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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
50
STRATEGIC INFORMATION SYSTEM AND ORGANIZATIONAL
STRUCTURE A CASE ON MEENA BAZAR SUPER SHOP IN BANGLADESH
Md. Rubel1*
, Md. Abul Kashem2
, Nigar Sultana3
1
Student, Department of Management Information System (MIS),
University of Dhaka, Bangladesh.
2
Associate Professor, Department of Management Information System (MIS),
University of Dhaka, Bangladesh
3
Assistant Professor, Department of Marketing,
Jahangirnagar University, Savar, Dhaka, Bangladesh
ABSTRACT
At present super shop business is very common scenario in Bangladesh. In super shop there
are various types of technologies is used for running their business process. At the beginning of the
information technology uses they face various problems but now they are using technology easily
and cheaply because of the technological development. In this research I try to find out their
operational process, organizational structure and strategic information system. How they are
enjoying benefits from the strategic information system. By using strategic information system they
achieve customer satisfaction. Strategic information system helps to display discipline and saves the
customer’s valuable time. Strategic information system helps the super shop to remain competitive in
the market. It makes the super shop’s operation process easier. The customer can get various type of
product so they need not to go several markets for buying their needed product. It is a complete
package for the customers for shopping. Super shop also provide quality product at reasonable price
for retaining their customers. In case of strategic information system they are facing security
problem. Investment cost of strategic information system is more than traditional system, so some
small super shop are not using strategic information system yet. But the employee of the super shop
should ensure the security of the customer data. The super shop authority should be used the updated
version of the technology and security system.
Keywords: Strategic Information System, Operations Support System, Management Support
Systems, Information Systems (IS), Information Technologies (IT) and Electronic Point of Sale
(EPOS).
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
Volume 5, Issue 4, April (2014), pp. 50-65
© IAEME: www.iaeme.com/ijm.asp
Journal Impact Factor (2014): 7.2230 (Calculated by GISI)
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© I A E M E
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
51
INTRODUCTION
Meena Bazar is a developed super shop in Dhaka city. It is a retailer of the daily goods
includes all the fast moving consumer goods like household, groceries and cosmetics etc. it offer
dean and friendly environment with a wide range of quality product at affordable prices and it has
become the primary channel for distribution of goods and other household effects on the consumers.
Meena Bazar is one of the largest retail supermarket chains in Bangladesh with International
standards, opened in 2002 and operates in Dhaka, Chittagong and Khulna division. Meena Bazar
outlets are carrying almost 12,000-15,000 products for sale & providing convenient shopping
experience, easy parking and friendly customer service for its customers. Meena Bazar is a
subsidiary of Gemcon Food & Agricultural Products Ltd, producing organic products, dairy items,
prepared food & herbal products. Meena Bazar is not only catering such items to its shoppers, but
also educating them about their benefits. In order to offer the best possible price to its valuable
customers, Meena Bazar procure their produced items directly from the farmers, cutting the
middlemen, while ensuring high quality, freshness and continuous availability. Meena Bazar is also
known as one of the trustworthy food suppliers of the nation, hence it is committed to deliver its’
best of the very best by expanding its sphere all over Bangladesh.
It has its own product categories like sweets, confectionary items, herbal beauty products, tea,
etc. It has Fun-Zone in its outlet for children. In 2010 it started flexi load and bill pay services of
Grameen Phone at all its outlets for the convenience of the customers which is unique in Bangladesh.
It provides many promotional offers to its customers in different festival seasons (Eid, New Year,
etc.) like other superstores. It has planned to open around sixty more outlets in the next four to five
years across the country.
OBJECTIVE OF THE STUDY
Broader objective
The main objective of the research is to find out the Strategic Information System of Meena Bazar.
Specific Objectives
For attaining the broader objective, other supportive objectives will be:
To know the business process of Meena Bazar
To know the organizational structure of the Meena Bazar.
To know strategic information system of Meena Bazar.
To know their security system and recommend.
Statement of the Problem
Meena Bazar super shop has been suffering from some problems regarding their strategic
information system. Such as
Slow checkout services with error.
Vast amount of goods need to store in the inventory that increase where house cost.
It can’t control stock efficiently.
Customer services are more time consuming.
For the above reasons, I have decided to analyze the strategic information system of Meena
Bazar super shop. The purpose of the present study is to analyze the factors behind the problem and
suggest better way and means to tackle the problems.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
52
LITERATURE REVIEW
An information system that enables business is considered a strategic information system. A
strategic information system is defined as an information system that creates or enhances the
company's competitive advantage or changes the industry structure by fundamentally changing how
business is conducted. "Strategic information systems are conventional informational systems used
in innovative ways. For the most part, they are transaction based, simple, evolve over time, and solve
problems." (Chalero, 2000) “Strategic information systems change the goals, operations, products,
services, or environmental relationships of organizations to help them gain an edge over
competitors” Source: Kenneth c Laudon, Jane P. Laudon “Managing the digital firm” 8th
Edition.
The potential usefulness of different kinds of Information System (IS) for environmental
management is well recognized (Diez et al, 2009). Perhaps we can say advances in information
provision have led organizations to attempt to develop IS or information technology (IT) strategies
which interrelate with their business strategies and which together support corporate missions
(Rogerson et al, 1994). The three general types of IS that are developed and in general use are
financial systems, operational systems, and strategic systems. Well-directed financial systems and
operational systems may well become the strategic systems for a particular organization.
Relationship between IS functions and corporate strategy was not of much interest to top
management of firms in recent years and so many problems because of failure in achieving strategies
and that disconnecting for organizations go to existence. Modern organizations are increasingly seen
as knowledge-based enterprises in which proactive knowledge management is important for
competitiveness (Holsapple et al, 2000). One of the hot research topics in new decades is research
about strategic IS and its aspects and Project management IS has changed considerably over the last
decade (Ahlemann, 2009). One of the major factors in competitive environment is knowledge
management and companies for achieving the competitive advantages should concentrate in its IS. IS
has a vital role in business operation and financial and non-financial aspect such as decision making
as a big role of management. ISs were thought to be synonymous with corporate data processing and
treated as some back-room operation in support of day-to-day mundane tasks (Rockart, 1979).
Nevertheless, in the 80’s and 90’s, there has been a growing realization of the need to make
ISs of strategic importance to an organization. Strategic SISs are systems that support or shape a
business unit’s competitive strategy (Callon, 1996, and Neumann, 1994). Strategic ISs are touted
throughout the trade press and the academic literature as the way to achieve the greatest benefits
from an investment in new IT (Bajjaly, 1998). An SIS is characterized by its ability to significantly
change the manner in which business is conducted, in order to give the firm strategic advantage
(Turban et al, 2006). In literature we have many definitions for strategic IS such as: "The IS to
support or change enterprise's strategy" (Wiseman, 1985). But clear definition is "a system that helps
companies change or otherwise alter their business strategy and/or structure." It is typically utilized
to streamline and quicken the reaction time to environmental changes and aid it in achieving a
competitive advantage.
According to turban et al (2006), because the Internet has changed the nature of doing
business, it has also changed the nature of competition. Porter himself argues that the Internet
doesn’t change the model, but that it is only another tool to be used in seeking competitive
advantage. In his words, “The Internet per se will rarely be a competitive advantage. Many of the
companies that succeed will be the ones that use the Internet as a complement to traditional ways of
competing, not those that set their Internet initiatives apart from their established operations” (Porter,
2001, p. 64).
Ross et al. (1996) suggest the three IT assets— people, technology, and “shared” risk and
responsibility—as a way to develop sustainable competitiveness. Porter (1996) expanded his classic
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
53
competitive forces model to include strategies such as growth and internal efficiency that facilitate
sustainability.
