A proposal for a modern information system that will improve efficiency in WalnutTreeFoods (WTF) Company
Introduction
In this modern era we are living in, organizations are utilizing their capabilities to enhance them to survive in the competition new century global market. Therefore, organizations are attempting in all the means to ensure they are alert to the latest technology (Laudon & Laudon, 2011). This has resulted in organizations adopting new management information systems to help them to polish their activities to be more efficient and effective. The organization that still use the traditional method in their operation are facing strong competition from organizations that are using modern technology. Due to the failure of WTF to invest in modern information technology, it has affected them as they can’t be able to handle their competitors who are ahead of them in terms of technology. This has led to poor customer engagement resulting in loss of customer loyalty and many more negative consequences.
In order to bounce back, the organization needs to substitute the manual systems they use. This is because it can’t match the demand in this modern era. A more advanced modern distributed information system that will ensure all the activities in the organization are effective and timely should be adopted. The new system should consist of all the latest technology, such as the capability to be integrated into other systems and services. This new system will enhance effective and timely decision making by facilitating better planning (O’brien & Marakas 2011). Therefore, this system should be able to improve customer engagement and loyalty, drive increases to sales, and introduce new services that cater to target demographic, improve the accuracy of financial reporting, and ultimately improve profitability. An organization can operate manually and still achieve its goal, but to be able to compete in the market, an organization like WTF needs to invest in a modern information system that will improve its efficiency leading to an increase in sales and ultimately improving profitability. The new system WTF need to adopt has the following capabilities:
Analysis
The new system will be a distributed information system that will ensure that all the information from all branches in the region is available at the headquarters promptly. Since the system will be a distributed system, the central server will be located ate the WTF headquarter. All the data that is entered in every point will be stored in this server. All the employees in the organization will be required to be generated personal credentials that should not be shared. These credentials will help the employees to log in to the system to access the module in the system. The module the employee will access will be determined by the role of the employee in the organization. For instance, the CEO of the company will be allocated the role of accessing almost all the modules in the system since he/she needs to follow up on all the activities in the organization. The manager and other key employees, like accountants at the headquarter, will be able to log in and access the data in all the branches located in different areas in southern California without having to wait for the data to be compiled manually and brought to the corporate offices like in the current manual system. This will ensure the timely delivery of information.
The new system will improve the accessibility of services. This system will be web-based and will also comprise of a mobile app. The app will be installed on the customer’s phone and even in the employees’ phones if need be. The app will be able to conduct all the activities that can be achieved through the web using a mobile phone. This will enable the customers to easily access the services offered by WTF and even order products in remote areas.
The proposed system will have a lot of impact on the reduction of cost of production in the company when the new system will be introduced. The amount of money used to pay the large number of employees employed to conduct manual works that can be substituted by the introduction of the system will be saved. The system will also replace paperwork as the system runs almost 99% paperless. The money that is used to purchase a large number of papers, files, and financial booklets will, therefore, be used in other activities.
The new system will ensure timely decision making. Since the system will facilitate the timely delivery of information from different departments and also from the WTF branches in all locations, the process of decision making will be efficient (Tripathi, 2011). In the current manual system, the decision making was slow as the information took a lot of time to reach WTF headquarters. For example, in the current manual system, employee performance is recorded in a word template that never reaches the headquarters; the customers’ demand and suggestions are never taken seriously by they are presented to cashiers who never present the demand at the headquarters. This new system will have a platform where customers’ suggestions will be posted in the app or on the website. This will be very crucial in engaging customers in improving services. Once the customers suggest or demand is posted, it will be received directly in the headquarters. This will ensure the management is aware of customer demand and can make the required timely decision to meet the customer demands, which will be an advantage in retaining customer loyalty.
