Intern Final PDF

An Internship Report

On

“Information System for SPIDER Group BD Ltd.”

Submitted By

Md. Refat Ahmed

ID: 06-036

Department of Management Information Systems

Supervised By Mohammad Moqbul Hossain Bhuiyan

Professor Department of Management Information Systems

Date of Submission: March 18, 2015

Department of Management Information Systems Faculty of Business Studies

University of Dhaka

i

March 18, 2015

Mohammad Moqbul Hossain Bhuiyan

Professor


Faculty of Business Studies

University of Dhaka

Subject: Letter of Transmittal

Sir, With due respect, I have the pleasure to submit my Internship report on “Information

System for SPIDER BD GROUP Ltd.” to partially fulfill the requirements of the BBA

degree under your supervision. It has been a worthwhile experience for me undertaking

such a report work to get exposure to the real life of software. I have tried my best to

satisfy the academic requirements.

In my report, I tried to reflect a partial scenario of the significance of having an

Information System in Spider BD Group Ltd. and how to build an Information system for

the organization. I have used both primary and secondary data and have tried to prepare

the report according to your instructions. I also confess that this report has some

limitations as well because I got limited resources

I hope you will appreciate my sincere effort.

Sincerely yours

………………………..

Md. Refat Ahmed

ID: 06-036


University of Dhaka

ii

DECLARATION

I declare that the Internship report entitled Information System ―for SPIDER BD

GROUP.‖ Embodies the results of my own research work, perused under the supervision

of Mohammad Moqbul Hossain Bhuiyan, Professor, Department of Management

Information Systems, Faculty of Business Studies, the University of Dhaka, Bangladesh.

I further affirm that the work reported in this internship report is original and is no part

or any other students for the completion of BBA or other degree have submitted whole

of the report.

Sincerely yours

……………………………. Md. Refat Ahmed

ID: 06-036


University Of Dhaka

iii

CERTIFICATE OF SUPERVISOR

This is to certify that Md. Refat Ahmed is a student of BBA, Department of Management

Information System, and ID: 06-036, Faculty of Business Studies, University of Dhaka

successfully his completed ―Internship Report‖ entitled ―System for SPIDER BD

GROUP‖ under my supervision.

He has done his job according to my supervision and guidance. He has tried his level best

to accomplish this job successfully. I think this program will help him in the future to

build up his career. I wish his success and prosperity.

……………………………. Mohammad Moqbul Hossain Bhuiyan

Professor


University of Dhaka

iv

PREFACE

First of all I would like to be grateful to almighty Allah, the merciful and benevolent that

has enabled to complete this report.

The Internship, a part of academic discipline, for the BBA students has been designed to

acquire practical knowledge. It is expected that the integration of knowledge theories and

practices will enable us to become effective. Through this program, I have got chance to

acquire some practical experience to an IT section of a firm, which is expected to

enlighten my career.

As a BBA student, it was my great pleasure to be in touch with the organization

―SPIDER Group BD Ltd.‖ Which is undoubtly a leading Garment Factory in Bangladesh.

This Internship program has given me immense opportunity to minimize the gap between

theoretical and practical knowledge. My practical knowledge thorough performing

different activities of the organization have enhanced my view, mission and acceptability

as well as have increased my overall experience about deal with real world phenomenon.

Md. Refat Ahmed

ID: 06-036

v

ACKNOWLEDGEMENT

At the very beginning, I acknowledge the infinite blessing and profound kindness of

―Almighty Allah‖- the supreme authority of the universe. I also acknowledge the loving

support of my teachers.

This Internship report might never have been completed without the necessary practical

knowledge, assistance of many books, articles, websites, and primary data. It enhanced

my knowledge on Software making activities as well as Software business. Thanks to all

those persons, who have assisted me, providing me co-operation, books and articles, I

would like to express my special gratitude to my supervisor Mohammad Moqbul Hossain

Bhuiyan for his supervision, co-operation and advises.

This Internship report benefitted greatly from the effort of my loving and honorable

parents and my friends who contributed advice and providing interesting information.

They gave feedback and helped in completing the report successfully. I would like to

thank my parents and all my friends for their cooperation. Without their help, the creation

of this Internship report would not have been possible.

Finally I want to express my special thanks to Employees of the Information Technology

Department of Spider BD Group, Where I have completed my project work by taking

practical knowledge from them. I am also grateful to all other employees of Spider BD

Group for their support and assistance. Specially, I must express my special thanks to Mr.

S M Mofijur Rahman, Manager, Department of Information Technology, Spider BD

Group who helped me with administrative matters.

Md. Refat Ahmed

ID: 06-036

vi

EXECUTIVE SUMMERY

Information system (IS) is the study of complementary networks of hardware and software

that people and organizations use to collect, filters, and process, create, and distribute data.

An information system can be a mainframe, mid-range or network computer concept that

allows distributed processing for a group of users accessing the same software application.

These systems provide management with control over their data, with various tools to extract

data or view data structures and records. The role of an information system is to foster a data

management environment that is robust and can be expanded according to an organizations'

strategic plan for information processing. An information system also satisfies diverse

information needs in an organization. It attempts to integrate all departments and functions

across a company onto a single computer system that can serve all those different

departments' particular needs. Here It will be described how IS impact Management system

of Spider BD Group and enrich operational capability with good financial strength of the

company.

In this report, it will be tried to reflect a partial scenario of the significance of having an

Information System in an Organization and how to build one. That is a tall order, building a

single software program that serve the needs of people in finance as well as it does the people

in human resources and in the warehouse. Each of those departments typically has its own

computer system, each optimized for the particular ways that the department does its work.

But INFORMATION SYSTEM combines them all together into a single, integrated software

program that runs off a single database so that the various departments can more easily share

information and communicate with each other. That integrated approach can have a

tremendous payback if companies install the software correctly.

It is found that Information System adopters are consistently higher in performance across a

wide variety of measures than non-adopters. The results suggest that most of the gains occur

during the (relatively long) implementation period, although there is some evidence of a

reduction in business performance and productivity shortly after the implementation is

complete. However, the financial market consistently rewards the adopters with higher

market valuation both during and after the adoption, consistent with the presence of both

short term and long term benefits.

Table of Contents

CHAPTER 1: INTRODUCTION ...........................................................................................1

1.1 Introduction: ..................................................................................................................... 1

1.2 Statement of the Study: .................................................................................................... 1

1.3 Objectives of the Study:..................................................................................................... 2

1.4 Rationale of the Study: ...................................................................................................... 2

1.5 Scopes of the Study: .......................................................................................................... 2

1.6 Research Methodology:..................................................................................................... 3

1.7 Limitation of the Study: ..................................................................................................... 4

CHAPTER 2: LITERATURE REVIEW ...................................................................................5

2.1 Literature Review: ............................................................................................................. 5

2.2 History of Information System in Business: ........................................................................ 5

2.3 Advantages of Using Information System: ......................................................................... 6

2.4 Disadvantages of Information System:............................................................................... 7

2.5 Architecture of Information Systems in an organization: ................................................... 8

2.6 INFORMATION SYSTEM Requirements (Hardware & Software): ......................................... 9

2.7 INFORMATION SYSTEM in Business Performance: ........................................................... 10

CHAPTER 3: ORGANIZATIONAL OVERVIEW ...................................................................12

3.1 Organizational Overview (Spider Group Bangladesh Ltd.) ................................................ 12

3.2 Core Value:...................................................................................................................... 12

3.3 Focus: .............................................................................................................................. 12

3.4 Their Slogan: ................................................................................................................... 13

3.5 Their Vision: .................................................................................................................... 13

3.6Their Mission: .................................................................................................................. 13

3.7 Their Motto: .................................................................................................................... 13

3.8 Their Strength: ................................................................................................................ 13

3.9 FACTORY INFORMATION ................................................................................................. 14

3.10 Compliance: .................................................................................................................. 15

3.11 Health and Safety: ......................................................................................................... 15

CHAPTER 4: INFORMATION SYSTEM IN SPIDER GROUP BD LTD ...................................16

4.1 INFORMATION SYSTEM in Spider Group Bangladesh Ltd .................................................. 16

4.2 Background of INFORMATION SYSTEM in SPIDER GROUP BD: .......................................... 16

4.3 Objectives of INFORMATION SYSTEM in SPIDER GROUP BD. ............................................ 17

4.4 Architecture of INFORMATION SYSTEM in Spider Group BD. ............................................ 17

4.5.1 .1General Ledger-Features ........................................................................................... 18

4.5.1 .2 Payables-Features .............................................................................................. 19

4.5.1 .3 Receivables-Features ......................................................................................... 19

4.5.2 Asset Management: ..................................................................................................... 19

4.5.2.1 Active Asset Management Landscape: ................................................................ 19

4.5.2.2 Benefits: ............................................................................................................. 20