A sustainable strategic advantage is a strategic advantage that can be maintained for some
length of time. During the period from 1970 through the late 1990s, businesses implemented
numerous successful IT-based strategic systems that lasted many years. These SISs enabled the
companies that owned them to enjoy a competitive advantage for several years before competitors
imitated their systems (Turban et al, 2006)
Turban et al, (2006) suggest some way for accomplish competitive sustainability with the help of IT.
i. Using inward systems that are not visible to competitors.
ii. If a company uses outward systems to sustain competitive advantage, one way to protect
those systems is to patent them.
iii. Developing a comprehensive, innovative, and expensive system that is very difficult to
duplicate.
iv. Using modified approach.
Strategic Information System is a system that helps companies alters their business strategy
or structure. It is used to hasten the reaction time to environmental changes and aid the company in
achieving a competitive advantage over its competitors. They help in producing low cost quality
products. (Kasat & Joshi, 2007) (Chou)
Strategic information systems (IS) planning is a form of strategic planning intended to align
an organization's information systems with its critical strategic goals and supporting mission specific
functions. "The objective of strategic information systems planning is to define the explicit
connection between an organization's business plan and its systems plan to provide better support of
the organization's goals and objectives and closer management control of critical information
systems (Schlögl, 2009). The basic purpose is to link the business and information strategies.
Establishing a link between fundamental business needs and the supporting information systems
requires an explicit understanding of those needs. The consensus of many companies having strategic
IS planning activities is that planning, set in a strategic framework, will allow decisions to be made
today which will better prepare them for the future. Strategic IS planning must therefore be an
integral part of an organization's general planning process and be performed within this strategic
framework ( Robertson, 2009)
METHODOLOGY
Data Collection Technique
In order to collect the data a questionnaire which is a combination of both open ended and
close ended has been used. Group discussion and personal interview also used to collect the data. In
this study following data collection methods is used.
Questionnaire
Unstructured and open-ended questionnaires (please see appendix) were asked both employee
and the customer of the super shop to find out the efficiency and effectiveness of the strategic
information system.
Observation
For collecting information about strategic information system I visited both the Agora and
Meena Bazar super shop of Mirpur Branch.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
54
Primary
The primary information is gathered through informal interviews of the employees working
over there under management level, their salesman who are directly involved with selling product
and also observation while physically visiting the office premises.
Face-to-face conversation with the respective officers and staffs of the Branch.
Informal conversation with the clients.
Practical work exposures from the different desks of the departments of the Branch covered.
Relevant file study as provided by the officers concerned.
Secondary
Secondary sources had also used to collect information. Secondary sources include:
Futures and articles published in news Report and other journals
Visiting websites of various super shop
Key features of the Strategic Information Systems are the following:
Decision support systems that enable to develop a strategic approach to align Information
Systems (IS) or Information Technologies (IT) with an organization's business strategies
Primarily Enterprise resource planning solutions that integrate/link the business processes to
meet the enterprise objectives for the optimization of the enterprise resources
Database systems with the "data mining" capabilities to make the best use of available
corporate information for marketing, production, promotion and innovation. The SIS systems
also facilitate identification of the data collection strategies to help optimize database
marketing opportunities.
The real-time information Systems that intend to maintain a rapid-response and the quality
indicators.
1. Operations Support System
The role of a business firm’s OSS is to efficiently process business transactions, control
industrial processes, support enterprise communication and collaborations; update corporate
databases. Transactions processing systems record and process data, that result from business
transactions. Transactions can be processed in two ways namely Batch processing, where
transactions data are accumulated over a period of time and processed periodically, and Real time
processing where data is processed immediately after a transaction occurs. Process control systems
monitor and control physical processes. Enterprise collaborations systems enhance team and
workgroup communications and productivity (Kasat & Joshi, 2007).
2. Management Support Systems
When information systems apply focus on providing information and support for effective
decision making by managers they are called management support systems. There are three major
types of information systems that support a variety of decision making responsibilities.
A. Management information systems
B. Decision support systems
C. Executive information system.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
55
Strategic Information System of Meena Bazar
IT Infrastructure
Information technology (IT) is not developed in the super shop. They use just few computers
for data entry and eye camera for observation the store to ensure security.
Strategic Information System
There are some strategies of information system is explained that should be implemented to
improve the business process of Meena Bazar superstore and expend their business.
Business Organization
Information system can be used widely in the super shop for distribution of goods. Computer
system are used in a variety of ways in the large super shop , from stock control to maintaining
temperatures in fridges and freezers for better organization of their business. In this section we will
look in more detail at these systems in Meena Bazar super shop.
The super shop would use several computers which are located in a room known as the
system office and from the super shop own local area network. These computers are used to control
the stock and are connected to the checkouts. These are the branch computers. The computers are
multi-functional, and each can access the data, which gives the management a number of access
points.
Admin and stock control staff now have access to hand held computers, SEC (Self Edge
Computers). These are used for price changes, creating stock pictures (information on stock totals)
and for forecasting deliveries. Like many companies, they have experienced with giving customers
hand held scanners to enter their own shopping. The experiment has been discontinued due to huge
stock losses, staff called them “Shop and Rob” rather than “Shop and Go”. The company is currently
looking at developing a better system to get round these problems.
Business Process
Meena Bazar use Electronic Point of Sales (EPOS) till to develop strategic information
system in their business process. Each product to be sold must have an identifying code number
which is different from that of every other product. Different sizes of the same product even need
different code numbers. These code numbers are printed onto the labels or packaging of the product
in the form of bars codes.
Figure no: 01
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
56
Barcodes are made up of a set of black lines and white spaces. Look at the bar code. You can
see that it is split into two halves, and each half is contained within two thin black stripes.
Figure no: 02
The diagram shows the pattern of lines for each digit on the bar code. Notice that the pattern
for a digit on the right hand half of a bar code is the opposite of the one on the left hand half.
Many bar codes today use the European Article Number or EAN. This is a thirteen digit
number which can be used to uniquely identify a product. Using the bar code shown as an example:
a) The first 2 digits represent the country from which the company producing the product
comes.
b) The next five digits represent the company which produced the product.
c) The following five digits represent the product.
d) The last number is a check digit. This is used to make sure the bar code has been read
correctly. `
Swiped through the card reader which reads the information (such as the account number and
date of expiry) held on the magnetic strip on the back of the card. The latest in store development has
been the arrival of smart card readers at the EPOS. A debit card with a smart chip is replaced in the
reader and the customer then enters their PIN to authorize the money being taken out of their
account. This is much more secure than signing a docket as it can’t be forged.
This information is then added to the details of how much the customer has spent and, after checking
that sufficient funds are present, used to transfer this amount from the customers bank account to that
of the super shop. This process is called Electronic Funds Transfer and works even if the super shops
bank is different from that of the customer.
Pricing
Most of the time it is seen that the price of the product is sent to the EPOS terminal when the
product’s bar code is read. In the past, every single item had a price sticker attached and when a price
change was required, new labels had to be placed over the old ones. This was a time consuming task,
as every single item on the shelves of the product requiring the price change required a new level.
Mistakes were sometimes made and customers over or under charged, now a days there are no price
levels attached to products, neither does the packaging of the product show the price. The only
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
57
reference to the price of a product is contained on a level attached to the shelf where that product is
situated. These shelf labels are produced by the branch computer and a reprinted out in different
sizes according to the size of the shelf for a particular product.
