Company and Market details
Background of the organisation Tawazon Interior Design:
Tawazon Interior Design is a medium size organisation specialised in developing new and unique interior design, Turnkey projects with authority approvals. The company already has successfully completed 280 projects within the UA and Lebanon. Tawazon has several groups of qualified and experience engineers for civil, construction, architecture designing, electrical and other purposes. The aim of this organisation is to be one of the most successful interior design companies in Middle East. The head quarter of this company is in Dubai, UAE. However, currently Tawazon Interior does not have any plan for further expansion across UAE, Saudi Arabia and Lebanon. ‘Consistent and Concrete’ while increasing the customer base, market share and overall interior upgrading is the vision of Tawazon Interior.
Market situation and competition:
The interior design is the rapidly expanding fit-out industry in UAE, especially through small to medium size organisations. Fabiz Solutions, Veloche Dubai, Interact Group, MDP Interiors and Seeb-Design are some of the most strong competitors of Tawazon in interior designing market of UAE. On the other hand, in last 10 years the GDP per capita of UAE is exceptionally increased and it is continuously increasing with higher rate (Rahman, 2014). At the same time, UAE has very low unemployment rate that allow the potential buyer to purchase high quality product by high price. However, because of being high paced growing economy the business industries are also increasing rapidly. As a result, the demand of interior designing in commercial and corporate purposes is also increasing.
Like any other industry, interior designing and turnkey project industry are becoming the most competitive place to deal with. The competitors of Tawazon have high influence on market, consumer base and supplier chains. Due to adequate space for promotional activities and huge number of interior designing material importers, effective competitiveness is not extremely high. However, the numerous start-up companies in interior design market are making the threat high for Tawazon Interior Design. In this situation, the only efficient way of enhancing the business competence is technological interventions and boosted performance level.
Business intelligence and Supply Chain Management (SCM):
From the very beginning of developing various electronics and communication media, the intervention of Information Technologies in business organisations is increasing globally. More than 78% of global SME (Small to Medium Enterprise) companies have either implemented business intelligence infrastructure or planned to do so in next two to five years. In UAE these SMEs are becoming the major customer base of Information Technology service providers and consultancies. The utilisation of Information Technologies in supply chain management has been already adopted by 62% national and international UAE based business organisations in past 5 to 10 years (Chae, Koh and Prybutok 2014). CRM or Customer Relationship Management, SRM or Supplier Relationship Management, ERP or Enterprise Resource Planning, ERP or Enterprise Resource Planning are some of the most renown tools in Logistic and Supply Chain Management system. At the same time, advance technologies such as RFID or Radio Frequency Identification, cloud computing, SOA or Service Oriented Architecture and others are being continuously adopted in many business organisations for their logistics operation and Supply Chain Management.
Taking advantages of SCM Tools
In the following section the SCM or Supply chain management tools will be discussed while considering their advantages in business operations.
CRM (Customer Relationship Management)
Customer Relationship Management refers a group of integrated software application that allow the business process to management the customer relationship though effective communication, information processing, probability calculating and many more. CRM is one of the most advanced software integration in information system and information interchange system. One of the significant advantages of this system is that it allows the company to collect the detailed information about the customer contact details, trends, expectations, attractions, potential purchasing ability and other. Through this, the company can develop their most cost effective inbound logistic system and supply chain management (I??K, Jones and Sidorova 2013).
In any business operation, the customer preference is the most essential thing that indicates the most profitable product cycle, price range, material value and market opportunity. The choice of the customer and their price preference also influence the inbound material selection and quality-price balance strategy. Apart from that, CRM enables a integrated information collection and utilisation facility. During the purchasing operation the consumer details, choice, premium paid, most purchased products are stored in a information system (Wixom et al. 2014). Through this, an interior design company can alter their supply chain by prioritising the most purchased product material and most potential product materials. It allows the company to incorporate the customers into their supply chain management system as well.
SRM (Supplier Relationship Management)
Similar to the CRM, Supplier Relationship Management or SRM emphasises a group of integrated software applications that allow the business process to management the Supplier selection, alteration and communication though effective information processing, handling and probability calculating. SRM is advance software integration in information interchange platform, which allows the company to collect the detailed information about the supplier contact details, availability, costing and other from the market research. Through this, the company can develop their most cost effective inbound logistic system by selecting appropriate supplier and negotiation strategy in supply chain management.
