Information Systems In Business Final Project An Information System For Huca.pdf

Chapter 1: Shopee E-commerce company in Viet Nam — Success story E-commerce, or electronic commerce, is the exchange of goods between customers and sellers over the Internet.. Customer

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

DAI HOC TON DUC THANG

TON DUC THANG UNIVERSITY

INFORMATION SYSTEMS IN BUSINESS

FINAL PROJECT

AN INFORMATION SYSTEM FOR HUCA

Lecturer: Pham Thai Ky Trung

Class: N02 Group number: G3

Students’ names:

Major: International Business Academic Year: 2022 — 2023

HO CHI MINH CITY December 13, 2022

Student’s name Student ID | Assigned tasks Completion (“)

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Chapter 1: Shopee E-commerce company in Viet Nam — Success

story

E-commerce, or electronic commerce, is the exchange of goods between customers and sellers over the Internet E-commerce refers to any commercial transaction conducted via the Internet and is not just limited to the online sale of tangible goods

Business to business (B2B), business to consumer (B2C), customer to consumer (C2C), and customer to business (C2B) are the four different types of e-commerce models (C2B)

A number of prominent business-to-customer transaction formats, such as retail, wholesale, drop-shipping, crowdfunding, subscription, physical products, and services, are based on four different e-commerce models

1.1 Shopee and their business model

Sea Limited, a holding company with its headquarters in Singapore that was formerly known as Garena, is the only owner of Shopee An online marketplace called Shopee lets people buy and sell things A variety of categories are available for shoppers, including: Clothing, electronics, home goods, pet supplies, and dozens of other items Both Shopee's standard platform and its Mall product can be used for shopping Only products from reputable and high-quality companies, like Adidas or Samsung, will be shown on Shopee Mall

Brands aren't the only ones permitted to sell on the site, much like Amazon In theory, anyone with a product inventory might begin selling on Shopee Shopee does provide a sizable collection of instructional materials to assist its sellers in making the most of their product listings

The $100 billion digital economy of Southeast Asia is entering a new age with Shopee's relentless expansion in Vietnam In the post-COVID era, e-commerce will serve as the cornerstone of a new spectrum of alliances, and rivals are scrambling to build entire

ecosystems to meet as many customers’ requirements as they can

1.2 Business strategy

Shopee Marketing Plan

« Using cutting-edge marketing strategies

Utilizing fresh, popular, and viral items is one of Shopee's marketing gimmicks Shopee has the guts to use well-known artists as ambassadors to market their platform The concept of providing fresh content at each promotion makes this application simple to remember because the content is well-known, relatable, and pertinent

¢ Holding promo

The Shopee user-favorite Promo Weapon is offering free shipping to buyers In order to entice people to shop, Shopee offers free shipping with some transactions

¢ Lowest price promise

Consumers give price a lot of thought By utilizing the "Lowest Price Guarantee, 2x Money Back" marketing, Shopee takes advantage of this to compete with other marketplaces Customers may be motivated to shop on Shopee as a result

¢ Possess a distinct target market clear

Shopee has a target market, and ladies are its primary focus Shopee places a greater emphasis on products that cater to women's demands because there are more female than male e-commerce consumers

Shopee management system

« Processing Transactions System (TPS)

TPS is a type of computerized information system that can be created for commercial use Businesses can process massive amounts of data for transactional tasks like payroll and inventory by utilizing this technology This system's procedure involves sorting, viewing, and updating data, and the result is a report with information, a comprehensive list, and a summary Customer services, sellers, purchasers, and financiers that oversee business funds are Shopee companies that are included in TPS

¢ Management Information System (MIS)

MIS generates data that businesses utilize to both unify computerized company information and make decisions The Marketing Officer of the Shopee company, which is

a part of the MIS, is in charge of advancing the company's marketing initiatives

« Decision Support System (DSS)

