Assignment: InformationSystems Use in BusinessTask 1InformationSystems is a structured system of components which collect, store and convey information,it is set in place by an organisation through usage of information technology.
Its main objective is to underpin operations of a company through managementand decision making. Before the 1990’s and the rise of information technology,personal computers and the introduction of the mainstream internet; IS’s focuswas mainly on recording data such as ledger accounts, payrolls, inventorymanagement etc. In modern times, it focuses on facilitating seamless communicationbetween internal and external communications such as employees and partners (Universityof Scranton Online, 2017). One of its key aspects is to portray the flow ofinformation in an organisation using information technology systems. It alsodepicts how information reaches its intended outcome from how the informationwas initially received by the organisation as an input. Thepurpose of this assignment is to identify the key work processes within themanufacturing system of the company IKEA Industry by making use of systemsthinking concepts and applying the general systems theory.
(Hussain, 2017.) Moreover,we’ll be looking at explaining how the manufacturing system interacts with itsown sub systems and the people working inside them; additionally, we’ll beexploring how it interacts with other systems within the organisation to accomplishits desired goal. Furthermore, we will also be detailing both in text and in adiagram on how an output is produced from its initial inception as an inputwhich is processed and turned into an output which could come in the form of aproduct or a service.
The usage of informationsystems and operation systems will both be integrated into the report itself. Systemsthinking concepts is the understanding of a system through the examination ofhow the system is linked and the interactions between the components whichcomprise the entirety of the defined system. (Tate, 2009.) IKEAIndustry stands as one of the largest producers of wooden furniture in theworld and manufactures wood-based furniture for IKEA customers.
(Inter IKEA group,n.d) Together with external IKEA suppliers, they represent IKEA’s productioncapacity. It is part of the Inter IKEA Holding chain which was founded byIngvar Kamprad in 1989, and its overall purpose is to create products that havegreat customer value, in terms of quality and price. Alongside that, theirambition is to become a good example in aspects of business and people, whichincludes sustainability. (Inter IKEA group, n.d) Below is a diagram which illustratesthe various branches and how each of them link to the Inter IKEA Holding. IKEA Industries’Information System’s main purpose is to take requisitions to manufacture, createand distribute to the IKEA Supply chain who then deliver it to their retailchains where the furniture is available to customers. That is not, however, itssole and only purpose as they are also responsible with the research anddevelopment of their products, this is done by analysing for improvement; thiscould relate to the materials they used to shape the product and if there’s acheaper, more environment friendly alternative to use which adheres to one ofthe companies’ aims which is to have a positive impact on the planet, usingsustainable resources and producing more from less.
(Inter IKEA group, n.d)Theproposed area of work which I will focus on firstly is the manufacturing system.The diagram below portrays how raw materials are inputted into theorganisational system which is then processed by the manufacturing departmentin the form of converting these materials into a product which is furniture. Inthe system, we have two types of furniture which are produced, and these areknown as solid-wood or board based wood.
These raw materials are collected andbuilt to meet specific standards which they continuously review, and auditoperations conducted within the system to ensure this. Input Output Manufacturing Research and Development Purchasing Human Resource Management Finance and Accounting Marketing IKEA Industry Systems Feedback Solid Wood Board Based Testing In themanufacturing systems, there are also sub-systems which are interrelatingcomponents that interact with one another to form the entire system itself.IKEA Industry’s manufacturing system has three known sub-systems in place whichare known as divisions; these divisions are solid wood, board-based wood andtesting. Each of these sub-systems are set in place to produce specific typesof wood that are assembled differently, as they each have differing components.Workers are assigned to each of these systems depending upon their profession.
The solidwood and board-based wood sub-systems are both similar in a way, yet make useof different types of wood and their workforce consists specialists who haveexperience in creating these specific types of wood. On the other hand, thetesting sub-system works with the other sub-systems by analysing the finishedfurniture that has been produced by way of testing its quality and if thefurniture is durable, meeting the set requirements and standards expected ofthe company.Themanufacturing system does not only interact with its own sub-systems, but alsoother internal systems within the organisational structure itself. It does thisby communicating with other systems, examples of this could include how the financeand accounting system determines the set budget the system as a whole must workwith while calculating roughly how much raw materials would cost the manufacturingsystem which is a cost that varies; while the HR system focuses on recruitment ofspecialists and ensuring employees receive their wages, while the marketingsystem creates compelling advertisements to attract new employees, specificallyspecialists who hold experience in forming their raw materials into furnitureas well as blogs to show off their awareness for the environment (Team Hallam,2017) through their work. Purchasingsystem uses the budget allocated to them to purchase raw materials fromsuppliers which allows the manufacturing system to function. Finally, the researchand development system analyses ways in which the organisation can operate and whilekeeping the damage to the environment at a minimal, adhering to one their main aims.These systems interact together through disseminated information systems tocontrol and maintain production within the organisation which is eventuallydistributed across to IKEA suppliers who finally to their retail stores.