The new proposed system will ensure accountability in the organization. All the employees using the system are provided with login credentials. The credentials are accompanied by the designation of the employee and all other essential information. This will be very crucial in the case of follow-ups in the organization. The system records who did what, when, and where and this ensures that every employee is responsible in the organization. For example, the system will record the cash collected at any cashier point and the name of the cashier who received the cash. In case the cashier report fails to balance the specific cashier will be answerable. The managers will also be able to know who is designated to what point and how he or she is performing. This ensures the managers can easily detect underperforming employees who can be relocated to less demanding positions or even be fired. Due to these effective follow-ups, the company will avoid a petty issue like underperformance of employees and loss of money in a mysterious way that can’t be traced. This will curb the losses that can’t be traced by the current manual system and will boost in improving profits.
Modernized Inventory management
The new proposed information system provides well-organized modules for inventory management. In WTF Company, the store is the key department that should be well managed if the company has to achieve its goals. Hence I was focused on this section when I was searching for a system that will transform this company. The company solves the current problem faced in inventory management through;
Ensuring that every activity in the store follows the right protocol. The system has the main module labeled “WTF store.” This module then has sub-modules performing specific functions. The system has a module under the store module where all the resources in every department in the WTF branches are recorded. The store manager manages this module in every location where WTF operates. There is then the main store module where the resources from every branch are updated after they are entered in the WTF sub locations/subsidiaries.
When an item breaks down or disappears in the department, it is recorded. When a new item is purchased, it is directly recorded at the headquarters department of procurement before distributed to the intended locations where they are then distributed to various departments. This helps in tracing items that are broken or worn out to prevent shortages in every area, which is difficult to achieve through the manual system currently being used.
However, the primary focus should be on the store arrangement and stock management in the store. When the products for sale are received in the store, a clear procedure of recording and storing should be followed as structured in the system (Chen et la., 2010). In this case, when items are received in the store, they are recorded under submodules in the main store module. The items are grouped according to the category of items and all essential details keyed in as provided by the system. Every item that is withdrawn from the store should also be recorded in the system and the destination the item is taken recorded to. When the item is purchased physically in the brick and mortar store, it is mandatory to issue a receipt as this helps subtract the item sold from the databases. This is essential as it helps in monitoring the sales and the product in the store. This will help WTF to be aware when the store is running out of stock and restock if necessary. Hence there will be no time the company will run out of stock unknowingly as it is experienced in the current manual system.
To ensure no confusion is experienced in the store, all the items purchased online should be retrieved directly from the store. This will ensure the item is procedurally subtracted from the system for clear recording. Since the products are automatically posted on the system website and mobile app there store manager should ensure proper keying of items in the system. The store module will also have a virtual image of the store arrangement representing how the physical store is arranged. This will be of great importance as the new employees in the store will quickly learn how the store is organized, and it will be easy to retrieve items. To be able to see the trend of the stock clearly and promptly, the store module will have a graph showing the level of the remaining stack of various items according to the way they are categorized. These graphs will be changing colors with each color signaling a different massage. For example, the red color will be indicating the stock need to add as little stock is remaining. This will ensure there is no time our customers fail to find the items they want to purchase in WTF, which will help us gain customer loyalty that is depreciating.
Integration advantage
The new proposed system will encourage integration with other systems and services. The integration of systems is essential in improving performance and service delivery (Bothos, Apostolou & Mentzas, 2012). For example, in this new proposed system, the will be able to be integrated with other systems that will be in use or which will be later adopted to improve performance in the WTF company to meet its goals.
I am also planning to propose a biometric system in the company that will be monitoring the working hours of employees. I proposed the new information system to be able to integrate with other systems by following steps that are not much complex.
For instance, in case of a biometric system being adopted to which I am convinced it should be approved, the two systems should work together. The employees will be using the biometric system to log in using their fingerprints. Since the two systems will be integrated, the information system will detect the time the employee logged in and the time he/she logged out. This will be very crucial when it comes to the payroll generation of employees who are paid per hour as it will be easier and more efficient as the hours will be generated automatically by the system without having to use the manual method like it is done currently. This system will also help in counting overtime for the workers. The two systems will work together to identify employees who abscond from duties as when the employee logs in or out regardless of the place of work the managers will be able to see the number of employees of having logged in or out, and a report can be generated too. This will avoid the cases where the company pays the employee the hours they have not worked for, hence saving that money for other activities.
