Module Title: - IT: The Next Five Years


Task 1 - 20 Marks

'' Here, define the aims and scope of your case study. Briefly critique the method of enquiry you will adopt. Identify any assumptions you will be making in conducting your research. You may provide some descriptive narrative that gives brief background information on the organisation and an account of the circumstances or situation of the organisation. The case might focus on providing a discussion of particular issues, and/or managerial actions. ''

1.1. Aim

I have taken into consideration SKC Surat Food Co Ltd for my case study. I was privileged to have been associated with this company some time back. The purpose of this case study is to find out and comprehend the IS strategic plans of S.K.C Surat Food Co Ltd. The organization is playing in the 'Processed Food Industry' for the last 15 years in Mauritius and has many success stories and accolades under its name. The analysis will focus on their IS/IT strategies and the changes in these strategies. The study will focus on all the aspects right from the industry it plays in along with the industry growth, the competition and also will shed some light on the core competencies of the company along with the limitations it faces. It may be emphasized that this case study does not detail the theory used to reach the findings. I have rather concentrated on the details of the findings and its analysis.

1.2. Scope

The case study will stress on the role of the company in the processed food industry. The company's products also have a strong existing in other parts of the world because of their strong exports strategy and product quality. A reference to this export arm of the organization will be made as and when required. As far as the current case study is concerned, we will mostly focus on the industry, the organization, their product, their domestic IS/IT strategies and their future strategies to gain a stronghold in the industry.

The study only considers most important parameters for analysis considering the constraints of the number of words necessary to complete the mini case study. The techniques used in this study are PEST and SWOT. Specific diagrams are indicated wherever necessary. The information gained for preparing the mini case study originates from multiple references.

The study will consider the 'Mauritius Food Processing' industry under the aegis of SKC ltd. The study will mainly consider the information available on the Internet and experience of the person interviewed. It will only incorporate some of the information available in the local media that is not verifiable over the Internet but holds most significance. This is specifically to provide fair assessment of the information presented in the case study.

1.3. Method of enquiry

The method of enquiry does hold a vital place in any research work or case study. The method of enquiry used in the study is most important factor in deciding the effectiveness of it. For the current case a lot of inductive and deductive enquiry approach is used. The Soft System Methodology or commonly known as SSM is an effective enquiry system extending the boundaries of method of enquiry to the environment. The SSM provides a framework i.e. method of enquiry, to enable analysts present effective information within a sub-system. Analytical techniques such as PEST and SWOT allow giving a structure to the thinking thus enabling realistic outcome of the analysis.

SSM was developed out of systems thinking, when traditional systems thought was found to be an inappropriate set of tools for dealing with problems in which there was no clearly defined and commonly agreed set of outcomes. SSM was developed to enable rational action, taking these mismatches into account .The methodology was developed to help to make sense of the difficult problems which contained their own, internal contradictions. Many projects have failed as a direct result of their failing to take into account the various perspectives, motivations and vested interests which are at play within human organizations. SSM provides a structure which is engineered to deal with these difficulties. [1]

1.4 Organization Background

S.K.C Surat Food is one of the largest Manufacturer & Exporter of Pickles in Mauritius and has been successfully selling its products under the SURAT brand for more than 15 years. Mauritian consumer associates the name SURAT with quality and innovation in food products. S.K.C Surat Food Co Ltd. a company of the SURAT family is engaged in the manufacturing and marketing of high quality authentic & ethnic Indian processed foods i.e. Pickles, Spice pastes, Instant Mixes, Ketchup & Sauces, etc.

S.K.C Surat Food Co Ltd. had its humble beginnings in 1980 where Mr Shyam Surat along with his wife started selling fruit in local market and also manufacturing small quantities of pickles and spices at home. The business grows and Mr Surat decided to built a new colds storage to store fruits .and vegetable that he exported . As fruits and vegetable asre very fragil e, Mr Suraj embarked on a project to make pickle on a large scale and started exporting them.

As the company grows it keeps adding new products to its portfolio. The current range apart from Pickles & Ketchups includes Fresh Milk, Ayapana and Tea leave, ayurvedic tea ,etc

The Mauritian government is much aware of the food scarcity problem and is giving a helping hands to this type of entrepreneur that is doing much in the food industry . S.K.C Surat Food Co Ltd is looking forward to start large scale of vegetable and fruit cultivation and bredding of cattle for fresh milk.