4.5.3Activity Management: ................................................................................................... 20

4.5.4 Document Management: .............................................................................................. 21

4.5.5 Users: ........................................................................................................................... 21

4.5.6 Human Resource Management in INFORMATION SYSTEM: .......................................... 21

4.5.7 Costs-Benefit Analysis:.................................................................................................. 22

4.5.8 Financing: ..................................................................................................................... 23

4.5.9 Revenue Assumptions: ................................................................................................. 24

4.5.10Financial Analysis: ....................................................................................................... 28

4.5.11 Recommendation: ...................................................................................................... 28

4.5.12Critical Success Factors: ............................................................................................... 29

4.5.13 Monitoring Strategies: ................................................................................................ 29

4.5.14 Present status:............................................................................................................ 30

4.6 INFORMATION SYSTEM Analysis Scope for Spider Group BD: ........................................... 30

4.6.1 Scenario Financial Accounting Analysis: ................................................................. 30

4.6.2 Scenario Controlling Analysis: ................................................................................ 30

4.6.3 Scenario Sales Analysis: ......................................................................................... 31

4.6.4 Scenario Cross-Functional Analysis: Financial and Sales Data: ................................ 31

4.6.5 Scenario Sales Planning: ........................................................................................ 32

4.6.6 Scenario Purchasing Analysis: ................................................................................. 32

4.6.7 Scenario Inventory Analysis: ................................................................................... 32

CHAPTER 5: RESULTS & FINDINGS [Scopes of INFORMATION SYSTEM in Bangladesh] ..............33

5.1 Results & Findings: .......................................................................................................... 33

5.2 Scopes of INFORMATION SYSTEM for Bangladesh: .......................................................... 33

5.3Birth & Death Department: .............................................................................................. 34

5.4 Property Tax Department: ............................................................................................... 35

5.5 Water Supply Department: .............................................................................................. 35

5.6 Building Permission Department: .................................................................................... 35

5.7 E- Procurement: .............................................................................................................. 36

5.8 Licenses department: ...................................................................................................... 36

5.9 Solid waste Management: ............................................................................................... 36

5.10 Accounts Department:................................................................................................... 37

5.11 Asset management Department: ................................................................................... 37

5.12 Material management Department: .............................................................................. 37

CHAPTER 6: IMPLEMENTATION, ANALYSIS & SUGGESTION ..........................................38

6.1 Implementation: ............................................................................................................. 38

6.2 The Hidden Costs of IT: .................................................................................................... 39

6.3 Training: .......................................................................................................................... 39

6.4 Integration and Testing: .................................................................................................. 39

6.5 Data Conversion: ............................................................................................................. 39

6.6 Data Analysis: .................................................................................................................. 40

6.7 Consultants Ad Infinitum: ................................................................................................ 40

6.8 Replacing Your Best and Brightest: .................................................................................. 40

6.9 Implementation Teams Can Never Stop: .......................................................................... 41

6.10 Waiting for ROI: ............................................................................................................. 41

CHAPTER 7: CONCLUSION & REFERENCES .....................................................................42

7.0 Conclusion:...................................................................................................................... 42

8.0 References: ..................................................................................................................... 43

Questionnaire: ...................................................................................................................... 45

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CHAPTER 1

INTRODUCTION

1.1 Introduction:

Enterprise Resource Planning software, or INFORMATION SYSTEM, doesn't live up to

its acronym. Forget about planning—it doesn't do that—and forget about resource, a

throwaway term. But remember the enterprise part. This is INFORMATION SYSTEM's

true ambition. It attempts to integrate all departments and functions across a company

onto a single computer system that can serve all those different departments' particular

needs. Here I will describe how INFORMATION SYSTEM impact MIS system of

Spider Group Bangladesh and enrich operational capability with good financial strength

of the company.

1.2 Statement of the Study:

Information System (IS) in relation to Enterprise Resource Planning (INFORMATION

SYSTEM) Software System in ―Spider Group Bangladesh Ltd.‖ is a partial fulfillment of

the BBA degree under the supervision of Mohammad Moqbul Hossain Bhuiyan,

Professor, Dept. of MIS, Business Administration, and University of Dhaka.

In my report, I will try to reflect a partial scenario of the life cycle of MIS in relation to

Enterprise Resource Planning software system by using real life experiences. That is a

tall order, building a single software program that serve the needs of people in finance as

well as it does the people in human resources and in the warehouse. Each of those

departments typically has its own computer system, each optimized for the particular

ways that the department does its work. But INFORMATION SYSTEM combines them

all together into a single, integrated software program that runs off a single database so

that the various departments can more easily share information and communicate with

Information System for SPIDER Group BD Ltd. Chapter 1

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each other. That integrated approach can have a tremendous payback if companies install

the software correctly. Take a customer order, for example. Typically, when a customer

places an order, that order begins a mostly paper-based journey from in-basket to in-

basket around the company, often being keyed and re-keyed into different departments'

computer systems along the way. All that lounging around in in-baskets causes delays

and lost orders, and all the keying into different computer systems invites errors.

Meanwhile, no one in the company truly knows what the status of the order is at any

given point because there is no way for the finance department, for example, to get into

the warehouse's computer system to see whether the item has been shipped. "You'll have

to call the warehouse," is the familiar refrain heard by frustrated customers.

1.3 Objectives of the Study:

The general objective of this study is to learn the significance of INFORMATION

SYSTEM in MIS for organizations like SPIDER GROUP BANGLADESH. The specific

Objectives of this study are as follows:

Primary Objectives:

The primary objective of my study is to learn about the Management Information System

of Spider Group Bangladesh Ltd using Enterprise Resource Planning (INFORMATION

SYSTEM) Software System and develop an information system for the organization.

Secondary Objectives:

Eliminates the problem of synchronizing changes between multiple systems.

Permits control of business processes that cross functional boundaries.

Provides top-down view of the enterprise (no "islands of information"), real time

information is available to management anywhere, anytime to make proper decisions.

Reduces the risk of loss of sensitive data by consolidating multiple permissions

and security models into a single structure.

Shorten production lead time and delivery time

Information Systems for SPIDER Group BD Ltd. Chapter 1

Page | 2

1.4 Rationale of the Study:

The purpose of this analysis is to describe the necessity for a comprehensive financial,

HR, SCM & CRM with asset, activity, and document management system in Spider

Group Bangladesh Limited. In Bangladesh only few research are done regarding

Management Information Systems through INFORMATION SYSTEM. But

INFORMATION SYSTEM will play vital role to narrowing the path between

information & organization growth.

There are three major reasons why companies undertake IT:

To integrate financial data.

To standardize manufacturing processes.

To standardize HR information.

1.5 Scopes of the Study:

There are huge scopes to implement the Information Systems in private & public

organization. Govt. has the scopes to implement INFORMATION SYSTEM for MIS

Report.MIS is envisaged to undertake Enterprise Wide Resource Planning approach,

enabling Bangladesh to use various data in most optimal way and provide services to

citizens in efficient and effective manner. Various functional modules to be covered

under MIS are given below:

Birth & Death department

Property Tax Department

Water Supply Department

Building Permission Department

E- Procurement

Licenses department

Solid waste Management

Accounts Department


Page | 3

Some private business entities for IS:

Enterprise Resource Planning (INFORMATION SYSTEM) in

Telecommunication Sector

IT in Real Estate Industry

IT in Garments industry

1.6 Research Methodology:

The study requires systematic procedure from selection of the topic to final report

preparation, for collaborating data and information have collected from primary and

secondary sources in both qualitative and quantitative form. I will also use my experience

& findings by using different charts & tables which are presented in analysis part.

1.6.1 Primary Sources of Data:

Face to face conversation with the representative of different department of

Spider Group Bangladesh Ltd.

Face to face conversation with the respective customer who is getting benefit

from IT.

Practical work Experience using IT.

Relevant field study is provided by the concern officers.

1.6.2 Secondary Sources of Data:

Annual reports of Shareholders & Customers.

Management & Monitoring software reports & accumulated data.

Websites & online reports of organization.

1.6.3 Data Presentation& Testing:

I have conducted a sample survey of 30 respondents from different department of Spider

Group Bangladesh and the data were analyzed with the SPSS software. The analysis

contains some statistical procedure and ―hypothesis testing‖ is one of those.


Page | 4

I have calculated the coefficients of the analysis and also the correlation between them.

To come to a perfect decision we need to place several hypothetical testing of some

important factors.

The factors are:

Revenue

Profit

Employee efficiency

Sales forecast

Customer retention

1.7 Limitation of the Study:

For internal security & privacy policy of organization all of the data may not be

published or collected from SPIDER GROUP BANGLADESH.

MIS through INFORMATION SYSTEM is a sensitive part for the organization,

so all detail & real life data cannot be published due to business security of

shareholders, customers etc.