When it comes to the mode of payment, integration plays a significant role. The system that I have proposed provides several modes of payment, such as mobile money, paying through bank accounts, cash, and other online payment platforms. For the cash mode of payment, integration is not needed. But in case of paying through mobile money or other online platforms, integration is required. The system will be integrated to accept these modes of payments, which will be of a significant step in outweighing WTF competitors. Introducing these new services will be an added advantage to our affluent customers who are ahead in technology.
In case a customer wants to order a product, for example, using the system app in his or her mobile phone, he or she will open the app, he will search using the item name, for example, fresh tomatoes or browse until he or she gets the item needed. He or she will then select the required unit, e.g., 5kgs. The customer will then be guided to order the item by clicking the order button. The customer will then select the mode of payment from a drop-down box presented to pay for the item. When for example, the customer chooses to pay via PayPal, he or she will receive a pop up from Papal asking him/her to enter the pin to pay a given amount to WTF Company. When the pin is entered, the customer will be notified by a pop up on the screen that the order was successful. The order will be received in the company, and the customer will be informed of the time the order will be delivered. This is how the integration will be essential in improving the company’s services. This will also play a vital role in improving sales as the customers who were reluctant to visit the WTF brick mortar stores due to the long queues can purchase their items without having to visit the store physically.
Customer loyalty programs
The system proposed has a customer loyalty program to ensure WTF rewards its customers in order to keep customers and attract more. The system is capable of producing a code that helps in adding points to customers depending on the amount he or she spends shopping in WTF. The customer is registered if he/she is not using our online services. Once the details of the customer are entered, the system then generates a code that is printed in a portable card. When the customer shops and went to the cashier to make the payment, he or she produces the card which is scanned to add the customer points according to the amount spent. Those who purchase products online are awarded points directly as they register before using online services. The company then will set the winning points and the present, respectively. This will attract more customers to WTF as they will feel appreciated.
The system also provides specials services for those who physically access our brick and mortar store to purchase items. This is achieved by offering unique methods of purchasing service items like Deli, juice bar meat, etc. This method is referred to as “special physical service” but only applies in WTF physical shops. The service enables customers to use the system app in their mobile phone to order an item and the notified on a specific place to collect their order once processed. This ensures the customers are not delayed in the shop, and it will likely attract many customers, especially those with tight schedules.
The system provides the platform for the company to give discounts to its customers. The system is programmed such that it can automatically provide a discount of a given percentage in every category of the brand or services. This can be achieved by just clicking on the rate of discount in the discount section, and the system generates the new cost of the item automatically. The duration of the discount is also set, and when time set expires, regular price resumes. Only the senior manager of WTF can be assigned this role of giving discounts. All these programs will enable the company to gain customer loyalty and compete with its competitors like Amazon.
Financial Analysis
From last year’s financial report, the company spent $151.4 million to pay its 2750 workers. The total cost of production for last year was $3.2 billion, and the total sales for last year were totaling to $ 4 billion. From the report, WTF made a profit of fewer than one billion dollars last year. With the adoption of the new system, the number of employees is targeted to reduce, and the company would spend around $80 million to pay its less than 1500 employees. The total cost of production will be expected to drop by about 40%. With the new system, the company will be targeting sales rise to around $6 billion in the first year of adoption. The net profit is targeted to rise with about 60% in the first year of adoption and continue rising in the future. This new system will reduce the budget of production in the organization, increasing profit in the organization.
Financial reporting efficiency
As it is experienced in every successful company, comprehensive reporting plays a significant role in the success of the company. I am convinced that the new proposed system will solve all the challenges experienced in WTF on financial reporting. This is because the system presents a well-organized reporting process. The system consists of a module of reporting. This module is then broken down into several types of reports that can be required in any competitive company. The employees who are responsible for generating reports like an accountant are the only ones given the role of accessing the module. Managers also are granted the role of the monitoring process. This reduces the chances of modification of the reports.