1.5Current Situation

S.K.C Surat Food Co Ltd recently announced to build a food park where a new pasturage for the production of fresh milk and also a new cols storage to store frozen vegetable and fruit for local market and for export.

With the company getting final nod from the government of Mauritius, the company operations are in full swing. Recruitments are in full swing. Their marketing and business strategies are being formulated. Side by side the company is also looking for in investments in IS/IT system which will help them in decision making. For this they are planning to implement an ERP (Enterprise Resource Planning) which will ensure smooth working of the food pack.


Task 2 - 20 Marks

''Using quality sources of reference provide a summary of external drivers that are influencing the case under examination to make more use of IT. You are required to undertake an external environmental analysis of the industry the organisation operates within; what competitive pressures exist within the industry? How does IT/IS impact on their positioning for competitive advantage? What changes in IT/IS are likely to affect the organisation in the future? The important point is that analytical tools (e.g. SWOT, PESTEL etc.) are properly used and included in the appendices. The use of information technology/systems in the sector should be appraised and possible future technological innovations examined. Ensure all source material is acknowledged in the case study, including citations within the main body of the text.''

2.1 The market Study and analysis [2]

Many developing countries are presently facing serious difficulties of food supply and security with the recent explosion in food prices. Indeed, it is stated that this escalating 'global food crisis', except for the war periods, is unprecedented and likely to persist because of some structural changes in the world food system. The causes are multifarious.

The era of cheap food may well be over. Physical access to some food items may even be in jeopardy. That urgency to respond has particular resonance for Mauritius, a small island state (SIDS) prone to many characteristic limitations thereof: smallness; isolation; small internal markets; high vulnerability to natural and environmental disasters - and high dependency on imports. The latter have made us a net importer of food, and therefore especially sensitive to external shocks including the recent hikes in the prices of food and feeds, as further compounded by escalating freight charges and exchange rate fluctuations.

Our net food requirement is estimated at 690,000 t annually, up to 75% of which is made up of agricultural and food products imports which peaked at some Rs 23.4 billion in 2007, indicating a high level of trade dependency. The food import bill on a net basis has more than doubled during the period 2001/2007, from Rs 8.4 billion to Rs 21.0 billion. The major cause is the drastic increase in the import of processed food items (including vegetables) over the short span 2001 to 2006, from around a mere Rs0.2 billion to Rs9.0 billion, respectively. This trend is expected to continue.

The food habits of Mauritian consumers have shifted towards processed and convenience foods, with an exigency on quality, food safety and brands.

A reasonable level of self-sufficiency has been achieved in some plant-derived food items: almost 100% for fresh vegetables, with some 100000 t produced annually over an estimated land area of 4,200 ha. An average annual production of 13000 t of potato accounts for 60% self-sufficiency in this foodcrop; while some 5000 t of onion production makes up for one-third self-sufficiency in onion. The average total annual supply of vegetables, potato and onion including imports is estimated at 126,000 t.

Overall local production in the livestock sector excluding poultry accounts for around 5% of our total requirement in meat and for only 2% in milk. Although the country is considered self sufficient in poultry and eggs (almost 100%), this sector relies almost entirely on imported raw materials (approximately 145,300 tonnes annually) representing 80% of total feed requirements.

Our strengths lie, amongst others, in our historical attachment to agriculture; national ingenuity; resilience of the small agriculture sector in food production; and relatively good public infrastructure and institutional system.

The overarching national challenge thus is to realize a vision of a Mauritian Agri-Food system which, by 2015 and beyond, would have been restructured to become:

    (i) diverse and multifunctional; yet, given the indispensable role of food and the basic need for food supply stability, playing an enhanced role than hitherto in securing domestic food supply and improving nutrition and health;

    (ii) modern and competitive; sustainable economically, socially and environmentally;

    (iii) an integrated and enhanced part of the rural/whole socio-economy; and

    (iv) flexible and responsive to changes in consumer demand.

