BUS101: Analysis of Business Information System at Axle Construction

This report provides a comprehensive analysis of a business information system, focusing on the case of Axle Construction, a small company facing challenges with its current information system. The report highlights the importance of effective business processes, including alignment with business strategy, improved communication, and operational efficiency, while also addressing the effects of business processes on an organization, such as embracing people and business practices, optimizing resources, and achieving a competitive advantage. It explores the management challenges in operating and maintaining an information system, including investment, strategic, globalization, and IT infrastructure challenges. Furthermore, the report recommends the application of CRM, ERP, and EAI to achieve competence, emphasizing the need for Axle Construction to re-engineer its information system to enhance communication and foster business success. References are provided for further study.

Running Head: Business Information System
Business Information system

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Contents
Abstract.......................................................................................................................................................2
Introduction.................................................................................................................................................3
Importance of effective business Process....................................................................................................3
 Alignment of operations with business strategy...............................................................................4
 Improvement in process communication.........................................................................................4
 Effective operational efficiency and reduction in risks....................................................................4
Effects of business process in an organization.............................................................................................5
 Embracement of people and business practices...............................................................................5
 Resources.........................................................................................................................................5
 Competitive Advantage...................................................................................................................6
Management Challenges in operating and maintaining Information System...............................................6
 Information system Investment challenge........................................................................................6
 Strategic business Challenge............................................................................................................7
 Globalization Challenge..................................................................................................................7
 Information Technology Infrastructure Challenge...........................................................................7
Application of CRM, ERP and EAI to achieve competence........................................................................8
Conclusion...................................................................................................................................................8
References.................................................................................................................................................10

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Abstract
With the emergence of new and innovation technology in the market, every company requires to
adopt this technology in order to gain competence in the market. A company with inefficient
information system which uses old techniques to compete in the market will not sustain in long.
Thus, all companies shall practice techniques like CRM, ERM, and EAI etc. in order to achieve a
viable growth in long run.
Axle Construction, small company is facing problem in its growth due to use of ineffective
information system in the internal process. Thus the company is suggested to use hi-tech
technology and efficient technique to survive in the market and gain competence.

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Introduction
In today’s growing it is important for a business of adapt information system in order to achieve
excellence. The market is fluctuation and changing as per the need of the customers. So in this
variable market it is the need for every company to study the market variation and adapt changes
accordingly. So information system in an organization helps them to initiate effective decisions
which can help a company to survive in long run. Adaptation of information system in
organization assists the company in making day to day business activity effective (Laudon, and
Laudon 2011).
Axle construction (AC) company based in Victoria (Australia) is a small firm emerging its
business slowly. The company is facing issues in the information system adopted by the
organization. Also due to inefficient information system Axle construction is unable to
communication resourceful information to its customers and clients. The information technology
system adopted by the company is complex which makes it difficult for the top management to
inform their decision to lower level management. Further it is recommended to the organization
to adopt hi-tech technology for efficient working. The report gives an overview to the company
regarding the importance and application of effective information system in an organization.
Importance of effective business Process
Business process is the backbone of the business with the help of which an organization survive
in a competitive market. This process helps the organization in its making its day to day
activities effective. The following points explain the importance of a business process to Axle
construction:

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 Alignment of operations with business strategy: the process conducts operational
activities which impacts on the growth on business. Business process modeling helps the
manger to formulate strategies and programs in such a way that the organizational
objectives are fulfilled. In case of fluctuations in market, the organization fails to fulfill
strategy, and then the business process helps the organization to flexibly change the
information system and work according to the needs of the market (Laudon, and Laudon
2016). Many times the tasks are performed with efficiency still organizational goals are
not achieved, thus business process also helps the organization in executive of projects in
such a way that the activities of the management are driven to achieve the organizational
goal.
 Improvement in process communication: communication in the essence of a business
in today’s world. Good communication in an organization reflects proper flow of
information and satisfaction of employees with the management system. Smooth
functioning is initiated with clear communication process. Satisfaction of employees
leads to completion of organizational objective and greater satisfaction of customers as
well (Melville 2010).
 Effective operational efficiency and reduction in risks: the visibility of a good
business process is that it eliminates aggressive risks from the business and initiates
proper flow of operations in an organization. The efficient operational process also
creates transparency in organization due to which a bond of faith is created in the
organization. The benefit of transparency in the organizational structure is that the
company is relieved from various compliances due to brand image is created.

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Thus Axle Constructions need to analyze the above mentioned aspects and need to implement
the same in their organization.
Effects of business process in an organization
With the help of business process organizations maximizes its profit and adapt total quality
management techniques in it working. It also helps the organization in achieving competitive
advantage in the market (Peppard, and Ward 2016). Further below-mentioned are the impacts of
business process in an organization:
 Embracement of people and business practices: with the process of alignment of
business objective with the objective of the organization then the company excels in their
industry. As noticed in the above case it was regarded that the company Axle
Construction had issue in their information system, leading to inefficiency in the
organization thus with effect to efficient business process, the communication problem
within the organization will resolve initiate adequate flow of information and proper
system flow of work in maintain. An effective business process initiates flexibility in
organization along with use of improved innovative technology adopted by the company
(Kale 2014).
 Resources: an effective business process initiates the organization to drive all the
resources availed to them in a positive direction. Further the process helps the
organization to adopt modernized technology in their course of action. The Axle shall
adopt the technological approach in order to initiate efficient technological changes
which the demand of their current state of business. This process will resolve the
company’s need for IT (Lenart 2011).

