Thesis Paper I

A Recommendation On the Information System Needs of SW!TCH Team Name: HAF

Page 1 of 214 De La Salle-College of Saint Benilde

Bachelor of Science in Business Administration major in Computer Applications

De La Salle – College of Saint Benilde

“A Recommendation on the Information System Needs of SW!TCH”

Prepared and Submitted by:

Cabugao, Frances Jarmine C.

Surigao, Anale

Vega, CharmineHazel E.

Third Trimester, S.Y 2013-2014

In partial fulfillment of the Degree of Bachelor of Science in Business

Administration Major in Computer Applications has been examined and recommended

for acceptance and approval for oral examination.

Mr. Joel T. Dizon

CAPROJ1 Adviser

Panel of Examiners

Approved by committee on oral examination

Mr. Louie Lintao Ms. Jennifer Ventus

Panel Chair Panel Member

Approved in partial fulfillment of the requirements for the degree BSBA-CA




Table of Contents Preface ....................................................................................................................................... 4 Acknowledgements .................................................................................................................. 5 Executive Summary .................................................................................................................. 6 Part I: Industry and Company Analyses .................................................................................. 8

1.1 Company Background ....................................................................................................... 8 1.1.1 Company Profile ......................................................................................................... 8 1.1.2 Company History ........................................................................................................ 8 1.1.3 Vision Statement ......................................................................................................... 8 1.1.4 Mission Statement ...................................................................................................... 9 1.1.5 Products and Services ................................................................................................ 9 1.1.6 Organizational Chart ................................................................................................. 11

1.2 External Analysis ............................................................................................................. 13 1.2.1 Industry Definition and Scanning ............................................................................... 13 1.2.2 Five Competitive Forces Analysis ............................................................................. 39 1.2.3 Identification of Opportunities and Threats ................................................................ 55

1.3 Internal Analysis .............................................................................................................. 56 1.3.1 Value Chain Analysis ................................................................................................ 56 1.3.2 Identification of Strengths and Weaknesses ............................................................ 110 1.3.3 IT Resources Inventory ........................................................................................... 113

1.4 Analysis Conclusions ..................................................................................................... 121 1.4.1 SWOT Analysis ....................................................................................................... 121 1.4.2 Identified Strategic Business Problems/Issues and Opportunities ........................... 121

Part II: Information System Project Feasibility Analysis .................................................... 126 2.1 Information Systems (IS) Project Options ...................................................................... 126

2.1.1 IS Project #1 – Customer Relationship Management .............................................. 126 2.1.2 IS Project #2 – Supply Chain Management ............................................................. 134 2.1.3 IS Project #3 – Human Resource Information ......................................................... 142

2.2 Project Selection Criteria ............................................................................................... 150 2.2.1 Feasibility (Technical, Operational, Economic) ........................................................ 150 2.2.2 Financial Payback ................................................................................................... 154 2.2.3 Beneficiaries (Internal and External) ....................................................................... 155 2.2.4 Alignment with Vision and Mission .......................................................................... 156 2.2.5 Project Risk Factors ................................................................................................ 157 2.2.6 Scoring Model ......................................................................................................... 158

2.3 Recommendations ......................................................................................................... 159 2.3.1 Scoring Model ......................................................................................................... 159 2.3.2 Other Recommendations ........................................................................................ 160

Part III: Detailed System Design........................................................................................... 161 3.1 Proposed System Scope and Limitations ....................................................................... 161

3.1.1 Limitations ............................................................................................................... 162 3.2 Propose Flow Diagram .................................................................................................. 162

3.2.1 Use Case Diagram of the Proposed System ........................................................... 162 3.2.2 Activity Diagram of the Proposed System ............................................................... 167

3.3 IT Infrastructure Blueprint .............................................................................................. 174 3.3.1 Software Requirements ........................................................................................... 174 3.3.2 Hardware Requirements ......................................................................................... 176 3.3.3 Network Diagrams .................................................................................................. 178 3.3.4 User Interfaces and Reports ................................................................................... 179




3.4 Implementation Plans .................................................................................................... 196 3.4.1 Project Development and Implementation Timetable .............................................. 196 3.4.2 Disaster-Recovery and Backup Plans ..................................................................... 197 3.4.3 Maintenance and Operations Plan .......................................................................... 198

3.5 Business Value Generation ........................................................................................... 200 3.5.1 Cost Benefit Analysis for Customer Relationship Management ............................... 200

3.6 Project Deliverables Section .......................................................................................... 204 3.6.1 Traceability Matrix ................................................................................................... 204 3.6.2 Project Scope Sign-Off Section ............................................................................... 206

Part IV: References ............................................................................................................... 210




PREFACE

This paper of study is intended as thesis proposal. It can, however, serve as reference for students and businessmen. The authors are endeavored to present a system proposal for SW!TCH – a company that is handled by Studio84 – based on the studies made on its external and internal environment. In addition, it contains two more system proposals that will be helpful for the said company in different ways. This paper also contains researched materials from various sources or former studies indicated in the reference and footnotes. Different strategies are also provided in order to cater the needs of different areas or departments, and utilize the company‘s resources. The authors trust that this work will help the said company in order to improve business processes and daily operations.




ACKNOWLEDGMENTS Team HAF had taken such efforts to accomplish this project. This would not have been possible without the efforts, support, and help of the different organizations and individuals. The group would like to extend the sincere appreciations and credits to the following people. First and foremost, Team HAF would like to thank the Most High God for giving us the courage and for guiding the team during our stressful moments in doing this project. We also want to express our deepest gratitude to our dear adviser, Mr. Joel T. Dizon who had been with us throughout the completion of the project. His knowledge and expertise with his profession gave us inspiration and motivation to meet the standards of the project. The team also acknowledges and appreciates SW!TCH company for giving us the opportunity to study their organization and being the source of the information we gathered and analyzed in this project. We also would like to thank Mr. Jeffrey Beltran, the Operations Manager of SW!TCH for accommodating us and who had been our main source of information about their company. We would like to get this opportunity to thank our former professors who helped us, advised us and taught us in some parts of the project. Without them, our project would have been incomplete. We wish to express gratefulness and appreciativeness to our families – Cabugao Family, Pines and Surigao Family, and Vega Family. Without our supportive and loving parents, this project would be impossible. Their support and words of encouragement really inspire us to get the goal we wanted to achieve – to pass CAPROJ1. Our thanks and appreciations also go to some of our high school friends who had been our inspiration and strength to carry on the project and who cheered us up in our stressful and tiring days and weeks. And last but not the least; we also appreciate the support of our love ones/special ones. They too did contribute for us to be more inspired.




EXECUTIVE SUMMARY SW!TCH is a company under Studio 84 Incorporated owned by Mr. Ben W. Loo. Its main office is found at Green Palm Building 1696 Baler Street. Barangay Valenzuela, Makati City, Philippines. They are into retailing and selling Apple products which include MacBooks, iMacs, iPods, and iPhones. Their target customers are the students from different colleges and universities. They also provide service centers that accept the complaints of the customers from different branches. This service centers offers services similar to the service centers of the Apple Corporation in United States of America. Some of the problems/issues of SW!TCH company are the following:

Opportunity Loss when customers get disappointed if no stocks are available

Cannot accommodate all customers because of a single service center

Divert customers‘ preferences to substitutes The team comes up with the Customer Relationship Management System which focuses on providing better customer service. It is a connection between the company and the customer for them to be attached and tie up a good relationship. This will be beneficial to both parties. The major benefits and brief justifications of the recommended system are the following:

- Customer Information Management Automation

The proposed system will automate the operations of the company with regards to their valued/loyal customers. The information will be easily recorded to the database and would allow the admin to check and track reserved products of the customers.

- Accessible Product Information

Instead of direct inquiry of the customers to each branch, they will now be able to access through the online website. Customers can now save time in going to branches. The company also benefits from it because they will save time to entertain the customers about their concerns.

- Fast Delivery of Information

Customers will be informed in few clicks of their fingers. The company‘s update of latest and available products, best deals, etc. will be grasped easily by the customers by just checking the website in their homes.

- Time Management Improvement

Completion of transaction will be reduced during the sales process. Inquiring and reserving will be made possible through the proposed system.




- Strengthened Customer Satisfaction

The proposed system gives convenience to both stakeholders especially to the customers. They don‘t need to spend much time and money just to check and inquire about the products in branches.

In implementation plans, the team conducted company interview to derive on internal and external analysis. The completed analysis arrived into SWOT Matrix which helps to formulate the three proposed system. After doing the scoring model as a basis to pick up the recommended system for the SW!TCH (which is suitable to the problems or issues they are encountering), the team chose Customer Relationship Management System. The recommended system will be determined and proven via presenting the features and functions of the said system. The computed return on investment of the proposed system is 11328.01 percent. This shows that SW!TCH investment for the proposed system has more than a thousand percent probability of getting back. As a general principle, the higher the ROI computed than the discount rate, the better and more advantageous to the company. The proposed system will be beneficial to SW!TCH because the Customer Relationship

Management System will be able to prevent opportunity loss in the long run operation of the

company because the total initial investment would be Php188,068.25 and with a net benefit of

Php30,609,108.94 within 0.0 year. Its return on investment would be 16275.53% and net

present value of Php77,647,897.72.

.




PART I: INDUSTRY AND COMPANY ANALYSES

1.1 Company Background 1.1.1 Company Profile

SW!TCH is a company under Studio 84 Incorporated owned by Mr. Ben W. Loo. Its main office is found at Green Palm Building 1696 Baler Street. Barangay Valenzuela, Makati City, Philippines. They are into retailing and selling Apple products which include MacBooks, iMacs, iPods, and iPhones. Their target customers are the students from different colleges and universities. They also provide service centers that accept the complaints of the customers from different branches. This service centers offers services similar to the service centers of the Apple Corporation in United States of America.

1.1.2 Company History

Studio 84 Incorporated established its corporation since 2007. Mr. Ben W. Loo and Mr. Stanley Yap were friends who decided to put up a corporation that would be divided into two branding names, the SW!TCH and the iStore. Mr. Loo and Mr. Yap proposed to the Apple Company if he could be one of the resellers of Apple products and he was luckily allowed to do so. They are into the same line of businesses but they split it and agreed to open a business in Visayas and one in Luzon and be handled differently. They are into one corporation name but the SW!TCH and the iStore are being used to their commercials and not the corporation itself. As mentioned above, SW!TCH only opened last 2007 but the business easily put up six branches for the past six years and now they are planning to put up another three branches here in Luzon. Their existing branches are found in Alabang, Laguna, Quezon City, Angeles Pampanga, Makati City, Malate Manila, Imus Cavite and Dasmariñas Cavite. Over the last six years the company absolutely faced challenges. The major problem that they had encountered throughout those years is the complaints they received from the customers.

1.1.3 Vision Statement

The company aims to become the industry leader in providing Total Solutions and Services of the highest quality through a team of highly competent and committed people.




1.1.4 Mission Statement

The following lists are the mission statements of SW!TCH:

To deliver efficient and effective Total Solutions and Quality Services to their customers, thus fulfilling their business philosophy of total customer satisfaction and delight.

To support the community by involving in worthwhile projects and activities where information technology could play a significant rule in enhancing the progress of nation-building and continuing education.

To provide the employees with challenging work in an open and participative environment marked by equal opportunities for personal as well as, professional growth. Treated with dignity, and respect, encouraged to be creative and innovative, take active roles to improve over-all productivity, and be evaluated for performance on the basis of fair and equitable standards.

To contribute to the ability and growth of the company through increase market share and sales.

To provide the Owners, Board of Directors and Management with consistent, sustainable and acceptable revenue that would give then a fair return on their investments.

