Management Information System Study

Expographic (Pvt.) Limited

Group Assignment – IT3001

B.Sc. in Science Degree Programme
Faculty of Science
University of Colombo
 Table of Contents

1.0 PREFACE .................................................................................................................................................... 4

2.0 INTRODUCTION ....................................................................................................................................... 5
2.1 PURPOSE OF THE DOCUMENT ............................................................................................................ 5
2.2 PROJECT SCOPE AND PERSPECTIVE ................................................................................................ 5
2.3 GROUP INFORMATION .......................................................................................................................... 6
2.4 ACRONYMS AND ABBREVIATIONS USED IN THIS DOCUMENT ............................................... 7
3.0 ABOUT THE COMPANY.......................................................................................................................... 8
3.1 OVERVIEW ................................................................................................................................................ 8
3.2 ORGANIZATIONAL HIERARCHY........................................................................................................ 9
4.0 FUNCTIONALITIES OF THE EXISTING SYSTEM .......................................................................... 10
4.1 ORDERING AND ADDITION OF A NEW BOOK TO THE PORTFOLIO ..................................... 10
4.2 PERFORMING A TRANSACTION ....................................................................................................... 11
4.3 REORDERING PROCESS ...................................................................................................................... 11
4.4 BACKUP PROCEDURE .......................................................................................................................... 11
5.0 IT INFRASTRUCTURE........................................................................................................................... 12
5.1 BASIC ARCHITECTURAL DESIGN .................................................................................................... 12
5.2 OVERVIEW .............................................................................................................................................. 13
5.3 CONFIGURATION OF SERVER COMPUTER ................................................................................... 13
5.4 CONFIGURATION OF TERMINAL ..................................................................................................... 13
5.5 COST OF OWNERSHIP – FOR EXISISTING SYSTEM .................................................................... 13
5.6 PROPOSED NEW SYSTEM .................................................................................................................... 14
5.7 COST OF OWNERSHIP – FOR PROPOSED SYSTEM ...................................................................... 14
5.8 IMPROVEMENTS AND SUGGESTIONS RELATED TO IT INFRASTRUCTURE……………...17
6.0 SUGGESTIONS AND IMPROVEMENTS ............................................................................................ 18
6.01 EXPO-REWARD POINTS ....................................................................................................................... 18
6.02 EXPO-REWARD CARD ......................................................................................................................... 18
6.03 ISSUE OF THE EXPO-REWARD CARD ............................................................................................. 19
6.04 USE OF EXPO-REWARD CARD .......................................................................................................... 19
6.05 ONLINE EXPO-REWARD SYSTEM ..................................................................................................... 20
6.06 DESIGN SPECIFICATION FOR THE PROPOSED CUSTOMER LOYALTY
PROGRAMME/CRM……………………………………………………………………………………………...21
6.07 CASHIER USE CASE ............................................................................................................................... 21
6.08 CUSTOMER USE CASE .......................................................................................................................... 22
6.09 MANAGER USE CASE ........................................................................................................................... 23

MIS Study for Expographic (Pvt.) Limited 2

6.10 CHANGES FOR EXISTING SYSTEM AND NEW ADDITIONS .................................................... 24
6.11 AMENDMENTS TO EXISTING WINDOWS BASED MIS .............................................................. 25
6.12 CUSTOMER LOYALTY MONITORING SYSTEM ......................................................................... 26
6.13 AMENDMENTS TO EXISTING “GENERATE INVOICE” FORM ............................................... 27
6.14 CHANGES FOR EXISTING SYSTEM AND NEW ADDITIONS .................................................... 29
6.15 ADVANTAGE AND DISADVANTAGE OF IMPLEMENTING CUSTOMER LOYALTY
PRORAMME ……………………………………………………………………………………………………30

6.16 IMPLEMENTATION SUGGESTIONS ………………………………………………………………34

6.17 SUPPLY MANAGEMENT SYSTEM WEAKNESS AND SUGGESTIONS ………………………35

6.18 ENTERPRISE APPLICATION ……………………………………………………………………….36

6.17 INFORMATION SYSTEM THAT SPAN THE ENTERPRISE …………………………………….36

6.18 SUPPLY MANAGEMENT SYSTEM …………………………………………………………………38

6.19 ADVANTAGE OF SUPPLY MANAGEMENT SYSTEM………………………………………… 39

7.0 CONCLUSION .......................................................................................................................................... 40

MIS Study for Expographic (Pvt.) Limited 3

 1.0 Preface
1.1 Document Title : Management Information System Study for
Expographic(Pvt) Limited.

1.2 System Type : Hardware integrated desktop system and

web application

1.3 Current Version : 1.0 (initial version without any subsequent

modifications)

1.4 Readership of This

Document : Company Top Level Management
Operational Staff
System Developers
System Testers
Site Administrators
Project Instructors / Mentors
Group Members

1.5 Prepared For : Partial completion of the B.Sc. in Science

(General Degree) programme.

