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Microsoft Word - MITS4001 Assignment.docx MITS4001 BusinessInformationSystems Assignment July2018 Instruction MITS4001 Assignment Copyright©2015-2018VIT,AllRightsReserved. 2 Inthisassignment,ascenarioispresentedintheformofadescriptionofasecuritycompany. Basedonyourunderstandingonthescenario,youareaskedtowritea reportansweringthe questionsattheendofthisassignment.Yourreportshouldbeapproximately1800-2000words long and needs to be uploaded in Moodle by the due date as mentioned in Teaching and AssessmentPlanorasperLecturer’sinstruction. CaseStudy:SecurityServicesLimited(SSL) Thecasestudy‘SecurityServicesLimited’(SSL)providesthebasisforthequestionsthatfollow. 1. INTRODUCTION SSLhavegrownoverthelast30yearstobeoneofthemainprovidersofprivatesecurityservices intheUK.TurnoverforthefinancialyearendedApril1995wasup17%to£98.4millionfromthe previousyear.Profitabilityhasremainedsteadyataround9.2%ofturnoverforthreesuccessive financialyears.SSLprovidesawiderangeofservicestocompanies, individualsandthepublic sector.Thecompanyhasgrownowingtoacombinationoffactorsincludingorganicgrowthfrom theoriginalcorebusiness,start-upsinassociatedareasofsecurityandfinallytakeoverofand mergerwithcompaniesprovidingrelatedservices.Therangeofservicesofferedinclude: • Armoured transport for conveying substantial amounts of cash and cheques between businessesandbanks,cashfrombankstobusinessesforwages,andconveyanceofhigh- valueitemsbetweenvariousparties; • Provision of security services for businesses – these will include security guards (day and/ornight-timecover),analysisandinstallationofsecuritydevicesandregularsecurity sweepsofbusinesspremises; • Provisionofdomesticsecurityservices–thisincludestheanalysisofdomesticsecurity needsandtheinstallationofappropriatesecuritydevices.Themostrecentadditionto therangeofserviceshasbeenthetransferofprisonersbetweenpolicecells,thecourts MITS4001 Assignment Copyright©2015-2018VIT,AllRightsReserved. 3 andprison.Thisisacontracted-outservicesanctionedbytheHomeOfficeandcarried outtoHomeOfficestandards. 2. COMPANYORGANISATION BecauseofthewayinwhichSSLhasevolved,thepresentcompanystructuredoesnotnecessarily representthemosteffectiveorefficientwayofdoingbusiness. SSLhasitscorporateheadquartersinMiltonKeynes,Buckinghamshire.Italsohasfourdiscrete divisionseachofwhichrepresentsakeyareaofthebusiness.Thedivisionsaregeographically separatefromthecorporateheadquartersandareorganisedasfollows: • ThePrivateTransportDivision (PTD)–based inBedford, theyalsohaveoffices in the countytownofeverycountyinEnglandandWales. • TheBusinessSecurityDivision (BSD)–based in Leicester, they toohaveoffices in the countytownofeverycountyinEnglandandWales. • TheDomesticSecurityDivision(DSD)–basedinNewcastle-upon-Tyne,theyhavesimilar provisionofofficestotheabovetwodivisions. • TheHomeOfficeServicesDivision(HOSD)–thisisbasedinCentralLondon;theprecise organisationofthisdivisionwillbecoveredlater.Noneofthedivisionssharesitspremises withanyoftheotherdivisions.Thisisinpartduetothewayinwhichthebusinesshas evolved (including takeovers andmergers). However, it is also due the very separate operationofeachdivision. 2.1DivisionalResponsibilities TheautonomousnatureofthePTD,BSDandDSDdivisionsmeansthatineffectitcarriesoutall theactivitiesassociatedwithanindividualbusiness.Thewaysinwhicheachdivisioncarriesout itsbusinessactivitiesvariesfromdivisiontodivision. MITS4001 Assignment Copyright©2015-2018VIT,AllRightsReserved. 