Management Information Systems Report

Running head: MANAGEMENT INFORMATION SYSTEMS
MANAGEMENT INFORMATION SYSTEMS
Name of the Student:
Name of the University:
Author note:

1MANAGEMENT INFORMATION SYSTEMS
To
The Board of Directors,
AAT Kings,
82-86 Bourke Road,
Alexandria, NSW 2015, AU,
Subject: Implementation of the ERP system in Business
Respected Sir or Madam,
This is to make you aware of certain facts regarding our business. I will be very happy to
inform you that our business is currently doing well in almost all the sectors, but I would like to
draw your attention towards the operations sectors which is not allowing the employees in
performing certain tasks; thereby reducing the services to the customer drastically. All most all
the operation in our business is operating with the help of the internet, this is the reason we are in
a desperate need of an information system. The performance of the business can be improved
considerably with the implementation of the information system. A high yield can be obtained
from the business due to the implementation of a resource planning system in the organization.
This report is to discuss the implementation of Enterprise Relationship Planning, commonly
known as the ERP system, in the organization which will lead to a high rate of customer
satisfaction. With the emergence of the information system and the online services, the customer
demands have increased as well. Introducing the ERP system will be extremely beneficial in this
case.
The ERP system has numerous benefits and one of the greatest benefits is the ability to
handle any task at once. The multitasking system is benefits a business by providing them more
time to focus on other matters. The next most important feature of the ERP is the ability to make
decisions, and as we all know that decision making is one of the toughest parts of the business.
Much other reputed organization has utilized the technology and have witnessed tremendous
improvement in their esteemed organization.
I, hereby, request you to consider my opinion and approve the idea of implementation of
the ERP system in the organization. We need you as our sponsor for this project. The proposal
regarding the ERP system is attacked along with this report which will help you to make proper
decisions regarding the implementation process.
Thanking you,
Sincerely,
Simon Batson,
Lead IT, developer,
AAT Kings

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Executive summary:
With the introduction of the information system in the business organization, huge
development has been achieved. The rate of the operation increases as the internet is swift and
less time-consuming. Information technology serves as an excellent mode of communication in
the hotel industry sector. This information system and technologies help in business development
by increasing the efficiency of the workforce along with the workplace. This research proposal
mainly deals with the implementation of the ERP system in an organization and measure the
effectiveness of the system in the work-place. The customer requirements can easily be fulfilled
with the introduction of the ERP system in their workplace. Customer satisfaction can also be
raised. The proposed system should be implemented securely by following the mentioned SDLC
cycle.

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Table of Contents
Executive summary:........................................................................................................................2
Introduction:....................................................................................................................................4
Discussion:.......................................................................................................................................4
Organization background:...........................................................................................................4
Opportunity and Problems of IT and IS:.....................................................................................8
SDLC Cycle:..............................................................................................................................10
Post Implementation analysis:...................................................................................................12
Project Risk and Change Management:.....................................................................................12
Conclusion:....................................................................................................................................13
References:....................................................................................................................................14

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Introduction:
The past few decades have witnessed a huge development of the technology. With the
introduction of the information system in the business organization, huge development has been
achieved. The day to day activities and goals in the IT is achieved with the help of information
technologies. The entire business process has been upgraded globally, and almost the entire
process is conducted over the internet in the hotel and tourism industry nowadays. The rate of the
operation increases as the internet is swift and less time-consuming. Information technology
serves as an excellent mode of communication in the hotel industry sector. The customer or the
clients prefer communicating over live chats for the clarification of their needs. With the help of
technology in the tourism sector, the process of decision making becomes easier. Numerous
Information systems are readily available for adoption and have multiple benefits in the business
sector. This information system and technologies help in business development by increasing the
efficiency of the workforce along with the workplace.
In this report, we will discuss Enterprise Resource Planning (ERP) in AAT Kings, which
helps in the development of the business which will result in customer satisfaction. The report
also discusses the problems which may arrive due to the implementation of the information
system in the organization, the SDLC life cycle, Post Implementation Analysis and risk, which
may arise as well. This will help in making decisions regarding the implementation of the ERP in
AAT Kings.

