Akosua Textiles Ltd has grown from a hand weaving “kente” factory to a modern textiles and fabric processing company with shops spreading across the country. The company faces a lot of system challenges and the Board appointed a systems expert to conduct a review of systems and technology within the company.
The findings of the expert were:
- the systems are generally weak and the benefits of modern software applications lacking;
- the accuracy and completeness of information received by head office from shops needs to improve;
- the existing financial system is struggling to cope with the rapid growth of sales;
- common computerized stock records will also be required for proper inventory management and control; and
- internet possibilities are being missed and there is no virtual network.
Required:
Identify FIVE ways in which Information Technology and Information systems might improve Akosua Textiles Ltd. (10 marks)
View Solution
- Establish a well-designed website
Akosua Textiles could invest in a website to provide information to customers, enhance the brand, offer online booking for optical appointments and sell own-brand products. It would be essential that the site was integrated with back-office systems, to ensure the booking process went smoothly. The site should include e-commerce and also be a key marketing tool. - Establish a Wide Area Network (WAN)
By linking computers at shops together, a WAN would facilitate improved communication and collaboration between shops. The WAN would enable data and information to be shared quickly and effectively, and would also provide a platform for the implementation of organisation-wide systems. - Implement a new integrated sales, stock and financial system
There are currently a series of shops operating independent computer-based systems and some shops using manual systems. A common stock and point of sale system, integrated into the proposed new financial system, would save time analysing and searching for information in shops and enable quicker and more accurate production of financial information. Integration between systems is important to reduce the need for keying data, as this is expensive and likely to introduce data inconsistencies and errors. - Introduce consistent, simplified operational procedures
The new sales system referred to above should include an Electronic funds transfer at point of sale System (EFTPOS). This would enable staff to process sales more efficiently, improving customer service. It would also mean less time spent on accounting and administration tasks, as the calculation of sales figures and the updating of stock would be largely automated.
All shops should use the same system, allowing procedures to be standardised – bringing an additional benefit of staff being able to work at more than one shop. - Implement an Executive Information System (EIS)
An EIS sitting ‘on-top’ of the new integrated sales, stock and financial system would enable the senior managers to produce tailored high-level information to support strategic decisions. The software should facilitate the monitoring of Key Performance Indicators (KPls) linked to Critical success factors.