This case study explores the use of management information systems in ASOS, a British online fashion retailer. It covers various functional business units, internal structure, levels of information, and technological solutions.
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Table of Contents INTRODUCTION...........................................................................................................................1 Question 1........................................................................................................................................1 A) Selected industry...................................................................................................................1 B) Selected Organisation............................................................................................................1 C) Description of chosen organisation.......................................................................................2 D) Web address and screenshot of home page............................................................................2 Question 2 (LO: 1)...........................................................................................................................3 Various functional business units and internal structure of the company..................................3 Question 3 (LO: 2)...........................................................................................................................7 Levels of information i.e. Operational, tactical and strategic data............................................7 Question 4 (LO: 3)...........................................................................................................................9 Suitable technological solution..................................................................................................9 Data warehousing, data mining and data analytics options.....................................................10 Question 5 (LO 4;5).......................................................................................................................11 PELS consideration..................................................................................................................11 CONCLUSION.............................................................................................................................12 REFERENCES.............................................................................................................................13
INTRODUCTION Management information system is basically a computer system that consists a large number of software and hardware and serve as a backbone of operations of organisations. MIS is used by organisation to perform its operation more effectively as MIS facilitates gathering of data from multiple or various online systems, analysis the gathered information and also reports this data to management to aid in decision making process(Gupta, Kannan and Sanyal, 2018). Thus, the main purpose of MIS is improving decision making through providing authentic, accurate and up to date data on various organizational operations and assets. For this case study the selected organisation is ASOS which is a British online cosmetic and fashion retailer. In this case study various functional business units and internal structure of chosen company is presented. Beside this, this report also include a difference between operational, tactical and strategic data. Further, operational database, CRM technologies and other technological solutions are also included. At last, professional, ethical, legal and social considerations are also presented in this case study. Question 1 A) Selected industry For this case study, online shopping or e-commerce industryis selected which is basically deals as a online shopping retailer ofclothing, fashion and cosmetic items. The main purpose of choosing this industry is that, the fashion and retail sector isgrowing with a rapid speed and many new innovations and changes are getting in that industry(Piercy, 2018). Beside this use of online shopping app to increase the sales and making it more convenient for both buyers and sellers is also an attraction behind selection of this retail and clothing industry. B) Selected Organisation The organisation selected for meeting the objectives of this case study is ASOS company which is a well known British fashions and cosmetic retailer and operates its business as a online shopping store. The main reason for selection of this organisation is that it provide a detailed information about how an organisations is making use of latest technology and information system to have better accessibility to its customers and to conduct a business with more efficiency and better growth and success rate. 1
C) Description of chosen organisation ASOS plc is a global, internet, fashion retail business that offers branded and own label productsacrosswomen-wearandmenswearandoperatesanddistributesitsproductat international level (ASOS,2019). ASOS company was founded in 2000 in London, UK and its main target are young adult generation from the age group of 20-35 years. ASOS is considered as global fashion destination for a range of things and currently sells over 85000 branded and own label product through localized mobile and other web experiences. ASOS plc offers approximately 75000 separate ranges of clothes, spanning women's and menswear, footwear and all other fashion accessories along with jewellery and beauty collections. The Company's collection of specialist own-label lines includes ASOS Curve, ASOS Maternity, ASOS Tall and ASOS Petite(Liebowitz, 2019). ASOS is having its centre at UK but providing facility of online shopping for its product in different regions of world which includes the United States, Europe and also operates returns centre in Australia and Poland, beside this ASOS is also having country specific websites in Australia, France, Germany, Italy, Spain, Russia and the Unites States. To have better market share and customer base ASOS caters a range of customers segments and provides its product at different sizes across all categories and price points. D) Web address and screenshot of home page ASOS is a unique, multi-platform experience that truly resonates with the people who use it, because it’s built by them. It’s a place to which is having its own style and thus,inspired to shop (ASOS,2019). The tag line of ASOS plc is “ We are authentic, Brave and Creative”.The screenshot of home page of ASOS plc is provided below: 2
