Information Systems

INTRODUCTION

This is the age of information technology. It is of the utmost importance for companies to use such systems so that they can manage their operations efficiently and effectively (Venkatesh, et al., 2013). By paying attention to this aspect, the firms can improve the overall quality of their operations and also ensure that the goals and objectives are fulfilled to the highest possible extent. Today, there are several different tools and technologies available that aim to simplify operations for business organisations. This report takes into consideration the case study of FlashMobz, which acquired PhonesRUs. It discusses business and technical challenges faced by the organisation and the various barriers that could hamper a firm's ability to develop its e-commerce operations.

Using information technology is a very critical yet challenging task. There are several aspects which have to be paid attention to. If any mistake is made, then it could be very damaging for the company and may even jeopardise its very existence (Randall & Douglas , 2013). From the current case, it can be observed that there are certain issues and challenges that FlashMobz will have to face in relation acquisition of PhonesRUs. One of the biggest business challenges for the company can be seen in terms of intellectual properties. For every business, intellectual properties such as logo, trademarks, etc. are the essential aspects of its existence. This they need to be managed appropriately. Intellectual Property (IP), as the name suggests, is the property of a business organisation. When FlashMobz acquired PhonesRUs, the former also purchased all assets and IPs owned by the latter organisation (Baskerville & Michael , 2015). However, the challenge here for FlashMobz is that it now needs to find out a way through which it can integrate IPs of PhonesRUs with its trademarks and logo. The primary purpose of intellectual property is that it enables customers and other stakeholders to distinguish one organisation with its rivals.

Another business-related challenge a company faces when acquiring another firm is with regards to integrating all the business-related functions and standardising them. Quality of operations is considered as one of the critical aspects that helps companies to achieve its goals and targets, along with enhancing its overall presence in the market (Niu, et al., 2013). Similarly, the management at FlashMobz will be required to pay attention to this aspect of standardisation. It will be the key to gaining effective control of operations of PhonesRUs and in ensuring that they line up with strategies and objectives of the former organisation. Nevertheless, linking these can be very difficult for FlashMobz, mainly due to the reason that both the companies may be working on different strategies and set of objectives. Herein it can be assumed that PhonesRUs might have been working towards rapidly expanding its business; while FlashMobz could have set its sight on increasing its sales and overall performance. In this regard, FlashMobz will have to pay attention to determining common objectives and targets for the organisations. A standardised set of rules, regulations and policies along with quality standards, will have to be developed so that the operations can be managed accordingly (Hsu, et al., 2012).

Similarly, a key issue that the companies face during the merger and acquisition process is with regards to a lack of planning around integrating the business functions and services (Shiau, et al., 2015). It has been observed on many occasions that during such a process, is the lack of proper planning for integrating all the services and functions. Companies that do not give appropriate attention to this aspect have more chances of failing at the process of acquisitions.

The company – FlashMobz will also face several issues with regards to transitioning and implementing an eCommerce system. One of the biggest challenges for the company will be in terms of changing behaviour and attitude of the customers (Lee, et al., 2015). Modern-day customers do not shop for products like they used to do back in the day. Now they use sites such as Amazon to search for products and not just Google. They seek advice and recommendations from other people on social media. Due to this reason, it can be said that it is now tough for companies to find and attract e-commerce customers (Hassan, 2019). Companies find it challenging to attract the customers mainly because the customers have a concise attention span. This means they get easily distracted with technology and social media. This could make it very difficult and challenging for e-commerce operations of FlashMobz to find and attract the perfect customers.

Today companies such as Amazon, eBay have pretty much captured the whole eCommerce market. They collectively control a vast majority of the market, with Amazon being the market leader (Gorla & Toni , 2014). Considering the amount of time people spend on the internet and these sites, one might expect that these companies have very high sales. However, this is not the case actually (Hassan, 2019). A large number of people who search for products on such e-commerce platform do not buy the product. They want to read the reviews to make a decision and compare the prices. In this sense, it can be said that the management at FlashMobz will have to develop a system whereby they can convert shoppers into paying customers. So far, the leading eCommerce companies have failed to achieve this goal; it can be considered that it would be difficult for FlashMobz as well.