Because both MIS and decision support systems are concerned with decision making, they are nearly identical The demand from the MIS on the decision support function led

to the creation of DSS DSS range in complexity and level of support for troubleshooting The Chief Marketing Officer of the company, Shopee DSS, is in charge of leading the marketing team and setting rules

« Executive Information System (EIS)

EIS is a computerized system that makes the executive branch easily accessible The Chief Executive Officer of the Shopee company, who serves as EIS, is in charge of overseeing and scrutinizing all functional business operations

1.3 E-commerce business of Shopee

Shopee is a fledgling e-commerce platform that is expanding quickly in Indonesia's online marketplace for buying and selling 2015 saw the formal launch of Shopee's online marketplace in Indonesia In 2018, Shopee exceeded its previous online marketplace by processing 1.5 million transactions in a single day, making it the biggest e-commerce in Indonesia Shopee provides a form of customer-to-customer (C2C) e-commerce, which entails buying and selling between customers Customers may purchase safely and comfortably with Shopee's vast selection of goods since it has integrated shipping services, a platform with cutting-edge features, and a variety of safe and secure payment

options

Through the chat function offered by the application, Shopee Indonesia's payment system offers an interactive buying and selling service system between vendors and buyers Buyers have access to a number of payment options through Shopee, from credit cards to bank transfers, Indomaret and Alfamart transfers, and Kredivo Shopee also offers a service called Shopee Pay that may be utilized to save money on both purchases and sales The "Shopee Coins" service, which consists of virtual coins that users can accumulate through purchases, is offered by Shopee Indonesia through the Shopee application Customers can use these "Shopee Coins" to get discounts on their subsequent purchases, which makes this E-Commerce popular

In addition to offermg a variety of payment options, Shopee also offers a Shopee guarantee program as a service to its clients Shopee offers a refund if the goods do not atrive since it works hard to make sure that its products reach customers Additionally, one of Shopee's benefits as a marketplace is that it is supported by renowned logistical facilities In order to better service clients, Shopee collaborates with a few logistics companies, including JNE, J&T, Ninja Express, GO-JEK (Go-Send), and Pos Indonesia 1.4 How Does Shopee Generate Revenue?

Shopee receives revenue via restaurant commissions, transaction fees, CPC advertising

on its platform, fulfillment services, and marketplace commissions

Shopee uses a marketplace business model for its own operations, matching supply (sellers) with demand (customers) The essential infrastructure (such as payment, logistics, product discovery, and other aspects) is then developed to make these transactions possible

¢ Commercial Commission

The commissions that sellers pay each time they sell something on the platform account for the majority of Shopee's income Shopee handles both the payment and logistics of an order in its capacity as the marketplace's administrator Additionally, it has added a variety of features that tempt customers to shop online For instance, the Shopee Feed provides customers with product recommendations powered by machine learning based

on their prior browsing and purchasing preferences Users are enticed to follow along by the feed's real-time updates from friends and relatives However, a number of variables affect the actual commission rate that a seller is charged For instance, the product category, market, overall sales volume, or whether the goods were sold on the standard market or the Shopee Mall all have an impact The actual market commission cost is between one and two percent Commissions for sales on Shopee Mall can reach a maximum of 6%

« Transfer Charges

Shopee additionally charges a transaction fee (of about 2 percent) on top of the marketplace commission to cover the service providers' payment gateway costs (such as Mastercard or Visa)

When choosing one of its installment plans, the transaction fee is also charged in addition

to ordinary purchases

¢ Fulfillment

The platform's end-to-end logistical solution, Fulfilled by Shopee (FBS), enables sellers

to have Shopee store and distribute their products on their behalf

Shopee either offers its own fleet of delivery drivers and vans or collaborates with regional logistics companies (such J&T Express and NinjaVan) to complete deliveries Then, sellers pay a price for each item they wish to be delivered and stored The cost is based on the size and weight of the package

Then, everytime a customer uses ShopeePay, merchants will pay a tiny percentage fee, just as Mastercard or Visa Although rates are not disclosed, it is reasonable to presume that they are close to one percent