1.1.5 Products and Services 1.1.5.1 Products Offered

MacBook Pro 13-inch: 2.5Ghz

MacBook Pro 13-inch: 2.4Ghz with Retina display

MacBook Pro 15-inch with Retina display

MacBook Pro 13-inch: 2.6Ghz with Retina display

MacBook Air 11-inch

MacBook Air 13-inch

Mac Mini 2.5Ghz

Mac Mini 2.3Ghz

iMac 21.5 inch 2.7Ghz

iMac 21.5 inch 2.9Ghz

iMac 27 inch 3.2Ghz

iMac 27 inch 3.4Ghz

iPod Shuffle 2GB

iPod Nano 16GB

iPod Touch 16GB/32GB/64GB

iPod Classic 160GB

iPad Air

iPad Mini with Retina display




iPhone 5s 16GB/32GB/64GB

iPhone 5c 16GB/32GB

Figure 1.1.5.1 SW!TCHOfferedProducts to Customers

1.1.5.2 Services Offered

Direct access to Apple experts

Global repair coverage

Onsite repair for desktop computers

Mail-in repair for portable computers and Apple displays

Carry-in repair

1.1.6 Organizational Chart This refers to the company-wide organizational chart.




1.1.6.1 Organizational Chart

Below is the organizational chart of SW!TCH as of 2013. They had four (4) departments with four (4) Head Managers. These departments were divided into eight (8) smaller departments supervised by the managers next to the top managers. The total numbers of employees are 57.

Chart 1.1.6.1 SW!TCH Organizational Chart as of 2013

1.1.6.2 Organizational Structure This part gives the specific descriptions of positions in the Organizational Chart of SW!TCH. The following are the lists of positions with the duties and responsibilities of each.

President– He is the head of the organization, presides over the meetings and handles all the problems inside the company. He also monitors the over-all transactions of all the branches of SW!TCH e.g. checking the profit, monitoring the company‘s day to day operations, etc.1

Human Resource Department Manager– He is in-charge of the problems of employees be it personal or the job itself.

1 http://humanresources.about.com/od/samplejobdescription/f/president.htm




Finance Manager– In-charge of analyzing the financial stability of the company e.g. checking revenues, making financial statements, giving reports on the revenues collected.

Operations Manager– He monitors the day to day operations of all the branches in Luzon. He goes from one place to another every other day and checks the status of each branch.

Service Manager – He manages the over-all transactions about the services they offered.

Service Supervisor – He is next to the Service Manager. He manages and guides the technicians and tries to solve the problems that may arise before he asks help to the Service Manager

Finance Assistant– Overtakes other duties and responsibilities of the Finance Manager

Purchasing/Logistic Manager – In-charge of all the operations that talks purchase. He communicates with their supplier and also handles the inventories

Accounting Supervisor– Collaborates with the duties and responsibilities of the Finance Manager

Collector – Collects the revenues of the company from other branches

Cashiers – Direct receiver of the payments of the customers

Stock Man– Take care of the inventories in the warehouse\

Sales Man – In charge with conversing and entertaining the customers

Caretaker – He accompanies the sales stockmen and also looks after the stocks

Finance Associates – They associate the responsibilities of the Accounting and Treasury department

Secretary – in charge of the minutes of the meeting and keeps confidential reports of the company

Technicians – They are the ones who are in-charge of the repairing defective products




MAC Trainers – Responsible in training the newly-hired employees

CSO – He is in-charge in the secrecy of all Information Securities within the company

Delivery Men – in charge of delivery matters 1.2 External Analysis

1.2.1 Industry Definition and Scanning

This part gives a proper identification of the industry the company belongs to.

Figure 1.2.1 Philippine Standard Industrial Classification of the Industry2

2 http://www.nscb.gov.ph/activestats/psic/viewDetails.asp?strCode=47412




The industry wherein Studio 84 Inc.‘s company, Switch belongs to is retail sale of information and communications equipment, such as computers and peripheral equipment, telecommunications equipment and consumer electronics, based on Philippine Standard Industrial Classification. The description ―Retail sale of information and communications equipment in specialized stores industry‖ refers to distributing products, which are the ―computers, peripheral units, software, and telecommunications equipment‖. Retailing means selling in small quantities or in individual units to end users or consumers. 1.2.1.1 Macro-environmental Analysis

Macro-environmental analysis is a continuous process that includes the scanning, monitoring, forecasting, and assessing (Hitt, Ireland, and Hoskisson, 2003).

It is also the conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment will include trends in Gross Domestic Product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro environment is closely linked to the general business cycle, as opposed to the performance of an individual business sector. (Investopedia US, 2014)3 The following tabulated figures show the indicators, reference period, and data reported by the National Statistics Office as of January 2013 which sum up the economic performance of the Philippines.(See Figure 1.2.1.1Macro-environmental Analysis of National Statistics Office as of January 2013 on next page.)

3 http://www.investopedia.com/terms/m/macro-environment.asp




Figure 1.2.1.1Macro-environmental Analysis of National Statistics Office as of January 2013




Figure 1.2.1.1 Macro-environmental Analysis of National Statistics Office as of January 2013

Macro-environmental Analysis of National Statistics Office as of January 2013 continuation…

Figure 1.2.1.1Macro-environmental Analysis of National Statistics Office as of January 2013 continued …


















Figure 1.2.1.1 Macro-environmental Analysis of National Statistics Office as of January 20134 * The base year (2000) GDP and GNI estimates were revised upward by 6.7% and 17.7%, respectively. ** The 2010 ASPBI used the new classification of establishments as prescribed by PSIC. *** Employment as of November 15, 2010

1.2.1.1.1 Sociocultural Segment

Oxford Learning Lab defined this segment as representing the culture of the society that an organization operates within. They may include demographics, age distribution, population growth rates, level of education, distribution of wealth and social classes, living conditions and lifestyle.

1.2.1.1.1.1 Shifts in work and career preferences

As the global trends arise, jobs became more impotent, and career seemed to be a great opportunity, the shifts in work and career preferences also increases.

4http://www.census.gov.ph/sites/default/files/attachments/ird/quickstat/January2013.pdf

http://www.census.gov.ph/sites/default/files/attachments/ird/quickstat/January2013.pdf




Most professionals tend to shift in work and career if there are job opportunities that are way better than their current work. This trend then affects the suppliers‘ response to the customers‘ demands.

1.2.1.1.1.2 Shifts in product and service preferences

Shift in product and service preferences cannot be avoided by any businesses. There were always be trending products and services that would turn the individuals to shift on their preferences.

With this, the suppliers tend to respond immediately to the customers‘ demands in order to gain revenues which are the reason why they do certain businesses.

Relevance

Retail sale of information and communications equipment as observed is in-demand kind of businesses and belongs to globally competitive industry. This segment then surely affects the industry because professionals would tend to shift works if better opportunities come on its way.

Furthermore, shifts in product and service preferences are also common reactions of every customer in any industry. Thus, retail sale industry always finds opportunities that would lead the customers to choose the products that would fit their preferences.

1.2.1.1.2 Economic Segment

1.2.1.1.2.1 Inflation Rate

In January of 2014, Philippines annual inflation rate rose to 4.2 percent, up from 4.1 percent recorded in December and closer to the upper end of the central bank's 3.4 to 4.3 percent estimate for the month.

The slightly higher January headline inflation rate was traced mainly to higher prices of food and selected non-food items.

Food inflation increased (5.5 percent from 4.8 percent in December) as key food items particularly rice, meat, fish, milk, oils, vegetables, and sugar,




posted higher prices due to some tightness in domestic supply conditions triggered by recent weather-related production disruptions.

The recent upward trend in inflation therefore appears to stem mainly from supply shocks, the impacts of which are expected to be transitory. Non-food inflation also rose as a result of higher prices of clothing and footwear (4.9 percent), furnishing and household equipment (4.9 percent) and health-related products (3.7 percent).

Core inflation, which excludes certain food and energy items, was steady at 3.2 percent.

Seasonally-adjusted month-on-month headline inflation decelerated slightly to 0.5 percent in January from 0.6 percent in the previous month (Bangko Sentral ng Pilipinas).

Inflation Rate in Philippines is reported by the National Statistics Office of Philippines. Inflation Rate in Philippines averaged 8.93 Percent from 1958 until 2014, reaching an all-time high of 62.80 Percent in September of 1984 and a record low of -2.10 Percent in January of 1959. In Philippines, the most important categories in the Consumer Price Index are: food and non-alcoholic beverages (39 percent of total weight); housing, water, electricity, gas and other fuels (22 percent) and transport (8 percent). The index also includes health (3 percent), education (3 percent), clothing and footwear (3 percent), communication (2 percent) and recreation and culture (2 percent). Alcoholic beverages, tobacco, furnishing, household equipment, restaurants and other goods and services account for the remaining 15 percent (Trading Economics). 5 (See Figure 1.2.1.1.2.1 Philippines Inflation Rate: Annual Change of Consumer Price Index6 on next page).

5 http://www.tradingeconomics.com/philippines/inflation-cpi

6www.tradingeconomics.com | National Statistics Office

http://www.tradingeconomics.com/




Figure 1.2.1.1.2.1Philippines Inflation Rate: Annual Change of Consumer Price Index7

1.2.1.1.2.3 Philippines Foreign Exchange Reserves

Foreign Exchange Reserves also known as Official Reserves and International Reserves are the foreign assets held or controlled by the central banks. The reserves themselves can either be gold or a specific currency like the dollar or the euro. They can also be special drawing rights and marketable securities denominated in foreign currencies like treasury bills, government bonds, corporate bonds and equities and foreign currency loans. The reserves are generally used to finance the balance of payments imbalances or to control exchange rates.8 Foreign Exchange Reserves in Philippines decreased to 83749.32 USD Million in December of 2013 from 84024.76 USD Million in November of

7www.tradingeconomics.com | National Statistics Office

8 http://www.tradingeconomics.com/philippines/foreign-exchange-reserves





2013. Foreign Exchange Reserves in Philippines is reported by the Bangko Sentral Ng Pilipinas. From 1960 until 2013, Philippines Foreign Exchange Reserves averaged 11342.1 USD Million reaching an all-time high of 85760.8 USD Million in January of 2013 and a record low of 44.1 USD Million in December of 1961. In Philippines, Foreign Exchange Reserves are the foreign assets held or controlled by the country central bank. The reserves are made of gold or a specific currency. They can also be special drawing rights and marketable securities denominated in foreign currencies like treasury bills, government bonds, corporate bonds and equities and foreign currency loans.

Figure1.2.1.1.2.3 Philippines Foreign Exchange Reserves9

9www.tradingeconomics.com | BangkoSentralngPilipinas





1.2.1.1.2.4 Personal Savings Rate

Personal Savings (Households Savings) is most often referred as the ratio of household income saved to household net disposable income in certain period of time. It can also indicate the total value of savings deposits in the economy.

Personal Savings in Philippines decreased to 0.62 percent in November of 2013 from 0.67 percent in October of 2013. Personal Savings in Philippines is reported by the Bangko Sentral Ng Pilipinas. From 1982 until 2013, Philippines Personal Saving Rates averaged 6.3 Percent reaching an all-time high of 14.5 Percent in January of 1991 and a record low of 0.4 Percent in September of 2013. In Philippines, Personal Saving Rates correspond to the interest rate persons receive on their savings deposits during a certain period of time.10

Figure1.2.1.1.2.4 Philippines Personal Savings Rate11

10

http://www.tradingeconomics.com/philippines/personal-savings 11

http://www.tradingeconomics.com | Bangko Sentral ng Pilipinas





1.2.1.1.2.6 Gross Domestic Product

The gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and output. GDP can be defined in three ways, which should give identical results. First, it is equal to the total expenditures for all final goods and services produced within the country in a specified period of time (usually a 365-day year). Second, it is equal to the sum of the value added at every stage of production by all the industries, plus taxes and minus subsidies on products. Third, it is equal to the sum of the income generated by production like compensation of employees, taxes on production and imports less subsidies, and gross operating surplus. The Gross Domestic Product (GDP) in Philippines was worth 250.27 billion US dollars in 2012. The GDP value of Philippines represents 0.40 percent of the world economy. GDP in Philippines is reported by the World Bank. From 1960 until 2012, Philippines GDP averaged 56.1 USD Billion reaching an all-time high of 250.3 USD Billion in December of 2012 and a record low of 4.4 USD Billion in December of 1962. The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time.12(Refer to Figure 1.2.1.1.2.6Philippines GDP Billions of U$ Dollars on next page).

