SWOT Analysis is a tool used to place the internal strengths and failings and external chances and menaces environment of Aalsmeer Flower Auction. Table 1 below shows the strengths and failings within the company, and the chances and menaces faced by Aalsmeer Flower Auction.
1.2 Information Requirements
The board of Aalsmeer Flower Auction requires an information system that could assist to back up its e-business activities.
It is of import for the company to see information systems as a set of engineerings that will back up efficient concern operations, work groups and enterprise coaction in order to success ( O’Brien & A ; Marakas, 2008, p.44 ) . Hence, the company needs to cognize the information demand in order to put up an electronic auction market.
Hardware and package are the chief information demand. It is use to execute input, processing and end product activities of the concern. Once the hardware and package are installed, the company needs to see whether the terminal users familiar with the system and understand how to utilize the system. Beside that, the company has to guarantee that users security when utilizing the system. For blink of an eye, when purchasers make their on-line payment, they make certain that their recognition cards are safe and can non be hack. Furthermore, care of the system is of import information that the company needs to cognize in order to maintain the system operational. ( Scribd, 2011 )
2.0 The New System and Aims
2.1 Cross-Functional Enterprise System
An endeavor system is indispensable to an organisation to guarantee information can be shared across all concern map ( Stair & A ; Reynolds, 2008, p.220 ) . Aalsmeer Flower Auction may develop an incorporate cross-functional endeavor system that cross the boundaries of the traditional concern and organisation maps ( O’Brien & A ; Marakas, 2008, p.250 ) . The intent of this system is to reengineer and better vital concern processes all across the endeavor ( O’Brien & A ; Marakas, 2008, p.250 ) .
Besides that, cross-function endeavor system is view as a strategic manner to portion information resources and better the efficiency and effectivity of concern procedures, and develop strategic relationships with clients, providers, and concern spouses ( O’Brien & A ; Marakas, 2008, p.250 ) . This system are integrated by endeavor resource planning ( ERP ) , supply concatenation direction ( SCM ) , and client relationship direction ( CRM ) . The company will be besides utilizing the World Wide Web and their intranets and extranets as a engineering platform for their cross-functional and interenterprise information system ( O’Brien & A ; Marakas, 2008, p.250 ) . With this system, it enables the company to carry through its aims.
Enterprise Resource Planning ( ERP )
Enterprise resource planning ( ERP ) is an integrated computer-based system designed to incorporate and automatize many internal concern procedures and information flows within the company such as incorporate logistics, production planning, accounting and finance, gross revenues distribution and human resource map of the company ( ERPChronicle.com, 2011 ) .
The cardinal aim of an ERP system is to incorporate information and position real-time of its nucleus concern procedure from all functional divisions of the company in a individual database ( TopBits.com, 2011 ) . All information is flow from one system to another automatically with no repeat of entry and therefore providers, clients and other concern spouses can entree to current and consistent informations ( Accurate, 2005 ) .
With this system, the company can cut down the dealing costs. Runing more efficient and effectual operation like production direction, supply concatenation and client relationship direction into one streamlined procedure where everything can be accessed through one endeavor broad information web, and heighten direction determination devising ( ERPChronicle.com, 2011 ) . After implementing ERP system, the company can transform the manner they conduct their concern and therefore accomplishing the initial aim of the e-business activities.
Supply Chain Management ( SCM )
The implementing of supply concatenation direction ( SCM ) system is to make a demand driven organisation by linking an widening value concatenation, streamline traditional supply concatenation procedure and extinguishing non value added activities ( CiteMan Network, 2008-2011 ) . Increasingly, SCM is accomplished utilizing the cyberspace and electronic market place to reengineer and streamline traditional supply concatenation procedures ( Stair & A ; Reynolds, 2008, p.26 ) .
The aim of SCM system is create client value taking to increase organisation profitableness, stockholder value, and sustained competitory advantage in the long tally ( MBA Knowledge Base, 2011 ) . Besides that, SCM is to assist the company achieve legerity and reactivity in run intoing the demands of its clients and demands of its providers utilizing a fast, efficient, and low-cost of web concern relationships or supply concatenation ( O’Brien & A ; Marakas, 2008, p.315 ) . In the long tally, the initial aims of the e-business activities to redefine the value concatenation to cut down dealing costs accomplished.
Customer Relationship Management ( CRM )
To assist the company to present an first-class client functioning procedures in gross revenues, selling and merchandise service, client relationship direction ( CRM ) system is recommended ( O’Brien, 2002, p. 130 ) . The chief aim of this system is to construct and keep valuable relationships with the clients, to increase net incomes and go more competitory ( Exforsys, 2000-2011 ) .