¢ Fees for Delivery and Restaurant Commission

As was already mentioned, Shopee has started a meal delivery business that will go up against Grab and Go-Jek

Despite the fact that rates have not yet been made public, it is safe to presume that restaurants will give Shopee a fee for each order These commissions often vary from 20

to 30 percent

Customers will also be required to pay delivery fees in addition to commissions in order

to receive their food

1.5 Why are they (Shopee) successful?

Shopee, which has been in business for only four years, is now the leading e-commerce site in

the region, employing more than 8000 people in eight different countries across Southeast Asia, Tatwan, and Brazil Many rivals must be perplexed as to how Shopee achieved such swift success

Up until the third quarter of 2021, Shopee was still the most popular website and application in Southeast Asia, according to a report by iPrice and SimilarWeb Why then was Shopee, a latecomer, able to dominate the market in such a short period of time? Here are our conclusions:

¢ Mobile-first Initiative

At the time, mobile shopping was becoming more popular but still hadn't developed to the point where significant players would have been interested in it The majority of current e-commerce businesses concentrate on their primary platform, the website, despite the strong mobile penetration rate of 32% (according to we are social) Shopee made the decision to go the other way and release the Shopee application first in order to get into the untapped mobile user market

As a result of the region's M-commerce development, Shopee rode the wave to the top with more than 90% of transactions taking place through the app Shopee's user-friendly design, clean layout, simple navigation, and rapid links have helped its users make mobile buying a simple habit Additionally, Shopee was one of the first to incorporate live streaming and shoppertainment components into the app for boosting user engagement, such as games, lucky

draws, and red packets

¢ Localization

Localization was yet another vital component of Mr Zhou Junjie's business plan for Shopee Shopee can develop market-specific features that appeal to clients in each country because they have stand-alone applications for each of the 7 countries in which they do business

Despite being part of the same large region, each country in Southeast Asia has unique characteristics, including a unique language, national currency, culture, and consumer habits For instance, Shopee includes a section with Islamic products geared to clients for the Indonesian market where the majority of the population is Muslim On the other side, Shopee developed

numerous campaigns using celebrities as brand ambassadors in markets like Vietnam and Thailand where celebrities have a significant impact on consumers’ purchasing decisions Why Shopee was able to customize its goods and draw potential clients on a national scale can

be explained by having a deep understanding of each market

¢ Heavy promotions and value-added services

Shopee must convey a message that is compelling enough to entice clients who are utilizing rivals’ services or are unaware of online buying because it entered the E-commerce arena late Shopee was able to attract users to test out the system by implementing massive promotions for

both ends: vendors and customers like free delivery, discount coupons, and flash deals all year

long To increase visibility, they also agreed to become brand ambassadors for worldwide superstars like Korean girl group Black Pink and professional football player Cristiano Ronaldo After the trial period, it's critical that users see the benefits of the platform and use it frequently Why does Shopee succeed above its rivals in consistently providing excellent value to customers? In order to improve the buying/selling experience for its users, Shopee realized this and developed a number of value-added services

Shopee Feed: Customized wish lists for customers’ favorite products

Shopee live chat: a built-in chatting feature

Shopee Live: A livestreaming tool that enables direct communication between buyers and sellers

Shopee Mall: An exclusive marketplace for top merchants and official brands

Shopee University: Offers lessons and courses to help vendors increase their sales

For an E-commerce firm that is four years old, Shopee is doing well on its own New tactics and campaigns are being developed to compete with regional and global rivalry as the Southeast Asian market continues to expand

Chapter 2: Company profile

HUCA PLASTIC

2.1 Introduction

HUCA is a household products company founded in 2002 in Vietnam The brand is registered on the global market with 4-sided locking sealing, which was considered a leap forward at the time to replace other plastic containers with lids Because of these products, HUCA has gained more than 60% of the Korean market and has grown into a food container manufacturing company with a 2013 revenue of 160 million US dollars Our company assists distributors in locating sourcing from direct units, manufacturing, and supplying products at a consistent price In addition, we offer other products such as

an electric grill and an electric hot pot With the goal of always putting people and the environment first in our development efforts As a result, HUCA's top priority is always

to prioritize the health, safety, and convenience of its customers In that spirit, all products are designed and manufactured