12

http://www.tradingeconomics.com/philippines/gdp




Figure 1.2.1.1.2.6Philippines GDP Billions of U$ Dollars13

Relevance

The increase of 0.1 percent (4.2%) in January 2014 from its previous month (4.1%) Inflation Rate implies that prices of products in the Philippines also increased. This statistics only shows that as the products of other industries increases, the bigger chances of retail sale of information and communications equipment also increases.

In addition to that, Philippines Foreign Exchange Reserves decreased $83,749.32 Million in December of 2013 from $84,024.76 Million in November of 2013 according to Bangko Sentral ng Pilipinas. As for the relevance of this statistics to the said industry, this may affect the families of customers that are working abroad. The dollars that are sent in the country is lower in its equivalent in peso. This might change the decisions of consumers to budget their money in the products they mostly

13

www.tradingeconomics.com | World Bank





need. Retail Sale of information and communications equipment industry will surely decline the revenues of their businesses.

Furthermore, Personal Savings of individuals in the Philippines had a decrease of 0.05% as reported by Bangko Sentral ng Pilipinas. The demeaning household savings rate decreases the chances of having extra money to buy other products that the customers want.

Moreover, the Gross Domestic Products measures the national income and output for a given country's economy. The latter industry contributes mainly to the economic sector of the country.

1.2.1.1.3 Technological Segment

This segment is part of the environment that includes the institutions and activities involved with creating new knowledge and translating that knowledge into new outputs, products, processes, and materials.14 Technological trends are impacting businesses today. The following are the impacts of Technological trends.

Rapid pace of technological change

Promise of greater returns for early adopters of new technologies

Impact of the Internet on business practices.

Impact of wireless communications on business practices. 1.2.1.1.3.1 Product Innovations

Organizations rely on new products, technologies, and platforms to create customer value, grow market share, enter new markets, increase profitability, and even alter market and competitive landscapes. Product innovation is a critical enabler in a competitive marketplace. Therefore, the ability to prioritize and focus on the right development projects is at the very heart of a successful product innovation program (Stage-gate International Website, 2000-2014).15

14

www.bus.iastate.edu/rlsmith/Mgmt%20377/.../CA3e-PPT-Ch.%203.pptx 15

http://www.stage-gate.com/resources_strategy.php




1.2.1.1.3.2 New Communication Technologies

Technology is the foundation of the Philippine‘s future economic development. The Philippines shall use information and communications technology (ICT) to leapfrog into the new economy.

The Philippines enjoys significant comparative advantages in ICT – an English speaking, highly educated, easily trainable, and skilled workforce with a growing track record of successful ICT work; a basic policy environment that is right for business; government commitment at the highest levels, with strong private sector support in the pursuit of a common ICT agenda; and rising entrepreneurial abilities suitable for a globalizing economy. With its rich human resources and strategic location in Asia and the Pacific, the Philippines has the potentials to fully benefit from an ICT-driven development strategy.

To build on the country‘s strengths and gain greater momentum in the nation‘s quest for rapid and sustainable development and growth, the Philippines shall further enhance its competitive edge in ICT by: (a) building the physical infrastructure to ensure wider, faster and reliable access at low cost to information and other ICT resources, especially in the undeserved rural areas; (b) enhancing the policy and legal environment to promote ICT development and universal access to information and other ICT resources; (c) developing the country‘s human potential to enable Filipinos to compete in the digital age; and (d) promoting the use of ICT to streamline business processes and modernize government operations for greater productivity (Philippine Communication Centrum Website).16

Relevance

The 20K generation technology makes almost all things possible be it in telecommunication, innovation and development of different products, and other prototypes that make people lives easier and more comfortable now.

16

http://ww2.aijc.com.ph/PCCF/knowldege/points/pointsofview-ict.htm




Technology gives huge impact on globalization that enables companies of all sizes to do business with customers all over the world. In addition, businesses can establish satellite offices in practically any country no matter how remote as long as there is Internet access. The competition for providing Internet access to developing nations will proliferate, enabling growth in areas previously deprived of business opportunities due to lack of communication devices(Ruth Mayhew, Demand Media). 17 Therefore, since SW!TCH is in line with technologies, it does contribute big time with the economic performance of the Philippines.

1.2.1.1.5Demographic Segment

This segment refers to the population estimation that are usually produced by a country´s statistical office or Census Bureau. The Population Census provides the most reliable picture of a country's population because the data is collected at a specified time from the entire population; in contrast to other surveys, in which information is collected from only a small part of the residents. When monthly population estimates are required, the population count is updated by adding births, subtracting deaths, and adding net international migration since the census date.18

1.2.1.1.6.1 Population Size

According to Trading Economics website, the total population in Philippines was last recorded at 95.8 million people in 2012 from 27.1 million in 1960, changing 254 percent during the last 50 years. Population in Philippines is reported by the Bangko Sentral ng Pilipinas (BSP). From 1960 until 2012, Philippines Population averaged 58.4 Million reaching an all-time high of 95.8 Million in December of 2012 and a record low of 27.1 Million in December of 1960.

The population of Philippines represents 1.37 percent of the world´s total population which arguably means that one person in every 74 people on the planet is a resident of Philippines.(See Figure 1.2.1.1.6.1 Philippines Population: Millions of People on next page.)

17

http://smallbusiness.chron.com/technology-impacting-changes-21st-century-workplace-3357.html 18

http://www.tradingeconomics.com/philippines/population




Figure 1.2.1.1.6.1Philippine Population Rates and Trends19

1.2.1.1.6.2 Age Structure

The Philippines recorded a total of 92,097,978 household population or non-institutional population in the 2010 Census of Population and Housing (CPH), an increase of 15.8 million from the 76.3 million household population counted in the 2000 CPH. Of the household population in 2010, 33.4 percent were under 15 years of age or 30.7 million. Children below 5 years old comprised 11.1 percent of the household population in the entire country. Children aged 5 to 9 years accounted for 11.2 percent of the household population, and those aged 10 to 14 years, another 11.0 percent. By comparison, in 2000, children under 15 years old accounted for 37.1 percent of the household

19

http://www.tradingeconomics.com/philippines/population




population in the country. Children below 5 years of aged comprised 12.7 percent of the total household population. In terms of the distribution by age and sex, there were more males than females in age groups 0 to 54 years in 2010, with the males comprising 51.0 percent of these age groups. In contrast, there were more females than males in the older age group 55 years old and over. The males in these age groups made up 45.9 percent.20

Figure 1.2.1.1.6.2 Age-Sex Pyramid of Philippines‘ Household Population as of 201021

Median age increases to 23.4 years

In 2010, the median age of the country's population was 23.4 years, which means that half of the household population was younger than 23.4 years. This is higher than the median age of 21.3 years recorded in 2000. The country's median age for males in 2010 was 22.9 years, while that for females, 23.9 years.

By region, NCR had the highest median age of 25.5 years, with the median age for its male population one year lower than that for female (24.9 years and 26.0 years, respectively). ARMM had the lowest

20

http://www.census.gov.ph/content/age-and-sex-structure-philippine-population-facts-2010-census 21

National Statistics Office




median age of 18.1 years. The median age for its male population was 17.8 years, half a year lower than the median age for its female population (18.3 years)

1.2.1.1.6.1 Income Distribution

The gap between the rich and the poor is most pronounced in the Philippines as compared with neighboring Southeast Asian nations, a new study by research and advisory firm Stratbase Research Institute showed.

The study noted that the Philippines registered a Gini coefficient of 44 percent last year, higher than Thailand‘s 42.5 percent, Indonesia‘s 39.4 percent, Malaysia‘s 37.9 percent and Vietnam‘s 37.8 percent.

The global ranking was prepared by international group Vision of Humanity using the Gini coefficient, a measure of the inequality of a distribution, as the basis. (Inquirer.net Website, 2011)22

Relevance Businesses market products or services through targeted approaches to different segments of the population. Demographics are the statistical component of marketing used to identify population segments by specific characteristics. Whether small or large, businesses need a targeted approach to consumers. Demographics affect all the choices a business owner makes in developing a marketing plan. Using demographics gives you a head start in understanding your market.23 SW!TCH is indebted to know the population size of its target market to perceive the number of products to be marketed. This is important because it helps the company to become an efficient one. Moreover, age structure of the target market is also one of the factors that need to be studied. Since SW!TCH is into selling of gadgets, age structure of the customers helps them track the preferences of specific bracket of ages.

22

http://business.inquirer.net/8377/philippines-leads-in-income-inequality-in-asean-says-study 23

http://smallbusiness.chron.com/importance-demographics-marketing-25365.html




Furthermore, not all people can afford to buy the Apple products SW!TCH offers. The income of individuals is not equally distributed because of the different jobs each are in to. Only those who have high income have the capability of buying it. The products of SW!TCH are offered to everyone but they have this certain target market that they expect and assume to gain high revenue from them.

1.2.1.2 Strategic Dimensions

This dimension refers to what type of customers is the reselling of technological and telecommunication devices and/or equipment industry‘s firms aiming for. This market segmentation shows the differences between market segments present in the industry. Through this, the companies will know what specific needs do the different customers demand. This will also determine how flexible the companies are in selling their products. First Strategic Dimension: Specialization – Target Customers Served

Mobirati

These are youngsters and young adults who grew up with technological awareness, experiencing cell phones, computers, and other technological and telecommunication devices and/or equipment as a part of their everyday lives. They make up nineteen percent (19%) of the users or customers of the industry.

They are the ones from the present generation and are mostly 18 to 24 years of age. These people are the ones that will most likely be or feel lost without them.

Social Connectors

Making up twenty-two percent (22%) of the industry‘s customers are the Social Connectors. These are people who want mobile and other devices that let them keep up with others in multiple ways including E-mail, SMS, voice, conferencing, and video calling. For them communication is central in their lives and technological and telecommunication devices allow them to keep up to date with friends and social events. These devices are their bridge to their social world.

Pragmatic Adopters These are people with which technological and telecommunication devices came into being during their adult years. They are now realizing that there are also other things they can do with mobile




phones, tablets, computers and other devices aside from saying ―Hi.‖ These devices can be an important part of their everyday life than ever before. However, they find these devices as more functional than entertaining. These people make up twenty-two percent (22%) of the customers of this industry. Basic Planners These are people who make up twenty percent (20%) of the industry‘s customers. They are not into mobile phones or the world of technology. They use mobile phones or other devices just for the basics – texting and calling. These devices are just a simple communication device for these consumers Technological Professionals Making up the remaining seventeen percent (17%) of the industry‘s customers are the technological professionals. Mobile phones and other devices help them keep up with their professional life in addition to their personal life. They are the ones who are more likely to own a smart phone. They use their phone as their all-in-one device for all communication and information needs. Features are important and used. However, they also buy other types of technological and telecommunication devices other than smart phones.

Second Strategic Dimension: Specialization – Product Line

Mobile Phones

A mobile phone, also known as cellular phone, cell phone, or hand phone is a device that makes and receives telephone calls over a radio link while moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile phone operator, allowing access to the public telephone network. By contrast, a cordless telephone is used only within the short range of a single, private base station. Telephones A telephone, or phone, is a telecommunications device pioneered by Charles Grafton Page, Innocenzo Manzetti, Charels Bourseul,

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

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

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

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



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

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

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




Johann Philipp Reis, Antonio Meucci, Cromwell Varlet, Poul la Cour and Daniel Drawbaugh. It permits two or more users to conduct a conversation when they are not in the same vicinity of each other to be heard directly. A telephone converts sound, typically and most efficiently the human voice, into electronic signals suitable for transmission via cables or other transmission media over long distances, and replays such signals simultaneously in audible form to its user.

Smartphones

A smartphone, or smart phone, is a term for distinguishing mobile phones with advanced features from basic feature phones. A smartphone is like a miniature computer that can also place and receive calls. Though there lacks an industry-standard definition of a smartphone, the simplest way to tell a cell phone apart from a smartphone is to determine whether or not the device has a mobile operating system. Laptops A laptop is a portable personal computer with a clamshell form factor, suitable for mobile use. They are also sometimes called notebook computers or notebooks – small versions of laptops. Laptops are commonly used in a variety of settings, including work, education, and personal multimedia. They are frequently used as a primary PC platform amongst young people.

