Contents

1.0 Introduction.....................................................................................................................................1
1.1Information Systems and Information Technology Systems...................................................................2
1.2 Swot Analysis of Aalsmeer...............................................................................................................3
2.0 Porter’s Competitive Strategies.......................................................................................................4
2.2 The Value Chain Model....................................................................................................................7
2.3 Analysing the exchange organisation..............................................................................................8
2.4 Industry-level strategy and Information Systems............................................................................8
3.0 Systems Theory and Systems Development....................................................................................9
3.1 The Waterfall Model..........................................................................................................................10
3.2 The SDLC Model.............................................................................................................................11
3.3 The SSADM MODEL.......................................................................................................................13
3.4 Ethics Model.....................................................................................................................................13
3.5 Spiral Model......................................................................................................................................14
3.6 The RAD Model................................................................................................................................15
3.7 Computer Aided Software Engineering (CASE)..............................................................................16
3.8 Prototyping....................................................................................................................................17
4.0 Effectiveness - E-Commerce..........................................................................................................19
5.0 The De Lone and Mc Clean Model.......................................................................................................21
6.0 Conclusion.....................................................................................................................................22
1.0 Introduction
Aalsmeer Flower Auction, located in the Netherlands offers globally-producing growers
and universal active wholesalers and exporters a total concept: a central marketplace
for the buying and selling of floricultural products with a range of marketing channels,
facilities for growers, buyers and logistics. The expansion of Aalsmeer Flower Auction
was a result of one main flower exporting country in the world – the Netherlands. Every
phase of the world trade in flowers was managed in the Netherlands, mainly pricing,
packaging distribution and quality control. Change was detected from new countries
including Spain, Israel, and Kenya among others. They began producing flowers
through the Netherlands. This new development made the Aalsmeer board become an
international centre for supply and demand of floricultural products.

E-networks, change in customer needs, mergers and acquisition of buyers and

professional growers forced the board of Aalsmeer to react to these changes to sustain
its business and to connect with suppliers and buyers. With these latest developments
happening, Aalsmeer Flower Auction value chain seemed to be under pressure.

It became necessary to begin a strategic repositioning of the Aalsmeer Flower Auction,

using E-networking and reinventing the value chain to enable strategic change.

In this presentation, the author will attempt to discuss:

1. Analyse Aalsmeer Flower Auction and information requirements of the board and
put forward new IT and Information Systems and strategies to their business
 2. Recommend appropriate methods which may be used for developing new
systems which would assist Aalsmeer in dealing with a changing environment

3. The effectiveness of new Information Systems for Aalsmeer Flower Auction and
its users.

Information Systems and Information Technology Systems

Information Systems and Information Technology are used by most organisations to
carry out their business electronically, accomplishing new levels of efficiency,
competitiveness and profitability. The terms are often used interchangeable, however
they are quite different.

Information Technology is one of the many tools used by managers at different levels to
support tactical and strategic decision making.

Information Systems on the other hand, does not only refer to the technology, but also
how it is applied and managed to contribute to the business. It also helps to reduce the
expenditure by being more efficient to endure and thrive, extend their reach to far-off
locations, offer new products and services, restructure jobs and workflow and
considerably change the way they operate.
1.2 Swot Analysis of Aalsmeer
The SWOT Analysis identified the key strengths and weaknesses within the company and
describes the opportunities and threats facing Aalsmeer Flower Auction.

Strengths  Very efficient transfer of product from seller to buyers

 Buyers can directly inspect the product in the auction hall if
they wish
 The auctions, by centralizing and requiring the product to be
delivered prior to sale, minimizes opportunism
 Top flower shop in the world

Weaknesses  The buyers have to come to the auction halls and sellers have
to deliver products to the auction hall
 Packaging cost are incurred multiple times – for transport to
and from the auction
 Auction rules tend to favor the growers

Opportunities  New technological opportunities

 Increase in market share
 Redefine value chain
 Strengthen links with wholesalers
Threats  Direct selling is seen as a threat to existing growers who are
obligated to sell via the auction with higher cost for buyers
 Increasing trade outside the auction
 Increasing internationalization of the organization
 Loss of sales
 Threat of becoming non-operational
2.0 Porter’s Competitive Strategies
For many organisations, the key question is “How can I gain competitive advantage?”
In relation to his work on the five forces model, Porter (1980) proposed three different
competitive strategies in which organizations may be able to adopt one.