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2.2 Company Structure

¢ Overseas ¢ Beijing Sales

¢ Logistics ¢ Shenzhen

¢ Suzhou Sales branch

¢ Shandong Sales branch

s Manshan Plant

s Shzhou Plant

Vietnam

¢ Ha Noi Sales branch

s Ho Chi Minh Sales branch

¢ Dong Nai Plant

e VungTau Plant

Oversea Offices

¢ Germany Sales branch

s Indonesia Sales branch

s Thailand Sales branch

¢ USA Sales branch

2.3 SWOT analysis

Strength

Powerful brand image

High market share

Patents

Know-how

R&D

Opportunities

Big market (ex China, US)

Global brand awareness

Various airtight products

Modern life style

2.4 Business Process

* Define organization needds and strategic goals

* Assess existing procedural documents and supportive information systems

* Analyze gaps and define plan of approach

Assessment * Define high-level future state

* Redesign process flows

* Draft new procedural and supportive documents

* Test new processes

* Develop training materials

* Communication plan

* Provide training

* Support approval of quality documents

* Project and communiication

Implementation

* Maintain training material

* Organize user evaluation meetings

02) | eHelpdesk and operational support

By providing a platform to connect sellers and buyers in the same community With the current trend of shopping on mobile devices, the platform is being improved to help customers have a more enjoyable shopping experience

2.5 Problem of our company in IT

When someone has an idea for a new function to be performed by a computer, how does that idea become reality? If a company wants to implement a new business process and needs new hardware or software to support it, how do they go about making it happen? In this chapter, we will discuss the different methods of taking those ideas and bringing them to reality, a process known as information systems development

software is created via programming Programming is the process of creating a set of logical instructions for a digital device to follow using a programming language The process of programming is sometimes called “coding” because the syntax of a programming language is not in a form that everyone can understand — it is in “code.”

The process of developing good software is usually not as simple as sitting down and writing some code True, sometimes a programmer can quickly write a short program to solve a need But most of the time, the creation of software is a resource-intensive

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process that involves several different groups of people in an organization In the following sections, we are going to review several different methodologies for software development

Assume that the biggest problem we are having is the lack of supplies and communication from our current suppliers and possibly our new suppliers; as we are rapidly expanding and we have made a good reputation for our brand, demands have skyrocketed and we need more capable suppliers and reduce manual processes to catch

up with it as soon as possible

Chapter 3: Plan Information System

3.1 Step 1: Define outcome

How will a better information system benefit us? Whatever our scope and objectives

is, new information systems are an outgrowth of a process of organizational problem solving A new information system is built as a solution to some type of problem or set of problems the organization perceives it is facing The problem may be one in which managers and employees realize that the organization is not performing as well as expected, or it may come from the realization that the organization should take advantage

of new opportunities to perform more successfully

The activities that go into producing an information system solution to an organizational problem or opportunity are called systems development Systems development is a structured kind of problem solving with distinct activities These activities consist of systems analysis, systems design, programming, testing, conversion, and production and maintenance

Figure 1 illustrates the systems development process The systems development activities depicted here usually take place in sequential order But some of the activities may need to be repeated or some may take place simultaneously, depending on the approach to system building that is being employed

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Figure 1 The systems development process

How should we define the scope? Preliminary Analysis In this phase, we create questions, ideas that are both hypothetical and rational in nature and use that as a basis for finding ways to actually solve problems Is creating a solution possible? What alternatives exist? What is currently being done about it? Is this project a good fit for our organization? A key part of this step is a feasibility analysis, which includes an analysis

of the technical feasibility (is it possible to create this?), the economic feasibility (can we afford to do this?), and the legal feasibility (are we allowed to do this?) No programming

is done in this step Instead, procedures are documented, key players are interviewed, and data requirements are developed in order to get an overall picture of exactly what the system is supposed to do The result of this phase is a system-requirements document This step is important in determining if the project should even get started

