Strategic Information System 1Strategic Information System
Strategic Information System 2Introduction In the business world, the role of information system in supporting the business activities strategically and creating competitive advantage has identified, which causes the emergence of the concept of strategic information system. This assignment has two parts in which, first focusesin discussing the role of strategic concept in the selection of information system. For this, Toorallie Australia, a fashion retailer is selected (Toorallie Australia, 2017). In second part, available software packages and competition in Australian accounting software market is also discussed. Along with this, the challenges of end users of accounting software are also discussed to make relevant suggestions. PART 1: 1. Organizational Structure Functional structure exists in Toorallie Australia in which functions of business are performed bya specialized team. Employees with shared skills and knowledge work together, which ensure operational efficiency (Schermerhorn, 2010). The structure of this organization is stated below:
Strategic Information System 3Through above structure, Toorallie performs its functions from procurement of wool to the production, sales and marketing of woolen garments. This structure is less complex that simplifies the operations of a business (Hitt et al., 2012). 2. Operational Problem In the functional structure, the personnel of different department may not communicate with eachother that could cause operational inefficiency and errors. Staff works within the boundary of their respective departments and thus it causes lack of proper communication and co-ordination in the operations, which are the main cause of inefficiency and errors (Parnell, 2013). For example: absence of communication between marketing and production departments may impede ability of this firm to understand the demand of the customers effectively and to make relevant offerings. This could bring inefficiency in terms of producing innovative offerings for the customers and to satisfy customers (Hill and Jones, 2011). The chance of errors in the Organizational Structure ProcurementStaffProductionStaffInformation TechnologyStaffSales and Marketing StaffFinance StaffHuman ResourceStaff
Strategic Information System 4operations is also increased due to the lack of communication and co-ordination among the departments. 3. System Acquisition Method The method of acquiring system is most likely an Enterprise Resource Planning (ERP). This firm operates in a fashion industry thus it has wide product line in multiple colors and size. It is likely to create difficulties in maintaining appropriate stock levels. Due to this, it needs a platform to integrate sales, marketing and other functions of the business to get real time information. Stock visibility and its reporting are also critical for Toorallie to become more responsive towards the queries of the customers regarding the available size and colors of cloths (Enprise, 2017). For managing the operations in a way to enhance and improve customer experience, ERP is the most likely system acquisition method.4. System Flowchart of the Sales ProceduresThe system of sales procedure at Toorallie is depicted below: At Toorallie, the above system of sales procedure is used in which the sales process starts when customer places an order for a garment either from online and retail store. The system checks theavailability of ordered goods and processes the sales accordingly. In case of stock availability, billing information is proceeded and payment is accepted that leads to the end of sales process.
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