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Information Systems & the Import/Export Business
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Examines some possible applications of information systems resources relevant to the import/export business.... More...
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Paper Abstract:
Examines some possible applications of information systems resources relevant to the import/export business.
Paper Introduction:
INFORMATION SYSTEMS AND THE IMPORT/EXPORT BUSINESS
Introduction:
Although the computer revolution is well under way, there are many companies who are not taking advantage of the opportunities available because of lack of expertise and lack of confidence in their ability to acquire the appropriate systems at reasonable prices. There is a baffling array of systems available, with choices at every level of hardware, software, networks, electronic data dissemination, and expert systems. Yet, to remain outside the arena of computerization is to risk falling behind competitively. In addition, the import export field is particularly well suited for computerization because the level of information generated, and received, is very high.
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Another important problem specific to import-export is the sheer volume of individual companies and organizations even asmall company would need to connect with. Although the impulsemay be to add new technology in order to resolve organizational problems,this is not always the appropriate response. The point of using software for export needsis efficiency. One of the major problems withcomputerization has been the disempowerment of workers through top-downmanagement. What seems more appropriate is some combination ofcurrently available hardware and software coupled together in local areanetworks (LANs), with those LANs bridged between offices and making use ofother telecommunication capacities.Hardware: Much of what is needed can be accomplished through the use ofpersonal computers, although it might also be appropriate to haveminicomputers and mainframes involved in larger companies. For example, most of the individuals hequotes indicated that purchasers should avoid the cutting edge, or brand-new equipment, but also not stay with older equipment simply because it'scheaper. Easy linkages across functional boundaries, and increasedintelligence, productivity, and creativity through the development ofrapidly forming and changing multidisciplinary teams; and, 3. Atemporary possibility is an imaging set-up, but LaPlante (1994) does notrecommend that unless the company is certain that business will benefitfrom the capacity to create an exact image of original documents from thecomputer. Forbes, 153(1): 9 .Derfler, F.J., Jr. Particularly effective would be a networkrelying on an intelligent hub that was linked with other officesinternationally through up-to-date telecommunications equipment. A better capacity to see the organization's market clearly andefficiently. Schwartz noted that there are different kinds of software packagesthat can range from the small-scale, at about $5, and appropriate toPCs, to the international, very large-scale programs starting at about$25 , , which require minicomputers. However, the technology is becoming so mainstream that anylarge cost differential may not be justifiable. 1. Product strategies: Timing your upgrades. The earliest expert systems were applied systems usedin the sciences, such as expert systems serving as diagnostic tools. PC Magazine, 13(1): 189-243.Strom, D. These fall in twocategories that might be appropriate for import-export. Morerecently, expert systems have begun to be developed for other kinds ofpurposes, including business (Harmon and King, 1986). According toEvan Schwartz (1993), the most important issues that computer software inimport-export businesses must address include the generation of forms,compliance with assorted regulations, and tracking of overseas customers. 1 as a good secondchoice, noting that in combination with Lotus Notes, it offered the mostsophisticated workgroup capabilities around. For example, in thinking about the latter, information ina normal organization is filtered through several layers of management andemployees becoming dilute and distorted in the process. According to the Harvard Business Review (1993), this is the kind ofmanagement requirement that will become increasingly obvious ascomputerization increases. As noted above, newtechnology can create a whole new layer of problems; technology is not anautomatic panacea for organizational failures or challenges. Less is more. It is the brain -or more accurately, the various conceptions of the brain and itsfunctioning - that has served as the model for the development of allmodern information systems. (1994). Fortune, 128(7): 44-54.LaPlante, A. NY: Harcourt Brace Jovanovich.Rothschild, M. 2. How to buy a PC server. Since import-export focuses ondealing with companies and agencies in many different countries, and timezones, a system that is not tied to a particular country's 9-5 workdaywould be more efficient.Software: The overall system is not complete without appropriate software,which must serve multiple purposes for the business owner. As Holtzman (1989) noted, the intelligentdecision system is not a stand-alone artificial intelligence set-up, but asupportive system that allows the manager to attempt many simulations ofscenarios until the optimum results are obtained. Its genesis in the realm offiction meant that artificial intelligence was connected with essentiallyhuman traits, including embodiment. Indeed, asseveral authors indicated, and as many horror stories note, choosing thewrong information system can cost a company millions of dollars, whileultimately failing to resolve