CRM system will capture cardinal client informations and enable the company to utilize that informations efficaciously at each phase of the client relationship ( Customer Connect, 2006-2009 ) . In the gross revenues procedure, CRM tracks client contacts for cross-selling and up-selling ( O’Brien, 2002, p. 130 ) every bit good as translate the sales representative ‘s accomplishments into institutional cognition ( Customer Connect, 2006-2009 ) . Besides that, CMR helps the company to program and put to death the selling attempt expeditiously ( Customer Connect, 2006-2009 ) . Furthermore, CRM helps client service directors rapidly create, assign and manage service petitions ( O’Brien, 2002, p. 130 ) . In short, CRM system helps to pull off the concern efficaciously, cut down costs and back up a entire client attention.
2.2 Information Schemes
To obtain major advantages over the competitory forces it faces in the planetary market place, strategic information systems are required and the usage of cyberspace engineerings are indispensable to derive competitory advantage.
2.2.1 Cost Leadership Strategy
Cost leading scheme concerned with presenting the lowest possible merchandises and services. The company can assist the providers and client to cut down their costs such as dealing procedure, warehousing and transporting costs by implementing on-line auction and online ordination.
Internet is the primary information engineering substructure that supports e-business applications ( O’Brien & A ; Marakas, 2008, p12 ) . Aalsmeer Flower Auction can utilize an electronic auction web site as information scheme to link purchasers and Sellerss from all over the Earth. Trading on the cyberspace allows the company to make a larger figure of possible clients and providers in a shorter clip and making clients for a low cost per minutess ( Kumar and Feldman, n.d ) .
Web auction is easy to utilize. It allows million of purchasers to take part in the unrecorded auction which occurs around the universe at the same clip via online without go toing in the auction hall. Buyers will experience convenience and it is the fastest manner to do their command. There is besides an car command purchasing method, where it benefits for purchasers who have no clip to take part in the unrecorded auction ( FlowerBuyer.com, 1995-2011 ) .
The company can implement an online telling which change its traditional manner of selling. Online telling allows clients to put their order through web site. With this service, clients are able to do their order anytime because the website provides 24 hours. Besides that, cyberspace enables Aalsmeer Flower Auction to showcase all the merchandises and supply up-to-date information to clients. In short, on-line auction and on-line ordination can well take down costs, cut down lead times, and better the quality of services provided.
2.2.2 Differentiation Strategy
The company is said to hold competitory advantage when it delivers different merchandises or services from its rivals. Aalsmeer Flower Auction could supply an on-line client design, where clients are allowed to hold more option and chances to custom-make based on their ain penchant.
Buyers can purchase the clump which allows them to order in smaller measures. There are some advantages of purchasing in smaller measures. First, retail merchants can entree to a broad assortment of fresh merchandises all the clip. Second, retail merchants can purchase often and necessitate several assortments in little volumes. At the same clip, they have flexibility to blend and fit any merchandises they like, and take the coloring material they wish to hold. ( FlowerBuyer.com, 1995-2011 ) Besides that, purchasers can besides choose the clip agenda when they want to do their bringing. These have satisfied client gustatory sensations which they wish for freshman merchandises, more assortments, smaller measures and multiple bringings each hebdomad.
In add-on, on-line dealing processing system plays a strategic function in electronic commercialism. The company can utilize cyberspace that tie them electronically to their clients and providers for on-line minutess processing ( OLTP ) . In on-line processing, informations are processed instantly after a dealing occurs, which will assist to supply superior service to clients and other trading spouses. ( O’Brien & A ; Marakas, 2008, p.256 ) With this system, company ends can be reached. Reducing dealing costs, running more efficient and effectual operation, add value to their merchandises, and give them an importance manner to distinguish themselves from the rivals.
3.0 System Development Methodology
A system development methodological analysis refers to the model that is used to construction, program, and command the procedure of developing an information system ( Centers for Medicare & A ; Medicaid services, 2005 ) .
3.1 System Development Life Cycle ( SDLC )
One method of utilizing system attack to develop information system solution is system development life rhythm ( SDLC ) . The waterfall theoretical account is one of the methodological analysiss that the company can pattern.
Diagram 2: The waterfall theoretical account
Beginning: Startvbdotnet, 2004-2010
3.1.1 System Investigation
The systems probe phase requires the development of feasibleness survey, which assesses proficient, economic, legal, operation and agenda feasibleness ( O’Brien & A ; Marakas, 2008, p.449 ) . Feasibility survey is used to prove the proposed system, run intoing user ‘s demands, and effectual usage of resources and cost effectivity ( Scribd, 2011 ) .