In any business industry, the soppier availability is the most essential thing that indicates the potential product cycle, quality maintenance and price range of a particular product. The availability of suppliers and their product verities and cost highly influence the inbound material selection and quality-price balance strategy (Deng and Chi 2012). Along with this, SRM allows an integrated information collection and utilisation facility that collect the real time market data and information details about suppliers, price range, max-min-average material quality, material cost and others. By utilising these operations, an interior design company can determine and select the most profitable supply chain and material costing.
ERP (Enterprise Resource Planning)
ERP or Enterprise Resource Planning is a Business Process management Software that allows an organisation to utilise interconnected applications to develop and maintain various business operation by automated various computing functions in back office. From developing most compatible product life cycle, supplier selection, market strategies to internal operations such as resource allocation, time management, Human Resource and other, ERP provides the platform to determine most effective solution of any problem automatically (Wu, Chen and Olson, 2014). ERP a specialised software that integrates the most essential operations of any business with micro level details ad functionalities.
ERP plays the vital role in supply chain management where the company need to interact with various suppliers and conduct a cost benefit analysis in vendor selection procedure. In supply chain management, the most essential operational components are Material flow, information flow and financial flow. By utilising ERP a interior designing company can improve their cost efficiency, return on investment product quality, decision making and even order tracking. In interior design business operation ERP can be also utilised in complex cost benefit determination of various designing and for eliminating errors from a particular process (Laudon and Laudon 2016). Many ERP vendors are available in the market that can successfully provide and install an efficient ERP system in any business infrastructure.
WMS (Warehouse Management System)
Warehouse Management System or WMS is a group of information processing systems that allows estimating potential requirement, inventory optimisation, gap in logistics gap and many other factors. Warehouse is the most effective and significant intermediary buffer system that allows the logistics operation to store the inbound material and outbound materials systematically before utilising them in the next phase. From product manufacturing life cycle to waste management operation the Warehouse Management System is the essential tool that is used in any organisational operation (Chan 2013). The WMS of a material chain determines the source, receipt, store and movement of goods that collectively called inventory optimisation system.
For Interior designing company, the Warehouse Management System can determine the most efficient material distribution chain within product manufacturing operation while taking care of remaining resource material and required resource materials as well. It can also act as the buffer system by situated within the supplier-production chain as well as production-distribution chain. WMS also determines that, what will be the most efficient maintenance procedure for storage products or resource materials (Bajdor and Grabara 2014). In supply chain management, WMS can inform the governing information system of the company about the required resource material, potential vacant spaces in warehouse, optimum inbound volume and many more.
Adopting progressively updated technologies
In every moment, the interventions of software and integrated hardware are constantly increasing where, technologies like RFID, SOA, Cloud computing and IOT is enhancing their utilisation in every industry.
RFID (Radio Frequency Identification)
Radio frequency Identification is one of the highly used technology in this era of digitalisation that allows solid governing system on the logistical operation and supply chain management with more accuracy, flexibility and speed. Through utilising RFID technology, electromagnetic fields are used to identify the particular object along with detailed information including present condition and object quality. In RFID system, an electronic tag is attached with the object that is able to contain more than 2KB data within it. At the same time as a part of RFID integration, the AIDC or Automatic Identification and Data Capture device emit a particular radiofrequency that is identified and responded by the attached electronic tags. The emitted information is further captured by the AIDC receptor for identification procedure (Demir and Krajewski 2013).
The RFID system can be used in supply chain management and logistic operation to determine quality and the condition of delivered product from the supplier while conducting the verification process from a long distance. A interior design company needs wooden planks, metal plates and other material which are very fragile for long distance logistics system. The RFID system can indicate the current position of the inbound supply materials and recommend the most appropriate way to deliver the item in the nearest warehouse for internal resource handling operation (Pantano 2014). The distance of detection and range of stored information depends on the installed technology in the tag.
SOA (Service Oriented Architecture)
SOA or Service Oriented Architecture is a collection systems interchangeable platform that allows the physical and informational integrity within various organisational operations that includes data storing, analysis, market reporting, proportioning, communication, supply change management, product life cycle management, Human Resource Management and even accounts. The SOA system comprises the application components though maintaining an efficient communication protocol in the network system (Lee and Yu 2012). Though this system, an organisation can connects its various business intelligence software applications and electronics equipments in a single information integrated system that itself has a accurate data transaction, processing and management capability. After the intervention of Web 2.0, the usability of SOA has been increased significantly along with Micro-service operation and event driven software architecture design.
