Information Technology and Supply Chain Management of Phab Expansion - Report Example

REPORT ON THE INFORMATION TECHNOLOGY AND SUPPLY CHAIN ELEMENTS OF THE EXPANSION OF PHAB Contents INTRODUCTION 3 CRITICAL SUCCESS FACTORS 3 Where We Are Now 3 Where We Want to Get 4 Gap Analysis 4 IMPLEMENTATION CONCERNS 7 eCommerce Systems 7 Courier & Delivery System 8 Growing Online & Integrating Retail Stores 8 E-Commerce Payment Integration 9 Enterprise Resource Planning System Implementation in Phab 9 ERP Architecture 10 Data Control and Protocols 10 Stakeholder Information Needs 10 CRM 11 Supply Chain Management 11 Executive Support System 11 International ERP Implementation 11 Open Source V Closed Source 12 Actual Implementation and Issues 13 Reflective Report 14 Bibliography 15 INTRODUCTION This report provides a critical evaluation and review of the proposed change and expansion of Phab, a UK based mobile and computer retail shop that is embarking on a major expansion drive. This report will critically review the features of Information and Communication Technology as well as the Supply Chain Management issues that are relevant to the expansion. The report will identify key issues that the owner, Ogonwe needs to be sensitive to and provide logical recommendations on how to optimise resources and attain the best results in implementation CRITICAL SUCCESS FACTORS From the facts of the case at hand, it is important to identify the main issues by conducting a gap analysis which is a strategic management tool that is utilised in reviewing and analysing features of strategic change (Johnson, et al., 2012; Bush & Coleman, 2013). Where We Are Now This is the part of the analysis which shows the current situation of Phab and gives an insight into the current situation and its strategic implication (White, 2012). Phab is a highly disintegrated organisation that is on the verge of reorganisation to achieve the optimal results. Based on that, the following pointers are identifiable: 1. The Phab Brand is used to run 3 shops that are specialised in smartphones, tablets and phablets; 2. Ogonwe has purchased 8 Networkz shops that are specialised in a completely different line of business – mobile phone markets, networking kits, mobile services and products for UK carriers; 3. Two out of the Networkz shops are located in Norway and there is a chance to enter the European markets through these two foreign shops 4. Ogonwe is on the verge of purchasing a new warehouse in North East England to open an eCommerce outlet for the company Therefore, it can be identified that there are three actual or potential business lines that Ogonwe’s group of businesses control; (1) The traditional smartphone and mobile phone sales market (2) the mobile service and networking processes and (3) eCommerce services to be commenced. Where We Want to Get The second phase of the strategic analysis should be one that shows the end the firm seeks to achieve based on the current realities (Ansoff, 2013). From the facts of the case at hand, there is the need for a reorganisation of the corporate entity of Ogonwe in order to ensure efficiency in the different lines of business and coordinate affairs in the group to achieve optimal results. In doing this, the following pointers must be brought to the fore: 1. Merger of the operations of the Phab’s smartphone, phablet and tablet services with the mobile marketing and operations of Networkz’ mobile service delivery processes within the new Phab shops (which includes the Networkz shops); 2. Successful introduction of eCommerce services to complement the Phab shops and other allied shops; 3. The internationalisation of Phab’s operations to ensure that the European operations are profitable and can be used as a launch point for further expansion into the rest of Europe; Gap Analysis The fundamental end of this project is to move from the traditional business model which has proven to be wasteful and also find a way of producing more effectively and meeting consumers’ needs. This is going to require the application of lean management processes and pointers and this includes the movement from traditional approaches to the integration of information technology and supply chain management. Lean production cuts down costs significantly and improves profitability in most cases and contexts. It has been used successfully by Toyota to achieve higher economic leverage and improve their profitability in a strategic context (Bush & Coleman, 2013; Henry, 2011). Although lean management is strategic in outlook, it can be important in promoting the operational and survivability elements of the newly consolidated Phab entity and it will examine the ICT and supply chain management element in the context of the apparent requirements and needs for the business (Checkland & Holwell, 2012; Heeks, 2006). There is the need for a multiple approach to be instituted to ensure that all the different units work together and the information systems achieve the best interests of all the relevant stakeholders (Bartis & Nitev, 2008) Survival/Operational Activity IT Concerns Supply Chain Concerns Corporate Governance Executive Support System/ Decision Support System - Brand Formulation Enterprise Resource Planning System - Organisational Structure & Reorganisation Enterprise Resource Planning Communication Concerns & Intranet Customer Satisfaction Customer Relationship Management Timely Delivery of Products/Inventory management Europeanization DSS/ERP Supply Chain System eCommerce System Intranet System Courier