The Case Study: AJ Abaya Operational eTransformation

  
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Information Systems Course 

CONTENTS

Section

 

1

Introduction

2

Course Learning Outcomes

3

Program Learning Outcomes

4

QF Emirates Level 9

5

CoreLife Skills

6

Assessment

7

Recommended Reading

Annex(s)

 

A

Assessment  CoverSheet

B

Assessment Discussion Form

C

Assessment FeedbackForm

D

QF Emirates Descriptors

1. Introduction
Welcome to your Controlled Assessment 1 on the Information Systems Course in the Master of Business Administration. The aim of this assessment is to ensure that students can critically analyze and evaluate the given case and its relation to concepts taught in Information Systems. In performing your evaluation, carefully read each task/question that is presented in Section 6 Assessment Requirement. Make sure you comprehend every question. Refer each question to one or more specific topics presented in the classes that are in your opinion relevant to providing a response. Provide your reply using the specific concepts and knowledge acquired on every topic that best addresses each question.

2. Course Learning Outcomes:
In this assessment, you should be able to:

#

CLOs

PLO1

PLO2

PLO3

PLO4

PLO5

PLO6

QFE

CLS

CLO1

Critically appraise a detailed body knowledge of recent developments Decision Analysis and Decision Science

X

 

X

X

X

 

KN4, SK2 AR2, AR3, SD1

CLS1, CLS2, CLS5

3. Assessment

3.1 Assessment Instructions:
Students to form a group of 4-5 members adopt any Decision-Making Analysis techniques in doing this Formative Assessment on based on the case study given in LMS – Annex A: The Decision-Making Analysis Case Study: AJ Abaya Digital eTransformation, addressing the following requirements:
3.1.1 Appraise the challenges faced by AJ Abaya Textiles Company and discuss the impact of these challenges on the company competitive advantage. (CLO1)
3.1.2 Assuming you are one of the principal decision makers tasked to provide quantitative evidence on your proposed decision. Evaluate the three alternatives as decision making under Uncertainty based on the information in following table. Critically justify your proposed alternative. (CLO1)

                                Estimates Budget for the project                                 

 

The Alternatives

States of Nature

Estimated Return on Investment (Payoff)

 

12,000,000

Project Cost US$

Projected 10% Increase in Costs

Total Increased Cost

Projected ROI with no Increase in Costs

Projected ROI with Increased Costs

Oracle ERP Solution

15,000,000

1,500,000

16,500,000

-3,000,000

-4,500,000

Microsoft Dynamics

10,000,000

1,000,000

11,000,000

2,000,000

1,000,000

Bedouin Innovation Solution

5,000,000

500,000

5,500,000

7,000,000

6,500,000

3.1.3 Analyze 5 major risks that may prevent the implementation of the eTranformation proposal. Evaluate the risks ranking and construct Tusler’s Risk Identification Scheme to reflect its severity. (CLO1)

6.2 Your Terms of Reference:
As a guide, this section outlines the aspects to be significant given the brief shown above.

6. Case Study
The Case Study: AJ Abaya Operational eTransformation
AJ Abaya Textiles Company has seen steady financial growth the past 5 years. A traditional family business deeply rooted in manual operations, the company sole founding member, AJ Senior wish to pass on the company leadership to his younger much more technology savvy son. Currently AJ Sr. is always tired of traveling throughout the whole of United Arab Emirates to visit their factory and 50 sales shops. Much of the management decisions were made on adhoc basis and in some cases with lack of accurate information due to poor coordination and untimely sharing of up-to-date real-time data. Such affected the operations productivity and, in some cases, wrong decisions being made.

AJ Jr. conducted market research for the past 2 years. He is convinced by moving their company manufacturing plant to Buraymi, in Oman will help to reduce the operation costs. The remaining setup of their main office in Dubai and their 50 sales shops (through United Arabs Emirates) do not need to change. In near future, he also planned to open branches in neighboring countries including Oman, Saudi and Bahrain. AJ Jr. felt that such strategic move with provide better opportunities in improving the company several other business objectives that have been neglected. He also wanted to optimize the use of Information Systems/Information Technology (IS/IT) to increase the company operational excellence and increase its competitive advantage. Such initiatives will allow the management to focus on important business decisions and avoid mistakes that his father experienced.

His challenge is to convince his father in investing heavily into converting all of their heavily manual operations into optimizing integrated Enterprise-wide (ERP) IS/IT. In strategic restructuring plan, AJ Jr. hired you as his Operation Director to help him drafting a robust IS/IT strategy. Your immediate tasks are to prepare several reports as part of a suite in convincing AJ Sr. The company mission is to optimize advance technology and fully automate AJ Abaya Textiles into an innovative business entity. AJ Jr. hopes this will enhance further the company competitive advantage as a first mover in textile industry.

Your involvement as the company Operation Director, elevated AJ Jr. perceptions on expanding his original business strategy (Part 1) beyond manufacturing costs reduction and effective decision-making. Your IS/IT strategy is to incorporate Web-based eCommerce application within the proposed ERP solution based on outsourced Cloud computing services. The latter will reduce further the need in heavy IS/IT investment that was the main concerns of AJ Sr. Your proposal projected a potential increase in target customers globally beyond UAE, Oman, Saudi and Bahrain. Yet, decreasing operation costs exponential by reducing the 50 physical shops into only a single regional shop positioned in all of the country major cities. Region like Dubai will only have 1 physical shop instead of current 4 shops in different parts of Dubai.

While AJ Jr. is aware of eCommerce dot com business model and technology such as Cloud computing, he wants you to convince the management by highlighting these various IS/IT strategies. In particular, how the needed IS/IT infrastructure will support the eCommerce business model that integrates the proposed ERP application based on Cloud computing. Since accurate decision-making was the main problem, how database will be used to address issues concerning sales to customers and purchases from suppliers. AJ Jr. is concerned on whether the project will be successful. He wants a report on IS/IT strategies linking the proposed eCommerce website with ERP application on Cloud. This report should provide justifications on how IS/IT strategies will overcome the existing operation problems and address future business model. You are also required to draft out basic IS/IT Urbanization plan based on company business views, functional views, application as well as technical views. While outsourcing the project to consulting company to exactly customize the ERP application towards AJ Abaya operations will increase the investment costs, AJ Jr. wants to evaluate other alternatives. The bottom-line, this project will increase the company revenue and yet reduces their overall operation costs.


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