Desktop Computers A desktop computer is a personal computer in a form intended for regular use at a single location desk/table due to its size and power requirements, as opposed to a laptop whose rechargeable battery and compact dimensions allow it to be regularly carried and used in different locations. The most common configuration is a computer monitor, keyboard and mouse, and a case that houses the main components of the PC, namely the power supply, motherboard, hard drive, optical drive, and previously the floppy drive. The form factor of the case is typically an upright tower or (horizontal) desktop. All-in-one computers, that integrate the monitor and main PC components in one unit, are often categorized under the desktop computer umbrella, particularly if they require an external power source and separate keyboard/mouse. The desktop category has also encompassed home computers and workstations.

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

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

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

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



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

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

http://en.wikipedia.org/wiki/Flip_(form)

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

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

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

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

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

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

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




Tablet Computers A tablet computer, or simply tablet, is a mobile computer with display, circuitry and battery in a single unit. Tablets are equipped with sensors, including cameras, microphone, accelerometer and touchscreen, with finger or stylus gestures replacing computer mouse and keyboard. Tablets may include physical buttons, e.g., to control basic features such as speaker volume and power and ports for network communications and to charge the battery. An on-screen, pop-up virtual keyboard is usually used for typing. Tablets are typically larger than smart phones. There are also Hybrids, which include detachable keyboards. Mobile Digital Media Players A Mobile Digital Media Player is a portable digital consumer electronics device that is capable of storing and playing digital media which is electronically stored, such as audio, images, and video files, etc. and is primarily designed to be carried with you on your person during use.[1][2] The data is digitized information typically stored on a flash memory, microdrive, or hard drive. It is often marketed as Portable MP3 Player. Camera A camera is an optical instrument that records images that can be stored directly, transmitted to another location, or both. These images may be stillphotographs or moving images such as videos or movies. The term camera comes from the word camera obscura (Latin for "dark chamber"), an early mechanism for projecting images. The modern camera evolved from the camera obscura. The functioning of camera is very similar to the functioning of the human eye.

Device Accessories Device accessories include any hardware or software that is not integral to the operation of a mobile phone as designed by the manufacturer. These are used to enhance, protect, and/or customize the main product as to the customers‘ preferences. Peripherals A peripheral is a device that is connected to a host computer, but not an integral part of it. It expands the host's capabilities but does not form part of the core computer architecture. It is often, but not always, partially or completely dependent on the host.

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

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

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

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

http://en.wikipedia.org/wiki/Keyboard_(computing)

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

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



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



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



http://en.wikipedia.org/wiki/Mobile_digital_media_player#cite_note-1



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

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

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

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

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

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

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

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

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

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

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

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


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

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




Home Appliances Home appliances are electrical/mechanical machines, which accomplish some householdfunctions, such as cooking or cleaning. Given a broad usage, the domestic application attached to "home appliance" is tied to the definition of appliance as "An instrument or device designed for a particular use or function."

1.2.1.3 Strategic Map

Figure 1.2.1.3 Strategic Map – Industry Competitors

1.2.1.3.1 Strategic Map – Direct Competitors

1.2.1.4 Strategic Groupings GROUP A – These are the companies that target Mobirati, Social Connectors, Pragmatic Adapters, Basic Planners, and Technological Professional customers. These companies sell pure Apple products like Mac, iPad, iPhone, iPod, and Apple Accessories and provide Apple Care services. GROUP B – These are the companies that target Mobirati, Social Connectors, Pragmatic Adapters, Basic Planners, and Technological Professional customers. These companies sell Apple Products like Mac, iPad, iPhone, iPod, and Apple Accessories and provide Apple Care services. Aside from selling Apple Products they also sell other products such as Cameras, Monitors & Displays, Printers, Peripherals, Accessories, Supplies & Consumables, External Drives, Fax Machines, Flash Drives, Memory Cards, Powerbank, Projectors, Storages, UPS/Video Card, Accessories & Back-ups, and Home Entertainment & Appliances. The said other products have also different brands like Acer, Asus, HP, Lenovo, Portege, Samsung, Toshiba, Sony, Vaio, Neo, AOC, EPSON, Kingston, Microsoft, O+, Canon, Stylus Office, PNY, Sandisk, etc. GROUP C – These are companies that target Social Connectors, Pragmatic Adapters, Basic Planners, and Technological Professional customers. These

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

http://en.wikipedia.org/wiki/Mechanism_(engineering)

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

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

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

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




companies sell products that are not completely Apple branded. They are considered as substitutes which have prices that are cheaper than the branded ones. After mapping the resellers of computer equipment peripherals and the competitors in the said industry and based on the dimensions of Target Customers and Product Lines, SW!TCH can be found in Group A.

1.2.2 Five Competitive Forces Analysis

This part includes the diagram and in-depth discussions of the Strategic Dimensions. It also includes profiles of organizations and individuals classified under each force.(See Figure 1.2.2 Result of Five Competitive Forces Analysis on next page.)

Figure 1.2.2 Result of Five Competitive Forces Analysis

Suppliers Buyers

Potential

Entrant

Threat of Substitutes Products or Services

Industry Competitors

HIGH

Rivalry Among

Existing Firms

Substitutes

LOW

HIGH

HIGH LOW

Threat of New Entrants

Bargaining Power of Buyers

Bargaining Power of Suppliers

Potential Entrants

Buyers Suppliers




1.2.2.1 Rivalry of Competitors (HIGH)

Defining competitors means specifying both the direct and indirect rivals in the industry. The company being studied is a retail business that offers Apple-branded devices and/or equipment. Therefore, the direct rivals considered for the company of study are those which offer the same – Apple-branded – products. On the other hand, the indirect competitors are those companies who also sell other technological and telecommunication devices and/or equipment, but with different functionalities, features, and operating systems. But aside from these legally considered indirect competitors, there are also a high percentage of informal competitors in this industry.

Based on the determinants, the rivalry of competitors is high.

Determinant 1: Number of Competitors (HIGH) Sub-determinant 1: Few Direct Competitors (Low)

Apple Inc. is one of today‘s most renowned companies all over the world. Due to this fact, premium resellers, not only in the Philippines, but also in any other countries, find it easy to acquire sales.

Even so, in order for Apple Inc. to retain good reputation among customers, they have been very strict in allowing businessmen and businesswomen to start their own premium reselling company.

Due to high standards, it has been very hard to enter the industry of being an Apple Inc. premium reseller. This results to a small number of direct competitors. There are only approximately 8 premium resellers of Apple-branded products scattered in the Philippines24.

Therefore, the rivalry of competitors is low. Sub-determinant 2: Numerous Indirect Competitors (High)

There are a huge number of indirect competitors in the market. These competitors are those who offer the same type of devices and/or equipment, but with different functionalities and features. Aside from those two differences, the major difference between them is actually the operating system behind them.

24

http://www.apple.com/asia/ipad/buy/resellers-ph.html




Apple Inc. is the only company which offer iOS, but there are bunches of other companies which offer different operating systems like Android and Windows. Those companies are also strict in authorizing premium resellers, but because those companies are numerous, the number of authorized of sellers are also many. Therefore, the rivalry of competitors is high. Sub-determinant 3: Numerous Informal Competitors (High) Aside from the normal direct and indirect competitors of within the industry, there are also informal competitors like the ones who sell the same products without proper authorization. These products are smuggled, robbed, second hand (already used), or being sold by sellers without proper permit. It is said that as of year 2000, 25.4% of Philippines‘ Gross Domestic Product is due to the Informal Sectors25. It simply shows that these informal sectors occupies one fourth of the country‘s total goods produced and services provided in a country. Therefore, the rivalry of competitors is high.

Determinant 2: Customer-focused Competitors (HIGH)

Sub-determinant 1: Customer-focused Direct Competitors (High) Apple Inc. provides a set of equal and detailed rules for all its premium resellers. This means that all direct competitors share the same quality of stores and products. The only thing that makes a difference between them is the quality of service that the front row employees offer to their customers. Also, they are making ways to set the lowest price possible in accordance to the bracket allowed by their supplier.

Therefore, the rivalry of competitors is high.

25

http://www.congress.gov.ph/download/cpdb/fnf_112008_profsector.pdf




Sub-determinant 2: Customer-focused Indirect Competitors (High) The products that are offered by indirect competitors are made with high level of study by the supplying companies. These strategies of continuously improving and innovating technological and telecommunication devices and/or equipment are being made to develop a high level of competitiveness among other competing companies. According to research, these strategies result to higher sales of products of different competitors every year2627. Due to this type of mindset, the rivalry of competitors is high.

Determinant 3: Low-Level of Uniqueness (HIGH) Sub-determinant 1: Low-Level of Uniqueness between Direct Competitors’ Products (High)

Being a premium reseller of the same specific brand of products, means that there is a single supplier for them all. Having the same suppliers also means that the products being sold to the resellers and offered to the customers are simply identical.

Therefore, the rivalry of competitors is high. Sub-determinant 2: Low-Level of Uniqueness between Indirect Competitors’ Products (High)

Compared to Apple Inc, the products of indirect competitors are distinct, but if they were to compare among themselves, their products are actually almost the same with each other. Some special features are what make them different with each other, but it only takes a small span of time for other companies to come up with if not the same, almost the same or even better features. This results to almost the same specifications of the competing companies28. Therefore, the rivalry of competitors is high.

Conclusion: Based on the research and analysis of the group, the rivalry between competitors is high. This is due to the number of selling companies there are, that the customers get to have

26

http://appleinsider.com/articles/14/02/05/apples-195-percent-share-of-global-pc-tablet-sales-now-larger-than-dell-hp-together 27 http://www.academia.edu/4103079/Apple_Marketing_Analysis_Report_Apple_iPhone_Case_Study 28

http://www.omio.com/phones/compare/




more choices on where and which to buy. This situation serves as a threat to the companies because of their rich endeavor to compete in order for them to obtain higher profit.

1.2.2.2 Threat of Substitutes (HIGH)

Substitute products are the products being offered by indirect competitors of the companies. These are technological and telecommunication devices and/or equipment that offer different, but sometimes almost the same, features to the customers, but being run by different operating systems. Based on the determinants, the threat of substitutes is high.

Determinant 1: Substitutes are readily Available (HIGH) Technology is in its fast pace, nowadays. Competitors offering products with almost the same features are numerous. The demand for these devices is also high. This leads to more retail stores scattered in every mall and any other business-based buildings. As of 2011, there were 383,636 business establishments within this industry subclass identified in Philippine Standard Industry Classification29. It means that these substitutes are readily available for customers. Therefore, the threat of substitutes is high. Determinant 2: Substitutes are attractively priced (HIGH) Nowadays, the demand for technological devices is high. Companies are doing their best to maintain and gain more customers, even higher than other competitors. One way of reaching this condition is to make products attractively priced. Promotions like these catch the attention of customers, mostly those price-conscious clients. Also, Apple Inc.‘s strategy is differentiation30 , which applies to customers that are not price sensitive. Therefore, the threat of substitutes is high. Determinant 3: Substitutes are Convenient (HIGH) The numbers of companies that offer substitute products are plentiful that it can be found in any malls. Also the number of its retail shops is higher than those of the Apple premium resellers

29 http://www.dti.gov.ph/dti/index.php?p=321 30

https://docs.google.com/document/preview?hgd=1&id=17QYNzjPuyHA2223UfaCkYLaF8Y4v69BbOFEKaSkzkdY




present in the country. This leads to a more convenient and easy to locate stores that offer substitute products, which also resulted to a higher popularity of its substitutes. Apple Inc.‘s operating systems market share is 5%, while Window‘s operating systems market share is 92%31.

Therefore, the threat of substitutes is high.

Conclusion: In accordance to the group‘s research and analysis, this force serves as a great threat to the company. This is due to a high number of indirect competitors present in the industry, which offer products with features almost the same with those offered by the company being studied. Also, Apple-branded products are known for its high prices. A mistake in management may make the customers, especially the price conscious ones, switch to substitute products present in the market.