organizational problems. (1994A). (1989). Strom (1994C) discussed the problems involved simply in purchasing PCservers which, as he noted, are confusing to define. Artificial intelligence also hasits roots in the early monster tales, such as Frankenstein by Mary Shelley(Patent, 1986). PC Magazine,12(21): 335-378.Haeckel, S.H. There are no expert systems or artificialintelligences that can make that decision for a company.Conclusion: In exploring the current business and information systems literature,it has become apparent that systems are available that would enable even asmall import-export business to become more efficient and productive. Networks comprisegroups of personal computers which are gathered together by a device calleda hub into a local area network. Another important package for import-export is an appropriatespreadsheet software application. One of the more revolutionary ideas associated with the developmentof more and more advanced information systems is the elimination of wholelevels of staff, including such employees as middle managers andsalespeople. Strom (1994A)discussed the problems just with the installation of E-mail, including lossof data security. (1994). One of the dangers withseeking out lower-cost vendors is that they will not remain in businessover the long-haul, making it difficult to obtain appropriate maintenanceor upgrades. Strom(1994B) discussed upgrades in particular, but much of what he had to sayapplies to initial purchases. (1994). Nonetheless, the ATM are soadvanced that they are not particularly useful at present, with theirmultimedia blend. The problem with electronic data interchange, however, is thatcompanies at both ends of the data exchange must have the same technology.For import-export, with its diversity of customers and organizationalarrangements, electronic data interchange is not yet appropriate. Some PC servers aresimply desktop PCs that are modified, while others are actually createdexclusively to be servers. When you're gagging on E-mail. This can requireeither expertise or equipment that is beyond the reach of many small firms(Strom, 1994A). With the reduction and downsizing occurring inmajor corporations, and the increasing computerization, managers must learnhow to coordinate the interface between information systems and humanbeings without as much face-to-face and daily interaction. However, with increasing theoretical and technical attention to thedevelopment of artificial intelligence, it soon became apparent that theproblem was not going to be easily resolved. While a smaller import-export company may not be able to afford a full-time employee as a directorof information systems, at a minimum, the company should employ aconsultant for any important changes. Thus, employees in the United States, London, andSaudi Arabia would be able to communicate directly about deals involvinganother company that was located in a fourth country, or had severallocations worldwide. In the following pages, the intent isto examine some possible applications of information systems resources tothe import-export business. This means that users mustchoose a gateway system that provides for common ground with the vastmajority of their clients, government agencies, etc. In his example, the system would be designed to provide a PC-basedvideo server plus telecommunications charges directly tied-in to eachcustomer. Andy Kessler (1994), for example, suggested a plan for customerempowerment that completely eliminates salespeople, although maintaining amarketing department. Along with needed information, however, is a frequent deluge ofunnecessary and repetitive information. Forbes ASAP, April 11, 1994.Strom, D. The manager's task, then, is to be cautious, but not so cautious asto lose the competitive edge; adventurous enough to take advantage of newtechnology, but not so adventurous as to commit to the wrong newtechnology. In looking at the economics, he indicated that agood salesperson could cost up to $1 , per year, including benefits,while a deluxe PC-based set-up could easily serve four major accounts forless than that. Forbes ASAP, June 6, 1994.Strom, D. Computers were viewed as the preliminary form for the ultimateartificially intelligence machine. Forbes ASAP, April 11, 1994. (1994). (1993). Kirkpatrick (1993) emphasized the manager's task in makinginformation technologies user-friendly. The notionof an artificial intelligence, generally infused into machinery, as inintelligent robots, developed from earlier conceptions of mechanicalpeople, such as the story of the golem. There are, however, many other aspects of the import-exportfield that can be handled through combinations of computers,telecommunication devices, and electronic data-distribution equipment.Communications and networking are central to success in the import-exportfield and these are two main areas which information systems are designedto address. Synoptics also offers a switchedEthernet system which allows each PC to have its own individual link to thecentral hub, avoiding any delays in the transmission of data. Bridging of the different LANs nationally, and globally.4. In an opennetwork, however, all the raw information is available within the net.This allows upper management direct access to that information for decision-making. (1993). For example, Compaq and IBM provide PC serverswhich include at least 3 to 1 processors, 16 megabytes, and up to 24 gigabytes of disk storage, power supplies, and other components. Thus, for a long period of time,theorists were unable to separate the concept of an artificial intelligencefrom its earliest incarnation as the humanoid robot. . Forbes ASAP,February 28, 1994.Strom, D. Rothschild (1994) noted that both voice mail and E-mailcan lead to information overload and increased employee time handlingunnecessary