Executive Summary Aalsmeer Flower Auction is an organization that deals with flowers auction market.

The marketplace is located in Netherlands. They have planned to establish online auction market due to the some threat that threatened their comfortable position. These threats are identify using Porters five forces analysis. Business and information requirement are also look into, to know what are the business requirement and information requirement for the online auction market. After getting to know the business requirement and the information requirement, system development was evaluate to know which method is appropriate for AFA. Waterfall system development methodology was chosen as appropriate for AFA due to the business and information requirement of AFA. Effectiveness of the new system developed was consider on the organization, management and the employee. 1. Introduction Aalsmeer Flower Auction (AFA) is an auction house that offer global growers, wholesalers and exporters a central marketplace in which to trade flowers and plants. New developments in auction market threatened their comfort ability position, firstly, the need for emergence of alternative, electronically driven flower markets. Secondly, Retailers asked for fresher products, more varieties, smaller quantities and multiple deliveries each week. And lastly, merger and acquisitions among retailers increased their size and power. After studying the case, using the porter’s five forces, it is realized that AFA has some strength to overcome all these threats. By this the report suggest to Aalsmeer Flower Auction (AFA) the need to restructure the organization of the flower market by forming alliance with other business to enable them to have wider market range.

Alsmeer Flower Operation System
1.0 Introduction and objectives The Aalsmeer Flower Auction based in Netherlands and have 44% market share in the flower market. It offers growers, wholesalers and exporters a market place to trade flowers and plants acting as a mediator. When acting as a mediator they receive a commission from growers for every plant sold. They came to a decision that they have to move on with technology more as most of the markets have in order to keep up with the demands of consumers. The initial objectives of moving on to an e-business is to enable innovation, redefine the value chain reduce costs, strengthen the link with wholesalers and retailers by providing a better customer service, keep up with competition and increase market share. Below is a the business chain of the Aalsmeer flower auction; (www.infoci-journals.com 2005) 1.1 Information Strategy In order for the Aalsmeer Flower Auction to achieve their business objective and ensure competitive advantage in the Is this Essay helpful? Join OPPapers to read more and access more than 350,000 just like it! get better grades

which has become dominant in recent years. Information strategy is a plan of action to produce general strategic information systems design to meet business objectives and aligns with the general business strategy.shef. In his book. where business tasks are linked both internally and via networks (Trevor Bently 1998). Porter also helps to identify the specific company’s competitor. We may use Porter’s competitive forces to analyze how it can have an impact to the operations of Cold Storage. the huge growing prospects of these large supermarkets make it difficult for them to source products from overseas. or how it could attract others to do business with. the suppliers are restricted to operate freely and will. The system that Aalsmeer wants to put up must fit in the business’ chainto be able to perform effectively. These large supermarkets focus heavily on operational efficiency. and organisational aspects. Such method of operation affects a lot of small traditional shops such as butchers and bakers. With this in mind. Information systems are a way of looking at the business. Bargaining Power of Suppliers The power of the suppliers can be highlighted as they often do business with large food chains. in which we can see that the smaller retailers cannot compare. and also there is a fear of losing these suppliers and their business to other larger retail supermarket. Porter identified 5 external forces that will affect an industry or a market. where required (www. which is systematic and independent of technology.ac. . often gets better promotional prices from suppliers. In Singapore.and Cold Storage also operates in such manner. Due to a large fixed cost and huge capital involved. such as training. suitable information strategy must be put in place. The type of forces can help us to understand or to analyze how a company makes its profits.uk). According to Laudon & Laudon (2004) information systems can perform calculations or process paperwork much faster than people and helps companies to learn more about the purchase pattern and preferences of their customers.. This makes it very difficult and creates a barrier for other new supermarkets to enter this industry.industry. especially relying on the importance of one stop shopping for customers. It also includes people aspects. In the terms of the suppliers. Porter Five Forces Porter Five Forces Porter’s Approach is taken from his 1980 book “Competitive Strategy: Techniques for Analyzing Industries and Competitors. Formulating an information system is seen as a fundamental necessity in the modern organisation. as a direct competitor to Cold Storage. Porter’s theory has often been used by many people to understand more about a company’s structure and the method or plan used to run its business. the food industry has seen the up and rising supermarket industries. Giant and Carrefour. Threat of New Entrants For the past 30 years.cics.dept. new entrants’ supermarkets find it hard to break into the market..

