MIS1 Letter to Sponsor Mr. Ian Moir Chief Executive Officer David Jones Building 1/572 Swan St, Richmond VIC 3121, Australia As we all very well know that David Jones is considered to be one of the leading upmarket department stores of the Australian region, but due to lack of leadership and avoidance done by the leaders of the company, the company is dealing with different failures in the market. The leaders of the company are failing in taking proper decisions for the business growth. Therefore, this report has been prepared to recommend a solution for this problem in the form of information system. The Management Information System is said to be used in the business for decision making procedure and for the controlling, visualization, coordination, and analysis of the information. Hence, it is requested to consider this information system and implement it in the David Jones for better decisions. It is my pleasure to represent this report in front you related to the implementation of Management Information System in David Jones. I will look forward for your revert, please check the attached report. Regards
MIS2 Executive Summary The intent of this report is to present an analysis report for identifying the problem that David Jones Company is dealing with in the Australian market and what solution can be used in the form of Information System that can improve its performance. The environmental analysis of the company has highlighted that company has good brand image in the market but due to some wrong decisions it is failing in the market. Besides this, the government of Australia provide their immense support for the growth of domestic as well as international business. Further, the identified problem of absence of proper decision-making process in the system due to the mistakes of the company’s leaders can be overcome by the implementation of MIS in the operations, as this will gather the required information, analyse it and provide data for decision making. In the end of the report, it has provided the system development life cycle to understand the stages that will be followed for the MIS development.
MIS3 Table of Contents Letter to Sponsor........................................................................................................................1 Executive Summary...................................................................................................................2 Introduction................................................................................................................................4 Background analysis of David Jones......................................................................................4 Internal analysis of David Jones.............................................................................................5 SWOT Analysis..................................................................................................................5 External Analysis of David Jones...........................................................................................6 PESTLE Analysis...............................................................................................................6 Problem/Opportunity for IS/IT...............................................................................................8 Justification for the Selected IS system..................................................................................9 Cost/Benefit Analysis.......................................................................................................10 Presentation of System Analysis and System Design for the System..................................12 System Development Life Cycle..........................................................................................13 Planning............................................................................................................................13 System requirement and analysis......................................................................................13 System Design..................................................................................................................13 System development.........................................................................................................13 Integration and Testing.....................................................................................................14 System Implementation....................................................................................................14 System Maintenance.........................................................................................................14 Discussion of Post Implementation Activities..................................................................14 Project Management.............................................................................................................14 Risk Management.................................................................................................................15 Change Management............................................................................................................15 Conclusion................................................................................................................................15 References................................................................................................................................17
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MIS4 Introduction The intent of this paper is to present a research proposal for the top management of David Jones by proposing an information system change within the business such that it can focus on its growth and performance enhancement. An information system is said to be the multiple pieces of equipment collection involved in the diffusion of information. Some of the parts of the information system are software, system housing, information, hardware, etc. (Ghasemi, Shafeiepour, Aslani and Barvayeh, 2011). There are different types of information systems, including management information systems, executive information, systems, operations support systems, decision support systems, and transaction processing systems. In order to propose a information system in this report, an internal and external analysis of the company is being conducted to identify the problem or challenge it is facing and what type of information company can implement to get better results. Background analysis of David Jones David Jones Pty Limited is generally called as David Jones is a famous upmarket department store operate in Australian region. David Jones founded this company in the year 1838, who is a Welsh merchant. This department store is said to be the oldest store in Australia which is still operating in the country with its original name. David Jones is involved in offering superior services and products to its customers all over in the country and also provide international brands in the category of homewares, food, fashion, technology, and beauty. Company operate the business in the Australian departmental store industry in which the revenue of the retailers is declining due to global economic decline and dominancy of the top players. Presently, the company has 45 stores and also online platform for the business operations (David Jones, 2019). Mission of David Jones – The mission of the company is to be the best department store chain in Australia that is preferred by the customer and shareholders. Besides this, it also
MIS5 focusses on being recognized as the excellent retailing centre across the world (Richards, 2018). Vision of David Jones – The vision of the company is to be the most responsible retailer all over in the world which reflects their commitment of doing good for the society, customer, planet, and business (Woolworths Holdings, 2020). Internal analysis of David Jones SWOT Analysis Strength The strength of David Jones is its strong presence in the domestic market and the oldest department store which is still operating in the market. This enable the company to target large range of up-market segment customers (History Channel, 2020). Besides this, the company is involved in offering a wide range of products to the customers in Australia which helps in targeting a broader customer segment. Along with this, the company offer products at competitive prices on the national as well as international brands. Weaknesses The major weakness of the company is its weak or dropping financial position in the market due to the global financial crisis which makes tough situations for the traders and retailers to operate the business. This is also impacting the purchasing behaviour of the customers which is impacting the revenue of David Jones. Further, the international online retailers are impacting the sales of the company and eventually failing the growth efforts of the management of the company (Brook, 2019). In addition to this, the major weakness of the company is ineffective leadership which is unable to take proper decisions for the growth of the business.
