ACHIEVE OPERATIONA EXCELLENCE BY BUILDING INTEGRATED INFORMATION SYSTEM

Done by Saif h. abed SP 20944

EXECUTIVE SUMMARY
The information system in an essential tool for todays business. So far, it has developed businesses in, almost, all the industries. Company was able to sustain by making use of these technology, others lost there business just because they were not able to ride the wave of the technology and washed away by the technology tsunami. In this proposal, we try to show how the information system can help manager take butter decision? How its help to increase company profit? How its help organization achieve operation excellence and customer intimacy? We used international studies as a foundation to build our study on, please check the Literature review. We define some simple terms in the keywords section, so its make things easy to understand for non-technical employees. In this proposal we suggest to build two new systems (SCM, CRM) and redesign the enterprise system for each of the 13 brunches. Meanwhile, keeping the cost low is our concern. We also give some examples to show how these systems could help our company. We also suggest some new business model, which can be available by adapting the new system.

Table of contents
1. Introduction.........................4 1.1 Background4 1.2 Literature review.5 1.3 Problem statements........6 1.4 Thesis and Proposal objective ...7 2. Solutions.7 2.1 SCM systems....7 2.2 CRM systems8 2.3 Enterprise systems...................9 2.4 E-Commerce tool...10 3. Time schedule..10 4. Budget...11 5. References11 6. Keywords.11

1. Introduction
In fast development of today technology, globalization and maturated industriesand other changing environments, open opportunities and threats to the industries word-wide. Some business changed dramatically to cope with the change; others struggle to survive with the high competition market. Recently, organization starts looking for small details to gain competitive advantage over their rivals, such as eliminate business process (CITI bank), high-speed services like DHL. Information system and technology employ to gain such advantages, and company start to invest more and more to improve their productivity and efficiency and gain competitive advantages. Therefore, IT becomes a requirement for business today and those who make use of it who only will be able to survive.

1.1 Background
Through our study to the company records from different functional department we were able to identify the areas of the problems, summarized as bellow:  Lack in the information provided to the management due to poor information system that unable to provide accurate, complete, precious, valid and consistence information to the mangers to plan, coordinate, control, and evaluate resources and operations.  Low level of information exchanging among business unites and brunches due to decentralization of companys information systems. By using different type of system in each brunch.  Lack in the coordination, cooperation with the supply chain partners, both customers and suppliers.  Lack in the use of E-business as a tool to find supplier, subcontractor, or any other service that the company tend to outsource.

1.2 Literature review

 A study in the united state shows that the investment in the information technology is increasing dramatically from 200 billions to over 1000 billions dollar in last 20 years. Thats show how important is these investments to the organizations. [Kenneth C. Laudon, Jane P. Laudon; management information systems, eleven editions]

 Different level in the organization has different managers with different responsibilitys and different role. And each of these levels has different information requirement for decision support and different type of decision. A study revels that the decision making in any organization is cost a lot of money in case it has been taking wrongly. In this table, we can see how important to take good decision. The cost of wrong decision costs the organizations from 400,000 to 2,400,000 per annum. [Kenneth C. Laudon, Jane P. Laudon; management information systems, eleven editions]

 Another study revels that selling to new customer is cost 6 times higher then selling to old customer and that shows how expensive is the searching, marketing cost to get new supplier or customer( the effect of high churn rate).

1.3 Problems statements

As a CIO, we look to the problems from information prospective. Therefore, we define our problem statement as below: 1- Decentralization/standardization lack,in the Enterprise systems of all the 13 brunches, due to different kind of systemshas been used. 2- Lake in the supply chain management system. 3- Lake in the Customer relationship management system. 4- Old business models, which have not been taking any advantage of the newtechnology.

1.4 Thesis and Proposal objective.

Building an integrated information system to improve operation excellence and take the lead in the water supply industry in Malaysia. Our objective is to design a proper solution for the problems have been mentioned in the problem statement. As well as, understand the effect of each of these problems on the company performance, operation cost, company knowledge management, organization structure, and customer intimacy from organizational angle. The impact of these solutions on management productivity, enhancing the decision making, the agent cost andfast management response to the changing in the business environment. All this benefits will come in one package combine with the development of the company information system.

2. Solutions
We are planning to build 2 new systems, which is SCM system and CRM system. As well as develop the old enterprise systems and standardize it in all the company brunches over all Malaysia.

2.1

SCM systems to improve operations with our business partners.

