Contents1.0 Introduction.....................................................................................................................................1

1.1Information Systems and Information Technology Systems...................................................................2

1.2 Swot Analysis of Aalsmeer...............................................................................................................3

2.0 Porter’s Competitive Strategies.......................................................................................................4

2.2 The Value Chain Model....................................................................................................................7

2.3 Analysing the exchange organisation..............................................................................................8

2.4 Industry-level strategy and Information Systems............................................................................8

3.0 Systems Theory and Systems Development....................................................................................9

3.1 The Waterfall Model..........................................................................................................................10

3.2 The SDLC Model.............................................................................................................................11

3.3 The SSADM MODEL.......................................................................................................................13

3.4 Ethics Model.....................................................................................................................................13

3.5 Spiral Model......................................................................................................................................14

3.6 The RAD Model................................................................................................................................15

3.7 Computer Aided Software Engineering (CASE)..............................................................................16

3.8 Prototyping....................................................................................................................................17

4.0 Effectiveness - E-Commerce..........................................................................................................19

5.0 The De Lone and Mc Clean Model.......................................................................................................21

6.0 Conclusion.....................................................................................................................................22

1.0 IntroductionAalsmeer Flower Auction, located in the Netherlands offers globally-producing growers

and universal active wholesalers and exporters a total concept: a central marketplace

for the buying and selling of floricultural products with a range of marketing channels,

facilities for growers, buyers and logistics. The expansion of Aalsmeer Flower Auction

was a result of one main flower exporting country in the world – the Netherlands. Every

phase of the world trade in flowers was managed in the Netherlands, mainly pricing,

packaging distribution and quality control. Change was detected from new countries

including Spain, Israel, and Kenya among others. They began producing flowers

through the Netherlands. This new development made the Aalsmeer board become an

international centre for supply and demand of floricultural products.

E-networks, change in customer needs, mergers and acquisition of buyers and

professional growers forced the board of Aalsmeer to react to these changes to sustain

its business and to connect with suppliers and buyers. With these latest developments

happening, Aalsmeer Flower Auction value chain seemed to be under pressure.

It became necessary to begin a strategic repositioning of the Aalsmeer Flower Auction,

using E-networking and reinventing the value chain to enable strategic change.

In this presentation, the author will attempt to discuss:

1. Analyse Aalsmeer Flower Auction and information requirements of the board and

put forward new IT and Information Systems and strategies to their business

2. Recommend appropriate methods which may be used for developing new

systems which would assist Aalsmeer in dealing with a changing environment

3. The effectiveness of new Information Systems for Aalsmeer Flower Auction and

its users.

Information Systems and Information Technology SystemsInformation Systems and Information Technology are used by most organisations to

carry out their business electronically, accomplishing new levels of efficiency,

competitiveness and profitability. The terms are often used interchangeable, however

they are quite different.

Information Technology is one of the many tools used by managers at different levels to

support tactical and strategic decision making.

Information Systems on the other hand, does not only refer to the technology, but also

how it is applied and managed to contribute to the business. It also helps to reduce the

expenditure by being more efficient to endure and thrive, extend their reach to far-off

locations, offer new products and services, restructure jobs and workflow and

considerably change the way they operate.

1.2 Swot Analysis of AalsmeerThe SWOT Analysis identified the key strengths and weaknesses within the company and

describes the opportunities and threats facing Aalsmeer Flower Auction.

Strengths Very efficient transfer of product from seller to buyers Buyers can directly inspect the product in the auction hall if

they wish The auctions, by centralizing and requiring the product to be

delivered prior to sale, minimizes opportunism Top flower shop in the world

Weaknesses The buyers have to come to the auction halls and sellers have to deliver products to the auction hall

Packaging cost are incurred multiple times – for transport to and from the auction

Auction rules tend to favor the growers

Opportunities New technological opportunities Increase in market share Redefine value chain Strengthen links with wholesalers

Threats Direct selling is seen as a threat to existing growers who are obligated to sell via the auction with higher cost for buyers

Increasing trade outside the auction Increasing internationalization of the organization Loss of sales Threat of becoming non-operational

2.0 Porter’s Competitive StrategiesFor many organisations, the key question is “How can I gain competitive advantage?”

In relation to his work on the five forces model, Porter (1980) proposed three different

competitive strategies in which organizations may be able to adopt one.

