Management information system final project

Today, Amazon is the world's largest online retailerand provides a wide range of products and services to its customers worldwide.Amazon's business model is based on customer-centricity

TON DUC THANG UNIVERSITY

FACULTY OF FINANCE AND BANKING



MANAGEMENT INFORMATION SYSTEM

FINAL PROJECT

Lecturers: Ph.D Pham Thai Ky Trung Students:

PART 1: CASE STUDY – A SUCCESS STORY FROM AMAZON 5

1 Company Description and Business Model 5

2 E-commerce and Revenue Model 5

3 Reasons for Success and Analysis 7

PART 2: A FICTION COMPANY – ORGANIC PLANT FARM 8

1 Introduction (Goals, Strategy, Mission, Vision ) 8

2 Company Structure (Departments, Business Functions) 9

2.1 Production Department 11

2.2 Supply Chain Department 11

2.3 Sales and Marketing Department 12

2.4 Finance and Accounting Department 12

2.5 Human Resources Department 13

2.6 Research and Development Department 13

3 SWOT Analysis/ 5 Porters Analysis 13

SWOT 13

5 Porters Analysis 15

4 Business Processes 16

Order to cash: 16

Purchase to pay 17

Make to order/make to stock 18

5 Problem of your company in IT 19

PART 3: DEVELOP A PLAN FOR AN INFORMATION SYSTEM 20

Step 1: Define outcome 20

How will a better information system benefit our company? 20

How will our company measure success? 27

Step 2: Form your team 28

Governance 28

Management 29

Development 29

Deployment 30

Step 3: Define what the system needs to do? 30

How can you define your requirements for the system? 31

Step 4: Find the right solution 33

Should you buy or build your system? 33

Do you select an open-source or proprietary system? 33

How do you evaluate different systems and select the best one? 33

Step 5: Select the right vendor 34

How do you make sure you select the best providers of technical services? 34

Step 6: Estimate implementation and operation costs 36

How much will your project cost to pilot, scale, and maintain? 36

Step 7: Create an implementation plan 37

How long will it take to develop, pilot, and scale up 37

Step 8: Understand and manage Project Risks 39

What can go wrong and how can you plan for that? 39

PART 4: ENTERPRISE APPLICATION (ODOO ERP) 40

1 Company Description and Business Model

Amazon is an American multinational technology company founded in 1994 byJeff Bezos in Seattle, Washington The company started as an online bookstore, butquickly diversified to sell other products and services such as electronics, clothing,furniture, and even web services Today, Amazon is the world's largest online retailerand provides a wide range of products and services to its customers worldwide.Amazon's business model is based on customer-centricity and innovation Thecompany has a vast selection of products available at competitive prices, fast andreliable delivery, and a focus on customer satisfaction Amazon also offers asubscription-based program called Amazon Prime, which provides members with freeshipping, streaming of movies and TV shows, and access to exclusive discounts anddeals Amazon Prime has been a key driver of customer loyalty, with over 200 millionsubscribers worldwide as of April 2021

Another crucial part of Amazon's business model is its focus on innovation.The company has made significant investments in research and development, leading

to the development of new technologies such as Alexa, Amazon Go, and Prime Air.These innovations have enabled Amazon to create new revenue streams anddifferentiate itself from competitors, contributing to the company's continued success

2 E-commerce and Revenue Model

Amazon has been able to establish itself as one of the world's largest commerce companies, with a diverse revenue model that has allowed it to continuegrowing over the years The company primarily operates under the B2C (business-to-consumer) model, where it sells products and services directly to customers However,Amazon has also ventured into the B2B (business-to-business) market, where it sellsproducts to other businesses, including manufacturers, suppliers, and wholesalers

e-company sells products and services directly to customers The e-company offers a widerange of products, including books, electronics, clothing, and home goods, amongothers Additionally, Amazon also provides a range of services, including its cloudcomputing service, Amazon Web Services (AWS), Amazon Prime, and AmazonAdvertising.

