Special Salmon Case Study

I. Introduction

Special Salmon is one of the largest providers of fish restaurant chains in North
America. The information systems division is located in Miami at the company
headquarters. The headquarters computer center consists of a large IBM mainframe
computer with more storage and processing power than the current needs for the
operation. There are 115 managers and staffs at the headquarters with microcomputers
on each desk.

The company has a fleet of more than 200 fishing boats that constantly fishing in
the Atlantic and Pacific Ocean coasts of the United States and Canada. As the
competition is highly strong, it is important for the company to navigate exactly where
the fishes are located at any given time, to know data such as; which type of fish the
restaurants chains are in demand and the quantity needed of each type of each fish
restaurants chains are willing to buy. There are fifty-two (52) major ports on the Atlantic
seaboard and twenty-nine (29) on the Pacific seaboard which in total of eighty-one (81)
ports wherein the boats are used to unload their fish. The supply-and-demand levels are
fluctuating on a daily basis such as for fish caught and fish being sold as the products
are considered as perishable goods therefore it must be sold quickly.

Managers at the headquarters communicate with branch managers to gather the

specific information through frequent phone calls every day.

1.1 Background of the Study

In the early ages, computers were only used for making calculations, storing
data, and automating business processes in any type of industry. However, it became
obvious that most of the functions of telecommunications could be integrated into the

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computer. Information and communication are two of the most important tool to survival
and success of any business organization.

In Special Salmon, the headquarters managers and branch office managers

found it difficult to communicate because their computer systems are not directly linked
to each other. They discuss if the fish should be sold immediately or store it until the
market price rises. Also, they need to communicate whether to sell to one restaurant or
to another restaurant chain. Both of them decide only through phone call which leads to
incomplete data.

The president of Special Salmon realized that data communications will be the
key to their future growth as he attended an executive seminar regarding information
technology. He gets an idea in the seminar regarding networking. All of the computers
can be linked in a network, thus, their branches would be linked to headquarters and to
other branch offices of the company. Instead of phone calls that communicated an
ample amount of data, the computer-to-computer communication could transfer enough
and accurate data to optimize selling of the branches inventory among restaurant
chains. The president visited the Chief Information Officer (CIO) to share knowledge
about the seminar he attended and advices to have the same action about networking
of their information systems.

Since, the company’s microcomputers are completely stable in terms with the
update and capable of being networked, and there is one or two local area networks at
headquarters used to share laser printers by the employees. The CIO believe that there
is an opportunity to install networking to linked their computer systems since several
restaurant chains recommend to establish data communication links between them.

The researchers will utilize related literatures and existing research studies that
could help in the analysis, solving and improvement of the information systems of
Special Salmon headquarters and branch offices.

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 Special Salmon Case Study

1.2 Problem Statement

The headquarters and branch offices of Special Salmon are having poor
communications due to absence of computer networks in their information systems.

1.3 Objectives of the Study

1.3.1 General Objective

This study aims to determine the computer network necessary to overcome the
problem of the company and to analyze possible solutions to comprise well-coordinated
system to have a better interaction internally and externally.

1.3.2 Specific Objectives

In accordance to the general objective, this study specifically aims to:

 To analyze the characteristics, features and elements of management

information systems of Special Salmon
 To determine the type of network that will be used by the company
 To identify the benefits of the networking system on the business
operations
 To determine costs for installing data networks
 To conduct training and assessment about data networks among the
employees of the company
 To identify other possible solution that will help in improving data
communications

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II. Review of Related Literature

2.1 Extranet based Business Models

According to (Andrea Mills, 2015), the extranet application is to combine the best
of both worlds. It can extend and reach beyond the customers with different locations
with using efficiently the functions of the internet. Extranet enhances the company’s way
of communications. Exciting part of extranet is that the ordering systems are effectively
practiced. Tie suppliers between customers, benefiting both parties.

2.2 IT Networks

According to (Tanenbaum, 2017), the Networks connect computers to one

another, through a combination of hardware and software, sharing information and
peripherals in an economical and efficient way. The computers or other devices which
are connected via the network are known as nodes. The network allows geographically
distant computers to share information with one another, as well as allow multiple users
to share one or more devices. A network can also be defined as a collection of
independent computers, interconnected by a single technology. Two computers are
described to be connected when they are able to exchange information.