Special offer such as multiply – “Buy two and get one free” or link save – “Buy one product and
save 50% on another” could not be offered before the introduction of information technology. As bar
codes are scanned, the branch computer looks for items which are on special offer and discounts the
prices where necessary.
Stock Control
There are, in fact, six branch computers linked to the EPOS terminals at the checkouts. They
all record information about items sold and provide back up for each other. If only one computer was
used and it broke down, the super shop could not function. These branch computers are linked via
the satellite links to a large main computer housed at the super shop’s head office elsewhere in the
country. All branches of this super shop are also linked in this way to the main computer and this is
an example of an extranet.
After the super shop has closed at the end of the day, the following happens:
The branch computer sends the details of every individual sale to the main computer at the
head office.
Using this information, the main computer system updates its record of the number in stock
of every item in the store. The SEC allows manager to get a real time stock picture and
allows a manager to escalate stock deliveries from nothing to 72 hours to 48 hours. It also
gives a better picture of stock losses and improves the services the shop can give its
customers.
Using a forecast of sales along with other factors (such as the weather and the time of the
year etc.) the system automatically orders the correct amount of stock required by the store
for the next available delivery 48 or 72 hours ahead.
The main computer also transmits these orders to computers in the distribution centers (large
warehouses storing products ready for delivery to stores) across the satellite link.
These distribution centers then deliver the required stock to the store immediately.
Price changes and prices of new products, special offers etc. are sent back to branch computer
in the super shop.
Technology
To implement Electronic Point of Sale (EPOS) till, the super shop needs some technology.
This EPOS till comprises;
A set of scales
A printer
A credit / debit card reader
A till drawer
A keyboard
A digital display
A scanner which reads bar codes
Each till also has its own base to which all of the above is attached. It is the base unit which is
connected by cables to the branch in the super shop’s system office.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
58
Cost Analysis
The super shops need several computers with EPOS which are located in a room known as
the system office and from the super shop own Local Area Network. The total cost of developing
own Local Area Network by implementing EPOS system in the super store would be about Tk
5200000.
Benefits
Some of the major benefits of using information technology in super shops can be broken
down into two sections, the benefits to the customer and the benefits to the super shop and its
management. It must be remembered that changes and improvements come about over a period of
time, for instance, while the introduction of information technology may save the super shop chain
money eventually, it requires a good deal of investment, both in terms of resources and training,
initially and throughout its development.
To the customer
Special offers.
Benefits to the super shop passed on in the way of lower prices or increased customer
services.
Various methods of payment.
Chilled or frozen food kept at the correct temperature.
Faster and more efficient checkout services.
Itemized till receipts.
Products more tailored to their needs.
Fresher goods due to low stock levels held by super shops.
To the super shop and its management
Ability to monitor the performance of checkout staff.
Shelf pricing more cost effective than labels on products.
Ability to use electronic funds transfer improves cash flow.
Effective management of chilled and frozen goods.
Efficient stock control, less chance of goods being out of stock.
More efficient checkout, less chance of errors by staff.
Ability to use sales forecasts and profile, leading to more efficient use of shelf space.
Little warehouse space required in each super shop due to distribution system.
Challenges of Implementation
Meena Bazar had to face some difficulties at different stages of implementation. People who
were more familiar with the traditional system of retail business management, but it would be mostly
technology adverse and showed disbelief about automation. Many products would be already
ordered from suppliers, many verbally, even before the consumption of the solution and therefore
there were problems with initial understanding of orders versus suppliers. Most of the customer of
our target market is not familiar with the system, they cannot accept positively. Another challenge is
the maintenance cost of the system would be very high.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
59
Analysis
Survey results of employee & Customer regarding strategic information system.
Figure no: 03
In my survey 83% employee said that super shop business must need to use strategic
information system and 17% employee opposed against it. So it can be said that strategic information
system is a part and parcel of super shop business.
32%
58%
6% 3% 1%
0
0
0 0
0
0
0 0
Strongly agree Agree Neutral Disagree Strongly disagree
Customer satisfaction
Figure no: 04
Strategic information system helps to achieve customer satisfaction. In this statement 32%
employee strongly agree, 58% employee agree, 6% employee neutral, 3% employee disagree, and
1% employee strongly disagree. So it can be said that SIS helps to achieve customer satisfaction.
Figure no: 05
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
60
Strategic information system helps to remain competitive in the market. In this statement 25%
employee strongly agree, 43% employee agree, 17% employee neutral, 11% employee disagree, and
4% employee strongly disagree. So it can be said that SIS helps to remain competitive in the market
place.
Figure no: 06
SIS needs huge investment cost. In this statement 9% employee strongly agree, 18%
employee agree, 27% employee neutral, 37% employee disagree, and 9% employee strongly
disagree. So it can be said that SIS does not need huge initial investment.
12%
28% 31%
19%
10%
Strongly Agree Agree Neutral Disagree Strongly Disagree
Training cost
Figure no: 07
Strategic information system incurs training cost. In this statement 12% employee strongly
agree, 28% employee agree, 31% employee neutral, 19% employee disagree, and 10% employee
strongly disagree. So it can be said that SIS incurs some training cost.
22% 26% 32%
13% 7%
Strongly Agree Agree Neutral Disagree Strongly Disagree
Technology
Figure no: 08
9%
18%
27%
37%
9%
Investment cost
Strongly Agree Agree Neutral Disagree Strongly Disagree
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
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The technologies required for strategic information system are not available. In this statement
22% employee strongly agree, 26% employee agree, 32% employee neutral, 13% employee disagree,
and 7% employee strongly disagree. So it can be said that SIS technology now a days more or less
available.
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
29%
46%
15% 7% 3%
Security
Figure no: 09
Security is a great problem for implementing strategic information system. In this statement
29% employee strongly agree, 46% employee agree, 15% employee neutral, 7% employee disagree,
and 3% employee strongly disagree. So it can be said that Security is a great problem for
implementing strategic information system.
Findings
After conducting the research, we have got some important points about using strategic
information system. In any organization; if SIS is used, they will get some superior benefits over
their competitors. The findings are as follows:
Business Processes
Investments in information technology can help make a firm’s operational processes
substantially more efficient, and its managerial processes much more effective. By making such
improvements to its business processes a firm may be able to:
i. Dramatically cut costs
ii. Improve the quality and customer service
iii. Develop innovative products for new markets
Promoting Business Innovation
Investments in information systems technology can result in the development of new products,
services, and processes. This can:
i. Create new business opportunities
ii. Enable a firm to enter new markets
iii. Enable a firm to enter into new market segments of existing markets.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
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Lock In Customers & Suppliers
Investments in information technology can also allow a business to lock in customers and
suppliers (and lock out competitors) by building valuable new relationships with them. This can be
accomplished by:
i. Deters both customers and suppliers from abandoning a firm for its competitors or
intimidating a firm into accepting less profitable relationships.
ii. Offer better-quality service to customers allows a company to differentiate themselves from
their competitors.
iii. Create inter organizational information systems in which telecommunications networks
electronically link the terminals and computers of businesses with their customers and
suppliers, resulting in new business alliances and partnerships.
Creating Switching Costs
A major emphasis in strategic information systems is to build switching costs into the
relationships between a firm and its customers or suppliers. That is, investments in information
systems technology can make customers or suppliers dependent on the continued use of innovative,
mutually beneficial inter organizational information systems. Then, they become reluctant to pay the
cost in time, money, effort, and inconvenience that it would take to change to a firm’s competitors.