System/Warehouse Table 1: Changes and its Implication The table above shows the survival and growth requirements of Phab and its respective IT and Supply Chain management implications. At the moment, it is apparent from the facts of the situation that Ogonwe’s business needs to institute strong management systems and controls. This can only be achieved through the formulation of a strong corporate governance system that will ensure that there are proper controls and checks to achieve the main goals and objectives. Such a system will be complemented by a powerful Decision Support System (DSS) or an Executive Support System (ESS) that will give the people at the top of the corporate governance information in a timely manner. This will include a system that will summarise important information that will be available almost immediately for decisions to be taken to steer the newly reorganised Phab. The newly reorganised Phab will have to be positioned in a way that will help it to achieve the best interests of consumers. This will be done by understanding the market and putting in place the best systems. The current status is very delicate and Ogonwe’s business will be combining an organically built shop hardware shop and a service delivery company that has been acquired (Networkz). Therefore, there is the need for a careful evaluation of facts and trends through the continuous examination of an Enterprise Resource Planning (ERP) System that will bring together and aggregate data. This will help to achieve a level of knowledge management which will include gathering information and data and upgrading this information at a regular basis to achieve optimal results (Fletcher & Polychranokis, 2007). Based on information from the ERP system, there can be the repositioning of the company which will require Phab to change its organisational roles and processes. This will require the creating of new portfolios and obligations that are relevant to the company’s growth and expansion. Customer satisfaction is the only way through which Phab will survive. This can be achieved through the constant satisfaction of consumer needs and the use of the best methods. Understanding customers’ needs and predicting their next processes can be done by a Customer Relationship Management (CRM) system. The success of customer satisfaction can be done through ensuring that there is a functioning and an appropriate supply chain system. And this will be determined by the timely delivery of orders and inventory management from within Phab. The Europeanization of Phab and the appropriate management of the company’s Norwegian branches and eventual expansion to the continent can be done by constantly monitoring the operations from the head office in England and taking appropriate action. This will require a good ERP and DSS system and an appropriate supply chain management system and process. Finally, the new warehouse system in North London can be put to the best use if it is linked to an eCommerce system and this will require investments into an online presence. This can best be operated if there is a proactive intranet system that works with the right warehouse system and delivery services. There might be the need for some investments to make this process to work properly and meet its targets. IMPLEMENTATION CONCERNS There are some practical considerations and pointers that ought to be observed to ensure the growth and expansion of Phab through the use of an open source software that will help to position the firm well through an ERP system and a CRM system. This must be done by examining some important elements and aspects of the new system and its practical elements and implications to the company and its owner/shareholders. eCommerce Systems The e-commerce system that is being put in place will optimise and utilise the new North London warehouse that has been acquired. However, for it to be successful, there must be some important changes and modifications that will ensure that there is enough revenue made to cover the costs. There revenue base of Phab will be increased and achieve the highest levels if they make the highest and best use of the warehouse they have. This will require the expansion of their Business operations to the Internet and make as much profits they can from orders and sales they will make through the new e-Commerce Process. And this will require systematic pointers which include: 1. Set up a courier and delivery system 2. Creating an e-commerce portal; 3. Integration of the e-commerce system; 4. Link all retail stores to the e-commerce system 5. Link the e-commerce system to the ERP and ESS system Courier & Delivery System Phab cannot deliver the products purchased by consumers directly. It will be more profitable if Phab gets a corporate contract with a major courier service to handle the deliveries they will need to make through their new delivery unit. This way, they can get discounts and economies of scale that will create a symbiotic relationship between the Phab and the courier company. When a contract is secured, there is the need for Phab to build an intranet system that will help to communicate and get real-time information about orders. Once these orders are made by consumers, the information will be processed and given to the courier company for prompt delivery to be made. Growing Online & Integrating Retail Stores The retail stores are the primary source of income for Phab. Therefore, there is the need for the 11 stores in the restructured Phab to be integrated to the