4 2.1.1Privatetransportdivision(PTD) Salessection–thesearechargedforintwoways:(1)contractsales–thesearenegotiatedfor variousperiodsandtypicallyrelatetoregulartransportofspecificitemsbetweentwoormore locations;(2)one-offsales–thesewillbeforsingletransportationtasksarrangedbycustomers onanad-hocbasis.Thesalesareaisheadedbyaseniorsalesmanagerbasedatthedivisional headquarters. Eachareaoffice alsohas a sales coordinator, togetherwithanumberof sales executives. Marketing section – this is performed by a small marketing department of two personsbasedat thedivisionalheadquarters.Annualmarketingspend is small– thisdivision carriesoutcore,well-establishedbusinessoperations,withlimitedscopeforgrowth.Transport section–thisisthekeyareaforthisdivision:thebusinessoperationsdependonschedulingthe appropriate vehicle for the appropriate route and with the right security team. In addition, activitiessuchasvehiclemaintenanceandstaffdutyrosteringhavetobemanaged.Information Systemssection–thisisasubpartoftheTransportsection;thedivisionoperatesanetworkof threePCsrunningthefollowingapplications: • Financialledgers(SageSovereign) • Routeplanning(Autoroute) • Dutyrostering(end-userdevelopedspreadsheet).Payrollprocessingiscontractedoutto MidwestBankBusinessServices. Jobcostingfornewandrenewedcontractsisperformedmanually,asisone-offbusiness.Thisis anareawhereanewinformationsystemmaybeuseful. TheISfunctioninthisdivisionismanagedbyanex-policemanwhogainedsomeITexperience while in the force but who is not an IT specialist. However, he has made judicious use of consultantsupportsincehisappointment. MITS4001 Assignment Copyright©2015-2018VIT,AllRightsReserved. 5 2.1.2Businesssecuritydivision(BSD) This part of the business has experienced steady growth over the past 5 years. Recent developmentshaveincludedaresponsetoincreasedlevelsofcomputertheftinsmalltomedium hi-techcompanies.Anobjectiveofthisdivisionistocontinuewiththisorganicgrowth,whileat thesametimeincreaseitsprofileinthehi-techmarketplace.Themanagementstructureiswell establishedandcomprisesthefollowing: • Sales–thesearemanagedbyateamofsalesconsultantsbasedateachoffice.Atoffice level,theyaremanagedbyaseniorsalesconsultant.Theseniorsalesconsultantsreport totheSalesDirectorinLeicester.SalesdataisrecordedonaPC-basedsalesledgerand monthlysalesfiguresaresenttoMiltonKeynesonfloppydisk.Thisdepartmentalsoruns aseparatestand-alonePC-basedsalestrackingandmarketingsystem.Asubsectionof this department is an installations section that is responsible for supplying and fitting securityequipmentasorderedbythecustomers. • Marketing–thereisnospecificsectiondealingwiththis:marketingisperceivedasbeing littlemorethanadvertisingandleafletdropsineachgeographicareaanditislefttothe salesforcetoaccomplishthis. • Financesection–thisdivisionhasaseparatefinancefunctionthatrunsarangeofstand- alone PC-based financial ledgers. Purchase and General Ledger information is communicatedtoheadofficeonhardcopy–thisisbecausetheledgersareincompatible withthesystemsusedatheadoffice.Payrollprocessingisalsocarriedoutin-houseusing thePegasuspayrollpackageonastand-alonePC. • Purchasing section– this isa subsetof the finance section thatdealswithequipment procurementfortheinstallationssection.Manualpurchasedataispassedtothefinance sectionforprocessing. TheISfunctionisnowmanagedbya24-year-oldgraduateinBusinessComputingwhohasjust replacedarecentlyretiredsenioraccountant. MITS4001 Assignment Copyright©2015-2018VIT,AllRightsReserved. 6 2.1.3Domesticsecuritydivision(DSD) Thisisthemostrecentlyestablisheddivision,havingbeencreatedbytheacquisitionfromthe receiversofanationwidechainofdomesticsecurityspecialistswithinthelast6months.They haveinheritedasoundinfrastructureoflocalofficesandareasonablecustomerbaseandhave beenconcentratingon turningaroundabusinessoperation that failedprincipallybecauseof inadequatefinancialcontrols. Thekeyissuesforthisdivisionaretoexpandthecustomerbaseby(1)increasingthenumberof customers;(2)marketingnewservices(e.g.securityaudits);and(3)emphasisingtheneedfor ongoingmaintenanceofexistingsecuritysystems. This division is devolved down to area office level,with each office responsible for the local managementofthesalesactivity,materialsprocurementandinstallation.Costsandrevenues are,therefore,managedatthelocallevelwithlittlecurrentcoordinationbythedivisionalhead office in Newcastle-upon-Tyne. Currently, the divisional head office is responsible only for collectingfinancialdatafromeachofthebranches(providedbythemmanuallyandinavariety ofdifferentformats),whichitthencollatesandthenpassestoSSLHeadquarters,againinmanual paperform.SSLrealisesthatithastodosomethingaboutthewholeset-upinordertoestablish astrategicandoperationaldirectionforthisdivision. ThereisnoISinvestmentandnospecialistISstaffinthisdivision. 