1.6 Submission Date : 26/08/2009

MIS Study for Expographic (Pvt.) Limited 4

 2.0 Introduction
2.1 Purpose of the document

- To study the Business Processes, Information Flows and IT

Infrastructure of the organization.

- To identify weaknesses of the current system and suggest

improvements for optimal performance.

- To understand the scope and functionality of the

management information system of the company.

2.2 Project Scope and Perspective

This Management Information System Study for Expographic (Pvt)

limited was carried out by a group of 11 undergraduate students of
University of Colombo as a part of their degree course. The students
involved in this project were allocated different tasks based on their skill
level and they all participated in numerous ways throughout the duration
of the project.

The major purpose of this project is to identify how information

technology concepts are applied in general day-to-day
management activities of an organization and how the use of
current technology have contributed in increasing the productivity
and decision making process of the company.

In addition to that, the weakness and faults of the existing system were
also identified and several suggestions were made to improve the
system for optimal performance.

MIS Study for Expographic (Pvt.) Limited 5

 2.3 Group Information

The details of the students who took part in this project are provided
below.

Name Registration No. Index No.

M.M.M.S. Kumara 2006/s/10240 8650

G.D.M. Madushantha 2006/s/10099 8690
I.M.B.P. Ilankoon 2006/s/10064 8775
M.K.T. Sampath 2006/s/10152 8706
P.K.M.D. Indrasena 2006/s/10067 8832
G.C. Priyadarshani 2006/s/9852 8444
W.G.H.N. Karunanayaka 2005/s/9630 8209
S.M.D.T. Samarakoon 2006/s/10146 8850
D.I. Jayalath 2004/s/9242 8003
S. Ratnappuli 2006/s/9857 8448
A.D.S.K. Indrajith 2006/s/10065 8736

Group Leader : M.M.M.S Kumara

The University of Colombo reserves all rights of this publication. No part of

this publication may be stored in a retrieval system, transmitted or
reproduced in any way including but not limited to photocopy,
photograph, scan, magnetic, optical or other form of record without prior
agreement and written permission of University of Colombo.

MIS Study for Expographic (Pvt.) Limited 6

 2.4 Acronyms and Abbreviations Used In This Document

ADSL Asymmetric Digital Subscriber Line

CRM Customer Relationship Management

CRT Cathode Ray Tube

DBMS Database Management System

GB Giga Byte

ISP Internet Service Provider

LCD Liquid Crystal Display

PHP Hypertext Preprocessor

kbps kilo bits per second

MAN Metropolitan Area Network

MB Mega Byte

MIS Management Information System

MISS Management Information System Study

RAM Random Access Memory

UPS Uninterruptible power supply

MIS Study for Expographic (Pvt.) Limited 7

 3.0 About the Company

3.1 Overview

“Expographic” seems to establish a confluence of ideas, and certainly

“graphic design” was not far from the original purpose and concept
behind the setting up of this company. It was formed within the modest
confines of the Pettah in the central commercial hub of the capital
Colombo, and was intended to be a printing establishment which would,
in time, acquire a large printing press. This was at the initiative of
Mr.Leelananda Fonseka who started Expographic in the year 1985/86.
The following year, Mr.Fonseka and Mr. Ranjith Samaranayake, who had
been good friends for more than a decade, decided to form a
partnership which was to extend the scope and range of Expographic
from being printer to also encompass aspects of Bookselling and Book
Publishing.

In 1987 with their partnership in place, Mr.Samaranayake suggested to

Mr.Fonseka that they start a bookshop as he was already a book
distributor and a publisher. At the time, Mr Samaranayake had his base
for operations at his paternal home in Polgahawela and was on the look-
out for a distribution point in Colombo to stock his father’s books. Pettah
and “Expographic” looked to be the most promising as it was located in
the commercial hub of Colombo where all the regional traders would
come to, in purchasing their requirements.

In the early years of the ‘90s decade, the company’s policy was altered,
and it was decided that they would henceforth concentrate on academic
books, focusing mainly on engineering computer science and
management and other similar subject matter, and thereby capture a
sizeable portion of this specialist retail market, which appeared to be
very promising.

Book Exhibitions were held in Universities such as Moratuwa, Kelaniya,

Ruhuna, Peradeniya, Sri Jayawardanepura, at the Open University of Sri
Lanka and at the Colombo campus. In 1994 they were invited to open a
shop within the precincts of the University of Moratuwa by its Vice
Chancellor.

Currently Expographic enjoys the highest market share in Engineering,

Computer Science and Management book distributions.

MIS Study for Expographic (Pvt.) Limited 8

 3.2 Organizational Hierarchy

CEO

Director

Manager IT Manager Stores Manager Accountant

Cashier Manager-Training Storekeeper Clerk

Data Entry Graphic Designer Store man

Operator

Salesman

Minor Staff

MIS Study for Expographic (Pvt.) Limited 9

 4.0 Functionalities of the Existing System

The current system is basically an inventory control system and it is

not used in making high-level management decisions for the
organization.