1. Overall cost leadership to become the low cost producer

2. Differentiation of your product or service
3. Focus on niche to change the scope of competition by narrowing the market not
well served by your competitors.

Using Porter’s (1990) model of international competitive advantage, Aaslmeer Flower

Auction is analysed. This analysis discloses that the basic issues of production are a
huge deal more important in the evolution of flower export industries. Aalsmeer Flower
Auction is already one of the leading Dutch economies, having 11,000 growers and
5,000 buyers.
 This will attempt to:

 Bring together international demand with supply from Aalsmeer Flower

Auction

 Focus on demand instead of supply

 Low cost per transaction

2.2 The Value Chain Model
The value chain model highlights specific activities in the business where competitive
strategies can best be applied and where information systems are most likely to have a
strategic impact (Porter, 1985). It identifies specific leverage points where the firm can
use information technology most effectively to achieve competitive advantage.
This model views the firm as a series or chain of basic activities that add value to the
firm’s products or support activities. In analyzing the case, it was clear that the
support activities of Aalsmeer were all affected by their move to outsource their
information technology to IBM. Porter argues that the ability to perform particular
activities and to manage linkages is a source of competitive advantage

2.3 Analysing the exchange organisation

Due to the convergence of IT and telecommunications, proliferation and availability of

bandwidth, which is Amount of traffic transmitted from the site. The impact of electronic
market is expected to increase rapidly. Their effectiveness is quite dependent on the
make and design.

2.4 Industry-level strategy and Information Systems

Firms together comprise an industry. The key question at this level of analysis is “How
and when we should compete with as oppose to cooperate with others in the
industry?” Whereas most strategic analyses emphasize competition, cooperating with
other firms in the same industry or firms in related industry in certain situations at times
can be very profitable.

One of the principal concepts for analyzing strategy at the industry level is the Porter’s
competitive forces model.

The Company has now reached global Sales status. This means that the quantity of
Customers would have multiplied, considerably. The Company must now keep abreast
with all of the information requirements to manage its financial portfolios, Marketing
Channels and Storage Facilities, thoroughly.

This will/must be done via all outlets available in the Electronic Media. The e-trading
service allows information to move at the click of a button, bringing buyers and sellers of
the world together, instantaneously.

As the IT consultant, it is recommended that the implementation of information systems

would improve communication searches, monitoring and information sorting capabilities,
to reduce transaction costs and all purchasers to take advantage of production
economics available in the markets.
3.0 Systems Theory and Systems Development
Systems Theory Provides a powerful means of analyzing and improving business
processes. It is the study of the behaviour and interactions with and between systems.

Systematic developments are the activities that go into producing an information system
solution to an organizational problem or opportunity. It is a structured kind of problem
solving with distinct activities consisting of system analysis, systems design,
programming, testing, conversion, and production and maintenance.

With the possible implementation of information Systems at Aalsmeer, there are a

number of models that could be looked at in developing new systems for the company
3.1 The Waterfall Model
The waterfall model outlines the series of steps that should occur when building BIS.
These steps usually occur in a predefine order with a review at the end of each stage
before the next stage has started.

The purpose of the model is to divide the development process up into a series of
manageable parts that relate to each other in an organization way, in which some tasks
will have to be completed before others can commence. The waterfall model is a
simple representation of what actually happens during a systems development [project,
but provides a good framework for introducing information systems development, since
all of the activities that are identified in the model occur in a typical project.

The Waterfall Model

3.2 The SDLC Model
The SDLC model is an alternative representative of the waterfall model, developed and
launched by the National Computing centre in the UK in 1996. However, in the SDLC
model, recognition is also given to the user in that the build phase should only
commence once user requirements have been determined and the system design
produced. Also, in addition to the life cycle phases, the concepts of project
management and change management have been added to reinforce the notion that
information systems projects do not take place by chance but that they must be
managed carefully.