Example: APOLLO (USA) airline reservation system, and GEMNI (CAN) airline reservation system
Raising Barriers to Entry
Investment in information technologies that increase operational efficiency can erect barriers
to entry for new players in the industry, and can discourage firms already in the market. This can be
accomplished by:
i. Increasing the amount of investment or the complexity of the technology required to compete
in a market segment.
ii. Discourage firms already in the industry and deter external firms from entering the industry.
Leveraging a Strategic IT Platform
Information technology enables a firm to build a strategic IT platform that allows it to take
advantage of strategic opportunities. Typically, this means acquiring hardware and software,
developing telecommunications networks, hiring information system specialists, and training end
users. A firm can then leverage investment in information technology by developing new products
and services.
Developing a Strategic Information Base
Information systems allow a firm to develop a strategic information base that can provide
information to support the firm's competitive strategies. A firms’ database is considered a strategic
resource which is used to support strategic planning, marketing, and other strategic initiatives. These
resources are being used by firms in such areas as: Strategic planning, Marketing campaigns,
Erecting barriers to entry for competitors, finding better ways to lock in customers and suppliers.
Breaking Time Barriers
Information technology is used to shorten the intervals between the various critical steps in a
business process. Telecommunications is a lot faster than most other forms of communications, thus,
it provides information to remote locations immediately after it is requested.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
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Breaking Geographic Barriers
Telecommunications networks enable you to communicate with people almost anywhere in
the world. Telecommunications and computing technologies make it possible to distribute key
business activities to where they are needed, where they are best performed, or where they best
support the competitive advantage of a business.
Breaking Cost Barriers
Computers and telecommunications can often significantly reduce the cost of business
operations when compared with other means of information processing and communications. For
example, they can reduce costs in such areas as production, inventory, distribution, or
communications. Information technologies have also helped companies cut labor costs, minimize
inventory levels, reduce the number of distribution centers, and lower communications costs.
The New Economies of Information
The internetworking of businesses and consumers via the Internet, intranets, and extranets is
breaking the cost barriers raised by traditional economic trade-offs in information content and
delivery
Breaking Structural Barriers
Computers and telecommunications networks can help a business develop strategic
relationships by establishing new electronic linkages with customers, suppliers, and other business
entities. For example, telecommunications networks can support innovations in the delivery of
services, increase the scope and penetration of markets, and create strategic alliances with customers,
suppliers, and even a firm’s competitors.
Recommendation
Customer Management is a priority area in the strategic model. The focus on Customer
Management is fundamental also to the other priority areas.
The Mission, Goals, SWOTs (Strengths, Weaknesses, Opportunities and Threats), Strategies
and KPIs for Customer Management should be defined sufficient to be used for strategic
modeling of Customer Management.
As Financial Management activities are prerequisites for Portfolio Management, some
strategic modeling of Financial Management will need to be completed before starting to do
strategic modeling in the Portfolio Management model view.
Documented strategic business plans for Financial Management Plans are needed for
strategic modeling in the Financial Management area.
When strategic modeling for part of Financial Management has been completed, strategic
modeling in the Portfolio Management model view can commence.
Strategic business plans for Portfolio Management should be documented for use as input to
strategic modeling.
Strategic business planning and strategic modeling for these model views should be
conducted with three project teams working initially together, and then progressively moving
to concurrent strategic modeling.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
64
CONCLUSION
Meena Bazar super shop would be more developed by implementing information technology.
It has planned to extend their business by building some other store in various locations in the
country and start internet shopping which allow customer to shop over the internet, this has allowed
them access to different markets i.e. every store show should be technologically advanced to ensure
quality and fast service for the people who do not have transport to get to the store. Now a days most
of the super shop use technology in their way of operation. As a result people are getting better
service and quality product. By using strategic information system super shop business people are
able to capture the customer satisfaction and remain competitive in the market place. At present
people want to save their time, and super shop business able to meet this customer demand. Super
shop provides various items in one place. People just go, pick up their preferred product and paid for
it in quick time by using EPOS (Electronic Point of Sale).
By using strategic information system super shop can alter their business strategy easily.
Strategic information system is a coordinated information system by using it is very easy to
determine the stock level and price of the product.
REFERENCES
[1] Henderson, J. and Venkatraman, N. Strategic Alignment: Leveraging Information
Technology for Transforming Organizations. IBM Systems Journal 32, 1 (1993), 4-16.
[2] Earl, M. Experiences in Strategic Information Systems Planning. MIS Quarterly, 17, 1
(1993), 1-24.
[3] Galliers, R. IT Strategies: Beyond Competitive Advantage. Journal of Strategic Information
Systems 2, 4 (1993), 283-291.
[4] Booch, G., Rumbaugh, J., and Jacobson, I. The Unified Modeling Language User Guide,
Addison-Wesley, Inc., 1999.
[5] Goodhue, D., Kirsch, L., Quillard, J., and Wybo, M.Strategic Data Planning: Lessons from
the Field, MIS Quarterly 16, 2 (1992), 11-32.
[6] Hevner, A. and Mills, H. Box-Structured Methods for Systems Development with Objects.
IBM Systems Journal 32, 2(1993), 232-251.
[7] Hevner, A. and Mills, H. Box Structured Requirements Determination Methods. Decision
Support Systems 13, 3/4,(March 1995), 223-239.
[8] King, W. Strategic Planning for Management Information Systems. MIS Quarterly 2, 1
(March 1978), 27-37.
[9] Lederer, A. and Salmela, H. toward a Theory of Strategic Information Systems Planning.
Journal of Strategic Information Systems 5, 3 (1996), 237-253.
[10] Lederer, A. and Sethi, V. Key Prescriptions for Strategic Information Systems Planning.
Journal of Management Information Systems 13, 1 (1996), 35-62.
[11] Linger, R. Clean room Process Model. IEEE Software 11, 2 (March 1994), 50-58.
[12] Linger, R., Mills, H., and Witt, B. Structured Programming: Theory and Practice, Addison-
Wesley, Inc., 1979.
[13] Martin, J. and Leben, J. Strategic Information Planning Methodologies, Prentice-Hall, Inc.,
1989.
[14] Mills, H., Linger, R., and Hevner, A. Box-Structured Information Systems. IBM Systems
Journal 26, 4 (1987), 395-413.
[15] Mills, H. Stepwise Refinement and Verification in Box- Structured Systems. IEEE Computer
21, 6 (1988), 23-36.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME
65
[16] Niederman, F., Brancheau, J., and Wetherbe, J. Information Systems Management Issues for
the 1990s. MIS Quarterly 15, 4(1991), 475-500.
[17] Porter, M. and Millar, V. How Information Gives You Competitive Advantage. Harvard
Business Review 66, 4 (July-August 1985), 149-160.
[18] Premkumar, G. and King, W. An Empirical Assessment of Information Systems Planning and
the Role of Information Systems in Organizations. Journal of Management Information
Systems 9, 2 (1992), 99-125.
[19] Premkumar, G. and King, W. Organizational Characteristics and Information Systems
Planning: An Empirical Study. Information Systems Research 5, 2 (1994), 75-109.
[20] Raghunathan, T. and Raghunathan, B. Adaptation of a Planning System Success Model to
Information Systems Planning, Information Systems Research 5, 3 (1994), 326-340.
[21] Nandini Milind Deshpande, “Correlation of Information Technology Trends with Strategic
Management”, International Journal of Management (IJM), Volume 1, Issue 2, 2010,
pp. 81 - 88, ISSN Print: 0976-6502, ISSN Online: 0976-6510.
[22] Liane Mahlmann Kipper, Elpídio Oscar Benitez Nara, João Carlos Furtado, Julio Siluk,
Magali Carolina Ellwanger and Bruna Bueno Mariani, “Management Processes for the
Redesign of Strategic Planning”, International Journal of Management (IJM), Volume 4,
Issue 6, 2013, pp. 198 - 208, ISSN Print: 0976-6502, ISSN Online: 0976-6510.
