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CASE STUDY-4 MIS at Kalsi Agro International

Kalsi Agro International is a medium sized company in India with 1600 employees. The
company manufactures special machines and implements for the agro based industry, both
for farmers and food processing plants. The company buys material and components from
vendors located in India, Japan and Germany. Products are sold either to wholesalers or
directly to clients (from a mailing list of about 8,500 customers). The business is quite
competitive.

The company has the following information systems in place:

i) Marketing
ii) Financial accounting
iii) Engineering
iv) Human Resource Management
v) Manufacturing

These systems are independent of each other and only the financial accounting system is LAN-
based.

The company is having profitability problems. Cash is high in demand and short supply. It is
proposed that the company explores the possibility of using information system to improve
the situation. However, Vice president of finance, Mr Mohinder Bagla objects to the idea,
claiming that most of tangible benefits of Information Systems are already being realised.

Assume that you are invited as consultant by the managing director of Kalsi Agro
International.

a) Prepare a list of potential applications of information Systems that you think could
help the company.
b) Do you think an integrated information systems would further improve the
performance of the company? Justify the recommendations.
ANSWER:

The benefirs of MIS are not always tangible. The initial cost scarce many managements to
adopt MIS. Never the less it is a must to survive and thrive. Initial cost will be converted in 2
to 3 years in most of the cases.

I would suggest a web based ERP( Enterpise Resource Planning) Portal for Kalsi.

ERP with all its components such as

 Manufacturing
 Inventory Management
 Distribution
 Engineering
 Warehouse
 Research and Development
 Sales
 Marketing
 Purchasing
 Customer Relationship management(CRM)
 Legal
 Accounting/ Finance
 Human Resources Operations/ administration
 Document management and Control with Access Control ( Department wise / Job
responsibility

Customer relationship Management (CRM)

A happy customer is lifelong customer and may bring more customers. Better business
relationships with wholesalers, dealers and customers will bring in more business and
more profits.

Kalsi has 8,500 customers(mailing list). Managing 8500 customers is a huge task and time
consuming. CRM can be used to manage company’s vendors.
Integrated Information system would further improve the performance of the company.

 Company will be able to produce better results using effective utilization of


resources if systems are integrated.
 Company will be able to forecast its growth using decision support systems. And
adopting predictive analysis using what if method.
 By combining the legacy systems better management decisions can be taken.
Since integration of consolidated statements of Marketing, Manufacturing,
Engineering unit, Human Resource department and Financial department status
of company will be better analysed and corrective measures can be taken to
improve the financial health of organization