SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES

SIMS 2012-14 ASSIGNMENT MANAGEMENT INFORMATION SYSTEM

Submitted By:
D.VISHWAKANT B-69

Case- 01

Federal Express Redefines Its Services to Maintain Competitive Advantage

SOLUTION 1)
Strategic Competitive Advantage Strategic advantage is a specific advantage or strategy a business has over another company/competitor. When a company has a strategic advantage, it means that one of their strategies or actions gives them an advantage over their competitors. Going back with the previous example. One company likes to build wherever they think is good. The other company likes to build it in shopping centers that have a lot of people shopping. The second company would have a strategic advantage because they strategically placed their stores in locations where they will do well. With a number of strategic advantages combined, a business can develop a competitive advantage. Strategic management is an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment, or a new social, financial, or political environment [1]. Because strategic management uses the information from all levels in the organization (in different levels of aggregation and abstraction) and from its environment, we can say that every kind of information technology which exists today could be used to support the strategic management activity. But according to its long-term orientation (long-term strategy formulation, implementation and evaluation) strategic managers have different information needs than operational and middle-level managers. To support these specific information needs we can combine and extract various information technologies suitable especially for strategic management and classify them according to the phases of strategic management process.

Competitive Strategies
Cost Leadership Strategy The goal of Cost Leadership Strategy is to offer products or services at the lowest cost in the industry. The challenge of this strategy is to earn a suitable profit for the company, rather than operating at a loss and draining profitability from all market players. Companies such as Walmart succeed with this strategy by featuring low prices on key items on which customers are price-aware, while selling other merchandise at less aggressive discounts.

Differentiation Strategy The goal of Differentiation Strategy is to provide products that stand out from competitive offerings. An example is Southwest Airlines, which promotes its no-fee baggage handling as unique from other airlines. Innovation Strategy The goal of Innovation Strategy is to leapfrog other market players via the introduction of completely new or notably better products or services.This strategy is typical of technology startup companies, who often intend to "disrupt" the existing marketplace, obsoleting the current market entries with a breakthrough product offering. It is harder for more established companies to pursue this strategy, once their product offering has achieved market acceptance.Apple has been a notable example of this strategy, for example, with its introduction of iPod personal music players, and iPad tablet computers. Operational Effectiveness Strategy The goal of Operational Effectiveness as a strategy is to perform internal business activities better than competitors, making the company easier or more pleasurable to do business with than other market choices. State Farm Insurance pursues this strategy by promoting their agents as "good neighbors" who actively help customers. Technology-based competitive Strategy (Project Socrates) In the United States of America during the Reagan Administration, a team of experts led by Michael Sekora was brought together to 1) determine why US industries were losing their ability to compete in the world marketplace a 2) develop a solution to restore US industry's ability to compete. As a result, Project Socrates was initiated. The Socrates team launched one of the most in-depth research undertakings ever conducted in the US intelligence community, producing ten key findings that became the basis for the "Socrates technology-based competitive strategy" system, and support tools for developing and executing competitive strategies. The Socrates system was successfully deployed and considered instrumental in the economic recovery of the 1980s. However, early in the George H. W. Bush presidency, the program was de-funded by Bush for political reasons. Leaving the government shortly after Socrates was de-funded, Michael Sekora continued refining the system and applying it to individual companies. Recentl legislation has been introduced to revive the Socrates system as a solution to the US current economic downturn

SOLUTION 2)
The information technologies for strategic management could be classified according to the phases of strategic management process which comprises of five phases : organizational objectives, environmental scanning, strategy formulation, strategy implementation and strategic control. Organizational objectives: Organizational objectives are the concrete goals which the enterprises wish to realize. They should be measurable so that the enterprise can monitor its progress and make corrections if needed. In this phase of strategic management process the following information technologies could be used: Goal management information technologies Policy development systems Goals conflict detection and resolution systems. Environmental scanning: Environmental scanning is very important phase of the strategic management process because its results are the base for developing the enterprise strategy and strategy re-engineering. Once the enterprise has specified its objectives, it begins with its current situation and develops a strategic plan to reach these objectives. An environmental scan is performed to identify changes in the external and internal environments and the available opportunities and problems. This process is also known as situation analysis which involves an analysis of both the external and internal environment. The external environment has two aspects: the macro-environment and micro-environment. Macro-environment affects all enterprises and its analysis is known in scientific literature as PEST Analysis. Micro-environment affects only enterprises from one industry. Its analysis includes problems such as competition in the industry, the activity of competitors, customers, suppliers, products portfolio, innovations in the industry, and etc. The internal environment analysis deals with all aspects inside the organization. Therefore information technologies and software applications used in environmental scanning must support gathering, processing and analyzing the information about the external and internal situation for the enterprise. In this phase of strategic management process we can use any kind of information technology which can be applied for reducing uncertainty: Geographic information systems they are very suitable to geographic monitoring of customers, suppliers and competitors and for market geo-positioning. Systems for detection of important environmental changes and opportunities as well as systems for internal and external environmental analysis. Knowledge-based and knowledge management systems which combine the latest achievements in the field of information technologies and have strategic impact over the business development and gaining competitive advantage.

