Hi! Here are 2 reports for this assignment. the first one is for 2000 words and must include LO1 and LO2. THE second one has the same 2000 words and must include LO3 and LO4. all the details you have attached.
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LONDON COLLEGE OF BUSINESS STUDIES Business System Student: Magdalena Vijan (30053) Unit Tutor: Onengi Briggs
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1 Introduction Business system is considered as the combination of personnel, policies, computer facilities and equipment to coordinate the business activities. Business systems objectives are to speed up execution of results, handle information efficiently, to ensure desirable distribution of services, data and equipment, cut down cost of operations and to meet customers and users demand and eliminating conflicting and duplicate activities.In order to understand the concept of business system some important terms are explained below.Managing every business system is a complex process that consists of number of functions (Chowdhury and Salahuddin, 2017). Functions:In the term of business, functions are the activities that are performed in an organization in different department such as accounting, finance, marketing, R&D, human resources and operations.Functions in any business ensure the proper functioning of an organization and help in to drive enterprise value and to generate income.The experts in each function assigned specific tasks and jobs according to their expertise and knowledge (Sundstrom and Hollinagel,2017). Systems:A system is considered as the group of interrelated and interacting entities that form a unified whole system, or it consist of sub systems that form whole system.Sub systems are defined as the set of elements in a larger system. In a business context, system includes process, procedures, course of action and method used in an organization to achieve desired goals. For an organization creating an effective business system is the way to achieve resultsthataremeasurable,consistentandbenefitcustomers(Sundstromand Hollinagel,2017). Processes:Processes in business is defined as the set of tasks and activities that if completed leads to accomplishment an organization objective.The process includes two components that are input given and output produced. Inputs are the factors that to the added values of product or services. Further, these factors are divided into operational processes, management processes and supporting business processes. In a nutshell, a process includes a series of action to attain certain set goals (Sundstrom and Hollinagel,2017).
2 Business environment Business operates in a dynamic environment and do not operate in a vacuum, environment in which business operates has direct influence on the activities performed by the business in order to achieve its objectives. The business operates in external and internal environment and some of factors of external environment that impact on the business are economic factor, social factor, technological factors, environment factor and legal factors. On the other side some of internal factors that impact on the operations of the business includes employees, needs and expectation of customers, demand and supply, management, client’s expectations and business partners. All the above factors are the force that impact directly or indirectly on the business operations and business changes its strategies and plans as per the these factors, Hence, business operates in a complex and dynamic environmentdue to that any changes that take place in the environment impact operations, performance, goals, and efficiency of the organization.. Different type of business systems There are mainly five types of business systems that can be found in an organization that are: 1.Human Resource Management System:This type of business system includes all the aspect of workforce or human resource of the organization. The output generated by using personnel management system helps the organization in getting variable cost, detailed of workforce activities, retention rate and number of employees working and leaves the organization (Sundstrom and Hollinagel,2017). This system has broader scope that includes all the activities related to human resourcesuchasimprovingandtrackingofemployeeefficiency,managing organization structure, and record of annual leave and absence. The main advantage of this system is the storage and record of all the employees, their efficiency level and many more that helps an organization to identify efficient and inefficient workers and helps in to plan for human resource. The drawback of this system is that it generally followsstandardizeprotocolsandplansthatapproachdoesnotworkonall employees. Further, this system is expensive and required trained staff.