Three major business processes were identified as activities

managed by the system and they are briefly described using flow
diagrams.

4.1 Ordering and Addition of a New Book to the Portfolio

Select Book Select Select Process

Order Mode Quantity Order

Select Define Add

Warehouse Reorder Publisher Receive
levels / Author Book
info

Select Store Send Book Update Retrieve

Room to Stock info Book from
Warehouse Warehouse

Send Book
to
Showroom

MIS Study for Expographic (Pvt.) Limited 10

 4.2 Performing a Transaction

Terminate
Transaction
Customer Check Yrs
Request Availability
of Book

Select Calculate
Book Discount (if
applicable)

Update Accept Generate

Stock Issue Book Payment Invoice

4.3 Reordering Process

Compare Receive
Check the
With Process New
Number of
Reorder Order Shipment
Books
Levels

4.4 Backup Procedure

Delivery of
Writing of Storage
End Confirmation
Data to Media to
Transactions of Data Input
Storage Media Warehouse

MIS Study for Expographic (Pvt.) Limited 11

 5.0 IT Infrastructure

5.1 Basic Architectural Design

Pettah Branch

Battaramulla Branch

MIS Study for Expographic (Pvt.) Limited 12

 5.2 Overview

The expo-graphic (pvt) Ltd is one of the leading book sellers in island. Currently
there are 3 branches and warehouses situated in Pettah, Battaramulla and
Moratuwa. They have been using 1 server computer and 11 terminals for their IT
process. The main server is situated at pettah branch. The branches are connected
by using the SLT broadband internet connection. They are using routers to network
the computers and connect to the internet.

The IT infrastructure, currently being used by EXPO- GRAPHICS (Pvt.) Ltd is as follows.

Hardware
• 1 sever computer
• 9 terminals
• 2 laptops
• 4 routers with 8 ports each
• 1 hub with 16 ports
• 5 dot matrix printers
• 1 laser printer
• 8 CRT monitors
• 4 LCD monitors
• 1 scanner
• 10 UPS
• 5 barcode readers
• Network Cables (Twisted pair)
• CD ROM

Software
• Windows Server 2003
• Windows XP OS
• MS Office 2003
• Adobe Photo shop CS3
• Adobe Illustrator CS3
• Symantec Anti-Virus(corporate)
• MS SQL Server 2005

5.3 Configuration of Server Computer

• Intel processor with 2.4GHz
• 1GB RAM
• Hard disk with capacity of 160GB
• 15” monitor
• key board & mouse
• CD ROM
• DVD Writer

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 5.4 Configuration of Terminal
• Intel processor with 2.2GHz
• 512MB RAM
• 80GB hard disk
• 15” monitor
• Key board & mouse

5.5 Cost of Ownership – For existing system

Server Computer
Object Cost
Intel Processor 8,500
with 2.4GHz
Motherboard 7,500
160GB Hard 9,850
disk
1GB RAM 7,500
Key board & 1,250
Mouse
15” Monitor 14,500
Total cost 49100

Terminal
Object Cost
Intel Processor 8,500
with 2.2GHz
512MB RAM 5,750
80GB Hard disk 5,550
Motherboard 7,500
Keyboard & 1,250
Mouse
15” Monitor 14,500
Total cost 36450

MIS Study for Expographic (Pvt.) Limited 14

 Object No of Units Cost per Unit Total Cost
Hardware
Server Computer 1 49100 49100
Terminal 9 36450 36450
Laptops 2 90000 180000
Routers 4 12000 48000
Hub 1 15000 15000
dot matrix printers 5 20000 20000
Laser printer 1 13350 13350
Bar code readers 5 32000 160000
Scanner 1 9000 9000
Ups 10 4500 45000
Network Cable 300ft. 23.50 7050
Software
Windows Server 2003 12 110,000 110000
Windows XP OS 12 26,400 250000
MS Office 2003 12 16,400 90000
Adobe Photoshop CS3 4 69,900 279600
Adobe Illustrator CS3 4 37,000 148000
Symantec Anti Virus 12 3,300 28500
MS SQL Server 2005 1 659,900 659900
Total Cost of Ownership 2148950

MIS Study for Expographic (Pvt.) Limited 15

 5.6 Proposed New System

Server Configuration
• Intel core 2 duo processor with 2.53 GHz
• 4GB RAM
• Hard Disk with 500GB
• LCD Monitor (15”)
• DVD Writer

Terminal Configuration
• Intel dual core processors with 2.2GHz
• 2GB RAM
• Hard Disk with 160GB
• LCD Monitor(15”)

5.7 Cost Estimation for Proposed System.

For Server

Intel core 2 duo processor with 2.53GHz 14,250

Mother Board 7200
4GBRAM 6700
Hard Disk 7450
DVD Writer 3550
Key Board & Mouse 1850
LCD Monitor 10400
Total 51400

For One Terminal (x10)

Intel dual core processor with 2.2GHz 7800

Mother Board 7200
2GBRAM 3350
Hard Disk 5850
Keyboard & Mouse 1850
LCD Monitor 10400
Total 36450

MIS Study for Expographic (Pvt.) Limited 16

 5.8 Improvement and suggestions related to IT infrastructure.

Expo-graphics (pvt) ltd has been equipped with a computer system which is installed
sometime ago. But compared to current industry needs it is preferred to do required upgrades in
order to meet consumer satisfaction. After the system was observed and studied, several
deficiencies and problems were identified.

