Analyzing SSL’s Information System Strategy And Potential Investment Opportunities

Assessing SSL’s Current Portfolio of Information Systems

An information system is concerned with integrated infrastructure, for example, hardware and software, which are used by companies or individuals to manage information (Bajdor & Grabara, 2014). The following are some of the ways in which SSL company may identify the value of its current information systems:

• By determining whether information systems help it in achieving its objectives. Companies have different objectives that can be achieved by using different information systems (Dwivedi et al., 2015). Therefore, management of SSL company must consider its objectives when identifying the value of its information systems. Hence, its information systems are of high value if they assist the company in achieving its objectives. On the other hand, information systems are of low value if they don’t assist SSL company in achieving its objectives.
• By determining whether information systems assist in decision making (Dwivedi et al., 2015). SSL company can determine if its information systems contribute vastly to the process of making important decisions. Currently, many companies rely on information technologies, for example, data mining to make better decisions concerning services they offer to customers (Wu, Zhu, Wu & Ding, 2014).).
• Estimating costs that are incurred for maintaining its information systems. Maintenance cost is one of the key factors that is used to identify the value of information systems (Dwivedi et al., 2015). Therefore, management of SSL company can conclude that its information systems are of low value when maintenance cost is very high. Similarly, information systems will be of high value if maintenance cost is low.
• By evaluating performance of its information systems. For instance, performance is one of the non-functional requirements of information systems, which enhances smooth running of business operation (Dwivedi et al., 2015). Other non-functional requirements include reliability. Therefore, information systems are of high value when they are dependable. On the contrary, they are of low value when they are unreliable.  

Net Present Value (NPV) is one of the techniques that may be used. It plays vital roles in assessing value of IT systems in future rather than confined to the current value. Creating value of information systems is one of the objectives of most companies around the globe. This can be achieved by making better investment decisions (Harrison & Lock, 2017). The following are some of the factors determining investment decisions; resources and time. Therefore, SSL company may use NPV to determine future benefits of information systems, and afterwards, making better decisions for investments. Apart from NPV, analysis of risks associated with a certain information system prior to deployment is equally important. There are many risks in relation to information systems, for example, security breaches, infrastructure failure and technical failures. Effects of these risks are fatal since they can result in data corruption, hence affecting availability of information (Peltier, 2016). Therefore, SSL may invest on information systems with less risks. Moreover, cost-benefit analysis technique may also be used. For instance, costs incurred for a certain IS can be evaluated basing on its benefits (Mishan, 2015). Therefore, SSL company should consider investing on information systems with less costs.

In many parts of the company, it is clear that SSL do not have a coherent IS strategy. Analyze how it may construct an IS strategy that is supportive of its business strategy and the benefits that it would derive from this.

Understanding objectives of the business. Each business has its own objective, which can be achieved through activities performed by different departments. Therefore, management should understand roles and responsibilities of different departments for achieving a common goal. Objective understanding forms the basis for creating an appropriate IS strategy (Galliers & Leidner, 2014). For instance, the following are some of the objectives of SSL company; transporting amounts of cheques between businesses and provision of security services to businesses as well as homes.

• Understanding necessary information required by the business. Business objective is stated explicitly prior to understanding information needs (Laudon & Laudon, 2015). This can be achieved by identifying major processes that are carried out in different divisions. These major processes are important for ensuring smooth running of business operations. SSL company consists of the following divisions; PTD, BSD and DSD. Responsibilities and roles vary from one division to another. Therefore, PTD division requires information related to transport while security information is vital in BSD division. On the other hand, DSD requires security and marketing information.
• Understanding future direction of Information Systems. This can be achieved by understanding goals of the business (Cassidy, 2016). Also, predicting of future goals of a business is equally vital. At first, SSL company can evaluate the value of its current IS, and afterwards, identifying gaps especially related to security and performance. For instance, one of the gaps identified can be lack of IT personnel in DSD division. The following are some of the other areas that can be identified at this step; missing data, therefore; ensuring that its available when the need arises (Amjad, Sher & Daud, 2012). Moreover, information related to data inconsistency and duplication is equally vital, hence enabling SSL to take appropriate measures for control and management of risks.
• Enterprise architecture definition. Data consolidation can be defined as the process of grouping data that has been gathered from different departments together. It is a very important process as it maybe used to define conceptual enterprise architecture (Pearlson, Saunders & Galletta, 2016). Enterprise architecture includes different ways which can be used to access data, for example, devices such as mobile phones and PCs can be used. Android and web-based applications can be developed for mobiles phones and PCs respectively. Moreover, processes involved in the business can be represented by using UML diagrams such as sequence and class diagrams (Pearlson et al., 2016). Therefore, SSL company may come up with structural conceptualization of the overall information system.

