Information Systems and Organizations: SCL Report Analysis

This report provides a comprehensive analysis of the information systems utilized by Smart Constructions Limited (SCL), a company specializing in smart home construction. It delves into various aspects including IT provisioning, the implementation of enterprise systems, and the necessity of Application Portfolio Management (APM). The report explores the significance of IT portfolio management, detailing the merits and demerits of purchasing versus leasing information systems. Furthermore, it examines the role and benefits of Decision Support Systems (DSS) for SCL, including different types of DSS and their advantages. The report also addresses the use of technology in smart homes, the concept of Outsourcing Relationship Management (ORM) systems, and the broader societal and environmental impact of smart home technology. The analysis provides insights into how SCL can leverage information systems for strategic advantage and operational efficiency.

Running head: INFORMATION SYSTEMS AND ORGANIZATIONS
Information Systems and Organisations: Smart Constructions Limited
Name of the Student
Name of the University
Author’s Note:

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INFORMATION SYSTEMS AND ORGANIZATIONS
Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Task 1: IT Provision and Enterprise Systems..................................................................2
2.2 Task 2: Decision Support Systems or DSS......................................................................6
2.3 Task 3: Use of Technology in Smart Homes.................................................................10
2.4 Task 4: Outsourcing Relationship Management or ORM System.................................13
2.5 Task 5: Smart homes Impact on Society and Environment...........................................15
3. Conclusion............................................................................................................................17
References................................................................................................................................18

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1. Introduction
IT or information technology can be referred to as a proper utilization of systems for
the core purpose of storing, retrieving, transmitting as well as manipulation of data and
information within the context of an enterprise or a business (Schwalbe 2015). Smart
Constructions Limited or SCL is a new construction organization, which has speciality in
building several residential houses, named as Smart Homes. They are currently operating in
highly competitive market. The unique selling point of this organization is provision of smart
living environments for residents in houses by using latest smart devices like smart electrical
switch, remotely adjustable thermostat, self-regulating actuator and digital sensor. They are
even using certain information systems for bringing major advantages by using long term
business strategy for embracing several initiatives like balanced portfolio development,
acquiring new technologically based partner companies and many more. The following report
outlines a brief discussion on the case study of Smart Constructions Limited with relevant
details regarding information systems.
2. Discussion
2.1 Task 1: IT Provision and Enterprise Systems
IT provisioning refers to the procedure for preparation and equipping any network and
hence allowing it to provide innovative and new services to the users. It is a major type of
enterprise wide configuration, management as well as implementation of several kinds of
resources for IT system (Dutta, Geiger and Lanvin 2015). This provisioning is the fourth
distinctive step within the management of OAMP or operations, administration, maintenance
and provisioning. This type of provisioning even provides services, software and equipment
to the customers, employees and users for having context in computer networking as well as
telecommunications. IT provisioning even provides different aspects in different

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telecommunications and thus is sub divided into few subsets like grid computing
provisioning, server provisioning, user provisioning, internet access provisioning and many
more.
Enterprise systems or ES are the large scale application software packages, which
eventually support all types of business processes, flow of information, usage of data
analytics in complex companies and many more (Bilbao-Osorio, Dutta and Lanvin 2013).
These types of systems also involve ERP or enterprise resource planning system, customer
relationship management software and enterprise planning system. Business intelligence and
data warehousing systems are enterprise wide packaged application software that is being
sold by the vendors of enterprise systems as they do not directly support proper execution of
business procedures and hence they are removed from the term. In Smart Constructions
Limited, a proper IT provision and enterprise systems are required for their long term as well
as short term strategies (Marchewka 2014). The details of this provisioning are provided in
the following paragraphs.
Importance of Implementation of IT Portfolio Management
Portfolio management can be referred to as the major skill, which an individual needs
to manage investments or resources efficiently. The IT or information technology portfolio
management eventually takes into account each and every planned or current IT resources
and hence providing a significant framework to analyse, plan as well as execute the IT
portfolio in the entire organization (Dahlstrom, Walker and Dziuban 2013). This type of
management also exist for creation, providing and even measuring the business value of
information technology. The information technology portfolio management is being built on
certain tools, which have the capability to measure the data like benefits, risks and costs
associated with the successful deployment of few IT resources that are spread in the entire

