The Use Of Modern Information Systems Information Technology Essay

Porters Five Forces is a model for analyzing an administrations industry construction and its corporate scheme formed by Michael E. Porter. Porter identified five competitory forces that shape each individual industry and market. These forces assistance to analyze everything from the strength of competition to the profitableness and attraction of an industry.

1.1 Business analysis and demand

Competitive competition

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The competition in flower market is likely to drive Aalsmeer Flower Auction out of the market if they did non respond to the alteration in the market. There is a high dainty to Alasmeer Flower Auction since there is already an alternate electronic flower market ( Scribd, 2010 ) .

Menace of new entrants

The menace of new entrants is comparatively little. Due to the capital demand and the cyberspace as a new market channel, the entry barriers for new rivals are lower. The lone menace is likely to come from little auctions specialised in niche market. Therefore, the menace of new entrants is low ( Scribd, 2010 ) .

Dickering power of purchasers

Amalgamations and acquisitions between retail merchants increase the size and power of purchasers. Now, purchasers can derive economic of graduated table and able to repair the monetary value for the flowers. As a consequence of amalgamations and acquisitions between retail merchants, the purchaser ‘s power is high ( Scribd, 2010 ) .

Dickering power of providers

Agriculturists are the initial providers within the floricultural value concatenation. Agriculturists became more professional which led to an extra formal manner of making concern and involvement in electronic ways of selling. Therefore, the bargaining power is high and they prefer electronic ways of merchandising is a menace which is every bit high ( Scribd, 2010 ) .

Menace of replacements

The merchandises sold are flowers and potted workss, which are common goods. The merchandise is moderately steady but there is a menace of replacements. The menace is on the service side as a effect of the rise of cyberspace use ( Scribd, 2010 ) .

1.2 Information analysis and demand

Aalsmeer Flower Auction needs to be cognizant of its ability ( in term of cognition ) and the capableness ( in footings of cost ) to hold a new information system in order to develop information system for concern endurance scheme.

Feasibility survey

There is a deliberation of cost outgo to hold an electronic auction market. It is helpful in fixing budget and system rating. It is critical to hold cost-benefit analysis in order to cognize if the benefits outweigh the cost ( Scribd, 2010 ) .

1.2.2 Hardware and package demand

Aalsmeer Flower Auction needs information about hardware demand in order to put up electronic commercialism. Aalsmeer Flower Auction besides needs a computing machine plan that governs the operations of the computing machine. The plans allow computing machine to treat paysheet, direct measures to client and supply information to increase net incomes, cut down costs and supply better client service which are the chief aims of Aalsmeer Flower Auction for directors ( Scribd, 2010 ) .

1.2.3 Security

Every user ought to hold a Certificate Authority ( CA ) certification to guarantee peculiarity of the character for a close auction system. Any user with a CA certification can take part in whichever on-line auctions. The digital signature on command messages must be usage in order to avoid messages being tampered with in the transmittal ( Liu, Zhuang and Zhang, 2007 ) .

1.2.4 Maliciously command

Every bidder must pay premium to obtain the base on balls to avoid malicious command state of affairs. If person rejects to subscribe the contract and wage for the batch, the premium wo n’t be refunded when he wins the command. The successful bidder ‘s premium will be treated as a portion of the payment for the purchase, whereas the others will be refunded at the terminal of the auction ( Liu, Zhuang and Zhang, 2007 ) .

1.2.5 Fairness and instantaneity of auctions

The web hold is a cardinal issue for the online immediate auction theoretical account. Issues like concurrence of auction hall accepting same command monetary value at the same clip and equity caused by web hold are resolved by following C/S theoretical account, whereas non-critical informations such as auction picture informations, provinces of bidders and so forth, are transferred utilizing P2P theoretical account, which can better the efficiency of informations transmittal and enrich user experience ( Liu, Zhuang and Zhang, 2007 ) .

1.2.6 Transparency of command monetary values and bidder information

Bid monetary value is crystalline to everybody, but the bidder ‘s information is confidential. During auction, the server side knows activities of every bidder, including command monetary value, offer unit of ammunitions and command clip. However, bidders can merely see the corresponding monetary value and the paddle figure. It is an effectual manner to forestall bidders jointing to coerce the command monetary value down ( Liu, Zhuang and Zhang, 2007 ) .

