[TFR1] 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project 3

Systems

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction. 1

Executive Summary. 1

System Analysis. 2

Goal 3

Measurable Result 3

Major Views. 3

Service View.. 3

Obstacles and Complexity. 4

Computer Information Systems. 5

Recent Trends of Computer Information Systems. 5

Information Systems Model 6

Evaluations. 6

[TFR2] 

Introduction

 

Systems are integral foundations upon which successful businesses must be built upon.  A system is defined in a more detailed way as “a goal-driven set of elements and their purposely-oriented, structured relations that produce measurable results outside the system, despite obstacles.” (Rienzo, 107).[TFR3]   This definition is what a well-known goal-driven system called the input-manufacturing-output model is based on.  The following report shows an example of one.

 

The business chosen for this report is an exclusive boat club.  This type of business is a service company.  A company like this would own a fleet of boats, maintain them, clean them, store them, and any other conceptual boat owning chore.  Then, the firm would sell memberships for exclusive usage rights on those boats.  The advantages of becoming a member are that the customers don’t have to worry about any additional costs after owning a boat such as maintenance and storage and can enjoy their boating experience more. In addition, membership costs are much lower than buying a private boat and instead of just being able to use one boat; a member has a choice over several different boats. The main competition of said boat club business is in people choosing to buy their own boat.

 

Executive Summary

 

The input-processing-output model of a system can be applied not only to a manufacturing firm, but to a service firm as well.  A boat club could apply this same model to their business to gain success. It is important for any company to have a goal-driven system tailored to their needs in order for them to be profitable.

 

The following report outlines how a service firm establishes goals and then implements a system to meet those goals. Measurable results can be show and calculated from using a system like this. A firm must decide on which views fit them the most and what views to concentrate on the most for them to be successful[TFR4] .

 

Obstacles are something that every firm must be aware of and try to deal with. The report also reflects on those and why they are an issue in a service firm like this one.

 

Complexity and relationships are very important when dealing with this input-processing-output model. The report will demonstrate those and break them down into components.

 

On the other end of this model are information systems. Information systems are just, if not more, important in a service industry. Technology and computer systems are critical in the success of a firm in today’s economy. These systems are constantly evolving, expanding, and becoming more advanced. The report will show how crucial these systems can be in making or breaking a firm.  Staying ahead in technology is a must in today’s economy.

 

System Analysis

 

[TFR5] 

 

Goal

 

The main goal of this system is to sell memberships for the boat club[TFR6] . These memberships will, in turn, make the firm a profit, which is invariably the real main goal of this system.  No other higher goal can be pinpointed other than this. Some other secondary goals that will help lead to this main goal are quality customer service and broad marketing development.

 

Measurable Result

 

The measurable result of this business system is the amount of revenue earned off of[TFR7]  sales.  This type of result is a direct indication of how well the system is working for the firm, the boat club.  It will be clear whether or not the system is working in favor or if things need to be tweaked.

 

Major Views

 

The three most important and applicable views to the boat club would be Marketing, Service, and Human Resources.

 

Marketing is a must in this type of business.  Advertising can make or break a service company like this one.  Customers will have no way of knowing about it if it’s not promoted.  This type of business is a new idea and it must be shown to be a lucrative endeavor for customers.  Marketing must be pushed and invested in for a sufficient reach to the target market.

 

Service is the most important view.  Committed service in this type of business will make a break a firm.  Customers want to be treated important and congenial for their money. This type of club is a high-end establishment and people who pay good money want to be treated well.

 

Human Resources build on service. Without the right people working at the firm, great service cannot be achieved.  Dedicated employees who understand the business in which they are working for are the only acceptable candidates for success[TFR8] .

 

Service View

 

Service is the core of our business because people come to our business so they do not have to deal with all of the hassle of repair and product maintenance. An example of how service works in our business is shown below.

 

 

 

 

 

 

 

People Buy Membership               Boat is Rented                   We then clean and fix                       with us                                                                             any repairs that need to be done

      ------>                             ------->                 

                                                                                        

                                                                                                                 

Now people can go about their business without having to make the things they love a hassle[TFR9] .

 

The way the service view works in our company is that people come to us to rent our boats so they won’t have to deal with any hassles like the maintenance of the boat. Once they purchase a membership to us they have the ability to rent a boat whenever they would like, and when they are finished we clean and make any necessary repairs, and it is then available again to all of our members.

 

 

Obstacles and Complexity

 

Any service industry is going to run into some common obstacles when trying to provide the best service to your customers.  One of the most difficult obstacles for a Boat renting service is convincing customers that our service of renting boats is more sufficient[TFR10]  and less costly than purchasing their own.  Our boat service will not be able to profit if we do not have any customers to rent them.  Another obstacle would be making sure the company has a certain image, which portrays fast and reliable service.  This means making sure that all the boats are running well and are not breaking down or getting out of shape.  The better the boats look and the faster we get them the service the more customers we can retrieve.  According to the relationship model the amount of the elements is 3.  The elements consist of the people who purchase the membership, the actual boat that is rented and the repairs and cleaning that may need to be done.  The formulas to find the relationships is as follows:

                       

                        Elements are resembled by “e” which equals 3.