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Discussion:
Organization background:
AAT kings is tour operator which aims to help people by offering best tour guide to
them. They main operate in Australia and New Zealand. The concerned business provide a
variety of holiday option for individuals which include Guided Tours, Day Tours and Short
Breaks. The business is well known for its holiday packages. The business was started in the year
1912 and has expanded in these recent days. The selected business is continuous improving its
performance by delivering the best quality tour experience to its tourists. The vision of this
organization is make people familiar with every areas of Australia and New Zealand. The
mission of the chosen business to share New Zealand and Australia with their clients as well as
to bring New Zealand and Australia together. The organization operate to represent each and
every areas of both the countries. The business comprises of three kinds of authorities like Driver
Guides, Local Guides and Travel Directors.
SWOT Analysis
Strengths
 Higher sustainability and
consciousness.
 People opinion of AAT kings as the
best destination for having the tour
experience all over Australia.
 Best atmospheric ambience
Weaknesses
 The services cannot be recognized and
detailed in a proper manner.
 Investment deficiency.
 Deficiency of proper ERP system
operations and maintenance.
Opportunities Threats

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 More business opportunities through
proper usage of the ERP systems.
 Catching people’s attention in a
developed way
 Economic Disaster
 Higher Market Competition.
Strengths: In these recent days, the crime rate of Australia becomes low which helps the citizen
of Australia to freely have a destination trip with AAT kings. Therefore, it allows the business to
have customers and retain the existing customers in their business. People are showing higher
sustainability and consciousness regarding their destination spot in AAT Kings. AAT kings is
following efficient conservation and environmental values (Dumas et al. 2013). Moreover, the
business is ready to adapt the ERP activities and operations.
Weakness: Numerous discussions regarding the management issues were raised and these issues
can disallow the business to implement the proposed system in their workplace. The
implementation requires huge support and help from the management. Numerous people face
difficulty in understanding various holiday packages. This can also hamper the business revenue
due to the loss of business revenue.
Opportunities: An effective implementation and usage of the ERP system in the workplace of
AAT kings will allow the business to improve its business performance. The ERP system will
provide multiple opportunities to the business by providing various aspects to develop its
services for the customers (Jeston 2014). The ERP system can also be helpful in catching
people’s attention. This allows the business to involve more people in their business.

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Threats: ERP adaptation can increase the threats of the business. The business can face frequent
data leakage. As the ERP system collects every data and stores them in a central location thus, it
will become easier for Phishers to trigger their attack. Moreover, the organization requires
skillful staff to manage the concerned system and perform ERP operations (Yang et al. 2013).
Porter’s 5 forces:
The threat of Substitution: The tourism industry is highly threatened due to the substitution
because people have numerous options to choose from their adventure or journey. This becomes
a frequent challenge for the AAT kings.
Bargaining Power of Buyers: Bargaining is a critical factor for the tourism industry. In tourism
businesses, people always prefer low price adventure. The AAT Kings always try to deliver the
best services to the tourist but it becomes harder for the business to approve the bargain of the
tourist. The cheaper can exploit the service of AAT kings (Sudo et al. 2014). This can result in
decreased customer satisfaction levels.
Rivalry among the existing competition: The tourism industry often faces high competition in
their market which disallows them to perform in a better manner (Hartley, Sørensen and Torfing
2013). When customers are analyzing the market scenario they are always preferring for the low
rate of hotels. This increases the competition in the tourism industry.
The threat to new market entry: The impact of new business on the AAT kings is low as it
consumes time for a tourism business to expand its business and thus, have a low impact on the
AAT kings. The ERP operation can be performed in a better way by the AAT kings than the new
market entry (Condratov 2013).