Customer retention will also be a significant challenge for the company. This market is already is in a hyper-competitive state. Large organisations such as Amazon, eBay are finding it extremely difficult to retain the customers (Hassan, 2019). The same could be the case with FlashMobz' e-commerce operations as well. The company will be required to conduct a thorough analysis of the market in order to understand the nature of the customers and their needs and demands (Kravets, 2013). Based on such information, the management at FlashMobz can take an appropriate decision, thereby help the company to achieve its goals and objectives.

Another very critical challenge that the company will have to face while transitioning its operations to eCommerce will be regarding selecting the right technology partner. FlashMobz will have to form a partnership with a technology company which will be responsible for developing appropriate systems to aid the transition process and complete it effectively (Watson & Niki , 2013). It has been observed over the years that many online retailers have failed because they did not have the right people and organisations supporting them. The technology they used in their e-commerce operations was very limiting (Hassan, 2019). Therefore, FlashMobz could find it challenging to identify and select the right technology partner to oversee and manage these operations.

Managing the process of acquiring and integrating operations of PhonesRUs will be a very tedious and complicated one for the management at FlashMobz. Herein FlashMobz' authorities will have to pay much attention to identifying these challenges and issues. Based on such information, they can make an informed decision and thereby ensure that the pre-decided goals are fulfilled (Balaban, et al., 2013).

One of the critical challenges for the firm will be regarding maintaining optimal communication levels. It is a well-known fact that communication is of utmost importance for an organisation, regardless of the market or industry that it may be a part of. Both FlashMobz and PhonesRUs have to focus on communication with the stakeholders, especially the internal ones, i.e. employees (Romero & François , 2016). Lack of proper communication can result in company synergies to fail. Management of both the companies should interact with their employees and inform them about this acquisition and how it would affect them, as well as the benefits that they will gain out of it. Also, they should mention new roles and responsibilities and targets for the employees. They should create an open environment in the workplace, allowing employees to ask their queries and also make suggestions for improving this process. Herein it can be suggested that the management at FlashMobz should interact with employees at both the organisations. It should be an open session so that employees can freely ask their doubts and therefore get a better understanding of the acquisition process and the impact that it would have on them (Groom & Hopkins, 2015). The company can use the intranet to create a proper flow of communication at the workplace and clearly express the roles and responsibilities of the employees. This communication session should be held for a few days, and an option of discreetness should also be provided. It would enable the employees to freely share their thoughts and questions (Saraf & Huigang , 2013). The management should maintain transparency in the communication process at FlashMobz.

Another challenge for the firms will be to retain the employees. It has been generally observed that employees, during an acquisition process, tend to resign and leave from the company (Lupşe & Mihaela , 2012). This could be because they feel that the new environment is not supportive of their professional goals and could hinder their growth and development in the company. Many acquisition deals have retention issues as well, which is a direct result of negative attitudes felt by the employees. This could consist of issues such as uncertainty about the future direction of the organisation and thus their future, job security, perception of lack of credibility in the newly formed leadership and feelings of confusion (Müller & Iris , 2016).

Thus, retaining the employees will be a significant issue for FlashMobz. The management will have to develop healthy and positive relations with employees at PhonesRUs. This will help in identifying and understanding the issues that they face and their overall intention to work in the company (Majchrzak, et al., 2016). Key for retaining employees will be relationship building. The company should learn about the needs and demands of the employees. Such information will aid the management in determining ways through which their expectations and demands can be fulfilled to the highest possible extent.

Cultural challenges are other key challenges that the company will have to face (Deeb, 2016). Both the organisations, i.e. FlashMobz and PhonesRUs, have different work cultures and corporate cultures. FlashMobz could find it challenging to create the same culture that will make the PhonesRUs' employees comfortable in the new settings. It would be a significant activity for the organisation and will have a lasting impact on the performance of FlashMobz as well as on the acquisition process (Feng & Jiannan , 2014). If this aspect is not adequately maintained, then it can have a negative impact on the employees and result in bad performance of the organisation; and also, adversely affect image and existence of the company.

