JOMO KENYATTA UNIVERSITY OF AGRICULTURE

AND

TECHNOLOGY

BPS 4TH YEAR GROUP ASSIGNMENT (GROUP E)

GROUP MEMBERS:

1. GACHERU BRIAN WAWERU- HD211-3221/2011

2. MUGO VICTOR MAMBO - HD211-3265/2011

3. GITONGA J GATERE - HD211-3229/2011

4. FLEMINS MUTSOLI VUDOHI- HD211-0977/2011

DATE OF SUBMITION: 11TH OCTOBER

FACILITATOR: MR MBITHI

INTRODUCTION

An information system (IS) is any combination of information technology and people’s activities using that technology to support operations, management, and decision making.

In any business organization, data is the most important thing. Different types of information are produced from data. When the amount of data is large, it becomes more difficult to process this data manually. In order to get quick results and timely information, an information system is used in almost all organizations.

As the business grows, the amount of data also increases. As a result, it becomes more difficult to process the data manually. With the use of information system, data can be processed with rapid speed and information is generated quickly.

To run a business successfully, effective and timely decision-making is very important. The decision making is based on the information we get from the stored data.

The history of information systems coincides with the history of computer science that began long before the modern discipline of computer science emerged in the twentieth century. Regarding the circulation of information, numerous information systems still exist today that are continuously updated to improve data integrity and to improve the social effectiveness and efficiency of the whole process. In general, information systems are focused upon processing information within organizations, especially within the business enterprises, and sharing the benefits with modern society.

Our organization of choice is Country wide connections Limited a 33 hectare flower farm located in Kangaita about 9km off Nanyuki town at the slopes of Mt. Kenya. The farm was started in 2003 by two brothers, Richard Fernandez who owns 80% and Andrew Fernandez who owns 20%. It was started as a small organization with four Hectares as they build up to start huge commercial farming. In 2005 it achieved an expansion, from 4 hectares to 9 hectares. This has improved with a good range of expansion to 33hectares and giving up other three farms namely;

a) Kariki Limited in Thika – 22 hectares

b) Hamwe Limited in Naivasha – 26 hectares

c) Kudenga Limited in Molo – 29 hectare.

The company specifically deals with three types of flowers i.e. Eryngium, Hypercom and Roses. All the flowers are grown for the purpose of export of which, their major market destinations are Japan and Holland. Japan is a direct market where shipping is done according to the orders given while flowers going to Holland are sold on auction.

While conducting our case study on the information systems of the company we realized their main information system was carried out on software by the name Dansoft. Basically the software conducts nearly all the company’s activities i.e.

i. Warehouse functions. This includes the inventory control status, stock outs details, inventory levels, details of stock issues, keeps a record of all field supplier goods and goods received.

ii. Accounting functions. Keeps records of financial transactions, records supplier payments,

iii. Management functions. Keeping and updating of management reports.

iv. Sales function. Clear record of company’s sales,

On our further investigation, we discovered that the Dansoft software run on several information systems that enabled it to conduct the above stated activities and achieved its company objectives.

These information systems included:

i. Transaction processing systems

This is a system that involves the collection, modification and retrieval of all transaction data. The Dansoft conducted transactional process such as payment to the customers not necessarily through physical cash transactions but by direct wiring of funds to the customer’s bank a/c.

For instance, if the store manager would want to issue goods to a department, he will use the Dansoft to process the stores issue voucher (SIV), of which, after the processing of the SIV, the Dansoft would compute the remaining stock levels.

ii. Data warehouses

The data warehouse system is designed for query and analysis rather than for transaction processing it also contains historical data derived from transaction data. The Dansoft for instance, one can process the status of the flower sales in company, the suppliers statement of accounts and also the inventory status of which you may print them for a better view.

iii. Search engines

This is a platform by which one can be able to search for any records in the system. For instance in the Dansoft, while you would want to search for a particular transactional Local purchase order, you will have to go to the LPO category then range by either the date or the supplier transaction.

iv. Management information system.

The system is used to generate information to improve efficiency and effectiveness of decision making since it provides the information required by the management to make decisions. The Dansoft provides this information since it has a record of all the process in the supply chain thus in case of any need to the management to revise certain process the Dansoft will provide the basis of decision making. Such information is like; the management reports such as the budgeting details.

v. Office automation

This refers to the various computer machinery and software used to digital create collect, store manipulate and relay office information needed for accomplishing certain tasks. The Dansoft, since it is used by various departments at the same time, it has a strong Local Area Network (LAN) connection that allows user departments to transmit data, mail and all office operations such as printing across the network. In addition the office automation is stepped up by the availability of a strong internet network thus communication is facilitated worldwide. For instance, while sending of LPOs to suppliers.

Benefits of the information systems

I. Reducing the level of redundancy equates to cost savings. When redundancy is reduced, this saves on man hours worked and frees up the employees to take on other tasks. In addition, process can be streamlined through information systems which further reduce redundancy.

II. Efficiency in that when computers can take over some of the tedious, detailed and mundane tasks, this makes processes move more quickly with a higher degree of accuracy.

III. Investing in information systems keeps a business competitive and helps the organization carry the ability to maintain visible status in the economy. Without the information systems, the business will more likely fall rapidly behind.

Other notable benefits include

I. Central access to the organization.

II. Easy back up of the organization’s documents and files.

III. Central distribution of information

IV. Easy record keeping

V. Easy preparation of tax documents

VI. Easy customer trait identification

Challenges posed by information systems and their solutions

I. Organizational change

The organization is faced with a great challenge when updating their business environment to include new technology. Change is hard and management may find that many employees do not welcome this change for fear that some may lose their jobs. For instance, when the company introduced the information systems they had to lay off and also change duties of some of the staff especially those involved in record keeping.

The counter this challenge, the organization should hire personnel who are familiar with information systems hence reducing the resistance to change by employees.

II. Development and cost

Implementing information systems in the organization can be extremely costly hence it is critical to do proper analysis, design and testing prior to adding new systems as the business will want to be sure the technology will provide long term benefits and the costs do not outweigh the return on the investment.

III. Privacy and security

Information is a valuable commodity and there is a large responsibility that comes with maintaining data. Unfortunately security is put in the backburner in favor of other processes such as marketing, accounting or sales because these are what impact incoming revenue, however even one data breach can destroy a business. In addition the Dansoft is prone to hacks and when easily accessed by anyone, one can manipulate the data in the system.

To solve this issue, security should be given the top priority. Thus, implementation of, security passwords on the software should be put in place so that access to the system can be limited to authorized personnel. This also enhances accountability to those how have authorized access to the system.

IV. Rapid change in technology

New systems have to be put in place to replace the prior systems which are outdated of which might be an extra cost to the organization when it comes to replacing them.

A solution to this challenge is simply to outsource the information systems departmebt to a more superior firm which has expertise to handle such problems.

Conclusion.

In conclusion, its best practice to apply these Information Systems tactics in business as they are essential in the smooth flow of business.

Awareness should be made about these systems in organizations and should be lobbied for by the top management for effective application.