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enterprise. The entire process of portfolio development majorly starts with proper analysis,
planning, creation, assessment and balancing in three major areas of project, infrastructure
and application portfolios.
This specific portfolio management is being built on the core infrastructure related
services and resources like networks, storage, servers and systems for dealing with the
factors, which ensure that manageability and availability of portfolio items are possible and
these could be advantageous in respect to total financial or investment value within any
specific company (Holtshouse 2013). SCL has considered to examine their existing portfolio
of several enterprise systems for determination of new information systems and also deciding
on current systems that require replacement or up gradation. They can take up newly planned
initiatives and ongoing IT services so that they able to complete their IT provisioning and
enterprise system implementation in a better manner. These two would be extremely
beneficial for the organization as it would help them in application of systematic management
to the investments, activities and projects of IT department and enterprise systems (Lloyd
2017).
Mechanisms for Performing APM or Applications Portfolio Management
APM or application portfolio management can be referred to as a framework to
manage the enterprise IT software application as well as software based service. This APM
even provides the managers with the core inventory of organizational software applications or
metrics for illustrating the business advantages of every application (Bloom et al. 2014). The
complete visibility into an application landscape is extremely helpful for a company to
manage the expenses, to ensure alignment within business value chain and software for the
core purpose of promoting innovation and agility. All of these solutions even provide clearer

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insights regarding number of applications being used, respective business values and the
supporting technologies.
The most effective mechanisms for application portfolio management in SCL are as
follows:
i) Knowing Internal Customers: The internal customers’ demands are required to be
known by SCL so that they are able to deal with the organizational value chain and software.
ii) Creation and Sharing of Target Output List: A proper creation and sharing of the
target output list is the second mechanism that is appropriate for application portfolio
management (Kellermann and Jones 2013).
iii) Determination of Data Owners: The respective data owners are being determined
by this mechanism and it would be extremely effective for SCL.
Merits and Demerits of Purchasing Information Systems vs Leasing or Hiring these
systems from Vendors
The major merits and demerits of purchasing information systems are as follows:
i) Merits: The main merits are given below:
a) Information systems are assets to a company and hence purchasing them allows
better communication and constant availability of resources (Sittig and Singh 2015).
b) As it is a onetime investment, purchasing even ensures cost effectiveness and better
productivity.
ii) Demerits: In spite of having few advantages, there are some disadvantages as well,
which are as follows:

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a) Although, information system is cost effective, the maintenance cost is quite high
and it requires periodical maintenance.
b) This type of information system even incurs high security issues and hence
purchasing this system might be problematic (Robey, Anderson and Raymond 2013).
The major merits and demerits of hiring information systems from vendors are as
follows:
i) Merits: The main merits are given below:
a) The first and the most important and significant advantage of leasing these systems
from vendors is that SCL will not have to pay for the technology.
b) Entire maintenance costs are not required for the technology and hence it would be
extremely beneficial for SCL.
ii) Demerits: The main demerits are given below:
a) Although SCL will not have to pay the entire amount, a monthly subscription is
required, which can be a loss to the company (Watson and Tinsley 2013).
b) Moreover, they would not own the information system and hence they cannot do
any type of discrepancy with this system, else they would have to pay for the discrepancy.
2.2 Task 2: Decision Support Systems or DSS
Decision support systems are not yet considered by SCL for making their decisions
more effective and improvised. However, recently the management has decided to acquire a
decision support system in their business and for this purpose, it is highly required to
understand the major benefits to SCL.

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INFORMATION SYSTEMS AND ORGANIZATIONS
General Purpose of DSS with Different Varieties of DSS and Generic Benefits to a
Business Organization
DSS or decision support system can be stated as an information system, which
eventually supports any business or organizational decision making activity (Von Solms and
Van Niekerk 2013). These decision support systems even serve the planning, operations and
management levels of a company for helping the individual to make decisions regarding
problems, which might be majorly changing and are not easily mentioned in advance, which
refers to both structured and semi structured decision issues. The decision support system can
either be completely computerized or even human powered or even could be major
combination of these two. This particular technology is extremely popular as a tool since it is
effective for supporting decision making process and also for facilitating the organizational
processes (Zhilenkov and Chernyi 2015). DSS majorly focuses on adaptability and flexibility
for accommodating several changes within the environment and hence decision making
approach is enhanced majorly. It even emphasizes on features that make them much easier in
using by the non computerized proficient people within interactive mode and also attempts in
combining the proper use of analytic techniques and models with few functions of traditional
data access as well as retrieval.
The various types of DSS are as follows:
i) Communication Driven DSS: The main purpose of communication driven DSS is
to conduct a meeting for their users to collaborate. Online collaboration system is a major
example of this decision support system.
ii) Data Driven DSS: Maximum data driven DSSs are targeted at the managers and
service suppliers (Tarafdar et al. 2015). This is even utilized for a database and data