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 Competitive Advantage: Looking at various examples of companies which evolved
their business by using effective business process, the company Axle Construction should
also use this process to initiate effectiveness. It helps the company to gain priority of
customers in the market. Achieving competitive advantage helps the company gain
customer base in the market and brand image of the product is created. Increase in
efficiency also results to increase in lower cost production concept for the company
(Nofal, and Yusof, 2013).
Management Challenges in operating and maintaining Information System
Information system is an organized set of system created by the management to collect, store and
communicate information in organization. It is a contemporary network which helps the
organization to align the activities of organization with other resources present in the
organization (Trkman 2010). Further all Small Medium Enterprise (SME) like Axle
Constructions faces problems in maintaining their information system in organization, some of
the challenges are discussed below:
 Information system Investment challenge: investment in information system of a
company can improve the lives of employees along with business performance. For
instance, some business recognized the need of technology in business resulting to which
they changed their computing system and adopted resources which can provide suitable
assistance to the company. But such investments incur high cost, also the managers
should have adequate knowledge about the technology which the company is applying
their business otherwise they can become risky and costly for company (Zott, Amit, and
Massa 2011).

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 Strategic business Challenge: strategic planning is important for business to work in the
same way strategic planning effects can sometimes become null and void as well. Many
times due to fluctuations present in the market, company get to lose their strategic
planning effecting resulting to which the time consumed in planning is wasted.
 Globalization Challenge: globalization is the need of today’s business. There are a few
barriers which the companies face due to which their growth is hampered. Difference in
culture, understandings, size of business, interest etc. are some of the factors which cause
confusion in organization. Thus the companies shall adopt a global hardware and
software system which is similar and understandable by all to reduces the differences and
initiates globalization of company (Scheer 2012).
 Information Technology Infrastructure Challenge: the partial challenge dealt with the
businesses now a day is that the companies can only grow if they are provided with
similar outcomes in the market according to their technological setup. Further changes in
the environment make it difficult for the companies to transform their technological
resources. At initial level many organizations adopt highly expensive IT platforms which
on further use they realizes that it is neither manageable nor as per the requirement of the
product. Also it is difficult for the SME sector to accept the innovative technology
prevailing in the environment. Resulting to which the companies faces a financial crisis
by the use of such information technology which hampers the development of business in
global context. Thus the company face lose-lose situation as if they will not adopt the
technology then t will fall backward and if they will adopt it they have to face managing
problem and financial crisis as well (Willcocks 2013).

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Application of CRM, ERP and EAI to achieve competence
Information silos refer to the condition where the organization is under to communicate
effectively due to inefficient information management system. This happens because the
management of the organization like Axle Constructions does not believe that sharing
information would benefit the company financially. Instead, this problem decreases the
efficiency of the organization leading to barriers in the growth. The problem can be resolved
with the initiation of CRM (Customer Relationship Management), ERP (Enterprise Resource
Planning) and EAI (Enterprise application Integration) in the management.
In the current era the fact is understood by all that a company can only achieve competence if
they maintain good customer relationship in the market. Thus CRM can help Axle construction
to build up a bond with the client leading to which goodwill is created in the market the company
which gives company the priority to lead in the market (Goetsch, and Davis 2014).
No company will gain competence if they will use the same application to run the business.
Thus, ERP can help Axle Cons. to gain competence by introducing and initiating software
according to the feature of clients and market.
Practicing EAI in the organization helps the company to merge innovation and excellence to
achieve greater position in the market. Also it is the need of Axle Construction to reconstruct
their management to achieve competence and improve information system (Peppard, and Ward
2016).
Conclusion
Thus, in the limelight of above events it shall be noted that Axle Construction is in a need to re-
engineer their information system to flourish the market and remove the communication gap as

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well. Initiation of programs like CRP, ERM etc. will help the company to build strong IS leading
to success of the company in the market.

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References
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Kale, V., 2014. Implementing SAP® CRM: The Guide for Business and Technology Managers.
CRC Press.
Laudon, K.C. and Laudon, J.P., 2011. Essentials of management information systems. Upper
Saddle River: Pearson.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Lenart, A., 2011. ERP in the Cloud–Benefits and Challenges. Research in systems analysis and
design: Models and methods, pp.39-50.
Melville, N.P., 2010. Information systems innovation for environmental sustainability. MIS
quarterly, 34(1), pp.1-21.
Nofal, M.I. and Yusof, Z.M., 2013. Integration of business intelligence and enterprise resource
planning within organizations. Procedia Technology, 11, pp.658-665.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Scheer, A.W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.

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Trkman, P., 2010. The critical success factors of business process management. International
journal of information management, 30(2), pp.125-134.
Willcocks, L., 2013. Information management: the evaluation of information systems
investments. Springer.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management, 37(4), pp.1019-1042.