Introduction
This report is about the implications of MIS, and its influence on Top Shop business. It is written from the perspective of a management consultant who is to hand it over to a client company.
The report will cover a wide range of topics some of which include organizational hierarchy, input, process and output, Hardware and software for the information system, process of decision-making, use of the management information system in strategic planning and E-commerce among others.
The data for topic areas will be gathered from the secondary sources mainly books, journals, internet sources and as indicated in the references list.
Organizational hierarchy
Top Shop is a multinational organization with more than 20 outlets all over the world. It has its head office in London. Top shop specializes in women’s products such as clothes, bags and shoes. In terms of operation, it is partly owned by the Arcadia group (Barclay 2010). Top Shop management style is based on a hierarchical order, from the Managing Director Sir Phillip Green who is based in London.
The MD is the overall authority in the company and operates with mandate from the Board of Directors. His role is to manage the company. Management entails “planning, organizing, staffing, directing, coordinating, motivating and controlling different activities of the company” (KK Enterprises 1993, p.12).
In this regard, the managing director has been given the mandate of developing and expanding the long-term business strategies and plans of an organization. This also includes the process of making sure that the objectives of the Board are implemented.
Although, the Managing Director is based in London, his role is to control the management system of the organization throughout the world from the headquarters. Mooney and Reiley explain that the MD is responsible for coordinating heads of functions or departments in the company (Mooney and Reiley, 2001).
Additionally, the management consists of Senior Managers in different sections of the company who are charged with the responsibility of leading and supervising various sections or departments such as human resource management, Finance, ICT, Finance and Logistics. The department heads are charged with the responsibility of making short-term decisions.
The management level involves the middle managers who direct the products or services to the end user. Their main function is to implement the decisions and directives given by the senior managers or departmental heads and put them into practice.
The end users who carry out all the work follow the middle and line manager. Largely, the management executes its duties through supervision, communication, leadership and motivation (KK Enterprises, 1993).
Functions of Organization
The functions of an organization are dealing with how various structures and aims operate, how the pools of human resources are utilised and how different departments or functions operate together. This is true for Top Shop Company that has many functions operating together. Top Shop is a chain of retail shop that mainly manufactures and supplies women’s designer clothes, accessories and shoes (Top Shop, 2012).
It is a specialty in providing the latest designer fashions for women. Most of its collections are available through the catalogue. As an organization, Top Shop was invented in 1964 in the city called Sheffield, UK, by Peter Robinson. It has many franchisees and outlets all over the world.
Its production of various products has brought lots of success to this organization. It also operates through mergers by coming into cooperation with other likeminded departmental stores in the US, the UK, Australia, and many others (Top Shop, 2012).
Schonberg (1990) argues the successful organizations are those that have learnt to link their business functions with the demands of their customers.
This is something that Top Shop has successfully implemented. It also has large departmental stores in London, New York and Liverpool, which serve as the mother of all stores. These flagship stores are equipped with facilities like hair salons, tailoring services, nail bars, sandwich bars and sweet shops.
The first area of Top Shop’s business function is the research and development that continually invests designs and produces new products on regular basis in line with customer demands. The second major business function is selling the products and continuous production of financial services.
Top Shop continues to engage in vigorous marketing in a bid to market its brands. The company knows the demands of its customers and continually updates its products. More importantly, the sales department has learnt to work in close relationship with the marketing and production departments to meet its market targets.
The third most important part is the personnel department that deals with the recruitment, retention and development of the huge human resource department. The staffs are entail the management, sales representatives, production staffs and those at the public relations office. There is a well maintained staff record and a proper channel for dealing with staff grievances and relationships (Butel et al, 1997).
The third important business function is its marketing department that continually invents new marketing methods to meet the customer demands. This department works very closely with the Research and Department to produce new.
In terms of advertisement, this company has placed an important value in advertisements, which involve celebrity figures. The involvement of the high-class celebrity figures and supermodels like Kate Moss, Stella Vine, Christopher Kane and Celia Birthwell positively influence the company (Barclay, 2010).
According to Barclays, these flagship stores have totally changed the shape and operations of Top Shop. This company has a habit of mixing and matching the fashion demands of their clients by providing designer products (Barclays, 2010). Barclays asserts that the key factor in Top Shops success has been its concept of shopping as entertainment.
The company has been creating unique design labels since 2001 to attract the attentions of the catwalk shows. It also supports young talents and sponsors graduation exhibitions popular with young people. Its involvement with young people has been hugely popular as it portrays itself as creators of young fashion gurus (Barclays, 2012)
The fourth and perhaps the most important aspect of its business function is the IT department, which currently operates through the SALMON system.
SALMON connects processes and transmits information across its large computer networks. It is used to transmit both raw and processed information to other departments. However, the members of the staff have been trained to handle the data carefully with confidentiality.
Input, process and output
The company deals with huge volume of works, therefore, managing its information system is an uphill task. It has to deal with the huge volume of producing, supplying, and marketing its services and products. As such, the company needs to come up with well-coordinated and programmed information systems across its internal organization structures.