2.3 System Applications and Product as a significant tool for Enterprise Research
Planning

Based on the given and gathered data, Special Salmon seek to a better and
strong communication by implementing systems that is able to link each computer to
have an easier access to the data. One of the demanded Enterprise Resource Planning
tool in the industry that is capable to offer a great data flow is the System Applications
and Product. It is an integrated ERP tool that is competent to meet the demands of the
industry.

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SAP has been able to improve the efficiency of businesses. By implementing

SAP ERP it can sharpen the data flow to more accurate and real-time viewing of the
data. It has the ability to automate the enterprise and to keep their operational
processes and data up to date while having an expanding industry.

2.4 Significance of Managing Data Flow

To understand the complexity of the essential data access it must have a

foundation of data. A good streams of data is also one of the important factors
concerning the business success since it can increase the productivity and promote
strong communication within the company’s system. A well-ordered data is capable to
give an easy access to find the needed data. In order to separate a specific data
structures it will need a software application that is capable to develop structures and
database. By having a developed database there are advantages such as simpler to
identify ow2 121nr find a unique keys, easier to specify records and better functioning.

2.5 Effects of Networking on Career Success: A Longitudinal Study

The research is about report of effects of networking, defined as building,

maintaining, and using relationships, on career success. However, empirical studies
have relied exclusively on concurrent or retrospective designs that rest upon strong
assumptions about the causal direction of this relation and depict a static snapshot of
the relation at a given point in time. This study provides a dynamic perspective on the
effects of networking on career success and reports results of a longitudinal study.
Networking was assessed with 6 subscales that resulted from combining measures of
the facets of (a) internal versus external networking and (b) building versus maintaining
versus using contacts. Objective (salary) and subjective (career satisfaction) measures
of career success were obtained for 3 growth rate of salary over time. Networking is
also related to concurrent career satisfaction. As satisfaction remained stable over time,
no effects of networking on the growth of career satisfaction were found.
consecutive years. Multilevel analyses showed that networking is related to concurrent
salary and that it is related to the growth rate of salary over time. Networking is also

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related to concurrent career satisfaction. As satisfaction remained stable over time, no

effects of networking on the growth of career satisfaction were found.

2.1 Areas of Considerations

The researchers come up with various objectives considering the problems

encountered in the Special Salmon situation. Stated below are the analyzed problems:

2.1.1 Poor Communication between Headquarters and Branch Offices

Since the company does not have a networking, the Headquarters Manager and
Branch Office Manager found it difficult to have a better decision making regarding if the
fish will sell immediately or if the fish stocks, stores and wait for the market price hike, or
to sell the part of its inventory to one restaurant chain and the rest at another restaurant
chains. Their computer systems are not directly linked to the branch offices that’s why
the data that they have is incomplete or inaccurate since the demand-supply are
fluctuating on daily basis or not completely stable because fish is considered as
perishable goods. Having an access in the data of branch offices will make the data
accurate and will make the operation better and faster, instead of getting data through
phone calls.

2.2.3 Incomplete Elements of Management Information Systems

MIS consists of fundamental elements that make the organization organized and
functional. It composed of people, hardware, software, business processes, data and
telecommunications and networks. Absence of one of these could have an impact in the
organization in terms of achieving its objective. In Special Salmon, the managers, staffs
and branch office managers are considered as the people as they are the one who use
the information system to record the business transactions. The business processes
covers the operations from ordering of fish up to delivery to restaurant chains. The IBM

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mainframe computers and printers are the hardware; it is all updated capable of being
networked. The software that company has is the windows that operate the system.
Given the current situation and elements of the MIS that have the Special Salmon, the
researchers found out that network with branch offices are unavailable. Local area
network (LAN) is presented but provides only sharing of laser printers within the
headquarters. The network is considered as one of the ways on how to improve the
communication between the two entities. The two will have centralized system that will
help them in management decision making.

