Service Request SR-r

Running head: SERVICE REQUEST SR-RM-012 1

Service Request SR-rm-012

Team C

Victor Munoz, Aelxandro Lopez, Ismael Calderon, Daniel Luevano

BSA 310

March 13, 2012

Reese Kaplan

SERVICE REQUEST SR-RM-012 2

Service Request SR-rm-012 Riordan Manufacturing Company Business Systems

Due to the company’s growth, Riordan is faced with multiple accounting, manufacturing,

sales, purchasing, and inventory information systems. A unified information system will also

increase efficiency of inventory control, manufacturing, and accounting. Additionally, by

integrating this system into purchasing and sales, Riordan will see a return of investment in the

following areas. Reduction of work load through automation Accelerated inventory adjustment

and immediate order fulfillment and manufacturing scheduling Error reduction through less

paper handling and data entry Reduced IT costs by eliminating multi-platform support while

some of Riordan. plants are operating on older systems, the infrastructure is present to link all of

our facilities to the corporate office. This gives us the ability to develop and maintain the

information systems from corporate headquarters and support an effective organizational

structure.

Business Systems (San Juan)

In today’s world of business, possessing a strong communication with companies under

one umbrella is imperative to the success of a company. San Juan, which is the base location for

Riordan, has the bells and whistles required to communicate effectively with employees at its

location. However, Riordan’s profits allowed the company to start up two new locations, which

has to share information and data on a monthly basis. By purchasing a license for a fully

integrated windows-based ERP manufacturing, distribution, and financial management software

application, the company made a good decision for the home base company. However, the

company failed to purchase the applications source code to enable communications between the

distant companies it acquired. Based on the teams review, it would be wise to purchase the


application source code for the vendor and start the process to fully integrate the locations in

Michigan and Georgia.

The team also considered implementing Cloud computing for Riordan Manufacturing.

Cloud computing would fully integrate Riordan business systems. Cloud computing is a general

term for anything that involves delivering hosted services over the Internet (Hartig, 2009).

Riordan Manufacturing can use this type of service to share resources, software, and information

between San Juan, Michigan, and its Georgia location. Implementing the services through cloud

computing, Riordan can choose to step up public or private services. Uniquely, some divisions

within Riordan will have restricted access. The team researched Right Safe Cloud management

who oversees 3,257,143 servers, both private, and public (Right Safe, 2011). By using the cloud

for the different locations, each location can have access to vital company information on any

level at any time.

Cloud Characteristics

Cloud computing has some distinctive characteristics for Riordan Manufacturing that

would not be costly to the company. Cloud computing possess three characteristics that brings

one to conclude that cloud computing brings tremendous benefit to the organization. The first

characteristic is there is no maintenance. Cloud computing is an outsourced service provider,

which saves the trouble of maintenance issues. Riordan will save facility space and expenses of

employing a large IT department. The second characteristic is virtualization. Cloud computing

will provide uninterrupted service through online availability 24/7. The around the clock

availability by the hosting provider is beneficial to company needs. The third characteristic is

pay-as-you-go. Riordan Manufacturing will never have to pay for service it is not using. Most

traditional online computing services offer business services bundled. Accessing the Cloud, the


company will only pay for services used while saving the company money. These three

characteristics proves that cloud computing is efficient and has more benefit than traditional

computing (TheCloudGuy, 2010).

Human resources

Riordan Manufacturing is currently upgrading the current business systems of each

department. Management has asked the human resources department to provide information for

the current department business systems and subsystems such as: the name of the system, how

the systems work together for that department, what information is contained in the system and

what security is used for that part of the system. The human resources department will research

different business software systems and provide information on a new and secure business

software system that will be needed to replace the current system.

Riordan Manufacturing is currently using an HRIS system that was installed in 1992 as

part of a package system the financial department is using. The system uses data retrieved from

specialized forms and a subsystem of excel spreadsheets. The forms are used by managers and

the employee relation specialists. The forms used by managers include employees’ personal

information, pay rate, tax information, date hired, seniority date, vacation time, and

organizational information. The employee relations specialist also uses forms to track

information about employee complaints, employee grievances, and employee harassment claims.

When changes need to be made to any of the previous mentioned information, the

appropriate form is filled out and sent to the payroll clerk, who is in charge of entering and

maintaining the data for that part of the HRIS system. Managers are also responsible for

tracking family medical leave absences and any request for medical accommodations in the

workplace. Department heads are responsible for managing and storing files. Currently, there is


no central storage area for employee files at this time. Files maintained by the employee relations

specialists are securely stored in the Managers office.

Human resources subsystems

The subsystems used by the human resources department are Excel spreadsheets. Excel

spreadsheets are used by recruiters, the compensation manager, and the training development

specialist. Recruiters maintain applicant information for job openings. The Excel spreadsheets

are used to track the status of applicants and applicant resumes are kept in central file storage.

