Page 10 - CIMA OCS Workbook May 2019 - Day 1 Tasks

SUGGESTED SOLUTIONS

Benefits could include Drawbacks could include
Enhanced efficiency and capacity e.g. resulting Initial costs are usually high e.g. costs to design
in labour savings. Labour is currently about 30% and develop system if software is bespoke,
of our total production cost. purchase price of software if not bespoke,
purchase price of hardware
Better quality of information Cost of testing and implementation of the new
system can be high
Better access to information e.g. by means of Training costs, cost of labour time to run the
an Intranet system, cost of service support e.g. IT helpdesk
can be high
Improved sharing of information e.g. through Security problems e.g. risk of unauthorised
the creation of a database access or fraud
Improved communication e.g. through the Failure of the system to meet its objectives
introduction of an email system
Better decision making and customer service Redundant data i.e. the system might produce
a large amount of data which no one uses
Maintenance problems – maintenance may
prove to be more difficult or more expensive
than expected

Given these points, I do recommend the implementation of a new information system. In
particular I believe a unified corporate database will be useful to allow all users to access the
same information, to see an overall picture of performance and it will help inform business
decisions. We would, however, need to manage who has access to what data.

I also believe that computerised inventory management would be beneficial for us at VitaMine, in
terms of keeping track of inventory volume, considering how imperative it is for our just in time
system to work effectively.

Systems implementation

Systems implementation involves a number of activities that takes the system and brings it into
full-scale use. The main steps are as follows:

• Installation of hardware and software
• Testing – this is a critical activity prior to changeover to ensure that it is working correctly
before going live. Ultimate users should be involved in conducting tests.
• Staff training on new system and production of user document
• File conversion to ensure files are in correct format for new system
• Changeover – this is the change from operating the current system to introducing the new
system operationally. There are four approaches to system changeover, and the most
appropriate approach will vary according to circumstances. The methods are direct, parallel,
pilot and phased.
• System evaluation – the system should be reviewed after implementation, and periodically
when in operation, so that any unforeseen problems may be resolved and to confirm that it is
achieving the desired results.

KAPLAN PUBLISHING 63