Page | 5

CHAPTER 2

LITERATURE REVIEW

2.1 Literature Review:

Information System (IS) is the study of complementary networks of hardware and

software (see information technology) that people and organizations use to collect, filters,

and process, create, and distribute data.

The study bridges business and computer science using the theoretical foundations of

information and computation to study various business models and related algorithmic

processes within a computer science discipline. Computer information system(s) (CIS) is

a field studying computers and algorithmic processes, including their principles, their

software and hardware designs, their applications, and their impact on society while IS

emphasizes functionality over design. That is a tall order, building a single software

program that serve the needs of people in finance as well as it does the people in human

resources and in the warehouse. Each of those departments typically has its own

computer system, each optimized for the particular ways that the department does its

work. But INFORMATION SYSTEM combines them all together into a single,

integrated software program that runs off a single database so that the various

departments can more easily share information and communicate with each other.

2.2 History of Information System in Business:

Year Main activities Skills required

1970s Mainframe computers were

used, Computers and data

were centralized, Systems

were tied to a few business

functions: payroll,

Programming in COBOL


Page | 6

inventory, billing etc.

1980s Main focus was to automate

existing processes, PCs and

LANs are installed,

Departments set up own

computer systems,

End-user computing with

Word Processors Such as:

MS Word, MS Excel, Power

Point and Spreadsheets that

makes departments less

dependent on the IT

department.

Basic Computing and Basic

Computer Networking etc.

1990s Wide Area Networks

(WANs) become corporate

standards

Senior management looks

for system integration and

data integration. No more

stand-alone systems.

Network support, systems

integration, administration

of Dynamic Data Ware

House etc.

2000s Wide Area Networks

expand via the Internet to

include global enterprises

and business partners –

supply chain and

distribution

Senior management looks

for data sharing across

systems.

Main focus is efficiencies

and speed in inventory,

manufacturing, distribution

Network support, systems

integration etc.

2.3 Advantages of Using Information System:

In the absence of an Information system, a large manufacturer may find itself with many

software applications that cannot communicate or interface effectively with one another.

Tasks that need to interface with one another may involve:

• INFORMATION SYSTEM systems connect the necessary software in order for

accurate forecasting to be done. This allows inventory levels to be kept at

maximum efficiency and the company to be more profitable.


Page | 7

• Integration among different functional areas to ensure proper communication,

productivity and efficiency

• Design engineering (how to best make the product)

• Order tracking, from acceptance through fulfillment

• The revenue cycle, from invoice through cash receipt

Information systems centralize the data in one place. Benefits of this include:

• Eliminates the problem of synchronizing changes between multiple systems

consolidation of finance, marketing and sales, human resource, and manufacturing

applications

• Permits control of business processes that cross functional boundaries

• Provides top-down view of the enterprise (no "islands of information"), real time

information is available to management anywhere, anytime to make proper

decisions.

2.4 Disadvantages of Information System:

Problems with Information systems are mainly due to inadequate investment in ongoing

training for the involved IT personnel - including those implementing and testing changes

as well as a lack of corporate policy protecting the integrity of the data in the

INFORMATION SYSTEM systems and the ways in which it is used.

Disadvantages:

• Customization of the INFORMATION SYSTEM software is limited.

• Re-engineering of business processes to fit the "industry standard" prescribed by

the INFORMATION SYSTEM may lead to a loss of competitive advantage.

• INFORMATION SYSTEM systems can be very expensive. (This has led to a

new category of "INFORMATION SYSTEM light" solutions.)

http://en.wikipedia.org/wiki/Engineering

http://en.wikipedia.org/wiki/Invoice


Page | 8

• ERPs are often seen as too rigid and too difficult to adapt to the

specific workflow and business process of some companies—this is cited as one

of the main causes of their failure.

• Many of the integrated links need high accuracy in other applications to work

effectively. A company can achieve minimum standards, and then over time

"dirty data" will reduce the reliability of some applications.

• Once a system is established, switching costs are very high for any partner

(reducing flexibility and strategic control at the corporate level).

• The blurring of company boundaries can cause problems in accountability, lines

of responsibility, and employee morale.

• Resistance in sharing sensitive internal information between departments can

reduce the effectiveness of the software.

• Some large organizations may have multiple departments with separate,

independent resources, missions, chains-of-command, etc., and consolidation into

a single enterprise may yield limited benefits.

2.5 Architecture of Information Systems in an organization:

INFORMATION SYSTEMS have chosen Microsoft technologies for organization

Microsoft® Windows Server System is a comprehensive, integrated, and interoperable

server infrastructure that helps reduce the complexity and costs of building, deploying,

connecting, and operating agile business solutions. Windows Server System helps

customers create new value for their business through the strategic use of their IT assets.

With the Windows Server operating system as its foundation, Windows Server System

delivers dependable infrastructure for data management and analysis; enterprise

integration; customer, partner, and employee portals; business process automation;

communications and collaboration; and core IT operations including security,

deployment, and systems management.

The problem for IT departments is typically not insufficient functionality; rather, it is that

critical business systems such as customer relationship management (CRM) and

enterprise resource planning (INFORMATION SYSTEM) operate in isolation from other

http://en.wikipedia.org/wiki/Workflow


Page | 9

critical business systems-despite the fact that business processes often span multiple

applications. To obtain an end-to-end view of a complex business process necessitates

integration of information and process silos. In the past, this has been accomplished

either though time-consuming manual interventions, or through hard-coded solutions that

are difficult to maintain.

INFORMATION SYSTEM network architecture is scalable to cater the needs of BPM

requirements. Architecture diagram shown below provides the complete gist of its

extensibility, interoperability, scalability and the flexibility to integrate with various third

party applications or popular Microsoft products.

2.6 INFORMATION SYSTEM Requirements (Hardware & Software):

Server Side:

Pentium IV or Higher

1GB RAM

Windows 2000 / XP / 2003 server

Internet Explorer 5.0 or Higher with resolution set to 1024 x 768 pixel

MS SQL Server 2000

Adobe Reader 5.0 or Higher

240 GB HDD

Backup devices

Client Side:

Pentium III or Higher

512 RAM

Graphics (1024 x 768 pixel)

Windows 2000 / Me/NT/XP / 2003


Page | 10

2.7 INFORMATION SYSTEM in Business Performance:

INFORMATION SYSTEM automates the tasks involved in performing a business

process—such as order fulfillment, which involves taking an order from a customer,

shipping it and billing for it. With INFORMATION SYSTEM, when a customer service

representative takes an order from a customer, he or she has all the information necessary

to complete the order (the customer's credit rating and order history, the company's

inventory levels and the shipping dock's trucking schedule). Everyone else in the

company sees the same computer screen and has access to the single database that holds

the customer's new order. When one department finishes with the order it is automatically

routed via the INFORMATION SYSTEM to the next department. To find out where the

order is at any point, one need only log into the INFORMATION SYSTEM and track it

down. With luck, the order process moves like a bolt of lightning through the

organization, and customers get their orders faster and with fewer errors than before.

INFORMATION SYSTEM can apply that same magic to the other major business

processes, such as employee benefits or financial reporting.

There are three major reasons why companies undertake INFORMATION

SYSTEM:

To integrate financial data —As the CEO tries to understand the company's

overall performance, he or she may find many different versions of the truth.

Finance has its own set of revenue numbers, sales has another version, and the

different business units may each have their own versions of how much they

contributed to revenues. INFORMATION SYSTEM creates a single version of

the truth that cannot be questioned because everyone is using the same system.

To standardize manufacturing processes —manufacturing companies—

especially those with an appetite for mergers and acquisitions—often find that

multiple business units across the company make the same widget using different

methods and computer systems. Standardizing those processes and using a single,

integrated computer system can save time, increase productivity and reduce

headcount.


Page | 11

To standardize HR information —especially in companies with multiple

business units, HR may not have a unified, simple method for tracking employee

time and communicating with them about benefits and services. INFORMATION

SYSTEM can fix that.

In the race to fix these problems, companies often lose sight of the fact that

INFORMATION SYSTEM packages are nothing more than generic representations of

the ways a typical company does business. While most packages are exhaustively

comprehensive, each industry has its quirks that make it unique. Most INFORMATION

SYSTEM systems were designed to be used by discreet manufacturing companies (who

make physical things that can be counted), which immediately left all the process

manufacturers out in the cold. Each of these industries has struggled with the different

INFORMATION SYSTEM vendors to modify core INFORMATION SYSTEM

programs to their needs

Page | 12

CHAPTER 3

ORGANIZATIONAL OVERVIEW

[SPIDER Group Bangladesh Ltd.]

3.1 Organizational Overview (Spider Group Bangladesh Ltd.)

SPIDER GROUP 100% export oriented high quality garments Manufacturer Company.

