Strategic Information Systems Sungate Foods

Question: Describe about the Strategic Information Systems for Sungate Foods. Answer: Introduction Disk4U is a Sydney based company that sells CDs and Vinyl Records. It is a small family owned business with four outlets spread across the metropolis. Currently, they mainly sell through their physical shop, mail, phone orders and Ebay. This has made it necessary for them to improve their manual processes of accounting and business reporting. Sungate Foods is based in Victoria and produces rice and wild rice, milling up to 80 tons per hour at seasonal peaks. In 2013, it employed a base of 100 staff in the three warehouse locations in Western Victoria and a marketing office in Melbourne, Victoria. It has its rail spur, 250000 square feet of blacktop and equipment necessary for controlling pollution scrubbing 240000 cubic feet of air per minute. Sungate buys from 350 farms, then packages and distributes. It sells domestically and internationally, but its patchwork of ISs and data silos required multiple manual re-entries of each order and financial transactions some up to 10 times wasting time and creating errors. The following report aims at finding a way technologies can be used to improve accounting and business reporting for Disk4U and information systems that can be used to improve Sungates accounting and business reporting operations. Business Processes Definition A business process is a group of linked tasks or steps through which a product or service is delivered to a client (Galliers and Leidner, 2014, p.12) . Certain factors contribute to adding the value of the service or product. These factors can be grouped as management processes and operation processes. Management processes involve the organizations operation system whereas operational processes involve the main business. Sometimes, supporting processes such as accounting are included to support the main processes (Weske, 2012, p.78). In Disk4U, the business process begins at acquiring the CDs and Vinyl Records from a source. After that, the CDs and Vinyl records are distributed to the four outlets across Sydney. They are then sold physically in the shops. However, some of the products are sold via mail and phone orders. This occurs to form the main shop where the products are kept after being purchased from the source. There is also an online channel that has been introduced through Ebay. Products sold on Ebay are also from the main storage where the products are kept after acquisition from the source (Scheer, 2012, p.102). Sungate's business process begins at the source which is the 350 farms they buy from. They then package the rice and wild rice. This occurs in the processing warehouses in Western Victoria. At seasonal peaks, processing reaches 80 tons per hour and staff tops 200 on 24-hours-a-day, seven-days-a-week shifts to manage the milling that processes up to 80 tons per hour. Distribution is then done to the shops and market bases locally where the rice is sold domestically and also distributed to the large offshore markets where it is sold internationally (Trkman, 2010, p.55). Business Requirements Business requirements are the crucial activities of an organization or an enterprise that must be carried out to meet the companys objectives. They include the needs of the customer or client base. It is these requirements that are studies to ensure that the final product of an organization suits customer needs and is achieved while maintaining high efficiency of the company resources. A proper analysis of the business requirements yields multiple benefits to the company since it enables it to communicate to technology such as the ERPs and AISs to find a solution to satisfy the business needs and the customer as well (Peppard and Ward, 2016, p.50) . It also enables the organization to plan for the next phase of a project in the interest of moving forward (Jeston and Nelis, 2014, p.70). Disk4U requires a source for the CDs and Vinyl records. The products can either be single-sourced or multi-sourced each offering its advantages and disadvantages. Single sourcing offers advantages like good quality products. This is because the single source due to the long-term partnership learns the specific needs of the client and is therefore at a better position to provide quality products. In addition to this, due to the nature of the relationship, the client can provide specific demands to the source and can have the needs met. The disadvantage of single sourcing would be that ant problem faced by the source for example in production would cause a devastating effect on the clients who solely rely on them (Pohl, 2010, p.65). Multi-sourcing offers a couple of benefits. One of them is that due to a large number of sources, each of them produces high-quality products to maintain their supply contract with their client since a decline in quality of their products would result in loss of business. Another advantage is that the quality of service delivery is also high due to the competition between the multiple sources. The disadvantage of multi-sourcing is that the quality and type of product is inconsistent owing to the fact that the source keeps on changing. This means that if Disk4U were to acquire their CDs and Vinyl records from their multiple sources and sell them to their customers, it would be hard to track a product that a customer specifically orders again since the sources are different. Furthermore, this could affect branding. In this case, however, it would be highly recommendable for Disk4U to multisource but only from two sources to get the best of both methods. Sungate on the other hand alread y uses multi-sourcing from 300 farms which are ideal for the kind of business they carry out (Hirzalla, 2010, p.102). Another business requirement for both Disk4U and Sungate is a reliable transport system. For