information. Initially, high-end personal computers with appropriatesoftware, including potentially Lotus Notes and Lotus 1-2-3 for Windows.These computers should be probably from the specialized server category,although larger companies may want to purchase one of the superservers. Another development worth examining for the import-export business isthe Lotus Notes software which allows for direct customer interfacing withcorporation's computers. Reading, MA: Addison- Wesley.Kessler, A. Artificial intelligence is a concept that was originally mostfully developed in science fiction, with varying results for the world. As he put it: Networks connect people to people and people to data. In some respects, it is too sophisticated, toomuch technology for the needs of the industry, particularly for relativelysmall companies. Since it is not possible for one person to be in more than one placeat a time, owner/managers have always been required to delegateconsiderable authority, as well as place a great deal of trust in employeesworking in other countries. Thus, the introduction of voice mailand E-mail can create a whole new workload as users flood the network withinconsequential information. Imaging your sea of data. Forbes ASAP, April 11, 1994.Kirkpatrick, D. How to buy a PC server. In looking at expert systems, and intelligent decision systems,however, it does not seem that this technology is the most fruitful one forthe import-export business. For example, Stinson (1994) recommended Quattro Profor Windows, Version 5. Expert systems: Artificial intelligence in business. And, information being power, that can greatly hurry the process of cutting slices from the old wedding-cake bureaucracy. At a minimum,however, they should deal with the issues mentioned above. Essentially this formatprovides the potential for exchanging all business documentationexclusively at the electronic, data-net level. NY: John Wiley & Sons.Holtzman, S. Expert systems have been created for many different disciplines,including medicine and psychology. Forms, such asbills of lading, must address each countries legal requirements to proceedexpeditiously through customs. Having a program, of developing one, allows for computergeneration of these documents, rather than individual typing of each one. Ultimately, however, the ATM can be quite useful for business,including the import-export business. Fortune, 13 (1): 44- 56.Stinson, C. and King, D. That choice - between new organizational strategy or technology - isthe essential choice that managers face at this time. This is an important management system. (1994). Insome instances, artificial intelligence was seen as supportive ofhumanity's evolution, but there were also a number of cautionary tales ofartificial intelligence run amuck or artificial intelligence that grewsuperior to human intelligence and took control of the world. What the ATM provides that othersystems cannot match, at present, is the blend of audio, video, andinformation at incredibly high speeds that allows the viewer toinstantaneously examine offerings and make selections. This software would be applicable to import-export at two levels.Lotus Notes would allow the central office and subsidiary office tocommunicate more readily for tracking and other purposes, while its furtherdevelopment would allow for linkages between the import-export business andits client companies. This expert system is essentially asupport service for making a multitude of decisions, given constantlybranching possibilities. to pass directly between us. The hub controls the interface betweencomputers, supplying the connections, dianosing problems, and makingdecisions along the whole network. The essence of the expert system is abuilt-in capacity for dealing with multiple options and continuallybranching decisions. Networks are almost exactly what they sound like. The major purveyors of intelligent hubscurrently are SynOptics and Cabletron Systems, which create some of themore complex systems; however, they have competition at the lower end fromvendors attempting to create clones (Churbuck, 1994). Scientists believed that as the technology was refined,computers would acquire the capacity that we term "intelligence" (Patent,1986). Yet allemployees, and managers, can benefit from the new technologies if theirfears are allayed and they are given the appropriate support. Software to carry you through the export thicket. Managing by wire. (1993). Forbes ASAP, June 6, 1994.Schwartz, E. (as the most impressive new spreadsheet software), but if the business decides to go with Lotus Notes for other purposes, anappropriate choice might be one of the Lotus spreadsheet packages instead.While Stinson indicated that these were not as sophisticated as QuattroPro, he recommended Lotus 1-2-3 for Windows, Release 4. Essentially, ATM isthe next step beyond voice mail and E-mail, providing a form of rapidstreamvideo mail. They had limitations of several types,including severe limits on creativity, but these were initially not seen asintrinsic. An Ethernet linkage between personal computers which providesfor individual linking of each computer to an intelligent hub. Rather than have a paper file system, documents are stored inthe database to be called up given the need, and transferred via standardfax technology. This overallpackage serves several purposes including inventory management, client PCmonitoring, server monitoring, traffice monitoring, and reporting andnotification. In addition, the import-export field is particularlywell-suited for computerization because the level of information generated,and received, is very high. What would be appropriate for the import-export business is what iscalled an intelligent decision system. Forbes ASAP, August 29, 1994.Patent, D.H. Managing in a wired company. For example, one