Since 2007, with a commitment of Delivery on time with Perfect Quality, a trait that they

have worshipped and sincerely followed, they believe that the energy of their business is

their customer, adapted in their unique business model that enjoys competence in design,

production, distribution, and delivery through their extensive network. While racing in

this pursuit they have made sure to offer the highest level of buyer satisfaction throughout

the globe. They strive for excellence and in everything that they do and constantly build

on their reputation in readymade/apparel garments sector by bridging compatibility in

people, society and the environment. This is their price and promise, to offer all their

customers a rewarding shopping experience with renewed loyalty.

3.2 Core Value:

"Best quality, Reasonable price, and Quick service" is their prominent commitment. As

members of the global community, they will work for the betterment of society. They

take pride in being fair and sincere, and in continuing to offer superb service in order to

deliver superior customer satisfaction.

3.3 Focus:

Deliver on time, each & every time. Keep a sharp eye on product quality and put in

all efforts to raise the bar Constantly. Comply flawlessly with all statutory

regulations required by their customers in any country. Ensure escalating

productivity standards at the lowest operating cost, thus offering their customers a

product of the highest quality at the most competitive price.

Information System for SPIDER Group BD Ltd Chapter 3

Page | 13

3.4 Their Slogan:

"Best quality, Reasonable price, Swift service ".

3.5 Their Vision:

A company staffed by people, entrenched into and inspired by their commitment to

establish fruitful partnerships with their clients and maintaining their corporate

responsibility of providing professional service tailored to the needs of the clientele also

provider with best quality advanced technology, long term support.

3.6Their Mission:

They are committed to the proper training and development of personnel who can answer

to the competitive demands of the business world. They aim to establish a financial

facility that can support the successful implementation of its operation in a professional

manner, develop strategies and policies that can guide the entire company to successful

venture and above all, in still in every employee their desire to nurture value oriented

workers willing to uphold the standards required by the continuing demands of the

business.

3.7 Their Motto:

In time product delivery, meet quality according buyer's demand with competitive price.

3.8 Their Strength:

Strength is the main power to make company ongoing with worldwide run. Their

company's strengths are good quality of product with a minimum price, world class

machinery which is makes their products so good and comfortable to use. Their strong


Page | 14

customer relationship manager and the marketing team are more effective to find their

needs and wants, and their responsible managing team is ready to manage product to

delivery at the right place as soon as possible.

3.9 FACTORY INFORMATION

Factory: 640, kunia, (targach), Joydevpur, Gazipur, Bangladesh.

Phone: +88029293645, Fax: +88028911627, 8918838

Nature of Company: 100% Export Oriented Garments Manufacture (Woven)

Style of the Company: Private Limited Company.

Name & Address of Banker: JANATA BANK LIMITED, Moghbazar Branch,

Moghbazar, Dhaka, Bangladesh.

Phone: 9356770, 8322922.

Swift: JANBBDDHAFEC, Account No: CD4207, NATIONAL BANK LIMITED,

Pragati Sarani branch, Dhaka, Bangladesh.

Account No: 009833007526, Swift Code: NBLBBDDH098

Year of Establishment: 2007

Number of Employees: 5000

Insurance: (i) Meghna Insurance Co. Ltd.

(ii) Provati Insurance Co. Ltd.

(iii)Standard Insurance Co. Ltd.

Production Lead Time: 120 days from receipt of order. 35 days from receipt of Fabrics

and trims. 90 days from receipt of clean L/C.

Minimum Order Quantity: 400 Dozens (per style).


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Fabric Import From: Bangladesh, Hong Kong, China, U.A.E, Malaysia, Taiwan &

Indonesia.

Monthly Capacity : 700,000 pcs per month /basic style.

: 400,000 pcs per month /casual style

3.10 Compliance:

They have a compliance policy based on their local Labor laws, code of conducts of key

buyers. The factory is full compliance with ILO and Bangladesh Labor law. Some of

their company policies are as follows:

Child Labors are not allowed.

Access control system.

Voluntary over time.

Weekly holidays.

Annual leave.

Eid Bonus will be given during the two Eids of the year.

Maternity Protection.

Sanitary facilities.

Doctor‘s room with fulltime doctor and Nurse Child care room

First aid box.

Day care Centre.

Health care activities for the workers comply by the company doctor.

3.11 Health and Safety:

All necessary measures have been adopted in the factory to provide maximum

health and safety arrangements to all their employees. A qualified doctor and nurse

are employed full time along with a health care center.

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CHAPTER 4:

INFORMATION SYSTEM IN SPIDER GROUP BD LTD.

4.1 INFORMATION SYSTEM in Spider Group Bangladesh Ltd.:

The purpose of this analysis is to describe the necessity for a comprehensive financial,

HR, SCM & CRM with asset, activity, and document management system in Spider

Group Bangladesh Limited. Spider Group Bangladesh is the leading Informational

Service Provider in Bangladesh, its present subscriber base is 1 million. Spider Group

Bangladesh is a joint venture enterprise. Spider Group Bangladeshis looking to operate a

digital mobile telecommunications network based on the GSM standard in the 900 MHz

and1800 MHz frequency bands, under a license granted by the Bangladesh Telecom

Regulatory Commission (BTRC).Spider Group Bangladesh serves both rural and urban

customers across Bangladesh. Spider Group Bangladesh has been a market leader in

introducing new products and services in Bangladesh.

This part will present the business case of the Enterprise Resource Planning

(INFORMATION SYSTEM) focusing on the following Analysis

1. Human Resource Management (HRM)

2. Financial analysis i.e. returns on investment (“ROI”), net present value (“NPV”),

etc.

3. Supply Chain Management,

4. Customer Relationship Management (CRM)

4.2 Background of INFORMATION SYSTEM in SPIDER GROUP BD:

There is a risk of SPIDER GROUP BANGLADESH making growth decisions without

the right information. Here is the Lack of communication between organizational units,


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endless paper trails and labor-intensive practices lead to unacceptable accuracy when it

comes to knowing critical details about important assets. Hence, SPIDER GROUP

BANGLADESH need to establish Asset Management (system and processes) which

cover the entire lifecycle of any given asset, from the initial request for a need until the

asset is physically disposed. Asset Management will enable us to realize greater ROI,

measure and reduce the total cost of ownership and increase employee productivity. The

project will have four components: (a) Asset Management, (b) Activity Management, and

(c) Document management.

4.3 Objectives of INFORMATION SYSTEM in SPIDER GROUP BD.

The primary objectives are:

Reduce the purchase cycle time through improved and coordinated

information flow

Improvement Asset management and tracking

Increase customer satisfaction by improvement in Asset utilization

Improve in business processes through adoption of best business practices

Improve decision making process by providing timely information.

Increases the productivity by properly manage the HRMS.

Manage Payroll, recruitment agency, payment mode, PF etc.

Manage the leave management, facility management etc.

Realize greater ROI, measure and reduce the total cost of ownership and

increase employee productivity.

4.4 Architecture of INFORMATION SYSTEM in Spider Group BD.

INFORMATION SYSTEM stands for Enterprise Resource Planning software.

INFORMATION SYSTEM software aids and controls the INFORMATION SYSTEM

management system, which is a system that integrates and automates all facets of

business operations including planning, manufacturing, sales and marketing, inventory

control, order tracking, customer service, finance and human resources.


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Figure: One Data Model One User Interface

4.5.1 .1General Ledger-Features

Flexible Chart of Account structure

Shorthand Account Alias

Unlimited organization structure

Use DFF to add custom data fields w/o programming

Advanced Intercompany Accounting (CENTRA)

Handles various types of journals such as Inter Company, reversing,

consolidation, recurring, statistical etc.

Flexible Mass Account Maintenance

Application Desktop Integrator

Perform Drill-Down Inquiries

Single Integrated System

Post automatically at scheduled time or real-time

Mass Allocation journal


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4.5.1 .2 Payables-Features

Control for duplicate invoice

Receive electronic invoices via EDI Gateway

Automatically generate recurring invoice

Predefine Distribution Sets

Process Prepayments

Pay on receipt

4.5.1 .3 Receivables-Features

Specify customer relationships

Create customer credit profiles

Recognize revenue using invoicing rules

Recurring invoices

Consolidated billing

Various transaction types e.g. Invoices, Credit Memo, Deposits, Guarantees

Customer statements & reminder letters

Drill-down to details by aging bucket

4.5.2 Asset Management:

Effective asset management ensures employees always have equipment, tools, and other

resources when and where they need them. This can be achieved by tightly controlling

assets through meticulous record keeping and control procedures, or by purchasing and

maintaining spare materials to provide sufficient safety stocks needed items.

