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NFS 5058 - Strategic Information Systems

   

Added on  2020-03-02

4 Pages1309 Words41 Views
Name:SID:Subject:A1. The big decision taken by Woolworths was restructuring of its operation model, whichincluded brand-wise splitting of its online Ezi-business which was previously integrated withBig W. A2. The major challenges Woolworths has been facing were lack of efficiency in its supplierrelationship management due to issues with its replenishment and inventory system. A3. Such strategic decision was taken as a fire emergency drill in its Eastern Creek Centreshut down the facility, due to which the data collection and replenishment system waseffected. This created problem of processing the orders to the suppliers when the Big Wplatform was introduced to the customers, which resulted in losses of sales in millions. A4. Porter’s five forces model:The Porter Five force model can help an organisation the model of the industry and inascertaining its stakeout position in the market to become more profitable and less vulnerable[ CITATION Mic08 \l 16393 ]. The porter’s five forces model on Woolworths is as follows:1.Bargaining Power of Buyers: The Supermarkets of Australia are more or lesshomogenous, hence there is low switching cost between the store. In such a scenario,the bargaining power of customers is very high, excepting those stores which areoffering customised services [ CITATION Tec17 \l 16393 ]. 2.Bargaining power of suppliers: The bargaining power of the suppliers in thesupermarkets vary as per the brand name and size of the store. For example, coca colaand British American Tobacco enjoy very high bargaining power. Hence thebargaining power of the suppliers in the retail markets of Australia varies from high tomoderate. 3.Industry substitutes: In the industry of super market, the customers have a lot ofoption for substitution, like grocery stores, pharmacist, fresh-food shops, localretailers, online etc. The customers don’t mind even if they have to pay little higherfor securing the facilities like, accessibility, parking facilities, proximity, no queues,etc. Hence, the industry substitutes in the supermarkets of Australia also varies fromhigh to moderate. 4.Threat of new entrants: The supermarkets of Australia don’t seem to be a lucrativeoption for the new entrants, on grounds of low price offers. Moreover, the high pricesof market land, heavy investments and restrictions and regulations by the governmentalso act as barrier to the new entrants. Hence, the threat of new entrants’ n moderate.5.Rivalry among competitors: There is aggressive and intense competition in thesuper markets of Australia. Hence, the main threat for Woolworths is from the existing supermarkets to which thecustomers can switch on due to their high bargaining power. The balance of power can beattained by offering quality products the lowest possible prices and closing down theunderperforming stores was a step in this direction [ CITATION Woo17 \l 16393 ]. The impact onIT/IS strategy is to use them for ensuring efficiency in the supply chain managements. A5. The short-term pros of new IT/IS system are efficient supply chain management whichwould help processing the data in less the time and would help in enhancing accountabilityPage:Date:
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Name:SID:Subject:and performance. The short-term cons are heavy expenditure and it may take lot of effortsand time to implement it.Long-term pros are that it would lay foundation for efficient supply chain management infuture. It would help in securing an enduring profitability in the coming years. The long-termcons are that it would need continuous upgradation and maintenance to ensure efficiency.Plus, there will be need to keep a check on it for ensuring its vitality in coming years. A6. In my opinion, the IT is very important for Woolworths is very important as it can help inkeeping up the records for order taking, order processing and placing the orders with the vendors. No. I don’t that the new management has underestimated this role as the redesigningof its operation system, it has streamlined the procedure to ensure smooth flow and accuracy.A7. Yes, it was a good decision to write down a heavy investment in IT sector. With theupcoming online super market stores like Amazon, Ebay etc.; the growing popularity ofonline stores can be seen. A8. If I was CIO of Woolworths, I would also have suggested in implementing efficientsupply chain management SCM. For convincing my CEO I would have cited example ofWalgreens Boots Alliance Inc. which has become second largest Pharmaceutical chain of USby transforming its supply chain in 2016 [ CITATION Inv17 \l 16393 ]. In case of rejection ofidea, I will give explain the advantages of SCM, viz. speed, efficiency, cost reduction, etc. A9. The information systems which Woolworths should have [ CITATION Eff09 \l 16393 ], are:a.Inventory management system: To accurately map the flow of inventory and to beable to forewarn about re-order levels and slow-moving items [ CITATION Fis17 \l 16393].b.Vendor management system: To ensure the vendors are well managed in terms ofgiving them appropriate time to supply and ensure their payments are smooth[ CITATION Bee17 \l 16393 ].c.Customer relationship management system (CRM): A robust CRM will keep themanagement abreast of customer’s buying trends and need analysis.A10. No, doubt slashing of the previous IT/IS project, Woolworths has impaired heavy costs.However, in the light of forthcoming profits, the potential gains are several. The Woolworthwill be able to make up the losses in the long run. A11. Stake holders for various IT system are [ CITATION Joh09 \l 16393 ]:a.Inventory management system: Head of purchase, Head of Stores, Operations Headb.Vendor management system: Head of contracts, Commercial head, Head of purchasec.Customer relationship management system (CRM): Head of Customer Services, Headof Operations, Head of MarketingA12. Most important functional requirements [CITATION Ter \l 16393 ], for the following ITsystems will be:a.Inventory management system:i.Accuracy Page:Date:
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