In this proposed system, the reports will be generated automatically by the system. This will be possible as the data of all transactions in all the branches of WTF are stored in one server located at the headquarters. Hence the report of all departments can be generated from the corporate offices without having to wait for the reports to be generated in the specific location then compiled and sent to headquarters. The reports in this proposed system can be generated in several formats like a word document, excel, pdf, etc. This will reduce the tiresome work of generating the report manually, which is time-consuming and risks a lot of error occurrence. Since the reporting will be generated automatically, the daily, weekly, monthly, and annual reports can be easily retrieved, helping the organization to plan per the performance of the company.
The system is complete and does not need any additional system on reporting. The system can produce any kind of report that can be needed in the company because all the departments are using the same database; hence no need to bring other systems that may compromise the reporting in the company. This reporting effectiveness in this system will ensure proper budgeting as the finance report will help in indicating where more or less budget should be allocated. This is clear proof that the system will be of great advantage to the WTF company as it will improve the accuracy of financial reporting, which has not been achieved by the current manual system.
Although the proposed system does not comprise marketing of WTF brands, the company should have a website and also join social media platforms like Facebook, Twitter, Instagram, etc. all these will help in marketing the company and its brands. The website will give information about the company for the new customers who will be interested in company services. Information like company location and contact is essential and can be widely distributed using a well-organized website. Social media platforms have turned out to be one of the most marketing platforms. Hence joining social media will ensure WTF brands are widely recognized, which will attract more customers leading to an increase in sales.
Although Instacart has approached WTF to help facilitate the delivery platform, I don’t think we require their services as our system also provides an app that enables our customers to order services, and we deliver to them. Instead of going the Instacart way. The organization needs its system that will not involve profit sharing with any party.
Conclusion
In conclusion, management systems are paramount in every organization that has the intention of achieving its goals in the modern era. For WTF to improve customer engagement and loyalty, drive increases to sales, introduce new services that cater to your target demographic, improve the accuracy of financial reporting, and ultimately improve profitability, an advanced distributed management system should be adopted.
Through the various customers’ loyalty programs facilitated by the proposed system such as a point-earning after every purchase and providing a platform where customers can be given discounts will make the customers feel valued and will be loyal to the company. The new system proposed ensures products and services are readily available and easily accessible. This is facilitated by promoting online shopping that can be achieved through the use of a mobile app, even in remote areas. This will increase sales as customers can purchase products from home and be derived. By the introduction of advanced methods of payment, such as PayPal, the targeted customers will be saved the burden of having to carry cash whenever they want to shop at WTF. The new proposed system has excellent reporting protocol; this will be of much importance as WTF has struggled in achieving efficiency in reporting since the manual system used is wired.
The new system seems to be the solution for the WTF Company. WTF has the solution to compete with its competitors like Amazon. The proposed system is capable of reducing the cost of production, ensuring the systematic flow of information from one department to the other, and also from WTF branches to the headquarters. This ensures efficient follow-ups of all activities. I would recommend WTF to consider adopting this system as soon as possible and also to consider other advanced technologies to be able to compete in this modern era of advanced technology.
References
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Chen, D. Q., Mocker, M., Preston, D. S., & Teubner, A. (2010). Information systems strategy: reconceptualization, measurement, and implications. MIS Quarterly, 34(2), 233-259.
Laudon, K. C., & Laudon, J. P. (2011). Essentials of management information systems. Upper Saddle River: Pearson.
O’brien, J. A., & Marakas, G. M. (2011). Management information systems (Vol. 9). McGraw-Hill/Irwin.
Tripathi, K. P. (2011). A decision support system is a tool for making better decisions in the organization. Indian Journal of Computer Science and Engineering (IJCSE), 2(1), 112-117.