Technical feasibleness concerned with whether the hardware, package and other system constituents can be required or developed to work out the job. Economic feasibleness is the most of import survey that determines the cost and benefits of the proposed system makes fiscal sense. If benefits are found to be more than costs, so the analyst decides to go on the development of the proposed system otherwise considers it economically non executable. ( MBA Knowledge Base, 2011 )
Legal feasibleness determines whether Torahs or ordinances can forestall or restrict a systems development undertaking. Legal feasibleness involves an analysis of bing and future jurisprudence to find the likeliness of legal action against the systems development undertaking and possible effects ( Stair & A ; Reynolds, 2008, p.351 ) .
During operational feasibleness survey, it is determined whether the system will run in the manner that user wants. It depends upon human resources whether the qualified and experient work force is available for the development and execution of the system. Furthermore, agenda feasibleness determines whether the undertaking can be completed within the clip frame. If it takes excessively much clip it is likely to be rejected. ( MBA Knowledge Base, 2011 )
3.1.2 System Analysis
Diagram 3: The jobs work outing stairss
Define and understand the job
Develop alternate solutions
Choose the best solution
Implement the solution
Beginning: Laudon and Laudon, 2009, p.372
Define and understand the job
One of the jobs faced by Aalsmeer Flower Auction is that they are still utilizing the traditional manner which is floricultural value concatenation to sell flowers and workss to clients. The company has to remain competitory align with the outgrowth of alternate, electronically driven flower markets.
Besides that, the company has to roll up and arranges all the flowers and programs, and gathers all providers and purchasers in the auction hall before auction can take topographic point. This method of making concern is really dearly-won and clip consuming. Furthermore, retail merchants request for freshman merchandises, more assortments, smaller measures and multiple bringings each hebdomad in order to fulfill the changing of clients gustatory sensations, therefore the demand have more influence on supply. The company must respond to these alterations to back up its concern procedures and to link with providers and clients, therefore altering from traditional manner to an electronic manner to merchandise flowers and workss.
Develop alternate solutions
After finding the jobs, the following measure is to develop alternate solutions. The alternate solutions put frontward to work out the jobs is to streamline the bing procedures that rely on manual processs, custom-build a package utilizing Microsoft Access or implement an on-line dealing processing system.
Choose the best solution to be implemented
The company so must take the best solution. If the company would wish to take the first solution, nevertheless, if given a big Numberss of flowers and workss orders, every bit good as relationship with makers and shippers, redesigning and streamlining a manual ordination and bringing procedure would non hold provided many benefits.
If the company would wish to take the 2nd solution, the disadvantage is clip devouring, expensive in footings of the scheduling costs plus the purchase of hardware, package and networking equipment to run the system and associate it to the Internet. Although it is really dearly-won, but it is utile utilizing the Microsoft Access because it can provides a fast and accurate informations when the Numberss of orders are taken.
If the company chooses the 3rd solution which is utilizing the on-line dealing processing system that provides templets and tools for making simple database system in really short clip, provides the hardware for running the application and web site and can be accessed by many different users over the web.
After finding the advantages and disadvantages each of the alternate solutions, the 3rd alternate solution is the most executable and best solution that the company can use.
3.1.3 System Design
The intent of system design is to make a proficient solution that satisfies the functional demands for the system ( NYS undertaking direction guidebook, n.d. ) . A information flow diagram ( DFD ) is being used to demo the flow of informations through an information system ( iReference, 2008-2011 ) . It consists of four constituents, they are procedures, informations shops, external entities, and informations flows. Diagram 4 below illustrates the informations flow diagram of an online telling system that the company can use.
Diagram 4: Datas Flow Diagram ( DFD ) for an online ordination system
Verify Order Item Data
Print bill and transportation list
Invoice and transporting list
Order Processing Department
Data Flow Diagram Symbols:
Beginning: Google physician, 2011
In procedure 1.0, client item and information are collected and store as member file. After verifying member ‘s information, procedure 2.0 will verify the order points that clients have selected. It so shops the order points information into points file. Besides that, procedure 2.0 will besides updates all the validated orders and shop as day-to-day order. Last, in procedure 3.0, the orders are ready to publish out the bill and transportation list. All the bill and transporting list will than base on balls to the order processing section to print and subsequently transport the merchandises to clients.