1.2.2.3 Threat of New Entrants (LOW)

New market entrants are businessmen and businesswomen that are still starters in an industry. These people may be new to venturing in businesses, experienced with other industries, but shifted, or those who already own a business from another type of industry. These entrants will be brining additional production capacity within the industry and may gain a large share in the market. Based on the determinants, the threat of new market entrants is low.

Determinant 1: Customer Loyalty (HIGH)

Sub-determinant 1: Low Customer Loyalty between Direct Competitors (High)

Most people or customers in the industry are after the brands of the products, but not the retail stores, which lead to a lower loyalty to directly competing retail stores.

Premium retail stores of a specific brand are supplied by a single company. This justifies the fact that the products being offered in these retail companies are all the same. This results to customers who would possibly switch into not only the veteran direct competitors, but even into newly emerging direct competitors.

Therefore, the threat of new entrants is high.

31

http://www.hongkiat.com/blog/mac-vs-pc-myth-busting-consumer-guide/




Sub-determinant 2: Low Customer Loyalty between Indirect Competitors (High) There are many accredited and unaccredited competitors in the industry. It is said that 41.43% of customers in this industry are loyal to the brand they are buying. It is overpowered by 58.57% of the customers who do not expect to get the same handset brand for the next time they will buy32. Therefore, the threat of new entrants is high.

Determinant 2: High Capital Requirements (LOW) Setting up a retail business means buying stocks of different products. This industry‘s products are not as cheap as the products of other retail businesses like those of the sari-sari stores that are well known in the country. Buying stocks for a single retail business of this industry‘s type of products – technological and telecommunication devices and/or equipment – requires a big amount of money. This might even cost millions, depending on the largeness of the business place. This makes it harder for any other competitors to start-up a business under this type of industry.

For the company of study, which started simply as a kiosk store, it started with a capital of 2.5 Million. A bigger start-up will cost a higher amount of capital. Therefore, the threat of new entrants based on this determinant is low. Determinant 3: Access to Distribution Channels (LOW)

Sub-determinant 1: Low Access to Distribution Channels of New Direct Competitors (Low)

To start a premium retail company means to be authorized by a specific company or supplier to sell the latter‘s products, which is very hard to do. There are many processes to be done in order to be authorized.

Also, the supplier of the company of study, Apple Inc. is still not accepting new resellers as of 30th of January, 2014 as shown in the figure below.

Therefore, the threat of new entrants is low.

32

http://yougov.co.uk/news/2010/05/07/smartphone-brand-loyalty/




Figure 1.2.3 Apple Channel Programs – Premium Reselling (as of 30th of January, 2014)33

Sub-determinant 2: Low Access to Distribution Channels of New Indirect Competitors (Low) It is true that there are many companies are now arising in this industry. However, being an authorized reseller is a different thing. That is the reason why micro enterprises constitute to 91% of total number of micro, small and medium enterprises34.

Therefore, the threat of new entrants is low.

Conclusion: In accordance to the group‘s research and analysis, there is a moderate threat in this factor due to strict restrictions given by the suppliers, but with different choices of what to sell. There is also a high number of choices of distribution channels. However, the products are of high prices and would require new entrants to use a high starting capital. Mixed level of threats are present in this competitive force.

1.2.2.4 Bargaining Power of Suppliers (HIGH)

The bargaining power of suppliers is the impact or ability of supplying companies to influence the pricing state of the industry. Based on the determinants shown below, the bargaining power of suppliers is high.

Determinant 1: Number of Suppliers (LOW)

Sub-determinant 1: Single/Few Supplier(s) for Direct Competitors (High)

33

http://salesresources.apple.com/cp/channel/channel_update.html 34

http://www.dti.gov.ph/dti/index.php?p=321




Being a premium reseller means being supplied by the head supplier. Thus, having other premium resellers as competitor means having the same supplier for all. Despite the presence of unauthorized or informal sellers, the hand suppliers for all of the products are still either the main supplier – Apple Inc – or the authorized premium resellers themselves. This is unless the products that they are selling are imitations or obtained by any criminal act like robbery.

An industry that is dominated by a single or few suppliers shows a greater power of suppliers. Therefore, the bargaining power of supplier is high. Sub-determinant 2: Numerous Suppliers for Indirect Competitors (Low)

The fact that there are many indirect competitors in the industry means that there are also a lot of suppliers for resellers. It contributes to the fact that there is a low bargaining power of suppliers.

Sub-determinant 3: Numerous Supplies for Informal Sellers (Low) As of year 2000, 25.4% of Philippines‘ Gross Domestic Product is due to the Informal Sectors, which is one fourth of the country‘s total goods produced and services provided in a country35. There are many ways to sell informally like second-hand selling, rob-and-sell, selling without proper permit and many more. Most of these belong to the micro enterprises, which is also said to be 91% of the MSMes36. Their high number proves that the micro enterprises have a lot of ways to gather products to sell. This determinant shows that the bargaining power of suppliers is low.

35

http://www.congress.gov.ph/download/cpdb/fnf_112008_profsector.pdf 36

http://www.dti.gov.ph/dti/index.php?p=321




Determinant 2: Threat of Forward Integration (LOW) Philippines sure is coping with the technological advancement happening all around the world. However, it is still not on the lead compared with many other countries. An example that will prove this is shown in Figure 1.2.4, which showcases the top ten countries with the highest rate of mobile phone users as of 23rd of January, 2013.

Figure 1.2.4 Countries with highest ratio of Mobile Phone Users (as of 23rd of January, 2013)

Apple Inc already forward integrated in countries as shown in Figure 1.2.5. If it will be compared with Figure 1.2.4, there are still many countries in which Apple Inc. haven‘t ventured in direct selling yet, namely India, Russia, Indonesia, Brazil, Vietnam and Pakistan. Therefore, there are still many countries which will most likely be prioritized by Apple Inc. before Philippines. This is the reason why the threat of forward integration is low. Therefore, the bargaining power of suppliers is low.




Figure 1.2.5 Countries with Apple Store Branches (as of 30th of January, 2014)37

Determinant 3: Supplies are Major Input in the Industry (HIGH) The companies are present to resell products that they bought from suppliers. This means that the supplies are their major input in the business. Without these supplies, no revenue will be gained from it because no business transactions will be made. This determinant proves that the bargaining power of suppliers is high. Determinant 4: High Switching Cost (HIGH) To be considered an authorized premium reseller, the reselling company must be getting its supplies directly from the manufacturers. It will lose one of its major factors of credibility once it transferred from the manufacturer to another reseller to

37

http://salesresources.apple.com/cp/channel/channel_update.html




buy its products. Also, ordering directly from the suppliers will lessen their cost for buying the products they will sell because manufacturer‘s selling price is lower than the resellers‘ which has a higher value added cost. This determinant shows that the bargaining power of suppliers is high.

Determinant 5: Dominated by Few Suppliers (HIGH) According research, 58.9% of the total sales in this industry is made by the top 5 grossing suppliers38. The remaining 41.1% sales are the total sales of all other suppliers or manufacturers. The top five grossing suppliers dominate the industry. This determinant shows that the bargaining power of suppliers is high.

Conclusion: In accordance to the research and analysis of the group, the bargaining power of the supplier is high. This factor serves as a threat because there is only a single supplier for firms that are considered authorized premium resellers in this specific industry. Without it, there would be no industry. Also, these suppliers are very powerful because of the great reputation that it has built all over the world, and due to the fact that the top suppliers dominate the industry the companies are buying from.

1.2.2.5 Bargaining Power of Customers (LOW)

The bargaining power of customers is determined on how far they can influence the pricing of products or services being offered in the industry. It is the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. However, firms can take measures to reduce buyer power. According to the determinants, the bargaining power of customers is low.

Determinant 1: Products are being offered at a High Price (LOW) There are many people or customers who find the products‘ prices high. However, since they built a high economy of scale, which is carried around by premium resellers, they have the capability to sell with high revenue or profit without even lowering their price.

38

http://www.gartner.com/newsroom/id/2623415

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




Therefore, the bargaining power of customers is low. Determinant 2: Alternative Suppliers for the Customers Can Be Found In the Market (HIGH)

Apart from end users, private enterprises are also some of the industry‘s customers. Some buys products for business overhead supplies, while others buy for retailing purposes too. These enterprises who buy products from the industry for retailing can serve as alternative suppliers for the industry‘s customers. Most of these enterprises are part of the micro enterprises, which constitutes to 91.1% of the total MSMes (Micro, Small and Medium Enterprises) in the Philippines39. Also, these enterprises, since they are not premium resellers – meaning, they are not handled or under the rules and regulations of Apple Inc. – can make different promotions in any way they want. These promotions would attract more customers. Aside from these enterprises who resell products bought from premium resellers, there are also other enterprises who resell secondhand products. However, these secondhand products are sometimes obtained through good and bad ways. Some sell used products in a legal manner, while others sell used products which are obtained through illegal acts like robbery. Nevertheless, they are still alternative suppliers. Therefore, the bargaining power of customers is high. Determinant 3: Threat of Backward Integration (LOW) Due to a difficult process of entering the industry and high capital requirement, the threat of backward integration is low. A high capital requirement is not only for premium resellers, but also for informal sectors in the industry, which constitutes to 25.4% of Philippines‘ Gross Domestic Product of the Philippines40. Therefore, the bargaining power of customers is low. Conclusion: According to the research and analysis of the group, there is a low threat within the bargaining power of the customers. It will require customers a high amount of capital to backward integrate. Also, due to increasing number of competitors, and the high prize of the industry‘s products, customers have many choices from where to buy to, and will therefore find ways to utilize well their money.

39 http://www.dti.gov.ph/dti/index.php?p=321 40

http://www.congress.gov.ph/download/cpdb/fnf_112008_profsector.pdf




1.2.2.6 Summary of 5 Competitive Forces

Rivalry of Competitors HIGH

Number of Competitors High

Few Direct Competitors Low

Numerous Indirect Competitors High

Numerous Informal Competitors High

Customer-focused Competitors High

Customer-focused Direct Competitors High

Customer-focused Indirect Competitors

High

Low-Level of Uniqueness High

Low-Level of Uniqueness between Direct Competitors‘ Products

High

Low-Level of Uniqueness between Indirect Competitors‘ Products

High

Threat of Substitutes HIGH

Substitutes ate Readily Available High

Substitutes are Attractively Priced High

Substitutes are Convenient High

Threat of New Entrants LOW

Customer Loyalty

High

Low Customer Loyalty between Direct Competitors

High

Low Customer Loyalty between Indirect Competitors

High

High Capital Requirement Low




Table 1.2.2.6 Summary of 5 Competitive Forces

Access to Distribution Channels Low

Low Access to Distribution Channels of New Direct Competitors

Low

Low Access to Distribution Channels of New Indirect Competitors

Low

Bargaining Power of Suppliers HIGH

Number of Suppliers Low

Single/Few Supplier(s) for Direct Competitors (High)

High

Numerous Suppliers for Indirect Competitors

Low

Numerous Supplies for Informal Sellers

Low

Threat of Forward Integration Low

Supplies are Major Input in the Industry High

High Switching Cost High

Dominated by Few Suppliers High

Bargaining Power of Customers LOW

Products are being offered at a High Price Low

Alternative Suppliers for the Customers Can Be Found In the Market High

Threat of Backward Integration Low




1.2.2.6 Benchmarking

Table 1.2.2.6 Benchmarking




1.2.3 Identification of Opportunities and Threats 1.2.3.1 Opportunities

Opportunity 1 (O1): New Entrants have no Access to the only Contribution Channel

The supplier – which is Apple Inc. is currently not accepting new product resellers (See Figure 1.2.3). Companies in the industry should take this opportunity to build a good reputation to the customers and a strong bond in order to enhance the customers‘ loyalty. Opportunity 2 (O2): Supplier Carries Good Reputation The company is practically into buying and selling of suppliers products. It carries the supplier‘s brand name, which means it also carries with it its reputation and high economies of scale. With the use of the brand name‘s popularity and the trust given by the customers to it, a high amount of revenue or sales will most likely be received by the reselling company. Opportunity 3 (O3): Customers’ Loyalty to the Brand There are customers some who are not loyal to the reselling company. However, most of them are loyal to the brand that it carries. An Apple product user would seem likely to be an Apple product user all throughout. Also, there is a noticeable development in the sales of the company every year. According to the income statement of the company from 2010 to 2012, their sales are amounting to Php112,118,937, Php253,748,796, and Php261,390,099 respectively. With the continuous established success and reputation of the supplier, the sales are still seen to continuously increase as well. Opportunity 4 (O4): Increasing number of Mobirati Customers Being born in a generation where in technological devices are being used in everyday life most likely makes someone hold onto these types of things for the next decades of their lives. Soon, these types of customers will dominate the market‘s customers. As of 2010, the median age of the Filipino people is 23.4. This means that half of the total population is younger than 23.4, and the other half constitutes to the ones older than 23.4. This age is still considered to be part of the Mobirati generation. Also, social connectors are most likely to




be at the same age of the Mobirati. Adding up the Mobirati and Social Connectors constitutes to 41% of the customers41. Therefore, in can be concluded that the increasing number of these types of customers will also increase the sales of the firms.