Addressing this challenge effectively demands a multi-pronged approach, with actions and interventions at various levels of the agri-food supply chain: resource management and utilisation and production systems; marketing systems and regulatory framework; international trade and distribution systems; and consumer demand.

In the crop sector, one certainty to contend with is our inability to produce the main staples, rice and wheat, under local conditions; and if ever this is attempted, it would still be negligible given our resource availability.

With the recent observed trend of an expanding consumption of processed food items, considerable scope exists for the development of the agro-processing sector thereby warranting an urgent action to boost up production of the raw materials.

The commodity development programme is thus categorised under six sub-programmes:

  • strategic crops for food sovereignty and nutritional security;

  • vegetable crops for higher self-sufficiency;

  • fruits;

  • ornamentals;

  • agro-processing and

  • promising crops and sustainable agriculture.

Government aim of the livestock programme is to increase production and marketing of locally produced milk, meat, poultry and derived products. Three sub-programmes are being proposed: milk production; meat production; poultry and pork.

The overall prices of milk and meat products continue to increase and this trend is expected to be more acute in the coming years. There is an urgent need to stop the decline, and even to increase local output as significant opportunities exist to expand production to meet our requirements.

The implementation of the programme will require funding from several sources identified as follows:

    (i) Food Security Fund under the Finance and Audit (Food Security Fund) Regulations 2008;

    (ii) Budgetary allocation determined on an annual basis and specifically relating to programme and livestock production and crop development;

    (iii) Private sector on account of commercial nature of their activities; and

    (iv) Development Partners, Regional Funds, and bilateral donors.

The implementation of all the measures proposed shall be done through a formal committee chaired by the Minister. A Programme Manager responsible for the implementation and monitoring has been proposed for each programme and will report to the main committee. The secretariat shall be provided by the FARC.

Our diversified agri-food sector has been fulfilling the food function in a direct manner, in kind, although not meeting domestic demand in either quantity or quality, with an overall self-sufficiency ratio of less than 30%. It generates a gross output of Rs8.3 billion annually, employing around 50000 persons directly or indirectly in various activities related to crop and livestock production, and agri-business.

The crops sector involves around 13, 000 small growers cultivating 0.25 to 2.5 hectares, and some 30 growers operating over larger areas. The production mainly caters for the local market. In addition, some 216 hydroponic agro-entrepreneurs are also producing selected vegetables and flowers over some 12.3 ha of protected structures.

A reasonable level of self-sufficiency has been achieved in some plant-derived food items: almost 100% for fresh vegetables, with some 100000 t produced annually over an estimated land area of 4,200 ha. An average annual production of 13000 t of potato accounts for 60% self-sufficiency in this foodcrop; while some 5000 t of onion production makes up for one-third self-sufficiency in onion. The average total annual supply of vegetables, potatoes and onions, including imports, is estimated at 126,000 t.

Fruit production consists of mainly banana, pineapple, and seasonal fruits such as litchi and mangoes, estimated at over 20,000 t annually, covering 46% of our needs in a total annual supply of fruits estimated at 47,000 t, over an equivalent of 725 ha of land. Up to 200 t of litchi are exported at reasonably high prices during November to January.

Livestock production is being undertaken mostly by some 3500 small breeders and around 100 medium to large producers including the poultry sector. Production is mainly for the domestic market, equivalent to an average of 46,000 t annually. Some 38,300 t of meat and poultry, including venison, were produced in 2007, of a gross value of Rs800M, over some 700ha of land (excluding chass�e).

Overall local production in the livestock sector excluding poultry accounts for around 5% of our total requirement in meat and for only 2% in milk. Although the country is considered self sufficient in poultry and eggs (almost 100%), this sector relies almost entirely on imported raw materials (approximately 145,300 tonnes annually) representing 80% of total feed requirements.

Significant attempts have been made in recent decades to develop the agro industry for a diversified agricultural sector. Its contribution in food and feed production is estimated at Rs 8.3 billion in 2007. Its weakness, however lies in its continuing over-dependency on imported raw materials, which may well be unsustainable now.