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warehouse and seek answers for purposes. Computer based database is an example of data
driven decision support system for adding value to the existing databases.
iii) Document Driven DSS: This type of DSS mainly targets a broad base of user
groups and it can easily find documents on a specific knowledge set or search term.
iv) Knowledge Driven DSS: The fourth variety of decision support system is
knowledge driven DSS, which mainly covers a broader range of systems for setting up few
basic systems and providing management advices.
v) Model Driven DSS: The final type of DSS is model driven decision support system
that help in analysis of decisions and selection within different options (Lee, Thomas and
Baskerville 2015).
The generic benefits of decision support systems to any business or organization are
as follows:
i) Time Savings: This type of information system is extremely time effective and
hence can be easily and promptly utilized within any organization as well as improvement of
employee productivity and computerized decision support.
ii) Enhancement of Effectiveness: The second generic benefit that is provided by
DSS is the enhancement of effectiveness (Tiwana, Konsynski and Venkatraman 2013). Any
business or organization can improve their decision making process and make decisions more
effective.
iii) Improvement of Interpersonal Communication: The organizational interpersonal
communication within employees is being improved and hence collaboration is also possible
amongst the decision makers. Improvement of data accessibility is also possible with decision

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support system. The organizations can gain this particular advantage from inward facing
decision support system.
iv) Competitive Advantages: The competitive advantages are also gained for any
business as decisions by this particular information system become highly effective and
efficient.
Opinion about SCL getting Benefit from having an appropriate DSS and sound
Rationale for Supporting View
Smart Constructions Limited would be getting several significant advantages from an
appropriate decision support system in their business. As they are into construction works, it
is highly advisable for them to implement model driven decision support system (D'Arcy et
al. 2014). This specific DSS can even remove the complexities to a high level and hence
providing t8he business to select amongst few significant alternatives. The selection of
correct alternatives will remove their complexity of wrong or inappropriate decisions in the
business.
Figure 1: Process of Implementing Decision Support System

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(Source: Hills 2018)
2.3 Task 3: Use of Technology in Smart Homes
Smart Constructions Limited is focusing on the utilization of technology in smart
homes and management of this particular organization is keen over the automation of several
operational procedures. This particular technology even wants to have an advisory panel of
several technology experts. Technology can be utilized in several methods for the core
purpose of facilitating the business organization (Ye and Wang 2013). It is even utilized for
organizing information and for aiding flow of information and transfer of data within any
organization so that business records are processed, tracked as well as organized. The method
of accomplishment of specific tasks and also to look smarter. Competitive advantages are
gained and customer care services are improved for saving time. Business communication is
majorly enhanced by the involvement of technology. As SCL is a construction company, use
of technology can provide better efficiency and effectiveness in smart homes.
Working Practices of Staff of SCL with Positive and Negative Implications of
Technology Uses on Staff
Since Smart Constructions Limited is into construction field, it is required to
understand the working practices of their staff. The first and the most important working
practice of staff is meeting organizational goals and objectives (Tafti, Mithas and Krishnan
2013). They ensure that construction safety and security aspects are being fulfilled in an
efficient manner. The second working practice is that they are making eco-friendly
environments and remotely controlled operations so that execution of a balanced portfolio of
enterprise information systems is possible for them. Moreover, they are also making houses
that can be heated by solar energy.

