Analysis of Home Centre's Transaction Processing System

The assignment requires a thorough analysis of Home Centre's transaction processing system, using a soft systems methodology approach. This involves identifying problems with the current system, analyzing data, and proposing recommendations for improvement. The study aims to enhance transparency, reduce liability, and increase ethical responsibility within the company.

TMA FORM (PT3)
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SECTION 1 STUDEN TO COMPLETE: SECTION2TUTORSTO COMPLETE
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ID# 050611 Date to Center
Course Code 203 Tutor’s Name: Dr. Vineet Kansal
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Project about: Real Estate market crisis in
Kuwait
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Ethical Statement
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Table of Contents
Executive Summary.........................................................................................................................2
1.0 Introduction................................................................................................................................4
2.0 SSM Analysis............................................................................................................................4
3.0 SWOT Analysis.........................................................................................................................8
4.0 Conclusion.................................................................................................................................9
4.0 Reference Lists........................................................................................................................10
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1.0 Tutor Report
1.1 Introduction
Home Centre at Kuwait is a successful business that has been established across various
other countries. The business remains extremely profitable and has been able to gain customer
confidence. It is considered one of the most liked brands across the country offering home décor
and home related products. However, there are certain challenges faced by the Company in terms
of its data entry methodology in its Sales department. This challenge is analysed using soft
systems methodology (SSM) approach, whereby organization process modeling is used for
solving the problem (Mehregan 2012). The Company has to accommodate management of
change in order to overcome this problem by incorporating systems as software methods or data
entry tools for entering data into systems.
1.2 SSM Analysis
The soft systems methodology is generally used to analyse complex situations and was
developed by systems engineering approaches. It best helps resolve complex situations by
analysing the situation and moving from one step to another in a step by step manner
(Baskerville 2009). It allows critical thinking approach and it includes 7 stages of
representations as following;
1. Analysis of problematical situation: In this situation, Home Centre Kuwait is facing
challenges in its Sales and Marketing department. It has affected the brand name and
customer feedback in a negative manner. Only a root analysis of the problem can help
arrive at suitable solution. The core problem here lies that its financial department due to
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Sales and Marketing department’s challenges is unable to tally and furnish adequate data
to its stakeholders. The stock record with that of finances is not tallying, which is leading
to immense troubles in developing proper records of financial transactions and
accounting statements.
2. Expression of the problem situation: The problem situation arises as some transactions
data is not entered in the books of accounts (Flood 2010). Although sales of requisite
products have taken place but records have been handwritten. There are no other proofs
to depict that the transaction actually has taken place.
3. Formulation of root definitions of relevant systems for purposeful activity: Root
definition of problems as these is important as they help in solving them rapidly
(Sørensen 2010). Home Centre is a reputable brand across Kuwait and is regarded as
one of the best retailers. However, this lack of record keeping is not only harming the
Company but also its customers, as they are not easily able to exchange goods purchased
or adopt maintenance on them suitably. Root definition of the challenge lies in its
stakeholder’s inability to identify a suitable system to record transactions for each and
every sale made.
4. Building of conceptual models of the systems named in the root definitions: In order to
arrive at the solution to the given problem a software system that can ideally record
transaction for the Company can be integrated. This software technology can be a model
that input sales data and gives related output as reports when demanded.
5. Compare models with real world situations: In real world situations there are several
models or software present that offers variety of solutions. These software models are
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designed to meet data entry requirements for client companies and then make financial or
accounting systems accordingly.
6. Define possible changes which are both possible and feasible: A possible change is to
design a software technology that helps to input data and produce reports for the
Company (Hanafizadeh 2011). This change is highly feasible and possible in nature as
Home Centre can easily afford it.
7. Taking action to improve the problem situation: In order to improve and tackle the
present situation such software technology has to be adopted. The software system has to
be tested for appropriate fit prior to incorporating it fully.
Figure 1: Hand-Drawn SSM
Source: Author
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SSM analysis was successful when it had incorporated certain elements of CATWOE
model that was developed by David Smyth (Shankar 2009). The process identified processes,
people, environment that leads to the situation being analysed in the scope of the study. Business
Analysts evaluates possible impacts on six elements of CATWOE as given below;
 Customers: Here the highest beneficiaries of the business process are evaluated along
with issue that affects them. Customers here constitute business stakeholders and also
external customers or purchasers of the business products. Both business owners will be
affected in presence of an inappropriate accounting or transaction processing system.
