Implementing a Strategic Information System in JB Hi-Fi Company

This article discusses the financial analysis of JB Hi-Fi Company and the implementation of a strategic information system to reduce complexity and increase productivity. It covers the criteria, challenges, and remedies for the implementation, along with the structure, products, and operational functionality of the company.

RUNNING HEAD: New information system in organization
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Name of the student-
Topic- New information system in organization
University name

Financial analysis of company
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Table of Contents
Introduction...........................................................................................................................................3
Structure of company............................................................................................................................3
Products and services............................................................................................................................3
Operational functionality.......................................................................................................................3
Current process of JB HI-FI....................................................................................................................3
Any gaps which is not working properly................................................................................................4
Specific issues that new system (strategic information system) will overcome....................................4
Criteria to meet the requirement of the proposed system in organization...........................................4
Constitutes an Information Systems (IS) Strategy.................................................................................4
Why this Information Systems (IS) Strategy is needed in business of JB Hi-Fi Company.......................5
Difficulties which company would face for installing new cyber computing Information Systems (IS)
Strategy.................................................................................................................................................5
Information system failure....................................................................................................................6
Remedies to reduce the complexity and problems of new Information Systems (IS) Strategy.............6
Conclusion.............................................................................................................................................7
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Financial analysis of company
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Introduction
With the increasing ramified economic changes, and complex business structure, each
and every organization implement proper level of strategic planning to achieve its overall
objectives and goals in determined approach. This literature review is accompanied by the
internal and external analysis of the organization. This literature reviews; JB HI-FI Company
has been taken to evaluate its internal and external factors of the business. The main focus
has been made on current operation of the business, specified gap, proposed business plan
and analysing the typical problems faced by the organization. This literature reviews has
reflected the key understanding on the key operation plans and business strategies of the JB
Hi-Fi Company.
JB Hi-Fi Company is an Australian and New Zealand retailers of the consumers goods
specified in video games. This company has been running it business on international level
with a view to diversify its business in various business activities. This company is one of the
largest and fastest growing successful businesses of its kind. The main key founder of
company was John Barbuto and currently company is managed under the guidance of the
CEO of company named Richard Murray (Nestić and Stefanović, 2015).
Structure of company
This company is accompanied by the complex set of activities and structured of the
company is divided into various parts such as Functional department, management
department and business program department. In addition to this, this organization has other
bifurcated divisions that are engaged in other productive work of the organization.

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Products and services
JB Hi-Fi Company is engaged in selling electronic consumer goods around the globe
with a view to increase its overall productivity and efficiency of the business. This company
is an Australian and New Zealand retailers of the consumer’s goods specified in video games
and other electronic goods items (Benson, 2014).
Operational functionality
All the employees of this company are accustomed to act as per the directions and
instructions given by the CEO of the company. However, Strategic information system assists
in establishment of effective communication channel among all the employees, management
and other staff members (Skelton, 2015).
Current process of JB HI-FI
This company has diversified business and mainly indulged in retailing of the
consumers goods specified in video games and investing its funds in venture capital
investment. In addition to this, management department of JB Hi-Fi Company is focusing on
diversifying its business in undertaking satellites and other programs (ENERGY, 2016).
Any gaps which is not working properly
This company has been facing issue of efficient staffs which increase its overall
production cost and complexity of its business. It is considered that by installing cyber
computing enterprises resources planning assists in establishment of effective communication
channel and automation in its business to mitigate this identified gaps. Furthermore, company
has to hire more IT experts in its business (Maas, et al. 2016).

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Specific issues that new system (strategic information system) will
overcome
The main gap is related to its high cost productivity which incurred due to complex
and less effective communication channel in JB Hi-Fi Company. The main issue which
strategic information system will overcome is related to reducing the complexity of the
business, increasing the effectiveness of the communication and establish automation in its
various internal set of activities (van Donk and van Doorne, 2016).
Criteria to meet the requirement of the proposed system in organization
Criteria Requirement
IT experts hiring Company needs to hire at least 50 more IT
experts to handle all the key issues of the
complexity and technologies factors
Taking consent from all the directors All the directors will give their consent in
Board meeting by poll.
Pass resolution in meeting JB HI-FI needs to pass special resolution in
general meeting of the company.
Regulatory compliance JB Hi-Fi will comply with all the rules and
governance regulations before installing
strategic information system

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Arrangement of the training and development Company needs to hire at least 5 experts’
members who will proper training to
employees to adapt with the new changes and
technologies (Abdulaziz, 2016).
Constitutes an Information Systems (IS) Strategy
As per the views of Gupta and Misra, 2016 it is evaluated that JB Hi-Fi Company has
been facing complex set of the activities issues and environmental problems which have
increased the overall cost and internal complexity of the business. However, with the changes
in organization business functioning and less effective communication channel, top
management needs to propose the plan of implementing strategic information system in its
business. This will help company to make effective changes in its business and make proper
changes in its value chain activities. It is considered that if JB Hi-Fi Company could use
proper level of IT support system and effective mechanism then it will allow company to
adapt with the new information system strategy in business.
Why this Information Systems (IS) Strategy is needed in business of JB Hi-Fi
Company
As stated by Seethamraju and Sundar, 2013 it is evaluated that JB Hi-Fi Company has
been facing various complex set of activities in which various functions are performed.
However, the main problem is related to breakdown in its value chain activities. It is