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INFORMATION SYSTEMS AND ORGANIZATIONS
The positive implications of technology utilizations on the staff of Smart
Constructions Limited are as follows:
i) Technology could be extremely helpful for moving their business forward
effectively.
ii) Moreover, incorporation of technology on the staff could even help out an
organization to run smoothly as well as efficiently.
iii) The staff of Smart Constructions Limited should understand about the significant
value of any product and hence become proficient in nature (Sun and Jeyaraj 2013).
iv) Technology also increases the knowledge of the staff so that they are able to
understand the complexities of work eventually.
Although, technology in Smart Constructions Limited would be extremely effective
for the staff of this particular organization, there could be some of the major and the most
significant negative impacts that would be common for the organizational members and these
negative implications are as follows:
i) Excessive training of technology can have a negative effect on the employees as
few staff might not be able to acquire this knowledge easily and promptly.
ii) Few staff are technologically challenges and hence they might face utmost
difficulty to grasp new programs as well as any other form of technology.
iii) As SCL is a construction company, they often can require to utilize hand held
devices for communication (Passey and Samways 2016). However, staff would not might like
the new modes of communication and might prefer old modes of communication and thus
issues can arise.
Operational Processes of the Organization with Advantages of Automation

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INFORMATION SYSTEMS AND ORGANIZATIONS
Smart Constructions Limited is operating in a highly competitive market, although the
unique selling point of this particular organization is the provision of smart living
environments for every resident in smart homes with the proper utilization of the latest
technologically smart devices like remotely adjustable thermostat, self-regulating actuator,
smart electrical switch and digital sensor (Madon and Krishna 2018). They are also operating
in such a manner that the houses, which they would be constructing would be parts of eco-
friendly environment and the remotely controlled operations in house might have full tamper
proof security, heating by utilizing solar energy and smart lighting. Such new styles of houses
are eventually becoming more attractive to the prospective users and hence Smart
Constructions Limited is growing faster than other construction businesses (Stein et al. 2015).
Several important and significant operational processes are also present within the
organization and hence they have decided to implement more long term and short term
strategies for embracing new initiatives like balanced portfolio development, acquiring new
technologically based partner companies, determination of secondary functions and many
more.
Since the management of this particular organization has also decided to implement
automation, they would be gaining some of the major and the most significant advantages of
this particular technology. The main advantages of automation are as follows:
i) High Output: This is the first and the foremost advantage of automation that SCL
might obtain. The productivity is highly enhanced and hence it becomes extremely easy to
deal with employee complexities in a better manner (Okumus 2013). Moreover, there is a
greater control as well as consistency of product quality and it even increases the process
control for making more efficient utilization of materials.

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ii) Safety of Workers: Since Smart Constructions Limited is a construction company,
it is extremely important for them to maintain safety of workers. Automated systems
eventually remove the workers from work place and hence safeguarding them against any
type of factory hazard environment is possible. The effect of promoting utilization of robotics
and automation within the factory of SCL is high.
iii) Reduction of Man Working Hours: Automation would even reduce the number of
hours worked on average per week by the factory workers and hence Smart Constructions
Limited would be benefitted (Fortunati, Pertierra and Vincent 2013). Moreover, time needed
for processing a specific production order would be reduced, thus providing better efficiency
to organizational production.
2.4 Task 4: Outsourcing Relationship Management or ORM System
The management of Smart Constructions Limited has decided to outsource few
functionalities of business and even want to deploy a specific system of ORM.
Specific Benefits to be obtained by SCL by Outsourcing Certain Functions and
Operations
Smart Constructions Limited will be eventually gaining some of the major and the
most significant advantages in business after outsourcing few functions and operations and
these advantages are as follows:
i) Improved Focus on Business Activities: They would be able to improve their focus
on every important and significant business activity and by focusing on the strengths and
allowing the staff to concentrate on the most important tasks as well as future strategies
(Marinagi, Trivellas and Sakas 2014).

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ii) Increased Efficiency: The business efficiency would be highly increased if
outsourcing is done in a better manner and hence achieving more productive and efficient
services for carrying out the services, with greater quality.
iii) Greater Competitive Advantages: Outsourcing even helps in leveraging
subsequent skills and knowledge and hence making the business of SCL more agile and
flexible in comparison to others.
iv) Controlled Expenses: The expenses are controlled and thus Smart Constructions
Limited would be able to reduce their organizational expenses in a better manner.
General Description of an ORM System
The ORM or outsourcing relationship management system is a business discipline
that is widely adopted by various organizations for managing one and more external service
providers as one of the major parts of this outsourcing strategy (Taipaleenmäki and Ikäheimo
2013). This particular system of ORM eventually encompasses several components of
organizational structure, IT infrastructure and management strategy. It is complementary to
few enterprise management strategies and produces several advantages in an efficient and
effective manner.
Discussion on Process of Implementing ORM for providing Benefits to SCL
SCL would be gaining several significant advantages like supply chain management,
human resource management, sales force automation and customer relationship management
in their business if they would implement ORM system. The process of implementing ORM
for being beneficial to SCL is as follows:
i) Exploration: In this particular step, the need for change is being identified and
learning about all possible innovations is done for gaining solutions in an effective and