Imports - Quantity ('000 tonnes)

 

2000

2001

2002

2003

2004

2005

2006

Cereals

229.1

217

225

213

209.4

219.9

203.8

Pulses

10.3

10.8

10.4

10.4

10.9

11.3

11.3

Fruits

24.3

23.4

26

25.8

26.3

23.4

23.7

Meat

19.8

17.6

16.9

18.1

17.1

16.1

15.1

Dairy

21.5

22.6

24.9

23.6

23.9

22.4

21.7

2.2 External Drivers influencing the use of IT

As discussed earlier, there is a lot of potential in the Mauritian processed food industry waiting to be tapped. There are a few basic factors which are acting as external drivers influencing the use of IT in the organization

A. Social Outlook Change:

Change in social outlook does bring about a lot of changes .Ever changing lifestyle, paucity of time, busy schedule and change in the traditional perception towards processed and ready to eat food is driving the industry today. So in order to cater to the fast increasing demand, automation is increasing which is driving more and more use of IT/IS in the industry

B.Governmental outlook Change:-

The Govt has changed its overall outlook in recent time . Giving legal status to emails and other digital media, paper work has almost halved and the time taken for that has reduced much more. Even many government bodies accept application over the internet and one can even pay taxes online. Apart from that the governments strict norms on food processing also has added to the more use of automation and IT. It is all pervasive now .

C. Technological outlook Change:-

The most important aspect is to bring this unorganized industry into an organized posture is by a two-way technical conditioning should be targeted.

1) Agricultural Technology :- Technology in agriculture does have a good importance .The industry still to a certain extent depends on the traditional ways of agricultural procedures. New technology developed in the area of agriculture should be made available to the farmers so as to enhance the production both quality and quantity wise. Many such technologies exist and are being developed by a lot of agricultural colleges and industries. A few amongst them are portable computerized soil testing kits in which the farmer just puts some soil sample and the kit immediately processes it and gives the result along with the standards for that place and also the crop that the farmer can harvest on that land. A second of such development includes in interface with which the farmer can switch on or switch off the water pump in his field with the help of a sms or call from anywhere. Such kind of agriculturally related technology development and propagation is also important.

2) Information Technology: - An active use of IT will make sure that some formal common process is followed for all the functions in the industry. With the implementation, the sector will come under the organized sector with faster growth and predictable data for venturing out into exports and processing the product. With the implementation of an ERP, It will be easier to stick to the norms which are required to be followed in order to process the food and to export it. But an ERP for such an agricultural domain is virtually non-existent.

The ICT industry is leading become the fourth pillar of our economy and has being welcomed in most industries. Mauritius is now known as the cyber island with big international It firm like Google,Cisco,HP,Accenture and many more having a local branch in the island . All sector of the Mauritian economy is embracing the benefit of the It and this is also the case for the Agriculture and Food processing sector.


Task 3 - 30 Marks

''Using consequence analysis tools, provide a discussion on the likely impact of IT/IS on the case under examination. This section should focus attention on the internal resources/ competencies and capabilities of the company; for example, what are they doing that is either helping or hindering them in the use of IT/IS?

This analysis should be drawn from the 'effect/probability/action grids' (to be included in the appendices). In this section of the case study, the focus will be on the internal process, management and strategy of the organisation.''

3.1 Introduction

S.K.C Surat Food Co Ltd has announced that the Company has received 'In-Principle' approval of Government of Mauritius , Ministry of Agro Industry, Food Production and Security , for establishment of Food Park and a dairy project. This project is in line with the government policy to prepare for a food security programme and to reduce our imports of milk from Australia. [3]

3.2 Impact of IT/IS

With the implementation of an IT/IS, the group plans to accomplish the following points

  1. Control and maintain the working of the Food Park.

  2. To track and organize its customers CRM need to be implemented.

  3. 'Farmer Assistance System' to be introduced.

  4. core business has to be3 focused.

1) Control and maintain the working of the Food Park: - Controlling and maintaining the working of the food park is one of the vital tasks the company is emphasizing upon. Mr. Shyam Surat would not like to have an ERP set up for the manufacturing process. It would like to start with the implementation of functions like the Finance, HR, Controlling, Sales and Distribution etc. This implementation will make sure that anyone who is allowed to access the ERP from the Food Park will be able to draw reports. As the business grows in size and the number of organizations under the Mr Surat knows that an IT/IS is of the essence to maintain and control the show. As stated earlier, S.K.C Surat Food Co Ltd is not new to a concept of an ERP implementation. They are fully aware of the risks and costs involved in an ERP implementation. They also know that the break-even might take a long time.