type of system might make use of personal computerswith approximately 16 megabytes of random access memory connected to aPanasonic jukebox via a Novell NetWare network. Finally, one of the most important elements of the total softwarepackage is what is termed "network management software". As a consequence, it is not possible justto rely on a simple system; in order to be effective, an information systemin import-export must be tailor-made for the industry. ----------------------- 2 The quest for artificial intelligence. It is important to remember that artificial intelligence was notinitially a scientific, or business, concept. Network management behind the scenes. (1994C). End product: Depending upon the size of the import-export business, the endproduct information system should include most of the following. One of the problems with newtechnologies, and a challenge for the manager, is that they can create newproblems while solving old problems. However, computerization also offers numerousadvantages to employees, if used properly, in terms of increased jobproductivity and creativity. There is a bafflingarray of systems available, with choices at every level of hardware,software, networks, electronic data dissemination, and expert systems.Yet, to remain outside the arena of computerization is to risk fallingbehind competitively. For example, in thinking aboutgenerating shipment labels, or other kinds of customer documentation, it isoften necessary to create documents in different languages. As Thomas Stewart (1994) indicated, the essence of networking, whichis the fastest-growing phenomenon in the field of new technology, is thatit automatically changes the way in which organizations operate and aremanaged. The network, then, is the repository of all the information.Nonetheless, it still requires the appropriate software, good management,and skilled employees to access that information and utilize itappropriately. The newest, cutting-edge software for import-export, however,involves the use of electronic data interchange. Stewart(1994) noted the importance of creating a climate of trust in theorganization, along with a focus on managing people, and supporting them,rather than tracking the work. (1994). It is possible, of course, simply to rely on a high-level word-processing system, combined with skilled operators, to deal with documentgeneration. For the best overall product, Derfler (1993) recommended the Simplenetwork Management Protocol which is created by Frye Computer Systems.This combination of products provides for the creation and manipulation ofa commong database and for early warning of any network problems of needsfor software reconfiguration. Thereare, of course, management issues, not the least of which is addressing theconcerns of employees that they may all be replaced by more and moresophisticated equipment. Because the network is the center of the information system, it isimportant to think carefully about what the business requires in terms ofequipment. Ideally, however,for a mid to large import-export firm, superservers would be chosen. and Nolan, R.L. Kirkpatrick and others recommend involving workers in theentire process of developing an information system, rather than simplydumping technologies on them. Intelligent decision systems. It also allows teams to form across more traditional departmentallines, with access to the information available in the net that might havebeen compartmentalized departmentally before. Depending upon the numberand access of the platters that could allow for the paper equivalent ofhundreds of thousands of separate documents. Both managers and workers can wind up fighting technology, ratherthan working with it. There are several factors to consider when choosing hardware. (1994B). (p. Clones strike again. This is perhaps more a psychological problem than a technical one.For the manager who feels like he or she must be in control at all times,computer networks will be difficult to use effectively. Savings of time and money; 2. These may need several different aspectsbeside the more familiar applications and should be tied-in to othersoftware, if possible. The exact type of hardware to purchase for either new equipment, orupgrades, demands an information systems specialist. 44)In other words, management becomes more informal and more a coordinatingfunction with the installation of computer networks. In looking specifically at export needs, some of the kinds ofdocumentation needed, for example, include commercial invoices, country-of-origin certificates, packing slips in different languages, correspondence,and export-declaration forms. The manager needs to address this eitherthrough management strategies or some form of E-mail filters (Rothschild,1994). INFORMATION SYSTEMS AND THE IMPORT/EXPORT BUSINESSIntroduction: Although the computer revolution is well under way, there are manycompanies who are not taking advantage of the opportunities availablebecause of lack of expertise and lack of confidence in their ability toacquire the appropriate systems at reasonable prices. With use of sophisticated models, theoreticallyclients would eventually be able to tap into the system directly, as withFederal Express, and find out exactly where in the system, or in the world,their shipment is located. Increasing the speed andsophistication of computers did not bring them closer to "intelligence".At that point in the growth of the field, there was a new focus on what istermed "expert systems". Each network management package maycontain somewhat different products, or enhancements. While there are some management issues, and cost issues, involved inworking within a networked organization, there are also several advantages. BIBLIOGRAPHYChurbuck, D.C. Kessler (1994), who recommended development ofsystems that eliminate