Customers in absence of proper accounting receipts or systems will not easily be able to
tally their transactions or return any goods sold back.
 Actors: People involved in the situation comprises of stakeholders, senior people of the
management, people that are in Sales and Marketing department and so on. All staffs and
employees of the department are involved in the situation along with finance and
accounts department participants. People in the Sales and Marketing department will be
implementing solution. Appropriate data entry methodology will lead to success of the
business systems.
 Transformation Process: Transformation of the system lies at the heart of the software
system, that will be transforming accounting and financing needs of the company into
real. Appropriate data entry technology will help input correct data and yield output for
the system.
 Weltanschauung (or Worldview): Wider impacts of the issue will be benefiting finance
statements that will be produced by the firm.
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 Owner: The processes or situation being investigated is the responsibility of the Sales
and Marketing department. Role played in the solution by the department will be the
entire motivator for the change to take place.
 Environmental Constraints: There are constraints as learning relative to the software
that is implemented. Limitations that will impact the solution and its success is the
capability of the Sales and Marketing department to implement software and conduct
transactions successfully.
1.3 BECM Model
A BECM model is an abbreviated form for Being, Engaging, Contextualizing and
Managing. This model is applied on basis for understanding a complex situation and problem.
 At the first step of the model is Being, where the current system of Home Centre
Kuwait is evaluated. Background of the problem lies in Sales and Marketing
department data entry troubles. There are several ethical considerations that the
Company and its employees have not been able to attend to. They are however
aware of the complex challenges arising or ways that the problem needs to be
resolved. The senior and upper level management is not aware regarding the
complex situation facing the company. Customer satisfaction is deteriorating as
some of them are not getting printed bills or any records of their transactions
maintained when they come to view the same.
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 In the next step towards problem resolution Engaging has to be undertaken to
arrive at the root cause of the problem and design appropriate solution. This step
deals with analysis of the complex challenges related to the situation. In this case
the challenge lies in absence of a system that could possibly integrate an
information system for processing of transactions. Absence of a transaction
processing system has rendered the entire system ineffective.
 In the next step of Contextualizing methods of analysis is arrived at such as to
understand the position of the Company. Home Centre Kuwait is facing a
complex situation related to transaction processing system. The Sales and
Marketing does not have any details pertaining various transactions, which has led
to challenges in keeping records. Other companies that are operating in the market
have an appropriate transaction processing system, which allows their employees
to maintain records of every transaction. Moreover customer satisfaction rates in
these companies are high as they get well generated printed bills for the same.
 In the last step of the process is Managing, appreciation of managing the problem
to arrive at solution is taken into consideration. This challenge is dealt with by
appreciating the problem then adopting a suitable solution as transaction
processing system for the same. The suitable solution is arrived at by evaluation
of rich picture diagram, multiple cause diagram, system map diagram and control
model diagram.
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1.4 LogFrame Approach
A Logframe matrix approach is adopted for the project such that it is able to arrive at its
desired solution. The following logframe table clearly indicates requirements of the project
subsequently with desired output.
Project
Summary
Indicators Means of
Verification
Risks/Assumptions
Goal Adapt a
Transaction
Processing
System for Sales
& Marketing
Department
Information
Systems
Monitoring sales
department
Adaptability to
Company
Outcome Convenient
customer
transaction
handling
Customer
satisfaction &
high levels of
diligence in TPS
(Transaction
Processing
System)
Customer
Feedback
Customer
Dissatisfaction
Outputs Bills and other
transaction
details as rations
Printed bills &
bill data
Physical
Verification
Inappropriate
formats
Activities Bills, ratios,
many more
Accurate
financial output
Compliance
Management
Systems
Inaccurate financial
data
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1.5 SWOT Analysis
Home Centre has considerable advantages in doing business in the Middle East. In order to
understand the internal analysis of the Company a comprehensive SWOT is conducted for the
purpose (Amin 2011). A SWOT analysis is an abbreviated form for strength, weakness,
opportunity and threats as given below;
 Strength
 Wide range of collection offered to customers to select from
 Financial stability of the Company making it easier to expand new
business
 Customer brand perception is high Weakness
 Lack of internal software methodologies and systems leading to
challenges in data entry
 Current data entry problems have led to several internal challenges in
other departments as well Opportunities
 Expanding branches across various corners of the country
 Capability to re-engineer entire business processes
 Highly talented human resource that can help expand business further Threats
 International brands as Ikea is visualizing market potential in Kuwait and
planning to enter the country (Helms 2010).
