboration
between employee, customers and suppliers in digital way. According to (Kubiak
& Kowalik, 2010) the tools of information technology helps any business to
compete against their rival’s companies as information technology encourage
authentic and quick information. Hooley, Saunders and Piercy (2005, P.133),
emphasize that the crucial benefits of information is it helps in making
efficient decision in business, as information also helps to bring out
opportunities, strength, potentiality in business management. Furthermore,
information system is an internal part of an organisation which are used to
solve problems, evaluate prospective action and reduce risk in decision making
task (Cravens & Piercy 2006).

Additionally, Levy and Weitz (2002) emphasise that
information system must be used to identify and store important data about
their current and potential customers that will also help to make essential
benefits to planning and marketing management. Information system provides
several advantages to BMT which can be explain through the given picture below.
The initial concept for BMT is to analyze the sectors or systems which must be
improved. Then, adopt different hardware and software program in order to make
systematic process in a business. Likewise, Sam was facing many problems
regarding delivery of food products, staffing, managing timetables schedule,
instant online emails thanking donor for their huge contributions and so on.
These problems can be sort out easily with the adaptation of hardware and
software applications. Gradually the business will start to develop by
implementing effective procedures and to achieve enhancement and success in business.
Lastly, there might be challenges that may arise after the adaptation of
information technology, which we will be discussing later in the report.

Information system involves various kinds of software
programmes and database which embrace design of enterprise-wide system to
arrange all key tasks of business. As according to Andolsen et al. (1999)
highlight that the information system includes wide arrangement of
communication media and devices which serve to connect information system and
person through e-mails, voicemail, voice and video conferencing, fax machines, internet,
intranet, groupware and many more. There are various roles of information
systems in business which are explained below:

Source: The Role
of IT in the organization by T. Dewett, G.R. Jones/ Journal of Management 27(2001)
313-346

Perrow (1967) hold the view that organisation must
offer information technology in order to reduce uncertainty and risk of any
transactions which are significant to change input into output. Information
efficiencies can be defined as a factor which reduce management cost and save
time, this could be only happen when information system permit employee to do
their job at higher level. Information technology helps to increase
organisational productivity and quality performance at higher level for
example: by the use of IT applications in an organisation it has been flexible
to restructure task that result in increasing in people’s performance because
technologies are adopted in an Organisation. It might take two or more employees
in doing same task but after implementation of IT will only take an individual
to finish same job at less time while, information synergies cab be explained
as the functions where there are two or more employee or subunits who works
together to utilize their resources and cooperation among their group and
perform effective role and duties, it is a collaboration between a person with
a group to perform their respected tasks. Information synergies are adopted in
an organisation when IT assist or enhance growth in quantity or degree and
increase in productivity which could only be acquired from teamwork and  coordination 
(Alchian & Demsetz 1972). By connecting these two information
efficiencies and information synergies an oraganisation can be benefited
effectively which enhance potentiality to connect and allow employee, boost
capability to organise organisational knowledge, enhance effective efficiencies,
improve communication and encourage innovation that helps to expand boundary
spanning capacity. Huber’s (1990), point out that IT is the main factor to
upgrade the quality time, decision making process, enhance organisational
productivity. Huber’s research on role of IS was on three fundamental methods
and they are explains as following.

·     
Organisation could
achieve high productivity through efficiency and innovation from the use of IT
applications.

·     
Secondly, analyze
organizational performance by defining effect of IT formation.

·     
Huber’s shows the
relationship of organisation characteristics and organisational outcomes to
provide more comprehend sight of IT and organisational performances.

 

IT links and
enables employee

It shows that electronic communication is more
efficient to perform better communication within an organisation rather than
face to face communication. Hiltz, Johnson, and Turoff (1998) suggest that the
key advantage use of IT in organisation are to connect both employee with organisational
functions and performance through electronic mails, data base,
teleconferencing, repositories and to gain information synergies and
information efficiencies.

IT increases
boundary spanning

By the growth boundary spanning in an organisation lead
an individual to connect organisational internal network with external information
of an organisation. Tushman (1977) suggest that if boundary spanner provides
relevant knowledge, it helps employee in managing rules accordance to a system
knowledge which serve in solving the problems. Growth of online application
makes significant benefits to make information more flexible and transparent to
staffs and helps in reducing the problems and issues (Edmonson & Moingeon
1998).

IT condifies the
knowledge base     

According to Leidner and Elam (1995) manager should
have proper knowledge about information system in order to transfer, cooperate,
communicate and supply in a digital format which is used in the process of
decision making.

IT promotes
efficiency

As it is discussing on previous points that IT is
useful to increase organisational productivity. Huber (1990) also emphasise that
IT consists of various features that can influence efficiency of an organisation.
IT has many efficiencies such as capability to communicate quickly, easily and
less costly at a precise time, potentiality to communicate more quickly with
greater accuracy to selected group, capacity to record data and files
relevantly and at low cost, IT encourage various decision making activities such
as storing huge number of information rapidly at cheap cost, IT encourage fast
and precise combination of information, IT has ability to make sensible
decision and judgement.  Argyres (1999)
point out that by the use of IT, it helps in making the structure of
organisation much more efficient.

