0872365

STUDENT I.D: 0872365/1

MODULE TITLE: Information Systems

WORD COUNT: 2790

1.0 Introduction

1
0872365

Information Systems can be understood as a system designed to produce information

that can be used to support the activities of managers and other workers. Aalsmeer
Flower Auction in the Netherlands is a global trader of plants and flowers, offering to
international gardeners, wholesalers and exporters. Their goal relating to the
technology used by the Aalsmeer was to establish an e-business sector that would
benefit the company, its wholesalers and retailers and increase market share.
Aalsmeer desired to accomplish this objective but failed because newly-developed
electronically advanced flower markets, relating to suppliers and not retailers and
increase in retailers because of mergers and acquisitions. In order for Aalsmeer to
accomplish is target goal and incorporate the developmental threats, recommendations
for an upgrade was made. Once an upgrade is made, then measures should be put in
place to benefit the organisation, managers and employees in that the organisation
should benefit positively from the implementation of this upgrade.

2.0 Recommendations for New System Development

2
0872365

The value chain of Aalsmeer determines the recommendations of IT upgrade

considered that can benefit Aalsmeer in a more productive and profitable approach.

Firm’s Infrastructure
Margins
Human Resource Management

Technological Development

Procurement
Operations

and Sales
Outbound

Marketing
Logistics

Logistics

Services
Inbound

Margins

Figure 1: Value Chain Structure

Firm’s Infrastructure refers to the organisational structure. The structure of Aalsmeer

comprises of a Board of Directors and a Supervisory Board that General Management
report to. The Managing Director has to supervise the commercial and operational
directors that manage the departments of the company. Human Resource
Management is also a department supervised by the Operational director. This
segment deals with the workforce need to auction the sales of the flowers for
Aalsmeer. Technological Development is the systems and technologies used to
support the company’s day-to-day activities. Procurement is the purchasing of
materials and equipment used to transport and storage of the auctioned flowers.

Inbound Logistics are the placement of orders of the flowers as well as the delivery of
the auctioned flowers. Operations are the Auction process used by Aalsmeer as and
the auctioning of new buyers and retailers. Outbound Logistics is the exporting factor of
Aalsmeer as the flowers are shipped to the overseas buyers. Marketing and Sales
refers to the website created, showing all of Aalsmeer inventory thus increasing sales.
Services are the services of providing flowers to Aalsmeer retailers and buyers.

3
0872365

2.0 Recommendations for New System Development

The system used by Aalsmeer is assumed to be a basic system where Aalsmeer

operates with a Computer-based information system. This system makes use of the
information technology to create management information, which was the list of
4
0872365

suppliers and retailers, their locations and respective price determinations. There are
recommendations that can be considered when upgrade a business’ computer-based
system. Such upgrade factors are internet development which comprises of e-
business, e-commerce, intranet and extranet. Each component of internet development
provides an essential factor to a company. The Internet Economy encompasses all
activities involved in using the internet for commerce. There are four (4) layers of the
internet economy; internet infrastructure, applications, intermediaries and commerce.

E-business is the use of communication and information, mainly the internet to carry
out ordinary business activities. When using e-business, production processes,
customer-focused processes and internal management processes are enhanced. This
is an essential approach when considering the factors of the value chain, such as
Procurement, Marketing/ Sales and HRM.

E-commerce is technology used to perform business transactions such as buying and

selling, and in this case, auctioning, of goods and services. In this factor, there are five
basic types of activities, business-to-business; business-to consumers, business-to-
government, consumer-to-consumer and m-commerce. These activities utilize the
basis of e-commerce, communication through e-mails and websites.

Intranet is a private network within a single company that used internet standards to
enable employees to share information through e-mails and website distributing. In
other words, intranets are internal corporate networks based on internet technologies.
This represents a private gateway that provides a single point of access to buyers and
retailers to gain access to information regarding Aalsmeer.

Extranet is an extension of intranet beyond a company and expanded to its buyers and
sellers as well as any other associates. Extranet allows different firms to work
collaboratively on product designs, marketing and production. In the case of Aalsmeer,
extranet allows their buyers to interact with their company through the website and
support the supply chain of its suppliers. Having recommended a new IS/IT strategy,

5
 0872365

the upgrade to the out-dated system, there are ways in which a new information
system is developed and implemented.