2.1.4Homeofficeservicesdivision(HOSD) This divisionwas set up some 3 years ago as a result of a successful tender tomanage the transportationofprisonersbetweenpolicecells,thecourtsandtheprisonservice.Inadditionto thedivisionalheadquartersinCentralLondon,therearesixregionalofficesthroughoutEngland andWales.Fromtheseoffices,thetransportofprisonersanddeploymentofstaffiscoordinated. Inadditiontostaffinthetransportationvehicles,anumberofstaffsarestationedpermanently atpolicestationsineachcounty. Thedivisionalheadquartersisresponsiblefor: MITS4001 Assignment Copyright©2015-2018VIT,AllRightsReserved. 7 • thecoordinationoftheregionaloffices; • ensuringthatthecontractualarrangementsareadheredto; • accurately costing both the standard service provision plus any additional services offered; • processingtheaccountspayableandreceivable,andprovidingfinancialandmanagement accountinginformationtoSSL’sheadquarters(manualhardcopyonly).Thisdivisionisthe mostwellorganisedincomputingterms:thedivisionalheadquartersrunsanIBMAS/400 minicomputeronwhichhasasetoffinancialledgers,budgetingandcostingsoftwarethat hasbeenpurchasedfromKCBLtd(aspecialistinAS/400financialsystems);eachregional officehasaPCrunningroutingandrosteringsoftware;eachregionalPCislinkedtothe AS/400 over a WAN; the divisional headquarters also has a number of PCs running business productivity-type packages (e.g., spreadsheet), which are also linked to the AS/400(thusallowingthedownloadofdatatothePCsforfurtheranalysis).Thedivision’s computingismanagedbya‘hybrid’managerwithbothfinancialandITexpertise.There isalsooneanalyst/programmerandoneoperator/programmer. 3.SSLHEADQUARTERS Thecompanyhasyettorisetothechallengerepresentedbyanincreasinglydiverseyetrelated rangeofbusinessoperations.Similarly,anhistoricunder-investment in IShasmeantthatthe divisionalareascanonlysendinformationinmanualformonlywhereitisre-keyedintorelatively oldmainframe-basedfinancialsystems.ThedivisionalnatureofSSLmeansthattheactivitiesat headquartersareprincipallygeneralandfinancialmanagementorientated.TheITdepartmentis somewhatold-fashionedandcertainlylessuptodatethansomeofthedivisions.Inadditionto aDPmanager,therearesixdataentryclerkswhoareresponsibleforre-keyingfinancialdata fromthedivisions,threeprogrammers,asystemsanalystandtwocomputeroperator/systems MITS4001 Assignment Copyright©2015-2018VIT,AllRightsReserved. 8 programmers.TheDPmanagerisabouttoretire,andSSLmustconsiderhowitwishestomanage ISbothatheadquartersanddivisionallevel. Questions ConsideringtheabovedescriptionofSSL,writeareportbyansweringthefollowingquestions.It isrecommendedthatupto1hourshouldbespentoneachquestion. 1. Analyse how SSL may identify the value that it obtains from its current portfolio of informationsystemsandevaluatethetechniquesthatmaybeusedinassessingfutureIS investments. 2. Inmanypartsof thecompany, it is clear thatSSLdonothaveacoherent IS strategy. AnalysehowitmayconstructanISstrategythatissupportiveofitsbusinessstrategyand thebenefitsthatitwouldderivefromthis. 3. Analyse the strategic potential for greater investment in information systems and technologyatSSLbothfromadivisionalandcompany-wideperspective.Couldbusiness processre-engineeringbeausefultoolinmaximisingthepotentialofISandITwithinthe company?Explainandjustifyyouranswers. 4. DescribethecurrentlocationofISfunctionswithinSSL.Recommendthebestlocationfor ITservicesinthefuture.