e-commerce coupled with the appropriate strategy and policy approach enables Small and medium scale enterprises to compete with large and capital-rich businesses. culture.1 Organizations and Information Systems Information systems must be aligned with the organization to provide information that important groups within the organization need. e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. besides reducing costs. either as sellers or buyers. Specifically. workable and practicable within the context of global information and new economic environment. among others-are gradually being narrowed down.E-Business INTRODUCTION OF THE TOPIC In the emerging global economy. including the organization’s structure. On another plane. The name of the game is strategic positioning. On the other hand. the organization must be aware of and open it self to the influences of information systems in order to benefit from new technologies. to facilitate e-commerce growth in these countries. and management decision (see Figure 3. The interaction between information technology and organizations is very complex and is influenced by a great many mediating factors. With its effect of leveling the playing field. the use of ICT in business has enhanced productivity. politics. However. if not all.1) . developing countries are already participating in e-commerce. distinctions between traditional markets and the global electronic marketplace such as business capital size. the ability of a company to determine emerging opportunities and utilize the necessary human capital skills (such as intellectual resources) to make the most of these opportunities through an e-business strategy that is simple. and enabled mass customization. 3. The integration of information and communications technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals. the relatively underdeveloped information infrastructure must be improved. standard operating procedures. Most. developing countries are given increased access to the global Marketplace. surrounding environment. With developments in the Internet and Web-based technologies. encouraged greater customer participation. where they compete with and complement the more developed economies.

Figure 3. There is no singular effect of computers in all organizations. culture. culture. different organizations in different circumstances experience different effects from the same technology. politics and management decisions are all mediating factors that influence the interaction between information technology and organizations. 3. standard operating procedures. politics and management decisions are all mediating factors that influence the interaction between information technology and organizations. not the least of which are the decisions made—or not made—by managers. Strategic information systems should be distinguished from strategic-level systems for senior managers that focus on long-term. This complex two-way relationship is mediated by many factors. structure. products. The organization's environment. Instead. structure. and pure chance. decision-making problem. Strategic information systems can be use at all organization levels and are more far-reaching and deep rooted than the other kinds of systems we have described. politics. Instead. standard operating procedures. There is no singular effect of computers in all organizations. different organizations in different circumstances experience different effects from the same technology. services. or environmental relationships to help the organization gain a competitive advantage.1 The two-way relationship between organizations and information technology. The organization's environment. . operations. bureaucracy. Other factors mediating the relationship are the organizational culture. business processes.4 Information Systems and Business Strategy What is a Strategic Information System? Strategic information systems are computer systems at any level of the organization that change goals.

Supply Chain Management and Efficient Customer Response Systems A powerful business. sales and marketing. Information System Products and Services Firm can use information systems to create unique new products and services that can be easily distinguished from those of competitors. these . The question are “How can the overall performance of these business units be achieved?” and “How can information technology contribute?” There are two answers in the literature to these question: synergy and core competency. It include inbound logistics. outbound logistics. and (3) to change the scope of competition by either enlarging the market to include global markets or narrowing the market by focusing on small niches not well served by competitors digital firm provide new capabilities for supporting business level strategy by managing the supply chain. Leveraging Technology in the Value Chain At the business level the most common analytic tool is value chain analysis. System to Focus on Market Niche Businesses can create new market niches by identifying a specific target for a product or service that it can serve in a superior manner. Primary activities are activities most directly related to the production and distribution of a firm’s products or services. building efficient customer “sense and respond” system and participating in “value webs” to deliver new products and services to market. Consist of the organization’s infrastructure. Supporting activities make the delivery of a firm’s primary activities possible. human resources. Often the firm is organized financially as a collection of strategic business units. Strategic information system for product differentiation can prevent the competition from responding in kind so that firms with these differentiated products and services no longer have to compete on the basis of cost. Supply chain management can thus be used to create efficient customer response systems that responds to customer demands more efficiently. and service. and procurement. the firm can provide a specialized product or service for this narrow target market better than competitors. Firm-level Strategy and Information Technology A business firm is typically a collection of businesses. Supply chain management systems can not only lower inventory costs but can also deliver the product or service more rapidly to the customer. and the returns to the firm are directly tied to strategic business unit performance. An efficient customer response system directly links consumer.” Firms using systems to link with customers and suppliers can reduce their inventory costs while responding rapidly to customer demands. Through focused differentiation. or two organizations can pool markets and expertise.Business-Level Strategy and the Value Chain Model The most common generic strategies at this level are (1) to become the low cost producer (2) to differentiate your product or service. operations. The idea driving synergies is that when some units can be used as inputs to other units.level strategy available to digital firms involves linking the value chains of vendors and suppliers to the firms through linking the customer’s value chain to the firm’s value chain in an “efficient customer response system. technology. The value chain model highlights specific activities in the business where competitive strategies can be best applied and where information systems are most likely to have a strategic impact.