3 2.Payroll BusinessSystem:Thisbusinesssystemincludesallforms,files, procedures, and personnel information that is necessary to complete the process of payment of employees. This type of system handles personal deductions, provident fund deduction and tax deductions and provides readily data for payment of each employee. Some of advantages of using the payroll business system includes easy access to payment information, availability of data on time and makes business up to date with implementation of new laws and compliance related to payroll taxes without any such issues. Further, some of drawbacks of payroll system are cost of installation as small businesseswithfewemployeesmaynotfinditsuitable(Sundstromand Hollinagel,2017). 3.Accounts Receivable System:Accounts receivable system monitors record flow of money and monitor the people who owe money to business.This system includes data of customers such as money owed, address, current charges and payment due and received till date (Appelbaum et.al,2017). This is beneficial for organizations as it gives clear and on time information to business and leads to quick decision making. Further, account receivable system give information about bad debts of the company and amount that can be received on time. The drawback of using this system is the cost incurred in the maintenance and installation of the system. 4.Inventory Management System:Inventory management system is the most useful system for the organization as it is used by all organizations in order to manage inventories. This system is mainly used by manufacturing firms in order to give informationaboutminimuminventorylevel,maximuminventorylevel,andto maintain economic order quantity. The business use this system to ensure that inventories can be available on time for the production process and for smooth functioning of the business processes so that final output can be receive on time. The advantages of using inventory management system is that the organization not to worry about when to purchase and how to handle excess inventory. Further with the help of this system, storage cost, maintenance cost and carrying cost can be reduced to
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4 the best.This brings efficiency in the operations of the company (Sundstrom and Hollinagel,2017). At last, inventory management system can be beneficial for organizations, but it also has drawbacks such as expensive for small businesses, complex to handle and operates this system without training, and leads to many risk such as system failure and data breach. 5.Accounts Payable System:This type of system installed in businesses in order to manage bills payable of the company. It records and storedata of suppliers and accounts to whom the company owes money. This helps the organization to pay its debts on time and on the due date without any interest charges (Sikdar et.al,2017). This system is useful as on time payment to creditors build positive image of the company in the market and improve the cash turnover of the organization.All these information give advantage to the company at the time of making management report and at the time of decision making. The major disadvantage of all these systems are the operating expense and expertise that for installation and running of system in the organization. Business System contribution in sustainable performance The integration of business system in the organization benefits to the organization in many ways and the result of this is improved organizational performance.The business systems contribute for the sustainable performance as decisions are the part of businessand need to be taken by employees on daily basis some take big decision and some take small decisions and thisimpact directly on the performance and efficiency of the organization (Sikdar et.al,2017). Integration of business system ensures best practice, risk management, good governance and compliance management.This integration of all functions helps the organization tobring efficiency in operations, to boost up the productivity and all that resultant in overall achievement of sustainable performance. The ways by which business systems contribute to sustainable performance includes: Data is everywhere and with the help of business systems an organization manage data and convert it into useful information that ultimately help in to take effective
5 decisions. Further, with the help of business systems data can be available easily, secured confidentially and used on time. The link strategies of organizations with implementation and leads to efficiency in operations of the business. With the help of business systems like HRMS and Inventory management system, organizationcontrolqualityofhumanresources,getinformationabouthuman resources that are efficient and take necessary steps as per the information received through business systems. These lead to management of human resources in an effectivemannerandultimatelyboosttheperformanceofemployeesinthe organization and leads to sustainable long-term results (Chang, 2016). Business systems are taken as the tools by the organization that help in to set clear responsibilities and roles, manage processes, and helpful in identifying risk and opportunities.Thisbenefitsgrowingbusinessesasalltheseactivitieslinksto continuousimprovementintheprocessesandensuresustainablegrowthand performance. “Systemthinking”isconsideredastheorganizedapproachthathelpsin understanding the dynamic relationship between components and systems. It is taken as the conceptual framework of problem solving which helps in understanding the issues in the system. Adoption of system thinking model has various advantages such asreductionism,analyticalanalysis,causeandeffectthinkingandcomplete determinism.Thebiggestdisadvantageofthismodelisignoranceofinter relationships andrunning of existing policies and plans of the organization. Hence system thinking is used by businesses in order to contribute in controlling and planning of activities ( Wiegmann and Shappell,2017). Internal and external factor impact on Business System The theory of constraints is “a management paradigm that views any manageable system as being limited in achieving more of its goals by a small number of constraints”. The focus of this theory is on the aspect that the chances of achievement of goals by a goal-orientedof external and internal factors.
6 ( Seddon et.al,2017). The continuous improvement method to increase throughput in any system of value creation known as five steps of TOC: that starts with identifying the constraint this is focus on improvement area, second step is optimize the constraint this means doing everything possible to remove any constraint, third step is subordinate the non-constraints that means improvement of whole system, and last two steps are elevate the constraint and return to first step ( Seddon et.al,2017). External factors Technology exploitation is the main threat that impact on the processes and business systems as any changes in technology such as virtual facility management, cloud technology and improving broadband capabilities leads to changes in design of system and up gradation of systems to the latest version ( Daniel et.al,2018). The stakeholders are the one who impact on the business processes as they dominate the social and programmatic areas.Some of external constraints are legal restriction on using of some information and changes in the legal factors such as data security and many more. All that influence on the processes and business systems. Internal Factors Internal factors include organizational structure and motivation factor of employees. As any change in the organization structure leads to change in the processes and business systems used by the company as the systems and processes are made and installed according to the organizational hierarchy.