A massive company with volumes of work needs to develop proper information system that has the ability to maintain the objectives and strategic plans of the organization (Schonberg, 2009). The Salmon Information system seeks to coordinate functions of this company from the management, manufacturers, to suppliers. Products have been bar coded to keep track of the products in the shop and the stores.
However, since this information system is complicated, it requires proper coordination and management. In most cases, computer experts employed to deal with such roles include computer support personnel, system analysts, computers operators, data base manager, computer programmer, information systems manager, technicians, and information systems manager.
According to Schonberg, managers must come up with strategic plans to address and handle the huge technological complexities behind the information systems.
Hardware and software for the information system
In order for the Information System to operate effectively, it has to incorporate other components like hardware and software equipment. Largely, both the hardware and software serve huge purpose of communication as well as collecting, processing, storing and retrieving of information from one network to another.
An effective information system usually consists of three main scopes, which include the management, organization and technology. Concerning this case study, Top Shop is the organization, while the Technology is the information and computing system and the management ranges from the Managing Director to the supervisor on the shop floor.
The computer system, which consists of the processor and its internal components must be regularly serviced and managed. This is because they grow old. There comes a time when such system age and need to be upgraded, repaired, and serviced. The hardware disk includes video cards, in the like manner there is also the software part of the system makes the hardware to operate (Stair & Reynolds, 2010).
These systems need to be updated regularly. Some of the software include the anti-virus software to protect the company’s system from cyber criminals, fraudsters, and hackers.
The security software protects the computing systems against loss, theft and destruction of data and provides back up for information in the event of accidental loss of information, breakage, or destruction. These software are always being updated (Stair & Reynolds, 2010).
A company like Top Shop must continually update its software systems in order to remain secure. In addition, as an enterprise it has well developed servers that run at high speed with the website being regularly updated and maintained (Top shop, 2012).
Updating the information is something that is highly recommended by the experts. The manager may, from time to time, want to include a piece of information on the website or convey a message across the organization. The information system is fast and efficient to be used in all managerial decisions (Stair & Reynolds, 2010).
Why use the information system?
The emergence of the computers has revolutionized the world, human thinking, human relations, manufacturing and managerial operations. Most companies and organizations have today incorporated the MIS into their management program.
MIS has become an effective method of translating information from one source to another, which makes it easier for managers to make appropriate decisions in their planning, controlling, and directing operations on a daily basis (Takahara & Liu, 2006). For instance, Top Shop being a massive organization, the management has incorporated the Salmon information system as part of its management program.
Since we live in the world of information, knowledge has become an important factor in managing firms and many companies like Top Shop have incorporated Information systems to achieve the competitive edge. Those companies that have fully implemented this system have obtained the competitive advantaged above the others in the market.
Largely, the management needs to find out the relevant information that is appropriate for them and use it in their management programs. Moreover, almost all organizations need to incorporate the information system in their management structures. Furthermore, it has been discovered that information systems always assist the management make better informed decisions and judgments (Takahara & Liu, 2006).
Information system has become an important weapon for production and making strategic management decisions. It can also be used to empower staff enhancing the workers to make effective contributions to the development of the company’s overall goals (Stair & Reynolds, 2010). For instance, Top Shop includes the information system to market its products locally and internationally.
Process of decision-making
A Manager is someone who has been charged with the responsibility of making decisions that include short and long-term strategies. The decision making process often includes passing of information from one person to another, and managers use the information to make key decisions. Decision-making is a process that incorporates the production of choice or giving an opinion.
Making a decision is not an isolated activity but incorporates an interaction with the environment and other factors. It may incorporate both rational and irrational process, based on facts or fictions. In every decision making process, there must be data to be processed. According to Sanders & Ebrary (1999) in the corporate world, decision-making process incorporates identifying problems and assessing the outcomes.
Largely, decision-making process also incorporates an element of problem analysis to find out the causes and effects of the problem to be solved. The problem analysis depends or relies on facts to come up with the right decisions (Saunders & Ebery, 1999). Decision is then processed by analyzing and evaluating the information given.
According to Fisher & Ellis (1990), there are four main stages of decision-making process especially in a small group. These stages include the orientation phase that is about knowing each other in a group, and then followed by conflict characterized by misunderstandings and disputes between members in the group.
The third stage is what is referred to as emergence phase, which is associated with the group giving their opinions, while the final stage is known as reinforcement; this is when a member of the group makes a decision and then justifies their decisions.
Describe how the information system helps in decision-making
The information system has become a vital tool for decision-making by gathering information from one source to another and the distributing it to others. Using information system, the management gathers the information needs, processes, stores and transmits it to relevant people. Sharing of the information can be either vertical or horizontally, to perform specific tasks within the business environment (Daft, 2011).
The decision making process is about data management and maintenance of information that have been stored in either hard or soft disks to complex certain tasks. Management information system has become an effective tool for offering the information that can be used to make valuable decisions. Managers would initially use the data available to them to process information needed to make key decisions (Kallman & Reinharth, 1984).
Use of the management information system in strategic planning
In addition, the management information system can be used for strategic planning within the business scenario especially in the case of Top Shop. The information that has been stored in the system can be retrieved, processed, and distributed between systems. Through the MIS, the management is able to control the flow of information from one point to another.