Compared to the current industry needs and in order to be competitive with other parallel
industries and to meet customer requirements, efficiency of operations involved seems to be
increased. This directly interconnected with customer satisfactions and then causes the customers
to be attracted to the service provided subsequently enabling the maintain a good customer
base.

So as to accomplish this scenario, processors’ speed, RAM, hard disk spaces have to be
increased. By upgrading the system, the direct users of the system also can perform pretty faster
and comparatively more potential of the direct users can be made use of.

While the study was underway, it was clear that the storage capacity of computers connected to
the system ought to be increased. So the storage capacity of server computer is suggested to be
upgraded up to 500GB and other computers are suggested to be upgraded up to a significant
level letting no problems to be arisen with regard to the storage capacity in near future.
Although the amount of books in the ware house and the no of transactions done were higher,
with increasing the demand of the database, it can be accomplished much conveniently. In this
system two terminal computers are used to keep back up record thus no expected to be storage
capacity increase is arisen in near future.

After the intensified consideration of several facts, LCD monitors are suggested to be integrated
to the system allowing power consumption to be lesser than in the case of CRT monitors,
subsequently coming much lesser electricity bills. Another impact fact is, it serves much room on
desks or on counters allowing sales persons or cashiers to organize their equipments in a smart
way. On the other hand eye irritation or eye stress and other related effects come due to the
CRT monitors can be reduced by replacing than with LCD monitors.

When the newly proposed system is integrated it is supposed to do the transactions worth
about Rs.415900. But with the new replacement, currently used parts which are going to be
replaced, become vacant. So it suggest to sell them again after the removal thus the amount the
organization have to spend on the upgrading of the system can be deducted.

MIS Study for Expographic (Pvt.) Limited 17

 6.0 Suggestions and Improvements

Customer Loyalty Programme/CRM

“The aim of this program is to encourage loyal buying behavior of our customers by
rewarding and reaching total customer satisfaction in order to achieve
organizational goals and objectives.”

ExpoGraphic Private Limited currently does not have a customer loyalty program. As a
strategy of customer relationship management, this tool is supposed to be integrated into
the existing Management Information System. Being a medium size organization,
considering the possibility of implementation, the model has been designed involving a
least number of business activities as deriving maximum benefits out of it. The scenario
will be as follows.

Expo-Reward Points

Expo-reward points will be the key strategy of this program. A point will basically be a
numerical value given for a particular transaction, and reward points will keep adding
for each transaction made unless the value of the points are realized. Once value of the
reward points are realized, total number of points will come down considering the
realized value. The realized value will be the reward to the customer which has a
monetary value. The impact of the monetary value on customer would be decided by the
management, which could be a discount on a transaction or a gift on exceeding a
particular reward point limit.

Note - The value of points given to mass scale customers like government organizational
bodies and large private organizations who make bulk purchases should be a trade discount.

Expo-Reward Card

Expo-Reward Card is a small plastic/Cardboard card consisting of a barcode and a

card number, possible to carry in a customer wallet. Following image is an example for a
reward card.

MIS Study for Expographic (Pvt.) Limited 18

 Issue of the Expo-Reward Card

A reward card would be issued to a customer once a purchase is made, if he/she

is not already joined with the customer loyalty program or simply unregistered
with the system. Issuing a card is just a matter of entering customer details into
system and placing a tiny card on customer’s hands.
For this purpose a windows form known as “Customer Detail Entry” will be
available in the system which would discuss thoroughly later on.

The salesperson at the counter can simply expose the bar code of a new card to
the bar code reader, which would automatically open up the data entry window
for customer details. Salesperson can then insert relevant data into the system and
issue the card. In case of unavailability of bar code reader, salesperson can
manually open up the data entry widow and feed data along with the card
number as printed on the Expo-Reward Card.

Note - A reward card would not be issued to mass scale customers such as
government organizational bodies and large private organizations, considering
organizational stability and significance. But still, system would account for their
reward points as well, considering purchases they make.

Use of Expo-Reward Card

Presenting a Expo-Reward card during making a payment will add up Expo-

Reward points into customers account. Salesperson will simply expose the bar
code to the reader or manually enter the code number into a textbox in
“Generate Invoice” window. This windows form will be discussed in more details
later on. The points earned for the particular transaction will be printed on the
customers receipt along with the total Expo-Reward Points earned, as well as the
system will also be updated.