4.5.2.1 Active Asset Management Landscape:

Active asset management includes workflow that lets an organization handle asset

requisitioning, purchasing, receiving, deploying, and retiring in best possible way.

Request Procure

Deploy Manage Recycle


Page | 20

An active asset management system should be able to provide the following information

in real-time:

Asset owner

Asset location

Asset lease/purchase information

Asset maintenance, warranty, and replacement cost; and

Other related operational information.

Moving forward to an active asset management from a chaotic situation at SPIDER

GROUP BANGLADESH will require time considering resource availability, readiness,

process engineering, IT-business alignment, and broad capabilities.

4.5.2.3 Benefits:

By actively automating asset management, SPIDER GROUP BANGLADESH would

enable maximize its‘ organizational performance and achieve following efficiencies:

Productivity gains in labor utilization

Gaining volume procurement savings

Improving service request tracking and resolution

Reducing contract penalties or compliance penalties for lost or modified assets

Reclaiming upgraded asset components upon lease return at contract

termination

Avoiding overpayment of fees on obsolete assets for extended term durations

4.5.3Activity Management:

Activity data are time-dependent. At SPIDER GROUP BANGLADESH, we have

identified at least three types of activities:


Page | 21

1. To-do activities: short-term tasks that must be completed before a certain date but

not in a specific time, e.g. telephone calls, faxes, etc.

2. Fixed-time activities: Calendar events that must be performed at a specific time

on a specific date, such as meetings, conventions, etc.

3. Project activities: Longer-term tasks, where the action can span days, weeks, or

even months, and where the activity is dependent on the completion of other

activities or is a requirement for other activities.

4.5.4 Document Management:

Researchers estimate that between fifty and eighty percent of company information lies

not in back-end data systems, but in documents and e-mails and attachments.

In document management documents are stored in a single, centralized area, so that users

can access the document store via browser, e-mail client, desktop applications, and

collaboration applications, etc. They can easily add or archive documents from within e-

mail clients, desktop folders and applications.

SPIDER GROUP BANGLADESH would like to have a formal document management

procedure for tracking in process, released, or obsolete documents. All relevant

documents of the right version should be attached to the place they belong.

4.5.5 Users:

Whole SPIDER GROUP BANGLADESH will be benefited from INFORMATION

SYSTEM implementation, as it will automated the material procurement business

process, which would include comprehensive RFQ process combined with user-defined

techno-commercial evaluation of the bids submitted. It would further track the status of

indents/ enquiries and purchase orders to ensure faster material procurement.

4.5.6 Human Resource Management in INFORMATION SYSTEM:

In Spider Group Bangladesh Human Resource Management (HRM) module covers every

activity dealt by the HR department. This module enables an organization to capitalize on


Page | 22

the workforce - their most important asset. It helps in performing HR activities such as

recruitment, salary, leave management, payroll, etc.

Reports:

MIS reports

Attendance Report

Leave Balance as well as details

Vouchers

Salary Structure

4.5.7 Costs-Benefit Analysis:

At least two areas of SPIDER GROUP BANGLADESH will benefit from

INFORMATION SYSTEM implementation. First, INFORMATION SYSTEM will

ensure that SPIDER GROUP BANGLADESH employees are always allocated the

resources they need to be most productive. Second, it will save SPIDER GROUP

BANGLADESH money by reducing the total cost of ownership (TCO) associated with

its assets, assuring that active asset management landscape has been followed, and

SPIDER GROUP BANGLADESH buys only what it needs.

Several leading experts believe that an effective asset management program can achieve

up to 30% reduction in annual TCO costs. For example, ―Information Technology Asset

Management (ITAM) processes commonly yield an annual savings of 20 percent to 30

percent over the average TCO‖.

Project Cost:

The approximate project cost is about USD 2.5 million. The project will have a 3 year life

for depreciation purpose.


Page | 23

Cost Heads USD Taka (1US$=65Tk)

Software Implementation 1,000,000 65,000,000

Software License 300,000 19,500,000

Hardware 700,000 45,500,000

IT Infrastructure & PCs 100,000 6,500,000

Buffer for customisation 100,000 6,500,000

Project Management 120,000 7,800,000

SQA Audit 30,000 1,950,000

Traning 80,000 5,200,000

Teambuilding and development 20,000 1,300,000

Rewards, recognition and awards 5,000 325,000

International Calls & VPN 15,000 975,000

Traveling (India & within Bangladesh) 30,000 1,950,000

ERP Awareness Program 5,000 325,000

Entertainment 15,000 975,000

Miscellinous 10,000 650,000

Total 2,530,000 164,450,000

Figure: Project Cost

4.5.8 Financing:

The existing capital mix of SPIDER GROUP BANGLADESH is the use of 30% debt for

every 70% of equity capital employed. However, in order to match industry practices, the

Project is taken to be financed with 40:60 debts to equity ratio.

Cost of Capital:

Weighted average cost of capital (“WACC”) for a project with average risk is about

15.75%.The Project is an average risk project on a stand-alone basis, because projects

of similar kinds have already been implemented elsewhere with success, and no material

uncertainty is underlying Project‘s implementation or its operation. With regard to

corporate (within SPIDER GROUP BANGLADESH) risk, however, the Project may

rather be viewed as a low risk project because implementation of the Project would

ensure making better business decision fast which can make the difference between


Page | 24

surviving and thriving in an increasingly competitive communications marketplace.

Overall, it is not unreasonable to evaluate the Project at a WACC of 15.75%.

4.5.9 Revenue Assumptions:

Although there is no doubt about the vast possibility of revenue generation through cost

savings due to INFORMATION SYSTEM implementation, but unavailability of key data

because of current chaotic asset management system made it virtually impossible to

estimate the actual cost savings that will be realized through INFORMATION SYSTEM

implementation.

Productivity gains in labor utilization: All procurement professionals, if needed, and

two employees are dedicated on custom made reporting and tracking. Procurement expect

around 45 man day per month will be saved by implementing the INFORMATION

SYSTEM solution. This converts in cost savings for 2 employees per month @ 24 days

per month per employee. In a similar exercise, technical department (site acquisitions)

has estimated that due to INFORMATION SYSTEM such savings can be realized for 1

employee in every two months. Technical operation has estimated 19 working hours per

day would save from the project, which comprised of Engr./SE/Spare parts

officer/DGM/AGM hour; and Technical (Planning) has estimated 3, 5, and 5 such

employees for year 1, 2, and 3 respectively.

Based on above input the business case assumes for calculation purpose, similar savings

are also achievable in other divisions and estimates another 9 employee cost can be saved

through INFORMATION SYSTEM implementation (1 employee/division).


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Productivity gains from Labor Utilization

ITEM DAY Head count

saving per year

After Project Implementation

2005 2006 2007

BDT BDT BDT

Procurement 45 Man

days/Moth

24 12,000,000 13,200,000 14,520,0

00

Technical (Site

Accusation)

20% of 285

man day

1 persons 500,000 550,000 605,000

Technical-

Operation

19 hrs/day 2.38 1,187,5100 1,306,205 1,436,87

5

Technical-Planning 1,500,000 2,750,000 3,025,00

0

All other Division 9 divisions 9 person@1

person/Division

4,500,000 4,950,000 5,445,00

0

Total 19,687,500 22,756,250 25,031,875

Figure: Productivity Gain

Savings by retiring obsolete assets that attract shipping, tax, and other support:

Procurement estimated that on average BDT 20,000/month can be saved by retiring

obsolete assets that are sitting idle in the warehouses if proper asset tracking through

INFORMATION SYSTEM implementation is achieved. Technical-operation estimated

that 2.5 hours can be saved by implementing the project.

Savings by retiring obsolete assets that attract shipping, tax and other support

costs.

Procurement (USD) 5,705 7,377 9,030

Technical-

Operation (USD)

2.5 hrs/day 0.31 2,409 2,569 2,693

Total (USD) 8,1114 9,946 11,723

Figure: Saving Obsolete Assets


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Savings on printing, distribution, and mailing costs: In document management,

information is stored in a single, centralized storage area; it will certainly reduce printing,

distribution, and mailing costs, as employees will have the access to the necessary

documents by browsing, and will be able to take the print out of necessary portion instead

of the whole document. It will also reduce the inter-departmental mailing cost. Up to

BDT 10,000 per month of such savings has been forecasted by procurement department.

Similar savings can also be realized throughout SPIDER GROUP BANGLADESH.

Savings on printing, distribution and mailing costs (Document Management)

Procurement 10000/month 120,000 144,000 172,800

All other

divisions

9 divisions 1,080,000 1,296,000 1,555,200

Total (BDT) Annual 1,200,000 1,440,000 1,728,000

Total (USD) Annual 18,501 21,525 24,615

Figure: Saving by Document Management

Savings from not hiring of „Audit firm‟ for asset reconciliation: Prior to Sarbanes-

Oxley, ‗asset reconciliation‘ in SPIDER GROUP BANGLADESH was done manually

through hired audit firm, which may not represent the true picture; In year 2003, hiring

such a local audit firm for its ‗Asset Reconciliation‘ cost SPIDER GROUP

BANGLADESH around BDT 1,000,000. Now with the new stringent regulatory

compliance auditing firms will certainly implement record fee price hikes for intensified

diligence.