1.2.3.2 Threats

Threat 1 (T1): Customer-focused Competitors Due to very similar product line, direct competitors are making ways in order to gain a greater portion of the market. Also, indirect competitors are in the move. Technology is upgrading in a great speed, which brings more indirect competitors. A higher number of competitors make a greater division in their market shares. Because of this, companies are all trying their best to compete.

Threat 2 (T2): Substitutes are Readily Available

Due to the fast paced technology, and a great demand from most people, more and more companies are engaging into selling telecommunications equipment. These brings more substitutes open for the market. Threat 3 (T3): Substitutes are Attractively Priced The product line of this industry is known as the most costly telecommunications equipment. And since more substitute products are being released in the market, the companies are making ways in order to gain more customers. One of the best ways to do so is to lower their prices. If prices go down, but the companies will still be able to produce, if not the same, almost the same quality of products, the customers may switch to buy the substitutes. Threat 4 (T4): Supplies are Major Input in the Industry Without the products being ordered from the suppliers, there will be no business, for there will be no transactions between resellers and customers. This constitutes to a high bargaining power of the supplier. Threat 5 (T5): The company has seven direct competitors with undifferentiated products These seven direct competitors have high level of rivalry among each other (See 1.2.2.1 - Determinant 3, Sub-determinant 1) because of undifferentiated. This is considered a threat because due to high level of rivalry, companies will also be eager to improve their strategies in order to overpower their competitors.

41

http://www.experian.com/assets/simmons-research/white-papers/experian-simmons-2011-mobile-consumer-report.pdf




1.3 Internal Analysis

1.3.1 Value Chain Analysis

AdministrationandManagement–Preparing FinancialStatement, Branches

Monitoring, Customer Monitoring, Stocks Monitoring and Sales Inventory Monitoring

HumanResources– GettingSalesAgents,CompensatingEmployees,Hiring Workers, Training Workers, Employees Monitoring

Technology– Sales Transactions, Sales Forecasting, Inventory Management (Lightspeed software)

Procurement–Purchasing order from supplier

InboundLogisti

cs–Receiving of stocks,

Storing the stocks

Operation– Cost Plus Pricing

Outbound Logistics–

Releasing of stocks to different

branches, Actual selling

Salesand Marketing– Purchasing order from customer,

Receiving of payment

Services– Perform product warranty

Figure 1.3.1 Value Chain Analysis of SW!TCH

The basic structure for analyzing the scheme of Switch is Michael Porter‘s value chain. The term used is by Michael Porter‘s book entitled: Competitive Advantage: Creating and Sustaining Superior Performance in year 1985. 42 It focuses on a system that is described as a chain of activities. The two (2) divisions of the chain are ‗primary activities‘ and ‗support activities‘. The primary activities are the activities involved in the physical creation of the product and its sale and transfer to the buyer as well as after-sale assistance. It has five (5) generic categories which are inbound logistics, outbound logistics, operations, sales and marketing and services. The support activities are the support of the primary activities and each other by providing purchased inputs (procurement), technology, human resource and various firm-wide functions (administration and management).43 1.3.1.1 Primary Activity 1 – INBOUND LOGISTICS

Inbound Logistics is for the production and development activities, organizations need inputs as goods which are received from the suppliers. Inbound logistics refer to all the activities related to receive

42

http://www.fao.org/fileadmin/user_upload/fisheries/docs/ValueChain.pdf 43

http://people.tamu.edu/~v-buenger/466/Value_Chain.pdf





Delivery Man

Logistic Assistant

Logistic Manager

Receiving of stocks

Storing of stocks

(Inventory

Management)

goods from the suppliers, decision about the transportation scheduling, storing the goods as inventory, managing the inventory, and make the inputs ready to use for the production of end products.44

For Switch the Inbound Logistics Activities are as follows:

- Receiving of Stocks - Storing of Stocks (Inventory Management)

Figure 1.3.1.1.1 Use Case Diagram: Inbound Logistics

Narrative for the Use Case “Receiving Stocks”

Identification Summary

Title: Receiving Stocks

Summary: This use case allows the Logistic Manager to receive stocks from suppliers.

Actors: Logistic Manager, Logistic Assistant, Delivery Man

Creation Date: January 30, 2014

Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega

Flow of Events

44

http://www.managementexchange.com/hack/mapping-porter%E2%80%99s-value-chain-activities-business-functional-units




Preconditions:

1. The Logistic Manager must be informed by the supplier that there will be a delivery of stocks in a certain date.

2. The Logistic Manager must be in the main office at the date of delivery for the stocks to be received.

Main Success Scenario:

1. The Delivery Man arrives with the stocks. 2. The Logistic Manager will ask the Delivery Man for the delivery

receipt. 3. The Logistic Manager will ask the Logistic Assistant to release the

stocks from truck. 4. While the Logistic Assistant is releasing the stocks from the truck, the

Logistic Manager is checking the list and counting the stocks being discharged out of the truck.

5. After the Logistic Assistant unload all the stocks from the truck, the Logistic Manager will counter check and check the stock discharge with the stocks written in the delivery slip.

6. The Logistic Manager will sign in the delivery receipt (for the proof of receiving the stocks completely).

7. While the Logistic Manager is signing the delivery receipt, the Logistic Assistant will bring the stocks in the main office‘s warehouse.

8. The use case is ends successfully. Alternative Sequences:

A1: There is damage or incorrect items delivered.

1. The Logistic Manager will reject the item. 2. The Logistic Manager will inform the Delivery Man and the

Supplier about the damage or incorrect delivery of stocks. 3. The Logistic Manager will record the changes in quantity in the

delivery receipt.

Error Sequences:

E1: The delivery man didn‘t have the delivery receipt. 1. The Logistic Manager will not accept the stocks. 2. Use case fails.

Post Conditions:

1. The stocks increased. 2. The Logistic Manager has the delivery receipt. (See Figure 1.3.1.1.2 Activity Diagram: Receiving of Stocks on next page).




Figure 1.3.1.1.2 Activity Diagram: Receiving of Stocks

Delivers

Stocks

Gets Receipts

Unloads

Stocks from

Truck

Checks Accuracy

of Stocks

Double-Checks

Accuracy of Stocks

Discrepancy in Stocks

No Yes

Signs

Delivery

Receipt

Rejects Items

with

Discrepancy

Informs Delivery

Man the

Reason for

Rejecting

Record

Changes in the

Delivery Receipt

Brings Stocks in the

Main Office‘s

Warehouse

Delivery Man Logistics Manager Logistics Assistant




Narrative for the Use Case “Inventory Management”


Title: Inventory Management

Summary: This use case allows the Logistic Manager to store the stocks to warehouse and send it out to different branches.

Actors: Logistic Manager, Logistic Assistant


Date of Update:

Version: 1.0

Person in Charge: Cabugao, Surigao, Vega

Flow of Events

Preconditions: 1. The Logistic Manager has received the new set of stocks. 2. The Logistic Manager has signed the delivery receipt.


1. The Logistic Assistant unloads the stocks from truck. 2. The Logistic Manager will counter check again the stocks discharged. 3. The Logistic Assistant will bring the new stocks to warehouse. 4. The Logistic Assistant will arrange the stocks according to the model

(Mac Laptops, iPhones or iPods). 5. The Logistics Manager will inform the Logistic Assistant the amount of

delivery needed per branch. 6. The Logistic Assistant to send out the stocks to different stores

(branches). 7. The use case ends successfully. Alternative Sequences: A4: The warehouse is full of stocks

1. Bring the new stocks to the other vacant part in the main office.

Error Sequences: E6: The stocks send out in wrong branch assigned

1. It will reject the stocks. 2. The use case fails.




Post Conditions: 1. The Logistic Assistant will inform the Logistic Manager that the stocks

are currently the warehouse. 2. After the Logistic Assistant informs the Logistic Manager, Logistic

Manager will inform the top management about the new set of stocks received.

Figure 1.3.1.1.3 Activity Diagram: Inventory Management

Unloads Stocks

from Truck

Logistics Assistant Logistics Manager

Counter Checks Stocks

Discharged

Keeps Stocks

Brings Stocks to

other Vacant Parts in

the Main Office

Brings Stocks to the

Main Office‘s

Warehouse

Arranges Stocks

According to Model

Informs Logistic Assistant

the Amount to be delivered

per Branch

Sends out Stock to

Different

Stores/Branches

No Yes

Full Warehouse




Figure 1.3.1.1.4 Ishikawa Diagram: Inventory Management 1.3.1.2 Primary Activity 2– OPERATIONS Activities associated with transforming inputs into the final product form, such as machining, packaging, assembly, equipment maintenance, testing, printing, and facility operations.45

For Switch the Operation is as follow:

- Cost Plus Pricing

Figure 1.3.1.2.1 Use Case Diagram: Operations

45


Clash going into stockroom

Inefficient inventory recording & monitoring

Ine

Ine

ffic

ien

t

ha

nd

ling o

f

Inven

torie

s

SLOW IN

UNLOADING ITEMS

UNORGANIZED

STORAGE

UNSUITABLE

WORKERS

Unsuitable employee doing the

task Employee use

common marketing strategy

Runs out of stocks Lengthy time in

checking inventory

Cost Plus Pricing

Operation Manager Supplier




Narrative for the Use Case “Cost Plus Pricing” Identification Summary Title: Cost Plus Pricing

Summary: This use case allows the Operation Manager to perform cost plus pricing.

Actors: Operation Manager, Supplier

Creation Date: March 28, 2014

Date of Update: -

Version: 1.0

Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions:

1. There are newly arrived products from Supplier.


1. The Operation Manager will check the products supplied to the Company. 2. The Operation Manager will list down the items and its exact price

from the supplier. 3. The Operation Manager will perform cost plus pricing (in order for the

company to gain profit from Customers) before sending the products to different branches.

4. Inform the Supplier about the cost plus pricing for approval. 5. The use case ends successfully.

Alternative Sequences:

A2: There‘s no need for the Operation Manager to list down the items.

1. The Operation Manager can easily ask for the price list from the Supplier.

Error Sequences:

E4: The Suppliers disapproved the cost plus pricing.

1. The Operation Manager will change it again. 2. The use case fails.




Post Conditions:

1. There will be a cost plus pricing when it is purchased. 2. The products will be sending out to the branches.

Figure 1.3.1.2.2 Activity Diagram: Cost Plus Pricing

ManagerSupplier

List down all

items and its

equivalent prices

Approve the

Cost Plus

Pricing

Reject the

Cost Plus

Pricing

Apply the

approved cost

plus pricing Change the Cost

plus pricing of

products

Perform Cost Plus

Pricing

Manager

products delivered

Cost Plus Pricing

verification




Releasing of stocks to different branches

Actual selling

Logistic Manager

Sales

Sales man

Logistic Assistant

Customer

1.3.1.3 Primary Activity 3 – OUTBOUND LOGISTICS

Outbound Logistics is for finished products that are developed using the product related activities. Now activities are required to transfer the finished products to the customers via warehousing, order fulfillment, transportation, and distribution management.46

For Switch, the Outbound Logistics Activities are as follows: - Releasing of stocks to different branches - Actual selling

Figure 1.3.1.3.1 Use Case Diagram: Outbound Logistics

Narrative for the use case "Releasing Stocks”

Identification summary

Title: Releasing Stocks

Summary: This use case allows the Logistic Manager to release stocks from warehouse.