 Information systems for extraction and processing information from various ext ernal and internal information sources. Patents and know-how discovering and monitoring tools. Data mining and other business intelligence technologies. Industry trends and innovation predictions technologies. Strategy implementation: Developing the strategy is not enough to achieve results. We need to implement it by translating it into more detailed policies that can be understood at the functional level of the enterprise. At this phase of the strategic management process we can use: Strategic plan formulation systems. Change management systems. Technologies for supporting organizational structure development and re-engineering. Team collaboration supporting systems. Resources allocation supporting technologies. Strategy implementation monitoring tool. Strategy evaluation and control: The strategic management is dynamic and continuous process. We constantly need to adapt the developed strategy according to the environmental changes. Therefore we need to monitor the environment and register and evaluate its changes. We also need to measure and evaluate the effectiveness of the developed strategy and apply strategy re-engineering algorithms if needed. To suit these needs the following systems could be used: Business performance measurement systems. Strategic control systems. Strategy evaluation and re-engineering systems. Information Technologies of Crucial Importance for Strategic Management

From the information technologies described above we can extract these which are of crucial importance for the strategic management of the enterprise. These technologies are strongly related to the long-term enterprise growth and prosperity, competitive advantages and innovations development. They are based on knowledge and help organizations overcome the competition in the knowledge markets. The theoretical foundation of these markets are established in . By its participation in these markets the enterprise can dramatically increase its competitive power, their impact on global market and generate more incomes by developing innovations and creating knowledge. In the new knowledgebased economy only knowledge-oriented enterprises can take leading positions in the industry. The information technologies which can be used for knowledge management, engineering and implementation are as follows: Knowledge management systems Ontology generation systems Expert systems for different knowledge domains Business intelligence systems Knowledge map systems Innovation support tools Competitive intelligence tools Knowledge portals and web services Knowledge collaboration systems Knowledge exchange systems Knowledge bases support systems

Case- 02

Gerber Develops System to Manage Customers Inventory

SOLUTION 1)

The System Development Life Cycle framework provides a sequence of activities for system designers and developers to follow. It consists of a set of steps or phases in which each phase of the SDLC uses the results of the previous one. A Systems Development Life Cycle (SDLC) adheres to important phases that are essential for developers, such as planning, analysis, design, and implementation, and are explained in the section below.It include evaluation of present system, information gathering, feasibility study and request approval. A number of system development life cycle (SDLC) models have been created: waterfall, fountain, spiral, build and fix, rapid prototyping, incremental, and synchronize and stabilize. The oldest of these, and the best known, is the waterfall model: a sequence of stages in which the output of each stage becomes the input for the next. These stages can be characterized and divided up in different ways, including the following.

Preliminary Analysis: The objective of phase 1 is to conduct a preliminary analysis, propose alternative solutions, describe costs and benefits and submit a preliminary plan

with recommendations.Conduct the preliminary analysis: in this step, you need to find out the organization's objectives and the nature and scope of the problem under study. Even if a problem refers only to a small segment of the organization itself then you need to find out what the objectives of the organization itself are. Then you need to see how the problem being studied fits in with them. Propose alternative solutions: In digging into the organization's objectives and specific problems, you may have already covered some solutions. Alternate proposals may come from interviewing employees, clients , suppliers, and/or consultants. You can also study what competitors are doing. With this data, you will have three choices: leave the system as is, improve it, or develop a new system.Describe the costs and benefits.

