Final Assignment (September 2016 ) [131777 ]Oa IM PDF

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6/11/2016

UNIVERSITY OF SALFORD, ROBERT KENEDY UNIVERSITY FINAL ASSIGNMENT, OPERATION AND INFORMATION MANAGEMENT

Akintayo Olugbenga Sonaike STUDENT 1D: 00478143

Table of Contents Introduction…………………………………………………………………………2 Part A: Analysis – Business process models and Strategy Analysis………..………2 Business process models………………………..…………………………………2-5 Strategic analysis : SWOT……………………………………….…………………..6 Part B: Open source software comparison table…………….……………………..6-8 Part C: Report……………………………………………………………………..8-12 Part D: Reflection on online contribution to online discussion……………….…12-13

Table of Figures Figure 1. Computer system and Information system, (Patrick Chenais).…………....3 Figure 2: Business process model of Azzaz and PhoneBits as existing…………......4 Figure 3: Business process model of Azzaz and PhoneBits as Proposed………..…..5 SWOT Analysis for Azzaz Brand……………………………………………............6 Figure 5: Anthony’s triangle………………………………………………....……..10 Figure 6: Gorry and Scott-Morton grid in decision-making and management activities classification……………………………..…….............10

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Introduction The final assignment is in four parts as follows: Part A: Analysis – Business process models and analysis, in this section you should develop 1. A series of at least two business process Models. Which captures the existing and your proposed for Azzaz. The models should follow the BPMN notation shown in the lecture slides. It is recommended that you use Microsoft Visio to create the models although you may if you prefer to use word, PowerPoint or appropriate alternatives. 2. Strategic analysis for Azzaz. You should use at least one recognized analysis technique such as SWOT, PESTLE etc Part B: Open Source Software Comparison Table In this section, you should conduct research into a suitable software for Azzaz. You should decide on the set of characteristics, which you will use to evaluate the software, and your research should consider4-5 alternatives in detail. This section should be represented as a table. Part C: Report In this section you should write a report which provides an overview of current situation for Azzaz together with a roadmap outlining how proposed changes to the business can be achieved to the benefit of the business. This should draw on your analysis in part A, include your recommendation for software in Part B, and provide recommendations for ensuring that the strategy is effectively implemented, including consideration of the challenges ahead. This section should follow the standard report structure: Title page - Contents - Introduction – Main Section – Conclusions and Recommendations – References. Part D: Reflection on your contribution to the online discussion and wiki In this section you should submit a 250-word reflective summary, accompanied by your own selfassessment of your contribution to the online elements throughout the module, using the table Reflection Self-Assessment Proforma in Appendix A (copy and paste it in your assignment document). The reflective report should include your detailed reflection, supported with evidence (pasted URLs) from the online discussion and wiki,

Part A: Analysis – Business process models and analysis, in this section you should develop A business model is a set of assumptions about how an organization will perform by creating value for all the stakeholders starting from the customer. According to (Magretta, 2003, pg 44) “A business model is a theory that is continually being tested being tested in the market place. and ends to the customer.” Business process modeling in system engineering is the activity of representing process of an enterprise, so that the current process may be analyzed and improved. This is often done to 2

increase process speed or reduce cycle time, to increase quality, to reduce costs, such as labor, materials, scrap or capital costs. The four basic categories are flow objects, connecting objects, swim lanes and artifacts. From the case study, Azzaz acquired PhoneBits Azzaz

PhoneBits

1 Compu ter systemdd

Comp uter syste m

1

Computer system

D

D

2

AZZAZ BRAND

2

2

Information System Enterprise Information Model Figure 1. Computer system and Information system, (Patrick Chenais) At the beginning of the acquisition process, the customers will enjoy the high quality services but at some point, there will be inconsistency due to the customers need. The company will have to introduce hardware and infrastructure to support the team to provide better quality service and more importantly to enhance the working procedure to improve the quality in order to set and maintain standards. To do this there is need to understand the business process as existing and it should be properly analyzed in order to areas of improvement. The existing process, the customer places order and the payment type is identified if it is cash or check and if it is payment with credit card, in one of the instance if the goods are not available or the requested quantity is not in stock, the purchase may be amended or the process may end. In the event of availability of the requested stock, the items and invoice is processed and delivered. In the proposed business process, the need to introduce a turnaround business process of introducing online order and delivery and at the same time the goods are picked up from the retail shops. With the introduction of infrastructure in order to be able to place the entire organization into one interface using business models to answer how money will be made being capitalized. The business models are Revenue Model, Marketing Model, Service offering model and service delivery model will be put together with the right business plan. “According to Branden burger and Stuart (1996, pg.7) Business models define the underlying economic logic that ensures that a

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company can create value. Nevertheless, what exactly is value? A basic model for measuring the value created in business interaction”

Figure 2: Business process model of Azzaz and PhoneBits as existing From the business model diagrams it shows the flow of both organizations independently which is similar but there is little difference in the IT system, initial Azzaz considers credit card during their transitions while PhoneBit considers only cash or checks as such the data being entered into their various computers will be different. With the merger as an organization the need to bring both existing company and the new companies Information system under one interface with all their stored data being intact will arise with the proposed business process which will over all the various departments of the new organization like supply chain, Administration, HR, IT to mention a few.