In Supply chain Management system SOA can connects the CRM or Customer Relationship Management, SRM or Supplier Relationship Management, ERP or Enterprise Resource Planning, ERP or Enterprise Resource Planning with the core Business Process Management system or BPM. It allow the organisation to manage a more accurate governing and controlled information system to compute and keep the system update about required resource material, potential vacant spaces in warehouse, optimum inbound volume, GPS tracking, traffic management, transport management and many more. From product manufacturing life cycle to waste management operation SOA can be utilised as a most effective Supply chain Management tools in any organisation (Bobak et al., 2013).
Cloud Computing
Cloud computing is an facility provided by the advanced information technology, which allows virtual platform within more than one system in order to operate any particular information simultaneously from anywhere. The cloud emphasizes the group of online servers or virtual hosts that creates the virtual platform for editing and altering operation in a real time information interchange environment (Rahman, 2014). One of the most advantage of utilising the cloud computing in the logistics and supply chain management is it will enable a large number of operational interfaces to work on a particular file and dataset in order to develop more accurate and effective solution.
An interior designing business organisation can choose various third party vendor and their services to install an efficient cloud computing service within the operational infrastructure. In-house or private cloud system, Infrastructure as a service (IaaS), platform as a service (PaaS) and Software as a service (SaaS) are the four major cloud computing facility that can be used in logistics operation and supply chain management (Joshi, 2009). However, for optimum integration a interior designing company can install Infrastructure as a service for cloud, which will aloe better governance capacity to the administrator company.
TMS (Transportation management system):
Transportation is the most essential factor of supply chain management system that allow a business organisation to transfer any resource materials or output products within various segments of the industry. In supply chain management system, transportation is crucial for delivering the resource materials from suppliers to primary warehouse, from primary warehouse to pre-processing vendor. However, the complex rout plan and dense traffic often cause unnecessary delay in transportation logistics operation. The Transportation Management System is able to calculate the most effective alternative rout plan to avoid any traffic jam while delivering the goods safely in time (Laudon & Traver, 2013).. TMS also allow the supply chain management to analyse the position of the transportation logistics vehicle through more accurate GPS system.
TMS is very effective technology for any supply chain management operation that operates both internal and external long distance supply chain management or SCM operation. For a interior designing company wooden plank, metal plates, rods and other material are delivered from the supplier that is situated far away from the production department or from primary warehouse (Schwalbe, 2015). In this situation the TMS can deliver the resource materials from suppliers to nearest warehouse and from primary warehouse to production system in very short period without making any changes to the product quality or condition.
Efficiency of Database and storage technologies
DBMS
DBMS or Database Management System is data storage system, which is widely used to store and maintain the records within the digital information technologies in a more efficient and accurate. Some of the widely utilised DBMS applications are SQL, Excel, Access and others. The efficiency of Data Base Management System depends on the rate of successful data insertion, processing, editing and deletion without experiencing any operation error such as redundancy, insertion anomaly, duplicity, inconsistency and others (Veit et al., 2014). Through effective record handling and normalisation of various sets of relations, the supply chain management system can store and manage market information, internal data, research details, supplier details and customer details as well as computation results in very minimum amount of time.
Cloud server based operation can be utilised in Advanced DBMS system through incorporating the concept of Big data. The term Big data refers the large volume of both structured and automatically managed data that utilised and operated in various business operation on regular basis. To store this amount of data Big Data technology requires negligible amount of space while utilising the server based cloud storage system. In supply chain management system, the Big Data incorporated DBMS system can help to operate huge volume of data with fine accuracy while taking very short time (Zott & Amit, 2015).
Transitional planning to E-business
Diagnosis and Transitional plan
From the above discussion about business intelligence, Information technologies and E-business strategy, it is clear that migrating to E Business has become most essential objective for an interior design company named Tawazon Interior Design. For any business organisation, transition to E-business will be beneficial to increase business accuracy, efficiency while reducing the amount of time required to perform certain tasks. Specifically for supply chain management and logistic operation E-business strategies can lead the business to its optimum capacity (Wagner, Beimborn & Weitzel, 2014). However, the E-Business implementation strategy requires some considerations regarding implementation phases and procedures. In the following section these phases and tactics will be discussed.