To overcome this challenge, it can be suggested that the management of FlashMobz should give more attention to understanding the nature of work and work culture at PhonesRUs (Brown, 2014). The management then should focus on determining ways through which the employees can be made comfortable and essential aspects of the work culture at PhonesRUs can be inculcated into the work environment at FlashMobz so that the employees can be made comfortable and happy. Preparation and planning will be the key to effective acquisition and integration of the two companies. If the management on both sides, does not plan for the acquisition, then it could have a detrimental impact on the employees and their morale as well. Both formal and informal aspects of the acquisition such as policies and procedures, job descriptions, pay and compensations, cultural norms, the unwritten norms, informal leaders, relationships, etc. will have to be properly planned for (Alsher, 2017).

Another major challenge for the firms will be regarding managing human resources (Koi-Akrofi, 2016). This will be a very critical issue and will have a significant impact on the whole acquisition process. Therefore, it can be said that the management will have to be very careful, especially with regards to human resource management. FlashMobz will have to determine a way through which it can integrate employees of the two organisations with the common goals and objectives. This will be a significant activity and affect the two firms as well as the acquisition process (Baskerville & Michael , 2015). Effective communication and transparency in the operations will be the key in this regard for FlashMobz and will help the company to manage the acquisition and integration process effectively.

Managing the different cultures will also be an essential part of the acquisition process and will have a significant impact on both organisations. By adequately managing this aspect, FlashMobz can effectively carry out the process of acquiring and integrating PhonesRUs’ objectives and goals with its own (Venkatesh, et al., 2013).

Resistance to change will also be a vital issue for the company here. Resisting to and not accepting a change is the fundamental nature of a human being. The employees at both organisations will resist changes in the working environment and might not accept it. This will have a significant negative impact on operations of the firms and their ability to achieve their goals and objectives along with sustaining in the market (Saraf & Huigang , 2013). In order to manage this issue, it can be suggested that management should use different time management strategies and techniques. These will help in introducing the change and making the employees understand and accept it. Change management strategies can be most beneficial for the company and thereby help it to introduce the change effectively and also ensure that the employees accept it so that they can work in the new environment and thus contribute in the attainment of the goals and targets (Deeb, 2016).

Information technology and information systems now hold critical importance for businesses, regardless of the industry that they might be a part of. It is crucial for the firms that they determine ways through which they can use the information systems and simplify the process of attainment of organisational goals and objectives. I have learned several things during this study. One of my key learnings during this study was that information systems tend to have the most significant impact on the operations of organisations and therefore need to be managed and used appropriately. It can become the differentiating factor in the success or failure of an enterprise.

I also learned different aspects of web accessibility and its techniques. Herein I observed that discrimination on the web, especially against disabled people, has increased at a very rather very rapid pace. It tends to demotivate the concerned individuals. During this module, I also contributed to the online discussions. Herein I made sure that I provided references and links to articles and papers that I was using express my thoughts. I gave original authors the due credit. Participating in the online discussions helped me understand the subjects better. It added a whole lot more value to the course for me and helped me understand it in a better manner.

Online Contribution

Conclusion

This report takes into consideration the case study of FlashMobz, which acquired PhonesRUs. It discusses business and technical challenges faced by the organisation and the various barriers that could hamper the firm's ability to develop its e-commerce operations. One of the biggest business challenges for the company can be seen in terms of intellectual properties. Another very critical challenge that the company will have to face while transitioning its operations to e-commerce will be regarding selecting the right technology partner. FlashMobz will have to form a partnership with a technology company which will be responsible for developing appropriate systems to aid the transition process and complete it effectively.

Recommendations

It can be suggested that FlashMobz should interact with employees at both organisations. It should be an open session so that employees can freely ask their doubts and therefore get a better understanding of the acquisition process and the impact that it would have on them. The company can use the intranet to create a proper flow of communication at the workplace and clearly express the roles and responsibilities of the employees. This communication session should be held for a few days, and an option of discreetness should also be provided. It would enable the employees to share their thoughts and questions freely.

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