Savings from not hiring of “Audit firm” for asset reconciliation

Finance (Audit fee) 1,000,000 1,200,000 1,440,000

Total (BDT) 1,000,000 1,200,000 1,440,000

Total (USD) 15,418 17,937 20,513

Figure: Saving in terms of Audit Firm

Savings by improving service request tracking and resolution (PR): The project

would save the working hours of employees by no means of improving service request

tracking time and resolution, especially in raising purchase request time. Technical-


Page | 27

operation estimated about 14 working hours per day would be saved from the said

project.

Procurement expect around 45 man day per month will be reduced by implementing the

INFORMATION SYSTEM solution. We have considered the following things;

Electronic PR

Electronic conversion of PR to PO

Electronic RFP

Automated vendor evaluation process

Automated product evaluation process

Savings by improving service request tracking and resolution (PR)

Procurement 45 Man days/Month 24 12,000,000 13,200,000 14,520,000

Technical–Operation 14 hours/ day 1.75 875,000 962,500 1,058,750

Total (BDT) 12,875,000 14,162,500 15,578,750

Total (USD) 198,504 211,697 221,920

Figure: Saving by Improving Service

Other savings: Technical-operation has estimated that about 6.5 working hours per day

would save by implementing the project from the following rationales.

Figure: ERP Operational Excellence


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4.5.10Financial Analysis:

Table below, presents the financial analysis for the Project.

2004 2005 2006 2007

0 1 2 3

a) Cash Inflow

1.Productivity gains in labor utilization 303,538 340,153 356,579

2.Savings by retiring obsolete assets that attract

shipping, tax and other support costs. 8,114 9,946 11,723

3.Savings on printing, distribution, and mailing

costs (document management) 18,501 21,525 24,615

4.Savings from not hiring of 'Audit firm' for

asset reconciliation 69,380 99,295 117,521

5.Savings by improving service request tracking

and resolution 198,504 211,697 221,920

6. Savings from Increased asset utilization 81,000 106,500 131,700

7. Savings from reduction in delay in project

implementation - - -

8.Other savings 6,263 6,680 7,002

Total Cash Inflows(a) 685,302 795,796 871,061

b) Cash Outflow

1.Total Project Cost (2,530,000)

Total Cash Outflows(b) (2,530,000)

Net Cash flows (a-b) (2,530,000) 685,302 795,796 871,061

Cumilitive Net Cash Flows (2,530,000) (1,844,698) (1,048,902) (177,842)

Discounted Cash Flows (at average) (2,530,000) 592,053 593,963 561,675

Cumilitive Discounted Net Cash Flows (2,530,000) (1,937,947) (1,343,983) (782,308)

Net Present Value (782,308)

Pay Back Period Beyond project life

Discounted Payback Period Beyond project life

IRR -3.43%

Return on Investment (ROI) -30.92%

Description

Figure: Financial Analysis

4.5.11 Recommendation:

Although, the financial analysis does not do any good to the project but it is only because

of the non-availability of key data which in fact reinforce the fact that INFORMATION

SYSTEM is vital for SPIDER GROUP BANGLADESH‘s growth. The project

recognizes that technology investments are vastly different. The return on technology

investments is, instead, derived from the processes that the technologies enable. Thus, the

source of the project‘s ROI flows from the modified business processes that are possible

only with the INFORMATION SYSTEM implementation. Being an IT driven company


Page | 29

SPIDER GROUP BANGLADESH must embrace the INFORMATION SYSTEM in

order to challenge upcoming competition as well as to ensure continuous growth and

profitability.

4.5.12Critical Success Factors:

In addition to the above mentioned recommendation ICU identified followings as the

critical success factor, and suggest for action. Effective asset management requires

timely, accurate information. Special care should be given during data integration as

omission of even low-value items can have an unexpected effect on company‘s

productivity and profitability. Therefore, SPIDER GROUP BANGLADESH should

include as many assets as possible to maximize its return on investment. When acquiring

new assets ‗life cycle‘ factors such as installation, usage, contracts, support, retirement,

and continuity should get special attention to realize the benefits from INFORMATION

SYSTEM implementation. Prior to any investment enough attention should be given to

the ground work, i.e. developing the ‗knowledge base‘ of the employee about the projects

through training/knowledge sharing and internal marketing prior implementation of the

project. Otherwise, the technology brought in SPIDER GROUP BANGLADESH may

add little or no value to the company. One thing should be remembered that technology

itself does not provide any benefits, but the benefits are derived from the technology by

the users. Another area should get sufficient attention is the contents of ‗Training

Materials‘. Training materials should not only focus on the RFP requirements and

operating instructions. Rather, it should be linked with the quantifiable benefits as well as

qualitative benefits that are foreseen in project‘s business case.

4.5.13 Monitoring Strategies:

The project will be monitored first after the six months of its implementation then in year

basis. The monitoring criteria will be:

End users are using the new technology with comfort.

Improvement of Asset Tracking System


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Document management System

Employee productivity.

4.5.14 Present status:

Tata Consultancy Services (TCS) has been selected as the vendor for INFORMATION

SYSTEM implementation. The project is planned to start on March 3, 2005; and finish by

October 31, 2005.

4.6 INFORMATION SYSTEM Analysis Scope for Spider Group BD:

4.6.1 Scenario Financial Accounting Analysis:

This scenario enables you to analyze Financial Accounting data from INFORMATION

SYSTEM.

Accounts Receivable: Line Items, Payment History, Transaction Data

Accounts Payable: Line Items, Transaction Data

General Ledger: Transaction Figures, Financial Statements

Asset Accounting: Annual Values, Period Values

Accounts Receivable: Line Items, Payment History, Transaction Data

4.6.2 Scenario Controlling Analysis:

This scenario enables you to analyze Controlling data from INFORMATION SYSTEM.

Costs and Allocations

Costs and Allocations (by Activity Type)

Activity Type Quantities and Prices-

Statistical Key Figures -

Cost Object Controlling -

Product Cost Planning - All Cost Estimates -

Product Cost Planning - Released Cost Estimates


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4.6.3 Scenario Sales Analysis:

This scenario enables you to analyze sales and distribution data from INFORMATION

SYSTEM.

Quotations / Orders

Service Level - Order Quantities

Service Level: Order Items

Service Level: Orders

Backorders

Sales Overview

4.6.4 Scenario Cross-Functional Analysis: Financial and Sales Data:

The scenario Cross-Functional Analysis: Financial and Sales Data describes all the

necessary activities to build up a report that analyzes data from financial accounting and

sales and distribution. With the detailed description easy enhancement of the report

according to individual customer requirements is possible, for example: include more

or other characteristics, other key figures, and break down in other intervals, and so on.


Page | 32

4.6.5 Scenario Sales Planning:

The sales planner has the possibility to plan the sales quantity of materials per customer.

To support the planning, the sales quantity from the comparison month of the last year is

displayed.

Key Points:

Upload of the sales historical data from INFORMATION SYSTEM

Planning layout which shows the historical data per customer and material

4.6.6 Scenario Purchasing Analysis:

This scenario enables you to analyze purchasing data from INFORMATION SYSTEM.

Info Cubes:

Purchasing Data

Vendor Evaluation

Purchasing Groups

4.6.7 Scenario Inventory Analysis:

This scenario enables you to analyze stock data from INFORMATION SYSTEM and to

evaluate materials for which no movement has occurred.

Info Cubes:

Material Movements (technical name 0IC_C03)

Slow-Moving Items (technical name 0IC_MC01)

Key Points:

Stock overview

Valuated Stock Analysis

Blocked Stock Analysis

Slow Moving items Analysis

Page | 33

CHAPTER 5:

RESULTS & FINDINGS

[Scopes of INFORMATION SYSTEM in Bangladesh]

5.1 Results & Findings:

Telecommunication sector is emerging in this country. Proper regulations and appropriate

legislations can help this sector to grow. This industry already adopts the

INFORMATION SYSTEM, which can help in their sales activity and maximize their

profit. Sales activities will be redesigned and reengineered with the latest technology

inauguration and take the organization in the path of growth and prosperity. Here is the

some scope where INFORMATION SYSTEM can play vital role for operational

excellence & growth of organization.