2.2.3 Lack of Characteristics and Features of Management Information Systems

of Special Salmon

Special Salmon lack of the Characteristics of Management information Systems

such as the following:

 Management-oriented – The Special Salmon does not include the basic

objective of MIS which is to provide information support to the company in order
to come up with a better decision-making.
 Integrated – They do not have an access between the branch offices data,
therefore they found it difficult to provide a decision regarding the supply-demand
data.
 Common data flows – The data stored between the headquarters and branch
offices are inaccurate practicing the action like this will help to avoid duplicacy,
and redundancy in data collection, storage and processing.
 Heavy planning-element – In terms of MIS preparation the Special Salmon
does not properly plan the installation of networking linking directly to the branch
office. Special Salmon does not invest long period of time for analyzing the
suitable networks for the business operation.
 Common database – The collection of information in the Special Salmon are not
précised enough to have a better decisions.

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 Computerized – Since they used telephones to communicate with one another

although it is applicable without computer but with computers the business
operation increases the effectiveness and the efficiency of the system.
 User-friendly/flexibility – The MIS of Special Salmon are flexible internally but
in terms of externally they lack of flexibility of directly communicating between the
branch offices.

The management information system has the following features which the
company’s current information system is lacking of:
 Timeliness – Timeliness signifies that an organization’s MIS can provide
and distribute current information to its users. Since the company does not
have applicable management information systems software, the
headquarters manager and branch offices managers communicate only
through phone calls daily to transfer specific information on each other.
 Accuracy – The processed information transferred from phone calls are
inexact which leads to inefficient and ineffective systems.
 Consistency – MIS consistency in handling data must be taken into
consideration for well-defined, documented processes, and ability to adapt
with a dynamic environment. Supply-demand is changing on a daily basis
they do not have a consistent data that the headquarters Managers
transfers to the branch offices.
 Completeness – Management needs complete and related information to
eliminate information overload. Since they are conversing only through
phone calls the data received sometimes are incomplete due to poor
communication.
 Relevance – The information system of the company does not provide
accurate delivery to the restaurant chains because of the absence of
computer networks.

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2.1.2 Existing Type of Network of Special Salmon

There are one or two local area networks (LAN) at headquarters of Special
Salmon. LAN is a small network that is restricted to a small geographic area, thus, the
network is available only to the resident of a particular building. The company uses
LAN to share laser printers. The computers in headquarters cannot communicate with
other branch offices of Special Salmon because of the absence of WAN, other type of
computer networks.

Wide Area Network (WAN) covers a broad range of geographic area. It is used to
connect LANs and other type of networks together in order the users and computers
can communicate with computers in a region. Since the company has branch office at
each 81 ports located at Atlantic and Pacific seaboard, therefore, WAN is necessary to
each branch offices in order to communicate and have an access with the main
headquarter.

2.2 SWOT / TOWS Analysis

Table 1. SWOT / TOWS Analysis of Special Salmon

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 Special Salmon Case Study

Strengths (S)
Internal
Weaknesses (W)
Factors - one of the largest providers of fish to
restaurants in North America
- poor business data communications
External - flexible, innovative and strong
- inefficient and unreliable decision
Factors management system
making processes
- updated business communications
equipment
Opportunities (O) W/O Strategies

- competitive S/O Strategies - usage of advanced technology to

advantages improve business communication
- technological - continuous improvement processes
advances - improve capabilities of IT department
- brand value - hire more IT-oriented people

W/T Strategies
Threats (T)
S/T Strategies
- business data communications
- keen competition
improvement
- dissatisfaction of - benchmark with strong competitors
- training of executives and managers
customers
about data communications

2.3 Alternative Courses of Actions

2.3.1 ACA 1: Establishing an extranet

In order to link the company with its branch offices and customers, creation of an
external business-sharing site or extranet.

An extranet is a private network that uses internet protocols and network

connectivity. It can be viewed as part of a company's intranet that is extended to users
outside the company, usually via the Internet. It has also been described as a "state of
mind" in which the internet is perceived as a way to do business with other companies
as well as to sell products to customers.