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BUSINESS PROCESS MODEL FOR EXISTING AND PROPOSED AZZAZ BRAND

Figure 3: Business process model of Azzaz and PhoneBits as Proposed

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SWOT ANALYSIS FOR AZZAZ BRAND. Figure 4 Internal Positive Factors

Internal Negative Factors

Strengths • Azzaz has good expertise, experience, reputation and track record in sales mobile phones and accessories. • Expansiion by acquisition of PhoneBits • Azzaz has good business plan that meets the customers now and also considering the future challenges. • Competition will be reduced • Financial tool for enhancing longterm profit.

Weaknesses • Limited funds to actualize objectives • Retrenchment • Clash of corporate culture • Increased business complexity • Huge debt

SWOT

Opportunities • Azzaz Has innovation for product development with the introduction of the eCommerce • Azzaz has good market consolidation by increase of gaining competitive edge • Advertisement and change management • Tapping from various technology to enhance its productivity • Feedback to customers which will reinforce the trust of Azzaz. • Opportunity to have international presence External Positive Factors

Threats • Unfavorable change threaten Azzaz • Post-merger integration • The owner of PhoneBits may be emotional • Legal issues may be a potential threat • Government regulations could also be a threat • Customers already familiar with PhoneBits will require to be convinced on the Azzaz brand External Negative Factors

OPEN SOFTWARE COMPARISON TABLE Criteria OPEN SOFTWARE SYSTEM Definition Open anyplace, to everyone at all times, all intellectually, property right is given up Examples Linux, Open office, Libre office, ReactOS, FreeDOS, FreeBSD, Haiku, osCcommerce, Drupal, Openchart, Mobile computing, 6

PROPRIETRY SOFTWARE It is also called closed system

MACos, Windows

McAfee,

Solaris,

Mozilla firefox, PHP, Python Cost Low cost, many of the software programs, utilities and games available are free and open source including the complex applications Use and Unlimited, can be used on older innovation hardware making it beneficial to all, including corporate, scientific and academic organizations of every size. It is used to power development machines and servers. It is also used by technically proficient users who prioritize system security and reliability. It has more innovation Redistribution Allowed freedom to distribute Vendors Does not depend on vendors Quality Better Customization Better, can be modified to suite different organizations Assurance Not good Code

Purchase with source code, he program allows distribution in source code as well as compiled form. Where some form of the product is not distributed with the source code. There must be a wellpublicized way of obtaining the source code. The source code allows programmer to modify the program Modification Freedom to use, freedom to modify and improve the program License Must not be product specific, the rights attached to a programme must not depend on the program’s being part of a particular software distribution Discrimination No discrimination to any one, higher class, middle class and lower class Accessibility and Accepted by all and accessible to acceptability all individual and organization Collaborative tool Yes 7

High cost, though there are many free programs utilities and game, the majority of the program are expensive. Limited to innovation and few internal use, it does not run well on older hardware

Not allowed High dependency good Cannot be modified Very good Purchased without source code

Not allowed Product specific and restricted

Yes, the is discrimination only for upper class users Not No

Commercialism and Marketing Interoperability Flexibility Security

Freedom Reliability

Simple and has better market

Relatively good market

Built to open standards and no vendor lock in Adapt to new trend Has a tight and highly secured operating system with its source code open and available for any users review making it easier to identify and repair vulnerabilities Freedom to use Used by majority, notoriously reliable with strong focus on process management, system security and uptime

Not built to open standards Limited flexibility Comparatively less security, vitim of virus

Limited as it controls the user Few users, it is less reliable, many of sacrifices made in the name of user friendliness can lead to security vulnerability and system instability,

Maintenance free and there is a Maintenance and support paid for massive amount of online support from inception, it offers integrated online help available Functionality Provides greater ease of Not easy to deploy development and easier to deploy Transparency Transparent and open to all Has many dark corners in which bugs and other unknown functions lies Scalability Very good Good Robustness Very good Very good Manageability Very good Good Quality of Very good Good product Speed of Very good Very good development Ease of use Good Very good Costs Very Good Bad Compatibility Good Very good Support Maintenance

Partly adapted: the open source initiative, n.d [online]. Available: http://www.opensource,org/07.11.16

Report Table of contents…………………………………………………………………………………………..……………………….……….…8 Introduction……………………………………………………………………………………………..…………………………………….…9 Background Information………………………………………………………………………………………………………..………….9 Azzaz Business Process…………………………………………………………………………………………………………………..9-12 Conclusion and Recommendation……………………………………………………………………………………………….…….12 8

Introduction This a report on the acquisition of business by a company based in England