1. Overall cost leadership to become the low cost producer

2. Differentiation of your product or service

3. Focus on niche to change the scope of competition by narrowing the market not

well served by your competitors.

Using Porter’s (1990) model of international competitive advantage, Aaslmeer Flower

Auction is analysed. This analysis discloses that the basic issues of production are a

huge deal more important in the evolution of flower export industries. Aalsmeer Flower

Auction is already one of the leading Dutch economies, having 11,000 growers and

5,000 buyers.

This will attempt to:

Bring together international demand with supply from Aalsmeer Flower Auction

Focus on demand instead of supply

Low cost per transaction

2.2 The Value Chain ModelThe value chain model highlights specific activities in the business where competitive

strategies can best be applied and where information systems are most likely to have a

strategic impact (Porter, 1985). It identifies specific leverage points where the firm can

use information technology most effectively to achieve competitive advantage.

This model views the firm as a series or chain of basic activities that add value to the

firm’s products or support activities. In analyzing the case, it was clear that the

support activities of Aalsmeer were all affected by their move to outsource their

information technology to IBM. Porter argues that the ability to perform particular

activities and to manage linkages is a source of competitive advantage

2.3 Analysing the exchange organisation

Due to the convergence of IT and telecommunications, proliferation and availability of

bandwidth, which is Amount of traffic transmitted from the site. The impact of electronic

market is expected to increase rapidly. Their effectiveness is quite dependent on the

make and design.

2.4 Industry-level strategy and Information Systems

Firms together comprise an industry. The key question at this level of analysis is “How

and when we should compete with as oppose to cooperate with others in the

industry?” Whereas most strategic analyses emphasize competition, cooperating with

other firms in the same industry or firms in related industry in certain situations at times

can be very profitable.

One of the principal concepts for analyzing strategy at the industry level is the Porter’s

competitive forces model.

The Company has now reached global Sales status. This means that the quantity of

Customers would have multiplied, considerably. The Company must now keep abreast

with all of the information requirements to manage its financial portfolios, Marketing

Channels and Storage Facilities, thoroughly.

This will/must be done via all outlets available in the Electronic Media. The e-trading

service allows information to move at the click of a button, bringing buyers and sellers of

the world together, instantaneously.

As the IT consultant, it is recommended that the implementation of information systems

would improve communication searches, monitoring and information sorting capabilities,

to reduce transaction costs and all purchasers to take advantage of production

economics available in the markets.

3.0 Systems Theory and Systems DevelopmentSystems Theory Provides a powerful means of analyzing and improving business

processes. It is the study of the behaviour and interactions with and between systems.

Systematic developments are the activities that go into producing an information system

solution to an organizational problem or opportunity. It is a structured kind of problem

solving with distinct activities consisting of system analysis, systems design,

programming, testing, conversion, and production and maintenance.

With the possible implementation of information Systems at Aalsmeer, there are a

number of models that could be looked at in developing new systems for the company

3.1 The Waterfall ModelThe waterfall model outlines the series of steps that should occur when building BIS.

These steps usually occur in a predefine order with a review at the end of each stage

before the next stage has started.

The purpose of the model is to divide the development process up into a series of

manageable parts that relate to each other in an organization way, in which some tasks

will have to be completed before others can commence. The waterfall model is a

simple representation of what actually happens during a systems development [project,

but provides a good framework for introducing information systems development, since

all of the activities that are identified in the model occur in a typical project.

The Waterfall Model

3.2 The SDLC ModelThe SDLC model is an alternative representative of the waterfall model, developed and

launched by the National Computing centre in the UK in 1996. However, in the SDLC

model, recognition is also given to the user in that the build phase should only

commence once user requirements have been determined and the system design

produced. Also, in addition to the life cycle phases, the concepts of project

management and change management have been added to reinforce the notion that

information systems projects do not take place by chance but that they must be

managed carefully.