But, S.K.C Surat Food Co Ltd is still very keen on its ERP[4] implementation decision. They are in talks with a local ERP vendor namely Nextiraone , which is to develop an entire new ERP customized as per SKC requirements and implementing it. They are fully aware of the advantages a successful ERP can have. This might as well just give them the additional competitive edge.

Once an ERP is implemented, it will set a lot of rules and regulations along with it. This will help the governing body to have a round the clock check of the working of the food park. In this way a standard set of protocols can be set which will help in maintaining the entire food park and this will go a long way towards developing the very idea of the company .

On the growth front, the company has huge growth potential. This is mainly due to the different governmental food subsidies, tax holidays etc as well as the huge market that lies untapped. With the working of the Food Park in control, S.K.C Surat Food Co Ltd can concentrate on their core line of business i.e. Food Processing. The PEST and the SWOT analysis also show that the environment is very favorable and had a lot of potential for growth. The analysis also projects that the company has its roots deep in the industry and is very likely to be successful in their growth endeavors.

2) CRM [5] implementation: - Along with all the above mentioned enhancements the company is also looking to implement a Customer relationship management. CRM consists of the processes a company uses to track and organize its s with its current and prospective customers. CRM software is used to support these processes; the software system can be accessed, and information about customers and customer interactions can be entered, stored and accessed by employees in different company departments. Typical CRM goals are to improve services provided to customers, and to use customer information for targeted marketing.

Decision on whether the CRM is to be inbuilt in the ERP application or whether a off the shelf CRM package is to be implemented is still going on. If an off the shelf CRM package is selected the CRM implementation will be fast. But in that case an interface between the ERP and the CRM package would have to be developed. The pros and cons of all the viable options are being discussed by the senior management.

3) The System of farmer assistance: - It is of utmost necessity that the farmers must be given assistance in all the forms possible so that there should not be any sense of alienation on their part. From the ERP implementation part, the company also focuses to strengthen its ties with the farmers and to make the farmers more and more independent and knowledgeable. For this, they plan to open a 'Farmer Assistance System'. The main aim of this system is to make the farmers more aware of the latest improvements in the agricultural technology. As a start S.K.C Surat Food Co Ltd has started distributing laptops to their most loyal farmers. The basic aim is to allow then or their children or family members to learn computers and to use the internet for knowledge improving.

Apart from that S.K.C Surat Food Co Ltd also plans to open a back office in their Food Park where there will in house experts in food technology, Fertilizers, Pesticides, Disease control etc. The working of this back office will be monitored on a day to day basis. All the farmers have to do is to log onto the website and ask his doubts to these experts. The doubts/ questions can be sent via an email as well as through a voice mail. A video conferencing facility is also available for those farmers who have a webcam and the needed bandwidth. Once registered on the portal the farmer can also sent his information via a sms.

Other than that what is mentioned above S.K.C Surat Food Co Ltd also plans to set up Mobile Connection Centers. These mobile connection centers will be associated with vans having net connectivity. They will reach the farmers who do not enjoy or have access to the internet facility. These connection centers will also have an expert in Agriculture if needed. The farmers can ask their doubts to the experts sitting back in the food park and will solve their doubts almost instantaneously. The center also plans to have a portable completely computerized soil testing unit to provide a complete guidance to the farmer. In places where regular guidance is not possible or required they plan to start a information kiosk in the villages which will ask the questions on the farmers behalf once every week and will revert back to the farmers. The locations for the Mobile Connection Centers and the Information Kiosk are being finalized by the board of the company .

Because of this endeavour It/IS system need to be properly developed for the company.This means that the back office must be fully computerized in order to accept queries in all possible formats. The office must be able to reply back to every question as early as possible and through the same communication channel. So technologically speaking the back office must be an advance up-to-date center.

4) Focus on Core Business: - With all the Food Park under control and with food relations with the farmers coupled with an ERP and a CRM, SKC will find it easy to focus on its core business. This will mainly be possible because of the streamlined process brought by the IT/IS implementation.