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7 Further,differentlevelsofinteroperabilitysuchasfoundational,semanticand structural interoperability. Any changes in these areas lead to change in the processes and business systems ( Chang,2016). People are also the internal factors that impact on the processes as perception, mindset and motivation level of people are the drivers to bring efficiency in the business processes and business systems ( Seddon et.al,2017). Policies are the written and unwritten rules of the organization that impact on the systems and any changes in policies leads to change in types of business system to be used by the company. Constraints and benefits of impact The constraints that are no longer is limiting factors is considered as breaking a constraint and taken as the benefit for the processes and business systems.Some of constraints are changing technology, legal restrictions and environmental issues. Any changes in these areas leads to changes in business processes and systems that hinder efficiency of the processes and reduce productivity or performance of employees as any change in processes impact on the final outputs ( Chang,2016). Some of the benefits of internal and external factors on business processes are familiarity of the organization with new technologies that leads to competitive advantage to the firm and use of up dated systems in the organization. Other benefits can be changes in the perception and mindset of people that leads to acceptance of changing processes and leads to benefit of continuous improvement for the organization. It is concluded from the analysis that business systems are the combination of plans and policies that help in to coordinate business activities. Further, there are different types of business systems that help the company to bring efficiency in its operations. At last, theory of constraints is used that focus on the concept that there is always some barrier that affect the business systems.
8 For LO3 and LO 4 In order to understand the techniques and tools that are used by organizations to improve efficiency of business systems and organization is selected that is “Tesco”. Further, the report includes application of these tools and techniques in improving efficiencyofTescobusinesssystemsandafterthatconsideringalltheaspects recommendations are given to Tesco for improvement of business systems in order to improve organizational performance and quality. Different techniques and tools There are different tools and techniques that can be used by the business in order to improve efficiency of business systems and to fix bugs that are limiting factors in the growth and sustainable performance of the organization. Some of tools are: Process Mapping: The business process mapping is a tool that includes all the activities that businesses do such as scale of business entity, operations, who is responsible and includes all business processes performed by business (Aithal,2016). A business process diagramand map consider specific objective and compare and measure whether processes are aligned to organizational objectives, and with the company’s capabilities or not. This techniques includes identification of processes and present it in a map and then analysing of each process in order to identify whether processes are adding values to attainment of final output or not. Through this techniques business processes and systems can be improved as any process that does not add value to the final output can be eliminated and that resultant in the improving efficiency of operations in the business (Dennis et.al,2018). Systems Analysis:This is a technique that includes analysis of all parts of systems. System analysis is considered as the “process of studying a procedure in order to identify its purposes and goals and create procedures and systems that will achieve them in an efficient way”.On the other side, system is divided into sub systems and analysis of its each component is done in order to know whether all parts are working well or not to interact or accomplish the final goal ( Wiegmann and Shappell,2017).
