Applying Information System Change in Tihama Advertising Company
Information System change in Supply Chain Management is a process that
affects almost all the activities of a company to increase value of the
company's competitive advantage in the market and therefore it must be
applied according to plans and proper care. This paper therefore discusses
the IS change in Tihama Advertisement company which was founded in Saudi
Applying Information System Change in Tihama Advertising Company
Supply Chain Management unifies several activities into one component
and these include manufacturing operations, purchasing, transportation and
physical distribution. The supply Chain Management process then coordinates
and integrates these activities into a process. This involve including
other partners into the chain. Within a company, SCM refers to a wide range
of functional areas. The goal is to serve or do a better job for the
consumer. To properly understand this whole process Tihama advertising
company from the GCC in Saudi Arabia is selected to demonstrate this
Tihama Company is among the biggest media companies in Saudi Arabia
offering the services of advertising, public relations, marketing, media
and telecommunications services, publishing, bookshops, and video. The
company was started in 1974 as a limited liability company. Tihama Company
performs its businesses at its headquarters in Jeddah and also at the
company's branches and subsidiaries in Saudi Arabia not forgetting its
offices and representatives abroad. Tihama gained the trust of being the
leading institution of advertising and marketing. The company has
participated in the development of a huge network in road advertising
covering highways in the Saudi Kingdom, the King Khalid international
Airport in Riyadh and finally the link between Bahrain and KSA i.e. the
King Fahd Bridge. Tihama managed to widely spread its services due to its
application of modern technology as this is the powerful driving factor in
this industry. The growth of this company has resulted in the success of
many companies in the field of advertising at both local and regional level
thus Tihama Company has resulted in employment of thousands of employees in
this specific industry.
The audited financials of the company in 2011 showed a decrease of 5.47% in
total net operating revenues. Comparing the revenues in assets and
liabilities for the year the company increased its total revenue as
signified by the improvement of current ratio (current assets/current
liabilities) going from 1.93 to 5.69 as compared to the previous year.
Over the coming decade the ever improving technology will continue to have
profound political implications for the Middle East and the world (Ghareb,
Identifying Challenges in the Process of Information System Change
Modern technology is causing a revolution on how people receive
information, thus the transnational media is helping to shape public
opinion thus is influencing the decision making of political, business and
military leaders (Ghareb, 2000). Supply chain management is being
discovered by companies around the world as a powerful new source for
competitive advantage and it encompasses all of those integrated activities
that bring product to market and create satisfied customers (Zygiaris,
2000). Generally IT is considered a major facilitator in inter -
organizational relationships and a highly influential element in
organizational economics and strategy (Humphreys, 2001). Thus performing an
information system change cannot be completed without involving IT in the
processes of conducting the change. The supply chain encompasses all those
activities associated with moving goods from the raw-materials stage
through to the end user and this change can be difficult to strategize and
undertake especially in larger media organizations like Tihama (Zygiari,
2000). In this particular case study the challenges the information system
change process may face include:
The most important challenge first is to understand and evaluate the
customer's true needs. For a continued improved success, Tihama Media
Company must improve its competitive positions by reducing its order-
to-delivery cycle (Zygiari, 2000).
Another challenge is to know the duration and cost of the information
system change. In most companies supply chain management cost that
involves information system change has proven to be approximately 75%
of the operating budget (Zygiari, 2000).
The information system experts at Tihama must be able to identify the
necessary infrastructure required in order to achieve gains of certain
magnitude in the change process. This will have to seek the advice of
both the executive and operational level of management.
Also the information system change experts in Tihama will have to
clearly identify and familiarize themselves with financial
implications of the change process. High investment in supply chain
management should result to better profit margins (Blasubramanian,
Developing change in supply chain management is a complex issue which
requires a range of parameters that need to be put into consideration
before embarking on the process. These will play a major role in
guarantying competitive advantage. Some of the issues that must be
considered include business growth, purchasing, stock levels and customer
For a successful information change at Tihama, the above challenges must be
solved and therefore certain goals must be set in order to achieve success.
This will play a major part in the company's maintenance of competitive
advantage which is a characteristic and resource for an organization that
makes it outperform others in the same industry or product market (Alsaleh,
Setting goals ensure there is a check list of certain undertakings that
must be carried out in order to achieve a certain process. The following is
an analysis of each goal the IS change experts at Tihama will have to use
in countering the above stated challenges:
The IS expert carrying out the change process must assess the supply
chain competitiveness of the advertising company in the market
(Zygiari, 2000). This process will start buy comparing the company's
existing objectives against its capabilities and performance. They
will compare the performance of Tihama advertising company with other
players offering competition in the field.
The next step or goal is to set a clear vision of the IS change
process of the supply chain framework in Tihama. The experts will have
to consider emerging trends in globalization, channel shifts and how
new technologies will affect the chosen supply chain configuration
Identify a clear way forward emphasizing on each aspect of the
solution required in the change process. Critical analysis of each
challenge will provide the IS change experts with a better
understanding of how they should tackle the challenge in order to
achieve greater success in the whole process. This must include a
limited amount of time to be used in conducting each particular
The IS change experts at Tihama will have to define those actions
required to narrow down the gap between tomorrow's supply chain vision
and today's reality. A clear analysis of possible re-engineering,
restructuring and any other action of the process must be done to
achieve this goal. The IS experts to carry out the change process must
be in touch with the management at Tihama advertising company in order
to evaluate the company's readiness to implement the necessary
Finally the IS experts at Tihama will have to set priorities of the
action items before committing resources to them (Zygiari, 2000). This
will lead to a unified commitment to supply chain strategy hence a
clear agenda on achieving it.
Each of the above stated goals must have measures to ensure their
achievement. The measures for each goal can be analyzed in the following
For the first stated goal the objectives of the company must be well
analyzed in order to achieve success. By comparing the objectives and
the company's performance in the competitive market the information
system experts are able to know which direction to take towards the
process of applying the changes in the supply chain.
In goal number two any change that should/must be applied to the
supply chain framework must be in accordance with the company's
mission and vision. Every business has a mission and a vision which
govern all the activities in the business processes so as to ensure
it succeeds in the market. For this reason an analysis of the
proposed changes is done to see if they are in line with the Tihama's
mission and vision.
To tackle the challenges in changing the supply chain people involved
in the change process must ensure they have clear guidelines showing
what they should do and at what time. Preparation of a list of
activities to be undertaken in the process is done.
In goal number four the IS change experts at Tihama Advertising
Company will provide a clear follow up for every action such that to
be sure they are implemented as per the change plan.
At the end resources will be allocated according to level of priority
for each activity
Goals must be performed under a certain timescale and therefore the IS
change team have to apply the following time plan to achieve the set goals.
"Goal "Measures "Time Scale "
"Asses supply chain "Analysis of company "Two months "
"competitiveness "objectives and " "
" "performance " "
"Set a clear vision in "Analysis of proposed "Two months "
"the change process "changes to put them in " "
" "accordance with the " "
" "company's mission and " "
" "vision " "
"Identify a clear way "Preparation of a list of"One month "
"forward "activities " "