How can IT be used strategically here? One use of information technology in these synergy situations is to tie together the operations of disparate business units so that they can act as a whole. Some of the important question managers should ask themselves are as follows: . Often required when adopting strategic systems that demand changes in the social and technical elements of an organization. a great deal of money can be made by cooperating with other firms in the same industry or firm in related industries.What are the direction and nature of change within the industry? From where are the momentum and change coming? One the nature of information systems technology in the industry is understood. television broadcasting. The key strategic question at this level of analysis is. and forest products industries. Information Partnership Information Partnership is cooperative alliance formed between two or more corporations for the purpose of sharing information to gain strategic advantage.relationships can lower costs and generate profits. telephone. the best package delivery service. specifically threats and opportunities. “how and when should we compete as opposed to cooperate with other with other in the industry?” whereas most strategic analyses emphasize competition.How is the industry currently using information and communication technology? Which the organizations are the industry leaders in the application of information systems technology? What kinds of systems are applicable to the industry? . the best miniature parts designer. Industry-level Strategy and Information Systems: Competitive Forces and Network Economics Firm together comprise an industry. managers should turn to their organization and ask other important questions: . such as the automotive industry. that affect an organization’s strategy and ability to compete. Enhancing Core Competencies A core competency is an activity at which a firm is a world-class leader. or the best thin film manufacturer. to name a few. What Manager Can Do Managers must take the initiative to identify the types of systems that would provide a strategic advantage to the firm. Core competencies may involve being the word’s best fiber-optic manufacturer. Network Economics It is model of strategic systems at the industry level based on the concept of a network where adding another participant entails zero marginal costs but can create much larger marginal gain. Using Systems for Competitive Advantage: Management Issues Management Strategic Transitions Strategic Transitions is a movement from one level of sociotechnical system to another. The Competitive Forces Model It is model used to describe the interaction of external influences.what are some of the forces at work in the industry? What strategies are being used by industry leaders? .

Development also involves validation of the developed output. Each cycle starts with determination of objectives. detailed design. In order to manage the risks involved in a cycle. Applying the engineering paradigm of freezing requirements before design and freezing design before manufacture. the next step in a cycle is to evaluate alternatives and identify and resolve risks. it became apparent that it was not possible to have water-tight compartments and it was desirable to have feedback between successive stages. whereas later on. With a good project overview. or customer service for this specific firm? SPIRAL MODEL The spiral model [2] was a further improvement on the evolutionary model. Each cycle has an associated cost. The term software life-cycle was based on a basic software process model. risk management. coding. simulation. integration. or code. The next step in the cycle is to develop as per the objectives and methods decided for the cycle. marketing. and project overview and planning. It integrates the concepts of project objectives. operations and maintenance. prototyping. prototyping. In the spiral model the development is done in cycles of a spiral.-Is the organization behind or ahead of the industry in its application of information systems.Where would new information systems provide the greatest value to the firm? . After development. etc. it might be requirements or life cycle plan. WATERFALL MODEL It was understood that software had a life-cycle starting from the decision to make that software to the time the software was in operation. the objectives of a cycle can be decided. the waterfall model stipulated that software should be made in a sequential series of stages. like requirements' analysis.Does the firm have sufficient technology and capital to develop a strategic information systems initiative? . The spiral model was a big improvement as it stressed on evolutionary incremental development. Having the objectives in place. Slowly.What is the current business strategic plan. indicating the stages software would go through in its life-cycle. alternatives and constraints for the cycle. installation. the development might involve development of concept of operation or software requirements. whereas in a later cycle it might mean development of software design. detailed design. In an early cycle.Are there strategic benefits from using Internet technology in operations. In an early cycle. and how does that plan mesh with the current strategy for information services? . . Thus a . it might be an update of earlier plans (based on the experiences of the cycle). design. benchmarking. risk management. are done. the last part of the cycle is to reflect on the work done in the cycle and plan for the next cycle. prototyping and project cost to the evolutionary model. Thus the project team is able to zero-in on the best methods and tools for development. development plan or integration and test plan. The radial dimension of the spiral is the project cost and the angular dimension is the project progress for a cycle. It was thought that the root cause of the problem was that the requirements were not understood well enough before the software design and proper design was not done prior to coding. The first response to the software crisis was the discovery of the waterfall software process model.

and provides a framework for describing projects in a fashion suited to managing the project. SSADM is in the public domain. Also. steps. This was in line with the engineering practice for a design error found during manufacture is first corrected in design and than manufacturing is done as per the modified design. and tasks. it was felt that making a prototype of the system in early stages would help in understanding the requirements better and would eventually help in making a better system. SSADM's objectives are to: • • • Improve project management & control Make more effective use of experienced and inexperienced developmentstaff Develop better quality systems Learn More • • • • • Traditional Models (RUP. and is formally specified in British Standard BS7738.design error found during coding would lead to a correction of design and then the coding would continue. SSADM (Structured Systems Analysis & Design Method) • • • • • • • • E-mail Print AAAAAA LinkedIn Facebook Twitter Share This RSS SSADM (Structured Systems Analysis & Design Method) is a widely-used computer application development method in the UK. It is increasingly being adopted by the public sector in Europe. SSADM divides an application development project into modules. V-Model. CMMI. taking the clue from engineering again. stages. where its use is often specified as a requirement for government computing projects. Waterfall) Software Quality Resources Make projects resilient to the loss of staff Enable projects to be supported by computer-based tools such as computer-aided software engineering systems Establish a framework for good communications between participants in a project .