salespeople, noted that Lotus Notes is already beingused by major corporations to lower costs and allow for not only increasedintracompany, but intercompany communications. (1993). Harvard Business review,71:122-132.Harmon, P. In animportant additional recommendation, which is frequently not mentioned,Strom noted the importance of future-oriented cabling in order to supportincreasingly sophisticated equipment. Strom noted that while many small businesses can do well withoutdedicated servers, those which are more transaction-based, certainlyincluding import-export, need more powerful servers. (1994). They allow information that once flowed through hierarchies . Besides the high levelof information generated, there is a diversity of data in import-exportthat exceeds that in other fields. (1986). Corporate E-Mail ain't easy. Something similar to this should be adaptable to the import-exportbusiness and would be particularly effective for an industry in which 24-hour operations would be advantageous. Selections should be made according to the organization's needsand according to the special features that systems have to offer. This seemsto be the top-of-the-line technology at present, although the asynchronoustransfer mode networks are further advanced. Essentially, the applicationis to a business that has total employment of less than 1 people, but hasimpacts on far many more people than that in different industries relyingon import-export business.Artificial Intelligence and Expert Systems: The first, and still most impressive, information processing systemthat human beings became aware of was the human brain. There are some problems, however, specific to import-export thatalso make it difficult to choose the right systems. In order to take advantage of the possibilities of informationsystem's, the manager must have considerable information, and great skillin decision-making. However, thebasis of LANs is the personal computer, with much of the sophisticatedsoftware that has been developed by groups such as Lotus useable onmachines modified to be used as servers. Atthe local level, the first step would be to establish an in-house networkof personal computers, designed to instantly link employees with each otherand with the data stream. Stewart (1994) mentioned the big three advantages as including: 1. Many people are daunted by computers, particularlythose who have been involved with the organization for many years andresist changing to new technologies that they have not mastered. In particular, the focus is on applicationssuitable for a small business that has a central office in one country,with several subsidiary offices in several additional countries, includingplacements in Europe and the United States. This is, however, a high-end product,costing approximately $2,9 . Other management issues include the constantstruggle to stay up-to-date with both hardware and software, making theright choices at the right time in order to remain competitive and in synchwith one's clients. Making it all worker-friendly. This is a givenfactor in the import-export business. Derfler noted that a good second choicewould be XTree Tools for Networks which costs considerably less at $695.Networks: Perhaps the most important recent trend in the field of informationtechnology is the move toward increasingly networked organizations. Fire your sales force - the sequel. Specializedservers, which include such things as Compaq ProLiant and IBM Model 195cost around $15, each and are appropriate for medium-sized businessesthat require high reliability and network throughput. That is just one example of the potential problems developing fromthe addition of new technologies. (1986). Business Week, 3317: 158-159.Stewart, T.A. Based on the human model, the first information system that wasvisualized was a kind of artificial intelligence that was intended to mimicthe human. Derfler (1993) noted that as with much of the information systemsfield, understanding the characteristics of each package can be confusingsince there are no set definitions. 3. Establishment of E-mail linkages, or gateways, potentially allowingfor the hook-up of ATM when that becomes efficient for the industry as awhole.Management Issues: In some respects, import-export has always been a business that hasdepended upon the kind of at-a-distance management techniques thattelecommuting and other information systems advances have brought to thefore. Theseinclude IBM Model 295 and NetFrame and cost around $5 , . The question in this area, as it has been long a questionduring the process of corporate computerization, is whether or not to gowith the more expensive, mainstream hubs and networks, such as those bySynOptics, or whether to develop an open system which would enable someother, presumably lower-cost, clone to be plugged in. Despite the many advantages of computerization, there are multiplepitfalls in attempting to devise an appropriate system. The essence ofthese computer networks is that they cut through red tape and other kindsof boundaries, connecting people who need to be connected directly witheach other and with the information that they need. In the short-term,however, it seems likely that purchasing intelligent hubs through one ofthe major vendors is a better choice. In order to make appropriate choices, itis important to really understand both one's own business requirements andthe available hardware and software. They have thehighest performance, and provide 24-hour network reliability. He assumed that allowing the highest end products at about$25, per PC, and $1, per month in telecommunications charge for a1.5 megabit-per-second T-1 line into the server would amount toapproximately $2 , per year in costs, while allowing for 24-hour per daycoverage.
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