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efficient manner (Strohmeier 2013). A proper assessment of the resources in SCL is being
done for development of communication procedures for supporting the work and also
deciding to proceed.
ii) Installation: The second important and significant step in the process of
implementing an outsourcing relationship management is installation. It helps in securing as
well as developing the core support that is being required for putting a completely new
approach as well as practice as intended and even developing subsequent feedback loops
within leadership level and practice for the core purpose of streamlining communication and
even gathering feedback on how these new practices are getting implemented.
iii) Initial Implementation: Proper innovative measures are taken in this step and
proper improvement strategies is being developed on the basis of data. The implementation
support is being refined on the basis of data.
iv) Complete Implementation: ORM is completely implemented after skilful
utilization of well integrated innovation and hence SCL would be able to implement this
system effectively.
The supply chain management and CRM would be enhanced in SCL after successful
implementation of ORM and this is extremely important as SCL is a construction company.
2.5 Task 5: Smart homes Impact on Society and Environment
The commercial utilization of information technology also encompasses telephony as
well as computerized technology. A limited scope for functionalities and generalized
computing machines are being used to get programmed for several tasks. Since the entire IT
industry is being evolved with computing capabilities, the energy consumption and device
costs are also considered here. Information technology involves several distinctive layers of
physical equipment, automation tools, management or virtualization, software applications

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INFORMATION SYSTEMS AND ORGANIZATIONS
and operating systems required for performing essential functionalities (Hills 2018). The
users’ devices, software or peripherals are also eventually involved in the respective IT
domain. It refers to all types of architectures, methodologies as well as regulations that
govern the proper utilization or storing of data. The various business applications even
involve databases and transactional systems, customer relationship management as well as
enterprise resource planning software.
By developing smart homes, SCL is positively impacting environment and society.
Environmental Changes due to Smart Technologies
After implementing smart technologies, there has been major changes in
environments. The devices and networks, which could collect as well as make proper
utilization of data regarding environment and major impact on it. The major sources of
renewable energy like solar and wind are being integrated and power is distributed for
obtaining more efficiency. Hence, electricity usage is managed effectively for homes.
Cultural Changes in Society for Digital Environments
The cultural changes are extremely high for digital environments. The organizational
human resources and information technology department are solely responsible for
overseeing of provisioning process that is being applied for monitoring customer and user
access and hence ensuring resource security. This particular technology is even considered to
be a major subset of ICT or information and communications technology. The information
technology system is a computerized system, which solely includes software, hardware, and
any type of peripheral equipment that is being operated by a distinctive group of users
(Zhilenkov and Chernyi 2015). The users have been eventually storing, retrieving or even
transmitting information through information technology by means of three categories, which
are processing techniques, application of mathematical or statistical methodologies towards

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INFORMATION SYSTEMS AND ORGANIZATIONS
decision making procedure and finally simulation of the high order thinking with the help of
computerized programs. Information distribution is possible with various significant
technologies, products or services that are solely associated with information technology.
Data storage is also possible with this technology and organizational databases are also well
managed here. Thus, digital environments are the major causes of such changes.
3. Conclusion
Therefore, from the above discussion, it can be concluded that information technology
is a proper utilization of networking devices, storage devices, computers, physical devices
and even infrastructures or processes for creation, processing, storing, securing and
exchanging of all forms of electronic data. This is even used in the significant context of
organizational operations as being opposed to the entertainment or personal technologies. The
above provided report has clearly demonstrated various details about Smart Constructions
Limited. They have been serving their customers with smart homes so that it becomes much
easy to deal with all complexities of information systems and technologies. Better links are
developed by them with building related companies as well as outsourcing certain secondary
operations and functions. An establishment of the level of need for relevant technology
experts as respective panel members are also being examined in this particular organization
for staff training and advisory purposes. They are concerned about the above mentioned
changes and hence have appointed an UK based consultancy firm for advice. This report has
described about IT provision and enterprise systems, decision support systems, use of
technology in smart homes, outsourcing relationship management or ORM system and
impact of such devices on society and environment with major details.

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