Information system has to work in conjunction with all systems

An organization runs with the help of its subsystems. One department can make the whole organizations. These are different subsystems, components or departments, which constitute the organization. So do in the case of XYZ export firm. If we want to define it can be in three words, input process and output.

Input

Process

Output

Input for the XYZ would be of two types, for the products it produces and the products, which the other firms provide it for the export. There would be raw material purchase, production, produced goods, inventory management for the goods, matching production process with the quality required by the supplies etc, etc. How all these things could be kept in record and updated. Today is the world of high competition and change. How a XYZ would respond to the instant changes in the environment in the market, in the changes in legal laws and requirements of the Pakistani legal system and Saudi legal system. It is information system, which integrate with all other systems and coordinate with then to keep them updated and instantly responding to the changes in the external system. The database is the primary means of integration of the various subsystems. A data item that is stored or updated to one subsystem is then available to the other subsystems. E.g. sales and inventory information used by the marketing of the XYZ would be supplied through the logistics subsystem, the same data would be used by the manufacturing subsystem of XYZ for the production planning and resource scheduling.

Top management
I. Processing system Accounting system Production system Marketing system Logistics system Personal system

Database management system or MIS Database

All these system integrate through the help of the information system. These systems are further composed of subsystems, which can be: Marketing system: Sales forecasting system Sales planning Customer and sales analysis Manufacturing system: Production planning Scheduling Cost control analysis Logistics system: Planning and control of purchasing Inventories Distribution Personnel system: Planning personnel requirements Performance analysis Salary administration Finance and accounting system: Financial analysis Cost analysis Capital requirements Income measurement Information processing: IS planning Cost effectiveness analysis Top management: Strategic planning Resource allocation How these systems would work? Theses systems would share the information at every point in time through IS and would make the working relationship with the other systems and subsystem. One order fulfillment can be like this:

The systems that would be there are: Order management system: Order from customer Entered into the databases Inventory management system Check the already inventory If exists than sent to order fulfillment If doesnt ordered to production system

Sent to inventory mgt system

Suppliers of specific products Contact to the finished products suppliers Details of products and date of delivery

Information system

Production system Check the raw material If present than produce If no than contact to suppliers

Send to inventory mgt system

Transportation system Delivery of product Receipts

With reference to xyz firm write a detail discussion on Enterprise system and system for supply-chain management
Enterprise system:
Enterprise system is also known as enterprise resource planning system. I t collects data from various key business processes and store the data in a central repository. This information can be shared across the firm and different parts of business can work in collaboration with each other.

The basic function of Enterprise system is to speed up the communication of information through out the organization making it easier for business to coordinate the daily operations. Any part of the organization that require any information necessary for them have an access to it.

For XYZ firm:

XYZ whose basic objective is to provide quality food to Saudi Arabia need to have an enterprise system for the better coordination among its departments. Its Sales and Marketing department, accounting and finance department, customer relations management department, purchase department, production department, Human resource department and others need to work in collaboration to achieve the common goal. For example: When any order will be placed by a customer to XYZ, the data will automatically flow to all the concerned parts of the organization. The order placement will make them start working on the order and fulfill it as soon as possible through effective information flow. The Enterprise system will thus help XYZ in: Providing them flexibility to respond quickly. Having proper amount of inventory (neither having excess nor the shortage to avoid any unnecessary cost). More accurate order fulfillment. Improving management decision making (by having access to all detailed information and data).

Supply Chain Management system:

It deals with managing the entire supply chain. It is a much broader concept and requires looking beyond the boundaries of the organization. The supply chain includes the suppliers, the middle men in providing logistics (in bond and out bond logistics), the manufacturers, the whole sellers, the retailers, the customers. Here is a need to manage the entire supply chain by coordinating these independent firms to work for the benefits of all the organizations involved.

For XYZ firm:

XYZ needs a supply chain management system as it is working with a large number of suppliers who are providing variety of stuff to them, they may also have third party logistics service providers, the may have whole sellers in Saudi Arabia, retailers and of course the final customers . They need to develop a very effective supply chain management system for working on the core idea of Network Coordination where we suggest following important practices for XYZ to develop a successful Value Chain: Developing and managing relationships across supply chains Interactivity across supply chain Life time customer value(the worth of different customers for the organization) Customization (in terms of providing the highly demanded items)

How XYZ can survive in Saudi Financial System

Trade Situation
Saudi Arabia became the 149th member of the World Trade Organization (WTO) on December 11, 2005. Trade and foreign investment will benefit from the commitments made by the Kingdom as part of its accession agreement. Saudi Arabia agreed to reduce trade restrictions and improve trade and investment avenues in an effort to diversify its economy. The Saudi government is committed to reducing tariffs, eliminating import prohibitions in the manufacturing and agricultural sectors, and opening additional markets in telecommunications, energy related services, insurance, and other financial services. The Kingdom is a member of the Gulf Cooperation Council (GCC), which includes Kuwait, Qatar, Bahrain, the United Arab Emirates and Oman. Membership confers special trade and investment privileges to member countries. Manufactured food products produced in any of these countries are imported into Saudi Arabia duty free. In January 2003, the GCC implemented its long awaited customs union. According to the agreement, the six member countries agreed to implement a five percent across-the-board duty rate on most imported foodstuffs that enter member countries from non-GCC suppliers. Saudi Arabia also is a member of the Arab League, which recently agreed to negotiate an Arab free trade zone.