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 Lack of appropriate financial transaction systems and accounting records
might raise corporate governance issue in the country, creating lack of
trust amongst stakeholders and customers.
1.6 Conclusion
Analysis of the problem according to Soft System Methodology helps understand that the
root problem of the current situation is absence of a software system. In presence of a software
system matched to the organization’s need, there would be no lags in data entering or its
interpretation. It would lead to development of adequate data in financial and accounting forms.
Application of SSM analysis helps to arriving at solutions of complex problems. Moreover, a
comprehensive SWOT analysis will help analyse strengths, weakness, opportunity and threats
related to particular situation. Overall it helps to reflect upon the situation that is experienced by
the firm in totality.
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2.0 Client Report
Analysing stakeholders of a Company is critical for diagnosing any problems and then
arriving at a critical solution for the same. Stakeholder for any company can either be internal or
external in nature. Internal stakeholders are those who are internal to the Company.
 Internal Stakeholders: For Home Centre Kuwait, internal stakeholders includes
Directors, Senior Management, employees, staffs, shareholders and other participants of
the business. For Home Centre Kuwait it consists of the shareholders, directors,
employees, staffs of all departments. Departments of Sales and Marketing, Finance and
other types of departments that is engaged in service delivery at their showroom and
warehouse.
 External Stakeholders: External stakeholder includes individuals who are external to
the company as Auditors, customers, rating agencies, suppliers, government and any
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other external bodies or individual impacting on the Company. While analysing Home
Centre Kuwait external stakeholders comprise of auditors, customers, government agents
and so on.
While internal stakeholders are connected in service delivery to final customers, external
stakeholders are connected with accepting the products and rating them accordingly. Both
internal and external stakeholders forms an integral part of the system.
6.0 Project Summary
The project here concerns Home Centre in Kuwait and the critical challenge they are
facing. The Company has already established its brand name around the Middle East, especially
in Kuwait it is the favorite brand for customers. Recent problems faced in recording transactions
in Sales department has deteriorated overall service delivery for the Company. Moreover ground
level staffs are unable to figure a suitable solution for the problem whereas upper level
management are unaware regarding the challenge. The project details itself to analyse the
challenge in various manner such as to overcome it. Analysis from every possible angle as
ground level, stakeholder levels and project analysis tools has been adopted to understand the
problem in a detailed manner. Finally the solution arrived at suggested at adaption of a
transaction processing system that will help overcome the situation. A suitable transaction
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processing system (TPS) will not only allow recording of transactions rather a more professional
approach to recording data.
(a) Problem Statement
I have identified a problem of analysing transaction entry systems at Home Centre Kuwait.
Interiors market in Kuwait region is flourishing with Home Centre being one of the most
reputable brands in the region. The challenge experienced related to adoption of transaction
processing systems is a ground level problem not easily understood by top level management. In
order to conduct the study and collect data from departments of Sales and Marketing, or Finance
or any other administrative departments it was not easy. I could not get permission related to this
study easily as top level management was not convinced of the idea. They felt that internal data
and critical information pertaining to the Company would be lost in case they allowed such a
type of study to take place. I had to convince managers at each and every level and highlight the
problem to them to ensure that data collection can take place. Moreover, each department wanted
to verify with Sales and Marketing department whether they were actually experiencing the
trouble of maintain transaction related data and information. Sales and Marketing department
were not ready and eager to accept that they were actually facing the trouble. Their non-
acceptance made it difficult for me to gather data related to procedure for the study.