3.3 Analysis of the Effect/Probability/Action Grid

1) ERP Development may go wrong: - An ERP development is a very critical development process with attention to minor details very important. It is a very time and labor intensive process and so there is a little probability of the development going wrong.

2) ERP Implementation may take time: - An ERP implementation is a lengthy process. In this case the ERP is to be developed and then implemented which means additional time delay.

3) Farmer Assistance System will be merged into the ERP: - As the ERP goes on getting bigger and bigger it becomes robust and inflexible. So by the time the entire ERP is developed, it will be difficult to merge the system into the ERP. At the most an interface can be developed which will help the interaction between the ERP and the 'Farmer Assistance System'

4) Farmer Assistance System will be functional: - The system is very much feasible and helpful for the organization in the long run. This system shows the foresight the management of SKC has as this will help in bonding with the farmers, which is a clear gain in maintaining their core business.

5) ERP will ensure smooth working of the Food Park: - The ERP once implemented will definitely help in controlling and monitoring the Park activities.

   

Probability

Effect

 

Very Likely

Possible

Unlikely

Negligible

Fatal

       


Severe

   

ERP Development may go wrong

 


Slightly Negative


ERP Implementation may take time

     

None

       



Favorable

 

Farmer Assistance System will be functional

Farmer Assistance System will be merged into the ERP

 


Highly Beneficial

ERP will ensure Smooth working of the Food Park

     


Task 4 - 25 Marks

''Drawing on the previous two sections, the fourth section of the case study should provide an overview of key issues that are directly linked to systems development. The aim in this section is to show how the external and internal environment of the case under examination influences systems development. Your discussions should focus on the initial stages of the SSM (feasibility, analysis and design aspects).''

For the proper system development the key issues that are directly linked with the system have to be stressed upon with a view to making a conclusive inference. It is to be noted that both external and internal environment of the case under examination has been taken into consideration for the proper development of the system. Let us first use and analyze the spiral model as mentioned below:
[6]Source: - http://www.stsc.hill.af.mil/crosstalk/2001/05/boehm.html

The spiral model, also known as the spiral lifecycle model, is a systems development lifecycle (SDLC) model used in information technology (IT). This model of development combines the features of the prototyping model and the waterfall model. The spiral model is favored for large, expensive, and complicated projects. A preliminary design is created for the new system. A first prototype of the new system is constructed from the preliminary design. This is usually a scaled-down system, and represents an approximation of the characteristics of the final product. A second prototype is evolved by a fourfold procedure:

  1. Evaluating the first prototype in terms of its strengths, weaknesses, and risks.

  2. Defining the requirements of the second prototype

  3. Planning and designing the second prototype

  4. Constructing and testing the second prototype

At the customer's option, the entire project can be aborted if the risk is deemed too great. The spiral model is used most often in large projects. For smaller projects, the concept of agile software development is becoming a viable alternative. The US military has adopted the spiral model for its Future Combat Systems program. The spiral model promotes quality assurance through prototyping at each stage in systems development.

Steps for developing and ERP for S.K.C Surat Food Co Ltd

Step 1:- Evaluating the first prototype in terms of its strengths, weaknesses, and risks (1st Quadrant)

In this phase the first prototype should be considered. In this phase the objectives of the new model are carefully considered. The 'X' shows the cumulative cost of the project while the 'Y' axis shows the total time needed for the development. The wounds around these two axes will show the iterative process that will be followed for the development of the system. The first prototype should be thoroughly checked in terms of its strengths, weaknesses and risks so that we can do away with the limitations in the upcoming prototype

In this phase the following processes will take place:-

Feasibility Analysis: - This study will make sure to understand if the system under development will be feasible to develop. Various feasibility tests both technical and non technical should be carried out to ensure that the development work does not derail during the iterative cycle.

Requirement Specifications: - The requirements from the prototype under development must be carefully scrutinized. A list of requirements is jotted down.

Step 2:- Defining the requirements of the second prototype (2nd Quadrant)

The objectives or the enhancements those are required in the upcoming prototype model 2 are selected in this phase of development. The requirement specifications are decided and are then frozen. The need for any other additional specifications should be catered to in the upcoming prototype. Each model will be checked to see if it as per the specification requirement. It is in this phase the iterative model will begin to take shape from just a prototype to an operational prototype. Each iterative prototyping model has its own drawbacks and risks. These risks and drawbacks must be analyzed and must be done away either in the next iterative cycle or if not possible then, in the next prototyping iteration.

