The main benefi ts are likely to include:
Basis of new ways of operating
TF7’s database experience represents a ‘stepping stone’ to web-based operations. Such operations will allow both customer and supplier easy access and free staff to work from fl exible locations (for example home or at the premises of potential customers). Without the cultural acceptance and knowledge of databases such a development might be more problematic.
Increased trading potential
By moving to database operations the potential for introducing web database technology is readily apparent, so potentially opening up facilities for customer searches and, in turn, increased trading possibilities.
Cost reduction
There should be reduced net data storage costs. This will only apply however, so long as these cost savings outweigh the additional costs of operating a database management sys-tem (DBMS). (Rather than reduce the overall budget, it is more likely that these savings will take the form of released staff time that can be put to other activities.)
Waste elimination
Data is only stored once. The database operations will prohibit data being duplicated. This will involve the elimination of data redundancy and the potential for inconsistencies of the same data are eliminated.
Data reliability
Without database operations, data integrity can be compromised in a number of ways (for example human error, software bugs, natural disasters, errors arising from data being trans-mitted from one computer to another and so on.). These diffi culties are eliminated.
Meet user needs
User needs can be catered for under a database operation, specifi cally:
● Data independence. A single data source can be accessed by a number of different users at the same time. Without database operations, it is down to individual users to generate the necessary data.
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● Privacy can be provided by DBMS software through sophisticated security so preventing unauthorised access and data alteration or destruction. It may be that access and privacy can be enhanced under such an approach.
Requirement (b)
Management information systems (MIS)
MIS provide managers with information to monitor and control the organisation’s activi-ties. MIS collect and process data to produce management reports to a range of manag-ers (typically middle managmanag-ers) who can use it for decision-making, planning, programme implementation and control.
Such systems support operations and managerial decision-making. This enables middle managers to report matters of signifi cance more appropriately to senior level managers.
MIS can be manual but in this case are likely to be computer generated and are often based upon report-producing packages that use information from the same source as the data processing systems.
The value of having good MIS includes:
● Potentially more effective operations and improved management control.
● More complete information available to managers to improve decision-making.
● Improved satisfaction and motivation amongst managers.
● Better information leading to improved budgetary control, stock control, improved fore-casting and so on.
● Maintaining a competitive advantage over rival companies who do not make this investment.
Executive information systems (EIS)
EIS is a computer-based system intended to support the information and decision needs of top-level executives through easy access to both internal and external strategic information.
An EIS will contain powerful software for supporting the types of high-risk, unstructured decisions that are made by strategic-level managers. EIS help analyse, compare and high-light trends in important areas so identifying strengths, weaknesses and external opportu-nities and threats.
The value of having good EIS includes:
● Ability to make informed, potentially signifi cant decisions of strategic signifi cance.
● Maintaining a competitive advantage over rival companies who do not make this investment.
● Improved ability to recognise opportunities or external challenges.
● Ability to track key performance indicators (KPIs) meaning that monitoring and control at strategic level is more effective.
Solution 5 Requirement (a)
A staged approach to developing IS to support K1S’s management both centrally and within salons should be adopted taking account of both ‘human’ factors and supporting technology:
● Problem defi nition. Utilising the consultants’ report, business goals should be clarifi ed.
K1S’s MD needs to consider the overall business and its information needs. This will
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arise from K1S’s corporate plan, and include information that is essential to the com-pany. IS should complement and support other aspects of K1S’s functioning including marketing, fi nance, HR, operations within salons and salon business plans.
● Feasibility study. Alternative solutions might be considered including the costs and ben-efi ts associated with different approaches (manual, commercial ‘off the shelf’ or bespoke software). Consideration also needs to be given to the scope of the system. Data process-ing systems (DPS) process repetitive tasks and can provide day-to-day monitorprocess-ing infor-mation about effi ciency of operations and activities. In this case DPSs can offer unifi ed payroll, HR, cash and receipting, and (bearing in mind K1S’s plans) stock purchasing and control systems. Management information systems (MISs) are based upon report-producing packages that use information from data processing sources. MIS’s can pro-vide salon managers with information to monitor and control the salons’ activities and to report to the MD and central staff. Executive Information Systems (EIS) are a further option; these represent a potentially sophisticated software package that manipulates data (both internal and external) to inform management at a strategic HQ level.
● Project planning. Once the chosen solution is identifi ed a project team led by someone with project management and leadership abilities should be selected. The project team will be responsible for the stages of system development and could report to a steer-ing group comprissteer-ing representatives of head offi ce, salon and IT staff. An implemen-tation plan should be drawn up and agreed involving clearly identifi ed key dates and designated responsibilities. All relevant staff should be consulted. The benefi ts need to be ‘sold’ to staff. Communicating the need for such a development and the potential benefi ts should help avoid resistance.
● System analysis. A detailed understanding of the current system should be gained by liais-ing with staff and management. This can be captured usliais-ing datafl ow diagrams (DFD) and data storage explained through entity relationship diagrams. A mature understand-ing of the requirements of users in fulfi llunderstand-ing K1S’s management operations should be gained. This will culminate in a requirement report.