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An extranet site is a site where anyone you

choose outside of your company can have secure
access to content you wish to share or
collaborate on. The content is kept in one
place and can be accessed anywhere using
any device. The power of the extranet is
that it leverages the existing technology of
the Internet to increase the power, flexibility,
and competitiveness of businesses utilizing
well- known and easily used tools such as web servers
Figure 1. Diagram of Extranet and web browsers. Extranets also save
companies money by allowing them to
establish business-to-business connectivity over the internet instead of using
expensive, dedicated leased lines. As well as it is reducing phone and fax costs.

Benefits of an extranet

1. Increased productivity. As you automate processes that were traditionally done

manually, bottlenecks will disappear and your company’s productivity will
increase. Critical information won’t get lost in the mail or buried in an e-mail
inbox, and busy employees won’t miss or forget key events. An extranet can, for
example, monitor business activities and trigger specific actions, such as
automatically placing an order with a supplier when your inventory drops below a
certain level.

2. Reduced margin of error. An extranet can reduce your margin of error,

especially when you use it to give specific groups access to internal applications.
This could involve something as simple as giving customers access to their order

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histories, or something as complex as processing orders from distributors and

suppliers.

3. Flexibility. When you use an extranet to make information and applications

available to partners, clients, and customers, everyone can operate when and
where it’s most convenient. This self-serve approach frees you from unnecessary
meetings and phone tag, and it cuts down on the costs associated with in-person
information exchanges. For example, an extranet may allow you to provide
customer-service information outside of regular business hours.

4. Timely and accurate information. On an extranet you can instantly change,

edit, and update sensitive information such as price lists or inventory information.
Compared to typical paper-based publishing processes, an extranet offer a
unique opportunity to get hot information into the right hands before it cools —
and before it’s out-of-date.

5. Shorter time to market. If your business is not moving at “Internet speed,” you
risk being left behind. An extranet can help you get your products to market more
quickly by making proposals and specifications available to suppliers, and giving
clients and partners up-to-date information on current projects.

6. Reduced inventory. One of the hallmarks of a business-to-business extranet is

its impact on supply-chain management. By linking your inventory system directly
to a supplier, you can process orders as soon as the system knows you need
them, thus reducing the stock you keep on hand and making the procurement
process more efficient.

7. Build customer loyalty. Extranets make business easier for your customers.
The more you make timely, accurate information available to your customers, the
more likely it is you’ll keep their business.

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Cost of Extranets

According to http://www.va-interactive.com/inbusiness/editorial/biztech/ibt/
extranet, global companies often spend up to $200,000 or Php 10,000,000 to create an
extranet, and millions more to provide specialized functions such as advanced inventory
data or sharing financial information with joint-venture partners.

2.3.2 ACA 2: Installation of SAP

Based on the gathered data and further research, the proponents decided to
propose the use of Systems Application and Products (SAP) as a wireless network that
can effectively linked the networks from the headquarters up to their branches. It has a
various analytical features and can analyze data from any sources that allows to meet
the needs of many complex businesses.

There is a reconfigured two software integration package that was developed by

SAP that can make the data processing easier. For headquarter the software to be
installed is the SAP Business Suite for data sharing. It is a Tier-one software that is fit to
runs at larger operations such as the main plant or headquarter. Meanwhile, the
software to be installed in their subsidiaries will be the SAP Business One. It is a tier-
two software that runs for smaller location that fit well to Special Salmon’s branches.

With the help of SAP Business Suite, when the headquarters runs their SAP ERP
it will automatically runs SAP Business One in their branches that will give an easier
and faster access to the data of each branches.

Benefits of SAP

The researchers list the importance of SAP implementation. These are the
following:

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1. Increased Productivity

Installation of SAP results to better business decision-making and business

process standardization that leads to more streamlined operations, therefore, it is able
to efficiently keep the process flow in control promoting the increase of productivity.

2. Universal Access of Corporate Data

It connects and promotes data harmonization that gives easier access to all the
data that was saved in each branch. Its access is global as long as the needed SAP
software is installed in their respective branches. It will give better coordination and
increase the visibility that gives a real-time insight to the data.

3. Data Availability

SAP allows the company to make its own rules within the SAP structure. The
data availability will depend in the rules from the headquarters. It can allow and disallow
an employee to have an access to a certain data. It is also flexible to integrate variety of
data in which the users can easily download the needed information in a spreadsheets.

