solution to ttsub270415_283684_1

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Solution 1 In this growing world it is very difficult to choose a business plan that meets the requirements of the stakeholders. Before entering in a business line necessary research and surveys needs to be done. As in business line, the demand is always changing and it is important to know the things that have been changed so that timely action can be taken so as to mitigate the risk that has arisen due to changing demand. In the given case the person choose to enter in Apparel line of business. As per the person’s expectations, there is very much scope of this line of business in the world. The fashion for cloths keeps on changing and if one stands in line with the changing needs and adopt itself for the same, and then it can flourish at a large scale. Firstly, goals need to be set up and vision needs to be established. The goals that has been set up needs to realistic. Before starting the business, necessary data needs to be collected and analysed. This data will provide useful information so the business can operate more efficiently and economically.

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Solution 1In this growing world it is very difficult to choose a business plan that meets the requirements of the stakeholders. Before entering in a business line necessary research and surveys needs to be done. As in business line, the demand is always changing and it is important to know the things that have been changed so that timely action can be taken so as to mitigate the risk that has arisen due to changing demand.In the given case the person choose to enter in Apparel line of business. As per the persons expectations, there is very much scope of this line of business in the world. The fashion for cloths keeps on changing and if one stands in line with the changing needs and adopt itself for the same, and then it can flourish at a large scale.Firstly, goals need to be set up and vision needs to be established. The goals that has been set up needs to realistic.Before starting the business, necessary data needs to be collected and analysed. This data will provide useful information so the business can operate more efficiently and economically.Data collected needs to be provided information related to: The industry To the competitors Demand in the market for different clothing products. Information about the market. Price range for different clothing product. At what price customers are willing to purchase the product. Demand of different product considering different scale of people in the society. Information about the manufacture of raw material available in the market and the price at which they will provide the material for further manufacture. Major exporters in the market. Prices at which the competitors are selling the like products in the local as well in the international market.The size of the work force depends on the market the entity is able to capture. In the given case it is expected that the entity is will achieve a turnover of round $150 million in year 1 and based on the same work force needs to be decided. The work force should be of optimum size so that the labour does not feel overburdened. By looking at the business growth and the market sentiments the entity should go for SAP as an ERP. The investment cost that the entity will incur on the development of the SAP ERP varies from model to model. However the entity should go for various models: Vendor Managed Inventory Business Intelligence (BI) Radio Frequency Identification Supply Chain ManagementThe entity has to incur approx. $10 million dollars to install the SAP ERP system. The annual maintenance cost will again depend on the number of machines ID the entity will be taking. However the approx. annual maintenance cost of one machine ID will be around $10,000 per year.

Solution 2We are living in an Information Age that requires great change and working. Managers in the organisations have to collect masses of data, convert that base data into valuable information, form adequate conclusions about that information that has been collected and take decisions that may lead to the achievement of business objectives. For an organization to flourish, information is as important resource just like money, manpower and machinery.AIS may be viewed as a mean for transferring of base data, which are used as necessary information in decision-making processes. The use of computers in an effective way to collect, distribute, organize and control information is spelling the difference between mediocrity and success in all industries.In case of Apparel line of business, the computer information system plays a very important role. The purpose of the Accounting information system is as follows:1. Transaction and accounting processing1. Sales and Marketing1. Production planning1. Computer aided management1. Real time managementThe developed management/Accounting information system not only improves the production process in the enterprise but at the same time also improves the relationship between subordinate and the managers.(Source: http://www.ssmrae.com/admin/images/1d9ad2a745d67cf5074ef33417692a67.pdf)The below diagram depicts the MIS and the decision making process:

Types of the management/Accounting information systems1. Transaction Processing Systems1. Operations Information Systems1. Decision Support Systems (DSS)1. Expert Systems and Artificial IntelligenceAdvantages of the AIS1. Core Competencies 1. Enhance Supply Chain Management 1. Quick Reflexes