Systems
There are many systems development methods and models that Aalsmeer can utilise,
such as Waterfall, Prototyping, Incremental, Spiral, RAD and SSADM. In more details,
MODEL can focus on ADVANTAGES DISADAVANTAGES
Aalsmeer the Waterfall Model, Prototyping and SSADM as they are more
• Ideal for supporting new
suitable to the company. • Inflexible, slow, expensive
project terms and due to the significant

the series if steps that should structure

Waterfall Model ismanagers occur whenand building
tight controls.
a Business
Information
Waterfall Systems. The purpose
• Progress of the
od systems areWaterfall• model is to divide
Produces the development
an excess of
process
Model into a number of manageable areas that relate
measurable to each other
documentation in an organised
and
way. However some associated tasks may have to be completed
keeping beforeasother
it updated the can be
initiated. project progresses is time-
consuming.
Prototyping consists of constructing an experimental system rapidly and inexpensively
• Improves both user • Approval process and
for end users to evaluate. By networking with the prototype, users can attain a better
participation in the control is not strict.
understanding of the required information. This is a compatible with Aalsmeer as one
system’s development
of their recommendations is e-business. • Requirements my
and communication with
frequently change
project stakeholders
SSADM is the acronym for Structured Systems Analysis significantly.
and Design Method which is a
Prototyping
systems approach• Encourages innovation
to the analysis and design of• information systems. This is also
Prototype may not have
and flexible designs
referred to as a methodology that defines the methods of analysis
sufficient checks and
and design that
should occur in •a large-scale software
Helps to easily development balances
identify project. SSADM focuses on the
incorporated.
feasibility, analysis and design
difficult aspects of the systems development systems.
or missing
functions.
When choosing an ideal development system, a comparison of the positive and
negative effects of each model. This will debate the suitable system for Aalsmeer.
The table below,• Table
Allows 1,
oneshows
projectsuch • Danger
to becomparison of over-analysis
between the Waterfallof Model,
planned and managed in
Prototyping and SSADM. the project and
a timeline. documentation.
SSADM
• Separates the logical and • Danger of over-spending
the physical systems on unnecessary analysis
design to cut on cost

Table 1: Comparison of Three Models of Systems Development. 6

0872365

3.0 Prototyping Model of Systems Development

The most suitable of the three models, waterfall, prototyping and SSADM is
Prototyping.

3.1 Prototyping and Its Benefits

There are various definitions of prototyping. It is considered as a working version of an
information systems or part of the system but meant to be only a preliminary model. In
other words, prototyping is the process of building a model that demonstrates the
features of a proposed product, service or system.

7
0872365

There are four basic functions when using prototyping in a systems development
process such as gathering requirements, helping determine requirements, proving that
a system is technically feasible and selling the idea of a proposed system. In the case
of Aalsmeer, helping determine requirements and gathering of requirements will help
the company to provide the necessary information to its suppliers and retailers on their
flowers. The prototyping process is designed in the form of a flow chart, consisting of
four steps.

(Step 1) Identify Basic Requirements

(Step 2) Develop a Working Prototype

(Step 3) Use the Prototype

YES User Satisfied??

(Step 4)
NO

Operational Revise and enhance

Prototype the prototype

Flow Chart 1: The Prototyping Process.

3.2 The Prototyping Process

Prototyping has proved an excellent tool in systems development. The four steps are
identifying basic requirements, developing initial prototype, user review and if
necessary, revise and enhance the prototype.

Identifying basic requirements, (Step 1) is gathering basic requirements for the

proposed project or system. Such requirements consists primarily of input and output
information needed by the systems designer who works with the user, in this care
Aalsmeer, long enough to attain their basic information.

8
0872365

Developing initial prototype, (Step 2) is where the system designer creates a working
prototype quickly, with the use of tools for generating software. Most often, the initial
prototype will include only user interface.

User review (Step 3) is when the user, Aalsmeer, is encouraged to work with the
systems in order to determine how well the prototype meets with their requirements.
Suggestions are made where there should be changes or addition to the prototype
system. Only if this is to be done then Step 4 will be performed.

Revise and enhance the prototype (Step 4) is where all the necessary changes and
additions the user requests and improve the prototype accordingly. After such
adjustments are made and the system designer is satisfied with the adjustments, Step
3, user review is redone. This is to ensure that the user is satisfied with the improved
prototype and will implement it in day-to-day activities.

3.3 Elements of Prototyping

There are situations where prototyping can be beneficial. It is appropriate where the
project is large with many users and functions and project risks are related to
requirement definition that has to be reduced. There is also no need to have resources
consumption minimized in that no cut-backs are necessary. Prototyping can deal with
functional requirements that may change frequently and significantly as well.
Prototyping is more effective if the project initiator and team member are experience in
information systems as this can also be a cost benefactor as the Aalsmeer saving on
costs to keep hiring an expert in IT for any data input or prototype issue (unless if
necessary).

3.4 Advantages of Prototyping

9
0872365

The advantages discussed in the comparison table were the basic benefit factors of
prototyping. There are others that are also advantageous such as active user
participation, resolution of discrepancies, determination of technical feasibility and the
sale of the idea of a proposed system.

Active user participation is where the users, Aalsmeer owners are encouraged by the
details of prototyping in the development process. Prototyping allows the user to see
and work with the working replicas of the proposed system. Resolution of
discrepancies among users is assisted by prototyping as several users of the prototype
system participate in defining and reviewing the requirements of the prototype. The
more users partake in prototyping, the easier it is to resolve any inconsistencies that
may be encountered. Determination of technical feasibility operates with the proof of
concept prototypes that are great for shaping technical practicality of the proposed
system. The selling of the idea of the proposed system is helped by the prototype in
that it can break down resistance obstructions and sell the system. Many people would
not want to incorporate the new systems in their operations, however, if Aalsmeer do
utilizes this model, it can be proven that the new system will be successful and this will
encourage Aalsmeer’s sales and buyers’ list to increase. Once this new system has
been implemented, there are some other organisational issues to be dealt with, such
as security and data protection, change in management, control of the system and
disaster preparedness measures.