How can we measure success? Testing In the testing phase, the software program developed in the previous phase 1s put through a series of structured tests The first is a unit test, which tests individual parts of the code for errors or bugs Next is a system test, where the different components of the system are tested to ensure that they work together properly Finally, the user-acceptance test allows those that will be using the software to test the system to ensure that it meets their standards Any bugs, errors, or problems found during testing are addressed and then tested again

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Testing answers the question, “Will the system produce the desired results under known conditions?”, the amount of time needed to answer this question has been traditionally underrated in systems project planning Test data must be carefully prepared, results reviewed, and corrections made in the system In some instances, parts of the system may have to be redesigned The risks resulting from glossing over this step are enormous

Test

Strategy

Component Test Plan

Figure 2 Testing activities

Figure 3 shows an example of a test plan The general conditions being tested are the software’s functionality, security and usability The documentation consists of a series of test-plan screens maintained on a database (perhaps a PC database) that is ideally suited

to this kind of application

Test Case Type

rules are working

Ensure all links are

working properly

Test Step

Input up to 20 characters

Create a new password in accordance with rules

Have users click

on various links

on the page

Expected Result Status

All 20 characters in the Pass or Fail request should be

Figure 3 Example of a test plan for the software's functionality, security and usability

Figure 4 is the model that we will be using to measure success

They discovered that better user contentment increases use, but that there is insufficient empirical data to determine whether mcreased use will also mcrease user pleasure

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Importantly, the literature evaluation also demonstrates that larger net benefits are associated with higher levels of system use and user satisfaction

Although a qualitative literature analysis is open to the authors' interpretation, the conclusions of this review's overall assessments of IS success measurement are both compatible with and superior to those reached by earlier quantitative methodologies

IS system: Our company now needs an Information System to support us in ordering products from suppliers for exporting, preferably a “Vendor management system” Simply put, it’s the process of managing third-party vendors This usually starts with the vetting process, which includes signing contracts and NDAs, drug testing, the acquisition process, collaboration and communication during the delivery cycle of services and goods, submission and approval of timecards and ends with the payment process It helps businesses coordinate and communicate with their vendors, ensuring transparency in vendor-business relationships Vendor management is a useful and cost-effective method

to integrate vendors’ needs with those of the business Companies of all sizes need vendor management programs to maximize the benefits of outsourcing With the nght plan in place, organizations increase the value of vendor relationships, mitigate potential risks, and create long-lasting, positive organizational change

The information system design we need is like a blueprint of a building or house, it consists of all the specifications that give the system its form and structure In our case, it should address all of the managerial, organizational, and technological components of the system solution First of all, we need to embed a supplier portal and e-procurement systems in our processes Figure 4,5 and 6 are examples of a supplier portal design outline using an empirical snapshot

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Categor Categor Category say sey Procurement Procurement Procurement Leader (Raw Leader Leader M M

(Components & (Indirect anager ae al eke

¬ ; Territory buyers Territory buyers

ber amy Hua Category Managers eee TH HN

Supply Planning Supply Planning Coordinators Coordinators

Figure 5 Designing a supplier portal to automate and standardize

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General approach to a supplier portal:

Supplier portal design

Our company’s objectives for the portal iain eae

E-procurement Company objectives for

supplier portals

Functionalities of existing supplier portals functionalities and

applications

Supplier lifecycle management

Supplier portal: functions, CSF and risks according to

challenges and CSF companies

Figure 6 General approach New vendors sign-in:

auctioning

Table 1 E-procurement applications categorized

*An empirical snapshot* is captured by conducting internal and external interviews with procurement employees of companies, as well as analyzing online information Through the snapshot, insights are provided into the companies’ objectives and functionalities of their supplier portals, as well as the accompanying risks and critical success factors for successful implementation Through analyzing the correlations between objectives and combined company functionalities, a framework is proposed The framework suggests whenever having specific objectives for a supplier portal, certain accompanying functionalities should be selected