[23] Dr. Sharad Raghuvansh, “Identified Practice Based on Information System for Achieving
Objective in Individuals’ Life & Business Success”, International Journal of Management
(IJM), Volume 4, Issue 2, 2013, pp. 195 - 223, ISSN Print: 0976-6502, ISSN Online:
0976-6510.

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  • 1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 50 STRATEGIC INFORMATION SYSTEM AND ORGANIZATIONAL STRUCTURE A CASE ON MEENA BAZAR SUPER SHOP IN BANGLADESH Md. Rubel1* , Md. Abul Kashem2 , Nigar Sultana3 1 Student, Department of Management Information System (MIS), University of Dhaka, Bangladesh. 2 Associate Professor, Department of Management Information System (MIS), University of Dhaka, Bangladesh 3 Assistant Professor, Department of Marketing, Jahangirnagar University, Savar, Dhaka, Bangladesh ABSTRACT At present super shop business is very common scenario in Bangladesh. In super shop there are various types of technologies is used for running their business process. At the beginning of the information technology uses they face various problems but now they are using technology easily and cheaply because of the technological development. In this research I try to find out their operational process, organizational structure and strategic information system. How they are enjoying benefits from the strategic information system. By using strategic information system they achieve customer satisfaction. Strategic information system helps to display discipline and saves the customer’s valuable time. Strategic information system helps the super shop to remain competitive in the market. It makes the super shop’s operation process easier. The customer can get various type of product so they need not to go several markets for buying their needed product. It is a complete package for the customers for shopping. Super shop also provide quality product at reasonable price for retaining their customers. In case of strategic information system they are facing security problem. Investment cost of strategic information system is more than traditional system, so some small super shop are not using strategic information system yet. But the employee of the super shop should ensure the security of the customer data. The super shop authority should be used the updated version of the technology and security system. Keywords: Strategic Information System, Operations Support System, Management Support Systems, Information Systems (IS), Information Technologies (IT) and Electronic Point of Sale (EPOS). INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME: www.iaeme.com/ijm.asp Journal Impact Factor (2014): 7.2230 (Calculated by GISI) www.jifactor.com IJM © I A E M E
  • 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 51 INTRODUCTION Meena Bazar is a developed super shop in Dhaka city. It is a retailer of the daily goods includes all the fast moving consumer goods like household, groceries and cosmetics etc. it offer dean and friendly environment with a wide range of quality product at affordable prices and it has become the primary channel for distribution of goods and other household effects on the consumers. Meena Bazar is one of the largest retail supermarket chains in Bangladesh with International standards, opened in 2002 and operates in Dhaka, Chittagong and Khulna division. Meena Bazar outlets are carrying almost 12,000-15,000 products for sale & providing convenient shopping experience, easy parking and friendly customer service for its customers. Meena Bazar is a subsidiary of Gemcon Food & Agricultural Products Ltd, producing organic products, dairy items, prepared food & herbal products. Meena Bazar is not only catering such items to its shoppers, but also educating them about their benefits. In order to offer the best possible price to its valuable customers, Meena Bazar procure their produced items directly from the farmers, cutting the middlemen, while ensuring high quality, freshness and continuous availability. Meena Bazar is also known as one of the trustworthy food suppliers of the nation, hence it is committed to deliver its’ best of the very best by expanding its sphere all over Bangladesh. It has its own product categories like sweets, confectionary items, herbal beauty products, tea, etc. It has Fun-Zone in its outlet for children. In 2010 it started flexi load and bill pay services of Grameen Phone at all its outlets for the convenience of the customers which is unique in Bangladesh. It provides many promotional offers to its customers in different festival seasons (Eid, New Year, etc.) like other superstores. It has planned to open around sixty more outlets in the next four to five years across the country. OBJECTIVE OF THE STUDY Broader objective The main objective of the research is to find out the Strategic Information System of Meena Bazar. Specific Objectives For attaining the broader objective, other supportive objectives will be: To know the business process of Meena Bazar To know the organizational structure of the Meena Bazar. To know strategic information system of Meena Bazar. To know their security system and recommend. Statement of the Problem Meena Bazar super shop has been suffering from some problems regarding their strategic information system. Such as Slow checkout services with error. Vast amount of goods need to store in the inventory that increase where house cost. It can’t control stock efficiently. Customer services are more time consuming. For the above reasons, I have decided to analyze the strategic information system of Meena Bazar super shop. The purpose of the present study is to analyze the factors behind the problem and suggest better way and means to tackle the problems.
  • 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 52 LITERATURE REVIEW An information system that enables business is considered a strategic information system. A strategic information system is defined as an information system that creates or enhances the company's competitive advantage or changes the industry structure by fundamentally changing how business is conducted. "Strategic information systems are conventional informational systems used in innovative ways. For the most part, they are transaction based, simple, evolve over time, and solve problems." (Chalero, 2000) “Strategic information systems change the goals, operations, products, services, or environmental relationships of organizations to help them gain an edge over competitors” Source: Kenneth c Laudon, Jane P. Laudon “Managing the digital firm” 8th Edition. The potential usefulness of different kinds of Information System (IS) for environmental management is well recognized (Diez et al, 2009). Perhaps we can say advances in information provision have led organizations to attempt to develop IS or information technology (IT) strategies which interrelate with their business strategies and which together support corporate missions (Rogerson et al, 1994). The three general types of IS that are developed and in general use are financial systems, operational systems, and strategic systems. Well-directed financial systems and operational systems may well become the strategic systems for a particular organization. Relationship between IS functions and corporate strategy was not of much interest to top management of firms in recent years and so many problems because of failure in achieving strategies and that disconnecting for organizations go to existence. Modern organizations are increasingly seen as knowledge-based enterprises in which proactive knowledge management is important for competitiveness (Holsapple et al, 2000). One of the hot research topics in new decades is research about strategic IS and its aspects and Project management IS has changed considerably over the last decade (Ahlemann, 2009). One of the major factors in competitive environment is knowledge management and companies for achieving the competitive advantages should concentrate in its IS. IS has a vital role in business operation and financial and non-financial aspect such as decision making as a big role of management. ISs were thought to be synonymous with corporate data processing and treated as some back-room operation in support of day-to-day mundane tasks (Rockart, 1979). Nevertheless, in the 80’s and 90’s, there has been a growing realization of the need to make ISs of strategic importance to an organization. Strategic SISs are systems that support or shape a business unit’s competitive strategy (Callon, 1996, and Neumann, 1994). Strategic ISs are touted throughout the trade press and the academic literature as the way to achieve the greatest benefits from an investment in new IT (Bajjaly, 1998). An SIS is characterized by its ability to significantly change the manner in which business is conducted, in order to give the firm strategic advantage (Turban et al, 2006). In literature we have many definitions for strategic IS such as: "The IS to support or change enterprise's strategy" (Wiseman, 1985). But clear definition is "a system that helps companies change or otherwise alter their business strategy and/or structure." It is typically utilized to streamline and quicken the reaction time to environmental changes and aid it in achieving a competitive advantage. According to turban et al (2006), because the Internet has changed the nature of doing business, it has also changed the nature of competition. Porter himself argues that the Internet doesn’t change the model, but that it is only another tool to be used in seeking competitive advantage. In his words, “The Internet per se will rarely be a competitive advantage. Many of the companies that succeed will be the ones that use the Internet as a complement to traditional ways of competing, not those that set their Internet initiatives apart from their established operations” (Porter, 2001, p. 64). Ross et al. (1996) suggest the three IT assets— people, technology, and “shared” risk and responsibility—as a way to develop sustainable competitiveness. Porter (1996) expanded his classic
  • 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 53 competitive forces model to include strategies such as growth and internal efficiency that facilitate sustainability. A sustainable strategic advantage is a strategic advantage that can be maintained for some length of time. During the period from 1970 through the late 1990s, businesses implemented numerous successful IT-based strategic systems that lasted many years. These SISs enabled the companies that owned them to enjoy a competitive advantage for several years before competitors imitated their systems (Turban et al, 2006) Turban et al, (2006) suggest some way for accomplish competitive sustainability with the help of IT. i. Using inward systems that are not visible to competitors. ii. If a company uses outward systems to sustain competitive advantage, one way to protect those systems is to patent them. iii. Developing a comprehensive, innovative, and expensive system that is very difficult to duplicate. iv. Using modified approach. Strategic Information System is a system that helps companies alters their business strategy or structure. It is used to hasten the reaction time to environmental changes and aid the company in achieving a competitive advantage over its competitors. They help in producing low cost quality products. (Kasat & Joshi, 2007) (Chou) Strategic information systems (IS) planning is a form of strategic planning intended to align an organization's information systems with its critical strategic goals and supporting mission specific functions. "The objective of strategic information systems planning is to define the explicit connection between an organization's business plan and its systems plan to provide better support of the organization's goals and objectives and closer management control of critical information systems (Schlögl, 2009). The basic purpose is to link the business and information strategies. Establishing a link between fundamental business needs and the supporting information systems requires an explicit understanding of those needs. The consensus of many companies having strategic IS planning activities is that planning, set in a strategic framework, will allow decisions to be made today which will better prepare them for the future. Strategic IS planning must therefore be an integral part of an organization's general planning process and be performed within this strategic framework ( Robertson, 2009) METHODOLOGY Data Collection Technique In order to collect the data a questionnaire which is a combination of both open ended and close ended has been used. Group discussion and personal interview also used to collect the data. In this study following data collection methods is used. Questionnaire Unstructured and open-ended questionnaires (please see appendix) were asked both employee and the customer of the super shop to find out the efficiency and effectiveness of the strategic information system. Observation For collecting information about strategic information system I visited both the Agora and Meena Bazar super shop of Mirpur Branch.