5.2 Scopes of INFORMATION SYSTEM for Bangladesh:

In last decade the Government to Bangladesh realized that ICT (Information and

Communication Technology) could be key element of our financial emancipation and

declared it as a thrust sector. The National e-Governance Plan (SPIDER GROUP

BANGLADESH) approved by the Government of Bangladesh includes many high

impact e-Governance initiatives and projects that have been identified as Mission Mode

Projects (MMP‘s). One such MMP focuses on e-Governance at Municipalities. The

present document is a Detailed Project Report for the e-Governance Project at

INFORMATION SYSTEM opportunities in Bangladesh and has been prepared as per the

guidelines published by Govt. of Bangladesh for the above mentioned scheme. The

objective of the current project is to provide efficient services to citizens, administrators

and comparators by implementing INFORMATION SYSTEM Based Solutions to enable

Bangladesh government processes and workflows. Key objectives of this project are as

follows:


Page | 34

Improve the quality of Citizen Service Delivery System and offer these services

with optimal effectiveness and transparency.

Allow data sharing across different departments, thus bringing about the

efficiency in administration functioning.

Facilitate the decision making process of top management by furnishing the right

information at right time.

Help different departments to improve their revenue collection efficiency.

Harness the use of technology to create sense of achievement amongst employees

and citizens

MIS is envisaged to undertake Enterprise Wide Resource Planning approach, enabling

Bangladesh to use various data in most optimal way and provide services to citizens in

efficient and effective manner. Various functional modules to be covered under MIS are

given below:

5.3Birth & Death Department:

Health department takes care of the health in general of the people within the corporation

limits. The department runs many health schemes like D.P.T., Polio, Measles and other

deceases. Most important customer centric process the department has is the registration

of Birth and death of the citizens. Also department has the responsibility of issuing the

food licenses. Birth & Death department objective is to register the Birth and Death

within the corporation limit, also issue the certificate for the same.

Services delivered by the department:

• Birth and Death Certificate

• Birth and Death Registration

• Birth and Death Registration-Delay

• Correction of Registration details

• Cremation Certificate

• Registration and Certificate for still birth


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5.4 Property Tax Department:

Property tax is one of the main sources of revenue for the Bangladesh. Residential and

commercial properties, situated within the limits, are assessed for tax. Property tax is tax

on immovable or tangible real property such as land, buildings and permanent

improvements. Based on such assessments, all the property holders are expected to pay

the property tax. Property Tax may comprise of basic house/building tax plus service

taxes such as street tax, and conservancy/scavenging tax. It is collected either half yearly

or annually. Property tax department is responsible for billing & collection of property

tax for all residential, commercial, open plots and other types of properties.

5.5 Water Supply Department:

The water supply department is involved with supplying of water from the reservoir to

the consumer. The major responsibilities of the Water supply (distribution) department

are

• Issuance of new water connection

• Plumber License

• Water disconnection, Transfer

• Billing & Collection

5.6 Building Permission Department:

Building Permissions is one of the main activities of PMC. The department is involved in

granting Building Permissions to Licensed Architects / Engineers / Structural Engineers

for construction of buildings within the Bangladesh jurisdiction area. The department

works in close association with the Development Plan Section, carries out demolitions of

unauthorized constructions, represent PMC in legal matters (affidavits, etc.), resolves

complaints about Building Control.

The main functions of the department are:

• Providing Building Permissions to applications from licensed Architects / Engineers /

Structural Engineers


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• Involves activities of Plinth Checking and provision of Occupancy Certificates after

Commencement Certificate for construction is given to the applicants

5.7 E- Procurement:

The tender cell in the corporation is responsible for the publication and sale of the

tenders. The publication of the tenders is outsourced to an organization and the same

organization do the publication and upload of the tenders on the online system. Also the

sale of the tender happens online. The proposed E-Procurement module will empower the

Bangladesh to Covers full life cycle of purchasing (indent to receipt of goods), Connects

buyers and suppliers through electronic exchange of Tenders, catalogs, contracts, POs,

invoices etc. The basic responsibility of the Tender Cell of Bangladesh is the sale and

processing of tenders of various departments of PMC. Currently only the sale of the

Tenders is done through online system.

5.8 Licenses department:

Bangladesh issues various types of licenses like Food Licenses, Market Licenses,

Nursing home registration, Dog licenses, Pre conception & pre natal diagnostic

techniques licenses, etc. License department‘s main objective is to issuance of new

license keeping in mind various pre-requisite factors. Also renewal of the existing

licenses is undertaken.

5.9 Solid waste Management:

The basic responsibility of the Solid waste management department of Bangladesh is the

collection, transportation and disposal of solid waste. Solid waste collection in

Bangladesh is handled through primary & secondary collection. Primary involves house

to house collection while secondary is through the containers placed at identified

locations in the PMC limits. Secondary collections through containers are phased based

on the location, the expected waste generated in the area and the availability of vehicles

for collection. Around 700 containers are identified for daily collection while some may

have the waste collected at a lesser frequency. Manpower of over 7500 persons supports


Page | 37

the Solid waste management department. The department has over 65 dumper vehicles,

45 bulk refuse contractors.

5.10 Accounts Department:

Accounts department is the back bone of any ULB and constitute of both Accounts and

Audit. The major responsibilities are To receive all moneys payable to the Corporation

and credit the same in the bank Account of the Corporation, To make payment on

account of Municipal Fund, To estimate Income & Exp. statement for the next financial

year, To make payment of Salary and pension of the employees, To control the budget

sanctioned by the Corporation, To make scrutiny of every financial proposal on behalf of

Hon. Commissioner. Accounts department is one of the vital departments of any ULB

and controls the overall budgeting of the local body. It has to undertake the balancing act

of getting the maximum possible funds to the ULB and then undertake the expenditure in

a planned manner.

5.11 Asset management Department:

Assets reflect the wealth of the corporation. Based on the nature of the assets it get

appreciated or depreciated. Also for the double entry accounting system asset register is

must. Asset register is required to prepare the balance sheet.

5.12 Material management Department:

Inventory management is one of the huge tasks for any corporation or other government

organization. Currently the corporation has the inventory of Vehicle parts, IT

infrastructure, projects, and many more other related unrelated departments. The main

objective of the material management is to keep the record of the inventory for each type

of the item.

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CHAPTER 6

IMPLEMENTATION, ANALYSIS

& SUGGESTIONS

6.1 Implementation:

Businesses have a wide scope of applications and processes throughout their functional

units, producing INFORMATION SYSTEM software systems that are typically complex

and usually impose significant changes on staff work practices. Implementing

INFORMATION SYSTEM software is typically too complex for in-house developers,

lacking the required skills, so it is desirable and advisable to hire outside consultants who

are professionally trained to implement these systems. This is typically the most cost-

effective way. There are three types of services that may be employed - Consulting,

Customization, and Support. The length of time to implement an INFORMATION

SYSTEM depends on the size of the business, the number of modules, the extent of

customization, the scope of the change, and the willingness of the customer to take

ownership for the project. INFORMATION SYSTEM systems are modular, so they don't

all need be implemented at once. Implementation can be divided into various stages, or

phase-ins. The typical project is about 14 months and requires around 150 consultants. A

small project (e.g. a company of less than 100 staff) can be planned and delivered within

3–9 months; however, a large, multi-site or multi-country implementation can take years.

The length of the implementations is closely tied to the amount of customization desired.

To implement INFORMATION SYSTEM systems, companies often seek the help of an

INFORMATION SYSTEM vendor or a third-party consulting company. Consulting

firms typically provide three areas of professional services: consulting, customization,

and support. The client organization can also employ independent program

management, business analysis, change management, and UAT specialists to ensure their

business requirements remain a priority during implementation.

http://en.wikipedia.org/wiki/System

http://en.wikipedia.org/wiki/Consultancy

http://en.wikipedia.org/wiki/Program_management



http://en.wikipedia.org/wiki/Business_analysis

http://en.wikipedia.org/wiki/Change_management_(people)

http://en.wikipedia.org/wiki/Acceptance_testing#User_acceptance_testing


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6.2 The Hidden Costs of IT:

Although different companies will find different land mines in the budgeting process,

those who have implemented INFORMATION SYSTEM packages agree that certain

costs are more commonly overlooked or underestimated than others. Armed with insights

from across the business, INFORMATION SYSTEM pros vote the following areas as

most likely to result in budget overrun.

6.3 Training:

Training is the near-unanimous choice of experienced INFORMATION SYSTEM

implementers as the most elusive budget item. It's not so much that this cost is

completely overlooked as it is consistently underestimated. Training expenses are high

because workers almost invariably have to learn a new set of processes, not just a new

software interface.

6.4 Integration and Testing:

Testing the links between INFORMATION SYSTEM packages and other corporate

software links that have to be built on a case-by-case basis is another often

underestimated cost. A typical manufacturing company may have add-on applications

for logistics, tax, production planning and bar coding. If this laundry list also includes

customization of the core INFORMATION SYSTEM package, expect the cost of

integrating, testing and maintaining the system to skyrocket.