MIS6 Opportunities The opportunity that is accessible for company is acquisition as it can lead in making it the largest department store across the world that can provide enhanced value proposition. Besides this, the company can also focus on offering private label products to the customers as different players in the market are now targeting customers with this strategy. Further, the company also holds the opportunity to invest in the information system like Management Information system such that it can work on improving the decision-making procedure of the company’s leaders or top management. Threats The major threat for the company is competition from the international offline and online players who are offering easy services to the customers as reasonable prices (IBIS World, 2019). External Analysis of David Jones PESTLE Analysis Political Factor Trans-Pacific Partnership has been framed for the economic growth and increase commerce in Australia as well as in 11 other countries. It is considered to be the free trade agreement that decreases the financial taxes and charges of the products which enable growth and investment of the industries from cross border through minimising regulations (Australian Government, 2020). This partnership agreement confirms that the products that are produced by the foreign suppliers must meet the standards of the country and eradicates high toll of transactions with the nations linked with TPP. Therefore, this partnership offers an opportunity to David Jones to save its trading costs and confirm that the foreign supplier offers good quality products.
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MIS7 Economic Factor During the analysis conducted in 2016, it was identified that Australia was experiencing an economic growth as the country’s GDP increased by around 2.8% and there was decrease in the unemployment rate to 5.6% in the same year (Nordea Trade, 2020). But the exchange rate has been declined of the of the decreasing trade related to export to import price ratios. This has presented a major threat to David Jones as the importing of the products become costly and influenced its profitability too. Social Factor Customers are considered to be intensely focused on the environmental issues which is changed their habits of shopping because they sub-consciously evade a brand that can negatively impact the environment. This represents a threat to David Jones as the problems in the products of the foreign suppliers can negatively impact the reputation of David Jones. Hence, the company needs to ensure that the products it is providing to the customers so not negatively impact the environment. Technological Factor The changes in the technological field influence the business of the retailers because society is accepting the technology in the form of smartphone and internet which compels the retailers to adopt it and become competitive by operating business over only portals (Byrnes, Brown, Foster and Wagner, 2013). Legal Factor Exclusivity clauses are specified in the written contracts in order to cease suppliers to provide products to the competitor. This kind of contract is predominant in the industry of retail, as David Jones and Myer attract the brands to supply their products only for them. Therefore, a department store that maintains the exclusive stock can entice shoppers to visit their stores which results in increased sales.
MIS8 Environmental Factor Issues related to environment have moderate influence on the retailing industry because it is based on the Corporate Social Responsibility that is met by the businesses. Few of the businesses concentrate on maximising their profits where on the other side there are businesses who focus on being environment friendly (Rahim, Jalaludin and Tajuddin, 2011). CSR is one of the main debatable matter however David Jones have performed well in this aspect because it incorporates environmentally friendly operations to reduce greenhouse gas emission. As per the analysis, it has been identified that David Jones is focused on decreasing its environmental impact by its supply chain and business operations for decreasing the emission of greenhouse gas, encouraging responsible use of products, decreasing wate, and reusing the natural resources. Problem/Opportunity for IS/IT The main problem due to which David Jones is failing in the Australian market is absence of effective leadership skills. The top management of the company lacks in effective decision- making process in terms of making proper strategies and policies for the growth of the business which represents their failing leadership skills in the business (Human Resource Director, 2010). As it is known that effective leadership skills help the management of the company in taking growth decisions and they work on maintain a friendly environment in the business that can contribute in the performance of the company. But, the management of the company has failed in maintaining a good culture and behaviour within the business which is raising the barriers in meeting the goals of the company (Change Factory, 2020). In order to overcome this issue, David Jones can adopt a management information system within the business as it will support the top management of the company to take proper decisions that can contribute in the growth of the company in the retail industry.