Amazon Web Services (AWS) is a cloud computing platform that providescustomers with various services such as computing, storage, and databases, amongothers AWS has been a significant contributor to Amazon's revenue, with thecompany generating $45.3 billion in revenue from the platform in 2020, accountingfor around 13% of its total revenue

Amazon Prime is another key service that the company offers, which allowscustomers to enjoy a range of benefits, including free two-day shipping on eligibleitems, access to streaming of movies, TV shows, and music, and access to otherexclusive deals and offers Prime has become an essential part of Amazon's revenuemodel, with customers paying an annual fee of $119 to access the service.Amazon Advertising is another revenue stream for the company, wherebusinesses can pay to advertise their products on the Amazon website, app, and otherAmazon-owned properties Amazon's advertising revenue has been growing rapidlyover the years, with the company generating $21.5 billion in revenue from advertising

in 2020, accounting for around 6% of its total revenue

In addition to its core revenue streams, Amazon has also invested in a range ofother businesses, including Whole Foods Market, which it acquired in 2017 for $13.7billion The acquisition allowed Amazon to expand its operations into the grocerymarket, enabling it to offer a wider range of products to its customers Amazon hasalso ventured into the healthcare industry, launching Amazon Pharmacy in 2020,which allows customers to purchase prescription drugs online and have themdelivered to their doorstep

sellers, who can use the Amazon platform to sell their products to customers In thismodel, Amazon charges a commission fee to the third-party sellers for using itsplatform, and it also provides additional services such as fulfillment and shippingservices This has allowed Amazon to expand its product offerings, and it now offersmillions of products from third-party sellers on its platform.

3 Reasons for Success and Analysis

Amazon's success can be attributed to a combination of various factors,including its customer-centric approach, innovation, diversification, logistics andsupply chain management, data-driven decision making, and strong brand reputation

Customer-centric approach: One of the key reasons for Amazon's success is

its customer-centric approach Amazon places a strong emphasis on understanding theneeds and preferences of its customers and tailoring its offerings accordingly This isreflected in the company's customer review system, which allows customers to rateand review products, as well as the personalized recommendations and suggestionsthat Amazon offers based on customer data By putting the customer first, Amazon hasbeen able to build a loyal customer base that trusts and values its services

Innovation: Another reason for Amazon's success is its constant focus on

innovation The company is known for introducing new products and services thatdisrupt traditional industries For example, the Kindle e-reader revolutionized thebook industry, while Amazon Prime changed the way people think about onlineshopping The company has also invested heavily in technologies such as artificialintelligence, machine learning, and voice assistants, which have helped to improve itsservices and streamline its operations

Diversification: Amazon has diversified its offerings beyond just retail In

addition to its e-commerce platform, the company now offers a variety of services,such as Amazon Web Services (AWS), which provides cloud computing services tobusinesses This diversification has helped Amazon to grow its revenue streams andreduce its reliance on any one product or service

logistics and supply chain infrastructure, which allows it to offer fast and reliableshipping to customers The company has developed its own delivery network,including warehouses, fulfillment centers, and delivery vehicles This infrastructureallows Amazon to deliver products quickly and efficiently, which has helped toimprove customer satisfaction.

Data-driven decision making: Amazon uses data extensively to make

business decisions The company collects and analyzes data from customerinteractions, website usage, and other sources to make decisions about productrecommendations, pricing strategies, and inventory management This data-drivenapproach has helped Amazon to stay ahead of its competitors and improve its servicesover time

Brand reputation: Finally, Amazon has built a strong brand reputation over

the years The company has a focus on customer satisfaction and convenience, and hasconsistently delivered on its promises This has helped to build trust and loyaltyamong customers, who are more likely to return to Amazon for future purchases

PART 2: A FICTION COMPANY – ORGANIC PLANT FARM

1 Introduction (Goals, Strategy, Mission, Vision )

1.1 Goals

 To provide healthy, high-quality organic plant-based foods to consumers

 To promote sustainable farming practices that prioritize environmentalresponsibility

commitment to quality and sustainability.