(b) Methods of Solution
The challenge analysed was extremely complicated as it involved dealing with higher
authority. The higher authority and management was not convinced regarding the reason of the
study. In order to resolve the challenge I decided to draw up a proposal plan for the study and
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then submit the same to the higher management and authorities for their perusal. I fixed an
appointment with all necessary authorities from whom I had to obtain permission for conducting
the study. While asking for an appointment, I submitted a letter that could to be reviewed for
understanding the purpose of my visit. The proposal clearly indicated the various reasons for
conducting the study with its goals and recommendations for overcoming the challenges. Higher
level management had viewed my proposal letter prior to providing me an appointment for the
same, which made my task easier to achieve. This method for solution made it easier to arrive at
the data collection procedure for the study.
(c ) Storage of Solutions Holder
I had set up meeting with each and every manager at higher authorities, whose permission was
critical for data collection procedure. The Proposal Plan letter that I had sent to every manager
was maintained in my storage solution holder. Secondly and most importantly all letters asking
permission for appointment was also placed in the holder. Minutes of meetings recorded were
placed in the folders to ensure that none of the points of the meetings go unnoticed. Before
arriving at the data collection stage I made sure that I obtained all possible written permission
and documentation for the same. This was done so that I do not face any challenge related to data
collection in the future.
(d) The best solution
The best solution to all the challenges that I faced was to obtain prior permission before
conducting the study. I deemed obtaining of prior permission as an essential documentation
procedure. It was an essential element for the study to ensure that I do not encounter any
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challenge in the future. I visualized that only way to undertake the study and overcome possible
challenges was related to my major weakness. I am employed at a junior level and position in the
Company, hence none of the authorities would review my recommendations easily. I had to
utilize key strength of mine, which was to adopt a formal mechanism of writing a well drafted
proposal plan or letter for obtaining prior permission. I realized that I could face negative
impacts from my immediate senior who could easily raise questions on me. Realising this
potential threat facing me, I turned it into a meaningful activity by highlighting the various
positive impact that completion of my project could generate on the company. I told them
regarding the positive impact of accommodating an information system and the betterment to the
company and its processes could be achieved. My senior colleagues and managers were
thoroughly impressed with the idea of analysing problems with varied tools by looking at the
diagrams. They were also delighted on realising the potential benefits that accommodation of
information systems, which could ease their work and reduce their liability. It would increase
ethical responsibility of the company y and lead to greater transparency, which would further
enhance the brand name for the Company.
(e ) Tip or suggestions
Data collection and its analysis was the most crucial aspect of the study. Though it was
difficult to collect information related to the study yet it was difficult to portray the same
effectively. In order to understand the problem that is faced by Home Centre thorough analysis
of its transaction processing system has to be entailed. It would help arrive at possible root cause
definition to the problem identified and then form appropriate recommendations.
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4.0 Reference Lists
Amin, S.H., Razmi, J. and Zhang, G., 2011. Supplier selection and order allocation based on
fuzzy SWOT analysis and fuzzy linear programming. Expert Systems with Applications, 38(1),
pp.334-342.
Baskerville, R., Pries-Heje, J. and Venable, J., 2009, May. Soft design science methodology.
In Proceedings of the 4th international conference on design science research in information
systems and technology (p. 9). ACM.
Hanafizadeh, P. and Aliehyaei, R., 2011. The application of fuzzy cognitive map in soft system
methodology. Systemic Practice and Action Research, 24(4), pp.325-354.
Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management, 3(3), pp.215-251.
Flood, R.L., 2010. The relationship of ‘systems thinking’to action research. Systemic Practice
and Action Research, 23(4), pp.269-284.
Mehregan, M.R., Hosseinzadeh, M. and Kazemi, A., 2012. An application of soft system
methodology. Procedia-Social and Behavioral Sciences, 41, pp.426-433.
Page, T., 2008. Soft Systems Modelling of the New Project Development Process-A Case
Study. i-Manager's Journal on Management, 3(2), p.34.
Shankar, R., Acharia, S. and Baveja, A., 2009. Soft-system knowledge management framework
for new product development. Journal of Knowledge Management, 13(1), pp.135-153.
Sørensen, C.G., Fountas, S., Nash, E., Pesonen, L., Bochtis, D., Pedersen, S.M., Basso, B. and
Blackmore, S.B., 2010. Conceptual model of a future farm management information
system. Computers and electronics in agriculture, 72(1), pp.37-47.
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