4. Increased Network Coverage

SAP is ideal software for controlling large businesses that contain numerous
branches. It has a good supply chain management that fits well to Special Salmon since
it is one of the biggest suppliers of fish to restaurants in North America. It can also

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standardize and continually control the responsiveness of each branch that allows the
flexibility of expanding and extending for more branches.

Cost of SAP Implementation

Table 2. Cost of SAP

SOFTWARE SUPPLIER COST

SAP Business Suite SAP Php 168, 586.11/user

SAP Business One SAP Php 87,331/user

The table shows the cost of softwares provided by SAP. Since the Special
Salmon has a total of 81 ports, thus, it also has the same number of branch managers.
In SAP Business Suite, the total cost would be Php 13,655,474.91 if all branch offices
will be installed with SAP. While the SAP Business One, the total cost would be Php 7,
0731 811. In addition to the cost, the headquarter needs also to implement SAP in order
to communicate with branch offices. More than 10 million peso would be the cost of
SAP implementation.

III. Conclusion and Recommendation

3.1 Conclusions

The researchers conclude that data communication plays a key role in daily
productivity of an organization. It can affect businesses by being the foundation for

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distributed systems in which information system applications are divided among network
of computers. Data communication networks facilitate more efficient use of computers
and improve the day-to-day control of a business by providing faster information flow.
This flow of information is vital for managerial effectiveness and decision making in
general.

The computer system between the headquarters and branch offices of Special
Salmon do not directly communicate as the headquarters’ computer network is local
area network (LAN) which only spans within the headquarters itself. It affects the
efficiency and reliability of the decision making processes of managers as they decide
through themselves via phone calls with incomplete data.

Through networking the headquarters and branch offices’ information systems,

the productivity and efficiency of the overall information system of the company will
increase for instead of phone calls that communicated very little of the total data, the
computer-to-computer communication could transfer enough data to optimize the selling
of branches’ inventory among restaurant chains. Also, the margin of error will be
reduced since all the necessary data are accessible by them in order to make right and
effective decisions through accurate and timely data from each other.

3.2 Recommendation

The researchers recommend the ACA 1: Establishing an extranet as the key to

overcome the problem of the company and to have a well-coordinated system in order
to have a better interaction internally and externally. By using WAN, employees can
access to the extranet.

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Implementation of Extranet

Based on data gathered by the researchers by analyzing the areas of

considerations the team come up with the result of conducting training for the
executives and to other employees for the Extranet installation for private website that
will be accessed by the customers or the different branches of Special Salmon. In
order to be knowledgeable about the processes of extranet. Considering the cost of the
two alternative courses of action, extranet has a lower cost than the implementation of
SAP.

Schedule of Training

Table 3. Training Schedule

TRAINING SCHEDULE
WHO: EXECUTIVES AND OTHER EMPLOYEES
WHAT: TRAINING AND SEMINAR ABOUT EXTRANET IMPLEMENTATION
WHERE: SPECIAL SALMON TRAINING ROOM
WHEN: MONTH OF SEPTEMBER, EVERY SATURDAY (8 am -1 pm)

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The researchers proposed the above training schedule regarding the conducting
of training for the establishment of extranet as their platform to communicate the
headquarter and branch offices of Special Salmon. It will be held at Special Salmon
Training Room every Saturday from 8 am to 1 pm for the month of September. The
Chief Information Officer will be the committee who will conduct the training. The
expected participants are the executives and other employees of Special Salmon. After
the training evaluation for the employees are needed to assess their learning about the
training.

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References

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interactive.com/inbusiness/editorial/biztech/ibt/extranet
 (n.d.). 5 Advantages Of Extranets That Will Inspire You To Start One Today.
Retrieved from https://www.glasscubes.com/five-reasons-why-your-business-
needs-an-extranet/
 (n.d.). Extranet. Retrieved from
https://www.ionos.com/startupguide/productivity/extranet/
 Copy Edit Delete In-text Citations Check for Grammar Check for Plagiarism
 (n.d.). Extranet Overview. Retrieved from
https://www.tutorialspoint.com/internet_technologies/extranet_overview.htm

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