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considered that if company could install this Information Systems (IS) Strategy then it will
help JB Hi-Fi Company to analyse all the internal and external factors of the business. In
addition to this, company could easily identify what kind of problems it will face in its
production process. This Information Systems (IS) Strategy is installed to develop long term
planning which will analyse stakeholders needs, changing business structure and associated
problems of the business this is very helpful factors for the success of the business (Wan
Lähtinen and Toppinen, 2015).
Difficulties which company would face for installing new cyber
computing Information Systems (IS) Strategy
As per the perception of Ming, Grabot, and Houé,2014 it is considered that the main
problem is related to arrangement of the finance for the business. It is evaluated that company
needs to take loan or private capitalization in its business. This will allow company to
increase its overall outcomes in determined approach. In addition to this, company will need
to hire at least 20 experienced IT staffs which will be hard for the company to find. It is
considered that employees may face issue of increased employee’s turnover. It is considered
that company needs to arrange training and development program for its employees who will
increase their adaptability with the new Information Systems (IS) Strategy. This level of
strategy program will help organization to understand all the internal and external factors and
identify the best possible solution in determined approach. This has increased the overall
outcome of the business and will increase the productivity of the organization. Another
challenge would be related to taking best possible solution for the specified problems,
Company could use this Information Systems (IS) Strategy to make effective data mining
strategy. However, the solutions identified by using this strategic program may increase the
complex set of activities and may increase the chances of business destruction. JB HI-FI is

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the electronic consumer selling goods which focus on selling its goods and services at
international level. These strategy information technologies will help in data mining of
company and will increase the overall outcomes of the organization. Employees of JB Hi-Fi
will also have to change with the new changes and complex business structure. Apart from
that, company also needs to restructure its business process before using Information Systems
(IS) Strategies in its business. This will not only increase the complexity of the system but
also help company to customize its business process in determined approach. It is evaluated
that these problems and issues may increase the overall cost of Information Systems (IS)
Strategy in business (Laudon and Laudon, 2016). However, company by using this new
system may decrease the overall cost of the system and increase the overall output of the
organization in determined approach. All the overall activities and process system will also
need to be changed which will make process system more inclined towards adopting new
Information Systems (IS) Strategy. In addition to this, new information system will also
provide systematic idea and will make management department to trust on this system only.
Therefore, only single breakdown in this new information strategy system will increase the
complexity and problems of the organization.
Information system failure
As stated by Link, 2013 it is reflected that this information system failure may happen
due to the non-effective systematic plan and company’s failure to adopt this new system. JB
Hi-Fi may face various issues and challenges in their business at the top level while using
new Information Systems (IS) Strategy in its business. The main problem which may arise is
related to taking independent decision by using data analysis in the business process system.
In addition to this, company may also face financial issues while hiring new expert’s
employees and restructuring of its business process. This will increase the overall complexity

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in the initial time and may showcase the destruction of the business if decisions taken by
using new Information Systems (IS) Strategy may go wrong.
As per the views of Toka, et al. 2013 it is reflected that the main example which may
be undertaken in this case study is related to Tesco Company in which new Information
Systems (IS) Strategy was used to make effective strategic decisions. This new Information
Systems (IS) Strategy was used to collect the required amount data to take capital budgeting
decision. This new Information Systems (IS) strategy assists in only gathering data for the
future capital budgeting decision. However, company failed to analyse the project escalation
changes which could arise due to the changes in external factors of the business. This level of
strategic planning increases the overall complexity of the business and may provide different
level of business outcomes to organization. TESCO Company faces the destruction of the
business units which resulted to failure to achieve core competency in cost leadership in
market. Therefore, it could be inferred that JB Hi-Fi Company should first evaluate all the
internal and external factors of the business before using new Information Systems (IS)
Strategy in its business. It is evaluated that if company fails to evaluate these factors then it
will increase the overall cost of the production and will increase the chances of failure of
business. Another problem of company is related to hiring expert’s employees. Tesco failed
to hire proper expert employees in its value chain activities to provide training to employees
with the new system. This failure of the Tesco resulted to less adaptability of the employees
with the new process system. However, by evaluating these changes and complex business
structure, it is considered that if JB Hi-Fi Company wants to increase the overall outcomes of
its business then it first to evaluate by using proper methods that whether company should
adopt this new Information Systems (IS) Strategy.

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Remedies to reduce the complexity and problems of new Information
Systems (IS) Strategy
This new Information Systems (IS) Strategy is accompanied by complex set of factors
and strategy program. JB Hi-Fi needs to adopt these below given action plan to reduce the
complexity of its newly adopted new Information Systems (IS) Strategy in its business
Arrangement of finance- Management department of the JB Hi-Fi needs to identify the
required amount of finance in business. After that, proper finance will be required to run the
business effectively (Kauremaa and Tanskanen, K., 2016).
Hiring of new expert’s employees- It is considered that management department of
organization needs to hire expert employees who could easily handle all the technical
problems and issues of new IT system in organization.
Establish systematic working system in organization- It is evaluated that if company could
restructure its business process system then it will mitigate all the issues and change the
communication channel of the business. In addition to this, if management department could
restructure its business and install new information system program then it will increase the
overall outcomes of the business.
Installation of the new cyber computing system- It is evaluated that if JB Hi-Fi wants to adopt
new Information Systems (IS) Strategy then it will have to install cyber computing system.
This new cyber computing enterprises resource planning will increase the overall output of
the business. If company could use this system then it will establish effective communication
among all the employees and increase the overall output of the business (Costello and
Donnellan, 2013).

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Conclusion
This new Information Systems (IS) Strategy will help organization to maintain this JB
Hi-Fi business in effective manner. It will not only increase the overall outcome of the
business but also reduce the complexity of the business. Now in the end, it could be inferred
that if company wants to reduce its business complexity then it will have to change its
business structure and increase the overall outcomes of the organization. This new
Information Systems (IS) Strategy will help management department to develop systematic
strategic plan for all the business functioning in determined approach.

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