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(Source: Home page of ASOS plc, 2019) Question 2 (LO: 1) Various functional business units and internal structure of the company The ASOS is having a functional internal structure where its business units are categories on the basis of its function(Ghosh, 2019). The main functional business units of ASOS along with the description of data used by them is provided below: 3 Illustration1: Home page of ASOS plc, 2019
Illustration2: Functional units of ASOS plc, 2019 (Source:Functional units of ASOS plc, 2019) Marketing unit-This function of ASOS plc is relayed with identifying and developing successful product on the basis of analysis of a particular marketplace to counter or fulfil the needs of customers (Business function,2019). The main aim of marketing is to promote and differentiate its product from other similar products available in the market for attracting a larger section of customers. The functions of marketing unit is performing marketing research, making andimplementingmarketingplanandotherstrategicalplanningrelatedwithproduct development, market development, market penetration. Along with this, marketing unit also take care of advertising, distribution for sale, pricing, after sales customer service and public relations. Thus, the ingoing type of data for marketing unit includes the data or information gathered from market research and related with taste and preference of customers and current trends of market(Hassan and Mathiassen, 2018). The out going type of data is related with the content and information transferred to customers about the product and organisation to attract them for making purchase of product form ASOS plc. Thus, a huge amount of databases is maintained by marketing department of ASOS. Production unit- The main function of production unit is related with manufacturing and design of best quality product. In ASOS plc the production functions is responsible for manufacturing of best quality clothes, cosmetic items and other accessories in which it deals. The productiondepartmentneedstokeepadatabaseabouttheunitsandtypesofproducts 4
manufactured to have a record of article produced. This report and database helps in maintaining a balance between demand and supply of products of ASOS plc and also keeps a record of productivity level and efficiency of workforce(Martell, 2018). The inflow data of production department includes information about stock and inventory purchased and its outflow data include information about product manufactured and distributed and sold to customers thus, keep a check on movement of raw material and product thus, provide better control on wastage of resources and theft of products. Personnel or HR unit- The function of personnel unit is to recruit a most talented and suitable individuals and employees for an organisation. The record and data maintain by this unit is related with the attendance, management and personal detail of employees. Timely records and reports related with amount salary, incentives and other perks is also maintained by this unit. Finance unit-This main function of finance unit is to maintain reports and budgets related to all day to day financial transaction which is necessary to calculate and generate the profit of organisations. The main aim of finance unit is keep a record of all income and expenses of ASOS plc so that better control can be made to reduce the cost of production and other operation(Towill, 2018). Thus, timely record and databases about the various expenditure and cost incurred is maintain by this unit and plays an important role in preparation of financial statementandbalancesheetwhichreflectstheactualspositionsandperformanceofan organisation. The hierarchical representation of management of ASOS plc is provided below: Top management In top management of ASOS plc its board of directors, managing directors and general managers are included which are having the responsibility of formulation of plans and polices and other strategic activates are also conducted by them for having better growth and success. Middle management In middle management of ASOS plc, branch manager, production manager, marketing manger, finance manger and personnel manager are included who are having responsibility of management of their specific functional unit and are responsible for guiding and directing employees and workforce for achieving better result and performance(Simpao and Rehman, 2018). Lower management 5
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It is the lowest level management in which the foremen, office superintendent, floor supervisors, decrements heads and all other employees and workers of ASOS plc are included. They are the one who are responsible for actual execution and implementation of plan and policies formed by top management(Derr and DeLong, 2018). Illustration3: Level of management of ASOS plc, 2019 (Source: Level of management of ASOS plc, 2019) Screenshot of Website for functional unit of a business as an evidence Illustration4: Business functions, 2019 6
