Running head: INFORMATION MANAGEMENT IN ORGANIZATIONS
APPLYING NEW TECHNOLOGY TO IMPROVE EFFECTIVENESS AND PROFITABILITY
IN AN ORGANIZATION
By
Abraham Lee
An assignment submitted in partial fulfillment of the requirement for BIM 400
School of Business Management
National University
Professor Farnaz Sharifrazi
23 November 2014
INFORMATION MANAGEMENT IN ORGANIZATIONS 2
Abstract
Information technology use has become an integral part of a successful business venture.
Modern technology impacts on the organization’s structure, management, and function, however
it makes them to be more effective. This essay looks at Southern Hospitality Flower Shop, its
processes, and how it can be improved with the use of technology. Adopting effective use of
computer and the internet can boost productivity, sales, and increase customer base for the
business. Management Information Systems (MIS) that suits the specific needs of this business
should be able to transform business operations in the flower shop. It will transform the manual
activities into a simple computer system that is seamless and efficient. It will minimize errors
associated with the current system. Though implementing the system can be problematic, once
resolved, the Southern Hospitality Flower Shop will have an integrated IT system that will give it
a competitive advantage, profitability, and continuous growth.
INFORMATION MANAGEMENT IN ORGANIZATIONS 3
Information Management in Southern Hospitality
Background
Southern Hospitality is a fictitious small flower business based in Sugarland, Texas. The
business was founded in 2001, and it has grown to be a household name, despite its many
challenges. It has seven employees, and three other employees responsible for delivering flowers
to the clients. Among the seven employees, one of them is an accountant and the other one is a
receptionist; the rest are responsible for receiving the flowers and preparing them to be delivered
to clients. The business is owned by Mrs. Worchester, who is a 57-year–old woman, though her
daughter helps her run it. The business does not have any form of modern technology, since the
owner has been adamant to adopt new technologies. The business relies on an old landline for
orders, and most of her clients are return clients whom she has done business with in the past.
The accountant uses an old desktop computer to keep business records. The business has poor
records, and often the orders are misplaced. Because of this, workers end up delivering the
wrong flowers to the clients. The system used is so manual, such that employees depend on Mrs.
Worchester for information on everything they are supposed to do. The employees are not in the
loop regarding orders, and sometimes Mrs. Worchester informs them about orders when they
have little time to prepare for the delivery. There are many errors in the papers, in the scheduling
and whole process. The manual system being used is not profitable, since the business is not
making an effort towards increasing its clients. The errors brought by this system have also
reduced the company’s profitability (Elia et. al., 2013). The company needs a total overhaul of its
system so as to improve its effectiveness. In addition to these problems, new flower shops have
opened near Southern Hospitality and they offer cheaper services. These new business have
adopted technology, and they are able to market their services online. Mrs. Worchester has
INFORMATION MANAGEMENT IN ORGANIZATIONS 4
always wanted to expand her business, and open a branch in the affluent neighborhoods but this
dream has not been achieved because the business has not been profitable enough.
Southern Hospitality has potential to expand, since it has operated successfully for the
past 13 years. However, it has not expanded because of poor management practices coupled with
the lack of technology. Nowadays people can purchase anything by the click of a button, and this
business lacks even the most basic technology such as computers and internet access. It is
outrageous that this business operates without technology in this age, and has not run out of
business. Mrs. Worchester values her customers, and she has always tried to established good
personal relationship with her customers. However, good relationship with clients is no longer
enough. The business is facing more challenges than those brought by poor technology; hence,