The Systems Development Life Cycle (SDLC)

The key stages of the SDLC model are:

Stages of The

SDLC

Functions of The Phases of SDLC

Initiation Start up phase of an IS Project, this aims to establish the feasibility of the

project and whether or not it will be successful

Feasibility Done at start of project to ensure it is viable, a feasibility report is also

done to analyze the need for the system and alternatives for acquiring

software

Requirements

Analysis

Defines what the system will do

Systems Design Defines how the will work with key areas of user interface, program

modules, security and database structure and transactions

Build Creation of software involves writing software, constructing and

populating the database and testing by programmers and end-users.

Implementation Transition or change over from old to new system and making sure that

hardware and network infrastructure for a new system are in place

Maintain Ensure functionality of the system after implementation and manage

upgrades

Kill When system becomes obsolete, restart the cycle and create new program

Strengths and weaknesses of SDLC

The system has been well tried and tested and the used documentation standards help

to ensure that the specifications are complete and that the staff is trained to use the

system. Using this methodology also prevents missed cutover dates, unexpectedly high

costs and lower than expected benefits allows its progress to be reviewed.

There are however potential weaknesses of this system. This includes maintenance

workload, application backlog, lack of control inflexibility failure to meet the needs of

management, problems with documentation and maintenance workload.

3.3 The SSADM MODEL

Structured Systems Analysis and Design Method (SSADM); defines “the methods of

analysis and design that should occur in a large scale software development

project. It is used extensively in the UK, particularly in government and public

organizations.” Bocij et al; (2006). This uses methodologies such as feasibility study,

requirements analysis, and review of business options, technical options, logical design

and physical design. However SSADM only covers part of the SDLC with emphasis on

analysis and design. 

3.4 ETHICS MODELThis model is referred to as the Effective, Technical and Human Implementation of

Computer based Systems, proposed by Enid Mumford (1995), This people’s oriented

approach embodies a sound ethical position and encompasses the socio-technical view

that to be effective, the technology must fit closely with the social and organizational

factors in the application domain. This results in an improved quality of working life and

enhances job satisfaction and the users must be a major objective of the systems

design process. The philosophy of ETHICS is one that perceives the development of

computer systems not as a technical issue but as an organizational one which is

concerned with the process of change and hence involves participation.

3.5 SPIRAL MODEL

According to Bocij et al; (2006) the spiral model is an “ iterative systems development

model in which the stages of analysis, design, code and review repeat as new

features for the system are identified.” The four main activities of this model are:

Planning: Setting project objectives, defining alternatives

Risk Analysis: Analysis if alternatives and the identification and solution of risks

Engineering: Equivalent to the build phase of the SDLC with coding and testing

Customer Evaluation: Testing of the product by customers

3.6 THE RAD MODEL PREFERRED METHODOLOGY

Rapid Development Design (RAD) developed by James Martin (1980) is a software

development process that is used to create workable systems in a very short period of

time. RAD uses two techniques: Joint Application Design (JAD) and Joint Requirement

Planning (JRP).

JAD is the main technique in the user design phase, which adopts a top down

approach to user design and is based on the recognition that user requirements are

difficult to understand and define.

JRP identifies the high level requirements of the system at a strategic level. The

participants are senior managers and they need to have a combination of overall

business knowledge and specific knowledge about the requirements of the proposed

system.

RAD can also include the use of visual programming and other tools for building

graphical user interface, iterative prototyping of key systems elements, automation of

programmed code generation and close teamwork among end users and information

systems specialist. This method enables simple systems to be assembled from pre-built

components and key parts of the development can occur simultaneously. Martin (1991)

stated “the RAD methodology is an example of an approach that uses prototyping

as part of the overall methodology as well as Computer Aided Software

Engineering (CASE) tools.”

3.7 Computer Aided Software Engineering (CASE)CASE tools are software that helps the system analyst and designer in the analysis,

design and build phase of a software project. They include:

Code generation tools

Data modeling tools

UML

Refactoring tools

QVT or Model Transformation tools

Configuration management tools including revision control

The construction phase in RAD consists of taking user design through to detailed

design and code generation. This phase is undertakes by an IS professional using a

CASE tool creating a series of prototypes which are reviewed by key users. Once the

design have been agreed, the code can be generated and the system tested and

approved.