new e-commerce system. This new e-commerce system must be such that consumers can be sold online and also through a customer log-in system that will allow orders to be sent online. This must be computerised and centralised in order to enable to consumers to make orders through a convenient system. There must also be an online presence for Phab and this should be done by creating an online portal and an online shopping system through which consumers can make purchases of items through Phabs website. If the capacity of the North London warehouse is big enough, Phab can branch into other sales systems and offer certain products to consumers who might need it. They will need to create online portals that will advertise the products to consumers and deliver from the warehouse. However, this must be linked to the centralised system in order to connect to the warehouse staff and couriers in real-time so the products can be delivered in a timely manner. E-Commerce Payment Integration Online sales must also be complemented by immediate payments through acceptable payment cards. Therefore, there must be an integration of an appropriate e-payment portal that could be outsourced for the meantime. This will allow people to purchase things and give their payment details just before completing the purchase. Therefore, there must be a system and an approach of integrating and carrying out various systems of centralising the e-commerce system. This is the best way to ensure that convenient sales can be conducted and there could be the expansion of the operations of Phab beyond just providing products within their core area of operations. The implementation of Phab’s new e-Commerce system will require an extra capital injection. This can be sourced through raising funds to cover the infrastructure system’s installation. This can be written off over a number of years in the future. Enterprise Resource Planning System Implementation in Phab The current business process of Phab is going to change. It will include amongst other things: 1. A unified mobile and computer hardware shop and sale of mobile and related services; 2. A new e-commerce portal; 3. International partners that ought to be unified in the process. Therefore there is the need for some steps to be taken to define the right approach and method of instituting the ERP. ERP Architecture The first obligation is to draw an architecture of Phab’s business model after the reorganisation and this should be used as the basis to design an ERP system (Rothlin, 2013). The important information that must be taken include accounting information, consumer needs and expectations, consumer purchasing trends and supplier delivery, inventory management points amongst others (Subhan & Bhatti, 2015). These will show how things are being done in Phab on a day-to-day basis. Data Control and Protocols The second practical obligation is about the data control and the data formulation. This will include the different points of gathering the data and how the data is linked. There will be the need for protocols and authorisation limits that will be set at the different points and correspond to the different managerial positions in the organisation. Stakeholder Information Needs Thirdly, key stakeholders’ information sharing needs must be acknowledged and honoured. This will include identifying other things like inventory management and inventory information sharing that will be a practical part of the company’s affairs and processes. They might include information sharing and integration with suppliers of products in order to ensure timely deliveries. CRM Customer Relationship Management will have to be implemented through the gathering of information about consumers and their backgrounds and purchasing trends. This should include a system of taking information instantly from the first sale and linking it to the other units, notably marketing and other managerial units. Through this, Phab can get a profile of consumers and what they want. This system will include one that can be easily reviewed and statistically analysed to aid planning and decision making. Supply Chain Management The Supply Chain Management element of the ERP will have to connect information to suppliers and let them know about the state of inventory in order restock (Kurbel, 2010). Therefore, Phab will have to find a way of getting a legal contract to get its suppliers to share information with them so that they could cut down waiting costs and inventory hold up costs and risks of keeping a large warehouse. Executive Support System There must be a detailed system that will summarise and present information to Ogonwe and his colleagues in the top management position. Therefore, the implementation of the new ERP will have to be one that will summarise information about a large section of activities in a simple manner in order to get the management of Phab to understand things so they take decisions quickly. International ERP Implementation Once a new ERP system is put in place, there can be the extension of this system to the Norwegian branch and this will allow the management in the UK to monitor affairs and understand what is going on. The use of a unified system will mean that Phab will have total and absolute control in affairs and know and understand what is going on and launch operations from Norway to other parts of Europe. Open Source V Closed Source There is a question of whether Phab should use an open source system or a closed source one. An open source software is a