Assignment 3 Business Report PDF

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INF10003: Introduction to Business Information Systems

Assignment 3: Business Report

Student: Jessica Gonzalez – Barbosa

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Executive Summary

This report for UMC is set out to look at how their current processes and use of technology need improving in order to keep up with forecasted sales increases. Sales statistics have been taken from Week 32 and used to project forecasted sales. Key areas that have been identified include.   

Customer orders are increasing since 2016 up to 2018 Whole Milk is UMC most popular product Woolworths have the biggest orders

A proposed to be model (swimlane diagram) has been created for UMC to show by making slight changes to current processes and introducing new technology will not only improve their level of service to its customer’s but also gain a competitive advantage. Proposed changes include.    

Allowing customers to order and complain online Using a perpetual inventory system that counts stock in real time as a sale, refund or return is completed Using GPS tracking on all trucks to optimize their delivery routes improving travel times Introducing Eftpos machines

The report will answer a series of questions involving business process modelling, the importance of information, looking at stand-alone apps and web-based apps the pros and cons and recommendations to UMC on which one would suit best to use in their business. The differences and benefits associated with using CRM software, web analyses and social network analysis. Lastly a discussion around the privacy and security standards UMC must follow including a proposed cyber policy.

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Table of Contents Executive Summary 2 Introduction

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Task A – Evaluations of Business Task B – Business Review

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Task C – General Questions 8 Business Process Modelling

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Information Importance 9 Mobile App Development Justification 10-12 Analytics and CRM Discussion 12 Privacy and Security Conclusion

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References

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Appendix 1

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Introduction

United Milk Commodities Pty Ltd. was founded in 1963 in Berwick, Victoria by Mr Geoff Frost, a former East Gippsland farmer. The business has appointed a new General Manager who is looking to update the current business processes, technologies and information systems within the organisation to be able to gain a competitive advantage over its competitors and keep up with expected business growth. This report will identify and explain how the proposed changes will meet the perceived technological needs for United Milk Commodities by evaluating collected raw data over the past year to predict future sales including graphs along with business processes models to view current process and discuss the proposed ‘to be’ process and the value in changing part of the business model to again a competitive advantage and create fluidity within the organisation. Lastly will look to discuss the benefits, definitions and recommendations of using advanced technologies within the businesses can help not only improve business performance but to gain a competitive advantage.

This report consists of an evaluation of the business with graphs sourced from raw data provided by United Milk Commodities, a

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proposed business process model and a look into areas of improvement including security, information technology and mobile customers

Task A - Evaluations of the Business

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Data has been taken from week 32 and compared against the last three years of sales. What this graph identifies is that the customer orders have been steadily increasing over recent years.

The data presented above shows the milk production sales from 2016-2018 and the projected liters to be sold in the future. The information sourced from this data indicates that whole milk is expected to increase its production from 182.81 liters in 2016 to 395.5 liters projected that’s an increase of 212.69 liters.

This pie chart clearly shows Woolworths as UMCs biggest client followed by Shell and 7eleven then Joes Milk Bar. This information could then be used to targeted promotions for those businesses who aren’t ordering as much or as frequently. Task B - Business review 6

(As is Model)

The above image refers to the current processes UMC has in place. The problems facing UMC with this setup include inadequate connectivity between the business and its clients, trucks not being tracked during the delivery process to name a few. (To be Model)

The to be model refers to the model whereby incorporating connecting software systems and apps will ensure operational efficiency. Currently UMC have recognised their current processes are inadequate to serve future clients some of these issues include inadequate level of 7

connectivity between business and client, trucks are not being tracked during the delivery process and inefficient complaints handling and logging facility. To combat some of these inadequate processes the introduction of a new connecting cloudbased software program can be integrated into their website to allow future clients to order online whilst also being able to log their complaint which will be then handled immediately by the ordering department. Using perpetual inventory control systems which record and update inventory records after each business transaction is completed including any adding to or subtraction from stock (Unleashed Software, 2019). The benefits of having this type of system in place are that businesses can keep a real time account of their stock limiting the need for a store person on hand to physically check stock availability. It also allows for businesses to be able to understand the needs of their customers in terms of preferred products while also reducing the amount of physical stock takes required. Introducing GPS tracking on all trucks would ensure optimization on routes decreasing travel time and fuel costs. (Fleetminder c. 2020).

