Words Case Study On Cross Organization
250 Words Case Study Oncross Organization
Due Tuesday morning 4/15/14, 250 words Case Study on Cross-Organizational Systems Consider the following scenario regarding the Clambake Company and decisions they need to make regarding their information systems (IS). The Clambake Company has been providing seafood to the northeast region of the United States for over 30 years. They started as a small family business and have grown to more than 30 employees. They first installed a small accounting system to take care of their finances, payroll, and tax reporting. About seven years ago, they installed a sales program to track sales. They are now considering buying out a competing company that would increase their sales by 80% and their workforce by 40%. They realize that it will require more time in the office to administer the company, especially since they are now branching out into other areas. One concern they have is what to do about their IS. They anticipate strong growth over the next 10 years and cannot afford to make a mistake with their IS. They wonder if they should add two other functional systems to go with the two they have or to spend more resources, which might stretch them now, in order to go to one cross-functional system that would be more than sufficient to accommodate the anticipated growth. They have hired you as a consultant to make a recommendation on what they should do. Be sure to review the lessons and assigned reading regarding cross-functional systems before beginning work on your case study. Also, conduct outside research regarding functional systems. You should use your textbook and at least two outside sources to complete this assignment. Please be sure to format, quote, paraphrase, cite, and list any sources, including your textbook, using the APA format required by CSU. Write a one-page (250-word) paper advising the Clambake Company on their future IS. Be sure to discuss the advantages and disadvantages and your rationale for the system you recommend.
Paper For Above instruction
The Clambake Company stands at a pivotal juncture in its growth trajectory, necessitating a strategic decision regarding its information systems (IS) infrastructure. As they consider a significant expansion through acquiring a competitor, it is essential to evaluate whether to invest in multiple functional systems or transition to a comprehensive cross-functional system that can support their long-term growth.
A functional system focuses on automating specific business activities, such as accounting or sales, which offers advantages like easier implementation, cost-effectiveness, and targeted functionality (Stair & Reynolds, 2020). However, these systems often operate in silos, creating potential challenges in data integration and coordination across departments (Laudon & Laudon, 2019). Conversely, a cross-functional, or enterprise system, integrates core processes across various departments, enabling real-time data sharing and improved decision-making capabilities (Simons, 2019). This integration is crucial for a rapidly expanding organization managing increased sales volume and workforce size.
Given the projected 80% increase in sales and 40% growth in workforce, a cross-functional system offers strategic advantages such as streamlined operations, improved data accuracy, and enhanced collaboration. These benefits are especially pertinent as the company ventures into new markets and broadens operational scope. Nonetheless, the initial investment and implementation complexity of such systems are significant disadvantages, potentially straining resources in the short term (O'Brien & Marakas, 2020).
After careful consideration, I recommend that Clambake invest in an enterprise resource planning (ERP) system that encompasses essential functional modules—finance, sales, supply chain, and human resources—integrated into a unified platform. Although more costly upfront, this approach will provide scalable support for their ambitious growth plans, improve operational efficiency, and reduce integration issues over time. A phased implementation can mitigate risks and distribute costs, making this strategy feasible.
In conclusion, adopting a cross-functional ERP system aligns with Clambake’s expansion goals. The integration and data sharing capabilities will position them competitively in the seafood industry, supporting sustainable growth and operational excellence.
References
Laudon, K. C., & Laudon, J. P. (2019). Management information systems: Managing the digital firm. Pearson.
O'Brien, J. A., & Marakas, G. M. (2020). Management information systems (Text and cases). McGraw-Hill Education.
Simons, R. (2019). Levers of control: How managers use innovative control systems to drive strategic renewal. Harvard Business Review Press.
Stair, R., & Reynolds, G. (2020). Principles of information systems. Cengage Learning.