The company has a compensation manager who keeps Excel spreadsheets with the company

analysis of job, salary surveys, and individual employee compensation, but the company chooses

to have a third-party provider manage and maintain records for employee compensation. The

training and development specialist keeps employee training and development stored on an Excel

spreadsheet. Storage for the employee forms kept by the managers are not currently kept in a

secure manner and keeping data offsite can also compromise company security.

The human resources department has researched business software systems, and found

SAP and backup virtual cloud storage to be a suitable replacement for the current HRIS system

(SAP-Components & Tools of SAP Netweaver, 2011). The uses of a Shared Access Point system

can reduce cost by bringing the workers compensation in house. Each section of the human

resources department can use the SAP system to enter and update employee data in a secure

environment. Once the data has been entered, the paper files can be scanned and stored into the

backup virtual cloud storage eliminating the risk of employee data security breach. The SAP and

backup virtual cloud storage can be accessed by a username password combination.

Access restrictions also can be given to employees so they can track their vacation time,

update their personal information, and tax information. The new system could reduce time spent


on manager decisions such as giving an employee a raise. The manager could log into the

system, look at the employee’s time and attendance, training, and complaints to decide in

minutes if any employee will be approved or denied a raise. However, replacing the paper

system with this method can reduce paperwork and the turnaround time for the employee along

with the company.

Legal

By the review of the Riordan legal system Litteral & Finkel a law firm retained by

Riordan Manufacturing can provide legal services anywhere around the world. In other words,

the huge law firm can send attorneys, clerks, and paralegals to any of Riordan Manufacturing

branches in the world in a short amount of time to handle any legal matters. Riordan

Manufacturing has the convenience of using one firm who can provide different services. The

relationship built by the two came from Dr. Riordan’s cousin whom was a partner in the law

firm.

To describe the business system between the two entities, the business system is set with

a Chief Legal Counsel. The Chief Legal counsel oversees legal inquires and contracts. When the

department heads have legal questions, they must send those questions to the Chief Legal

Counsel. After the inquiries or contracts have been received, the Chief Legal Counsel answers

inquiries to the best of his legal knowledge or receives the right legal information from an

attorney at Litteral & Finkel. All legal matters have to be addressed through the Chief Legal

Counsel and with the company’s patents, one other person works with the Chief Legal Counsel

to handle that particular part of the business. Every month, Riordan Manufacturing receives a

retainer from Litteral & Finkel. If the amount charged to the company exceeds the retainer,

Riordan Manufacturing covers the rest. However, if the retainer is not completely used during


the month, the retainer does not carry over to the next month. Therefore, this system is set to

make sure the company does not spend money on certain legal issues that can be handled within

the legal experience and knowledge of the Chief Legal Counsel. In other words because all legal

matters go through the Chief Legal Counsel for approval, this system keeps down the overuse of

the law firm when may not be considered important at that present time.

Legal Subsystems

The subsystem supports the business system by using the Litteral & Finkel law firm as

the final resort or after a legal issue becomes approved by the Chief Legal Counsel for any extra-

needed legal action or advice. If the Chief Legal Counsel does not approve a legal inquiry, the

subsystem does not take into action. The subsystem consists of approval by the Chief Legal

Counsel first. Next the Chief Legal Counsel looks into the issue to see if he can handle the legal

situation on his own. Last, if he cannot handle the legal issue on his own, attorneys from the

Litteral & Finkel law firm are used to handle the issue.

To help the business system and the subsystem work more effectively for Riordan

Manufacturing legal department, a legal information database system would close the gap more

between the Chief Legal Counsel and the retained law firm. In addition, the overseas branches

would benefit much as well by appointing legal counsels to receive legal advisement faster. For

example, using a legal information database, such as the Global Legal Information Network

(GLIN), the Chief Legal Counsels would be able to search needed information electronically

before calling on an attorney for assistance. Moreover, this system would assist the legal

department with legal inquiries. Also this type of information system would accelerate the

process of overseas branches with their legal inquiries and contracts to be processed and if they


need to call on an attorney for assistance. Consequently, this type of method would cut down on

retainer overages and less strain on one Chief Legal Counsel (Group, 2011).

Sales & Marketing

Riordan Manufacturing used the knowledge of its founder to help expand its company

into what are now, three plants around the globe – China, Georgia, and Michigan. Riordan

desires to keep the older customers and contracts but also acquire new clients. Upper

management developed an action plan that would satisfy their existing customers and potentially

attract new customers. The plan is to increase sales for their existing customers and expand sales

to new customers. The company believes this plan coincided with their company’s sale plan for

2006 will contribute to reaching $50M in revenues.