The Systems Development Life Cycle (SDLC)

The key stages of the SDLC model are:

Stages of The Functions of The Phases of SDLC

SDLC
Initiation Start up phase of an IS Project, this aims to establish the feasibility of the
project and whether or not it will be successful
Feasibility Done at start of project to ensure it is viable, a feasibility report is also
done to analyze the need for the system and alternatives for acquiring
software
Requirements Defines what the system will do
Analysis
Systems Design Defines how the will work with key areas of user interface, program
modules, security and database structure and transactions
Build Creation of software involves writing software, constructing and
populating the database and testing by programmers and end-users.
Implementation Transition or change over from old to new system and making sure that
hardware and network infrastructure for a new system are in place
Maintain Ensure functionality of the system after implementation and manage
upgrades
Kill When system becomes obsolete, restart the cycle and create new program

Strengths and weaknesses of SDLC

The system has been well tried and tested and the used documentation standards help
to ensure that the specifications are complete and that the staff is trained to use the
system. Using this methodology also prevents missed cutover dates, unexpectedly high
costs and lower than expected benefits allows its progress to be reviewed.

There are however potential weaknesses of this system. This includes maintenance
workload, application backlog, lack of control inflexibility failure to meet the needs of
management, problems with documentation and maintenance workload.
3.3 The SSADM MODEL

Structured Systems Analysis and Design Method (SSADM); defines “the methods of
analysis and design that should occur in a large scale software development
project. It is used extensively in the UK, particularly in government and public
organizations.” Bocij et al; (2006). This uses methodologies such as feasibility study,
requirements analysis, and review of business options, technical options, logical design
and physical design. However SSADM only covers part of the SDLC with emphasis on
analysis and design. 

3.4 ETHICS MODEL

This model is referred to as the Effective, Technical and Human Implementation of
Computer based Systems, proposed by Enid Mumford (1995), This people’s oriented
approach embodies a sound ethical position and encompasses the socio-technical view
that to be effective, the technology must fit closely with the social and organizational
factors in the application domain. This results in an improved quality of working life and
enhances job satisfaction and the users must be a major objective of the systems
design process. The philosophy of ETHICS is one that perceives the development of
computer systems not as a technical issue but as an organizational one which is
concerned with the process of change and hence involves participation.
3.5 SPIRAL MODEL

According to Bocij et al; (2006) the spiral model is an “ iterative systems

development model in which the stages of analysis, design, code and review
repeat as new features for the system are identified.” The four main activities of this
model are:

 Planning: Setting project objectives, defining alternatives

 Risk Analysis: Analysis if alternatives and the identification and solution of risks

 Engineering: Equivalent to the build phase of the SDLC with coding and testing

 Customer Evaluation: Testing of the product by customers

3.6 THE RAD MODEL
PREFERRED METHODOLOGY

Rapid Development Design (RAD) developed by James Martin (1980) is a software

development process that is used to create workable systems in a very short period of
time. RAD uses two techniques: Joint Application Design (JAD) and Joint Requirement
Planning (JRP).

JAD is the main technique in the user design phase, which adopts a top down
approach to user design and is based on the recognition that user requirements are
difficult to understand and define.

JRP identifies the high level requirements of the system at a strategic level. The
participants are senior managers and they need to have a combination of overall
business knowledge and specific knowledge about the requirements of the proposed
system.
RAD can also include the use of visual programming and other tools for building
graphical user interface, iterative prototyping of key systems elements, automation of
programmed code generation and close teamwork among end users and information
systems specialist. This method enables simple systems to be assembled from pre-built
components and key parts of the development can occur simultaneously. Martin (1991)
stated “the RAD methodology is an example of an approach that uses prototyping
as part of the overall methodology as well as Computer Aided Software
Engineering (CASE) tools.”

3.7 Computer Aided Software Engineering (CASE)

CASE tools are software that helps the system analyst and designer in the analysis,
design and build phase of a software project. They include:

 Code generation tools

 Data modeling tools
 UML
 Refactoring tools
 QVT or Model Transformation tools
 Configuration management tools including revision control

The construction phase in RAD consists of taking user design through to detailed
design and code generation. This phase is undertakes by an IS professional using a
CASE tool creating a series of prototypes which are reviewed by key users. Once the
design have been agreed, the code can be generated and the system tested and
approved.