In the initial phase, the business organisation should determine which procedures and facilities require urgent intervention of business intelligence. It can be done by prioritising the operational factors by analysing the measurement parameters such as scope, availability, market demand and others. It should also consider the necessary adaptation requirement for the internal components of the organisation namely employees, management, leadership and others.
In the next phase, focusing on the External incorporation of business intelligence will be the most effective choice. In other words, developing an online website or client traffic tracking system in official website to discover customer needs will be the better transitional decision rather than introducing cloud based Business Process Management within the business operations. Developing website or external digital connectivity system can also very useful to communicate with existing and potential suppliers. Utilising business intelligence in promotional activities can be also very effective (Rai & Tang, 2013). Online website, social media pages and other digital media can be the most profitable platform for advertisement. One commonly used method of bringing customers to your website is pay-per-click advertising, where the company need to pay the vendor each time someone clicks on your ad.
At the next phase of transition a company can install the information technologies in internal business operations namely supply chain management, manufacturing life cycle, inventory management, human resource management, finance, security management and others (Prajogo & Olhager, 2012). An organisation can either choose to do this in increments, phasing through step by step systematic incorporation or the company can make the switch all operation at once by cutting off all the old procedures and depending completely on the E-business strategies and business intelligence for ultimate survival.
In process of transition from traditional business procedure to advanced E-business procedures maintenance of incorporated technologies is most essential. From the beginning of the incorporation to finalisation maintenance and repairing is a part of everyday utilisation of information technology. For interior designing company alteration from old business operation model to new E-business model required in depth monitoring, controlling and maintenance, especially in supply chain management system where large amount of information are processed in high urgency (Venkatesh, Thong & Xu, 2012).
Change management and implementation
In order to implement the required changes in the transition process of the organisational operation Tawazon Interior Design requires executing an effective change management assessment and implementation procedure that consists of two essential components namely the force field analysis and implementation plan. The change management plan will allow the interior designing compose to take required decisions to execute effective strategies and tactics considering the internal and external environment.
Force field analysis allows Tawazon Interior Design Company to identify the drivers for change and the resistance force against the transition procedure. Apart from the resistance identification process, the company has to measure the impact of these drivers as well as the resistance force to maintain an equilibrium condition. In this equilibrium condition Tawazon Interior Design can implement the new changes within the organisational process as a core transitional planning towards E-business operation (Anandarajan, Anandarajan & Srinivasan, 2012).
In implementing the change management plan the organisation needs simple but effective step by step implementation procedure. For this Tawazon Interior Design can follow the Korter’s 8 step change management model that includes following phases:
Create sense of urgency:
Developing the sense of helps the change management system to spark the initial motivation to get things moving. Identification of potential threats and presenting the cause behind new changes are the most essential task of this phase. Apart from that, examining the opportunities is another essential task.
Building guidance team:
Along with convince people for the changes developing and strong leadership is also necessary. This phase needs strong leadership and visible support from influencing people within the organisation. Determining the most effective leadership strategy is also essential. For supply change management of a interior designing company situational leadership is the most effective strategy. In order to lead change, the organisation need to bring together a coalition from a variety of sources, including expertise, aims, strategies and political importance (Venkatesh, Thong & Xu, 2012).
Develop vision:
A clear vision for implementing the new changes can guide every part of the transactional procedure while making the purpose and goals of the change understandable to all the involved personnel. Employees and the operational team can proceed with more efficient plan when they have precise goals and vision to achieve. The key of developing the effective vision is Linking the core vision of the organisation to the various change management procedures.
Communication for acceptance:
Communicating with the micro and macro level contributors is highly essential in the communication process. It helps to distribute the knowledge of change management process and required implementation infrastructure is necessary (Mithas et al., 2012). It will improve the information integrity within the process of the organisation that is involved in the transition procedure. Practicing the “vision speech” often is the key of the success.
Empower actions:
Putting in place the structure for change and consistently checking for barriers are the two essential empowering action in the change management implementation. At the same time, eliminating all obstacles also empowers the people the organisation need to execute the vision. Identifying and recruiting change leader, recognising and rewarding people for their performance, identifying and convincing people who are resisting the change are the main actions of empowerment (Eason, 2014).