MIS9 The lack of proper management information system within the business is resulting in losing the market share in the industry. Management information system is used in the business for decision making procedure and for the controlling, visualization, coordination, and analysis of the information (Melville, 2010). The study of this system test procedures, technology, and people in the organization. The opportunity that David Jones can gain by implementing the MIS is that it can get the data that can identify those non-performing areas in the business and leads to superior efficiency and productivity of the company. Justification for the Selected IS system A management information system is said to be a computer system that is comprised of software and hardware serving like a backbone of the operations of the company. An MIS works by collecting the information from different sources, evaluates the data and provide the report of the data in order to support the management of the company in the decision-making procedure. Following is the justification for implementing MIS in the business are: The decision makers of the company that is top management require information in order to make decisions and MIS helps in making this possible. Management Information System enable internal as well as external communication. The employees of Javid Jones can easily able to get the information for daily operations. It enables the facility of Email and Short Message Service which allow to communicate with the suppliers and customers with this system that is used by the company (Vitez, 2018). Record keeping is the other benefit that Management Information system can provide to the business. As this system will help David Jones in recording every transaction of the business and deliver a reference point for the transaction. Besides this, the MIS system will allow to explore diverse scenarios for different alternatives and economic environment in order to have a look at possible outcomes before making any
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MIS10 commitment and decisions. This will help David Jones in taking correct decision related to business strategies. MIS system can enhance the productivity of the company because they are no more forced to invest huge time in collecting information that is desired by the management. A properly designed MIS collects all the information deprived of any of the input from the personnel (Goyal, 2014). In addition to this, this system strengthens the competitive advantage of the company. This is because operating an efficient business by decreasing and evading weak areas results in augmenting the competitive advantage of the company against its competitors. Cost/Benefit Analysis Cost/Benefit Analysis of Implementing MIS Cost Purchasing the MIS System$ 12000 Investing the maintenance of the system$ 1000 Benefit Increasing Profit$ 10000 Cost/Benefit Analysis for David Jones by implementing the MIS Tangible Benefits Success of decision made with the help of MIS in the form of increased customer base. Increasing productivity of the employees Increasing profits Increasing sales Tangible Cost
MIS11 Huge investment in the purchase of MIS system Investment in hiring a trainer for providing training to the responsible department related to MIS Expenses on the Updates of the System Expenses on the maintenance of the System Intangible Benefits Increasing the possibility of effective decisions in the company Offering better services to the target audience Enhancing brand image and reputation in the market Intangible Cost Time consumption in communicating the information for the implementation of MIS in the entire organization. Time consumed in consoling the responsible team to work on MIS Time consumption in the training of the employees. Considering the above justification for the implementation of Management Information System within the business of David Jones, it could be said that the company can successfully meet its strategic goal. The strategic goal of the company is that it desires to be the most preferred retailing centre for the customers and well as suppliers. However, due to lack of effective leadership in place they are unable to take proper growth decisions of the business. In order to resolve this issue, the company can implement management information system and through that the leaders of the company can take correct actions and decision that can contribute in the growth of the business.