Solution 3Development process and maintenance of the AIS.I would select SAP as my ERP for the apparel line of the business.The ways to go for the designing, developing, and implementing the system can be explained via SDLC (System Development Life Cycle).There are six phases in the system development life cycle1. Preliminary Investigation :It assesses feasibility and practicality of system and determines if a new system is needed.Three primary tasks are involved namely:0. Define the problem/Requirement: By observation and interview, determine what information is needed by whom, when, where and why0. Suggest solutions0. Prepare a short report2. System Analysis: It involves study old system and identifies new requirements and defines system from users view. It includes in depth study of the existing system to determine what the new system should do by expansion on data gathered in Phase In addition to observation and interviews, it involves examination of:0. Formal lines of authority (org chart)0. Standard operating procedures 0. How information flows0. Reasons for any inefficienciesFollowing tools are used in this stage:-Checklists - list of questions which help in obtaining details.Top-down analysis - start with top level components, break down into smaller parts through each successive levelGrid charts - to show relationship between inputs and outputsSystem flowcharts - charts flow of input data, processing, and output which show system elements and interactions1. System Design :- This stage involves:0. Design new/alternative system and0. Defines system from technical viewIt uses specifications from the systems analysis to design alternative systems and evaluate alternatives based upon:0. Economic feasibility - Do benefits justify costs?0. Technical feasibility - Is reliable technology and training available?0. Operational feasibility - Will the managers and users support it?Tools used in this stage are:-Computer-Aided Software Engineering (CASE) tools are software-based products designed to help automate the production of information systems. 4 System Development: In this stage, new hardware and software is acquired, developed, and tested by following steps:- Build the system to the design specifications 1. Develop the softwarei) Purchase off-the-shelf software ORii) Write custom software1. Acquire the hardware1. Test the new system a) Module (unit) test - tests each part of systemb) Integration testing - tests system as one unit1. Create manuals for users and operators5 System Implementation:-This stage involves following steps:-1. Convert from old system to new system1. Train users1. Compile final documentation1. Evaluate the new system

System Operation & Maintenance This stage involves daily operation and periodic evaluation and updating the system.Following steps may be involved:-Types of changes:0. Physical repair of the system0. Correction of new bugs found (corrective)0. System adjustments to environmental changes0. Adjustments for users changing needs (adaptive)0. Changes to user better techniques when they become available (perfective)Evaluation Methods0. Systems audit - performance compared to original specifications0. Periodic evaluation - checkups from time to time, modifications if necessary

Solution 4Capacity building is best viewed as aprocessof ensuring an adaptive, effective, and cost-effective substance abuse prevention system that achieves long-term results that benefit diverse stakeholders Organizational/infrastructure/system development is necessary to build capacity as well as to sustain effective prevention policies, systems, and programs, and therefore includes a sustainability component. The purpose of organizational/infrastructure/system development in the model is to build, support, and strengthen organization. This is accomplished by examining five factors which, if addressed intentionally through strategic planning, can facilitate building the infrastructure capacity. These include the following: Administrative structures and formal linkages. Champion and leadership roles. Resource development. Administrative policies and proceduresTaking these actions in support of the capacity building and sustainability objectives represent an on-going process, rather than a one-time, event.(http://captus.samhsa.gov/access-resources/factors-contribute-capacity-building-and-sustainability)The SAP would cater all the information and processing needs of an organisation it Allows easier global integration (barriers of currency exchange rates, language, and culture can be bridged automatically) Updates only need to be done once to be implemented company-wide Provides real-time information, reducing the possibility of redundancy errors May create a more efficient work environment for employees. Vendors have past knowledge and expertise on how to best build and implement a system User interface is completely customizable allowing end users to dictate the operational structure of the productThe future requirement can be understood with the help of the following diagram:

Enterprise Resource Planning (ERP) ERP is principally an integration of business management practices and modern technology. ERP is an amalgamation of three most important components:1. Business Management Practices, 2. Information Technology3. Specific Business Objectives.

Vendor Managed Inventory (VMI) Vendor Managed Inventory is a continuous replenishment program that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish merchandise at the store or warehouse level. In this program, the retailer supplies the vendor with the information necessary to maintain just enough merchandise to meet customer demand.

Benefits of the VMI process:Retailer benefits Reduced inventory Reduced stock-outs Reduced forecasting & purchasing activities Increase in salesSupplier benefits Improved visibility results in better forecasting Reduces PO errors & potential returns Improvement in SLA Encourages supply chain cooperation

Business Intelligence (BI)Business Intelligence (BI) refers to skills, processes, technologies, applications and practices used to support decision making.BI uses technologies, processes, and applications to analyse mostly internal, structured data and business processes while competitive intelligence, is done by gathering, analysing and disseminating information with or without support from technology and applications

Radio Frequency Identification (RFI)Includes wireless data capture and transaction processing.This technology provides additional functionality& benefits for product authentication.