6.5 Data Conversion:

It costs money to move corporate information, such as customer and supplier records,

product design data and the like, from old systems to new INFORMATION SYSTEM

homes. Although few CIOs will admit it, most data in most legacy systems is of little

use. Companies often deny their data is dirty until they actually have to move it to the

new client/server setups that popular INFORMATION SYSTEM packages require.

Consequently, those companies are more likely to underestimate the cost of the move.


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But even clean data may demand some overhaul to match process modifications

necessitated—or inspired—by the INFORMATION SYSTEM implementation.

6.6 Data Analysis:

Often, the data from the INFORMATION SYSTEM must be combined with data from

external systems for analysis purposes. Users with heavy analysis needs should include

the cost of a data warehouse in the INFORMATION SYSTEM budget—and they should

expect to do quite a bit of work to make it run smoothly. Users are in a pickle here:

Refreshing all the INFORMATION SYSTEM data in a big corporate data warehouse

daily is difficult, and INFORMATION SYSTEM systems do a poor job of indicating

which information has changed from day to day, making selective warehouse updates

tough. One expensive solution is custom programming. The upshot is that the wise will

check all their data analysis needs before signing off on the budget.

6.7 Consultants Ad Infinitum:

When users fail to plan for disengagement, consulting fees run wild. To avoid this,

companies should identify objectives for which its consulting partners must aim when

training internal staff. Include metrics in the consultants' contract; for example, a specific

number of the user company's staff should be able to pass a project-management

leadership test—similar to what Big Five consultants have to pass to lead an

INFORMATION SYSTEM engagement.

6.8 Replacing Your Best and Brightest:

It is accepted wisdom that INFORMATION SYSTEM success depends on staffing the

project with the best and brightest from the business and IS. The software is too complex

and the business changes too dramatic to trust the project to just anyone. The bad news is

a company must be prepared to replace many of those people when the project is over.

Though the INFORMATION SYSTEM market is not as hot as it once was, consulting

firms and other companies that have lost their best people will be hounding yours with


Page | 41

higher salaries and bonus offers than you can afford—or that your HR policies permit.

Huddle with HR early on to develop a retention bonus program and to create new salary

strata for INFORMATION SYSTEM veterans. If you let them go, you'll wind up hiring

them—or someone like them—back as consultants for twice what you paid them in

salaries.

6.9 Implementation Teams Can Never Stop:

Most companies intend to treat their INFORMATION SYSTEM implementations as

they would any other software project. Once the software is installed, they figure, the

team will be scuttled and everyone will go back to his or her day job. But after

INFORMATION SYSTEM, you can't go home again. You're too valuable. Because they

have worked intimately with INFORMATION SYSTEM, they know more about the

sales process than the salespeople do and more about the manufacturing process than the

manufacturing people do. Companies can't afford to send their project people back into

the business because there's so much to do after the INFORMATION SYSTEM software

is installed. Just writing reports to pull information out of the new INFORMATION

SYSTEM will keep the project team busy for a year at least. And it is in analysis—and,

one hope, insight—that companies make their money back on an INFORMATION

SYSTEM implementation. Unfortunately, few IS departments plan for the frenzy of

post-INFORMATION SYSTEM installation activity, and fewer still build it into their

budgets when they start their INFORMATION SYSTEM projects. Many are forced to

beg for more money and staff immediately after the go-live date, long before the

INFORMATION SYSTEM project has demonstrated any benefit.

6.10 Waiting for ROI:

One of the most misleading legacies of traditional software project management is that

the company expects to gain value from the application as soon as it is installed; the

project team expects a break and maybe a pat on the back. Neither expectation applies to

INFORMATION SYSTEM.

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CHAPTER 7

CONCLUSION & REFERENCES

7.0 Conclusion:

I find that INFORMATION SYSTEM adopters are consistently higher in performance

across a wide variety of measures than non-adopters. Our results suggest that most of the

gains occur during the (relatively long) implementation period, although there is some

evidence of a reduction in business performance and productivity shortly after the

implementation is complete. However, the financial market consistently rewards the

adopters with higher market valuation both during and after the adoption, consistent with

the presence of both short term and long term benefits.

Overall, this suggests that indeed INFORMATION SYSTEM systems yield substantial

benefits to the firms that adopt them, and that the adoption risks do not exceed the

expected value, although there is some evidence (from analysis of financial leverage) that

suggests that firms do indeed perceive INFORMATION SYSTEM projects to be risky.

There also appears to be an optimal level of functional integration in INFORMATION

SYSTEM with benefits declining at some level, consistent with diseconomies of scope

for very large implementations, as one would typically expect.

The growing information needs of an enterprise make it imperative to improve or replace

old systems. Especially under the present Bangladeshi business environment, where the

globalization has been initiated, full convertibility is coined, Infrastructure Projects are

nearing completion, and it is expected that the whole business system will undergo a

major shift. So establishing INFORMATION SYSTEM for every organization like

SPIDER GROUP BANGLADESH will provide better business world and modern

management.

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8.0 References:

1. Annual Report-2012 of Spider Group Bangladesh Limited.

2. AT Kearney Information Technology Monograph: Strategic Information

Technology and the CEO Agenda, 1996, 1998, 2000.

3. Austin R., and Cotteleer, M. Current issues in IT: Enterprise Resource Planning.

Unpublished presentation, Harvard Business School, October 1999.

4. Brynolfsson, E. and Hitt, L. Beyond computation: Information technology,

organizational transformation and business performance. Journal of Economic

Perspectives, Fall 2000.

5. Cotteleer, M., Austin, R., and Nolan, R. Cisco Systems, Inc.: Implementing

INFORMATION SYSTEM. Harvard Business School Case, Report no. 9-699-

022, 1998.

6. Escalle, C., Cotteleer, M. and Austin, R. Enterprise resource planning

(INFORMATION SYSTEM). Harvard Business School Case, Report No. 9-699-

020, 1999.

7. Gable, G. and Vitale, M.R. (Guest Editors). The Future of Enterprise Resource

Planning Systems. Special Issue of Information Systems Frontiers, 2 (2), 2000.

8. Kelley, M. Productivity and information technology: The elusive connection.

Management Science, 40 (11), 1406-1425, 1994.

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9. McAfee, A. The impact of enterprise resource planning systems on company

performance. Unpublished presentation at Wharton Electronic Supply Chain

Conference, December 1999.

10. O‘Leary, D. Enterprise Resource Planning Systems: Systems, Life Cycle,

Electronic Commerce, and Risk. Cambridge University Press, 2000.

11. Ross, J.W. The INFORMATION SYSTEM revolution: Surviving versus thriving.

MIT White Paper, Cambridge, MA, November 1998.

12. Sarkis, J., and Gunasekaran, A. (Editors). Enterprise Resource Planning –

Modeling and Analysis. Special Issue of European Journal of Operational

Research, in progress, 2001.

13. SAP Annual Report, 1996. (75% of market-share for the large firms.)

14. Stemand, C. INFORMATION SYSTEM user interfaces drive workers nuts.

Computerworld, pp. 1, 24, November 2, 1998a.

15. Westerman, G., Cotteleer, M., Austin, R., and Nolan, R. Tektronix: Implementing

INFORMATION SYSTEM. Harvard Business School Case, Report No. 9-699-

043, 1999.

16. Website of Spider Group Bangladesh Limited(www.Spider Group

Bangladesh.com)

Information System for SPIDER Group BD Chapter: 7

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Questionnaire:

For the employee of Spider Group Bangladesh Limited

Respondent Name: Md. Nafiul Hasan

Respondent Position: Assistant Manager

Department: Information Technology

1. Do you have any knowledge related with INFORMATION SYSTEM

Management of an Organization?

□Yes □ No

If yes

How many years you are belonging to INFORMATION SYSTEM Management?

Ans: Almost 2 Years

2. What is the meaning of INFORMATION SYSTEM in case of SPIDER GROUP

BANGLADESH?

Ans: Fasting the way of work.

3. What Type of Facility do you avail by using INFORMATION SYSTEM in your

Daily Operation?

Ans: Quicken selling & purchasing order, Easy employee monitoring, Easy

Pay rolling and so on.

4. Are there really any information risks by using INFORMATION SYSTEM in

Daily Operations?

Yes □ No□

If yes what is this?

Ans: Hardware & Software Failure

5. What is the meaning of HRMS in INFORMATION SYSTEM in case of SPIDER

GROUP BANGLADESH?

Ans: By using HRMS we basically do the task of online recruitment process.

6. What is the meaning of Asset Management in INFORMATION SYSTEM in case

of SPIDER GROUP BANGLADESH?

Ans: Managing resources by using IS by eliminating manual labor.

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