MIS Study for Expographic (Pvt.) Limited 19

 Online Expo-Reward System

ExpoGraphic Private Limited currently possesses the benefits of

E-Business facility. Although it keeps track of some customer data through web
site, they are not used for any decision making or to enhance customer
relationship. Therefore it is essential to make some amendments to the existing
system in order to derive maximum benefits for the organization from what they
have invested.

According to the existing system, customer is required to register with the system,
when purchasing goods online. With this registration, customer will be
automatically given a customer ID and an Expo-Reward account will also be
created but without an Expo-Reward ID. For this purpose existing online system is
supposed to be amended and it will be discussing thoroughly later on. If customer
wishes to obtain an Expo-Reward Card, he/she can obtain it from the nearest
ExpoGraphic showroom by presenting NIC or required details.

Once a customer is registered online, the system will analyze the types of books
which he/she interested in. Any news regarding new books, new editions or even
suggestions would be E-mailed to customer. And it is very important if they can
view some pages of the suggested books online.
Likewise, any update of customer’s reward account will also be emailed.

Note - Issue of the Expo-Reward Card by a salesman will only require customer’s
Name, Address and National Identity Card Number. For people who don’t have a
NIC, the card will be issued by considering only Name and Address.
Furthermore, if customer wishes to possess benefits of the online market facilities,
he/she can visit the web site and login to the system using the Expo-Reward Card
Number as the login ID. Since system has kept track of some customer data, he/she
can modify it using the webpage. This will simply allow the customer to enjoy the
benefits of online sales facility. Required amendments to relevant web pages will be
discussing later on.

MIS Study for Expographic (Pvt.) Limited 20

 Design Specification for the Proposed Customer Loyalty Programme/CRM

Cashier Use Case

MIS Study for Expographic (Pvt.) Limited 21

 Customer Use Case

MIS Study for Expographic (Pvt.) Limited 22

 Manager Use Case

MIS Study for Expographic (Pvt.) Limited 23

 Changes for Existing System and New Additions
As mentioned above, in order to implement scenario described, it is essential to make
amendments to existing system and integration of new components. This would include
following activities.

Amendments to the Database

Existing database currently consists of a table which keeps records of

customer details obtained from web site. The structure assumed to be as
follows.

Note 1- Although ExpoGraphic Pvt. Ltd. maintains a complex system of database, no

significant contribution is made on management decision making from these data tables.

Full E- NIC Telephone Mobile Address City Postal U_Name P_word

Name Mail Code

Following columns will be added as amendments for this table.

Customer_ID Earned_Reward_Points Date_Of_Birth Reward_ID Value_per_R_P

So the complete normalized table structure will be as follows.

Customer_Details
Customer Reward Full NIC DOB Address City Postal User Pass
ID ID Name Code Name word

Customer_Contact
Customer ID Telephone Number Mobile Number

Reward_Details
Customer ID Number of reward points per unit price Value per reward point

CustomerID_OrderID
Customer ID Order ID

OrderID_Points
Order ID Reward Points Earned

MIS Study for Expographic (Pvt.) Limited 24

 Note 2 - Here, earned bonus points should be recorded for each and every
transaction. Total bonus points would be calculated by codes in program. The purpose of this
action is to increase the opportunity available for analytical processes carried out by the
system and better support in management decision making.

Note 3 - Customer ID, Name and address fields must not be null in the database while others
can have null values.

Note 4 - In Reward_Details table, it is assumed that different customers can be given

different number of reward points per unit price and can have different values per reward
point they have earned.

Amendments to Existing windows based MIS

Integration of new forms to the system

Customer Detail Entry

A windows form for customer detail entry will added to the system which
will be consisting of following data fields.

Name Of the Description Notes

Form Element
Customer ID A unique identity given to the A read only field
customer by system
Name Customer Name to be added into Mandatory
system
Address Customer address Mandatory
NIC/Passport National identity card or Passport ID Optional
Expo-Reward The Expo-Reward Card number as This text box will automatically be
ID shown in card filled with Reward ID when the bar
code on the card is exposed to reader.
Otherwise salesperson can manually
insert it.
Register Button Registers the customer
Reset Button Clears all data in form
Search Button Searches system database for a
given Name, Address or a Reward
ID and fill other empty fields in the
form. If matching cannot be found in
database, a Message Box will be
appeared.
Update Button Amends a Reward ID In a case of loss of customer’s Expo-
Reward Card salesperson can open up
above form manually, search for
customers details in database and
amend the Reward ID manually and
then update.

MIS Study for Expographic (Pvt.) Limited 25

 Customer Loyalty Monitoring System
This component will only be available to management to monitor the
Customer Loyalty Program. Following management tools and features
would be available in this area in order to support decision making
process and monitor the system.