 To prioritize quality control and use only the best ingredients in all products

 To build strong relationships with suppliers, retailers, and consumers topromote long-term success

 To create a world where healthy, sustainable food options are readily available

 To be a household name and trusted brand in the organic food industry

 To continue to innovate and expand into new markets while maintaining acommitment to quality and sustainability

2 Company Structure (Departments, Business Functions)

Human Resources department

Research & DevelopmentDepartment

This department will be responsible for managing the entire production process, fromsourcing organic plant-based ingredients to manufacturing and packaging products.The business functions of this department will include:

 Procurement: sourcing organic plant-based ingredients and materials

 Manufacturing and processing: producing high-quality organic plant-basedfood products

 Quality control: ensuring the quality of the products and compliance withorganic certifications

2.2 Supply Chain Department

This department is responsible for managing the entire supply chain, from sourcingraw materials to delivering finished products to customers The department's mainfunction is to optimize the supply chain to reduce costs, improve delivery times, andensure high-quality products Te business functions of the supply chain department inOrganic Plant Farm:

 Procurement: The procurement function involves sourcing raw materials andother inputs required for the production process The supply chain departmentneeds to work with suppliers who share the company's values and commitment

to organic farming practices It is also the responsibility of the department tonegotiate favorable terms with suppliers to ensure the company receives high-quality materials at a fair price

 Production planning: Once the procurement function has sourced the rawmaterials, the production planning function takes over This involves planningand scheduling the production process to ensure that the right products aremanufactured at the right time and in the right quantities The department alsoneeds to ensure that the production process runs smoothly, with no delays ordisruptions

managing the company's inventory levels to ensure that there is no excessinventory or stockouts The department must ensure that there is always enoughinventory to meet customer demand while minimizing storage costs and waste.

 Distribution and logistics: The supply chain department is responsible fordelivering finished products to customers in a timely and cost-effective manner.This function involves managing transportation and logistics, including routeplanning, delivery scheduling, and shipment tracking The department mustensure that products are delivered to customers on time and in good condition

2.3 Sales and Marketing Department

This department will be responsible for promoting and selling Organic Plant Farm'sproducts to retailers and consumers The business functions of this department willinclude:

 Market research: identifying target markets and consumer preferences

 Product development: creating new products that meet consumer needs andpreferences

 Sales: promoting and selling products to retailers and consumers

 Marketing: developing and implementing marketing campaigns to raise brandawareness and drive sales

2.4 Finance and Accounting Department

This department will be responsible for managing the company's financialtransactions, accounting, and budgeting The business functions of this departmentwill include:

 Financial planning: developing and implementing financial strategies to ensurethe long-term success of the company

 Accounting: managing financial transactions and maintaining accurate records

 Budgeting: preparing and managing the company's budget

 Risk management: identifying and mitigating financial risks

This department will be responsible for managing the company's employees andensuring compliance with labor laws and regulations The business functions of thisdepartment will include:

 Recruitment and selection: attracting and hiring qualified candidates

 Training and development: providing training and development opportunities

2.6 Research and Development Department

This department will be responsible for developing new products and improvingexisting ones The business functions of this department will include:

 Product research: researching and developing new organic plant-based products

 Process improvement: improving the production process to increase efficiencyand quality

 Quality assurance: ensuring compliance with organic certifications and qualitycontrol standards

3 SWOT Analysis/ 5 Porters Analysis

reduce environmental pollution and degradation.

 Organic farming can lead to better soil health and reduce the need for syntheticfertilizers and pesticides

 Many governments offer subsidies and incentives for organic farming.Weaknesses:

 Organic farming can be more labor-intensive and require more resourcescompared to conventional farming

 The yield of organic crops can be lower due to the absence of syntheticfertilizers and pesticides, which can lead to higher costs for consumers

 Organic farming methods can be more challenging to implement, particularlyfor large-scale farms

 The cost of organic certification can be high for farmers

 Organic farming faces competition from conventional farming and other forms

of agriculture, particularly in developing countries

 There is potential for fraudulent labeling and misrepresentation of organicproducts, which can erode consumer trust

 The cost of organic products can be a barrier for some consumers

variability in quality and consistency.