When reviewing Riordan Manufacturing sales and marketing plans, the team noticed

there was no mention about current line of products. The sales plan focuses primarily on the

customer and the customers’ purchases. The team believes if upper management could look into

its line of products, possibly expanding the variety of products and services. Customers expect

receive more for the cost of a little. In other words, the more products Riordan Manufacturing

offers there is a good chance of an increase in sales. This type of marketing could lead eventually

Riordan Manufacturing into a multi-plastic manufacturing company; a one stop shop. Opening to

small business as well as the public may lead to larger profit for the company. This strategy will

benefit the customer and client by offering the customer the option to do all business transactions

with one company versus several, and allowing Riordan Manufacturing to establish a lasting

relationship with its customer base. This marketing idea will be able to reach markets from

bottling companies to computer manufacturing companies. Providing the customer with multiple

options of service ultimately allow Riordan to reach the $50 million revenue goal.


Riordan has used a pencil and paper system to keep track of all their documents, clients,

proposals, and list of products, which all is stored in file cabinets in the marketing department.

Riordan Manufacturing desires to manage its data more efficiently; however, the current system

does not substantiate data efficiency. Installing a customer management database system

(CMDS) will provide customer satisfaction that should increase profits. Riordan Manufacturing

should employ a company that will provide a package that can house 20 of the company’s

profiles with private and public information, like their name, address, zip code, country,

telephone number, and most important the company’s customer number. The customer number

will link each client’s information directly to all the aspects of the manufacturing company, from

purchase to delivery. The team recommends Riordan Manufacturing to purchase Alpha

Software.

Alpha Software has been in business since 1980 and started as a DOS product application

company, but throughout the years, the company advanced to a windows-based database

environment. Alpha Software database allows Riordan to build desktop application and web

database applications. This software is fully integrated and can be used by Microsoft Access,

MySQL, Oracle, Microsoft SQL Server, DB2 or File Maker Pro; with these options, Riordan

Manufacturing finally can eliminate the paper and pencil and not have to worry about potential

fire hazards with paper storage. They will also be able to pull all types of reports quickly and

easily without the headache of someone missing a number of misplacing a file. Riordan

Manufacturing can start focusing on the goal at hand once they start using this software system

for all their date entry (AlphaSoftware, 2011).

A sales and marketing software package is needed to keep track of current consumers and

the marketing strategy of the company. Management can use this system to identify all the sales


and new markets available in the target areas. This software should also allow quick and easy

ways to run reports for potential and existing customers. The teams’ research has located a

software company that would be ideal for Riordan – Salesfusion. Salesfusion is an integrated

software marketing company that allows the company to focus on expansion and not worry with

tracking the workload (Salesfusion, 2010). Salesfusion will organize all entries and has

immaculate reporting capabilities. Salesfusion is based in the United States and have been in

existence since 2006. They have three locations, two in Georgia, and one in Pennsylvania. Their

employees are passionate about their jobs and will give Riordan the best customer service

needed. The quality of customer service is proven in the mission statement “We help our

customers generate more leads and earn more revenue” (Salesfusion, 2010).

Riordan Manufacturing can benefit significantly from these software programs. These

programs will cost several thousands of dollars, but it will help the annual revenue goal of $50

million dollars. Taking Riordan Manufacturing into the twenty-first century of technology is

something the firm desperately needs. Stopping the use of the paper and pen method for

maintaining records will give Riordan Manufacturing’s clients both old and new a sense of

direction of the company and ensures that information will be safe and secure.

Operations

The Operations department oversees the production of projects including the pyramid

bottle and the Cardicare Valve projects. The operations department works in conjunction with

Research and Development, Shipping, and Receiving, and Production departments to ensure a

quality product. The Shipping and Receiving department has a current standard of receiving the

supplies from the suppliers but not a solid system of inventory control. The team recommends an

inventory control system coupled with a barcode tracking system be implemented. This system


will count all shipments received while removing the product from inventory when this piece of

inventory is moved to production. Placing a barcode on the product will allow the production

team to keep track of production inventory and count it as removed from inventory once it is

shipped to the consumer. The team recommends that the purchasing agent in Finance and

Accounting have access to this system for checks and balances to the inventory control system.

The purchasing agent can also use the system to track inventory, which is cost efficient for the

company. Currently, some production employees are voicing concerns relevant to the safety and

quality of the products shipped to customers. Several letters written by concerned employees was

overlooked because a lack of communication between the production floor and upper

management. Therefore, the company is likely to send out faulty heart valve equipment and

stands a chance of facing litigation. It is the teams recommendation to install an intranet or

extranet to provide better communication between departments locally and at other locations.