Illustration5: Main business functions of ASOS, 2019 (Source: Main business functions of ASOS, 2019) Question 3 (LO: 2) Levels of information i.e. Operational, tactical and strategic data The three broad concept and level of data that are used in ASOS plc are described below: (Source : Levels of information in ASOS plc, 2019) Strategic data 7 Illustration6: Levels of information in ASOS plc, 2019
This type of data is of great importance and needed for long range planning and formation of policies of a business. Thus, strategic data is used byTop managementof ASOS plc to make plans for company and also ensure achievement of business objective with the help of executive support system. Growth in population of target market and current market scenario are the example of strategic data which is required by top management to decide and determine long range goals for whole organisations(Paszko and Turner, 2018). Thus, strategic data is concerned with long term planning and is helpful for top management in taking business decisions that are mainly unstructured and less frequent. Tactical data Tactical data is mainly used for short range decisions making to run a business more efficiently and thus, mainly used and created bymiddle management. Sales analysis, annual financial statements, etc. are the examples of tactical data used and developed by middle management of ASOS plc for short range planning i.e. for around some months. Use of tactical data is made by middle management of ASOS plc for having effective use and allocation of resources while execution of any project and also provide a better control to effectively execute or implement the plans made by top level management. Operational data Operational data is mainly required by ASOS for a short term or to keep records of daily operations of business. It includes data related with day to day business activities like records of employees absent from work(Kreps, 2018). Operational data is considered lowest level data and is mainly related with operational planning ans execution of tactical plans. This data is used and crested by thelowest level of managementhierarchy or workers for effective implementation of a operational plans. The time scale of operational data is also very short mainly related with day to day performance and extended to a week or a month. Operational data is related with internal control and operational environment and includes information such asdata about workforce of ASOS plc, direct competitors of ASOS, creditors, suppliers and information on customers of ASOS plc. Apart from operational data of ASOS plc also includes remote environmental data and industry data. Thus, in ASOS plc operational data is mainly related with the execution of a plan and policies with workforce. Operational data is used by lower level management to ensure that planed task are carried out properly in ASOS plc to achieve the desired targets on time. Difference among operational, tactical and strategic data 8
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Operational dataTactical dataStrategic data This data is mainly created and usedbylowestmanagement thatincludesworkersand other supervisors. Thistypeofdataismainly relatedwithoperationsand functionsofmiddle managementwhichincludes mangers and heads of different functions(Kumar, 2018). This data is mainly used for planning purposes thus, related withtopauthorityor managementlikeboardof directors, chief executives, etc. Operationaldataismainly relatedtoatimeperiodof single day to a week or month Tactical data is mainly related withatimeperiodofone month to a year. Strategic data is mainly stored and keptfor more thanone year. Operational data is one which isrelatedwithdaytoday operations of an organisation likeinformationrelatedwith numberofemployeesabsent from their work on a particular day. Main focus of operational dataisonexecutionand implementationofplansand policies through workers. Tactical data is the one which is related with the cations steps andcontentrelatedwith procedure of execution of plan whichincludeseffective communicationfordirection andguidingemployeesfor their effective management. Strategic data mainly include information related with long termplanninganddecision makingandfocusedon preparationofplansand policies(Tan, 2019). Question 4 (LO: 3) Suitable technological solution For achieving better efficiency in its functions and to get most suitable technological solution of business issues related with management of data and information use of following applications or concept can be made by ASOS plc: Operational database and CRM technologies and products Operational database management system is mainly used by organisations to up date data and information in real time thus, allow an easy way to modify and change data for ensuring data consistency and reduce the case of failure or concurrent access data(North and Kumta, 2018). 9
CRM software is a set of application that is used to manage different process of organisation and also provide easy assess to important information. CRM is basically a management approach that aim at creating, developing and enhancing relation with targeted customers and all other stakeholders and related party to maximize corporate probability and maximize customer value. CRM is mainly concerned with utilizing information technology to effectively implement relationship marketing strategies. A CRM solution facilitates better organization’s relationships withindividualpeopleincludingitscustomers,serviceusers,colleaguesandsuppliers throughout the complete life cycle of business thus facilitates finding new customers, winning their business, and providing support and additional services throughout the relationship. Use of this CRM system must be made by middle management which includes manager and department heads as it helpful in maintaining better relation with customers and other stakeholders which