Company background Azzaz mobile phones and accessories located in England. Azzaz brand is a sole proprietorship owned by Lewis who started the business with one shop and has been running for since 1990. Azzaz has grown into a company of eight outlets. In January 2014, there was an acquisition of PhoneBits mobile and accessories, which has three outlets. The three outlets coming onboard Azzaz brand to make it eleven outlets of which nine outlets are in England and two outlets are in Norway giving him an opportunity to operate outside England as such expanding to European market. Purpose of the study With the merger of Azzaz and PhoneBits, Lewis identified a need to open a warehouse (centralized inventory system to customers) in the east of England, also decided to launch an eCommerce arm to the business with consideration of a relatively small overhead. Azzaz and PhoneBits have both been operating using different IT systems that is different traditional computers that stores basic datas and spreadsheets in their various outlets. there will be need to add b2c eCommerce functionality fully integrated into a retail stores and allowing customers to collect and return stock via the stores as well as via courier. It will be decided whether open source software will be used or licensed propriety software should be used since it will play a major role in the running of the organization as well as communication amongst team members. With the increase in customer demands, the staff was finding it difficult to manage them with manual systems; also, the communication within the organization amongst the team members was also a challenge for Azzaz. Because of this the company is looking into a Customer relationship management or Enterprise Resource Planning software to manage the operation. In order to minimize cost an open source software is the solution. In this report, the current and proposed system will be analyzed; there will also be a study of the CRM and EPR software, including comparison of the Open source and EPR software, different business model to use to deploy the EPR and strategic analysis using the SWOT technique. Azzaz Business Process Customer Relationship Management, manages a company’s interaction with client, customers and sales prospect, it retains and maintains customers. It typically uses technology to organize, automate and synchronize sales activities including marketing, customer service and technical support. A major shortcoming for a CMR is that it comes in a standard module that makes organization to ament their processes to suite the program. It relies solely on internet based, it relied network software, poor usability and fragmented implementation may not integrate with other system with the organization. ERP Integration of activities of activities across any enterprise from product planning, inventory control and proving distribution. In an organization sociotechnical system involves users operating together to achieve a goal. Some of the limitations are high cost of retraining of 9

employees, installation and maintenance may require specialized IT staff, hardware and network facilities. Resistance to change can reduce productivity. Organizations a divided into Strategic, management and operational level. Operational levels are further divided into marketing, finance, manufacturing and Hr. Streteg ic Level Senior manager

Management Level Middle mangers and Knowledge data workers

Operartional Level operational managers and the functional areas like sales and marketing, manufacturing, Finance, Accounting and Human resources

Figure 5: Anthony’s triangle The model above adopted from the reading material from the University of Salford. The triangle shows that, there are few decision makers, which are the senior managers at the strategic level and at the Management level, which are the middle managers, then followed by the knowledge data workers, operational managers and the functional areas like sales and marketing, manufacturing, Finance, Accounting and Human resources. Each of the IS monitors, support and make decisions and decisions can be structured, less structured and unstructured as shown in the Gorry and Scott-Morton grid in decision making, the decisions are taking on short and long term basis involving human approach, brainstorming, use of different software in order to enable a concrete work flow.XGorry and Scott-Morton grid in decision making and management activities classifiction Operational

Structured

Production Scheduling, Inventory re-ordering

Less structured

Inventory re-ordering

Management

Strategic

Personnel management, Pricing, Financial planning

Budgeting New Product line, Restructuring company

Unstructured

10

Figure 6: Gorry and Scott-Morton grid in decision-making and management activities classification

A business process is developed and various factors are considered traditional and sociotechnical to come up with an IT System to suite the new business process. Azzaz business process was analyzed earlier and the new expanded organization involved some series of re-engineering in order to have a fit all entity with ecommerce, centralized warehouse inventory system as against the manual It systems that existed before now. With reference to figures 1, 2 and 3, it illustrates how the two IT systems were developed into on server information Technology system with access to the existing data from both organization. Figure 2 illustrate the order delivery flow as existing and in figure 3, there is an introduction of online order and delivery and also a warehouse has been introduced with a bigger activities. In order to determine the IT systems to use there was a comparison of the Open source software and proprietary software as illustrated in the open software comparison table with the use of various scales and criteria’s for the comparison. The criteria’s are Cost, Quality, customization, code, flexibility, security, reliability, freedom, market shares, discrimination, interoperability, and maintenance to mention a few. From the research made and from the comparison table, it is a mixed reaction. The proprietary software has some advantages over open source software, but Importantly, it is clear that the open source software has an advantage over the proprietary software because it is generally free, it continually evolve in real time as the as it is being modified, it is secure and not easily bugged it is also problem free. Some example of good open source software that can be used are; Linux, Open office, Libre office, ReactOS, FreeDOS, FreeBSD, Haiku and osCcommerce, to mention a few. The SWOT technique above in figure 4 analyzed Azzaz in order to know its strengths, weaknesses, opportunities and the possible threats to the organization. The strengths and opportunities are more than the weaknesses and threats. The problems were defined in the chart. the chart and it will guide the organization toward the success of the entire operational systems with a view off continual improvement on the business processes. At the point, certain changes will be made on the business processes. Conclusion Starting from the background information and purpose of the study that analyzed various model...