RFID applications include: Inventory management (raw materials, work in progress, and finished goods) Improved efficiencies in the shipping and receiving of goods Reduction in 'shrinkage' (loss of goods or assets) Reducing 'out of stock' situations Asset and resource tracking proving quality control Improving quality control

Supply Chain ManagementSupply chain managementis the streamlining of a business'supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace.Supply chain management(SCM) represents an effort by suppliers to develop and implementsupply chainsthat are as efficient and economical as possible.Effective supply chains give businesses a competitive advantage in the marketplace and help mitigate risks associated with acquiring raw materials and delivering products or services. By implementing supply chain management systems, businesses are able reduce waste, overhead costs and shipping delays in a scientific way. The benefits of this systematic approach impacts areas ranging from product quality to order turn-around times.(http://smallbusiness.chron.com/advantages-supply-chain-management-systems-77606.html)

Thus to conclude an ERP will be the most suitable information system for the Apparel line of business. And the adoption of this system will take the company ahead of the curve as compared to other firms in the industry.

Solution 5The key system issues affiliated to SAP are as follows: The Software is very costly The software itself it not user friendly. The software is not compatible to all the browsers. This is not secure and the risk of project failure is always there. The SAP is inflexible as some of the times the SAP packages do not suit to the business model.Because of the above mentioned points the role of the chef information officer increases. He should choose the best SAP packages that suit the business model. Necessary cost benefit analysis should be done before selecting the package. He should make necessary arrangements for SAP training to the employees so as to make the software user friendly for the staff people.

Solution 6SAP professional team provides onsite support and updates the application system as and when required as per the maintenance agreement entered with them. To protect the system from the vulnerability of the entitys AIS to violation by employees and attacks by hackers following measures should be adopted.System protection and troubleshooting Antivirus software on servers and clients: Antivirus helps to protect the system from the malicious software and threats which are posed to the server and clients from the external internet sources, virus is nothing but a software which is designed to corrupt the normal functioning of the system, in todays world protection against viruses is very important as single virus can bring down the entire business systems if not detected on timely basis, real time scan of the data send and received from the internet is of utmost importance Firewalls: Firewalls protects the servers and client from the intruders to enter into ones organisation system, in todays competitive world everybody wants to know about what the competitor is doing for this people try to hire professional e=to enter other companies system for getting the proprietary information to have the cutting edge over them. Malware protection and detection software: should be installed to prevent the systems from the malicious software Data encryption: Should be done while transferring the data over the internet. Boot password and scanning on clients: to prevent the unauthorised access of the systems. Troubleshooting software/Professional: There are numerous of trouble shooting softwares available for repairing the damage done by the Viruses and malicious softwares, further help from the IT consulting firms and professionals can be hired for onsite instant troubleshooting. A business continuity plan needs to be developed which will have a backup site available in case of any natural calamity. Data back up: Data backup should be done offsite to a secure location which is insulated from all the naturel perils as far as possible. Dont click on unknown links: Phishing scams operate by sending simple looking emails from apparently trusted sources requiring for passwords, usernames or personal information. Some scam artists even create false Web sites that encourage potential victims from inputting the data themselves. (Source: http://global.sap.com/analytics/index.html)(http://www.entrepreneur.com/article/219954)

Solution 7ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise wide information across all the functional units of a business house. The following are major business processes which the ERP supports:

The examples of the internal control strengths and weakness are as follows:Weaknesses1) Over and under shipments of products2) Large number of accounting records are not recorded on a timely basis3) Anyone can perform a credit check4) Credit authorization processStrengths1) Computer can display all electronic merchandise that is available2) Orders directly go to the customer order database3) Company compares the sales order to the shipping notification information.4) Sales order is filed in chronological orderRecommendations to mitigate the control weaknessesPeriodic system Audits along with security and system threats protection measures mentioned in Solution 6Role of the AIS in enhancing the entitys business processRefer solution 4 for the detailed role of the AIS in the business process