10
0872365

4.0 Organisational Issues Effect of New System

Security of the system if implemented will be assigned to the managers of Aalsmeer.
Aalsmeer should implement a security policy within the company in addition it is
necessary to ensure that employees follow the guidelines contained within the policy. A
password should be in effect as the major information that can offend the company
should be accessed by managers alone and as employees of the company are not
entitled to certain information. Another security measure is encryption which allows an
additional cover of protection of sensitive data which can be provided by making used
of encryption techniques. Encryption entangles the contents of a file or information so
that it cannot be read without having an encryption key. This key should only be
provided by management.

Change in management can affect any company as it is imperative that companies

make an effort to protect their information and their information systems and prepare
risk management process. This risk management consists of the identification of risks
and threats and acknowledging the areas of the system that are vulnerable. There is a
11
0872365

process developed from risk management which is risk assessment. Risk assessment
is the process of evaluating the IT assets, their importance to the organisation and their
weakness to threats. In other words, it determines the level of risk to the firm if a
specific activity is not properly controlled. Another management issue is if there is a
change in management of the company itself. If Aalsmeer changes its management
department, then the passwords and encryption keys will have to be dispensed to the
new management. This can be dangerous in that new management may not know how
the use the new system once it is implemented.

Control of the system is categorised in three categories, vandalism, unauthorised use

and computer virus and malware. Vandalism is deliberate damage caused to the
hardware, software and any data associated with the computer. The threat of
vandalism lies in the fact that some organisations have denied access to its
information. Aalsmeer should protect their company from vandalism by securing their
information systems in a safe environment, and should be cautious as to the
accessibility to that safe environment. A delay caused by the need to replace damaged
property may result in unavailability to compete for new businesses and engaging in
important activities that would affect their revenue negatively.

4.0 Organisational Issues Effect of New System

Unauthorised use is the major category that contains hackers and crackers. Hackers
are described as individuals who seek to break into systems as a trial to their
capabilities and crackers are persons who gain access to an information system for
mischievous reasons. To prevent hackers and crackers from penetrating the
information prototype system, the security measures are to be implemented. Firewalls
should be implemented as this is a specialised software application, created on a
server at the point where the company is connected to the internet and prevent
unauthorised access into the company. It will be very helpful as Aalsmeer’s
recommendation of e-business and e-commerce are for internet purposes.

Computer Viruses are programs that are capable of self-replication, allowing it to

spread from one infected device to another. Malware is a generic term for software
intended to gather confidential information from a computer system and cause harm to
valuable data on a computer device. Virus can be transmitted through any built-in

12
0872365

programs featured within any modern applications in the computer. Employees,

maintenance and consultants are the major ways in which viruses can be transmitted
in that they are responsible for downloading e-mails and upgrading applications without
checking for viruses. There are ways in which virus infections can be prevented.
Machines and anti-virus software should be implemented and checked regularly for
updates. All new disks should be checked and scanned with a virus protection program
and most important, backups of data and program files must be made in order to
minimise the damage caused if a virus infects the system.

Disaster preparedness is a cause of possible natural disaster and unexpected loss of

information. It is necessary in modern times to always keep a backup system of all
information stored on a computer. Backup is the process of making copies of the
information stored on any computer or computer device. The effects of sudden loss of
data can affect a company’s activities. Aalsmeer should keep a backup of all its buyers,
retailers and other information stored on the company’s computer as a precautionary
measure from this threat. This backup of files should be completed at least once a
week and should be encrypted as well to prevent hackers and unauthorised users.

13
0872365

5.0 Conclusion
From the analysis above and the recommendations of e-business, e-commerce,
intranet and extranet, Aalsmeer should accept the upgrade to their existing computer
information systems. This upgrade, using prototyping model, will enhance the IS and
the IS/IT strategy of Aalsmeer. As the company needs to now incorporate new
electronic market drivers, attaining to the needs of retailers and considerations of an
increase in the number of retailers to be supplied by the company due to mergers and
acquisitions. If Aalsmeer choses to implement this prototyping model in their system,
then measure would need to be taken to prevent viruses, loss of valuable information
and hackers in order to be productive.

14
0872365

6.0 Bibliography

• Bocij P. et al. (2008) Business Information Systems: Technology, Development

and Management. 4th Edition. Prentice Hall, England.

• Haag S. et al. (2005) Management Information Systems: For the Information

Age. 6th Edition. McGraw-Hill Irwin, New York

• Laundon K. et al. (2007) Management Information Systems, Managing the

Digital Firm. 10th Edition. Prentice Hall, New Jersey

• http://www.macs.hw.ac.uk/~lf16/SelectingDevelopmentApproach.pdf

• http://www.nasscom.in/download/ssad.pdf

15