The purpose of this paper is to give and provide detailed information about the reason why Craven Books was having issues on the implementation of the new information technology system which should help to improve the performance of the business. Other than that, the implementation of this new information technology system nearly makes Craven Books face bankruptcy and lost many customers.
In this paper, 3 issues that lead Craven Books faced failure in the implementation of the new information technology system will be chosen to discuss in detailed. Each issue will be discuss in detailed together with any related case studies that can take as reference and recommendations to eliminate and cope each issue.
Craven Books is a distributor of comics and magazines and books. The company was founded and evolves in the market place in the late 1960 as it founder, Peter Craven started to distribute sci-fi and horror books through direct mail. In 1970’s, the business began to be known in the market place by buying comics in bulk from both the American publishers and the second hand comic market and sell this on their customers in the United Kingdom by using a mail order catalogue. This had helped the company to grow in the market place and be known by many other customers. Because of this the company had been able to encounter growth both in profit and in the number of their regular customers.
In this regard, the company decided to use a new information system as part of their business strategy. In 1990’s, this plan has been initiated as Craven Books invest in new integrated information systems that will include all business operations of the company, from ordering, to processing, accounting and warehousing. All in one information system which aims to ensure that they will provide quality service to their customers and to make their logistics be more dependable. However, upon implementation of such project, the company’s expectation has not been achieved and worst, it weakens the competitiveness of the company and the competitive advantage that it builds had been destabilized. Reasons That Cause Unsuccessful Of Information Technology System According to the video that was showed in class which is titled ‘The Great IT Horror Story’, there were many reasons that lead the implementation of this new information technology system into disaster and chaos to the business. In addition, people who were relevant to the cause of this incident were being interviewed too and they also gave out their own opinion on why this disaster can happened and what preventions or actions should be made to cope and prevent the issues on the implementation of the new information technology system.
As mentioned, due to the objective to have and efficient distribution system, the management of Craven Books has decided to create an IT system. At first, the new system was expected to and should provide great time, effort and savings for the company to achieved the company’s objective but upon implementation of the new systems, the company’s expectation has not been achieve and even worst, it weakens the competitiveness of the company and the competitive advantages that the Craven Bookstore built had been not stable. In the video, it shows the common or classic mistake that make by the small business which also make by Craven Books that lead to this failure. Through this report, the following are the reasons why the new system in Craven Books was a failure.
1.) Unable to determine the suitable IT system
One of the first reasons for the failure of the system is the over-ambitious of Craven Books’ management that unable to determine the best IT system to use, to prepare a strategic plan before the implementation which lead to the result in choosing the IT system that is unfit to the company. Due to the reason that the company wants to be more competitive immediately, they pick the system without even trying to...
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