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David answered on
Dec 27 2021
STRATEGIC INFORMATION SYSTEMS At HONEYWELL
PAGE
16
STRATEGIC INFORMATION SYSTEMS At HONEYWELL
Student Name
Name of the institute
1. Executive Summary
In this era of competition and digitalization, it is not possible to manage business operations without the use of efficient Accounting information systems (AIS) or Enterprise resource planning (ERP) systems. With Globalization, there is increases complexity for managing the business operations and numerous suppliers and customers around the world. Due to all these changing dynamics, Information systems have become quite important. While some years back, common perception of manufacturing organizations about IT systems is they are an overhead. However, IT systems and ERP systems have not only become the enablers for the business processes but also provide the competitive advantage to the organizations (Groover, 2016). IT systems have increased the visibility for the organizations by giving them access to huge amount of data and hidden trends in that which helps the executives to take the better decisions.
There are lot of vendors in Accounting systems and EPR systems like MYOB, Oracle ERP, SAP ERP, Microsoft dynamics, Xero systems, QuickBooks, Sage to name a few. Most of these vendors have also launched their cloud systems in this era of cloud computing. In this market where organizations have numerous choices, it becomes quite important for them to analyze their business requirements and the offerings of various vendors before taking the decision. Pricing, ease of implementation, product support are also some other important criteria in selecting the vendor.
This case study will analyze the business operations of Honeywell and how Honeywell can take its operations to the next level. This report will also serves the purpose or set a kind of framework that can be used by any organization to study the feasibility of various ERP products.
Contents
21.
Executive Summary
42.
Introduction
53.
Business report Analysis
53.1
Business processes at Honeywell
83.2
Business requirements at Honeywell developed from business processes
83.3
System requirements
93.4
Software selection
113.5
3 ways in which technology will help Honeywell
123.6
Level of efficiency of the technology implementation
133.7
Security risks
143.8
How to mitigate security risks
144.
Conclusion
15List of references
2. Introduction
Honeywell, an American manufacturing conglomerate, serves both the business community and consumer community. It almost serves all the Industries like Oil and gas, Healthcare, Manufacturing, Chemical industry by manufacturing products like gas sensors, pressure measurement instruments, refrigerants and cooling solution for the industries, machinery and gloves for healthcare industry and many more. It has a huge portfolio of the products and a part of fortune 100 companies. In consumer space, it manufactures thermostat, alarm systems. It also manufactures products for supporting latest technologies like internet of things (IOT). It has total revenue of 39.5 billion US dollars in 2016. It has various divisions like consumer division, Aerospace divisions, performance materials division, Safety solutions. It has presence in more than 60 countries and thus scale of business operations is quite huge. It competes with different companies in different segments. Some of its competitors are General Electric, ABB, Emerson Electric and Schneider.
It is planning to move its legacy systems to modern day cloud systems due to its business requirement and also the company wants to reduce their focus on managing their operations and concentrate fully on their main competency. Implementation of a good product will help the company to automate their business processes and reduce their efforts in managing the operations. The purpose of this report is to study the business processes at Honeywell, develop business requirements, analyze various products and vendors and suggest a suitable product to Honeywell after evaluating the risks, cost and so on.
3. Business report Analysis
3.1 Business processes at Honeywell
Honeywell have departments like purchasing, order management, production planning, demand planning, manufacturing, Finance, sales and marketing, logistics, warehouse management. Due to the nature of its business, most of the products and solution it provides to other organizations are highly customized and thus are engineered to order. For such products, manufacturing is started only once the configurations are received from the customer. Some of its consumer goods are produced based on forecasts and thus follow push strategy. Such items are manufactured based on the forecasts. Honeywell has globalised operations with huge product portfolio and thus it has all the types of supply chains like make to stock, make to order and engineer to order.
Its key processes are as follows:
Business Process
Description
Sales and operation planning
In this process, Honeywell finalizes the forecast and prepare the production plan to guide its operation for the next 1 year. Marketing, Finance, Production, all departments come together and finalize the decision. This is aggregate planning and instead of individual products, it forecasts the product line at an aggregate level. And based on the plan, production department evaluate the rough cu capacity planning and if the capacity is not adequate, appropriate plans needs to be made or production plan needs to be changed (Schniederjans, & kims, 2003).
Material Requirement Planning process
In this process, based on the sales order booking and other commitments, supply is planned so that sales order can be replenished on time. The input to MRP is demand, item, lead time, bills of material and forecast and output are planned orders. These planned orders can be requisitions or the work orders (Chang, 2016)
Procurement process
Procurement department receives various requisitions from all the departments across the organization and places a purchase order with the suppliers. If there are no suppliers identified, it floats a proposal. And then based on the response, it has its own weightage for each of the parameter like cost, quality and delivery, based on which it signs a contract with the supplier and starts placing purchase order.
Manufacturing process
Manufacturing department...