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Bargaining Power of Suppliers: The employees acting in the tourism industry are the primary
suppliers for the tourism business. Therefore, AAT kings is not threatened with the bargaining
power of Suppliers. This factor also depends on the cost structure of the business.
Opportunity and Problems of IT and IS:
Any business is prone to problems. With the emergence of new technologies, the
problems keep on arising in the organization. Our organization is continuously facing problems
regarding the system of information and needs a new information system which is capable of
doing numerous task at once (Shaul and Tauber 2013). For that, the ERP system is suggested for
the organization. Technology helps in enhancing the customer satisfaction and deliver good
business results. The contemporary management process of AAT Kings is highly complicated.
Thus, when a problem arises in the organization, the entire operation has to be delayed due to
that. With the introduction of the ERP into the system, the management information system
becomes much easier. ERP system can be used to ease up the management process.
The management is responsible for making decisions in the organization. With the
emergence of the ERP system in the business, the process of decision making becomes easier.
This is because ERP is capable of making decisions based on the data that is provided to it. ERP
system comprises of multiple software which is capable for multi-functioning (Leon 2014). It
can store, process, load, and present data. It is often termed as integrated software because of its
ability to present a complete set of data after performing all activities on it. ERP is not only a
system for storing and processing the data, but it is also used for tracking certain important
elements of the business, as the transaction including finance and other critical data transactions.

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The contemporary business has human resources for the process of dealing with the
databases. Human is prone to make mistakes. With the ERP system introduced in the company,
error-free calculations and results can be delivered within a very short notice. The proposed
system works on numerous networks and hardware configurations. Hence, it can be said that the
problems of the system which arising due to certain deficiency in it can be solved with this
technology usage.
One of the most difficult part of the business is the process of decision making. ERP is
capable of making decision on the behalf of the organizational data (Chandurkar et al. 2013).
With the power of proper decision making, AAT Kings is expected to perform better than before.
The overall business of the tourism sector depends upon the relationship of the organization with
the customer and it can be developed with ERP. The benefits of the ERP system which will be
implemented in AAT kings is discussed below:
 Less error: ERP is completely automated and runs without human intervention. Error-free
results can be delivered with the help of the ERP system as the entire process is unified
and follows a sequence. The redundancy of the data is a major issue of the organization
which can be resolved with the help of the ERP system (Matende and Ogao 2013).
 Reduction in the cost of operation: Previously, for updating databases and provide results
of searches, people have to appointed and stationed in different locations of the
organization. With the implementation of the ERP system, the entire process will be
automated. That is a lesser number of people have to be hired in order to serve the
customers (Shen, Chen and Wang 2016).
 Data security and quality: ERP reduces the chance of data loss from the system which
enhances the security of the data. The hotel databases consist of the details of the

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customers and other critical information like the transaction id and many more. Those
data, if lost or tampered with, can be fatal for the organization and the customers (Tarhini
et al. 2015). ERP has advanced security protocols that ensures the safety and integrity of
the data.
 Services to the customer: Information from the Client is streamlined and
centralized, the sales team will be able to put their complete focus on the
customers rather than the databases. Customer relationships can thus be enhanced
with the help of this technology.
 Improved Efficiency of Business: Enterprise Resource Planning is used for the purpose of
the hotel business is capable of identifying the places where the assistant is needed. The
entire system will be able to run smoothly as the ERP takes the major responsibilities like
decision making (Ismail et al. 2013).
There are certain drawbacks of the technology as well which includes:
 The high cost of implementation. All though it is a onetime investment process, the
cost of the implementation of the ERP systems is high. The maintenance cost of the
system is high as well (Cao, Nicolaou and Bhattacharya 2013).
 The hardware required for the system is difficult for adaptation. Without proper
hardware, the system is less likely to perform.
 Skilled staff is required for the job. As the system is completely new and the business
has to go on, staffs who are experienced with the system are extremely important.
 Proper security maintenance is needed to avoid any data leakage (Babaei, Gholami
and Altafi, 2015).

