A Case Study on

The Effect of Information Systems on Firm

Performance and Profitability

INFORMATION SYSTEM MANAGEMENT

Submitted by :
Submitted to Era Chaudhary
Dr. Sandeep Kumar TECNIA INSTITUTE, GGSIPU
(DELHI)
MBA (3rd SEM)
 INTRODUCTION
• This case belongs to business information system : “ the sum
of all the tools, techniques and procedures used by the
business to process data”.
• Information systems (IS) are formal, socio technical,
organizational systems designed to collect, process, store, and
distribute information .
• In a socio techical perspective, information systems are
composed by four components: task, people, structure (or
roles), and technology.
 ABOUT THE COMPANY
• Beale and Cole Building Services was established in
1967.
• Situated in South West of England with branches in
Exeter, Yeovil and Plymouth .
• Company witnessed growth, however, the existing
operational practises, processes and supporting
Information, Communication and Technology (ICT)
infrastructure were inadequate to efficiently sustain
this level of growth.
 ABOUT THE COMPANY
• In 2003, Partnership with the University of
Plymouth embarked on a Department of Trade
and Industry (DTI)
• Objective: Coalition was to implement new
integrated business and supporting IT systems
which would streamline operations, increase
internal efficiency, facilitate sustained growth
and increase profitability.
 Initial review of Beale and Cole’s
information systems
• Matthew Simmons <associate> , reviewed the internal processes and
existing Information systems in the organisation so as to highlight the
major problem areas.
DUPLICATION
PROBLEMS :
INEFFICIENCY
1. Duplication of effort ECOM-STRATEGY
2. Inefficiency in some processes COMMUNICATION
3. e-commerce strategy
4. Problems with communication..
PERFORMANCE

PROFIT
EFFICIENCY & E-COMM STRATEGY
• Problems highlighted by associate:
OLD ACCOUNTING SYSTEM
OUTDATED SOFTWARE: as the structure of the database was
weak, translating it would have been very difficult, time
consuming and cumbersome .
• The company had not used the website as a marketing tool .
• The company didn’t update the website regularly.
 INFORMATION
• Info. Stored at very high cost
• MODES:
a) Phone
b) Fax
c) face to face
d) limited use of e-mail
• Increased expenditure on telephones due to lack of network
capabilities for file sharing and organised postal system and
no internal communications link for the offices .
• This leads to data duplication, loss of information, elongated
processes and increased time frames for decision making
 RESEARCH METHODLOGY
• Qualitative research
Case study of company through a series of in-
depth interviews and observation. The
evidence from the interviews and observation
are compelling, and therefore the overall
study is more robust(durable).
 CONCLUSION
• The elimination of outdated technology/ information
system/ software is important for the effectiveness &
efficiency of the company
• It will reduced operating and transaction costs,
increased turnover and eventually enhance
profitability
• Integrated IT system will serve as a strategic tool for
Beale and Cole to sustain its continued growth and
maintain its competitive advantage as one of the
leading services company in the South West region.