Information Systems

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Information Systems CHAPTER 1 1.0 INTRODUCTION 1.1 CORPORATE PROFILE. Aalsmeer Flower Auction is the world's leading flower and plant auction, more than 5.6 billion plants and flowers are sold each year. With the largest single trading facility in the world, at nearly 1 million square meters, the Aalsmeer, Netherlands, facility processes nearly 20 million flowers and more than 2.4 million plants and garden plants each day. Aalsmeer uses a clockbased system of descending bids, also known as the Dutch auction, which enables such highspeed, high-volume. Aalsmeer Flower Auction is µthe world marketplace for flowers and plants¶ as they set the world prices by bring together supply and demand. They are supplied by around 7000 growers worldwide, and bought by 1375 wholesalers and exporters. Within a couple of hours, they are exported to almost every country in the world. 1.2 Relationship between business strategy and IS/IT strategy Johnson and Scholes (2001) define an organizational strategy as:´The direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a changing environment to meet the needs of markets and to fulfill stakeholders¶ expectations.´ Successful firms have an overriding business strategy that drives both organisational and IS strategy. The IS strategy is affected by changes in a firm¶s business and organisational strategy. The IS strategy must be compatible with the business strategy and also with the overall corporate strategy and other functional areas of the organisation. As such, a company should have an IS/IT strategy for a number of very important reasons. * IT/IS involves high costs and is critical to the success of many organizations. * IT/IS is now used as part of the business strategy in the battle for competitive advantage. * IT affects all levels of management as it span many or all functional areas of a business. * IT involves many...

Information System - Alsmeer Flower Auction Information System - Alsmeer Flower Auction Introduction This assessment work will consider how the use of modern information systems and technology might ensure the continued success of the Aalsmeer Flower Auction. The report will look at the type of business, information requirements, information strategy which can help Alsmeer Flower Auction to cope with changing environment. Also will take into consideration the impact and effectiveness of a new system for the

organisation, management and employees. Business Analysis Aalsmeer Flower Auction (Bloemenveiling Aalsmeer) is a flower auction, located in Aalsmeer, the Netherlands. The Netherlands is the heart of the international floriculture sector. It has an intricate and highquality network of companies, ranging from breeders and growers to sales experts and export firms, representing every aspect of the business. The Netherlands is the place where supply and demand come together. From Europe and beyond (source: About FloraHolland http://www.flora.nl/en/AboutFloraHolland/Pages/default.aspx). On January 1, 2008 the Aalsmeer Flower Auction merged with their biggest competitor FloraHolland. FloraHolland flower auction plays a key role in the Netherlands, land of Floriculture where its position as marketplace fulfils the role of matchmaker, intermediary and knowledge center. Figure 1. FloraHolland key facts Number of centers 6 (Aalsmeer, Naaldwijk, Rijnsburg, Bleiswijk, Venlo and Eelde). Number of clocks 40 Number of members 5,000 Number of supplyers 9,000 Number of customers 3,500 Number of employees 4,400 Most important import countries Kenya, Israel, Ethiopia, Ecuador and Germany Most important export countries Germany, United Kingdom, France, Italy and Belgium (source:http://www.flora.nl/en/AboutFloraHolland/Cooperative/Pages/Factsandfigures.aspx) One of the most important part of FloraHolland Company is Aalsmeer Flower Auction which offers... oportunities and threats facing Aalsmeer Flower Auction. Strengths Very efficient transfer of product from seller to buyers Buyers can directly inspect the product in the auction hall if they wish The auctions, by centralizing and requiring the product to bedelivered prior to sale, minimizes opportunism

Top flower shop in the world W eaknesses The buyers have to come to the auction halls and sellers haveto deliver products to the auction hall Packaging cost are incurred multiple times for transport toand from the auction Auction rules tend to favor the growers Opportunities New technological opportunities Increase in market share Redefine value chain Strengthen links with wholesalers T hreats Direct selling is seen as a threat to existing growers who areobligated to sell via the auction with higher cost for buyers Increasing trade outside the auction Increasing internationalization of the organization Loss of sales Threat of becoming non-operational