5 Porters Analysis

 Threat of new entrants: The organic farming industry has relatively highbarriers to entry due to the cost of land, labor, and equipment required to startand maintain an organic farm The certification process for organic farming isalso costly and time-consuming In addition, established organic farmingcompanies have already established relationships with suppliers and buyers,making it difficult for new entrants to compete As a result, the threat of newentrants in the organic farming industry is relatively low

 Bargaining power of suppliers: The bargaining power of suppliers in theorganic farming industry is moderate Organic farmers rely on suppliers fororganic seeds, fertilizers, and other inputs However, there has been an increase

in the availability of organic inputs in recent years, reducing the bargainingpower of suppliers In addition, organic farmers can choose to grow their owninputs, reducing their reliance on external suppliers

 Bargaining power of buyers: The bargaining power of buyers in the organicfarming industry is high Consumers have many options when it comes topurchasing organic products, and the increasing popularity of organic productshas led to more competition among organic farmers As a result, organicfarmers must compete on price and quality to attract buyers

 Threat of substitutes: The threat of substitutes for organic products is moderate.Consumers can choose to purchase conventionally grown products instead oforganic products, which can be less expensive However, the growingawareness of the health and environmental benefits of organic products has led

to an increase in demand for organic products, reducing the threat ofsubstitutes

 Competitive rivalry: The organic farming industry is highly competitive, with afew large players dominating the market However, there are also many smalland medium-sized organic farming companies that compete for market share

retain customers The high level of competition in the industry can lead to pricewars and reduced profit margins for organic farmers.

4 Business Processes

Order to cash:

Order to cash is a business process that involves several steps, from receiving acustomer order to collecting payment for goods or services delivered By followingthe order to cash process, the organic plant farm can ensure that its customers receivehigh-quality, sustainable products, and that the business runs efficiently and profitably

1 Order entry: A customer places an order for organic plants through thefarm's website, retail store, or phone The customer provides informationsuch as the type and quantity of plants, desired delivery date, and billingand shipping addresses

2 Order validation: The farm validates the order by checking inventoryavailability and ensuring that the requested plants meet the farm'sstandards for organic certification and quality The farm may also validatethe customer's payment method and creditworthiness, especially if it's anew customer

3 Order fulfillment: After the order is validated, the farm staff selects therequested plants from inventory, ensuring that they are healthy and meetthe organic certification standards If any of the requested plants are notavailable, the customer is notified and offered a suitable replacement or arefund The staff then packages the plants and prepares them for shipping

or pickup

4 Order shipment: Depending on the customer's preference, the plants areeither shipped to the customer's specified address using eco-friendlyshipping methods or made available for pickup at the farm The farm mayuse electric delivery vehicles, bicycles, or other sustainable transportationmethods for shipping

generated and sent to the customer The invoice includes details such asthe type and quantity of plants, the price, any applicable taxes or fees, andthe payment terms.

6 Payment collection: The customer pays for the plants using a secureonline payment system, such as a credit card or PayPal Alternatively, ifthe customer chooses to pay upon pickup, the farm staff processes thepayment in person

7 Cash reconciliation: After the payment is received, the farm records thepayment and updates the accounts receivable ledger to reflect theoutstanding balance, if any The farm may also send a receipt orconfirmation to the customer to confirm payment and completion of theorder

Purchase to pay

(P2P) process, also known as Procure to Pay, is a series of steps thatorganizations follow to purchase goods and services from suppliers, starting fromidentifying the need for goods and services to making the final payment to thesupplier By following the purchase to pay process, organizations can ensure that theypurchase goods and services of high quality, at a fair price, and in a sustainable way,while maintaining good relationships with their suppliers and ensuring financialcontrol and compliance

1 Identify the need: The organic plant farm identifies a need to purchasematerials such as seeds, soil, or organic fertilizer to support itsoperations

2 Vendor selection: The farm researches potential vendors and suppliersfor the materials needed Factors such as quality, price, andsustainability are considered during the selection process

3 Purchase requisition: The farm staff creates a purchase requisition,specifying the materials needed, the quantity required, and the desired

for review and approval.