Analyze the strategic potential for greater investment in information systems and technology at SSL both from a divisional and company-wide perspective. Could business process re-engineering be a useful tool in maximizing the potential of IS and IT within the company? Explain and justify your answers.

Constructing a Coherent IS Strategy

SSL company has a chance of investing greatly in information systems. This can be made possible since it consists of a headquarter for managing its services. Therefore, it can incorporate business systems such as ERP that can enhance automation of activities as well central management of resources (Seethamraju, 2015). Besides, it has also several divisions such as PTD, BSD, DSD and HOSD. Therefore, SSL company may utilize ERP systems to manage all activities that are carried out within the company ranging from divisional levels to the company-wide perspectives. ERP systems can also be vital in enhancing relationship between the company with its customers, therefore; maintaining the number of customers (Seethamraju, 2015. Besides, data from various departments can be sent over the network rather than sending manual. This can reduce time that is spent for recording it in legacy systems. Moreover, SSL company has a chance adopting BYOD policy, which can allow its employees to use their devices such as computers and mobile phones to access network of the company (Bratthall & Lindström, 2018).

Similarly, divisions of SSL company also a chance of investing much on information systems. For instance, the three computers that are used in this division can be networked, and afterwards, share some resources such as printers. Besides, IT specialist can be employed since information system is managed by an ex-policeman presently, therefore; ensuring smooth running of information systems (Cassidy, 2016). On the other hand, BSD company can incorporate marketing team for advertising its services and products rather than relying on sales team. Consequently, marketing team can integrate latest marketing tools such as social media sites, for example, Facebook and twitter (Stelzner, 2014). BSD department can also replace its legacy systems, therefore; enabling it to send ledgers rather than hardcopy. Furthermore, formats that are used in DSD division can be standardized. Finally, HOSD division can maintain its systems efficiently since it has integrated several IT technologies.

Regarding business process re-engineering, it can be a useful tool in maximizing the potential of IS and IT within the company according to my views. The following are some of the reasons:

• Process re-engineering enhances performance of IS, therefore; ensuring smooth running of business operations (Lotlikar, Dsouza, Kamath & Apuri, 2018).
• Enhances process of making better decisions in the company.
• Business re-engineering is useful as it can enable SSL company to compete effectively with its competitors.
• Re-engineering of business processes can result in evolving culture of a company, therefore; enabling management to accept necessary changes (Novikov, Pykhtin, Gureva, Sozinova & Prokhorova, 2016).

Regarding current location of IS functions, there are three PCs at PTD division. These computers have been tasked with the following roles; financial ledgers, router planning and duty roasting. PDT division is situated in Bedford. The information system function is managed by an ex-policeman. The ex-policeman makes better decisions as well as consulting support although he’s not an IT specialist. On the other hand, BSD division is in Leicester. Its management structure consists of the following sections; sales, marketing, finance and purchase sections. Several information systems have been incorporated into these sections, for instance, sales data is recorded, and afterwards, sent on floppy disks. The data is sent to Milton Keynes. Apart from recording sales information, this division has also marketing system as well as sales tracking. The sales force is responsible for marketing. Moreover, a PC is used to run financial ledgers. These ledgers are sent to the head office by using hard copy since they are incompatible with information systems that have been integrated at the head office. Furthermore, a PC is used for payroll processing. A 24-year-old graduate is responsible for managing IS function in this division.

Potential Investment Opportunities in Information Systems and Technology

Apart from PTD and BSD, the following are other departments within SSL company; DSD and HOSD. DSD is in Newcastle-upon-Tyne, while on the other hand, HOSD is situated in Central London. Financial data is collected from this department and sent manually to SSL headquarters. This division has not invested on any IS. Also, there is no any IS specialist. On the other hand, HOSD division is rendered as the most organized, for instance, it operates IBM AS/400 minicomputer which has different software for budgeting and costing purposes. In addition, there are several PCs in each regional office, which have been connected to AS/400. Moreover, hybrid manager is responsible for management of IS function. Besides, it has also a programmer. Finally, there are also some IS in SSL headquarters. For instance, this division only deals mostly with financial information. However, it is old fashioned as it consists of old-mainframe systems. There are three programmers among other IT staff such as a system analyst. In future, I recommend information systems such as ERP to be implemented at SSL headquarters, therefore; managing entire processes centrally. Hence, the best location for IT services is at SSL headquarters.

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