In this phase the following processes will take place:-

Requirement Validation: - The requirement validation stage is primarily for changes and additions that are done in the iterative model to make it meet the requirement specifications. For every minor change in the system, comprehensive analysis should be done to make sure that nothing in the iterative model is going against the requirement specifications as well as the core and the additional functionality are retained and are working fine.

Step 3:- Planning and designing the second prototype (3rd Quadrant)

Each iterative model when comes to this phase has a number of functions attached to it. The functions attached are based on the iteration number of the model. For example when it comes to simple prototype 1 iteration number 1, then the only thing that is considered is the concept of operation .As the model iterates through from phase 2 to phase 3 emulations are carried out. Emulations are done by supplying the model with external environment parameters and the behavior is checked in a controlled test environment. Each emulation cycle has software RQTS and requirement validations attached to it.

In the later stages of iteration where the model is believed to have matured a bit, its design is then taken into consideration. Not only the software product is designed but it is also verified and validated as per design requirements frozen for that iteration of the model. During this phase a number of models can also be generated to evaluate which model will fit the proposed system more.

During the last iterative cycle of the model where it transforms from a prototype to an operational prototype, benchmarks are set to gauge the models robustness. The model is completely developed and detail design is made. The coding is completed and the operational prototype will be given for testing. After coming out successfully through these tests the module is fit for implementation.

Step 4:- Constructing and testing the second prototype (4th Quadrant)

In this phase, each iterative prototyping model will have a detail plan attached to it. During the first few primitive iterations of the model there is a RQTS life cycle plan attached to it which will actually give more details about the detail design and plans of the iteration.

During the emulation of the iterative model this phase has a development plan associated with it which will completely spell out the development plan and the time guidelines and the resource allocation plans etc. When different models of the prototype are being carried out this phase will have integration and test plan associated with it so that it will come in handy during the proceeding iteration.

After the operational model is implemented the future enhancements are planned. Next phases of the model are planned and the most recent implemented production model is taken as prototype no 1 and the entire process it again followed for each enhancement.

Every time the iterative cycle proceeds from quadrant 4th to quadrant 1st, a review is done. It is very obvious that as the iteration cycle increases the time and the money invested also increases. Normally a waterfall model would have cost much lesser, but when it comes to implementation and development of critical, large and complex systems, everybody the world over relies on the spiral model because of its low failure rate. The spiral model also promotes quality assurance through prototyping at each stage in systems development


Reference:

Task 1

* NCC Class note.

* [1] http://www.orsoc.org.uk/about/teaching/StrategicProblems/m_s_3frs.htm

Task 2

* NCC Class note.

* http://www.gov.mu/portal/site/moa

Task 3

* NCC Class note.

* [3] http://www.gov.mu/portal/site/moa?content_id=c4da6951f3e5a110VgnVCM1000000a04a8c0RCRD

* [4] http://en.wikipedia.org/wiki/Enterprise_resource_planning

* [5] http://en.wikipedia.org/wiki/Customer_relationship_management

Task 4

* [6] http://www.stsc.hill.af.mil/crosstalk/2001/05/boehm.html

* NCC Class Note

Appendix:

Pestel Analysis: http://en.wikipedia.org/wiki/PEST_analysis

Swot Analysis: http://en.wikipedia.org/wiki/SWOT_analysis



Appendix:

Pestel Analysis

PEST analysis provides a framework of macro-environmental factors to scan the external environment. It serves as a basic analytical tool for understanding market growth or decline. The framework evaluates the impact of regulatory, economic, social and technological factors on the business environment. It analyzes how the external environment may create opportunities or threats for an organization.

An analysis of the following four components of the macro-environment can help you to think how your business should respond to these external influences. PEST Analysis gives a logical structure, providing clear presentation for further discussion and decision-making.

PEST analysis is a useful strategic tool for formulating business strategies, marketing planning, business and product development. It ensures that the organization's performance is aligned positively with the external forces of change that could impact business environment.14

2.1 Political Factors

� This project will bring light to the food scarcity programme.