free-to-distribute software system that comes with little or no costs and it is programmed to meet the needs and goals of the company (Ganesh, et al., 2012). They are available online and can be downloaded and upgraded for use through further programming. A closed source software is one that has a license which is owned by another person (Samoladas, et al., 2014). These have to be paid for and used in meeting the goal and obligation that is required or expected. Closed source software used for ERPs are somewhat expensive because it will require a lot of money to get a specific software and it might require a lot of money to upgrade from time to time. Therefore, it must be avoided by a small firm like Phab. The advantage of closed source software is the fact that they are often given appropriate support and assistance. And they are professionally built and might not require coding or reprogramming. There is vendor support and this can help to make the software more helpful. On the other hand, open ended software can be adjusted more easily by a person who knows the company. Therefore, the opened software is more personal and might be more appropriate for a small entity like Phab. In line with these facts, it is best for Phab to consider an open source software and get its IT staff to program it to meet the actual demands and expectations of the company and the business environment. This includes integration needs and expectations because an open source software is likely to be easily integrated to other software and products. Actual Implementation and Issues The implementation should be done through the use of project management issues to figure out what is going on in the company and draw an important architectural system and understand the process. Therefore, Phab will have to outsource the implementation to an appropriate entity and organisation. After that, a good design can be made and within the design, there could be the presentation of new options that will be authorised by the management in relation to the actual needs of the company. When installation is done, there is the need for Phab to get it tested. After testing, there must be the training of staff and close examination of operations and its impacts in order to ensure that the company’s workers meet all their goals with the new system. Reflective Report This research has shown the way in how the different operations and supply chain management elements of a company is linked to its Information Technology systems. It has given me the chance to think and rethink about how information system operates within an organisation and how the use of the Internet is changing the way products are sold by a company to its consumers. The case analysis has also given me an opportunity to apply things practically to a small situation and this gives me the confidence and view of how the general trends in this study can be extended to other larger entities. The study has given me a broad review and analysis of how strategy and ICT and SCM interact with each other to provide competitive companies and competitive entities. The findings of this study show how organisations and reorganisation of firms can change its core structure. And when that structural change occurs, there is a major tendency for information technology to be used as a tool for achieving competitive advantage and growth. Internationalisation and coordination can best be done through the institution of new ICT processes and systems. This study has taught me important trends in how information technology can be a tool for helping a firm to achieve its best interests and its best goals through the institution of better communication with its stakeholders and also observing its consumers in order to provide better services for them. Bibliography Ansoff, H. I., 2013. Strategic Management. London: Palgrave Macmillan. Bartis, E. & Nitev, M., 2008. A multiple narrative approach to information. European Journal of Information Systems, Volume 17, pp. 112 - 124. Bush, T. & Coleman, M., 2013. Leadership and Strategic Management in Education. 3rd ed. London: SAGE. Checkland, P. & Holwell, S., 2012. Information, Systems and Information Systems. New York: John Wiley and Sons. Fletcher, L. & Polychranokis, Y. E., 2007. Capturing Knowledge Management in the Supply Chain. Euromed Journal of Business, 2(2), pp. 191-207. Ganesh, K., Mohapatra, S., Anbuudayasankar, S. P. & Sivakuma, P., 2012. Enterprise Resource Planning: Fundamentals of Design and Implementation. London: Springer. Heeks, R., 2006. Health information systems: Failure, success and improvisation. International Journal of Medical Informatics, Volume 75, pp. 125-137. Henry, A., 2011. Understanding Strategic Management. New York: Oxford University Press. Johnson, G., Scholes, K. & Whittington, R., 2012. Exploring Corporate Strategy: Text and Cases. New York: Financial Times Prentice Hall.. Kurbel, K. E., 2010. Enterprise Resource Planning and Supply Chain Management. London: Springer. Rothlin, M., 2013. Management of Data Quality in Enterprise Resource Planning Systems. 2nd ed. London: BoD Publishing. Samoladas, I., Bibi, S., Stamelos, I. & Bleris, G. L., 2014. Exploring the Quality of Free/Open Source Software: A Case Study on an ERP/CRM System. Department of Informatics, pp. 640-647. Subhan, Z. & Bhatti, A. T., 2015. Analysis of Enterprise Resource Planning Systems. International Journal of Advent Research in Information Technology, 2(6), pp. 5-9. White, C., 2012. Strategic Management. London: Palgrave MacMillan. Read More