The Value Chain Model The value chain model highlights specific activities in the business where competitivestrategies can best be applied and where information systems are most likely to have astrategic impact (Porter, 1985). It identifies specific leverage points where the firm canuse information technology most effectively to achieve competitive advantage.This model views the firm as a series or chain of basic activities that add value to thefirm¶s products or support activities. In analyzing the case, it was clear that thesupport activities of Aalsmeer were all affected by their move to outsource their information technology to IBM. Porter argues that the ability to perform particular activities and to manage linkages is a source of competitive advantage

Analysing the exchange organisation Due to the convergence of IT and telecommunications, proliferation and availability of bandwidth, which is Amount of traffic transmitted from the site. The impact of electronicmarket is expected to increase rapidly. Their effectiveness is quite dependent on themake and design. 2.4 Industry-level strategy and Information Systems Firms together comprise an industry. The key question at this level of analysis is ³ How and when we should compete with as oppose to cooperate with others in theindustry?´ Whereas most strategic analyses emphasize competition, cooperating withother firms in the same industry or firms in related industry in certain situations at timescan be very profitable.One of the principal concepts for analyzing strategy at the industry level is the Porter¶scompetitive forces model. The Company has now reached global Sales status. This means that the quantity of Customers would have multiplied, considerably. The Company must now keep abreastwith all of the information requirements to manage its financial portfolios, MarketingChannels and Storage Facilities, thoroughly.This will/must be done via all outlets available in the Electronic Media. The e-tradingservice allows information to move at the click of a button, bringing buyers and sellers of the world together, instantaneously.As the IT consultant, it is recommended that the implementation of information systemswould improve communication searches, monitoring and information sorting capabilities,to reduce transaction costs and all purchasers to take advantage of productioneconomics available in the markets. Systems Theory and Systems Development Systems Theory Provides a powerful means of analyzing and improving businessprocesses. It is the study of the behaviour and interactions with and between systems.Systematic developments are the activities that go into producing an information systemsolution to an organizational problem or opportunity. It is a structured kind of problemsolving with distinct activities consisting of system analysis, systems design,programming, testing, conversion, and production and maintenance.With the possible implementation of information Systems at Aalsmeer, there are anumber of models that could be looked at in developing new systems for the company

3.2 The SDLC Model The SDLC model is an alternative representative of the waterfall model, developed andlaunched by the National Computing centre in the UK in 1996. However, in the SDLCmodel, recognition is also given to the user in that the build phase should onlycommence once user requirements have been determined and the system designproduced. Also, in addition to the life cycle phases, the concepts of projectmanagement and change management have been added to reinforce the notion thatinformation systems projects do not take place by chance but that they must bemanaged carefully. T he Systems Development Life Cycle (SDLC)

There are however potential weaknesses of this system. This includes maintenanceworkload, application backlog, lack of control inflexibility failure to meet the needs of management, problems with documentation and maintenance workload. 3.3 The SSADM MODEL Structured Systems Analysis and Design Method (SSADM); Defines the methods of analysis and design that should occur in a large scale software development project. It is used extensively in the UK, particularly in government and public organizations.´ Bocij et al; ( 2 006). This uses methodologies such as feasibility study,requirements analysis, and review of business options, technical options, logical designand physical design. However SSADM only covers part of the SDLC with emphasis onanalysis and design. 3.4 ETHICS MO D EL This model is referred to as the Effective, Technical and Human Implementation of Computer based Systems, proposed by Enid Mumford (1995), This people¶s orientedapproach embodies a sound ethical position and encompasses the sociotechnical viewthat to be effective, the technology must fit closely with the social and organizationalfactors in the application domain. This results in an improved quality of working life andenhances job satisfaction and the users must be a major objective of the systemsdesign process. The philosophy of ETHICS is one that perceives the development of computer systems not as a technical issue but as an organizational one which isconcerned with the process of change and hence involves participation. http://www.scribd.com/doc/50323143/Aalsmeer-Flower-Auction-Assignment

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