● IS solution purchase or design. It is highly likely that a commercial package will exist to meet K1S’s needs and potential packages should be checked against the requirement report. If a bespoke solution is favoured, system design will need to be undertaken.
● Adjustment and coding. The software package may require the addition of an e-commerce website. This may mean modifi cation of the package. This stage might be outsourced.
● Data build up including validating accuracy of existing data. There are doubts about the accuracy and completeness of information received from salons. Without com-plete, accurate information K1S could be operating ‘blind’ with potentially disastrous consequences.
● System testing. Possibly the most appropriate approach would be a period of parallel run-ning. It is important that information is appropriate, accurate, available and timely.
● Training and staff communication and involvement. People need to be motivated to enter accurate information. If a need is seen the chances are that accuracy will be improved.
Requirement (b)
Use of information technology
The MD recognises the opportunities that IT offers:
● Strengthening current operating and managing systems. K1S’s systems are generally weak and clearly these need to be improved upon and developed. In theory it would be possible
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to have effective information systems without using information technology (IT). The size and complexity of the company however, means that IT is the only practical deliv-ery option for meeting K1S’s expanding information needs arising from an expanding product range and 35 geographically diverse salons.
● Standardising operations. It would allow K1S to operate a number of different types of system each designed to assist management, coordination and decision-making. This will involve a move from the current stand-alone applications to a common integrated system.
● Increasing operating effi ciencies. Currently receptionist/administrators spend over 40% of their time searching for and analysing information. IT can offer the platform to perform these functions in a less time-hungry fashion including an online diary and booking form and printed appointment cards. The time released should enable more value add-ing activities to be conducted and allow for a speedier answeradd-ing of telephone queries.
● Simplifying procedures. Each salon keeps its own set of accounts and makes its own staff-ing arrangements includstaff-ing recruitment, selection, rotas, holiday cover and remunera-tion, etc. IT allows these processes to be computerised making them easier and less time intensive to operate.
Operating a WAN
A network is where a number of computers and devices are linked. As K1S operates throughout the north of the country the most appropriate computer systems confi guration would be through a wide area network (WAN). Operations can be improved through the use of such a network in the following ways:
● Speeding up communication between K1S’s central management function and individual salons.
● Improving salon collaboration. A WAN would provide e-mail access and easier inter-salon communication and cooperation. This would allow resource and information shar-ing between users in this case in every salon.
● Making more timely returns to the centre. The installation of internet access in all salons would allow e-mail systems which offer speed and versatility, allowing easy communica-tion, and the facility to send electronic attachments so making returns to K1S’s head offi ce more effi cient.
● Maximising the benefi ts of a website. Many organisations now use the potential offered by websites. K1S could use it as a means of advertising and staying in touch with custom-ers. It would be possible to develop an online booking system. A user-friendly website would be a vital component in establishing a single recognisable K1S brand and would refl ect useful information, convey K1S’s core values and exhibit sophistication, a slick and professional approach and reinforce K1S’s logos and corporate colours, etc.
Requirement (c)
Nature of staff involved
K1S has inherited a series of salons each operating independent systems of varying sophistication and effectiveness:
● Some still operate manual systems
● Some use stand-alone computers
● None takes full advantage of software capabilities and only use basic functions.
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This means that staff are at different levels of competence, experience and understanding.
A breadth of training will be required.
Level of training
Some salons still operate manual systems and there is no use of e-mail, etc. As a conse-quence, some training might need to be quite basic. Training in basic computer literacy and user skills for salons will be necessary where the system is a move from manual to computerised one. It will be necessary to explain to staff how to use specifi c programs and how to e-mail.
Who gets trained?
Decisions will need to be made over who will operate the systems and who manages those individuals. It is likely that the prime users will be the receptionist/administrators, salon managers, and central HQ staff (if centralised functions are to be developed for HR, fi nance, purchasing, etc.). In summary, staff will have application specifi c training needs and provision will need to be made accordingly.
Cost of training
Initial/one off training can be treated as a capital cost, (and so be written off over a number of years). Ongoing training and refresher training should in future be a charge to revenue costs. Budgets will need to be agreed.
Method
There are potentially endless possibilities for delivering training ranging from on-the-job training, (training while staff are actively using the new system) to DVD or web-based demonstrations to seminars and courses. There is a need, therefore, to identify and access the most suitable, acceptable, feasible and effective training mechanisms necessary within the budget allocated.
Reaction
Consultants have identifi ed that the more complex a system available to a salon the more the resistance to its full use seems to be. There needs to be an anticipation of diffi culties such as this beforehand, and tactics evolved to deal with these problems. Famously, Kotter and Schlesinger identifi ed certain methods of exercising infl uence to overcome resistance to change including education and communication. As part of the training, the benefi ts of new technology and the advantages of the particular systems will need to be ‘sold’.
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