Information Security

In today’s business world technology has changed how company’s market and sale their

products and services. Riordan Manufacturing and other companies use information security so

they may protect the company and customer’s information. A majority of companies are

implementing securities into their business. Any company with an IT department must include

budgets, infrastructures, and strategies that will be vital overall to the company’s economic

survival (Markovich, 2010).

With the advancement of technology, the need to understand and manage the negative

effects of technology may be critical. Information security has become a critical component in

this era of technology. The Internet provides many companies the ability to market their

product and service anywhere in the world. This also can cut the overhead cost without a


company acquiring a physical presence at that location. With the new age of technology, the

Internet has become the new way a company can do business freely wherever there is Internet

available (Markovich, 2010).

Riordan Manufacturing will have a larger chance of success if the company encourages

data security. Riordan has a vast amount of data shared between departments and locations.

Because of this, there is always risk of a cybercriminal to gain unauthorized access, alter, or

destroy information. Because information flows freely in an electronic cloud, there will always

be a need for information security. As any other company, there are concerns about cloud

computing security. In virtual environments, an enterprise is taking a huge risk of releasing

sensitive data in cyberspace. The outsourced nature of the cloud results to a more active

approach of monitoring sensitive data to ensure data protection. There are the three critical

architectural issues to use while resolving this issue of the transferring of sensitive data

(Markovich, April).

Cloud computing and virtualization offers flexibility and efficiency to shift servers and

insert or eliminate resources to enhance system use and reduce expenditure. A provisioned and

de-provisioned data server has a higher potential to be targets for hackers. Finding a method and

deploying it on database servers without hands on involvement by management is the key to

monitoring server activity. Each instance in the cloud must have a locally running sensor. The

software must have automatic provisioning without hands on involvement by management.

Cloud vendors routinely limit the installations they will do on certain software that requires

privileges (Markovich, 2010).

The Cloud computing practice is normally in the form of a WAN which will allow

communications between the different locations. Installing a monitoring agent between the


locations will provide security and filtering for the users. Because there is a need for data

security, once a security policy is set in place on the database, local protection, and alerts are

probable. The activities of “privileged users” are the most difficult elements to monitor. A

resolution to this issue is achievable by separation of duties. This means that managers should

check their staff ensuring anti-infiltration on the cloud side of the network is without raising

alerts. Second, refining the “privileged users” with new views, storage procedures, and generate

triggers that will signal an alert if something suspicious arises. Last, automatic alerts, when

accessed data is out of policy allow less company downtime. After installing additional software

to protect company data, Riordan would benefit from the ease of access of the company

information in a centralized location (Markovich, 2010).

Conclusion

In conclusion, Team C reviewed how the main systems and subsystems are used and

works for all the departments at Riordan Manufacturing. After the review, the team analyzed

how these systems and subsystems are used to communicate between all the departments

together. Therefore, a determination can be made to see how these systems and subsystems can

be improved to accommodate the company’s overall operations. In addition to the

determinations, Team C decided to implement various information systems suited best for each

department to operate more effectively. For example, before the Chief Legal Counsel seeks

legal advice about an inquiry sent from Accounting, the Global Legal Information Network

(GLIN) would be utilized to give him the legal information needed to handle the legal matter. On

the other hand, the team determined these systems would fix effectively the company’s filing

system and eliminate any chance for written files to become lost or misplaced. As a result,


improving departments systems and subsystems, all departments will be able to communicate

better between each other and operate more effectively throughout the entire company.

References

Alpha Software. (2011 November). Alpha Software/About Us. Retrieved from

http://www.alphasoftware.com

Emigh, J. (1999). Vendor Managed Inventory. Computer World, 33(34), 52.

Group, A. (2011). Riordan Manufacturing Legal Overview. Retrieved from

http://https//ecampas.phonenix.edu/secure/aapd/cist/vop/business/Riordan/Legal/RiordanLegal/

001.htm

Hartig, K. (December 13, 2009). What is Cloud Computing. Cloud Computing Journal,

2(6), 3. Retrieved from http://Clouidcomputing.sys.com

Markovich, S. (April 2, 2010). How to Secure sensitive data in cloud environments.

Retrieved from http://www.eweek.com

Right Safe. (2011). Right Safe Cloud Commuting. Retrieved from

http://www.rightsafe.com

SAP-Components & Tools of SAP Netweaver. (2011). Retrieved from

http://www.sap.com/platform/netweaver/components/portal/index/epx

Tarte, J. (2003, Jan). The need for Information Security in Today’s Economy (2nd ed.).

New York, NY: Tarte, J.

The Cloud Guy, T. (2010, Sept). The Cloudguytim: Blog. Retrieved from

http://thecloudguytim.wordpress.com


www.Salesfusion.com. (2010, December). Salesfusion Information page. Retrieved from

http://www.salesfusion.com

Service Request SR-r

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