� The ministry of Finance and the Ministry of Agriculture , food production and Security has earmarked fund for entrepreneur to invest in this business and produce high quality of food for the population .

2.2 Economic Factors

  • Being a pioneer in this business line all , investor will reap premium revenue and profit.

  • This program provides tax free for investors.

  • Government fund is available for startup .

6.3 Social Factor

This project will have a very social aspect to it as it deal with the food to be consume by inhabitant of the island. Thus this project will bring an end to the ford scarcity and the population will have fresh and good for health product to consume at a better price.

This project will create lots of jobs .

6.4 Technological Factors

  1. Technological unawareness has hampered the growth of the mauritian Processed Industry. For years together now the lack of basic infrastructure has proved to be the basic area of improvement.

  2. The biggest bottleneck in expanding the food processing sector, in terms of both investment and exports, is lack of adequate infrastructure.

  3. To export the food product there are a variety of quality checks and norms. Lately after these were made mandatory by different national and international norms, awareness has increased amongst the masses about following the norms for food standards and safety.

  4. Technologies like canning, bottling, tetra packing, food grade packing, Rodent proof packing etc have gained momentum to increase the shelf life of the processed product.

SWOT ANALYSIS

SWOT is an acronym for Strength, Weakness, Opportunities and Threats. SWOT analysis is a planning exercise to assist in strategic planning process.

7.1 Strength

  1. SKC has around 15+ years of experience in the food processing industry.

  2. SKC has been apt to make relationship with farmers from whom SKC can buy raw material. Some of the farmers are with the group for more than 15 years.

  3. The employees are well trained and they share a very friendly working environment in the organization. The MD of S.K.C Surat Food Co Ltd. is a very down to earth man which makes him more approachable. The entire works like a family.

  4. Its geographical location gives it a very competitive advantage. It is situated on the National Highway which allows the organization to have both the suppliers of raw material as well as the markets in the vicinity.

  5. SKC uses computers for their payroll and accounting needs. The software suffices their current need.

  6. SKC has developed a brand identity for them self.

  7. They have abundant availability of raw material

  8. Priority sector status for agro-processing given by the central Government has given them a boost in the arms to expand.

  9. Vast domestic market and a huge potential to expand their business product line.

7.2 Weakness

  1. SKC has a stronghold mostly in Mauritius only. Many other Indian Ocean markets remain untapped

  2. Currently there is no IS/IT system in place to assist the decision making of the management.

  3. The marketing strategy can be more aggressive considering the fact that the company already enjoys brand identity.

  4. There is a lot of uncertainty over the supply of raw material especially fruits and vegetables which are seasonal in nature.

  5. Earlier there lack of adequate quality control & testing methods as per international standards

  6. Inefficient supply chain due to a large number of intermediaries.

  7. High requirement of working capital.

7.3 Opportunity

  • With a variety of spices, fruits and vegetables to select from, SKC can greatly increase their product line.

  • The customer base is more open to change. So a range of new products will be openly accepts and tried by them.

  • Masses growing vegetarian and calorie conscious might help SKC indulge in health drinks sector.

  • SKC has a large crop and material base offering a vast potential for agro processing activities.

  • Favourable demographic profile, changing lifestyles, rising income levels and changing consumption patterns is throwing opens immense potential market in front of SKC.

  • Integration of development in contemporary technologies such as electronics, material science, bio-technology etc. offer vast scope for rapid improvement and progress

  • Opening of global markets may lead to export of our developed technologies and facilitate generation of additional income and employment opportunities.

7.4 Threat

  1. Taking into consideration the huge potential the market carries, the threat from new comers into the market is inevitable.

  2. Competition from global players is a major threat as they come with both, huge capital as well as latest technology.

  3. There is always a threat of loosing trained manpower to other industry or other profession for better working conditions.

  4. Affordability and cultural preference of fresh food always remains.

  5. The cost of packaging is substantially high.

  6. Environmental factors as Mauritius is quite often visited by Cyclone always will have an upper hand and will call in for uncertainties and variances in quality and quantity of the raw material.

Source: ChinaStones - http://china-stones.info/free-essays/business/skc-surat-food-co-ltd.php



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