Agricultural Trade Situation

Saudi Arabia is the largest importer of agricultural, fish and forestry products among GCC countries. The potential for agricultural production in Saudi Arabia is limited due

to the lack of arable land (less than 2 percent) and water. Food imports are projected to grow in tandem with the population. In 2005, the countrys total agricultural imports were estimated at more than $6 billion. High-value products account for 50 percent of total import value. Imports of intermediate agricultural products were estimated at about one billion dollars. Total U.S. agricultural exports to Saudi Arabia in 2005 reached $380 million, with exports of consumer-oriented food products valued at a record $131 million. Recent data provided by major foodstuff importers indicate a continued significant growth in U.S. consumeroriented foodstuff imports thus far this year. According to U.S. census data for JanuaryJuly 2006, high value product imports from the United States increased 20 percent over the same period a year earlier. A strong euro relative to the U.S. dollar is a factor supporting import demand for U.S. food products. Most food product imports are subject to a 5 percent ad valorem duty. Corn, soybean meal, barley, crude/semi-refined corn oil and rice enter the Kingdom duty free. Saudi buying and eating habits have changed significantly since the introduction of Western-style supermarkets and restaurants in the late 1970s. Built initially to cater to Western expatriates, modern Western-style Class A supermarkets are popular in Saudi Arabia and continue to expand in major urban areas of the Kingdom: Riyadh (Central Province), Qaseem, Jeddah, Mecca and Medina (Western Province), and Dammam, Al Khobar, and Dhahran (Eastern Province). The increased number of supermarket outlets has made it feasible for many chains to import a portion of their stock directly from the United States. Supermarket chains and other retailers, however, depend primarily on local importers for sourcing, merchandising, and inventory control.

Competition
The continued expansion of U.S. foodstuff exports to the Kingdom is threatened by a growing competition from both locally-produced and imported food products from the EU, and nearby Arab and Asian countries. The number of food processing companies in the Kingdom continues to grow. Most food processors rely extensively, if not entirely, on imported food ingredients. Saudi consumers are discriminating and enjoy new food products. With a young and growing population, U.S. food and agricultural exports to the Kingdom will continue to expand in the coming years. Import demand for institutional-size food products by the catering sector is being driven by the large number of expatriate third country nationals working in Saudi Arabia and the increasing number of foreign pilgrims visiting the two holy cities (Mecca and Madina). More than eight million expatriate workers reside in the Kingdom, most of whom are from the Sub Continent of Asia (India, Pakistan, Bangladesh) and the Philippines. The number of foreign pilgrims traveling to Saudi Arabia for Haj and Umra rituals is estimated at about five million per year.

Dining at fast food restaurants is popular among Saudi families and expatriate workers. American fast food chains such as KFC, Burger King, and McDonalds together with local chains such as Herfy import at least part of their food needs from the United States. Large catering companies, especially those serving Western expatriates, also buy a portion of their requirements directly from the United States.

Products in the Market with Good Sales Potential

Most Saudi importers buy for mass distribution and employ consolidators. Consolidators source products from wholesalers, apply bilingual stickers, and arrange mixed containers for shipment to Saudi Arabia. Consolidators often recommend new-to-market products to Saudi Arabian importers. Given the affinity for new products by both Saudis and expatriates living in Saudi Arabia, Saudi importers and supermarket executives are constantly searching for new food items to introduce. Popular product categories include prepared fruits and vegetables, beverages, poultry parts, snack foods, candy, honey, sauces, mayonnaise, cereals, bakery products, condiments, jams and jellies, peanut butter, salad dressings, gravies, desserts, sunflower seeds, chips, dried beans, peas, soups, seasonings, and almonds. Demand for dietary and health foods is increasing in the Kingdom as Saudis become increasingly health conscious. Saudi Arabias population has one of the highest rates of diabetes in the world and obesity is widespread.

Banned Products
For religious reasons, Saudi Arabia bans imports of alcoholic beverages, live swine, pork, and foodstuff ingredients or additives that contain pork products, including pork fat, lard and gelatin. Other banned products include donkey and mule meat, frog legs, poppy seeds, hemp seeds, hops and swine leather. A summary of Opportunities and Constraints in the Saudi market for imported food stuffs: Opportunities The Saudi population is growing at about 3 percent annually and is expected to nearly double in 20 years from its current level of 27 million to more than 40 million. The potential for agricultural production is limited. Imports of food will grow with the population. Constraints Increased competition from locally produced food products and imports from Europe, nearby Arab countries and Asia. Freight costs from the other countries are higher compared to those from Europe and Asia. Local importers prefer to initiate importpurchasing activity with small quantities.