Disk4U, the product has to be transported from the source to the four outlets spread across Sydney. Transport is also required for the deliveries made for the phone orders and the online channel, EBay. This means that even the transport routes have to be monitored to ensure consistency in the flow of products from the source to the customer through the outlets. An efficient system has to be put in place to save up on fuel, for example, products being moved delivered to homes should be properly grouped beforehand so that those from a similar location are all delivered together to avoid unnecessary rounds and save up on fuel. For Sungate, the transport of the rice from the source to the warehouses has to be consistent and flowing steadily since a slack in the rate at which the raw material is delivered reflects directly on the rate of production (Quartel and Steen, 2012, p.67). Both Disk4U and Sungate need a marketing and advertisement team. The advertisement team will ensure that the public is aware of the items currently being stocked and this will boost sales. The marketing team should work hand in hand with the advertisement team to ensure that they both push for the same product which will reflect positively in the sales of the company. System Requirements One system requirement is a proper online sales system and team. For Disk4U, it will be too overwhelming for the employees at the shops to also manage the online platform. A system is required to ensure that the orders displayed online are updated and available. Furthermore, the system will enable orders to be obtained immediately they are made and communicated to the relevant group. This will ensure that the flow of materials on the online platforms is smooth and efficient. For Sungate, the online system will observe the global market for their product. This will ensure that the company offers highly competitive prices that will increase the sales for the rice (Katina and Keating, 2014, p.103). Both Disk4U and Sungate need an efficient inventory system. Disk4U requires one that is going to record all sales made from the different platforms since the new online platform could cause major confusion in the sales records. A good inventory system will also enable sales forecasting to maintain the optimal amount of product stocked in the inventory. Through the sales history provided by a good inventory system, both companies will make accurate sales forecasts and proper product planning (ensure the products are properly manufactured or prepare for the end-customers). A proper inventory system will also ensure that the products are properly tracked throughout the delivery process so that a client who calls to inquire maybe about the progress of their order is given an accurate answer which builds customer trust. Sungate requires a system that will track the flow of the rice right from the farm to the packaging to enable the company to keep track of what processes are lagging behin d and why. This will enable the relevant managers of the different sections to be answerable (Sen and Baracli, 2010, p.69). Sungate also has its set of requirements. One of the most important being a reliable source. The rate of production for Sungate is wholly dependent on the rate of flow of rice from the source. They currently source from 300 farms. A proper digital system is required to keep track of how much rice is obtained from each of the 300 farms. This will make it easier in the dissemination of payment to the source and also in keeping track of the quality received from the individual farms. Sungate requires a system that will monitor all the equipment and heavy machinery used to process the rice. The system should be automated so that in case of a technical hitch or damage, the system will know how to manage the issue. This will enable even fewer people to manage the processing of the rice and cut down on the cost of labor. The system should be able to identify common problems such as overheating, high feed rate and power anomalies and effectively inform the operators or handle the matters automatically. At seasonal peaks, processing reaches 80 tons per hour and staff tops 200 on 24-hours-a-day, seven-days-a-week shifts. This is incredibly inefficient as the workforce is fatigued thus affecting their focus rates. A system is required that focuses on the work-force shift periods. The system should be able to develop a timetable that ensures that the 200 staff are fully rested and do not get consecutive shifts. Furthermore, the system should have an alarm system that reminds the workers when their shift is over so that the new shift can come in. This system should also be able to issue electronic IDs to the workers so that whenever a new shift begins, the workforce coming in can swipe their cards and be checked in and out. This will further ensure that none of the employees' works double shifts to enhance efficiency of the workers. A system should also be put in place to monitor the level of pollution. This will make it easier for the pollution control equipment to automatically know the rate at which it will scrub the air. Furthermore, the system should be able to analyze the proportion of pollutes in the air to know how the company can further control the production of those gasses and pollutes. This will help the company find out any alternative materials that can be used to create a more eco-friendly processing procedure. Software selection Software selection is the formal process by which an enterprise resource planning (ERP) system is selected. The current methodologies for selecting the appropriate ERP system include; Kuiper's funnel method, Clarkson-Potomac method, SpecIT Independent vendor selection management and the Dobrins 3D decision support tool (Hou, 2010, p.320). Certain steps can be followed in the selection of a proper ERP system. In this case, we