Systems analysis, requirements definition: Defines project goals into defined functions and operation of the intended application. Analyzes end-user information needs. Systems design: Describes desired features and operations in detail, including screen layouts, business rules, process diagrams, pseudocode and other documentation. Development: The real code is written here. Integration and testing: Brings all the pieces together into a special testing environment, then checks for errors, bugs and interoperability. Acceptance, installation, deployment: The final stage of initial development, where the software is put into production and runs actual business. Maintenance: What happens during the rest of the software's life: changes, correction, additions, moves to a different computing platform and more. This is often the longest of the stages.

The systems development life cycle are divided in ten steps from definition to creation and modification of IT work products:

Investigation
The 1st stage of SDLC is the investigation phase. During this stage, business opportunities and problems are identified, and information technology solutions are discussed. Multiple alternative projects may be suggested and their feasibility analyzed. Operational feasibility is assessed, and it is determined whether or not the project fits with the current business environment, and to what degree it addresses business objectives. In addition, an economic feasibility investigation is conducted to judge the costs and benefits of the project. Technical feasibility must also be analyzed to determine if the available hardware and software resources are sufficient to meet expected specifications. A legal feasibility study is important to discover any potential legal ramification. The results of the feasibility study can then be compiled into a report, along with preliminary specifications. When the investigation stage ends, a decision whether or not to move

forward with the project should be made. If it is decided to move ahead, a proposal should have been produced that outlines the general specifications of the projects.

System analysis
The goal of system analysis is to determine where the problem is in an attempt to fix the system.This step involves breaking down the system in different pieces to analyze the situation, analyzing project goals, breaking down what needs to be created and attempting to engage users so that definite requirements can be defined.

Design
In systems design the design functions and operations are described in detail, including screen layouts, business rules, process diagrams and other documentation. The output of this stage will describe the new system as a collection of modules or subsystems. The design stage takes as its initial input the requirements identified in the approved requirements document. For each requirement, a set of one or more design elements will be produced as a result of interviews, workshops, and/or prototype efforts. Design elements describe the desired software features in detail, and generally include functional hierarchy diagrams, screen layout diagrams, tables of business rules, business process diagrams, pseudo-code, and a complete entity-relationship diagram with a full data dictionary. These design elements are intended to describe the software in sufficient detail that skilled programmers may develop the software with minimal additional input design.

Testing
The code is tested at various levels in software testing. Unit, system and user acceptance testings are often performed. This is a grey area as many different opinions exist as to what the stages of testing are and how much, if any iteration occurs. Iteration is not generally part of the waterfall model, but usually some occur at this stage. In the testing the whole system is test one by one Following are the types of testing:

Defect testing the failed scenarios, including defect tracking Path testing Data set testing Unit testing System testing Integration testing Black-box testing White-box testing Regression testing Automation testing User acceptance testing

Software performance testing

Operations and maintenance

The deployment of the system includes changes and enhancements before the decommissioning or sunset of the system. Maintaining the system is an important aspect of SDLC. As key personnel change positions in the organization, new changes will be implemented. There are two approaches to System Development, there are traditional approach (structured) and Object Oriented. Information Engineering includes traditional system approach or it also called as Structured Analysis and Design Technique. Object Oriented approach views information system as the collection of objects that integrated each other's to make a full complete information system. Approaches of Developing a System There is some approach that used for system development and may visible from several viewpoints, among others: Methodology that Used Classical approach Structured approach

Target that Want Achieved Piecemeal approach System approach

Manner Determines Need from System Bottom-upapproach Up-bottom approach. Manner Develop it Totally system approach Modular approach

Technology that used Great loop approach Evolutionary approach

Solution 2 :
Players involved in Information system development project and their roles : The various players involved in each stage of the developmental process would involve the following in totality: 1. The company which needs the Information system to be developed and implemented, in this case, Gerber 2. The company which provides the technical ability required to develop and implement the information system solution, in this case, Manugistics 3.The end users of the software, in this case, Gerber Employees and Retailers The involvement and roles of these players is brought out along each stage of the SDLC process is brought out in a tabular fashion below: Sr. No 1 2 3 4 5 6 Players Involved Gerber, Manugistics Manugistics Manugistics, Gerber Employees Gerber Employees, Retailers Manugistics, Gerber Gerber Employees, Retailers Responsibility Define requirements Identify developmental platform Conduct User oriented development Global Implementation Maintenance team & systems Suggesting Improvements