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SDLC Cycle:
Planning:
Enterprise resource planning is a process that helps in the management of the entire
process of business. All the major processes of the business, like supply chain, decision making,
tracking transactions and many more are managed with the help of the ERP system (Ahmadi et
al. 2014). The proposed system can be effortlessly introduced in the existing property
management of AAT Kings. The business can use the proposed system to easily manage every
business operations and methods. In this phase, the organization will analyze the proposed
system in detailed manner considering, the methods to be used to implement the proposed
system in the organizations, management methods to be used to handle the system and use the
system in an appropriate manner, methods to interact with the customers efficiently (Junior et al.
2014). Moreover, this phase requires to conduct a feasibility analysis where the concerned
business can verify the feasibility of the proposed system. Any sort of alterations in the plan will
be one in this phase.
System Analysis and System Design:
After proper planning of the proposed system, the business will require to gather the
requirement of the system by preparing a define SRS of the proposed system (de Oliveira and
Dickman 2014). A particular design of the proposed system will be made such that it becomes
easier for AAT kings for generating process diagrams and then designing the proposed system.
The process diagram will allow AAT kings to understand the system processes in a logical
manner (Vins et al. 2015). The SRS has the main role in this phase and controls the system
design.

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System Implementation and System testing: After designing and analyzing the system, it will be
implemented in the workplace of AAT Kings. The effectiveness of the system will be measured
with the help of the business performance which will show the impact of the proposed system in
the business. After an appropriate introduction of the proposed system, the system will be tested
on the basis of the system performance and its effectiveness on the organization (Bonafide et al.
2014). Then, the staff will be trained such that they can effortlessly use and handle the
implemented system in their daily operations.
Post Implementation analysis:
This stage will determine whether the implementation process is a success or a failure. To
ensure whether the system is working properly or not, monitoring has to be done properly. The
efficiency of the business is not just measured with the operational efficiency of the system. This
also depends upon the overall performance of the system (Sligo et al., 2017). Performance
statistics are developed which will determine whether the system is efficient or not. The system
has to be maintained and updated for better and effective results. To maintain a proper ERP
system, an ERP desk should be implemented such that the fewer problems have to be faced.
Project Risk and Change Management:
Risk and change are inevitable in an organization when a new system is implemented
(Hendriks 2013). For the implementation of Information technology, like an ERP system, it is
done in a system, the business has to go through the process of risk analysis. The risks in the
organization for the technology are:
Technical malfunctioning: which can ruin the entire ERP system’s performance as the system is
completely automated and runs without human intervention.

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System attacks: The ERP system depends on the internet. Cyber-attack are prevalent in the
network system. Attacks like malware and ransomware can be hazardous for the enterprise (Tian
and Xu 2015).
Data leakage: Although the ERP system is secured, the leakage of the data may occur as a bi-
product of malfunctioning or attacks. The sensitive data can be released, destroying the data
privacy which is essential in the hotel business.
The other risks of the organization also include the lack of employing skilled laborers, the lack of
the IT planning process and a few more.
Once the risk factors are identified in the organization due to the implementation of the
ERP, a certain change has to be addressed as well. In an IT project, the failure of the system is
prevalent. The company does not have a cloud storage facility, thus as part of the change
management plan, cloud services should be introduced. The cloud services help in storing data as
a back-up which helps in data recovery after the loss of data or unauthorized modification of the
data (Njihia and Mwirigi 2014).
Conclusion:
Therefore, it can be said from the research proposal that AAT Kings will be highly
benefited with the proposed system. It will provide multiple business opportunities to the AAT
kings and will also help the business to improve its performance. The customer requirements can
easily be fulfilled with the introduction of the ERP system in their workplace. Customer
satisfaction can also be raised. The proposed system should be implemented securely by
following the mentioned SDLC cycle. Business opportunities can be easily achieved. Thus,

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implementation of the ERP system in the workplace of AAT kings tourism is an efficient
decision taken by the business. This will align the business towards its aims and goals.

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