shall follow certain criteria to select the appropriate software. One of those is keeping the budget and resources available. There is a very wide variation in the price of ERP software. Some companies need the advanced functions which are normally a characteristic of the higher priced systems. Other companies,however, may have simple criteria and less complex systems and operations in their companies thus the lower priced systems. In this case, Sungate would seem to require a more complex system but the budget for both companies is similar, a maximum of $150,000. The high price of an ERP does not however mean that it is better than that of a lower price. It is more about the operational procedure of the ERP. Higher priced ones break out into smaller functions thereby being more efficient than a lower priced one used in a smaller company where people involved who mulititask are doing a lot of the extra steps themselves (Howcroft and Light, 2010, p.244). The growth potential of software was another key factor in the selection of software. The software should be able to adapt and cover new fields and requirements as the company grows. This means that once a company grows to a particular level, it doesn't have to resource for another software company but rather the company can go back to the original software company to upgrade their system to fit the new requirements (Ofut and Efendigil, 2010, p.200). The software should also be able to work with the existing hardware whether it is old and outdated or the latest in the market. This means that neither Sungate nor Disk4U will have to encounter heavy costs just to make the software fit the business. Sungate, for example still has a rail spur which is not considered a very modern form of quick form of transport a0nd slightly outdated. The software should still therefore, be able to work with the said outdated' machinery. This is in fact considered one of the most important factors to find one-size fits all system. The software should also be able to be high in functionality. Functionality is the aspect of what the software can do for the user. The software should simply be able to offer maximum support, help and efficiency to the user. It should be able to handle as many aspects as possible of the business of the user (Kaur and Mann, 2010, p.111). Vendor Selection The vendor should have a high track record of performance. The vendor ratings in the international market should be high. The company should have high approval ratings and a good record in their customer care service. The efficiency of the vendor and how fast they respond to customer complaints is a very important factor. In the event of a software malfunction, the vendor should be able to act quickly since the speed at which the issue is rectified is important since it will determine how much loss the company will run (Wu and Olson, 2010, p.34). Experienced second-time buyers of ERP systems ranked level of support provided by the brand seller. This is because sometimes the ease of use of the software might be low and therefore the companies need support and training/ explanation on how to use them even a long time after purchasing the ERP. The providers of the software must also be consistent in upgrading their software and introducing new features and stay updated on new feature releases in the global market (Hsu, Wang and Tzeng, 2012, p.33). The vendor should also be high in liability. Since it's the quality pf performance of the product from the vendor that the functioning of the company depends on, its only commonplace that they can take responsibility for the loss incurred. There should be proof that they have done it before. It is a matter of insurance and also increases the trust from the clients that the product being sold is of high quality (Azadeh and Alem, 2010, p.50). The vendor should also be involved in many other aspects of the business. Due to the integrative factor, it is important they be providers of software for other surrounding fields in the business. For example, a proper vendor for Disk4U should also be in the business of creating software that can be used to burn images to the discs and vinyl records so that incase Disk4U decided to start selling music, they can start a data transfer branch that deals with storing information for clients onto the CDs and vinyl records (Go, Yuh and Lin, 2012, p.72). The vendor should also be a accompany that has a wide international reach. This means that they should range of where their branches are located. This is so that when the company opens branches in other countries. They will still be able to offer support to the company. The vendor should also have a high rating and reputation in other countries so that their functions are still able to smoothly integrate with say for example, major Internet providers in other countries. The vendor should also be considered an active developer in the field. They should be leading in inventions and new gadgets that are supported by the software. Sungate for example needs a vendor that is leading in producing folk lifts and machinery that is supported by the software. This will ensure that the company is also considered as a company that keeps up with current standards in the world trends. If something happens and the company has to change the vendor, it is important that the vendor be able to gracefully hand over operation to another vendor. This is almost like uninstalling a programmer. Every computer user tends to lean more onto software that uninstalls easily and in a clean manner without causing harm to the computer. Conclusion With all these functions considered, the best ERP for Diskt4U would be Microsoft Dynamics. This is because of their complete solutions that offer functions such as Microsoft Excel that is widely used for business reporting. 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