Good supply chain management system will help the organization to work with harmony with their business partners such as water distribution station, sub contractor, and suppliers. The main role for supply chain management is 1- Improves the coordination among firms in the supply chain. As well as, understand each segment requirement and need to improve efficiency of operation. For example: if the outsourced maintenance firm needs to do some maintenance in IPOH water plant. So by working together the IPOH brunch management through the supply chain management the IPOHmanagement will be prepared for alternatives to stop the plant for the period the outsource firm ask. Meanwhile, IPOH department will work with

distribution centers and with other plant to redirecting the supplies. Moreover, The maintenance firm also could consider the stoppage of IPOH plant as high cost to the water supply organization, so the can work for alternatives to do the maintenance faster or to design the maintenance in such way to avoid full stop of operation in IPOH plant. 2- Exchange of information between firms in the supply change could help to take better decision and improve planning. 3- Fast response to the environment change. For example new construction of condominiums will be considered as new water supply demand. 4- Working with the customer relationship management (customer analysis

department) will help to understand the need of the customer and design our service to fit their - need no more no less- to improve operation (JIT). For example: the report form the CRM-analytical shows that klang area is an industrial area so the consumption level will drop at night time, while Shahalam as a home area will increase after working hours (as many people get back from work) this could help decision maker give priority to supply klang at morning and shahalam at night. As well as, the distributions center to reduce the level of inventory of the tank or to increase it.

2.2

Customer relationship management customer/supplier intimacy and satisfaction.

systems

to

increase

This could help our organization to increase the switching cost for our supplier and customers and them reduce the cost of getting new suppliers, as well as, the churn rate. The role of the CRM system is: 1- Analytical role, by collect information of our customer and supplier and save these information in a meaningful way in the company data base. This could help data analysis tools such as data mining and OLAP to:  Identify buying patterns  Low cost market segmentation and price discrimination  Pinpoint the profitable customer and unprofitable, to set good price deal that fit each of them. 2- Operational role, by improve our customer service models by providing suitable information for call centers, help desks, and customer support stuff to serve ourcustomer in case water supply interruption or any other problem.

Customization for product

Understanding customer needs could help our organization to customize their product for example; supply drinking water or highly treated water to some hospital with higher price as some hospital prefers to pay higher rate for clean water then spend money to treat water locally inside the hospital. Or supply industrial water (less treated) to some industrial area with low charge rate.

2.3 Building standard enterprise systems in the 13 brunches to achieve

organizational centralization.
To achieve centralization we should standardize our enterprise system in the 13 brunches. This could help to 1- Uniform data exchange among these brunches. 2- Enforce uniform business process, which helps to improve organization knowledge, and use it in nation-wide scope. This could be achieved by applying the result of process development in one brunch to all the 13 brunches. 3- High speed and quality data exchange, with high availability of information in anytime without any need to ask for each piece of information by e-mail as the former system was. 4- With uniform IT platform, we can save the maintenance cost of system. For example: the IT expert in Ipoh brunch could help to settle problem in Selangor brunch, as both using same technology platform. In each of these systems, we design different subsystem for different level of management depending on the nature of work, responsibility for each level. For example, operation manager can get suitable information to perform their tasks. Meanwhile, allow operation manager to inter information about the problems and day-to-day situations. Higher level, can get the information form the lower level to summarize them in charts and then capture trend in sales or production which, in turn, help them drew production plans, evaluate performance and decide the level of inventory required for production. In this level we allow some external source of information from other system like SCM and CRM systems to help them interact with our partner in the supply chain, customers, and get some reports from same level manager in the different department. All these to

achieve high quality information exchange, which help them take high quality decisions. For executive level we have design new system base on GIS technology (geographic information system). This will help our top management to evaluate our performance and see butter picture to the organization to drew their strategic plans.

2.4 Using E-business as a tool to develop new business model .

The use of e-business will help the organization to increase the supplier by post the subcontract tenders in the company website. This made work more transparent and reduce the information asymmetry between contractors. For example: by posting the tender on the company website, the entry cost of new contractor will reduced and the competition will be high so the contractor will forced to give good prices and quality service to our organization. From customer service prospective, the e-business will allow to develop new service models like Bill payment, as the e-business allows the customer to pay their bill electronically and save the high cost of running service centers. E-business also could help our organization to outsource some tasks. For example outsource the study required to exploring new geographical area of water supplies. These study identifying the area base on the cost of drilling or the degree of treatment the water need. With e-business the coordination, monitoring, and control is web-enabled will make the outsourcing more efficient and save.

3. Time Schedule
Purchasing standard was good step to save time and cost. Our time schedule as bellow: 10 days to design the business process and eliminatewaste. 20 days to design the systems. 3 days for conversion (phase model). During this time staff training should be complete. You could also check the excel table for more details. Attached in the report, index 1

4. Budget
Please refer to the attachment, index 2.

5. References
[Kenneth C. Laudon, Jane P. Laudon; management information systems, eleven editions] Keywords SCM: supply chain management. ( with definition) CRM: customer relationship management GIO: geographical information system.