Creating short time objectives:
Creating short objectives and success factors can motivates the involved personnel. Providing the workforce the taste of victory is the core of this phase of implementation. For this, the organisation has to develop several objectives within a short time frame depending on the type of change. Achieving this objectives can reflect the sensation of quick win to motivate the employees of the organisation.
Built on changes:
Executing the change management process is the pillar of the transaction. Appropriate training and development to improve the knowledge and experience of employees about IT, Incorporating and installing new changes assessing the needs of improvement are some of the major parts of executing the change management procedure (Chen, Chiang & Storey, 2012). Keeping the ideas fresh by bringing in new change agents and leaders is essential for this phase of change management and implementation.
Make sustainability stability:
Sustainability is the roof of the change management process that defines stability of the implemented change management procedure. In this final stage, to make any change stick, the evaluation and maintenance should become part of the core of your organization. The organisational culture can determine what should be done. Therefore, the ethical values behind the vision must show in day-to-day work process and approach (Bardhan, Krishnan & Lin, 2013).
Conclusion and recommendation:
Conclusion
From the above discussion it can be said that, Digital technology as well as electronics and communication devices are also the most valuable key to make significant improvement in any industry. Day by day the intervention of software and integrated hardware are constantly increasing where, business intelligence is one of the most renowned names in every industry. It can be said that from logistics operation, supply chain management, transportation, data process, information handling, consumer relation, internal communication to research and development, life cycle design, automation and market analysis the combination of various hardware equipments and software applications have opened a new horizon for any kind of and any part of business operation.
After analysing the market the report can conclude that Like any other industry, interior designing and turnkey project industry are becoming the most competitive place to deal with. The competitors of Tawazon have high influence on market, consumer base and supplier chains. Due to adequate space for promotional activities and huge number of interior designing material importers, effective competitiveness is not extremely high. At the same time, advance technologies such as RFID or Radio Frequency Identification, cloud computing, SOA or Service Oriented Architecture and others are being continuously adopted in many business organisations for their logistics operation and Supply Chain Management.
As per the analysis it can be said that In any business operation, the customer preference is the most essential thing that indicates the most profitable product cycle, price range, material value and market opportunity. CRM or Customer relationship management allows the company to incorporate the customers into their supply chain management system. On the other hand, SRM is a group of integrated software applications that allow the business process to management the Supplier selection, alteration and communication though effective information processing, handling and probability calculating.
ERP or Enterprise Resource Planning is a Business Process management Software that allows an organisation to utilise interconnected applications to develop and maintain various business operation by automated various computing functions in back office. Apart from that, in supply chain management, WMS can inform the governing information system of the company about the required resource material, potential vacant spaces in warehouse, optimum inbound volume and many more. The RFID system can be used in supply chain management and logistic operation to determine quality and the condition of delivered product from the supplier while conducting the verification process from a long distance. TMS is very effective technology for any supply chain management operation that operates both internal and external long distance SCM or logistics operation.
The following recommendations have been made for the Tawazon Interior Design company in order to develop the transition procedure towards E-business infrastructure.
By utilising the CRM, Tawazon Interior Design company should during the purchasing operation the consumer details, choice, premium paid, most purchased products are stored in a information system to alter their supply chain by prioritising the most purchased product material and most potential product materials.
In this era of digitalisation, technology is one of the most essential parts to be considered before starting up any business company. Digital technology as well as electronics and communication devices are also the most valuable key to make significant improvement in any industry (Ahmad 2012). Day by day the intervention of software and integrated hardware are constantly increasing where, business intelligence is one of the most renowned names in every industry. From logistics operation, supply chain management, transportation, data process, information handling, consumer relation, internal communication to research and development, life cycle design, automation and market analysis the combination of various hardware equipments and software applications have opened a new horizon for any kind of and any part of business operation (Baden-Fuller and Haefliger 2013).
The purpose of this report is to discuss the essentiality and implementation procedure of these technologies while determining the transitional process to move into E-business from traditional business management infrastructure. The report will be focus on a United Arab Emirates based organisation named Tawazon Interior Design and its possible transaction towards business E-business based infrastructure. However, in this report the main point of concentration will be the tools and technological interventions for Supply Chain Management and Logistics operations. The aim of this report is to develop the appropriate transaction plan for Tawazon Interior Design company to develop a simple and effective E-business infrastructure.
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