Apart from strategic planning, the management information system becomes an important tool for ensuring that suitable information is protected and transmitted between suitable or relevant persons. The management would often use the information systems to process quality, reliable and well-planned information for strategic planning. Strategic planning is highly needed to compete in the highly competitive markets (Cassidy, 2006).
E-commerce and its effects on business, e.g. EFT, B2B, and B2C communication
As an introduction, e-commerce basically refers to electronic commerce, which normally entails conducting business transactions online. It is, thus, evident that there should be internet accessibility in order for e-commerce to take place.
There are various types of e-commerce which the Top Shop management can make use of so as to increase its market base, as well as, increase the service delivery to the present customers or clients and suppliers.
In the event that the Top Shop management realizes that a greater percentage of its suppliers along with customers are techno perceptive and more than ready to indulge in such transactions, then it will be appropriate to initiate them. E-commerce encompasses various business activities such as the transfer of funds electronically, online marketing, electronic data management just to mention a few.
With regard to the nature of business being undertaken by the Top Shop enterprises, it will be more appropriate for them to indulge in online marketing, as well as transfer of funds electronically.
Using B2B e-commerce, which is simply the business-to-business e-commerce, Top Shop will be able to make business deals with its suppliers without meeting them physically. Moreover, through e-marketing, the enterprise will be able to reach a wider market base without the need of establishing regional outlets.
With the advancement being made technologically, majority of individuals are more interested in shopping online and do not like the physical shopping because it consumes most of their time.
In that regard, Top Shop will definitely cut down its operational costs by indulging in e-commerce because the number of shop-attendants will be reduced significantly. However, the management will have to ensure that it has put in place vibrant secure measures to protect its clients from various frauds conducted through cybercrime (Laudon & Traver, 2010).
Benefits and drawbacks of the information system
There are various benefits, as well as setbacks, which are associated with implementing an information system within a business enterprise. Top Shop management will enjoy various benefits such as having easy access to customers’ information along with being able to establish the customers’ preference by analyzing the data, which is already available within the information system.
In that regard, it is evident that the information system will assist the management in formulating strategies aimed at increasing its competitive edge within the market segment. In addition, information systems assist the management in the allocation of duties to its staff. It is easier to detect any staff member who has not been assigned any duty by accessing the information system.
Besides, because there is information centralization through the information system, any queries brought up by clients are resolved in a timely manner without having to make consultations with the other staff members. On the other side, there are various setbacks associated with information system. The information systems entirely depend on the computer applications.
In the first place, in the event that a hacker attacks it, the stored information may be interfered with. Secondly, the computers can in some occasions breakdown completely leading to loss of vital data. Lastly, in order to establish a vibrant information system, it is vital to seek the services of an Information Technology specialists thereby leading to additional costs (Ward, 2006).
Conclusion
In the advent of information and computing technology, almost every major international company has embraced the Management Information System (MIS). The Top Shop is an international retail company that produces designer clothes, shoes and bags for women. This firm has come from humble beginning from small shop to an international high street chain with many outlets in over 20 countries world.
Its headquarters are situated in London under the leadership of the Managing Director, Phillip Green. The company has embraced MIS through the version of Salmon, which allows the managers make decisions, strategically plan, and implement changes.
Top Shop has been successful in the recent past because of its brand and vigorous marketing strategies and plans. These include E-commerce and incorporation of celebrity figures to appeal to the younger generations.
However, the information tends to have the biggest drawbacks being the external threats propagated by cyber criminals and hackers who may infiltrate into the system and steal people’s identity and information. It is in this regard that the information systems are continually being upgraded and repaired.
Reference List
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Cassidy, A. 2006, A practical guide to information systems strategic planning. Boca Raton: Auerbach Publications.
Daft, R. 2011, Understanding management. Mason: Cengage Learning.
Fisher, B. A., & Ellis, D. G. 1990, Small group decision making: Communication and the group process. New York: McGraw-Hill.
Kallman, E., & Reinharth, L. 1984, Information systems for planning and decision making. New York: Van Nostrand Reinhold.
KK Enterprises. 1993, Business & management. North Melbourne: KK Foundation.
Laudon, K., & Traver, C. 2010, E-commerce: Business, technology, society. Upper Saddle River, N.J: Prentice Hall.
Mooney, J., & Reiley, A. 2001, Onward industry!: the principles of organization and their significance to modern industry. Bristol: Thoemmes Press.
Sanders, R., & Ebrary, Inc. 1999, The executive decision making process: Identifying problems and assessing outcomes. Westport, Conn: Quorum.
Schonberg, R. 1990, Building a chain of customers: linking business functions to create the world-class company. New York: Free Press.
Stair, R., & Reynolds, G. 2010, Principles of information systems: a managerial approach. Australia: Course Technology Cengage Learning.
Takahara, Y., & Liu, Y. 2006, Foundations and applications of MIS a model theory approach. New York: Springer.
TOP SHOP. 2012, Top Shop Category Display, <https://www.topshop.com/>