The final phase is cutover which involves further testing using realistic data in
operational situations. The users are trained on the system and finally the cutover is
effected by running the old and the new system in parallel until the new system has
proved itself and the old system phased out. RAD develops a time box approach and it
typically recommends implementation of systems in a ninety day cycle.

Advantages of RAD

1. Increased speed of development through methods including rapid

prototyping, virtualization of system related routines, the use of CASE
tools and other techniques.
2. Decreased end-user utility
3. Larger emphasis on simplicity and usability

Disadvantages of RAD

1. Reduces Salability and reduced features when a RAD developed application

starts as a prototype and evolves into a finished application
2. Reduced features occur due to time boxing when features are pushed to later
versions in order to finish a release, in a short period of time design, code
storage, compilers, translation tools and test software

3.8 Prototyping
A prototype is a preliminary version of part or a framework of all of an information
system which can be review by end users. Prototyping is an iterative process where
users suggest modifications before further prototypes and the final information systems
are built. This will allow the staff at Aalsmeer to be involved in the development process
which will give users an idea of what the final system looks like. IT will also encourage
active participation among users and producer and will enable a higher output for users.
Aalsmeer Flower auction could then reduce development cost and increase system
development speed.
The protyping process
The writer recommends that the organization use bespoke. This tern employed a
variety of applications to mean an item custom-made to the buyer’s specification. The
application would be bought off the shelf and then modified to suit Aalsmeer’s specific
needs. This is recommended due to the limited time that the organization has: too
much time would be taken if an system is to be built from scratch.

4.0 Effectiveness - E-Commerce

Security to computerized information systems and safety to its users in any organization
is of vital importance. At Aalsmeer, information systems play a critical role in their
business, that they must take special steps to protect their systems and ensure that
they are accurate, reliable and secure. Disruptions in this service could result in millions
of dollars in losses for the company. Therefore some level of system control, security
and auditing must be in place in order to accomplish information systems success for
the company and its users.

Security data and administrative controls however, require input and oversight from end
users and business managers. Administrative controls would include written policies
and procedures establishing formal standard for information system operations and
responsibilities.

Security of electronic communication is also a major control issue for Aalsmeer. EDI
transactions on the Internet can be looked at, which is relatively secure and reliable.

The heightened vulnerability of automated data has also created great concerns for
builders and users of information systems. These concerns include disaster, security
and administrative error. Firms that function on a day-to-day basis will require
emergency backup facilities. Aalsmeer will need to use uninterruptible power supply
technology or contract with disaster recovery firms for backup for client/server systems
as well as mainframe applications.

Aalsmeer must conduct comprehensive and systematic audits in order to test the
effectiveness of their information systems. . There must also be an understanding of
the operations as well as individual applications to trace the flow of the transactions
through the systems and perform automated audit software.

According to van der Zee and de Jong (1999)”the importance of IT requires

organization to integrate their IT decisions with their common planning and
decision making processes at all levels.” As such the balanced scorecard has been
used as a means of translating organizational strategies into objectives and then
providing the metrics to monitor the execution of the strategy. In the case of Aalsmeer
Flower Auction, this will provide a framework for the entire business strategy process,
but will also measure performance drivers such as investment in technology and
employee training.
5.1 The De Lone and Mc Clean Model
The De Lone and Mc Clean Model (1992) speak of Information System Success and
the reality that surrounds this concept. For IS success, the model identifies system
quality, information quality, use, user satisfaction, individual and organizational impact.
The model proposes that system and information jointly affect the use and user
satisfaction thereby affecting organizational impact and success.

De Lone and Mc Clean model of IS success

6.0 Conclusion
In order to create a controlled environment in Aalsmeer Flower auction, special
methods, policies and procedures must be incorporated into the integral design and
implementation of the information systems with special attention to controls throughout
the systems life span.

These controls can be both general and applications. General controls apply to all
computerized applications and consist of a combination of hardware, software, and
manual procedures. Application controls apply to payroll or other processing.

The writer believes that information technologies significantly lowers coordination costs
and enhance communications abilities. These changes allow transacting parties to
separate in space and time the informational and physical components of the trading
process.

Thriving in today's business environment has become more challenging than ever. At
Aalsmeer, time is of the essence. This is why using our IT outsourcing is a great idea for
grounding Aalsmeer’s business in any environment.