MIS12 Presentation of System Analysis and System Design for the System System analysis is said to be the procedure of gathering and evaluating the facts, recognizing the problems, and breakdown of a system into different components. This process is executed in order to study the system or its parts for recognizing its objective (Boyd and Balakrishnan, 2012). It is also considered to be a technique of solving problem that enhance the system and confirm, that all its components work properly for attaining their purpose. In case of the MIS implementation in the David Jones, the components of the system that are required for its development are: People– these are the employees and the top management of David Jones who will use the MIS system. Data– it is the information that will be recorded by the system. Procedures of the Business– This is the component that talks about placing the procedures related to the way to report, store and analyse the information. Software– It is considered to be a program that is utilized for handling the data which includes database software, spreadsheet programs, etc. (Agrawal and Menzies, 2018) Hardware– It comprises networking equipment, servers, printers, workstations, etc. (O'brien and Marakas, 2011) System design is considered to be the procedure of planning a new business system or replacing an existing system by defining its components or modules to satisfy the specific requirements (Chen and Huang, 2010). It is all about how to attain the goal of the system. Under this procedure, the top management of David Jones will plan the implementation of the new system that is Management Information System. The requirement of the business is to enhance the effectiveness of the decision-making practices of the top management or the leaders of the company such that David Jones can enhance its position in the market against
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MIS13 its competitors. By making use of Management Information System, company can enhance its performance as this system will gather the data, store, and analyse it to support in the decision making of the management. System Development Life Cycle Planning The purpose of this stage is to identify the issue and define the solution (Singh, 2011). As discussed about that the decisions making process is ineffective within David Jones, due to which it is failing in the retailing industry. Hence, in order to improve its perforce it requires a proper information system that can resolve this issue. System requirement and analysis The purpose of this stage is to analyse different systems according to the requirement of the business. From the analysis, it has been identified that the management or the leaders of the company are failing in taking proper decisions for the business, hence it require a management information system that can help in taking corrective decisions for the business. System Design The purpose of this phase is to designing the system. The IT team of the company at this stage will work on designing the MIS system for the company considering all the requirement. System development From here the IT team starts working on the development of MIS system. They will develop the system by considering all the requirement of the business and the loopholes in the existing system.
MIS14 Integration and Testing The purpose of this stage is to get involve in the integration and testing of the system for quality assurance and identifying whether or not the goals are being met or not (Khalid and Noor, 2013). System Implementation This is the stage where most of the programming is completed and the system is implemented in place. Here, all the data is processed in the system to get results. System Maintenance At this phase of the life cycle, the responsible department take into account the maintenance and updates of the system in order to get results according to the changing trends in the market. Discussion of Post Implementation Activities This is the section where the discussion is made related to the activities that business will perform after the implementation of the information system. As David Jones require a Management Information System in place so the post implementation activities that will be performed by the company is to communicate the information in the entire organization and providing training to the accountable team. Project Management Project Management is considered to be the practice of introducing, arranging, implementing and regulating the work of the team for attaining specific objective and meeting the particular criteria at specific time period (Heagney, 2016). Here, the project of the team is to implement the Management Information System in the business for which all the stakeholders of the company are accountable to meet the responsibilities. Top Management – The role of the management is to take decision of implementing the system and informing all the employees about this new change in the company.
MIS15 Employees – Employees are considered to be the building block of a business; hence they are responsible to contribute in the success of the system. Customers – Customers have least interest in the implementation of MIS in the company, but they are accountable to provide fair feedback such that company can improve its performance based on that. Risk Management This is the procedure of forecasting and analysing the financial risk along with the identification of the barriers to minimize their impact on the business (Tang and Musa, 2011). At the time of implementation of MIS in David Jones, the financial risk that company can face is damage in the system due to untrained employees. Besides this, the failure of the system is another financial risk that company can face. For overcoming this financial risk, the company needs to provide proper training to its employees such that no damage can be done to the system. Change Management It is the procedure and a technique for managing the change in order to attain the required outcome of the business (Nordin, Deros, Wahab and Rahman, 2012). It is known that implementation of the information system in the business is a huge change because it can change the working process of the employees, which can lead to employee resistance. In order to manage this change, the top management of David Jones will first inform its employees and will provide a brief related to the benefits of MIS for the company and for them too, which can avoid employee resistance. Conclusion From the above analysis, it could be concluded that David Jones can implement Management Information System in the company for overcoming the issue of ineffective decision making. As, MIS will help company in collecting data, storing and analysing it to take corrective
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MIS16 decisions for the growth of the business. However, in order to get better results the company has to properly follow the system development life cycle.