Task C: General Questions

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Business Process Modelling The role of business process modelling for organisations such as UMC are to align operations with new business strategy, improve process communication, increase control and consistency, improve operational efficiency and gain a competitive advantage. (Creately, 2017) Align Operations with new business strategy Implementing or changing a business strategy requires changes to operations and people performing the work. Change is generally something some people find difficult and so can have an impact once the new strategy is implemented. Business process modelling can facilitate this by: 

Staff helping managers and executives maintain consistency across all processes.

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Ensuring operational tasks and activities carried out by staff help the organization implement the strategy. If the process and strategy are not aligned it usually leads to failure in executive. Because even if the operational tasks are performed currently, the overall organizational goals are not achieved (

Improve Process Communication Business processes modeling allows for the documenting and communicating of the businesses processes. The benefits include 

Clear and unified language which is easy for all staff to follow includes processes and how to processes where problems may need to be solved.

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Low retention of staff because they are all clear on their roles and what to do should there be an issue to resolve.

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A documented strategy for all new staff making training much easier and faster.

Increase Control and Consistency In order for businesses to succeed processes and roles need to not only be well designed but consistent and applied the same way to all situations by all staff. The business process model helps this by: 

Handle complex issues in a timely manner

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Formalise existing processes which may not be well documented

Improve Operational Efficiency

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Businesses want to ensure optimal results based on the resources available to them. Having a business process model assist with improved operation efficiency by:   

Helping identify areas of improvement A visual recourse which all staff can follow clearly Encourages suggested changes from staff

Gain a Competitive Advantage Business process modeling creates an advantage through minimizing operational risks. Processes are clear and easy to follow by all, encourages decisions and suggested improvements.

Being able to view current process models (refer to as is model) with new process models clearly shows the changes made and how they will work creating consistency, governance and better process performance management. (refer to the to be model) to see how slight changes to current processes can improve operational efficiency to gain a competitive advantage.

Information Importance Information is important to businesses as it allows a business to make informed decisions by presenting data in a way that can be interpreted by higher management and the starting point of where improvements can be made should it be required. (Sirranni, A 2020) Introducing systems that can be used to store important information is useful as it can be used to attract new customers. Currently UMC do not have sufficient information systems that can keep up with their expected sales growth. A recommendation to attract new customers would be to use CRM (customer relationship management) software. This software helps gather information from different departments to create a holistic view of each customer in real-time. Quick decisions can then be made on whether to upsell or cross sell, improving customer communication and responsiveness to facilitate the management of sales and marketing campaigns. UMC could also look at creating social media pages such as Facebook and Instagram whereby targeting campaigns based off the information captured from their CRM software. This could help in repeat business, new customers and increased profits.

Mobile app development justification

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Native apps and web apps are both useful tools. A native app works with the device’s built- in features and is downloadable from an app marketplace, while web apps are accessed via the internet. (Greenhalgh, T 2018) In order to recommend which app would best suite UMC a comparison of the two need to be conducted to look at both the strengths and weaknesses of both apps. (Viswanathan, P, 2020) Strengths - Native Stand-Alone App   

App is downloaded onto a mobile device

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Users access the app from their mobile device’s web browser

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Easy to maintain due to common code base across multiple mobile platforms

Functionality integrated with devices features

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Often performs faster than web apps

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App store approval guarantees security and compatibility

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Can be made compatible with older device’s

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Building and fine -tuning the app is made simpler with a SDK (software development kit)

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Can be released at developer’s discretion since there is no app store approval

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Can be accessed offline

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Receive support from the app store

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Enable data to be saved and relocated at launch

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Push function notifications increase customer engagement

Weaknesses - Native Stand-Alone App 11

Strengths - Pro Web App App is internet enabled

Weaknesses - Web App

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Limited in what features it can access

More expensive to create and maintain especially if intended to be used across multiple platforms

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Safety and security not guaranteed

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App store approval can be daunting

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Limited in what native features it can use

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Getting app approved can be difficult 

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Requires the user take a number of steps to gain access – go to the store, locate the app, accept the terms and conditions and download it – which can be a deterrent for some

Not as much support across various mobile browsers

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Users may be more worried about security since there’s no standardized quality control Can’t be used offline

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Lengthily approval process for entry into app store

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Accessing usage patterns in challenging for web apps on account of the fact different users prefer different browsers

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Tougher to provide support as users prefer different browsers

Based on the comparison of both apps and looking at their strengths and weaknesses my recommendation would be to use the native stand-alone app. Native stand alone apps supersedes web apps in terms of the best customer engagement. Native apps are known to have speed, efficiency, accessibility and can be accessed offline which is beneficial if you are out of range and need to place an order.