Actors: Logistic Manager, Logistic Assistant, Sales, Salesman, Customers

46


Logistic Assistant





Date of Update: -

Version: 1.0


Flow of Events

Preconditions:

1. The Logistic Manager will inform the top management to release the stocks in different branches.


1. The Logistics Manager will inform the Logistic Assistant the amount of

delivery needed per branch. 2. The Logistic Assistant to send out the stocks to different stores

(branches). 3. Sales will check stocks delivered. 4. Sales will formally receive stocks through a receive slip. 5. The use case ends successfully.


A1: There is damage or incorrect items delivered.

1. The Sales will reject the item. 2. The Sales will inform the Logistic Assistant about the damage or

incorrect delivery of stocks. 3. The Logistics Assistant will record the changes in quantity in the

receive slip.

Error Sequences:

E2: The Logistic Assistant didn‘t have the receive slip. 1. The Sales will not accept the stocks. 2. The use case fails.

Post Conditions:

1. The stocks increased. 2. The Sales has the receive slip.

(See Figure 1.3.1.2.2 Activity Diagram: Releasing of Stocks on next page).




Figure 1.3.1.3.2 Activity Diagram: Releasing of Stocks

Logistics Manager Logistics Assistant Sales

Informs Logistic

Assistant the amount to

be delivered per

Branch

Sends out Stocks to the

Branches

Checks Delivered

Stocks

Formally Receives

through Signing in the

Receive Slip

Yes No

Damage/Discrepancy on

Products

Rejects

Products

with

Damage

Changes data in the

Receive Slip




Figure 1.3.1.3.3 Ishikawa Diagram: Releasing Stocks

Narrative for the Use Case “Actual Selling”


Title: Actual Selling

Summary: This use case allows the Salesman for actual selling of the stocks.

Actors: Sales, Salesman, Customer


Date of Update: - Version: 1.0


Flow of Events

Preconditions:

1. The Sales must receive the new set of stocks. 2. The Sales must have the receive slip.

Ineff

icie

nt

Rele

asin

g o

f

Sto

cks

UNSYSTEMATIZED

PROCESS

POOR

TECHNOLOGY

UNINTERESTED

WORKERS

Inaccurate number of stocks to be

released

Workers have inadequate knowledge where stocks are to

be deliver

Workers are not proficient with their works Workers lack

initiative

Manual process of releasing

stocks





1. The Sales will display some of the stocks of all models in the branch‘s shelves.

2. The Salesman will explain some of the features of what the Customer prefer in choosing a product.

3. The Salesman will persuade the Customer for the latter to be encouraged to buy.

4. The use case ends successfully.


A1: There is damage on the product in launching it on the Customer. 1. The Salesman will inform the Sales about the damage. 2. The Salesman will change the item.

Error Sequences:

E4: The Salesman doesn‘t have any knowledge about the product.

1. The Salesman will be under the training again. 2. The use case fails.

Post Conditions:

1. The branch has introduced the new set of stocks or models.

(See Figure 1.3.1.3.4 Activity Diagram: Actual Selling on next page).




Figure 1.3.1.3.4 Activity Diagram: Actual Selling

1.3.1.4 Primary Activity 4 – SALES AND MARKETING

Sales and Marketing is for activities that include the advertising, channel selection, product promotion, selling, product pricing, retail management, etc. The activities are performed to make sure that the products are transferred to the targeted customer groups. Marketing mix can be an instrument to take the competitive advantage to the target customers.47

For Switch the Sales and Marketing Activities are as follows: - Purchasing Order - Receiving of Payment

47


Sales Salesman

Displays

Stocks

Explains features to

Customers

Persuades the

Customer to Buy

Informs the Sales

about the Damage

Replaces the

Sample Product

Yes No

Damage on Displayed/

Sample Product




Figure 1.3.1.4.1 Use Case Diagram: Sales and Marketing

Narrative for the Use Case “Purchasing Order”


Title: Purchasing Order

Summary: This use case allows the Customer to purchase a product.

Actors: Salesman, Customer


Date of Update: March 27, 2014 Version: 1.0


Flow of Events

Preconditions:

1. The Salesman convinces the Customer to buy a product in their branch.

2. The Customer has a preferred product in mind.

Logistic Manager

Purchasing order

Receiving of

Payment

Customer

Cashier

Salesman





1. The Salesman will inform the Customer terms and conditions for purchasing the product.

2. The Customer will go to the Cashier with the Salesman for the payment of the product.

3. The use case ends successfully.


A1: There is damage on the preferred product. 1. The Salesman will replace the item. 2. The Salesman will inform the Sales about the damage.

Error Sequences:

E3: The Customer does not have the product in the Cashier. 1. The Salesman will get the product for payment. 2. No transaction will be recorded. 3. The use case fails.

Post Conditions:

1. The sales increased. 2. There is new transaction recorded (about Sales).

Figure 1.3.1.4.2 Activity Diagram: Purchasing Order

Salesman Customer

Informs the terms and

conditions for purchasing

the product.

Proceeds to the Cashier

for Payment




Figure 1.3.1.4.2 Ishikawa Diagram: Purchasing Order

Narrative for the Use Case “Receiving of Payment”


Title: Receiving of Payment

Summary: This use case allows the Customer to pay an item. Actors: Salesman, Cashier, Customer


Date of Update: March 27, 2014

Version: 1.0


Preconditions:

1. The Customer has a product(s) in mind. 2. The Customer is ready to pay.

Logistic Manager

TRADITIONAL THINKING

OF EMPLOYEE

Ine

Ine

ffic

ien

t

pu

rcha

sin

g

ord

er

DEFECTIVE

PRODUCTS

UNORGANIZED

STORAGE

Faultily products given to customer

There are impaired products.

Sales Personnel use common

marketing strategy

Products are not categorized

properly





1. The Salesman will accommodate the Customer to the Cashier for the payment.

2. The Salesman will get a new stock of the chosen product from the inventory to the Cashier.

3. The Salesman will check the quality of the product from inventory. 4. The Customer will choose a mode of payment. 5. The Customer will pay according to the chosen mode of payment. 6. The Customer will sign in the terms and conditions slip. 7. The Cashier will record the transaction. 8. The Cashier will package the product. 9. The use case ends successfully.


A1: There is damage on the chosen product.

1. The Salesman will replace the item. 2. The Salesman will inform the Sales about the damage.

Error Sequences:

E3: The Customer pays fake money. 1. The money will be rejected. 2. The product will be return to the stocks again. 3. The use case fails,

E4: The Customer‘s card is invalid.

1. The cashier will inform the customer about the problem in his/her card.

2. The cashier will postpone the recording of transaction until a valid payment is made.

Post Conditions:

1. The sales increased. 2. There is new transaction recorded (about Sales).

(See Figure 1.3.1.4.3 Activity Diagram: Receiving of Payment on next page).




Figure 1.3.1.4.3 Activity Diagram: Receiving of Payment

Damaged Product

Yes No

Replaces

Product

Accommodates

the customer to

the Cashier

Salesman Customer Cashier

Gets new stock

from the Inventory

Checks quality of

the product from

Inventory

A

A

Chooses mode of

Payment

Pays according to

the mode of

payment chosen

Signs terms and

conditions slip

Receives Payment

Records Transaction

Packages the Product

Gives Receipt




1.3.1.5 Primary Activity 5 – SERVICES A service is for the Organization offers the services after the products and/or services have been sold. These service activities enhance the product‘s value in the form of after sales guarantees, warranties, spare parts management, repair services, installation, updating, trainings, etc.

For Switch the Service is as follow: - Performing Product Warranty

Figure 1.3.1.5.1 Use Case Diagram: Services Narrative for the Use Case “Performing Product Warranty” Identification Summary Title: Performing Product Warranty Summary: This Use Case allows the Technician to perform a product warranty for the Customer‘s satisfaction. Actors: Technician, Customer Creation Date: January 30, 2014 Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Performing a

product warranty

Technician Customer

Logistic Manager




Preconditions: 1. The Customer wants to use the product‘s warranty for technical

support. 2. The Customer has a concern about the purchased product.

Main Success Scenario: 1. The Customer will bring the product of concern in the service area. 2. The Customer will explain the concern to the Technician. 3. The Technician will assess the concern of the Customer. 4. The Technician will answer or solve the concern of the Customer in having

the product‘s warranty. 5. The use case ends successfully.


A1: The Customer does not have the product for the concern.

1. The Technician will ask for the concern without the product and answer it.

2. If Customer is not contented with the explanation of the Technician, the former will return to bring the product of concern.

Error Sequences: E4: The Technician does not have the knowledge about the concern of the Customer

1. The Technician will undergo again Training. 2. Use case fails

Post Conditions: 1. Customer satisfied. 2. New transaction recorded (about Product Warranty).

(See Figure 1.3.1.5.2 Activity Diagram: Services on next page).




Figure 1.3.1.5.2 Activity Diagram: Services

Customer Technician

Brings product of Concern

in the Service Area

Explains to the Technician

his/her concerns

Assesses Customer‘s

concern

Answers/

Solves

Customer‘s

Concerns

Yes No

Product has Damage not

Caused by Customer

Replaces the

Product




Figure 1.3.1.5.3 Ishikawa Diagram: Services 1.3.1.6 Support Activity 1 – ADMINISTRATION AND MANAGEMENT

Senior Management includes the planning management, legal framework, public affairs, quality management, general management, etc. These are required to perform the value added activities efficiently to drive the organization forward to meet the strategic plan and the objectives.48

For Switch the Senior Management are as follows: - Branches Monitoring - Customer Monitoring - Sales Inventory Monitoring

(See Figure 1.3.1.6.1 Activity Diagram: Administration and Management on next page).

48


Ine

Ine

ffic

ien

t

ren

de

rin

g

se

rvic

es

LACK OF SERVICE

CENTER

MANUAL

DESIGNATION

UNSUITABLE

WORKERS

There is only one service

center.

Unsuitable

employee doing the

task

Employee use

common marketing

strategy

Assigning

technician

manually




Figure 1.3.1.6.1 Use Case Diagram: Administration and Management Narrative for the use case “Branches Monitoring” Identification summary Title: Branches Monitoring Summary: This use case allows the Top Management to monitor the branches. Actors: Top Management, Branch Manager Creation Date: January 30, 2014 Date of Update: March 27, 2014 Version: 1.0 Person in Charge: Cabugao, Surigao, Vega

Branches

Monitoring

Customer

Monitoring

Sales Inventory

Monitoring

Top Management

Branch Manager

OIC

Sales

Logistic Manager

Stocks Monitoring

Preparing Financial

Statement

Stockman

Purchasing Manager

Finance




Flow of Events Preconditions: 1. The Top Management will go to different branches of the company.

Main Success Scenario: 1. The Top Management needs to see the Manager of a certain branch for

updating the Top Management what‘s happening to the branch. 2. The Manager will give the report of the branch for the Top Management

knows the updates and happenings in the branch. 3. The Top Management will leave the branch after having the report. 4. The use case ends successfully.


A1: The Top Management cannot go physically in the branch for updates. 1. The Manager can have an email to Top Management about the

report. 2. The Manager can see the Top Management through social media

for reports.

Error Sequences: E2: The Manager does not have the report.

1. The Top Management will be having urgent meeting. 2. The Manager will be having a consequence about not doing the

report on time. 3. The use case fails.

Post Conditions: 1. The Top Management knows the updates in each branch. 2. There will be a summary report for all the branches.

(See Figure 1.3.1.6.2 Activity Diagram: Branches Monitoring on next page).