The final phase is cutover which involves further testing using realistic data in

operational situations. The users are trained on the system and finally the cutover is

effected by running the old and the new system in parallel until the new system has

proved itself and the old system phased out. RAD develops a time box approach and it

typically recommends implementation of systems in a ninety day cycle.

Advantages of RAD

1. Increased speed of development through methods including rapid

prototyping, virtualization of system related routines, the use of CASE

tools and other techniques.

2. Decreased end-user utility

3. Larger emphasis on simplicity and usability

Disadvantages of RAD

1. Reduces Salability and reduced features when a RAD developed application

starts as a prototype and evolves into a finished application

2. Reduced features occur due to time boxing when features are pushed to later

versions in order to finish a release, in a short period of time design, code

storage, compilers, translation tools and test software

3.8 PrototypingA prototype is a preliminary version of part or a framework of all of an information

system which can be review by end users. Prototyping is an iterative process where

users suggest modifications before further prototypes and the final information systems

are built. This will allow the staff at Aalsmeer to be involved in the development process

which will give users an idea of what the final system looks like. IT will also encourage

active participation among users and producer and will enable a higher output for users.

Aalsmeer Flower auction could then reduce development cost and increase system

development speed.

The protyping process

The writer recommends that the organization use bespoke. This tern employed a

variety of applications to mean an item custom-made to the buyer’s specification. The

application would be bought off the shelf and then modified to suit Aalsmeer’s specific

needs. This is recommended due to the limited time that the organization has: too

much time would be taken if an system is to be built from scratch.

4.0 Effectiveness - E-CommerceSecurity to computerized information systems and safety to its users in any organization

is of vital importance. At Aalsmeer, information systems play a critical role in their

business, that they must take special steps to protect their systems and ensure that

they are accurate, reliable and secure. Disruptions in this service could result in millions

of dollars in losses for the company. Therefore some level of system control, security

and auditing must be in place in order to accomplish information systems success for

the company and its users.

Security data and administrative controls however, require input and oversight from end

users and business managers. Administrative controls would include written policies

and procedures establishing formal standard for information system operations and

responsibilities.

Security of electronic communication is also a major control issue for Aalsmeer. EDI

transactions on the Internet can be looked at, which is relatively secure and reliable.

The heightened vulnerability of automated data has also created great concerns for

builders and users of information systems. These concerns include disaster, security

and administrative error. Firms that function on a day-to-day basis will require

emergency backup facilities. Aalsmeer will need to use uninterruptible power supply

technology or contract with disaster recovery firms for backup for client/server systems

as well as mainframe applications.

Aalsmeer must conduct comprehensive and systematic audits in order to test the

effectiveness of their information systems. . There must also be an understanding of

the operations as well as individual applications to trace the flow of the transactions

through the systems and perform automated audit software.

According to van der Zee and de Jong (1999)”the importance of IT requires

organization to integrate their IT decisions with their common planning and

decision making processes at all levels.” As such the balanced scorecard has been

used as a means of translating organizational strategies into objectives and then

providing the metrics to monitor the execution of the strategy. In the case of Aalsmeer

Flower Auction, this will provide a framework for the entire business strategy process,

but will also measure performance drivers such as investment in technology and

employee training.

5.1 The De Lone and Mc Clean ModelThe De Lone and Mc Clean Model (1992) speak of Information System Success and

the reality that surrounds this concept. For IS success, the model identifies system

quality, information quality, use, user satisfaction, individual and organizational impact.

The model proposes that system and information jointly affect the use and user

satisfaction thereby affecting organizational impact and success.

De Lone and Mc Clean model of IS success

6.0 ConclusionIn order to create a controlled environment in Aalsmeer Flower auction, special

methods, policies and procedures must be incorporated into the integral design and

implementation of the information systems with special attention to controls throughout

the systems life span.

These controls can be both general and applications. General controls apply to all

computerized applications and consist of a combination of hardware, software, and

manual procedures. Application controls apply to payroll or other processing.

The writer believes that information technologies significantly lowers coordination costs

and enhance communications abilities. These changes allow transacting parties to

separate in space and time the informational and physical components of the trading

process.

Thriving in today's business environment has become more challenging than ever. At

Aalsmeer, time is of the essence. This is why using our IT outsourcing is a great idea for

grounding Aalsmeer’s business in any environment.