  • 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 54 Primary The primary information is gathered through informal interviews of the employees working over there under management level, their salesman who are directly involved with selling product and also observation while physically visiting the office premises. Face-to-face conversation with the respective officers and staffs of the Branch. Informal conversation with the clients. Practical work exposures from the different desks of the departments of the Branch covered. Relevant file study as provided by the officers concerned. Secondary Secondary sources had also used to collect information. Secondary sources include: Futures and articles published in news Report and other journals Visiting websites of various super shop Key features of the Strategic Information Systems are the following: Decision support systems that enable to develop a strategic approach to align Information Systems (IS) or Information Technologies (IT) with an organization's business strategies Primarily Enterprise resource planning solutions that integrate/link the business processes to meet the enterprise objectives for the optimization of the enterprise resources Database systems with the "data mining" capabilities to make the best use of available corporate information for marketing, production, promotion and innovation. The SIS systems also facilitate identification of the data collection strategies to help optimize database marketing opportunities. The real-time information Systems that intend to maintain a rapid-response and the quality indicators. 1. Operations Support System The role of a business firm’s OSS is to efficiently process business transactions, control industrial processes, support enterprise communication and collaborations; update corporate databases. Transactions processing systems record and process data, that result from business transactions. Transactions can be processed in two ways namely Batch processing, where transactions data are accumulated over a period of time and processed periodically, and Real time processing where data is processed immediately after a transaction occurs. Process control systems monitor and control physical processes. Enterprise collaborations systems enhance team and workgroup communications and productivity (Kasat & Joshi, 2007). 2. Management Support Systems When information systems apply focus on providing information and support for effective decision making by managers they are called management support systems. There are three major types of information systems that support a variety of decision making responsibilities. A. Management information systems B. Decision support systems C. Executive information system.
  • 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 55 Strategic Information System of Meena Bazar IT Infrastructure Information technology (IT) is not developed in the super shop. They use just few computers for data entry and eye camera for observation the store to ensure security. Strategic Information System There are some strategies of information system is explained that should be implemented to improve the business process of Meena Bazar superstore and expend their business. Business Organization Information system can be used widely in the super shop for distribution of goods. Computer system are used in a variety of ways in the large super shop , from stock control to maintaining temperatures in fridges and freezers for better organization of their business. In this section we will look in more detail at these systems in Meena Bazar super shop. The super shop would use several computers which are located in a room known as the system office and from the super shop own local area network. These computers are used to control the stock and are connected to the checkouts. These are the branch computers. The computers are multi-functional, and each can access the data, which gives the management a number of access points. Admin and stock control staff now have access to hand held computers, SEC (Self Edge Computers). These are used for price changes, creating stock pictures (information on stock totals) and for forecasting deliveries. Like many companies, they have experienced with giving customers hand held scanners to enter their own shopping. The experiment has been discontinued due to huge stock losses, staff called them “Shop and Rob” rather than “Shop and Go”. The company is currently looking at developing a better system to get round these problems. Business Process Meena Bazar use Electronic Point of Sales (EPOS) till to develop strategic information system in their business process. Each product to be sold must have an identifying code number which is different from that of every other product. Different sizes of the same product even need different code numbers. These code numbers are printed onto the labels or packaging of the product in the form of bars codes. Figure no: 01
  • 7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 56 Barcodes are made up of a set of black lines and white spaces. Look at the bar code. You can see that it is split into two halves, and each half is contained within two thin black stripes. Figure no: 02 The diagram shows the pattern of lines for each digit on the bar code. Notice that the pattern for a digit on the right hand half of a bar code is the opposite of the one on the left hand half. Many bar codes today use the European Article Number or EAN. This is a thirteen digit number which can be used to uniquely identify a product. Using the bar code shown as an example: a) The first 2 digits represent the country from which the company producing the product comes. b) The next five digits represent the company which produced the product. c) The following five digits represent the product. d) The last number is a check digit. This is used to make sure the bar code has been read correctly. ` Swiped through the card reader which reads the information (such as the account number and date of expiry) held on the magnetic strip on the back of the card. The latest in store development has been the arrival of smart card readers at the EPOS. A debit card with a smart chip is replaced in the reader and the customer then enters their PIN to authorize the money being taken out of their account. This is much more secure than signing a docket as it can’t be forged. This information is then added to the details of how much the customer has spent and, after checking that sufficient funds are present, used to transfer this amount from the customers bank account to that of the super shop. This process is called Electronic Funds Transfer and works even if the super shops bank is different from that of the customer. Pricing Most of the time it is seen that the price of the product is sent to the EPOS terminal when the product’s bar code is read. In the past, every single item had a price sticker attached and when a price change was required, new labels had to be placed over the old ones. This was a time consuming task, as every single item on the shelves of the product requiring the price change required a new level. Mistakes were sometimes made and customers over or under charged, now a days there are no price levels attached to products, neither does the packaging of the product show the price. The only
  • 8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 57 reference to the price of a product is contained on a level attached to the shelf where that product is situated. These shelf labels are produced by the branch computer and a reprinted out in different sizes according to the size of the shelf for a particular product. Special offer such as multiply – “Buy two and get one free” or link save – “Buy one product and save 50% on another” could not be offered before the introduction of information technology. As bar codes are scanned, the branch computer looks for items which are on special offer and discounts the prices where necessary. Stock Control There are, in fact, six branch computers linked to the EPOS terminals at the checkouts. They all record information about items sold and provide back up for each other. If only one computer was used and it broke down, the super shop could not function. These branch computers are linked via the satellite links to a large main computer housed at the super shop’s head office elsewhere in the country. All branches of this super shop are also linked in this way to the main computer and this is an example of an extranet. After the super shop has closed at the end of the day, the following happens: The branch computer sends the details of every individual sale to the main computer at the head office. Using this information, the main computer system updates its record of the number in stock of every item in the store. The SEC allows manager to get a real time stock picture and allows a manager to escalate stock deliveries from nothing to 72 hours to 48 hours. It also gives a better picture of stock losses and improves the services the shop can give its customers. Using a forecast of sales along with other factors (such as the weather and the time of the year etc.) the system automatically orders the correct amount of stock required by the store for the next available delivery 48 or 72 hours ahead. The main computer also transmits these orders to computers in the distribution centers (large warehouses storing products ready for delivery to stores) across the satellite link. These distribution centers then deliver the required stock to the store immediately. Price changes and prices of new products, special offers etc. are sent back to branch computer in the super shop. Technology To implement Electronic Point of Sale (EPOS) till, the super shop needs some technology. This EPOS till comprises; A set of scales A printer A credit / debit card reader A till drawer A keyboard A digital display A scanner which reads bar codes Each till also has its own base to which all of the above is attached. It is the base unit which is connected by cables to the branch in the super shop’s system office.
