My OUM Journey: September 2012

‘REDESIGNING’ AN ORGANISATION WITH AN INFORMATION SYSTEM

1.0 Introduction

Az Hypermarket Sdn. Bhd. was establish on May 2001 and official launching on 2 May 2003. The Company manages its hypermarket and has branches throughout the country. They use an information system to calculate the stock and selling to each branch there. However, all branches across the country are still counting their stock and daily sales manually. Each branch using a computer but not connected directly to the headquarters in Kuala Lumpur. This proposal will explain how to 'Redesigning' the company to use the whole information system covering the head office to the branches. Several important issues such as planning and strategy will be discussed in this proposal.

2.0 Corporate Mission

Just like other companies, Az Hypermarket Sdn Bhd also have their own corporate mission. This is to ensure that established direction of the company can be appreciated by all employees. Az Hypermarket theme is “Maximize the needs of consumers and provide quality goods and services to all customers “. While their corporate mission is divided into four as follows:

· Harmonious working environment, conducive and highly motivated and good career opportunities to all employees.

· Strengthen our competitive position by adopting the use of technology, knowledge and recent innovations.

· A unified workforce, and productive work together with the quality of practice and procedure of the professional and honest work.

· Market-oriented approach to work and the needs of customers with an emphasis on quality assurance, diversity and social needs.

3.0 Information System Mission

In addition to the corporate mission, Az Hypermarket Sdn Bhd also has a mission of information system. It aims to increase the effectiveness of the delivery system of stock and sales information between headquarters and branches. Will also focus on expanding sales throughout the country through the use of information technology systems. Information systems Mission in particular are listed below:

· Improve the facilities and the use of information systems to enhance the delivery system at the headquarters and branches.

· Create an integrated information gathering system for stock and sales facilities and speed up information retrieval. So, stock, sales and purchases can be controlled more effectively.

· To inculcate the use of ICT among staff to improve efficiency and effectiveness of operations and management of Az Hypermarket Sdn Bhd.

· Increase security to ensure confidentiality, integrity, authenticity of data and sales information.

· Improve the efficiency of the management system Az Hypermarket through the use of information systems.

4.0 Information System Vision

Az Hypermarket Sdn. Bhd. vision is to make information systems as a catalyst for increased sales and profitability. The main objective is to plan and ensure effective use of information systems run smoothly and systematically as planned. In addition, it aims to ensure that the profits have been increasing from time to time in line with customer demand.

The main requirement for realizing the corporate vision and mission was to prepare the hardware and application systems that can meet the needs of the company. Fast and robust Internet network is needed and it will affect the mission and vision Az Hypermarket if not available.

5.0 Strategic Planning

Investorwords.com defines strategic planning as “The process of determining a company's long-term goals and then identifying the best approach for achieving those goals”. However, a clear definition of the strategic plan is very important to avoid confusion on business plans, budgets and marketing strategies. The right business strategy can contribute to a large profit and lasting trust of our customers. Therefore, the strategic plan is important for improving the effectiveness of the company's daily operations. In this paper, some suggestions for the improvement of sales and stock records system in use today to use on-line computer will be forwarded to you for consideration.

5.1 Information Technology Infrastructure

The main thing to do is make sure all the branches across the country have complete information technology infrastructure. For example, computers, printers, barcode scanners, Internet connection and the server. By this way, information technology facilities are available when we want to implement systems and retail stock counts using the full computer system. Each computer that is supplied to each branch must have a modern specification that can support applications that will be used to compute retail sales. Needs in terms of hardware is described as figure 1.0 below.

Based on figure 1.0 above, users in each branch connected to headquarters via the server. Application system at the headquarters located on the server and accessed by all users at the branch. So the application system shall be constructed with the infrastructure and can be used when the infrastructure is complete.

5.2 Stock Monitoring

To support the use of information technology to increase sales and profits, the company recommended to focus on key activities of marketing and sales. The company proposed to provide a tablet PC or smart phone with an internet connection to each of the marketing staff so they can update the stock sale at any time when necessary using a tablet PC or smart phone supplied. In addition to being able to update the stock, the staff can make buying and selling via the supplied tablet PC. On-line updating is more effective than those made manually. Store management can view latest stock based on the report submitted online.

In addition, companies should train officers to make advertising and marketing support to customers via the internet. For example, he can create a blog or website to explain the products available. This can increase the number of buyers or customers and indirectly to increase company profits.

6.0 Tactical Planning

6.1 Database Storage

Use the server is necessary to store data, manage application programs and acts as a medium of transmission of information between headquarters and branches. Implementation of information technology in the record and store sales and stock data requires large storage. Thus a high-capacity servers should be located at the headquarters. The maximum period necessary for data storage and server setup is 3 months. This includes the preparation of the Internet to the whole branch. This needs to be completed before entering data into the server activity.

