RENEWAL OF THE INFORMATION SYSTEM AS A STEP TOWARDS OPTIMISATION AND IMPROVEMENT OF THE BUSINESS OPERATIONS OF ABC, d.o.o.

The diploma thesis consists of an introduction, a theoretical part and a practical part. Finally, the results of improvements that contributed to the optimisation and improvement of the company's business operations are presented. Based on theoretical findings and practical experience, the procurement processes, inventory management and the issue of sales prices in a retail company were collected and presented.

Solution and Method

The diploma thesis consists of an introduction, a theoretical part and a practical part. The introduction defines the field that is the subject of the research, the purpose and objectives, basic assertions, assumptions, limitations and research, as well as the anticipated research methods. The theoretical part describes the characteristics of a trading company, the processes of procuring merchandise, inventory management, retail sales and information technology in a trading company.

The retail trading company is described, along with the advantages and disadvantages of the old and new systems. In the practical part of the diploma thesis, the procedure for implementing the new retail programme and the problems encountered during the renewal are presented.

Results

Finally, the results of improvements that contributed to the optimisation and improvement of the company's business operations are presented. Based on theoretical findings and practical experience, the procurement processes, inventory management and the issue of sales prices in a retail company were collected and presented. New findings were gathered and new technologies in the field of information technology were described.

The importance and usefulness of information as the final product of information technology were described. The observed company was briefly presented, the old information programme was described and compared with the new, more modern one. The weaknesses and problems that the company identified in its operations concurrent with the use of the old information programme were described.

The reasons for its replacement were explained. A SWOT analysis was carried out as a comparison and aid in deciding between the old and new retail programme. The technology of the new 'MPC' programme was briefly described, which represented a major change in both the technique and philosophy of the programme.

The key advantages and characteristics of the new system were defined, and the procedure and methodology of implementation, user training, software installation and problems during the renewal were described. Through conversations with employees and with the data made available to them, an analysis was carried out, results were presented and the changes that the new 'MPC' programme brought to the company were described. The processes of the company's procurement function improved.

Employees can better organise their working time. The quality and quantity of work performed improved. The same number of employees complete the work process in less time and with fewer errors.

Employees have specialised by field, which will consequently also influence the long-term increase in the level of their expertise and productivity. Through their further education and use, they will more easily upgrade and improve the new 'MPC' programme. By using it, they will more easily set new goals and, what is even more important, they will also achieve them more easily.

New analyses are very important in planning and decision-making. Through the analysis carried out, it was established that the introduction of the new 'MPC' programme influenced the optimisation of business operations in the company. Through the analysis of the results of improving the management of merchandise inventory, the importance of inventory in retail trade was first recognised on the basis of theoretical and practical findings.

Inventory is one of the key components of their daily business operations. The task of management and leaders is to achieve a balance between the advantages and disadvantages of inventory. Every wrong decision represents costs, either financing costs or customer dissatisfaction.

The main problem in the observed company was excessive debt for inventory and consequently high inventory financing costs. With the introduction of the new programme, inventory reached its optimal value. Through comparative analysis, they investigated how much financing costs the company saved upon the introduction of the 'MPC' programme by reducing average inventory.

The weight of importance in the company will now shift to maintaining inventory at a level that satisfies customers. Company management must maintain this achieved condition and sustain it. The analysis proved that with the reduction of average inventory, financing costs drastically decreased, which of course has a positive effect on better business results for the company.

The diploma thesis also described the issue of controlling and monitoring procurement and retail prices, which had a direct impact on achieving the price difference and thus the company's success. The analysis proved how important an influence consistent monitoring and timely and correct changing of procurement and retail prices has. With the introduction of the programme, the degree of human unreliability was reduced to a minimum.

Two to three employees are now responsible for monitoring prices, who have narrowly specialised in their work and perform it more accurately and quickly. It was established that business success improved by almost 1 to 1.8 percentage points compared over a period of two years. By changing the business environment, by implementing new technologies and continuous improvements in the field of business reorganisation, it was proved that the introduction of the new retail programme in a trading company engaged in retail proved to be the right decision for the company.

It is an important fact that company management recognised in time the signs of unreliability and weaknesses in the functioning of its employees with the help of outdated information technology and took appropriate action whilst still timely. It was established that the decision for a new information programme was difficult and lengthy. Despite dissatisfaction, employees in the company did not want to face new challenges at all.

Accustomed to daily established routines, they did not want changes. They knew that every such change brings concurrent problems that they did not want to face. Additional education and personal engagement were necessary.

Nevertheless, a small group of employees, despite all the difficulties, did carry out such a demanding project. In this diploma thesis, the processes of renewing the information system in the company ABC, d.o.o. were briefly presented, and some of the advantages that the 'MPC' software solution offers were indicated. With the new information system, productivity and business success increased, procurement and sales processes improved, but what is particularly important is the fact that the current information system provides quality information both about the business operations of the entire company and individual business units or just the profitability of an individual transaction.

This gives management a tool that enables effective decision-making, thereby increasing the company's competitive advantages, which also enables greater business success for the company. Despite the fact that the company successfully carried out the phase of introducing the new information system and is already benefiting from numerous advantages that this information system offers, the company must not rest on its laurels and forget about the further development of information solutions. The programme is designed broadly enough and is far from being fully utilised.

It is important that employees continue to educate themselves, expand their knowledge and thus their needs for information. The greatest attention should be devoted to upgrading the information system by improving the ordering system with the min-max method, by connecting at least with the information systems of major business partners, which would enable the development of electronic business, thereby fully utilising the possibilities of the renewed information system and taking the next step in optimising and increasing business productivity.