                                   

 Number of Relationships equals:

 

                                    R = [(e-1)e] / 2 =  [(3-1)3] /2 = 3

Number of States equals:

                                    S=2e  = 23 = 8

 

The complexity of this business is rather low but it does increase along with the amounts of elements, as does any business. 

 

 

Computer Information Systems

 

The computer information system for our boating service that we chose is the Accounting Information System (AIS). It supports our boating business in many ways. This aspect of information systems takes into account all revenues, expenditures, production and human resources and payroll. Specifically, we will keep track of how many boats we have to be rented and where they are located. This is part of our assets including the money that they bring in. Computer records can be kept for efficiency and accountability reasons. Expenses, such as maintenance and renovations for the boats will be recorded and accounted for as well. Furthermore, all employees of the company and suppliers will need to be paid and the AIS will play a roll in keeping track of where that money is going.

 

The Accounting Information System will bring together adding assets and subtracting liabilities to reach a successive owners’ equity. The system improves the effectiveness and efficiency of doing our companies accounting. We will need someone to enter in the journal entries and adjusting entries, but other than that the computer is always accurate to its program and extremely fast. As a result, the Accounting Information System will benefit our company greatly by providing us with the statements we need accurately, instantly, and easily accessible.

 

Recent Trends of Computer Information Systems

After researching the history and typical applications in business a few trends of how Accounting Information Systems have been found to be changing. For instance, five years ago, all accounting systems were character-based, possibly server-based and not amenable to user-driven change. (Banerjee) Whereas today they are graphical, operate in a distributed processing environment and offer much flexibility. Also, boundaries are being taken away from being constrained to just finance functions and are moving more to becoming “the hub of organization-wide information systems.” (Banerjee)

New trends such as market concentration, globalization, new technology, and customer solutions are having major companies evaluate their systems. Today, opportunities such as groupware, workflow and information processing are readily available for companies to invest in to help the efficiency of their business.

Most of the accounting systems vendors are caught up with Windows and client/server. From here it is learned that the most beneficial and frequently used is SAP. “It has presented a product for re-engineering.” This tremendous system has taken over for most large companies who use SAP for more than just an Accounting Information System[TFR11] .

Information Systems Model

 

Below is a model of an information system.  This particular model is unique to our business.  This exact model is an accounting information system.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


[TFR12] 

As you can see the inputs allow for the information to be processed, which gives the output of the financial documents necessary for accounting.

 

References

Banerjee, Jyoti. Four Trends Dominate the Accounting Software Market http://www.shu.ac.uk/schools/fsl/fisjnl/vol1996/pvw1996/pv96001.htm

Targowski, Andrew and Rienzo, Thomas. Enterprise Information Infrastructure, 4th Ed.                               Paradox Associates, Inc. 2004.

Evaluations

Sherri’s evaluation:

For my part of the project I discussed how important service is to a business. However doing this part of the project was not really something new to me because I have worked in a family business my whole life and I already knew the importance of service to a business. Although it did show me different aspects of how your service can change your business. So I think that it was a good decision for me to do this part of the assignment because I have had some background on it.

 

April’s evaluation:

This project has helped me learn a lot about the obstacles you might run into as an owner of a service company.  There is a lot more thought then one might think when trying to run a business and earning your own profit when your own money is at stake.  One day when I am working in the business field I will take the knowledge I have learned from this project into consideration.  The complexity of a business is not always as easy as everyone may think and that’s an important lesson for everyone to learn.

 

Jack’s evaluation:

I liked this project because it made us have to break information down a bit. It gave us room to move with creativity and it helped to teach us what a system is. There was also the aspect of helping us to learn that businesses have much more going into them than I personally previously though. Good assignment.

 

Jessica’s evaluation:

I felt this project was a great team building exercise. The parts were interrelated with each other which encouraged us to work together to get the report finished. I would say that I learned much about systems in regard to their relation with business firms. I enjoyed also how we were able to choose a business of our own and use some imagination.

 

Justin’s evaluation:

This project reminded me how to use Fireworks.  This program is very useful in making professional looking documents.  It is very good to get to know this program in depth to make sure I will be able to use it in my own career.  By getting to use this program this project was very helpful in making me remember how incredible of a resource Fireworks is.

 

 


 [TFR1]Presentation is excellent!

Outstanding I-P-O model and evidence of good thought behind it.

Service components could be subdivided into more components associated with maintenance, permits, equipment, etc.

Information system section was excellent.  The only area that can use a little more thought is the service component model.

 

104/100

 [TFR2]A Word generated TOC, also impressive.

 [TFR3]Check referencing techniques at the WMU library site.

 [TFR4]This type of report is not easy to put into an executive summary

 [TFR5]Outstanding – very attractive and evidence of thinking here.  This will also place well in a web page if you decide to use it for the portfolio assignment.

 [TFR6]This is certainly a worthy goal but most business goals are more specific – how many meneberships generating how much revenue?

 [TFR7]Use “from” here

 [TFR8]NO argument here.

 [TFR9]Could expand on the rental and maintenance components.  I would think capital budgeting and debt service would be important

 [TFR10]Efficient?

 [TFR11]OK, this works.

 [TFR12]Graphic arts programs can do many things.  This works fine.