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Question Present the application of information technology in the company where you are working for Analize the advantages and disadvantages when applying of information technology in building the MIS in your company Answer 1.1 Summary of my company: 1.1.1 Ben Thanh Corporation: I am currently working for Ben Thanh Corporation - Limited (Benthanh Group, hereinafter called BTG), whose website is www.benthanhgroup.com BTG, was established in 1997, is now 100% state-owned by the People's Committee of Ho Chi Minh city In 2003, BTG activities are held under the parent and subsidiary model, in which BTG is the parent company that manages the business activities directly and invests in subsidiaries - joint ventures (hereinafter referred as the other businesses or businesses of the BTG system) 1.1.2 The management and administration mechanism: BTG executive management includes Board members, Supervisors, General Manager, Deputy General Managers and 07 assisting departments: Finance - Planning, Accounting, Internal Control, Communication-Brand, Investment, Administration, and Human Resources In order to control BTG capital investment in other businesses, BTG has elected 77 capital representatives Those representatives participate in the management board of other businesses, and hold the positions of Chairman of the Board, General Director, and Deputy General Manager to manage and run these businesses so as to make them operate according to the business strategy that BTG has proposed 1.1.3 Business: As for direct operating function, BTG invests and links with many partners to implement many real estate projects The choisen partners are required to ensure the financial and real estate project management capacity 2 Regarding financial investments in other businesses, BTG is currently investing capital in 31 businesses that operate in the fields of trade, tourism, real estate and industrial production These companies operate in Ho Chi Minh City and the big cities in Vietnam 1.2 The application of information technology in my company: According to levels of the information system, BTG has developed the IT system as follows: - The system that supports business handling process: includes softwares for professional use to handle the information for the professional work of each department (eg, accounting software, HR management software, word processing software ) Because these softwares are written individually so there is no connection between these softwares - The system that supports business decision is connected with above-mentioned softwares The managers of the relevant departments use them by collecting input data, analyze and evaluate output data to report to BTG senior management Board to help them make business decision - BTG business is to invest in other businesses So the decision of the BTG leadership about the business strategy depends on the report and recommendation of other business leaders Currently, the reporting is made through documents to ensure the required legal procedures and internal storage Therefore, the construction of the strategy supporting system to help senior leaders of BTG make strategic plans and improve the competitiveness has not been set Furthermore, one of the requirements of the BTG’s business strategy is that businesses have to give priority to each otherr in investment cooperation and consume the mutual goods and services So BTG has made the connections among businesses by setting internal information systems for products, goods and services to cater the demand for investment through taking advantages of each other's resources and internal consumtion demand The websites of BTG’s businesses are set to under e-commerce to directly give information about goods, services and online trading to consumers 1.3 Advantages and disadvantages of applying information technology to build MIS in my company: The application of information technology to build MIS at BTG is not much and we can see the strong and weak points of this practice as follows: 1.3.1 Advantages: - Employees of the departments not to have to use too much paper in their daily work; - The handling of information through the phases is faster, contributing to support the leadership in making decision faster, and helping BTG and other businesses in competition - Awareness of the staff is higher through the attempt to use information technology applications to cater their activities - The businesses of BTG can avoid wasting its resources in investment and wasted costs when using outside goods and services - The trade with the consumers is made faster by online trading 1.3.2 Disadvantages: - Money invested in hardware, software and maintenance, and system upgrade - Cost of hiring consultants to survey the operating procedures of the departments to design appropriate softwares - Costs of training staff to use the software - The wasted money cannot be measured because information systems are not built through the way of using common software Question Do you think that the application of information technology (particular in building MIS or more) will create a competitive advantage for the company? Why? Give examples to explain the cases which you have experienced Answer 2.1 Agree with the opinion : I fully agree with the view that the application of information technology (namely building MIS or more) will create a competitive advantage for the company Because when the company has identified a strategy for its business, the company must build suitable branching strategies to serve the implementation of that business strategy And in the branching strategy, the application of information technology is an indispensable part in the context of fierce competition and the information explosion in the current period Indeed, the existence and sustainable development of enterprises need to have factors such as people, money, materials, engineering and technology, science and administration art All factors mentioned above are really considered to be used