To automate and standardize work methods, information was gathered through research regarding the functionalities that a supplier portal can possibly include by performing interviews with other companies and getting insights about their supplier portals The goal is to gather information regarding the objectives companies had for implementing a supplier portal, the functionalities, critical success factors for implementation and risks that occur with using a supplier portal

Through these interviews, several small problems are identified, which all have the same core problem: a high degree of decentralized information and communication, together with unstandardized and manual processes Therefore, improvement potential 1s identified, which could be seized by implementing a supplier portal, so that information could be centralized, and work methods could be automated and standardized

In order to determine which method or combination of methods suits this research best, it

is necessary to first look at the type of information that is required to be taken in the empirical snapshot For this, we required information about the following categories: a) Objectives companies have for designing and implementing a supplier portal b) Functionalities included in the supplier portal

c) Critical success factors for implementation

d) Risks and benefits of having a supplier portal

e) Communication to the supplier: how does a company profile itself towards a supplier

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Common features of a Vendor Management system:

a — Audit Trail: Businesses can track all communications and maintain login activity books

b) Data Management: Create and manage a centralized data repository

Cc ` Payments: Businesses can make and receive payments

d) Portals: VMS provides vendors with a portal to manage data sets

e ` Analytics: Businesses can use analytics to track performance in areas like SLAs, supply contracts and KPIs

Benefits of implementing the Vendor Management system:

According to Richard B.Renckly’s “Human Resources”, using a vendor management system can reduce internal and labor costs by 20-30% VMS can streamline businesses by saving time, handling details and increasing productivity Here are some advantages to integrating these solutions:

a) Approval Process: Vendor management systems ensure transparent and

streamlined requisition and approval processes Users can maintain a paper trail and track them during audits

b) Manages Vendors: Reduce hiring and management timetables and provide deep insight into contingent, vendor and supplier workforce performance

c) Standardization of Processes: Centralizes and standardizes payment options, contracts, invoicing and billing rates Users can also file resumes, certifications, forms and IDs It provides dashboards to contractors to facilitate communication Security: Usage of a VMS enhances security and assures compliance, mitigating risk

3.2 Step 2: Form the team

What jobs will each member of our team work for this project? The task of a team is

to accomplish targets Therefore, identifying targets becomes the first step in putting together a team When the goal is set, only then can we actually go ahead and define the kind of task and team specific skill sets we need from the individuals First, we will Identify a pool of skills and individuals to choose from that best suit our project targets

We will take a deep look at the individual’s skills at this point and assess how they fare in

a team environment Both these factors are essential for the success of a team and go a long way in making it highly effective:

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a Communication skills: Effective communication skills are an absolute essential

on the list of potential team candidates They must have the requisite skills to communicate with a variety of audiences within and outside the team and be able

b Principles of project management: While no one can be expert at everything, basic knowledge of project management is essential for a strong foundation in

c Organized: Again, extreme dependence on organized workspace and project are not required, but good amount of healthy organization skills are must-haves for team members It helps alleviate stress and enables individuals to tap into highly

d Reading people: People with mnate leadership qualities are the best assets for a team They know how to read people and motivate other team members while being highly efficient themselves They possess the ability to create and share a vision of success with all stakeholders and have the coolest demeanor even under

e Accurately estimating tasks and deadlines: A project manager invariably relies

on his team to provide him with estimates related to tasks and deadlines These have to be highly accurate as a lot depends on these estimations One wrong estimate can delay a crucial task that can throw an entire project into disarray

f Confident: Every potential candidate for our project team must be confident enough to remain polite-but-firm in their stand when facing opposition They must exhibit the ability to clearly convey themselves and act in the best interest of the team in face of any delays and roadblocks

In this case, we have made an initial table of the team:

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analyze & evaluate

business procedures High Time constraints

Indentify problems &

Specify solutions SPEER