  • 9. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 58 Cost Analysis The super shops need several computers with EPOS which are located in a room known as the system office and from the super shop own Local Area Network. The total cost of developing own Local Area Network by implementing EPOS system in the super store would be about Tk 5200000. Benefits Some of the major benefits of using information technology in super shops can be broken down into two sections, the benefits to the customer and the benefits to the super shop and its management. It must be remembered that changes and improvements come about over a period of time, for instance, while the introduction of information technology may save the super shop chain money eventually, it requires a good deal of investment, both in terms of resources and training, initially and throughout its development. To the customer Special offers. Benefits to the super shop passed on in the way of lower prices or increased customer services. Various methods of payment. Chilled or frozen food kept at the correct temperature. Faster and more efficient checkout services. Itemized till receipts. Products more tailored to their needs. Fresher goods due to low stock levels held by super shops. To the super shop and its management Ability to monitor the performance of checkout staff. Shelf pricing more cost effective than labels on products. Ability to use electronic funds transfer improves cash flow. Effective management of chilled and frozen goods. Efficient stock control, less chance of goods being out of stock. More efficient checkout, less chance of errors by staff. Ability to use sales forecasts and profile, leading to more efficient use of shelf space. Little warehouse space required in each super shop due to distribution system. Challenges of Implementation Meena Bazar had to face some difficulties at different stages of implementation. People who were more familiar with the traditional system of retail business management, but it would be mostly technology adverse and showed disbelief about automation. Many products would be already ordered from suppliers, many verbally, even before the consumption of the solution and therefore there were problems with initial understanding of orders versus suppliers. Most of the customer of our target market is not familiar with the system, they cannot accept positively. Another challenge is the maintenance cost of the system would be very high.
  • 10. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 59 Analysis Survey results of employee & Customer regarding strategic information system. Figure no: 03 In my survey 83% employee said that super shop business must need to use strategic information system and 17% employee opposed against it. So it can be said that strategic information system is a part and parcel of super shop business. 32% 58% 6% 3% 1% 0 0 0 0 0 0 0 0 Strongly agree Agree Neutral Disagree Strongly disagree Customer satisfaction Figure no: 04 Strategic information system helps to achieve customer satisfaction. In this statement 32% employee strongly agree, 58% employee agree, 6% employee neutral, 3% employee disagree, and 1% employee strongly disagree. So it can be said that SIS helps to achieve customer satisfaction. Figure no: 05
  • 11. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 60 Strategic information system helps to remain competitive in the market. In this statement 25% employee strongly agree, 43% employee agree, 17% employee neutral, 11% employee disagree, and 4% employee strongly disagree. So it can be said that SIS helps to remain competitive in the market place. Figure no: 06 SIS needs huge investment cost. In this statement 9% employee strongly agree, 18% employee agree, 27% employee neutral, 37% employee disagree, and 9% employee strongly disagree. So it can be said that SIS does not need huge initial investment. 12% 28% 31% 19% 10% Strongly Agree Agree Neutral Disagree Strongly Disagree Training cost Figure no: 07 Strategic information system incurs training cost. In this statement 12% employee strongly agree, 28% employee agree, 31% employee neutral, 19% employee disagree, and 10% employee strongly disagree. So it can be said that SIS incurs some training cost. 22% 26% 32% 13% 7% Strongly Agree Agree Neutral Disagree Strongly Disagree Technology Figure no: 08 9% 18% 27% 37% 9% Investment cost Strongly Agree Agree Neutral Disagree Strongly Disagree
  • 12. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 61 The technologies required for strategic information system are not available. In this statement 22% employee strongly agree, 26% employee agree, 32% employee neutral, 13% employee disagree, and 7% employee strongly disagree. So it can be said that SIS technology now a days more or less available. Strongly Agree Agree Neutral Disagree Strongly Disagree 29% 46% 15% 7% 3% Security Figure no: 09 Security is a great problem for implementing strategic information system. In this statement 29% employee strongly agree, 46% employee agree, 15% employee neutral, 7% employee disagree, and 3% employee strongly disagree. So it can be said that Security is a great problem for implementing strategic information system. Findings After conducting the research, we have got some important points about using strategic information system. In any organization; if SIS is used, they will get some superior benefits over their competitors. The findings are as follows: Business Processes Investments in information technology can help make a firm’s operational processes substantially more efficient, and its managerial processes much more effective. By making such improvements to its business processes a firm may be able to: i. Dramatically cut costs ii. Improve the quality and customer service iii. Develop innovative products for new markets Promoting Business Innovation Investments in information systems technology can result in the development of new products, services, and processes. This can: i. Create new business opportunities ii. Enable a firm to enter new markets iii. Enable a firm to enter into new market segments of existing markets.
  • 13. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 62 Lock In Customers & Suppliers Investments in information technology can also allow a business to lock in customers and suppliers (and lock out competitors) by building valuable new relationships with them. This can be accomplished by: i. Deters both customers and suppliers from abandoning a firm for its competitors or intimidating a firm into accepting less profitable relationships. ii. Offer better-quality service to customers allows a company to differentiate themselves from their competitors. iii. Create inter organizational information systems in which telecommunications networks electronically link the terminals and computers of businesses with their customers and suppliers, resulting in new business alliances and partnerships. Creating Switching Costs A major emphasis in strategic information systems is to build switching costs into the relationships between a firm and its customers or suppliers. That is, investments in information systems technology can make customers or suppliers dependent on the continued use of innovative, mutually beneficial inter organizational information systems. Then, they become reluctant to pay the cost in time, money, effort, and inconvenience that it would take to change to a firm’s competitors. Example: APOLLO (USA) airline reservation system, and GEMNI (CAN) airline reservation system Raising Barriers to Entry Investment in information technologies that increase operational efficiency can erect barriers to entry for new players in the industry, and can discourage firms already in the market. This can be accomplished by: i. Increasing the amount of investment or the complexity of the technology required to compete in a market segment. ii. Discourage firms already in the industry and deter external firms from entering the industry. Leveraging a Strategic IT Platform Information technology enables a firm to build a strategic IT platform that allows it to take advantage of strategic opportunities. Typically, this means acquiring hardware and software, developing telecommunications networks, hiring information system specialists, and training end users. A firm can then leverage investment in information technology by developing new products and services. Developing a Strategic Information Base Information systems allow a firm to develop a strategic information base that can provide information to support the firm's competitive strategies. A firms’ database is considered a strategic resource which is used to support strategic planning, marketing, and other strategic initiatives. These resources are being used by firms in such areas as: Strategic planning, Marketing campaigns, Erecting barriers to entry for competitors, finding better ways to lock in customers and suppliers. Breaking Time Barriers Information technology is used to shorten the intervals between the various critical steps in a business process. Telecommunications is a lot faster than most other forms of communications, thus, it provides information to remote locations immediately after it is requested.