Task 2The usageof handheld mobile devices has become a norm over the years ever since itsintroduction to the industry. They have been used for many different purposesand provided individuals with many tools to help them in their everyday life.The introduction of mobile devices within IKEA Industry could help themanufacturing system in many ways; this would not only be a benefit to thesystem but the workers operating the system whose jobs may become lighter asthe introduction of mobile devices to the system could help in revitalisingtheir approach to how work is conducted in the organisation – with the focus ofpushing the organisation to be efficient.Themanufacturing system in IKEA Industry as it currently stands manually placesorders with their suppliers which leads to the hassle of securing a deal andnegotiating it each time requisition orders must be made.
If these deals andlinks were to be established only a single time and added into a database whichwould allow IKEA Industry to make use of a handheld mobile devices such asApple’s iPad to access the database and place a requisition order for rawmaterials which searches the database for the lowest price, leading to an orderbeing placed on it without the need of going through the entire process again.Orders can also easily be cancelled with a simple press of a button, assumingit hasn’t been dispatched to its location already. Asmartphone device such as a Samsung could bring can be used to controlautomated systems, software and devices within the manufacturing system. Thesecould be used to perhaps correct any issues that may prevent the systems tofunction properly by identifying and fixing the problem on the spot rather thanhaving to go about it manually.
Of course, a manual option would still beavailable as a last resort and maintenance is something expected so long as thesystem operates efficiently. Workers can effectively make use of this softwareto reduce routine check-up times as it would be done through the device. Itwill also allow supervisors to oversee the systems in use within the entiremodule to see if it doesn’t hinder the work of their employees, having accessto a detailed analysis.Anotherdevice that could be used to improve how stock is managed and kept track of inthe system could be the MC9200 mobile computer which is a tried and testedproduct used by various manufacturing systems across the globe to keep track ofinventory and manage assets of the business. This could help IKEA Industry keeptrack of their stocks easily, allowing them to remain on alert beforehand ifthey lack the assets required to manufacture their goods which in their casewould be raw materials, this can also be used to perhaps meet a requisitionrequest made by IKEA’s Retailers should stocks run low in the main branch.
Thisis an efficient way of monitoring stocks so that the organisation is free ofhaving to count their inventory and assets themselves.It can beargued that an MC9200 mobile computer is the better option out of all thesuggested mobile devices. The reason why is because of it’s popularity amongstorganisations which has shown its reliability and accuracy measuring inventoryand assets. This will allow the manufacturing system to be more productive andfeasible in the long run, allowing for faster production as they wouldn’t haveto worry about lacking resources as they would be well-prepared in advancethanks to the MC9200 mobile computer and therefore being able to meet andfulfil requisition requests in time by the main IKEA chain.
Overall, Ihave covered the general systems theory and applied it to information andoperation systems. It is an integral part of the aforementioned systems anddirectly underpins the structure of most organisations of the world. System thinkingconcepts have also been applied through the definitions of IS and OPS aspectswithin the manufacturing system of IKEA Industry. We have also identified thethree divisions in the manufacturing system which constitute as sub-systems. Ihave explained how the system works between the manufacturing system, and how itssubsystems interlink with one another to form the entirety of the systemitself; along with this, we have explained how my chosen discipline disseminatesinformation with other systems in IKEA Industry. To illustrate my findings furthera diagram has been constructed to help provide a visual representation of informationsystems inside IKEA Industry. Suggestionshave been provided to IKEA Industry on handheld devices which they can make useof to make their workers more efficient in conducting their operations.
These 3suggestions each focus on improving an aspect of the system; while highlightinga single one that I believe is the best course of action for IKEA Industry totake, outlining my reasons why I believe this while providing the benefits itwould bring to the business by linking it in with a potential scenario withinthe business. ReferencesTate, W. (2009). TheSearch for Leadership: AnOrganisational Perspective. 1st ed. Axminster: Triarchy Press.Inter.
IKEA Industry – Inter IKEA Group. online Available at: http://www.inter.ikea.
Our Business in brief – Inter IKEA Group. online Available at:http://www.inter.ikea.com/en/about-us/business-in-brief/Hussain, Z. (2017).
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