RAD .). rapid application development (RAD) • • • • • • • • E-mail Print AAAAAA LinkedIn Facebook Twitter Share This RSS RAD (rapid application development) is a concept that products can be developed faster and of higher quality through: • • • • • Gathering requirements using workshops or focus groups Prototyping and early. which pre-supposes a need to conduct steps in parallel.method. In detail. such as PRINCE. which is concerned with the broader aspects of project management. SSADM sets out a series of techniques and procedures. (This might be contrasted with the rapid application development . reiterative user testing of designs The re-use of software components A rigidly paced schedule that defers design improvements to the next product version Less formality in reviews and other team communication . and conventions for recording and communicating information pertaining to these . and a characteristic of the method is that projects may use only those elements of SSADM appropriate to the project. SSADM sets out a cascade or waterfall view of systems development. SSADM is a very comprehensive model. each of which leads to the next step. are: • • • • • • • Feasibility Investigation of the current environment Business systems options Definition of requirements Technical system options Logical design Physical design For each stage. it is generally used in conjunction with other methods. in which there are a series of steps. SSADM's steps. or stages. SSADM is supported by a number of CASE tool providers.SSADM covers those aspects of the life-cycle of a system from the feasibility study stage to the production of a physical design.both in textual and diagramatic form.

There is a strong and continuous participation of the project sponsor who keeps giving feedback in the whole process. 2. If there are any additional requirements. The project management requirements are collected in a dynamic manner. 2. The reusability of the components also enhances the speediness of the process of software development. This method may not be useful for large. unique or highly complex projects 2. And finally the hurdles in the promotion of the CASE tools as a standard. Disadvantages of RAD Software Development 1. This method cannot be a success if the team is not sufficiently motivated and nor is unable to work cohesively together. 4. Main purpose of the CASE tools is to decrease the development time and increase the quality of software. 5. cost of software development and for the enhancement of the quality of the systems developed (Diane Lending et al. 1998). Even the presence of these qualities CASE tools are not being used most often or freely. 7. It promotes better documentation through written test cases. Hence the end user satisfaction level is higher when the end result is produced. requirements are studied and matched. It is a big cost saver in terms of project budget as well as project time and cost due to reusability of the prototypes. Advantages of RAD Software Development 1.Some companies offer products that provide some or all CASE (Computer Aided Software Engineering) technologies are tools that provide the assistance to the developer in the development of software. 6. No a days most of the software houses don’t bother to use the CASE tools in their development process. these are then included in the next prototype built. It is much easier for a project manager to be accurate in estimating project costs which of course means that project cost controls are easier to implement and manage as well. All the software prototypes produced can be kept in a repository for future use. 8. These tools are not used freely as they should be. Every time there is a prototype ready. The time required to develop the software is drastically reduced due to a reduced requirement analysis business requirements documentation and software requirement specification) and planning stage.0 Introduction CASE tools reduce the time and cast of software development and ensure the quality of software. it is already tested and hence need not be tested again. If a component is being picked for the repository. 3. . This helps in saving time required for testing. there are some points that need improvement. The objective of introducing Computer Aided Software Engineering (CASE) tools was the reduction of the time. so that the use of CASE tools can be increased.

documentation may not be kept up-to-date. Disadvantages of Prototyping: • • • • • Prototyping is better suited for smaller modular applications. User must be willing and committed to providing ongoing and meaningful feedback. .3. Lower overall development costs when requirements change frequently The ability to get a functioning system into the hands of the user quickly. As the system can be changed easily. 4. Hence this can make project quality management hard to implement during the project management life cycle A schematic representation of proto-typing is given below: Advantages of Prototyping: The major advantages of prototype are as follows:• • • • • Ability to ‘tryout’ ideas without incurring large/ huge costs. There are times when the team ignores necessary quality parameters such as consistency. reliability and standardization. Rapid prototyping can gross over essential steps in systems development. Reduced application development time to achieve a functioning system. Effective utilization of scarce human resources. Success depends on the extremely high technical skills of the developers. The performance may be rather inefficient.

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