9 Stakeholders Analysis:The stakeholder analysis is a tool that is used by most of organizations in order to know the expectations and needs of its stakeholder from the business.It is considered as the process that that provide detail about the projects and its stakeholders and impact of this project on its stakeholders.With the help of this tool, the business systems can be improved as the changes might be done in the processes and business systems so that organizational objectives can be achieved. Further, the businesses can use this tool toreduce the negative impact of its processes and systems on the stakeholders andthis leads tocontinuous improvement in the processes and resultant in efficiency of business systems ( Eskerod and Larsen,2018). Reverse Engineering:Reverse engineering is termed as the process by which the manmade object is deconstructed to reveal its architecture, design and knowledge about natural phenomena.Reverse engineering is a tool that is used by the businesses in order to identify systems that are obsolete, to know issue of interoperability and to know hoe products and processes works and what changes need to be done in these processes in order to solve the issues ( Kast and Rosenzweing, 2016). This technique is helpful in reusing of objects that are obsoleted and these obsolete are used in different manner or useful manner in the organization. The purpose of reverse engineering is to make new products at the cheaper rate,creating software interoperate effectively, to bridgedatabetweendifferentdatabasesandoperatingsystems;andtouncoverthe undocumented featured of a product ( Woods,2017). Hence, from the above analysis it can be said that the businesses can use above stated techniques and tools in order to improve efficiency of business systems. As each tool helps in to analyse the systems parts or components so that any improvement can be done that leads to achievement of goals and ultimately bring efficiency in the business systems. Application on Tesco Tesco is the largest global grocery retailer in the UK, and the company used many business systems in order to ensure smooth operations and to improve efficiency in the organization. As the company operates in the large scale, thus business systems play an important role in its operations.The big players like Tesco has to deal with masses of data and use that data and convert it into information and use that information for decision making and to manage
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10 resources like man, power, money and machinery.Business systems are essential for the survival of the big players in the market (Aivalis et.al,2017). Tesco used different business systems in the organization such as inventory management system, supply chain management system, accounting system, human resource management system and marketing system. Oracle Retail Warehouse management system Oracle Accounting Hub Oracle Marketing system Oracle HR These systems used by Tesco can be analysed and can be improved through using tools such as system analysis, process mapping and stakeholder analysis. Process mapping starts from identifying steps that are performed in the organization. The processes that are performed in Tesco arefirstly procurement of inventory and this is done using inventory management system, second is production planning system that helps in planning for production processes in the organization, next process is warehouse management in order to do that the company useretail warehouse management system (Gronwald,2016). The issues that are identified in inventory systems are errors by employees, stock outs in its major outlets and over inventory, this reduce the efficiency of Tesco as operating cost increases. Further,due to issues in inventory management processes, the retail warehouse system also get affected as the final output handling become costly for the company. Hence the issues that are found in Tesco through process mapping can be solved and this can improve overall performance of the organization (Sarangi,2016). Stakeholder analysis of Tesco includes impact of the processes of Tesco on the stakeholders; the stakeholders of the company are employees, executives, shareholders, competitors, suppliers and creditors.This analysis is done to know whether the company is considering the needs and demands of stakeholders in its business processes and whether these systems integrate with the stakeholder’s expectation or not. Some of conflicts that are identified from the stakeholder analysis of Tesco are expectation of payment on time, as the company deliberately delaying the payment of suppliers in order to improve its financial position. Another conflict is between shareholders, as shareholders expect higher return on its share but Tesco is cutting the pay of employees and colleagues in order to improve the shareholder
11 value.Hence, in order to solve these issues that are identified from the stakeholder analysis changes need to be done in the business processes and business systems. System Analysis is a tool that is used by the company to fix the bugs in its systems. The system includes supply chain, distribution system, warehouse system, retail system, human resource system, marketing system and procurement system. The issues that are identified in thesystem analysis andneed to be fixed on time in order to improve efficiency of the company includes marketing issues such as use of digital platform in attracting more customers as the big data technology of the company is not working efficiently in order to attract more customers.Distribution system of the company include bugs like issues in packagingandlabellingoftheproductsasthecompanynot switchedtosustainable packaging and eco-friendly packaging.The company use to ensure that distribution system of the company need to change as per the changing regulations of the government. Recommendations From the