Ø Ability to view all customer details

Ø Ability to view all card holders and their details
Ø Ability to view all non card holder details along with their personal details
Ø Purchasing frequency of customers
Ø A graph of Number of customers Vs time
Ø A graph of Number of new customers added Vs time
Ø Ability to view all Customers with reward points they have gained.
Ø Amount of monetary value realized for reward points gained by each customer
Ø Total monetary value realized by all customers
Ø Allows to change Monetary value per bonus point earned
Ø Allows to change Number of points per unit sales price
Ø Allows to set different Number of points per unit sales price and Monetary value
per bonus point earned for different customers.
Ø Allows setting a Customer Reward Point level and viewing all customers above or
below that level.
Ø Provides printing facility of all details and graphical representations.

MIS Study for Expographic (Pvt.) Limited 26

 Amendments to Existing “Generate Invoice” Form
Following form is currently available in the system when a salesperson
wants to generate an invoice.

This form will be modified with several text boxes and check boxes.

MIS Study for Expographic (Pvt.) Limited 27

 Name Of the Description Notes
Form Element
Reward ID Expo-Reward Card ID as When the bar code is exposed to reader this
mentioned in customer’s field will automatically be filled. Otherwise
card salesperson should enter it manually.

Customer Customer’s name As large governmental and non-governmental

Name Drop customers are not issued a Expo-Reward Card,
Down Box reward ID will be a null value. All the customer
names with null reward number values will be
loaded into this drop down box. In this situation,
sales person will have to select the particular
customer from the box.
Allow Expo- Checking this box will give Trade discount per reward point will set by the
Reward a trade discount for the management. A specifically designed new form
discounts check transaction based on the will be available for the management with
box total reward points earned relevant privileges.
by the customer.

Additional Notes - Clicking on Save button or Print Invoice Button will

commit data to the database. That is earned points for a particular
transaction will be recorded with the order ID and Customer ID. Whenever a
saved invoice is opened by the salesperson, relevant data would be loaded
back.

In addition to this form, the reward points earned for a transaction and total
points earned including the particular transaction would be printed in customer’s
receipt.
For this purpose a small change should be done to relevant crystal report.

MIS Study for Expographic (Pvt.) Limited 28

 Changes for Existing Online System and New Additions
Integration to Existing Online Management Information System

Integration of a new web page

A web page called “My Expo-Reward Points” will be integrated into

existing system. Once a link in the My Account page is clicked (The link is
discussed in next section.), this page will open up. The page will be
showing total Expo-Reward points customer has earned to the particular
date.

Amendments to existing online MIS

Changes in Online Customer Login Page

A user who has already received an Expo-Reward Card and registered

with the system can login to the web system using Expo-Reward Card
number and a default password provided by the salesperson.

After logging into the system, the customer can modify personal details,
password and save them in to database.

Changes in My Account page

Currently, this is the area given to customer for all the affairs after
logging in to the system. For this page an option called “My
Reward Points” will be added.

MIS Study for Expographic (Pvt.) Limited 29

Advantages and Disadvantages of Implementing Customer Loyalty Programs

Financial Savings

Better Deals: Many loyalty programs do provide savings when it comes to

purchasing products or services. Joining most programs can results in instant and
long-term savings.

Truth Bending: While it’s true that people who subscribe to the loyalty program
do save over those who don’t. This schematic creates a scenario where customers
eventually pay about the same as they would anywhere else.

Customer Benefits through Profiling

Pros: Better Service: loyalty programs can result in more efficient service as the
store keep tracks of the customer’s name, spending habits, preferences and needs.

Cons: Tracking: The negative side to programs that track purchases and shopping
habits is the market profiling that tends to occur. Tracked customers are often on
the receiving end of spam, junk mail or even telemarketing that is tailored to their
taste. Many companies sell personal data and make tremendous profit for doing
so, all without customer knowledge.

Consumer Rewards

Pros: Rewards: Be it discounts or gifts, the list of rewards is endless. There are
frequently chances to win big through reward programs.

Cons: Spending Temptations: Customers are often tempted to spend beyond their
means or, at the very least, to buy more than they need just to build points, gain
credit or take advantage of discounts. The companies adjust prices accordingly so
they actually gain rather than lose. Nothing is ever truly free.

Easy to Sing Up, Difficult to Deal with Confusing Contracts

Pros: Simplicity: Swiping a card with every purchase is easy. Programs allow for
point savings and discounts just for signing up and taking advantage of the deals.
Joining a loyalty program often means no more coupon clipping. The stores make
it as easy as possible for you to spend, spend, and spend some more.

Cons: Confusing Contracts: While many loyalty programs are simple and
straightforward, many have long paragraphs of fine print. Where a customer

MIS Study for Expographic (Pvt.) Limited 30

 might think they have achieved some goal or won a prize, a few sentences in the
contract may nullify or change the end result. Experts encourage customers to
read contracts carefully.

Discount Programs

As is implied by the name, discount programs are programs that offer a specified
percentage off (or a dollar amount for large purchases) of the retail purchase
price. This can be product specific or offered on the total basket of purchases. The
distinction from rebate programs is rather than accrue the benefits; discount
programs typically apply instant benefits to participants at the point of sale.