3.1.4 System Implementation
A few undertakings need to be completed before the system is installed and ready to run. The system execution phase involves hardware and package acquisition, proving of plans, transition of informations resources and preparation. ( O’Brien & A ; Marakas, 2008, p.464 )
Geting hardware and package
To obtain the constituent for an information system, Aalsmeer Flower Auction needs to buy the new system, computing machines and networking hardware. It besides needs a computing machine plan that governs the operation of the computing machine ( Scribd, 2011 ) . When geting the package, it needs to do certain that the application package is supported by the hardware.
Testing of plans
System proving may affect proving and debugging package, proving website public presentation, and proving new hardware ( O’Brien & A ; Marakas, 2008, p.472 ) . Several signifiers of proving should be used, including proving each plan ( unit proving ) , proving the full system of plans ( system proving ) , proving the application with big sum of informations ( volume proving ) , and proving wholly related system together ( integrating proving ) , every bit good as carry oning any trials required by the user ( acceptance proving ) ( Stair & A ; Reynolds, 2008, p.367 ) . When all directors are satisfied the new system meets the criterions, the dealing processing system is accepted for installing.
Data transition involves doing certain that all files and databases are ready to be used with new computing machine package and systems ( Stair & A ; Reynolds, 2008, p.366 ) . Direct scheme is used. This scheme is the simplest transition scheme which replaces the old system with the new system.
The company needs to see whether the terminal users are have the appropriate accomplishment and experience to utilize the new concern system. There will be an on-line pattern country with measure by measure direction usher for user to pattern come ining informations into the system.
3.1.5 System Maintenance
Care is required after the installing of package that is performed to maintain the system operational ( Freetutes.com, 2007-2011 ) . System care involves look intoing, altering, and heightening the system to do it more utile in accomplishing usage and organisation ends ( Stair & A ; Reynolds, 2008, p.367 ) .
The organisation ‘s database must be maintained so that information updated and mistakes can be eliminated in the system. Consequently care enables users to utilize the system more efficient and more effectual. Other sweetenings include capablenesss for paying for orders more quickly, and come ining the orders information without waiting for a specified starting day of the month.
4.0 Impact and effectivity of new system
Changing new manner of making concern to an e-business with the execution of new information system, Aalsmeer Flower Auction ‘s aim can be achieved easy. The impact included conveying new chances and competitory advantages, pull offing concern alterations, cut downing dealing costs for long term period, increasing market portion, and beef up the nexus with jobbers and retail merchants.
The company addition competitory advantage with the development of web site to merchandise the merchandises via cyberspace comparison to their rivals who do non offer this service. This new manner of making concern allows the company to make globally. Thus, addition market portion of Aalsmeer Flower Auction. Besides that, the company besides can beef up the customer-supplier relationship.
With e-business, the company does non necessitate a big warehouse infinite to hive away the flowers and workss, hence, cut downing dealing costs. However, the company is holding a high investing because they need to buy new system. The organisation is besides confronting a high hazard due to the first clip puting up the new system and afraid that the system does non work good.
With electronic system of making work, information can flux easy, straight and quickly from purchaser to seller because electronic connexion and communications are already set up ( Scribd, 2011 ) . The direction has the effectivity of utilizing the computerized to cut down the paper work load as good. All studies, payments, and bills can be printed out easy from the computing machine. The paperss besides can be done in a systematic manner and organized the work loads efficaciously. The studies besides can be generated and updated automatically by the system in every hebdomad.
Following this, the effectivity of utilizing the computerized is to assist the direction to bring forth planning with a fastest manner. The direction foremost needs to calculate the client ‘s demand and forecast orders. After calculating, they must be after how many measures of flowers and workss to order from the providers in order to acquire adequate measures. As a consequence, all the information from the computing machine comes out with the easiest and accurate informations.
Employees in Aalsmeer Flower Auction now have to follow the new manner of making concern by utilizing internet engineering. However, this is the first clip of trading in Flower Auction so it is possibility that employees do non hold the required cognition about e-business. E-business required skilled people and have knowledge about information system so that the organisation can run successfully without failure. Therefore, employee preparation and development plan is necessary. ( Scribd, 2011 )
Although the company will confront a high hazard due to the first clip puting up new system, providers, clients and employees will profit from the new information system. With the usage of information engineering and new system the company manages to boom with today ‘s extremely competitory and dynamic concern environment. Buyers can easy do their command and order online. Suppliers no longer need to transport their flowers and workss to the auction hall as the images of the flowers and workss will be display in the cyberspace. And in conclusion, Aalsmeer Flower Auction still plays their function as market go-between. ( Scribd, 2011 )
Sze Sook Teng
( IT Consultant )
( Word count: 2994 )