above analysis of Tesco business systems and processes and by using tools such as stakeholder analysis, process mapping, and system analysis it is found that Tesco is facing many issues in its processes and system. Some of the issues that are identified by using above tools are errors by employees in inventory recording, supplier’s conflicts and shareholder conflicts and the issues in the distribution and supply management systems.Further, it is identified that the company is facing issues in its marketing system because of inefficient use of big data.The business processes and system can be improved, and efficiency can be achieved through reduction in costs, improve experience of customers, risk reduction and when management of the business activities become easier (Brestoff,2019). It is recommended to Tesco that the company can improve its business performance and efficiency by focusing on the concept of continuous improvement. Tesco issues related to inventory management systems can be fixed by reducing the human error and this error can be reduced by using artificial intelligence in its processes such as use of robots in order to enter data related to inventories. This fix the bug of human error in the organization and its impact can be reduced in other processes and systems. With that retail warehouse system c issues also improved ( Shenoy and Rosas,2018). Further, it is also recommended that Tesco should use devices that help in to fix the accounting issues such as account payable issues and issues that are identified through using
12 stakeholder analysis. The issues of supplierspayment can be solved by using the automatic software and bio metric devices that helpin to access by one party to the cash flows of the company and through that on person can pay bills on time to suppliers with just a one click. Conclusion It is concluded from the above report that there are different tools and techniques that are used in order to improve the efficiency of business systems such tools are stakeholder analysis, process mapping, reverse engineering and system analysis. These tools are best applicable in order to identify issues and bugs in the organization. From the above report and from application of these tools on Tesco several issues are identified in the business systems and business processes of the company that are human error in inventory management system, wrong records in warehouse retail management system,and supplier payment issues. These issues can be fixed by using automatic intelligence, updating system on timely mannerandbyensuringcustomizationofsystemsinordertofulfilexpectationof stakeholder. It is concluded from the analysis that business systems are important part of any company as this helps in to improving the processes and performance of the company. Hence, business systems are affected by many internal and external factors and need to be analysed using different tools.This report describes the application of techniques and tools of business systemon Tesco and some recommendations are also given to Tesco to improve efficiency of business systems of the company.
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13 References Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies, operating concepts & business systems.International Journal in Management and Social Science,4(1). Aivalis, C.J., Gatziolis, K. and Boucouvalas, A.C., 2017. Innovations in E-Systems for E- Commerce. InInnovations in E-Systems for Business and Commerce(pp. 301-337). Apple Academic Press. Appelbaum, D., Kogan, A., Vasarhelyi, M. and Yan, Z., 2017. Impact of business analytics and enterprise systems on managerial accounting.International Journal of Accounting Information Systems,25, pp.29-44. Brestoff, N.N.E., 2019.AI Concepts for Business Applications. Business Expert Press. Chowdhury, S. and Salahuddin, K.M., 2017. A Literature Review of Factors Influencing Implementation of Management Information Systems in Organizations.International Journal of Business and Management,12(8). Daniel, S., Midha, V., Bhattacherhjee, A. and Singh, S.P., 2018. Sourcing knowledge in open source software projects: The impacts of internal and external social capital on project success.The Journal of Strategic Information Systems,27(3), pp.237-256. Dennis, A., Wixom, B.H. and Roth, R.M., 2018.Systems analysis and design. John wiley & sons. Eskerod, P. and Larsen, T., 2018. Advancing project stakeholder analysis by the concept ‘shadows of the context’.International Journal of Project Management,36(1), pp.161-169. Gronwald,K.D.,2016.IntegratedBusinessInformationSystems(Vol.20).Springer, http://www. springer. com/us/book/9783662532904. Accessed. Kast,F.E.andRosenzweig,J.E.,2016.SystemConcepts:Pervasivenessand Potential.Management International Review, pp.87-96. Sarangi,S.,2016.Businessintelligencesystems:Anecessityforagilesupply chains.Parikalpana: KIIT Journal of Management,12(2).
14 Seddon, P.B., Constantinidis, D., Tamm, T. and Dod, H., 2017. How does business analytics contribute to business value?.Information Systems Journal,27(3), pp.237-269. Shenoy, D. and Rosas, R., 2018. Inventory Control Systems: Design Factors. InProblems & Solutions in Inventory Management(pp. 13-32). Springer, Cham. Sikdar,S.K.,Sengupta,D.andMukherjee,R.,2017.Sustainabilitymeasurementfor technologyandbusinesssystems:Useofcurrentlyavailabletoolsforquantification. InMeasuring Progress Towards Sustainability(pp. 93-127). Springer, Cham. Sundström, G. and Hollnagel, E., 2017. Learning how to create resilience in business systems. InResilience Engineering(pp. 235-252). CRC Press. Wiegmann, D.A. and Shappell, S.A., 2017.A human error approach to aviation accident analysis: The human factors analysis and classification system. Routledge. Woods, D.D., 2017.Resilience engineering: concepts and precepts. CRC Press. Chang,J.F.,2016.Business process management systems: strategy and implementation. CRC Press.