Enterprise Resource Planning ( ERP )

Enterprise Resource Planning is a cross-functional endeavor system driven by an incorporate suite of package faculties that supports the basic internal concern procedures of a company ( O’Brien and Marakas, 2008 ) . For case, ERP normally process the information from and track the position of stock list, gross revenues, transportation and invoicing, every bit good as forecast natural stuff and human resource demands.

ERP normally consist of incorporate faculties of distribution, fabrication, accounting, gross revenues, and human resource applications that provide a company a real-time cross-functional position of its nucleus concern procedures such as order processing, gross revenues, and production, and its resources such as natural stuffs, production capacity, hard currency, and people.

Customer Relationship Management ( CRM )

Customer Relationship Management is a cross-functional endeavor system that integrates and automates many of the customer-serving procedures in selling, gross revenues and client services that interact with a company ‘s clients ( O’Brien and Marakas, 2008 ) . These systems track all of the ways in which Aalsmeer Flower Auction interacts with its clients and analyze these interactions in order to maximize client life-time value for the house.

CRM systems gaining control and integrate client informations from all over administration to consolidate and analyze the informations and after that distribute the consequences to customer-related systems and client touch points across the endeavor. Aalsmeer Flower Auction can do usage of this client cognition when they interact with clients to offer them with better service or to sell new merchandises and services. These systems can besides place profitable or non-profitable clients and chances to decrease the churn rate ( Laudon and Laudon, 2005 ) .

CRM systems can help Aalsmeer Flower Auction to raise client satisfaction, diminish direct selling costs, and cut down costs for client acquisition and keeping if decently implemented. Information from CRM systems can raise gross revenues gross by placing the most profitable clients and section for cross-selling, up-selling and focussed selling. Client churn will be diminished as gross revenues, service, and selling better react to client demands ( Laudon and Laudon, 2005 ) .

Supply Chain Management ( SCM )

Supply Chain Management is a cross-functional interenterprise system that helps back up and manages the web of concern procedures and relationship between a company and its distributers, providers, clients and other concern spouses ( O’Brien and Marakas, 2008 ) .

SCM systems automate the flow of information among members of supply concatenation so they can do usage of it to do better determination sing how much and when to buy, bring forth and transport. More accurate information from SCM systems diminishes uncertainness and the impact of the bullwhip consequence. The right motion of information makes it likely to properly clip orders, cargos, and production to understate stock list degrees and rush up bringings to clients ( Laudon and Laudon, 2005 ) .

Aalsmeer Flower Auction can utilize intranets to better coordination between their internal supply concatenation procedures, and usage extranets to organize supply concatenation procedures shared with their concern spouses. Internet engineering facilitates the direction of world-wide supply ironss by supplying the connectivity for administration in distinguishable states to portion supply concatenation information. Enhanced communicating between supply concatenation members besides facilitates efficient client response every bit good as motion toward a demand-driven theoretical account ( Laudon and Laudon, 2005 ) .

2.0 Objective and schemes


In order for Aalsmeer Flower Auction to better and travel frontward, it hopes to accomplish the initial aims of e-business activities which are:

To enable invention

To redefine the value concatenation in order to cut down dealing costs

To beef up the nexus with jobbers and retail merchants

To increase market portions

Information scheme

It is critical for Aalsmeer Flower Auction to see information systems as a series of engineerings that will back up efficient work groups, endeavor coaction and concern operations. It is indispensable for Aalsmeer Flower Auction to use an information scheme to achieve concern aims and guarantee competitory advantage.

Product distinction scheme

Challenge that the corporation faces in making merchandise distinction is to come up with a scheme which non merely creates value for purchasers, but besides makes it hard for rival companies to emulate. I suggested Aaslmeer usage Product distinction to accomplish organisations aims with systematic direction. With organized information, company can supply first-class services due to customized and individualized client ‘s demands. Below is how Product Differentiation Strategy helps in Aalsmeer concern.

How merchandise distinction aid in merchandise customization

Aalsmeer can larn from Dell and sells its flowers straight to clients utilizing assemble-to-order from warehouse. Certain flowers are customised for merchandising is what clients precisely want. For case, during valentine, non everybody geting for roses, they may inquire for others type of flowers. Customers can take their favorite flowers and put their order by accessing Aalsmeer web site. Once Aalsmeer receive the order, they assemblage the workss straight utilizing flowers from warehouse to carry through clients ‘ outlooks.