effectively as they help business to improve competitive capacity in the context of global integration and the current complex business environment, in which the application of information technology (IT) in business management not only contributes to improving the competitiveness, but also changes the way of competition Because when having suitable strategy to apply information technology and building appropriate MIS, the company will quickly discover the advantages, disadvantages during their operations, thereby quickly overcomes the weaknesses and exploits its advantages using to run the business and compete better Therefore, it is an indisputable matter because when a business determines the business strategy, they have to think of applying information technology Because information technology is so important that it can influence business strategy considerably 2.2 Example: Because BTG mostly runs the business by investing finance in other businesses, BTG’s competitive strategy focus on growth strategy, namely expanding investment market to provinces, big cities throughout the country, especially in the field of real estate A typical example should be mentioned here is that in the BTG’s real estate business, BTG invests in real estate in other cities because the land is easily granted by the local because local authorities want to attract investment Although BTG has the very good grounds in the center of Ho Chi Minh city, BTG cannot take advantage of this benefit due to the narrow area So BTG leadership has decided to sell these grounds to get the money to invest in the projects in the provinces If this strategy is implemented it will reduce the competitive advantage of BTG in the field of real estate in the city of Ho Chi Minh, especially the trademark of BTG will be less wellknown because BTG doesn’t have any high-rise buildings in the city center But in the reviewing process to sell the above-mentioned grounds, through the internal communication system on their grounds connected between BTG and businesses in the system, BTG discovered that there are grounds (of individuals) adjacent to the grounds of the BTG so BTG can perform the following tasks: - Suggest individuals to exchange for the ground in another loacation 5 - Suggest them to cooperate with BTG by providing the adjacent land to build buildings and their contribution is counted in the capital; they are divided interest like a shareholder By changing or cooperation, many grounds of BTG have become wider and BTG has built on their own or cooperate with foreign investors to build more high-rise construction projects in the city of Ho Chi Minh This makes BTG brand in the real estate sector stronger The above experience clearly shows that the application of information technology has created the competitive advantage for BTG Question Suppose that you have authorized in the building of the MIS project at your company, present the steps, the needed resources and stakeholders that you will have gathered in the project Answer The implementation of the MIS project at BTG are conducted through 06 steps, including preparing the necessary resources and stakeholders to gather the following: Step Identify requirements / issues: The parties involved in this step is BTG’s leaders and the analyst must work together to exchange ideas about the project, and the resources needed to prepare for this step is the stakeholders having to use systems thinking to identify requirements / issues This process ensures the implementation of the methodology, thereby ensuring the 02 criteria / key objective of the project is the quality (to meet the needs of the user) and administrator (in the range time and costs permit) Step Feasibility study: At this step, the role of the analyst is primarily The analyst will develop the discussed ideas (with BTG’s leaders) in step to select the feasible solutions for the project, including the comprehensive review of operational, economic technical, human, and law feasibility The resources needed to prepare for this step is the finance, human and technology This step is very important because the suitable solutions help to make the next steps At the end of this step, the analyst must provide to BTG a feasibility study report Step Systems analysis: The parties involved in this step are the analyst working with the departments of BTG This is the step requiring a lot of time because the system analysis must be compatible with the chosen solutions and the analyst must study carefully in the information needs of BTG’s departments The analyst identifies the functional requirements that will be used as the basis for the design of new information systems The analysis is performed on the following aspects: - Analysis of the concept: parties can understand each other and agree on the concept of the business processes to the favorable of the system design - Analysis of logic: to build a logical model for the present system, under which outlines what the system is currently implemented - Analysis of the functional requirements: to determine the information needs of each specific operation This analysis answers the question "what the system must through the kind of demand functions (including user interfaces, processing, storage and control) to meet the information needs of users" The required resources are the documents of business processes that BTG’s departments must provide to the analysts Step System design: The parties involved in this step are the designer who works with the members of the departments of BTG One of the working requirements is step by step designing must have the consent of the users because they must see the products This step will adjust the design logic model of the old system to get the outline for the new system, which made the physical design to ensure the system can achieve the desired logic design The required resources are the protopytes (the available tools so the designers can present for BTG’s divisions) Step Deploying the system: The parties involved in this step are the expert