MIS17 References Agrawal, A., Fu, W. and Menzies, T. (2018) What is wrong with topic modeling? and how to fix it using search-based software engineering.Information and Software Technology, 98, pp.74-88. Australian Government (2020)Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)[online]. Available from https://dfat.gov.au/trade/agreements/in-force/cptpp/Pages/comprehensive-and-progressive- agreement-for-trans-pacific-partnership.aspx[accessed 22 January 2020] Boyd, S. and Balakrishnan, V. (2012) Global optimization in control system analysis and design. Control and Dynamic Systems V53: High Performance Systems Techniques and Applications.Advances in Theory and Applications, 53(1). Brook, B. (2019)Bricks and mortar stores still lack ‘seamless’ shopping experience[online]. Available fromhttps://www.news.com.au/finance/business/retail/bricks-and-mortar-stores- still-lacking-a-seamless-shopping-experience/news-story/ b3656a730e9b92fc94df446ba7542c52[accessed 22 January 2020] Byrnes, L., Brown, C., Foster, J. and Wagner, L.D. (2013) Australian renewable energy policy: Barriers and challenges.Renewable Energy, 60, pp.711-721. Change Factory (2020)David Jones; A failure of leadership?[online]. Available from https://www.changefactory.com.au/our-thinking/articles/david-jones-a-failure-of-leadership/ [accessed 22 January 2020] Chen, H.R. and Huang, H.L. (2010) User acceptance of mobile knowledge management learning system: Design and analysis.Educational Technology & Society, 13(3), pp.70-77.
MIS18 David Jones (2019)The Story Of David Jones[online]. Available from https://www.davidjones.com/about-us/the-story-of-david-jones[accessed 22 January 2020] Ghasemi, M., Shafeiepour, V., Aslani, M. and Barvayeh, E. (2011) The impact of Information Technology (IT) on modern accounting systems.Procedia-Social and Behavioral Sciences, 28(2011), pp.112-116. Goyal, D.P. (2014)Management Information Systems: Managerial Perspectives4thed. India: Vikas Publishing House. Heagney, J. (2016)Fundamentals of Project Management5thed. AMACOM. History Channel (2020)David Jones Opens[online]. Available from https://www.historychannel.com.au/this-day-in-history/david-jones-opens/[accessed 22 January 2020] Human Resource Director (2010)True culture revealed at David Jones[online]. Available fromhttps://www.hcamag.com/au/news/opinion-and-best-practice/true-culture-revealed-at- david-jones/135770[accessed 22 January 2020] IBIS World (2019)Myer & David Jones To Prioritise Private Labels[online]. Available fromhttps://www.ibisworld.com/industry-insider/press-releases/myer-david-jones-to- prioritise-private-labels/[accessed 22 January 2020] Khalid, A. B., and Noor, Z. (2013)Software Development Techniques for Constructive Information Systems Design1sted. Idea Group Inc (IGI). Melville, N.P. (2010) Information systems innovation for environmental sustainability.MIS quarterly, 34(1), pp.1-21.
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MIS19 Nordin, N., Deros, B.M., Wahab, D.A. and Rahman, M.N.A. (2012) A framework for organisational change management in lean manufacturing implementation.International Journal of Services and Operations Management, 12(1), pp.101-117. Nordea Trade (2020)Australia: Economic and Political Overview[online]. Available from https://www.nordeatrade.com/en/explore-new-market/australia/economical-context[accessed 22 January 2020] O'brien, J.A. and Marakas, G.M. (2011)Management information systems1sted. India: McGraw-Hill/Irwin. Rahim, R.A., Jalaludin, F.W. and Tajuddin, K. (2011) The importance of corporate social responsibility on consumer behaviour in Malaysia.Asian academy of management journal, 16(1), pp.119-139. Richards, A. (2018)The Art and Mission of David Jones[online]. Available from https://www.fulcrum-anglican.org.uk/articles/the-art-and-mission-of-david-jones/[accessed 22 January 2020] Singh, S.K. (2011)Database Systems: Concepts, Design and Applications1sted. India: Pearson Education. Tang, O. and Musa, S.N. (2011) Identifying risk issues and research advancements in supply chain risk management.International journal of production economics, 133(1), pp.25-34. Vitez, O. (2018)Trends in Management Information Systems[online]. Available from https://bizfluent.com/how-5484724-use-management-information-system.html[accessed 22 January 2020]
MIS20 Woolworths Holdings (2020)Our Purpose, Vision AndValues[online]. Available from https://www.woolworthsholdings.co.za/overview/our-purpose-vision-and-values/[accessed 22 January 2020]