How merchandise distinction aid in merchandises

There are many types of flowers and workss at Aaslmeer Flower Auctions. Aaslmeer can utilize information systems to identify in the sum and types of flowers every bit good as client ‘s orders. Further, different seasons would bring forth different types of flowers. Customers will hold different demands for different seasons. By set out a database and key in the information of seasons and demands of flowers, it would enable Aalsmeer to suit the precise specifications of different client ‘s demands and convey convenience toward workers occupations. In add-on, Aaslmeer can differentia the merchandise from its rivals by modifying the merchandise being sold.

How merchandise distinction aid in timing

While come ining into merchandise distributions, it is important to make merchandise distinction and placement at the same clip. Information system can allow ‘s order processes every bit shortly as they were received and shipped in short period. Apart from this, Aalsmeer can acquire the first mover advantage to administer flowers and workss to stop clients based on the information in database.

How merchandise distinction aid in service ( e-business )

Minutess taking topographic point on the web are effortlessly. Internet ( e-business ) can assist Aalsmeer add excess value to bing merchandises and services or make new merchandises and services. Technology becomes of import in our day-to-day lives and offers many progresss to planetary. We can entree to internet at any clip and topographic points. Internet drives clients to instant minutess, convenient services. Aalsmeer Flower Auction can offer web-based trading system for consumers to buy flowers online to better customer-supplier relationship. Customers can salvage clip, bettering value by exposing clients to all monetary value options and best bargain. Through e-business, clients can compare the monetary values of flowers with another florist. Customers can see types of Aalsmeer Flowers Auctions online and take their clip to do determinations by comparing with others. A portion of this, clients can acquire fresher flower without get through the in-between adult male. Internet can assist bettering convenience and cut downing client attempt by distant buying and lets clients buy the flowers on anytime they want.

System development methodological analysis

Diagram 1

System Analysis

System Design





Production and care

Beginning: Laudon, K.C. & A ; Laudon, J.P. , 2009, pp.378.

3.1 System Analysis

Define and understand the problemDiagram 2



Develop alternate solutions

Choose the best solution

Implement the solution

Beginning: Laudon, K.C. & A ; Laudon, J.P. , 2009, pp.372

Define and understand the job

One of the jobs faced by Aalsmeer Flower Auction is the corporation still utilizing the traditional manner which is floricultural value concatenation to sell flowers and workss to clients. In add-on, another job is Aalsmeer Flower Auction has met the demands of agriculturists but non those retail merchants. The retail merchants request for smaller measures, freshman merchandises, more assortments of flowers, and multiple bringings every hebdomad to fulfill the changing of clients gustatory sensations. Amalgamations and acquisitions amid retail merchants have augmented their size and power, at the same clip agriculturists became more professional ; this besides leads to the jobs for the corporation. As a consequence, they would wish to alter from traditional manner to an electronic manner to sell flowers and workss.

The information demand for the solution is the corporation must react to these alterations to back up its concern procedures and to link with providers and clients.

Develop alternate solutions

Once specifying all the jobs, the following measure is to develop alternate solutions. There are three alternate solutions for Aalsmeer Flower Auction. The first solution is to streamline the bing procedures, which is trusting on manual processs. Following alternate solution is to custom-build a flowers and workss telling system utilizing Microsoft Access. The last alternate solution is to implement a system by utilizing an application service supplier which is the on-line dealing processing system.

Choose the best solution

Then, Aalsmeer Flower Auction must take the best solution. If the company would wish to take the first solution, however, if given a big Numberss of orders, every bit good as relationship with makers and shippers, redesigning and streamlining a manual ordination and bringing procedure would non hold many benefits.

If the corporation would wish to take the 2nd solution, the disadvantage is excessively clip devouring, dearly-won in footings of the scheduling costs plus the purchase of package, hardware and networking setup to run the system and associate it to the Internet. Even though it is really dearly-won, nevertheless it is utile because utilizing Microsoft Access can provides fast and accurate informations when the Numberss of orders are taken.

If Aalsmeer Flower Auction chooses the 3rd solution which is utilizing the on-line dealing processing system that provide templets and tools for bring forthing simple database system in short clip, provides the hardware for running the application and web site and can be accessed by legion users over the web.

Once specifying the advantages and disadvantages of every alternate solution, the 3rd solution is the most operable and best solution that Aalsmeer Flower Auction can be applied.

3.2 System Design

Once planning is come out and approved by upper direction, it is clip to put to death on system design. In this measure, specifications of the proposed system will be presenting ( what the system will make and how it will work ) . Programmer will discourse with developers and make up one’s mind what programming linguistic communication to utilize. Workflow will be laid out to assist for each demand. This can assist Aalsmeer accomplish to finish the systems on clip.