4 Purchase order: Once the purchase requisition is approved, thepurchasing department creates a purchase order, which includes thedetails of the materials needed, the agreed-upon price, and the deliverydate

5 Receipt of goods: When the materials arrive, the farm staff inspectsthem to ensure that they meet the agreed-upon specifications and are ingood condition Any issues or discrepancies are reported to the supplier

6 Invoice verification: After the goods are received, the farm verifies theaccuracy of the supplier's invoice against the purchase order and thereceipt of goods Any discrepancies or errors are addressed andcorrected with the supplier

7 Payment processing: After the invoice is verified, the farm processes thepayment to the supplier according to the agreed-upon terms Thepayment may be made through various methods, such as electronic fundtransfer, check, or credit card

8 Accounts payable: The farm records the payment made and updates theaccounts payable ledger to reflect the outstanding balance, if any

Make to order/make to stock

In this case we choose the Make to Stock process for our company, since Make

to Order is typically used when the product is highly customized or made-to-measure,and the demand is unpredictable Make to Stock, on the other hand, is used when theproduct is standardized, and the demand is predictable In the case of an organic plantfarm like us, Make to Stock is likely to be the preferred process since the demand forfresh organic produce can be forecasted based on seasonal patterns and historical salesdata The farm can produce and stock the products in anticipation of demand, reducinglead times and ensuring quick delivery to customers

historical sales data, and upcoming events to forecast the demand forits products.

2 Produce items

a Production planning: Based on the demand forecast, the farmcreates a production plan that specifies the quantity of eachproduct that needs to be produced, the raw materials required,and the production schedule

b Raw material procurement: The farm orders raw materialssuch as seeds, soil, or organic fertilizer from suppliers based

on the production plan

c Production: The farm produces the products in bulk, using theraw materials and following established production processes

d Quality control: After production, the farm conducts qualitycontrol checks to ensure that the products meet the requiredstandards for quality and safety

3 Hold in inventory: The farm stores the finished products in itswarehouse, ready to be shipped to customers as soon as orders arereceived

4 Order fulfillment: When a customer places an order, the farmretrieves the requested products from its warehouse and ships them

to the customer

5 Shipment and payment:

a Payment: Before the products are shipped, the customer needs

to pay for us The organic plant farm might have various payment options, such as credit cards, PayPal, or bank transfers Once the payment is received and verified, the farm can proceed with the shipment

b Shipment: Our farm ships the products to the customer using the most efficient and cost-effective shipping method The farm also tracks the shipment to ensure that it is delivered to the correct address and arrives on time In the event of any issues or delays with the shipment, the farm provides

and resolve any problems.

5 Problem of your company in IT

We follow Grevendonk, Taliesin, and Brigden (2013) to follow the 8 stepsbelow:

Step 1: Define outcome

How will a better information system benefit our company?

Better indicators for strategic planning

A better information system can significantly benefit a company by providingbetter indicators for strategic planning Let's explore how an improved informationsystem contributes to this factor:

Enhanced Data Collection and Integration: A robust information system

enables efficient and comprehensive data collection from various sources within thecompany It can gather data from departments such as finance, marketing, operations,and human resources, as well as external sources such as market research reports andindustry databases By integrating and consolidating this data, decision-makers have aholistic view of the company's internal and external environment, facilitating theidentification of key strategic factors

Accurate and Timely Data Analysis: With a better information system in place,

data analysis becomes more accurate and timely Advanced analytics tools can processlarge volumes of data quickly and generate actionable insights This allows decision-makers to analyze historical performance, assess current trends, and predict futureoutcomes with greater precision By basing strategic planning on reliable dataanalysis, companies can make more informed decisions and reduce the risk of relying

on assumptions or guesswork

Real-Time Monitoring of Key Performance Indicators (KPIs): An improved

information system enables real-time monitoring of KPIs relevant to strategicplanning Decision-makers can access dashboards or reports that display criticalmetrics, such as financial performance, market share, customer satisfaction, andoperational efficiency By tracking these KPIs, companies can evaluate progress