Pros

- Simple to consumers

- Instant gratification

- Deeper discounts can be used tactically

- Usually easy to administer

Cons

- Discount implies that regular prices are too high

- Difficult to exit the program

- Can be easily duplicated in the marketplace

- Can alienate infrequent shoppers

- Discounts affect margins

Points Programs

To avoid the negative connotations of discounting, many loyalty programs us a

points "currency" to allow participants to keep track of their earned benefits.
Typically, consumers earn additional points by buying goods and services from
the issuing retailer and can include bonus products, bonus thresholds and partner
opportunities

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 Pros

- The basic premise is simple for consumers to understand

- Can be difficult to match because earning and reward thresholds can be

easily adjusted - therefore can offer greater competitive advantage

- Can allow more targeted, flexible and imaginative promotions e.g.

points for special purchases

- Avoids price discounting

- Can use points promotions on brands that do not allow discounting

- Can use to reward employees

- Currency can be resold to vendors to help support the program

- Enable the collection of customer data to put in place targeted

promotions and cross-selling opportunities

- Breakage (The difference between points issued and points redeemed)

Cons

- The proliferation of points programs is confusing for consumers

- The "halo effect" of programs where thousands of points are required to

earn a benefit devalues all points programs

- Depending on the community, loyalty program fatigue can be an issue

- Requires investment in redemption opportunities

- More complex to put together and manage an attractive customer

proposition - requires management of the currency including customer
service

- Need to put a contingency on the balance sheet for outstanding points

- More expensive than cash back

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 Rebate Programs/Cash Back

Although similar to discount programs, which are immediate rebate programs

allow participants to accrue financial benefits from purchases that are saved up
and redeemed after a set threshold or time period. These benefits can be tracked
over time but often involved a rebate of a percentage of total purchases over a
month or quarter. The rebate is often in the form of a gift certificates to drive
customers back to the store. Rebate can be in the form of a dollar value or a
percentage value.

Pros

- Relatively simple to communicate and understand, depending on the

offer structure

- Although discount based, it avoids the "discount on every purchase"

mentality

- Rebates in the form of gift certificates can often drive customers back to
the store

- Does not require much administration

- Cheaper to administer than a points based scheme (although difference

can be marginal dependent on size of rebate/cash back

- Can allow tiered offers for highest value customers

Cons

- Does not provide instant gratification

- Rewards profitable and unprofitable customers alike

- Can be expensive depending on the rebate thresholds

- Disguised discount program affects margins

- Can alienate infrequent shoppers

- Easily emulated by competition

Rebate/Cash back programs have become increasingly popular because while avoiding
immediate discounts, consumers often feel they are accruing value. Although the program can be
expensive, the rebate dollars often drive customer back to the store.

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 Implementation suggestions

If the company is going to implement to;

It is necessary to use a loyalty program like members receive targeted offers and
mailings.

Characteristics of such a program,

* Members are divided into segments based on their purchase history

* requires a comprehensive customer database of customer demographics and purchase
history

In these types of customer loyalty programs, merchants have a major commitment to

loyalty programs and use these programs as an important element in their marketing
strategy. Merchants that use this type of program need to develop and maintain a
complex database, be adept at data mining, and be able to administer a complex
communication and reward program.

While most of this type programs are based on points, these programs are able to offer
individual members specialized communications, promotions, and rewards based on their
purchase history. The best programs go beyond offering discounts based on past
purchases.

For gain more customers, it is possible to make customer communities. By this,

* The good information are transfer to the new customers by the customers
who are already in the community.

* can increase the buying habits of the customers.

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 Supply Management System (SCM)

According to expo graphic situation, they manage a small business that sells a few
services; chances are they will have a small number of suppliers. They could coordinate
their supplier orders and deliveries using telephone, fax machine, and e-mails. But if they
manage a business that produce more complex products and services (selling books
(already doing), stationary, toys, school items (bags, bottle, shoes etc.), greeting cards,
internet café…etc).then they will have hundreds of suppliers (according to expo they
suppliers mostly located in USA, India, UK), and their suppliers will each have their own
set of suppliers. May be they are in situation where they will need to coordinate the
activities of hundred or even thousand of other firms in order to produce their products
and services. Supply chain management System which we suggest to these problems of
supply chain complexity.

Their MIS system(Expo graphic) cannot be communicated rapidly with their Supplier’s
system ,therefore supplier cannot keep track of their orders, so on time deliveries cannot
be made easier, because they also concern about their business polices such as shipment
cost , transportation cost and logistics cost etc.
But SCM systems help business manage relationships with their suppliers. This system
provide information to help suppliers, purchasing firms, distributors, and logistics
companies share information about orders, production, inventory levels, and delivery of
products and services so that they can source, produce, and deliver goods and services
efficiently. The ultimate objective is to get the right amount of their products from their
source to their point of consumption with least amount of time and with the lowest cost.
If Expo graphic and its supply network do not have accurate information, they will most
likely be saddled by excessive inventories, inaccurate manufacturing plans, and missed
production schedules. Inability to move products efficiently through the supply chain raises
cost while degrading customer service.