consultant and the entire staff of BTG (the end user) The expert will train users, guide to data migration, inspect and fix software, test the website performance, test new hardware and review the prototype, the interface and make reports Resources are gathered in this step is the hardware device, software, documents compiled consultant for training to end users in data conversion and system testing Step Maintenance system: As the final step in the construction project MIS for BTG Stakeholders are expert consultants, heads of department and the entire staff of BTG At this step, the staff of BTG make the periodic reports on the operation of the system, and the department heads consider the system if meets the business objectives (ie to ensure quality criteria) Through the reflection of the department heads, the expert perform system maintenance (bug fixes and program design, adds new functions to adapt to the changing environment / operations, improves, and forecasts to reduce the risk of errors) Question Present the function and duties of a CIO (Chief Information Officer) in an enterprise Answer CIO in an enterprise has roles that also functions as a leader, a source of information, an IT market analyst, a business strategist and a technologist with the following specific tasks: - A leader: the tasks are information resource management, information sharing, and supplier management, negotiating contracts for businesses - A source of information: the tasks are gathering and distributing information; looking for new development projects, tracking competitors, providing valuable information for strategic planning, development plan and business processes - An IT market analyst: helping CEO to understand the new technologies that can be applied to business - A business strategist: building IT development plan in line with the development strategy of the business, identifing and exploiting new opportunities, facing and addressing new challenges - A technologist: updating the progress of information technology school to study business applications of the progress of information technology and applying for business Question What you know about ERP? Outline a plan to build ERP for your company as a manager and determine the company’s IT strategy Answer5 5.1 Overview of ERP: ERP is across-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company For example, ERP software for a manufacturing company will typically process the data form and track the status of sales, inventory, shipping, and invoicing, as well as forecast raw material and human resource requirements ERP is the technological backbone of e-business ERP gives a company an integrated realtime view of its core business processes, such as production, order processing, and inventory management, tied together by the ERP application software and a common database maintained by a database management system ERP systems track business resources (such as cash, raw materials, and production capacity), and the status of commitments made by the business (such as customer orders, purchase orders, and employee payroll) ERP software suites typically consist of integrated modules of manufacturing, distribution, sales, accounting, and human resource applications Examples of manufacturing processes supported are material requirements planning, production planning, and capacity planning Some of the sales and marketing processes supported by ERP are sales analysis, sales planning, and pricing analysis, while typical distribution applications include order management, purchasing, and logistics planning ERP systems support many vital human resource processes, from personnel requirements planning to salary and benefits administration, and accomplish most requires financial recordkeeping and managerial accounting applications Figure The major application components of an ERP system The major application components of ERP show the cross-functional approach method of ERP systems as follows: - Customer relationship management (CRM); - Supply chain management (SCM); - Partner relationship management (PRM); - Knowledge management (KM) 5.2 Outlining a plan to build ERP for BTG: 5.2.1 Determining the IT strategy for BTG: Through the answer in Question 1, BTG has a network of subsidiaries and jointventure companies operating in variuos field in many domestic locations, we can see that BTG has adopted strategy to apply information technology in the direction of serving for the specific competitive strategy that is growth strategy Accordingly, BTG uses information technology to control the operations of the whole system to keep the market operation stable while expanding the management capacity to meet the expanding requirement of BTG’s investment 5.2.2 Funding: BTG will select the contractor that is a capable consulting company through procurement methods, thus ERP project cost will be specified when a formal contract is signed between parties On the basis of the cost estimates at the market price and the contractor’s consultant of items interpreted in the table below, BTG will try to ensure the compliance with the financial ratio as requirements that have been calculated and reasonably statistic as follows: - The equipment cost ratio between hardware and software is 30% for hardware and 70% for software - The cost ratio for implementation one new ERP project is 12% for hardware, 15% for software, 15% for training and change management, 15% for data conversion and 43% for reengineering 10 Figure Typical costs of implementing a new ERP system Phase No Cost interpretation Unit 1 3 Network infrastructure devices, hardware devices ERP application software Training and change management Conversion and systematical data input Consulting, exploiting and training Cost for operation and maintenance Other expenses Total VND VND VND VND VND VND VND VND 5.2.3 Timing: ERP project at BTG will be conducted as the approach method with 04 phases according to RUP (Rational Process Unit) as follows: - Phase 1: Modeling operations - Phase 2: Identifying requirements - Phase 