The market for retail food products is expanding. Changing lifestyles. The number of working women is expanding, and demand for prepared food items is growing. Saudi consumers are quick to try new products and are shopping more frequently in supermarkets. Voluntary shelf life labeling was introduced in December 2005. More than 7 million pilgrims travel to Mecca each year. A growing number of fast food restaurants, hotels and resorts and a thriving catering sector all depend heavily on imported institutional food products. Young population: 70 percent are under the age of 30. Younger Saudis express a strong preference for Western-style foods compared to their parents.

Arabic and biotechnology labeling requirements increase costs. Halal certification required for all meat and poultry products exported to Saudi Arabia. Additional manufacturer or producer statements. Health certificates must indicate that meat is derived from livestock not fed with feed containing protein, fat or remnants of animal origin. Saudi regulations restrict the number of different food items in one container to 25. Saudi support for boycotts of American products for political reasons. The Saudi economy is overly reliant on oil revenue and subject to sharp swings caused by volatile oil prices. Saudi importers have reservations about traveling to the U.S. to attend agricultural trade events following 9/11.

Technical feasibility
Need for evaluation:
A feasibility study is an important phase in the development of business related services. The need for evaluation is great especially in large high-risk information. Service development projects, A feasibility study focuses in the study of the challenges, technical problems and solution models of information service realization, analyses the potential solutions to the problems against the requirements, evaluates their ability to meet the goals and describes and rationalizes the recommended solution. The term technical feasibility establishes that the product or service can operate in the desired manner. Technical feasibility means achievable. This has to be proven without building the system. The proof is defining a comprehensive number of technical options that are feasible within known and demanded resources and requirements. These options should cover all technical sub-areas. Goal for evaluation:

The goal of a feasibility study is to outline and clarify the things and factors connected to the technical realization of an information service system. It is good to outline, recognized and possibly solve these things before the actual design and realization. Other goals for feasibility studies are: Produce sufficient information: Is the development project technically feasible? Produce base data for the requirement definition phase. E.g. what technical requirements does the production of the service place on the clients current technology i.e. help direct research and development investments to right things. What are the realization alternatives? Is there a recommended realization alternative? Evaluation answers: The evaluation of technical feasibility tries to answer whether the desired information service is feasible and what are the technical matters connected to the feasibility: Technical feasibility from the organization viewpoint. How practical is the technical solution? The availability of technical resources and know-how? The evaluation backs the selection of the most suitable technical alternative. The feasibility study is a critical document defining the original system concepts, goals, requirements and alternatives. The study also forms the framework for the system development project and creates a baseline for further studies.

Evaluation process description, scope and Viewpoints

The described evaluation process focuses only on the technical viewpoint. Also other evaluations (profitability, reliability etc.) should be carried out on the recommended information service implementation. The evaluation process can be utilized at different stages of an information service development project: At the beginning of an information service development project: evaluation of the technical feasibility of the desired information service and the implementation alternatives based on the available information. Usually a more concise evaluation: At the beginning of an information service development project alongside requirement definition (and partly after): Produces data for requirement definition and utilizes the data produced by the requirement definition process. A more demanding and in-depth evaluation process. Evaluation methods and instruments Feasibility analysis matrix (pre. feasibility): Comparison of different system alternatives. The matrix defines the factors used in the feasibility evaluation and their weight is evaluated for each system. The total weight is calculated at the end defining the order of the evaluated systems. Economical feasibility Cost-benefit analysis Return on investments percentage (ROI)

Presentation of evaluation results The evaluation of the technical feasibility of an information system produces information and answers e.g. the following points: Definitions of feasible alternatives for information service system design and development. Identifies raises and clarifies issues connected to the technical implementation of an information system. Produces data for requirement definition i.e. complements and utilizes the information service requirement definition. Connection to other modules The feasibility evaluation studies the information system from different viewpoints: Technical feasibility Financial feasibility Operational feasibility The other modules connected to theTechnical feasibility module are thus: Markets and foresight (technology foresight, mega-trends) Risk analyses (reliability, technical risks (?)) Revenue and finance (economical profitability and project feasibility)

Operational feasibility
Basically it means functional architecture. It provides elements for accessing the feasibility of proposed division or services assigned to XYZ firm. So it maintains all the business functions and relationships viz a viz their customers and suppliers. Hence it provides a common centralized infrastructure for consolidating export services across its connected markets. From an operational point of view the aim of XYZ firm is to provide efficient mechanism for delivering services of standard quality food items to Saudi Arabia. It should pay attention to following areas: Lifestyle of Saudi Arabia Uniform mechanism for delivering food items Current and future market standards adopted for the removal of the government barriers Codification should be open and flexible Harmonization of local and international markets

XYZ will function within an environment of multiple collected markets so we must collect a positive test of its operational feasibility. In describing a coherent operational framework we are effectively defining the basis for its development. Operational feasibility also contains some aspects of economic feasibility such as development and running cost that are based on the services and functionalities of XYZ designed to provide the efficient service mechanism to customers.

The operational feasibility analysis of XYZ should also based on the standard practices and procedures currently available in the international markets and has been updated in line with the harmonization of proposals currently being determined by the industry.