Inventory Management Database System (IMDS) is the system of storing and managing sales and stock details. Such systems are rather convenient when speaking about the stores dealing with fast moving consumer goods (FMCG). Nowadays, each company has the opportunity to use such systems, because the software market offers several Inventory Management Database System operators to choose. The point is that there is cheap Inventory Management Database System software, which small companies prefer, as well as more expensive one (for example, from Microsoft Corporation), preferred by larger companies and enterprises. However, as every software, the Inventory Management Database System has its risks. This assignment aims at revealing and analyzing the main risks.

Risks

The set of likely risks include:

Login failure;

Connection failure;

Human factor;

Technical factor;

Software failure;

Low quality software.

Discussion in Terms of Probability and Consequences

First, it is essential to value every risk. The risks will be valued from 1 to 10, where 1 is the least possible one. Besides, it is significant to value the consequences as well. They will be marked from 1 to 5, where 1 is the worst consequence. As the visual perception is always better, the data will be presented in the form of a table:

 

Probability

Consequences

Login failure

9

4

Connection failure

9

4

Human factor

8

3

Technical factor

7

2

Software failure

6

2

Low quality software

7

1

From the table above, it is obvious that almost every risk is possible at the store. On the contrary, there is only one risk which consequences will damage the store greatly. The low quality software is, perhaps, one of the main reasons why some managers or store owners prefer to use paper and pencil to manage the sales and sock details. However, when speaking about store chains, it is necessary for managers to use high quality software to avoid problems in the future.

Login failure. In the modern age of technologies, when every person has several accounts on different websites and remembers several passwords and codes, such risk should have been seen as the least possible one. However, the problem of remembering several passwords makes the login failure probability one of the most potential. The consequences of such risk will not damage a company greatly, because every Inventory Management Database System has the opportunity of password recovery. Besides, a system administrator has the right to recover a persons password, as well.

Connection failure. Such risk may seem improbable. On the other hand, it usually happens that Internet connection disappears, especially at bad weather days. The consequences of the risk are not harmful. On the other hand, the effects may damage a company in case, when the connection fails during the goods arrival.

Human factor. Human factor is, perhaps, the most probable risk. The point is that we all are humans and we make mistakes. The human factor may be:

Forgetting to fill in some forms;

Forgetting to enter data about sales;

Illness;

Being a newbie, who does not know how to work with the Inventory Management Database System;

Panic.

Obviously, there are some other risks which human factor includes. However, the risks mentioned above are the most probable. Human factor cannot be underestimated; on the contrary, it should not be overestimated. Until the robots make human job, human factor is something to be faced daily with. It is not the risk to which one should pay much attention, because, unlike all other factors, human factor is the one which cannot be fixed or controlled.

Technical factor. Technical factor is how the hardware works and its quality. The hardware should be renewed or repaired when needed. Besides, hardware should be checked and tested by specialists. Every company has a system administrator, who can fix every hardware problem. On the other hand, regardless the frequency of tests, hardware may come out of order one day. The technical factor may cause much problems and damage to the company.

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Software failure is the last, but not the least risk in the list. It has been already stated above that low quality software may cause much damage to a company. On the other hand, every program has been written by a human. Hence, it is probable that there is some kind of bug in the code, regardless the price of the Inventory Management Database System. Such drawback cannot be underestimated, because the software failure may erase all the data or simply mix it. To avoid such problem, every manager should make hard copies of all the data periodically.

Qualitative and Quantitative Techniques

There are several methods of information analysis and they all are divided into different types. This research is aimed to show how foreign students overcome problems with using the proper method and in the end, according to the expected results, it will be clear what recommendations students should follow not to have cultural and language barriers. Research methods are:

Quantitative method;

Qualitative method;

Interviewing:

1. Face-to-face interviews;

2. Telephone interview;

3. Computer Assisted Personal Interviewing (CAPI);

Questionnaires:

1. Paper-pencil questionnaires;

2. Web based questionnaires.

In this research, both qualitative and quantitative methods are used. Qualitative method of research is analyzing the data and estimating its relevance and importance. Quantitative method of research is collecting statistical data. Qualitative research for this assignment includes interviews of employees who have already worked with Inventory Management Database Systems. The peculiarity is that the main aim of the report is to outline the risks of Inventory Management Database Systems. Hence, it was insignificant which system was used (cheap or expensive one). The quantitative research included gathering statistical data from the companies which produce Inventory Management Database Systems on the risks and causes of system failure.

Strategies for Risk Mitigation

It has been already mentioned that human factor is the risk, which cannot be influenced. Hence, the presented strategies will include only solutions for technical part:

Risk

Mitigation

Login failure

Provide every employee with login and password, and make them write it down somewhere to assure fast access

Connection failure

Use offline databases as well

Technical factor

Buy new computers every three to five years

Software failure

Report the bugs;

Test it;

Buy it from the trusted sellers

Low quality software

Buy it from the trusted sellers

Resource-leveling table

Risk

First day

Second day

First week

First month

Three years

Login failure

 

+

     

Connection failure

 

+

     

Technical factor

       

+

Software failure

     

+

 

Low-quality software

+

       

The report has outlined the main risks of the Inventory Management Database System. The peculiarity of the report is that it contains the analysis and evaluation of the probability of risks and their consequences. Another peculiarity of the report is that it includes the advices on mitigating the risks. Besides, the report has shown that it does not take much time to mitigate the risks. The human factor is the factor which has not been included into the resource-leveling table, as well as into the mitigation table. The point is that the human factor is the factor which nobody can influence. Hence, there is no solution on mitigating it.

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