3: Analyzing and designing - Phase 4: Implementing 11 The implementation of above-mentioned phases will be combined in 06 steps as follows: - Step 1: Identifying requirements/issues of BTG - Step 2: Conducting a feasibility study - Step 3: Analyzing the system - Step 4: Designing the system - Step 5: Implementing the system - Step 6: Maintaining The requirement on time for all the above-mentioned steps is 12 months from the time when the contractor starts implementing the step until handing over the system, which can estimate a further extension of 03 months due to the objective or subjective factors 5.2.4 Identifying of stakeholders: The stakeholders in the development of ERP system in BTG are determined as follows: - The project requester (BTG’s leaders) - Users (BTG’s staff) - The contractor is the consulting company in providing the information technology solutions and performing the consultancy The consultancy is assigned to the analysts, designers, programmers who are employees of this company 5.2.5 Outlining of the stakeholders’ works: a) The contractor’s works: The contractor is required to study documents, survey the current state of operation and information technology and set up the solutions to deploy ERP software and hardware to be compatible with the software, consult and train the users about the software, install, commission and maintain the entire system in PVGAS so that the system can meet the missions and goals set out in the contract, including the following main tasks: 12 a.1) Building ERP system: No Tasks Requirements analysis Designing and building systems Converting data from the old system to the new system, enter new data into the system Commissioning and transferring system Training Transferred result Documents to analyze requirements System design documents (documents about the parameters establishing the application system) Guidance of data conversion/data entry - Minutes of testing and acceptance - System ready for commissioning User guide - Users are trained and can use the software - Handing over related hardware, documents and technical instructions - Handing over the copyright certification of the application system System handing over - Handing over the documents to analyze professional processes, documents including: requirements user guide,s and ystem management documents, system design documents - The system was installed and put into use officially - Having commitment of at least 24 month warranty Warranty support from the date of putting into official use - Having the reasonable technical assistance process to ensure the remedy of the issues promptly a.2) Supplying or consulting to buy devices, software and installation, configuration: - The contractor supplies or consults BTG to buy devices, materials and systematical software to ensure the equipment in accordance with the list and requirements given in the bidding stage and meet the requirements as outlined in the scope of this work - Installation and connection of hardware devices comply with the technical design 13 - Installation of operating system, application software for servers, building configuration to other devices b) Outlining of BTG’s works: b.1) The project requester (BTG’s leaders): - Budgeting appropriately, building the specific progress, selecting the qualified contractor to ensure the project implementation process, ensure the success of the project in quality, cost and time - Building the employees’ trust in the necessity of implementing ERP project to create the consensus and true collaboration in each professional stage, at the same time, to manage the change well in the project implementation process - Arranging time and skilled personnel in each stage of the process to exchange with contractor during the project implementation steps - Arranging the working place for the contrctor’s employee and the training place for users with sufficient relevant equipment needed - Providing the relevant documentation to the contractor - Monitoring, accepting and receiving the system hand-over from the contractor - Establishing infrastructure and technical environment for the deployment process, ensuring the application systems installed, centralized and deployed in many locations to operate smoothly, stably and suitably with the implementation progress of project - Implementing the ERP system evaluation after deployment (to assess the efficiency) b.2) Users (BTG’s staff): - On the basis of the professional processes being implemented, they need to coordinate effectively with the contractor in each project implementation step such as identification of requirements and exchange of ideas, systems analysis , and proactively propose the requirements and specific measures to create favorable conditions for the contractor in the system design in accordance with the requirements set out - Being willing to adapt to the changes in the project deployment not only for the effectiveness of BTG but also for their personal advantages - Reporting promptly to the competent authorities on arising issues which may slow the progress or reduce the quality of the project 14 - Report regulary on the operation of the system to the department heads to consider the system meets the business objectives (ie to ensure quality criteria) _ REFERENCES: Management Information Sytem Course, Dr Ho Bao Quoc Management Information Systems, Tenth Edition – James A Obrien and George M Marakas – McGraw Hill Irwin  ... leaders Currently, the reporting is made through documents to ensure the required legal procedures and internal storage Therefore, the construction of the strategy supporting system to help senior... information sharing, and supplier management, negotiating contracts for businesses - A source of information: the tasks are gathering and distributing information; looking for new development projects,... development strategy of the business, identifing and exploiting new opportunities, facing and addressing new challenges - A technologist: updating the progress of information technology school to