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 Information from supply chain management systems helps firms
• Decide when and what to produce(sell) ,store, and move
• Rapidly communicate orders
• Track the status of orders
• Reduce inventory, transportation, and warehousing costs
• Check inventory availability and monitor inventory levels
• Track shipments
• Plan production(sales) based on actual customer demand
• Rapidly communicate changes in product design.

Obviously these systems will increase their sales, and then company makes more
profitability and also competes with their competitive easily. Major reason for not used
these kinds of systems commonly because of cant affordable for small company, they
need to do big investment in the very first time.

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 Weaknesses & suggestions to improve Expographic’s information system
in order to gain more competitive advantage in the market
One of the main weaknesses, rather a disadvantage is they don’t have a proper marketing
strategy. Expographic has been initiated in 1984/85 and they enjoy the highest market share in
Engineering Computer Science and Management. But as far as their competitors are concerned
Expographic’s marketing is at a minimum level.
In fact the only source advertising of Expographic is their web site, in which the on line purchasing
is facilitated. For a fact that their web site can be considered as a good marketing tool in which
a relevant amount of details are available such as “Shop for Booking”, “Publications”, “Shipping”
etc.
But today this industry is highly competitive & there are giants in this field like “Sarasavi Book
Shop”, “Vijitha Yapa” etc & real time scenario is Expo graphics will also have to compete with
them to maintain their customer base & the market share.
So one of the main suggestions in terms of marketing aspects could be to carry out a proper
marketing campaign. Following are some of the marketing tools;
1. Advertising
2. Promotions
3. Public Relations

Under advertising they can use electronic media, printed media such as paper, magazines etc.
For an example the way Sarasavi Book shop used to do their advertising.
Under promotion they can consider about giving price discounts, gift vouchers, especial offers etc.
Under PR they can facilitate sponsorships, offering scholarships, donations to schools & libraries
etc.
In addition to that if they are to expand their product portfolio they have to strengthen their
supply chain. Here a main consideration would be to increase no of out lets which would
obviously lead to more accessibility.

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 Enterprise Application

Information Systems that Span the Enterprise

Today every business will be growing fast, then the business process will also get complex
and effects to the all the functionalities and all the business areas such as sales and
marketing ,finance and accounting, manufacturing and production , and Human resource.
According to our scenario expo graphics directors looking forward to expand their
business in future .So they will hope to expand their outlets, more employee empower,
new product and service to survive in the business in near future.
According to their competitive in business they have to seek to improve the efficiency of
their business operations and high profitability, though they need the software to
integrating the all the systems using one centralized database to reduce cost and to
increase efficiency in all the functional areas rather than working their system
individually(supplier, distributors, sales, finance..Etc). The solution is they need look
forward to enterprise systems, Ex –SAP enterprise system (using Coca-cola), and oracle
also implemented those kind of enterprise systems. Enterprise systems features a set of
integrated software modules (finance (they don’t have yet), sales, human resources (not
yet), manufacturing and production (not yet)).
In near future, expansion of company they will have to face more business challengers,
and they should invest in those information systems as away to cope with and manage
their internal production functions and to cope with demands of key actors in their
environments.

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 Expo Graphics’ will look to achieve more business objectives by investing those
kind of information systems and in according to achieve below objectives.

• To achieve operational excellence(productivity, efficiency, ex: reduce the cycle

time(time of ordering to time to deliver the books via the suppliers distributors)and
agility)
• To develop new product and services(increasing the sales ,introduce various kind of
new good and services- Stationary, greeting card, toys, Past papers books in
O/L,A/L, their publications..etc)

• To attain customer intimacy and services(continuous marketing ,sales, and service

,customization and personalization)
Ex: - they enjoy the highest market share in Engineering Computer Science and
Management. They looking for other prefers of other customers).these objectives can
be fulfilled using enterprise systems-Supply chain management system, customer
relation ship management system, Knowledge management system, enterprise
systems.

• To improve decision making(accuracy and speed-expo graphic mangers some order

with poor communication of supplies and inventory, sometime they loss their sales for
instance the sales personnel might not be able to tell at the time they place an order
whether the books that were ordered are in inventory )
• To achieve competitive advantage-they need to achieve customer satisfaction given
high quality service ,optimizing customer value)
• To ensure survival( Sarasavi book shop has more Management systems in order to
success their business-such as nexus points)

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 7.0 Conclusion

This section concludes the document of MISS for Expographic (Pvt.) Limited.

We are confident that the information gathering process and other project
activities were carried out in a proper manner and we have adopted system
analysis methodologies in accordance with industry standards. Therefore we
believe that this study can be used for further their business ventures and we
are willing to assist them in any possible way if any implementation problem
arises during the integration of the proposed improvements.

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