Method to be used is by connecting the computer at the branch to its headquarters. WAN and LAN technology will be implemented. For this purpose, the server will be placed in every branch of hypermarket and will link directly to headquarters.

The company must have expertise in maintaining this server. Another alternative is that we hire with external suppliers to provide a server that we need.

6.2 Recording Stock - Barcode System

The company may introduce a barcode system for recording daily sales in each branch. Each daily retail sales recorded online using barcode system. Use of barcode reader to record retail sales is more effective. It can ensure that products will not run out of stock. Indirectly, the company can maintain momentum in retail sales and indirectly help increase profits.

Firstly, all the products should be recorded. This is to ensure that the actual amount of goods in hypermarkets. The time taken to scan and save a list of all stock must be done within 2 months. Period was started after the infrastructure hardware and application systems can be used. Task to scan barcode data can be given to staff in each branch who worked at the store unit. With the system that records information online, the products are scanned by the store-keeper in all branches can be seen by the chief at the headquarters store without having to call or visit. In this way, the task of monitoring and counting of stock at the head office is easy, economical, fast and effective.

The main requirements to implement the barcode system is barcode scanner equipment. In other words, each branch should be equipped with barcode scanner equipment so that all retail transactions will be recorded on-line into the server. There needs to be consistent with barcode reader is barcode itself. All items sold must be equipped with a barcode number. If any one needs either barcode reader or barcode numbers are not supplied, then the proposal to use information technology in daily sales management doomed to fail.

7.0 Operational Planning

7.1 Achieve Project - Regular Reports

All sales shall be recorded daily on-line and can be seen directly when necessary. Each branch shall report to the headquarters for each item should be ordered every 3 days. In this way, outlets would not have run out of stocks in each hypermarket. By using information technology, sales statistics or graphs can be produced on a regular basis. Statistics and graphs can assist management in determining the company's best selling products, not selling or products that require improvement.

7.2 First Step - Information Technology Training

As we know, computer skills are important at the present time. Therefore, the first thing to do is to give computer training to all employees. This is to ensure that all employees are adept at using computers and systems when required. With the availability of skilled workers who use computers, management can implement changes to the way stock manually to a more systematic use of computer systems.

7.3 Staff Needed - Market Research Team

A marketing research team should also be established. This team will act as a group that will identify the current market products with high demand from consumers. They also need to identify new locations for expansion of the domestic market and abroad. The main thing to be taken care of by them is the use of information technology in expanding the company's business. For example, the expansion of new branches must use information technology fully. Starting from the aspects of management, storage and retail sales of stock, all transactions that occur electronically recorded into a computer. In other words, this team acts as a watchdog and information technology coordinator for Az Hypermarket.

7.4 QR Code

In addition to the barcode system, the company Az Hypermarket can also be introduced Quick Response Codes (QR Code). This method can popularize retail sales to consumers who prefer shopping via smartphones. According to whatisaqrcode.co.uk “Quick Response Codes are a type of two-dimensional barcode that can be read using smartphones and dedicated QR reading devices, that link directly to text, emails, websites, phone numbers and more! You may have even got to this site by scanning a QR code!”.

In this context, companies can promote sales of products through advertising using QR Code. For information, QR code can be displayed anywhere and can be accessed by simply using a smart phone. Users only need to scan the code displayed using their phone and website or product to be displayed on their phones. In this way, they can order the products sold through their smart phones.

7.5 Financial Sources

Financial plan to upgrade the ICT infrastructure is also important. So, a sum of money to be allocated in the proposed project. For starters, the company can assign a number of small budget for the purpose of system testing and the use of barcode system to be introduced. If successful, the other a sum of money must be allocated to expanding the use of information systems. The necessary funds is to buy a new computer, printer, barcode equipment, internet connection, the connection between computers, servers, maintenance and installation costs. Financial allocation is an important step that the company can make the estimated costs necessary to carry out this proposal.

In this proposal, estimated to be about RM2 million to be allocated for the planning and enhancement of internet connection, infrastructure and hardware for all 10 existing branches throughout the country. The cost of application development sitem involves a sum of RM100 thousand. Fund companies have at present is sufficient for the planned implementation. Thus the company does not need to borrow from foreign financial institutions.

REFFERENCES

http://www.shns.com.my

http://www.lpp.gov.my/web/guest

http://www .uitm.edu.my

http://www.investorwords.com/4774/strategic_planning.html

http://www.whatisaqrcode.co.uk/

My OUM Journey

Thursday, September 20, 2012

ASSESSMENT FORMAT FITMC Sept2012 Semester

Wednesday, September 5, 2012

Register for Semester Sept 2012

‘REDESIGNING’ AN ORGANISATION WITH AN INFORMATION SYSTEM

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