  • 14. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 63 Breaking Geographic Barriers Telecommunications networks enable you to communicate with people almost anywhere in the world. Telecommunications and computing technologies make it possible to distribute key business activities to where they are needed, where they are best performed, or where they best support the competitive advantage of a business. Breaking Cost Barriers Computers and telecommunications can often significantly reduce the cost of business operations when compared with other means of information processing and communications. For example, they can reduce costs in such areas as production, inventory, distribution, or communications. Information technologies have also helped companies cut labor costs, minimize inventory levels, reduce the number of distribution centers, and lower communications costs. The New Economies of Information The internetworking of businesses and consumers via the Internet, intranets, and extranets is breaking the cost barriers raised by traditional economic trade-offs in information content and delivery Breaking Structural Barriers Computers and telecommunications networks can help a business develop strategic relationships by establishing new electronic linkages with customers, suppliers, and other business entities. For example, telecommunications networks can support innovations in the delivery of services, increase the scope and penetration of markets, and create strategic alliances with customers, suppliers, and even a firm’s competitors. Recommendation Customer Management is a priority area in the strategic model. The focus on Customer Management is fundamental also to the other priority areas. The Mission, Goals, SWOTs (Strengths, Weaknesses, Opportunities and Threats), Strategies and KPIs for Customer Management should be defined sufficient to be used for strategic modeling of Customer Management. As Financial Management activities are prerequisites for Portfolio Management, some strategic modeling of Financial Management will need to be completed before starting to do strategic modeling in the Portfolio Management model view. Documented strategic business plans for Financial Management Plans are needed for strategic modeling in the Financial Management area. When strategic modeling for part of Financial Management has been completed, strategic modeling in the Portfolio Management model view can commence. Strategic business plans for Portfolio Management should be documented for use as input to strategic modeling. Strategic business planning and strategic modeling for these model views should be conducted with three project teams working initially together, and then progressively moving to concurrent strategic modeling.
  • 15. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 64 CONCLUSION Meena Bazar super shop would be more developed by implementing information technology. It has planned to extend their business by building some other store in various locations in the country and start internet shopping which allow customer to shop over the internet, this has allowed them access to different markets i.e. every store show should be technologically advanced to ensure quality and fast service for the people who do not have transport to get to the store. Now a days most of the super shop use technology in their way of operation. As a result people are getting better service and quality product. By using strategic information system super shop business people are able to capture the customer satisfaction and remain competitive in the market place. At present people want to save their time, and super shop business able to meet this customer demand. Super shop provides various items in one place. People just go, pick up their preferred product and paid for it in quick time by using EPOS (Electronic Point of Sale). By using strategic information system super shop can alter their business strategy easily. Strategic information system is a coordinated information system by using it is very easy to determine the stock level and price of the product. REFERENCES [1] Henderson, J. and Venkatraman, N. Strategic Alignment: Leveraging Information Technology for Transforming Organizations. IBM Systems Journal 32, 1 (1993), 4-16. [2] Earl, M. Experiences in Strategic Information Systems Planning. MIS Quarterly, 17, 1 (1993), 1-24. [3] Galliers, R. IT Strategies: Beyond Competitive Advantage. Journal of Strategic Information Systems 2, 4 (1993), 283-291. [4] Booch, G., Rumbaugh, J., and Jacobson, I. The Unified Modeling Language User Guide, Addison-Wesley, Inc., 1999. [5] Goodhue, D., Kirsch, L., Quillard, J., and Wybo, M.Strategic Data Planning: Lessons from the Field, MIS Quarterly 16, 2 (1992), 11-32. [6] Hevner, A. and Mills, H. Box-Structured Methods for Systems Development with Objects. IBM Systems Journal 32, 2(1993), 232-251. [7] Hevner, A. and Mills, H. Box Structured Requirements Determination Methods. Decision Support Systems 13, 3/4,(March 1995), 223-239. [8] King, W. Strategic Planning for Management Information Systems. MIS Quarterly 2, 1 (March 1978), 27-37. [9] Lederer, A. and Salmela, H. toward a Theory of Strategic Information Systems Planning. Journal of Strategic Information Systems 5, 3 (1996), 237-253. [10] Lederer, A. and Sethi, V. Key Prescriptions for Strategic Information Systems Planning. Journal of Management Information Systems 13, 1 (1996), 35-62. [11] Linger, R. Clean room Process Model. IEEE Software 11, 2 (March 1994), 50-58. [12] Linger, R., Mills, H., and Witt, B. Structured Programming: Theory and Practice, Addison- Wesley, Inc., 1979. [13] Martin, J. and Leben, J. Strategic Information Planning Methodologies, Prentice-Hall, Inc., 1989. [14] Mills, H., Linger, R., and Hevner, A. Box-Structured Information Systems. IBM Systems Journal 26, 4 (1987), 395-413. [15] Mills, H. Stepwise Refinement and Verification in Box- Structured Systems. IEEE Computer 21, 6 (1988), 23-36.
  • 16. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 50-65 © IAEME 65 [16] Niederman, F., Brancheau, J., and Wetherbe, J. Information Systems Management Issues for the 1990s. MIS Quarterly 15, 4(1991), 475-500. [17] Porter, M. and Millar, V. How Information Gives You Competitive Advantage. Harvard Business Review 66, 4 (July-August 1985), 149-160. [18] Premkumar, G. and King, W. An Empirical Assessment of Information Systems Planning and the Role of Information Systems in Organizations. Journal of Management Information Systems 9, 2 (1992), 99-125. [19] Premkumar, G. and King, W. Organizational Characteristics and Information Systems Planning: An Empirical Study. Information Systems Research 5, 2 (1994), 75-109. [20] Raghunathan, T. and Raghunathan, B. Adaptation of a Planning System Success Model to Information Systems Planning, Information Systems Research 5, 3 (1994), 326-340. [21] Nandini Milind Deshpande, “Correlation of Information Technology Trends with Strategic Management”, International Journal of Management (IJM), Volume 1, Issue 2, 2010, pp. 81 - 88, ISSN Print: 0976-6502, ISSN Online: 0976-6510. [22] Liane Mahlmann Kipper, Elpídio Oscar Benitez Nara, João Carlos Furtado, Julio Siluk, Magali Carolina Ellwanger and Bruna Bueno Mariani, “Management Processes for the Redesign of Strategic Planning”, International Journal of Management (IJM), Volume 4, Issue 6, 2013, pp. 198 - 208, ISSN Print: 0976-6502, ISSN Online: 0976-6510. [23] Dr. Sharad Raghuvansh, “Identified Practice Based on Information System for Achieving Objective in Individuals’ Life & Business Success”, International Journal of Management (IJM), Volume 4, Issue 2, 2013, pp. 195 - 223, ISSN Print: 0976-6502, ISSN Online: 0976-6510.