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Having the app within a marketplace aids in offering customers a more secure and safety conscious platform. The marketplace also offers users support so if the user is experiencing any issues this will be handled by the marketplace staff and not UMC. Customer support is also vital to the users and unlike web apps native apps have a push notification function which allows instant connection with the user a great tool when it comes to improving UMC marketing strategy. In fact, its reported that push notifications increase app engagement by 88%.

Analytics and CRM discussion The role of web analytics, social network analytics and customer relationship management technology, while varied have an important role in providing necessary information to businesses like UMC about their user’s online behavior. Web analytics Is an information technology tool that collects, stores, analyses and graphically presents data collected from websites (Alghalith N, 2015 pp.12-16). There are numerous benefits to using web analytics in businesses including matching available resources to visitor interests, increase the value of each visitor with targeted information that interests users. This information could then be used to supply more or less of a type of product, offer discounts, target website information that will gauge the users.

Social network analysis This tool is used to investigate the social structures of individuals, places and things and the relationships or interactions that connect them. The benefits associated would include targeted promotions to the groups of people who share similar interests.

Customer Relationship Management Technology that focuses on collecting, processing and coordinating information about business interactions with customers including business transactions, marketing, sales and service. (Alghalith N, 2015 pp.12). The benefits associated with collecting this information would be to improve on the level of services offered, improved efficiently and the improved ability to cross sell.

Privacy and security 13

In order to protect UMC client information a Privacy Policy and Cyber Security Policy will need to be created and listed on the website to ensure all parties are compliant and satisfied that the information being collected is handled in accordance with the Privacy Act 1988 (Commonwealth of Australia, 2019). The privacy policy will need to inform clients and staff that their information will be protected from theft, misuse, interference, loss, unauthorized access, modification and disclosure. All information that is no longer required will also need to be destroyed either by shredding or being left in a safe secure place. The Cyber security policy will need to include topics such as: Setting password requirements Setting passwords that require updating and complex will act as the first defense against a cyber-attack. Passwords should be at least 10 characters long

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not contain a complete word which easily links to you including your name, company name, family member or pet

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include a mix of upper-and lower-case letters, numbers and symbols

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be different from each other and from previous passwords

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change regularly

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be kept private

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be unique and hard to guess Outline email security measures Include guidelines on:

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when it’s appropriate to share your work email address

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only opening email attachments from trusted contacts and businesses

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blocking junk, spam and scam emails

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deleting and reporting suspicious looking emails

Explain how to handle sensitive data When it comes to handling sensitive data, outline: when staff may share sensitive data with others

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ways they should store physical files, such as in a locked room or drawer

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ways to properly identify sensitive data

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ways to destroy any sensitive data when it is no longer needed

Set rules around handling technology Rules around technology should include: 

where employees can access their devices such as a business laptop away from the workplace

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how to store devices when they aren’t in use

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how to report a theft or loss of a work device

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how system updates such as IT patches and spam filter updates will be rolled out to employee devices

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when to physically shut down computers and mobile devices if not in use

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the need to lock screens when computers and devices are left unattended

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how to protect data stored on devices like USB sticks

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restrictions on use of removable devices to prevent malware being installed

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the need to scan all removable devices for viruses before they may be connected to your business systems

Set standards for Social Media and Internet Access The standards for social media and internet access may include: 

what is appropriate business information to share on social media channels

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what is appropriate for staff to sign when using their work email account

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guidelines around which websites and social media channels are appropriate to access during work hours

Prepare for an incident If a cyber security incident occurs, you should minimise the impact and get back to business as soon as possible. You’ll need to consider:

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how to respond to a cyber incident

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what actions to take

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staff roles and responsibilities for dealing with a cyber attack And finally, all policies should be updated regularly and all staff made aware and familiar with any changes.

Conclusion

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While UMC have created a business with effective processes to serve their current market. Their systems are inadequate as the businesses takes on more clients. By incorporating new technologies and improving current processes through use of a swim lane diagram (refer to be mo...