Specialization                                                                                                    

Specialization in an organization can be defined as
various kinds of tasks, skills or jobs (Hage & Aiken 1967).  As stated by Lawrence and Lorsch (1968)
describe that IT helps specialist by assigning good information supply through
technologies such as corporate intranet, supply of internet, email,
telecommunication, voice and fax mail.

 

 

Formalization

Formalization can be defined as procedures that are
developed in order to respond repeated issues or opportunities that identify
how a person and their performance, functions, coordinate their activities to
achieve organizational goals (Aiken et al, 1980). IT makes possible to record
and restore organizational events and information and also IT helps to control
activities, process and behaviour through practical formation.

Inter-organizational
relations

In an inter-organization context, IT can help an
organization to save cost and facilitates to transfer and utilize information
(Zaheer & Venkdrama 1999). IT helps to maintain good relationship between
inter-organization with other firms.

 

Key Information
requirements of BMT

The key requirement of BMT case are explained below as
following

·     
There is the significant
need of management information system for Sam in order to make smooth business
decision process like relevant information and customer and suppliers, pricing
policies, payroll cost, safety and security measures, and administrative
problem on patron donation.

·     
Online Banking Process is
needed as Sam wants donor to donate money via online and he wished that they
could thank their donor for their great contribution through email or website
or any other sorts of media.

·     
Sam also preferred proper
accounting process and delivery of foods as per their order as it make their
work fast and efficient in busy time.

·     
Sam must get proper
knowledge about importance of information system and how it operates in
business in order to solve all those obstacles that were rising due to increase
in number of transaction of BMT and Sam must know that adaptation of
information system can help in achieving competitive position over new
competitors.

According to Earl (1996) states that
planning is needed in order to adopt information system in an organization. As
information system is developed in an organization it helps to analyze
strategic function of the business which helps to provide action, procedure,
suggestion, innovation and decision making solution in terms to gain
competitiveness. Any organization in today’s world cannot stay without
application system. Information system helps to store and arrange data of whole
organization. IT encourages different programmes world wide web and internet
which make work any firm easier and faster. Due to the hacker and cyber-crimes
the information system has become more complicated so, it is crucial for an
organization to maintain and control through effective rules and policies.
Small business firm use IS to add value to the business. Better innovation can
be achieved by the significant role of technologies and information system in
business (Yettonet et al., 1994). Lack of knowledge of Is to owners and manager
could disturb in investment process. This happen when owner have very little
knowledge about time to manage strategic planning opportunities, which later
may lead to lack of trust to suppliers (Igbaria et al., 1998).

 

Business to Business (B2B) e-commerce is one of the
popular applications which are increasing day by day in this challenging world.
B2B e-commerce encourage opportunities and provide significant change in
organization such as reduction of cost, improvement of efficiency, good
relation between customer and suppliers, entry to global market, expansion of
market improves productivity and growth in competitiveness (Fauska, Kryvinska
& Strawss 2013).

B2B e-commerce enhance SMEs to increase various
competitive strategy to compete with other firms as well as it encourages
capabilities to compete in international markets (Scupola, 2003). B2B
e-commerce helps and show more commitment to enlarge and expand markets
(Mullane, Peters & Bullington, 2001). Competitive advantage in a company
represent company’s potentiality to supply customer with better product and
services, to provide greater value, either providing the products or services
at lower price or by providing standard goods and services at higher prices so
that it satisfies the needs and wants of customers (Beraw, 2004).

Information technology is one of the main factors that
connect competitive advantage for SMEs. The crucial points to encourage the IT
in an organization is that it assists firm from by the use of internet to move
ahead of rivals or competitors and distinguish their status in international
markets. IT is also considered as a tool that helps to upgrade the competitive
advantage of the firm.

Furthermore, Mazen and Byra (2012) explains that, IT
and competitive advantage are related terms. Development of IT encourages
competitive strength and boosting IT resources and encourages organization to
gain competitive position. Aldhmour (2007) suggest that information system and
communication process assist companies by providing support to competitive
advantage by improving their status and improving customer service quality, by
providing feedback of any information occurred, reducing cost, promoting
beneficial coordination, effective marketing strategy, continuity process of
development, maintaining good relationship between the distributors and
suppliers.

In addition, N’Da, Bergeron and Raymond (2008)
suggested that growth in productivity, enhancement in product and service
quality, growth in sales and revenue are seen in an organisation due to
adaptation of B2B e-commerce.

Source: Journal of
global information technology management by Elbeltagi, I. et al., 2016.

·        
B2B e-commerce helps to
reduce cost of an organisation.

·        
The adaptation of B2B
e-commerce helps to differentiate products and services.

·        
The development of B2B
e-commerce help’s in growth of firm by increasing its productivity.

·        
B2B e-commerce helps to
provide standard and quality products and services to the customers.

·        
B2B e-commerce encourages
and help to gain competitive advantage in an organisation.

When B2B e-commerce is higher than SMEs could achieve
higher competitiveness such as reduction of cost, growth of productivity, sales
revenue, efficiency, high quality production of products and differentiation.

 

 

 

 

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