is a important function of mangers thus, facilitate companies to stay connected with its customers, streamline processes, and improve profitability(Gürdür and Asplund, 2018). Use of operational database can be recommended for lower level management as they needed to modify and update on a frequent basis to meet the current working conditions. Data warehousing, data mining and data analytics options Data warehousing is a process of constructing data and integrating this data with multiple heterogeneous sources to support analytical reporting, hoc and structured queries and decision making. Data warehouse is an important concept which includes data integration, data cleaning and data considerations. On the other hand data mining is related with exploration and analysis of data to discover and evaluate meaningful pattern and rules from a large data. Data mining techniques are used by an organisation to build machine learning models and also make use of AI application for effective operations(Gupta, Kannan and Sanyal, 2018)(Piercy, 2018). Further, data analytics is a process that is used to draw conclusion about any information with the aid of specialized systems and software. ItisrecommendedthatlowermanagementofASOSplcshouldmakeusedata warehousing and data mining process for having garter effectiveness in its production process through integrated data among all branches. Use of Data analytics should be made be made by top management as it facilitates more informed business decisions through making use of specialised software which are based onscientific models, theories and hypotheses. Cloud based and out sourced data management platforms and services 10
Use of cloud computing is made by organisations to have cloud based and out sourced data management platforms and services which provides subscription based service and offers demand network access to a shred pool of configurable computer resource which include network application, servers and storage(Liebowitz, 2019). Use of cloud computation is recommanded to ASOS plc as it lead to cost savings, increased productivity, speed and efficiency and also yield better performance and security of data thus, it is recommended for top management of ASOS plc. Web based mobile access to all these platforms To provide better services and 24/7 hour assess for relevant information, ASOS plc should provide a web based mobile assess to all its application to its employees, so that they can perform their task smoothly without any delays and waiting for assess to relevant data(Ghosh, 2019). At the same time effective control and safety measure should also be implemented by ASOS plc to maintain the authenticity and safety of data. Question 5 (LO 4;5) PELS consideration Before making use of MIS and other IT system, ASOS must considered following aspects: Professional considerations- The professional considerations is related with avoiding conflicts of interest with clients, maintaining clients confidentiality and avoiding contributing to perception of unlawful acts. Thus, implementation of MIS and other software in ASOS plc must provide due consideration to confidentiality and interest of clients and customers(Hassan and Mathiassen, 2018). Use of MIS through ASOS plc must aim atStriving to achieve the highest quality, effectiveness, and dignity in both the process and products of professional work along with accruing and maintaining professional competence. Ethical considerations-Use of IT in business has increased the related issue of privacy andsecurity.Thus,implementationofMISandothersoftwarebyASOSgivedueto considerations to provisions of BCS code of conduct whichstates that IT professionals should develop their professional knowledge, skills and competence on a continuing basis, maintaining awareness of technological developments, procedures, and standards that are relevant for their 11
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field and should maintain the authenticity, trustworthiness and security of data of clients (Martell, 2018). Legal considerations- It is related with fulling legal provision and act related with protection of data. Thus, the MIS andother systems of IT adopted by ASOS must gave consideration toUK data protection act,1988. This act aim at defining the ways in which information about any living or dead people should be largely use , handle and mange through any organisation. The MIS and other IT software used by ASOS must intent to protect individuals and its clients against misuse abuse of information. Social consideration- It is related with overall security and safety of society. With the use of MIS and other online data storage techniques like cloud computing cases and threat of hacking and other social issues related with lack of personal data has increased(Towill, 2018). Thus, ASOS must provide due consideration to maintain the confidentiality and security of data to safeguard the overall society and its clients from threat of cyber crime to maintain a good and positive atmosphere in society. CONCLUSION From the above case study it can be concluded that online shopping industry provide convenience to both buyer and seller trough reducing barriers of location thus,lead to better success. The various functional unit of an organisation include marketing, finance, production, etc. and use of various form of data is made by these functions.The main types of data i.e. operational,tacticalandstrategicdataarefoundinanorganisations.Furtheritcanbe summarised that use of various application like CRM, cloud computing, etc. are made by organisation to found most suitable IT solution. At last, it can be concluded that MIS and other IT software must provide consideration to professional, ethical, legal and social aspects to maintain authenticity and security of data. 12
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