3.3 System Implementation

The system execution phase involves hardware and package acquisition, proving of plans and processs, transition of informations resources. It besides involves the instruction and preparation of terminal users who will run a new system ( O’Brien, J.A. & A ; Marakas, G.M.,2008, pp.464 ) .

Hardware and package acquisition

The acquisition of hardware and package is the major activity during the execution stage to implement new system. The corporation might necessitate providers to present commands and proposals based on system specifications developed throughout the design phase of systems development. Minimum acceptable physical and public presentation features for each hardware and package demands are established ( O’Brien, J.A. & A ; Marakas, G.M.,2008 ) .

Aalsmeer can measure proposed hardware and package by necessitating the processing of particular benchmark trial plans and trial informations. Benchmarking imitate the processing of typical occupations on several computing machines and appraises their public presentations. Then Aalsmeer can measure trial consequences to find which hardware device or package bundle demonstrated the best public presentation features ( O’Brien, J.A. & A ; Marakas, G.M.,2008 ) .


System proving might affect proving and debugging package, proving website public presentation, and proving new hardware ( O’Brien, J.A. & A ; Marakas, G.M.,2008 ) . Information system trials are appraised by users and reviewed by direction. The new system is accepted for installing one time all directors are satisfied that the new system meets the criterions.

Training and certification

End users and information system specializers are required for preparation to run the new system so that they will able to utilize the system. Documentation is an of import portion of the execution procedure. It serves as a method of communicating amid the people accountable for developing, implementing and keeping computer-based system ( O’Brien, J.A. & A ; Marakas, G.M.,2008 ) . Aalsmeer Flower Auction provided an on-line pattern country for user to pattern come ining informations into the system. It is besides accessible on the web, measure by measure direction usher for the system that can be downloaded and printed out as a difficult transcript manual.


It is mandatory to necessitate a transition procedure of altering from present system to new system. Aalsmeer Flower Auction uses the direct cutover scheme. This scheme is the simplest transition scheme which replaces the old system with the new system on an appointed twenty-four hours, transporting the hazard that there is no system to fall back on if jobs arise.

3.4 Production and Care

The organisation ‘s database has to be maintained by its new system so that they are ever accurate and up to day of the month. Therefore, new system updates the database of the organisation to reflect the alterations ensuing from twenty-four hours to twenty-four hours concern minutess.

Once the system had maintained, it can provides more efficient and effectual information for users. Other sweetenings include abilities for paying orders more rapidly and come ining orders information without waiting for specified get downing day of the month.

Impact and effectivity of new system

Once new information systems are introduced into an administration, it will hold some effects. The consequence may be distinguished in footings of impact on administration, direction and employees.


The administration has the effectivity of accomplishing the efficiency, legerity and reactivity required to win in a dynamic concern environment because the system provide the administration with cardinal concern benefits such as faster times to market, faster and more accurate order processing, strategic relationship with their providers and decreases in stock list degrees. Besides, the new system bettering and incorporating the administration ‘s internal concern procedures that result in important betterments in the efficiency and quality of production, distribution and client service. Furthermore, it reduces the dealing processing costs and hardware, package and IT support staff compared to the other system.


Equally good as holding an impact upon administrations, the new systems have an impact upon direction. The new systems may increase degrees of monitoring of work and make greater control of work by managerial groups. The systems enable big sums of transactional information to be captured about the daily activities of the work force. In add-on, it provides imperative cross-functional information on concern public presentation quickly to directors to well better their ability to do superior determinations in a timely mode across the full concern endeavor.


On the employees ‘ facet, the new system provided more authorization, duty and freedom to the employees which were reciprocally good to the direction. Each employee becomes more witting of his/her function whereas the system has given the assurance to put to death it separately and productively. The undertakings of employees become perfectly independent since the system succeeded in making off the demand of sole interdepartmental trust to arouse information. This leads to easing the procedure of managing and reacting client questions and undertaking client orders.


The execution of new information system will alter Aalsmeer operations compare to traditional system. New information systems provide more efficient ways to better Aalsmeer concern by presenting new system to pull clients ‘ attending. It helps in addition market portion and enforcing exchanging costs on their clients yet build competitory advantages. E-business helps Aalsmeer in improved communications, information and cognition sharing with its distributers and jobbers.

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