Figure 1.3.1.5.2 Activity Diagram: Branches Monitoring

Figure 1.3.1.5.3 Ishikawa Diagram: Branches Monitoring

Chooses mode of

meeting

Gives the Report

Leave the branch

Top Management

Branch Manager

Top Management is

personally available

No Yes

Conducts

personal

meeting

Conducts

online

meeting

Ine

Ine

ffic

ien

t

Bra

nche

s

Mo

nito

rin

g

MANUAL

REPORTING

LENIENT

MANAGEMENT

UNSKILLED

WORKERS

Can‘t cater urgent

need of inventory

reports

Manually record the data of

Customer Information

Worker doesn‘t

have the mastery of

his/her work

Workers assigned

are not proficient in

their work

Weak

Advertisement There is lenient

management

policy




Narrative for the use case “Customer Monitoring” Identification summary Title: Customer Monitoring Summary: This use case allows the Top Management to monitor all the Customers of the company. Actors: Top Management, OIC Creation Date: January 30, 2014 Date of Update: -

Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. The Top Management will see the OIC in every branch.

Main Success Scenario: 1. The Top Management meets the OIC in the branch where it is assigned. 2. The Top Management will asks for OIC‘s report with the Customer‘s wants

or demands and knows the Customers who are loyal in the company. 3. The OIC will give a certain report including the updates the enumeration of

Customers and what are the specific demands of Customers. 4. The Top Management will ask some of the problems of the Customers in

the branch and what are solutions of the management in the branch. 5. The OIC will summarize the report written in the papers for the

satisfaction of the Top Management in reporting the updates. 6. The Top Management will go to other branches. 7. The use case ends successfully.


A3: The OIC does not have the list of demands of Customers. 1. The OIC will report it orally. 2. The OIC will send an email to the Top Management after the

meeting.

Error Sequences: E3: The OIC does not have the report.

Logistic Manager




1. The Top Management will discontinue the meeting. 2. The use case fails.

Post Conditions: 1. Top Management satisfied. 2. New strategies to come up for the Customer‘s demands.

Figure 1.3.1.6.3 Activity Diagram: Customer Monitoring

Reports

documented

demands of

Customers

Report in a

summarize way

Go to other

branches

Reports

orally

Meeting with the

OIC

(for reporting)

Top Management

OIC

Gives the Report

Asks for problems




Narrative for the use case “Sales Inventory Monitoring” Identification Summary Title: Sales Inventory Monitoring Summary: This use case allows the Top Management to monitor all the sales of the company. Actors: Top Management, Sales Creation Date: January 30, 2014 Date of Update: -

Version: 1.0


Preconditions: 1. The Top Management will check the Sales Inventory using

Lightspeed.

Main Success Scenario: 1. The Top Management meets the Sales for a meeting. 2. The Top Management will asks all Sales position what are the updates in

the Sales of the company and how does it come to be low or high in sales. 3. Each Sales person will explain and give a full report about the sales and

what is the most demanding product in every transaction recorded. 4. The Top Management will come up for new system and prefer all the

products that are demanded to be purchase to the supplier. 5. The Top Management will adjourn the meeting after all updates.


A4: The Top Management will not come up with new strategy. 1. The Top Management will maintain the system (if it‘s making the

sales high).

Error Sequences: E3: The Sales Group does not have new reports.

1. The Top Management will discontinue the meeting. 2. The Top Management will come up to another meeting. 3. The use case fails.




Post Conditions: 1. Top Management satisfied. 2. New strategies to come up for increasing the Sales more

Figure 1.3.1.6.4 Activity Diagram: Sales and Inventory Monitoring

Reports about

high or low sales

Report in a

summarize way

Go to other

branches

Reports

orally

Meeting with the Sales

(for reporting)

Top Management

Sales

Gives the Report

Asks for problems




Figure 1.3.1.6.4 Ishikawa Diagram: Sales Inventory Monitoring

Narrative for the Use Case “Preparing Financial Statement” Identification Summary Title: Preparing Financial Statement Summary: This use case allows the Human Resource to prepare the financial statement. Actors: Finance, Top Management Creation Date: January 30, 2014 Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. The Company must have quantitative information.

Ineff

icie

nt S

ale

s

Invento

ry

mo

nitorin

g

UNSYSTEMATIZED

MONITORING

POOR

TECHNOLOGY

UNSKILLED

WORKERS

There are damaged

stocks released in

branch There are out of stocks

happening

Workers assigned


their work

Relying all the

transactions in one

system

Logistic Manager




Main Success Scenario 1. The Finance will check the Lightspeed software for all the transactions of

Sales. 2. The Finance will prepare the financial statement which includes

balance sheet, income statement and cash flow. 3. The Finance passes the Financial Statement to the Top Management

for verification. 4. The Top Management will verify and sign the Financial Statement. 5. The Finance will pass the financial statements to BIR.

Alternative Sequences: A3: The Human Resource will not check the Lightspeed software but the reports of all the Sales Personnel.

1. The Human Resource can prepare Financial Statement by the reports that include all the transaction for a year.

Error Sequences: E4: The Human Resource does not sign the Financial Statement.

1. Reject the Financial Statement. 2. Use Case fails.

Post Conditions: 1. The Financial Statement must be passed on the BIR and SEC. 2. The BIR will check the audit of the Financial Statement.

(See Figure 1.3.1.7.5 Activity Diagram: Preparing Financial Statements on next page).




Figure 1.3.1.7.5 Activity Diagram: Preparing Financial Statements

Prepare Financial

Statement

Passes Financial

Statement to BIR

Finance Top Management

Check all

transactions

Checks the Financial

Statement

Signs the Financial

Statements

Returns the Financial

Statements to the

Finance

Informs Finance about

Corrections

Returns the Financial

Statements to the

Finance

A

A




Narrative for the use case “Stocks Monitoring” Identification Summary Title: Stocks Monitoring Summary: This use case allows the Stockman to check the Stocks. Actors: Stockman, Purchasing Manager Creation Date: January 30, 2014 Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. The stocks are in critical level or in demand. Main Success Scenario: 1. The Stockman will always check the stocks. 2. The Stockman will report to the Purchasing about the update in

quantity of stocks. 3. The Purchasing Manager will read all the reports about the stocks.


A1: The Stockman will not always check the stocks 1. The Stockman can check it only if the stocks are on critical level or

in demand.

Error Sequences: E2: The Stockman does not update the Purchasing.

1. The stocks are insufficient in the Customer‘s demands. 2. Use case fails

Post Conditions: 1. There is always purchasing activity of stocks 2. There sufficient stocks.

Logistic Manager




Figure 1.3.1.7.6 Activity Diagram: Stocks Monitoring

Figure 1.3.1.7.7 Ishikawa Diagram: Stocks Monitoring

Stockman Operation Purchasing

Check the Inventory

Check of the

Verifies and signs

the Financial

Statement

Report the stocks

left

Inefficient inventory

monitoring & recording

Ine

Ine

ffic

ien

t

Sto

cks

Mo

nito

rin

g

STOCKS

SHORTAGE

UNORGANIZED

STORAGE

UNSKILLED

WORKERS

Running out of

stocks

Supplier sends limited

stocks

Worker doesn‘t

have the mastery of

his/her work

Workers assigned


their work




1.3.1.7 Support Activity 2 – HUMAN RESOURCES

Are the support for the attainment of the overall strategic business plan and the objectives, for financing and accounting purposes also.49

For Switch the Human Resources are as follows: - Getting Sales Agents - Compensating Employees - Employees Monitoring - Hiring Workers - Training Workers

Figure 1.3.1.6.1 Use Case Diagram: Human Resource

Narrative for the Use Case “Getting Sales Agents” Identification Summary Title: Getting Sales Agents

Summary: This use case allows the Administration to get Sales Agents. Actors: Human Resource, Sales Agent (applicant)

49


Logistic Manager




Creation Date: January 30, 2014 Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. The Administration is asking for additional Sales Agents.

Main Success Scenario: 1. The Human Resource will find for additional Sales Agents (applicant)

through email, posting to websites and newspaper. 2. The Human Resource will wait for any response from the post and

contact any applicant for an interview. 3. The Human Resource will have an interview to each applicant and

ask for any related questions to the position the applicant is applying for (as a Sales Agent).

4. The Sales Agent applicant will answer all the questions and it will be rated by the Human Resource if the interview is passing.

5. When the applicant passed the interview, the Human Resource will inform the applicant that he/she has already been hired as additional Sales Agent.


A2: The Human Resource will not contact any of the applicants. 1. The applicant can contact the Human Resource or the company

for updates of the application.

Error Sequences: E1: The Human Resource does not have any announcement for additional Sales Agents in any manner.

1. No one will apply. 2. No additional Sales Agents.

Post Conditions: 1. Additional Sales Agents 2. Training of the newly accepted Sales Agent




Figure 1.3.1.7.2 Activity Diagram: Getting Sales Agents

Narrative for the use case “Compensating Employees” Identification Summary Title: Compensating Employees Summary: This use case allows the Human Resource to compensate all the employees. Actors: Human Resource, Employees Creation Date: January 30, 2014

Logistic Manager

Conduct an

interview

Calls/Informs

the Applicant

Human Resource Applicant

Posts job offerings

for Additional

Sales Agents

Pass Requirements

Apply for the Job

Disregards/Informs

the Applicant

Yes No

Applicant is accepted.




Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. The Employees render fifteen (15) days in the company.

Main Success Scenario: 1. The Human Resource will compute the time that an Employee renders in

fifteen (15) days. 2. The Human Resource will consider all the deductions and bonuses of

the Employees. 3. The Human Resource will need to pass the pay roll to the Top

Management. 4. The Top Management will verify all the things that are listed in the pay

roll. 5. The Top Management will sign the pay roll. 6. The Top Management will return the pay roll to the Human Resource. 7. The Human Resource will directly deposit the wages of the

Employees in the bank.

Alternative Sequences: A1: There is an inaccuracy in the pay roll passed to the Top Management

1. Top Management will not sign the pay roll 2. Top Management will inform the Human Resource about the

inaccuracy 3. Top Management will return the Pay roll to the Human Resource

Error Sequences: E4: The Human Resource does not verify the pay roll to the Top Management.

1. No wages to be deposit in bank. 2. Reject the Human Resource deposit in the bank for wages

purposes. Post Conditions: 1. The Employees will withdraw the wages through ATM.




Figure 1.3.1.7.3 Activity Diagram: Compensating Employees

Passes the pay roll

Computes deductions and

bonuses

Deposit to bank

(Employees‘ wages

Human Resource Top Management

Computes the

employees‘ service

rendered (in hrs)

Checks the pay roll

Pay roll is approved.

No Yes

Signs the Pay roll

Returns the Pay roll

Returns the Pay roll

Informs the Human

Resource about

the Inaccuracy

A

A




Narrative for the use case “Employees Monitoring” Identification Summary Title: Employees Monitoring Summary: This use case allows the Human Resource to monitor all the Employees. Actors: Human Resource, Employees Creation Date: January 30, 2014 Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. The Human Resource will have a background to each Employee. Main Success Scenario: 1. The Human Resource will check the Employee‘s attitude to co-

Employees. 2. The Human Resource will evaluate all the things that the Employee is

doing. 3. The Human Resource will have an interview to each Employee of how

their relationship with other is and the Employee‘s concerns. 4. The Human Resource will do the summary of evaluation of all

employees.


A3: The Human Resource will not apply the interview to all Employees. 1. The Human Resource can ask other Employees about a specific

Employee to be defined.

Error Sequences:

E2: The Human Resource does not administer the fairness in evaluation. 1. The evaluation will turn into favorable Employees only.

Logistic Manager




Post Conditions: 1. There are some Employees that will undergo seminars. 2. The evaluation will be reported to the Top Management.

Figure 1.3.1.7.4 Activity Diagram: Employees Monitoring

Evaluation of the

actions of Employees

Do the summary of

evaluation

Ask each Employee

Human Resource Employee

Check the relationship

in all Employees

Answer all

questions




Figure 1.3.1.7.5Ishikawa Diagram: Employees Monitoring

Narrative for the use case “Hiring Workers” Identification Summary Title: Hiring Workers Summary: This use case allows the Human Resource to hire Applicant. Actors: Human Resource, Employee (applicant) Creation Date: January 30, 2014 Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. The Company has insufficient workers.

Main Success Scenario: 1. The Human Resource will read all the resumes that the Applicants pass. 2. The Human Resource will schedule an interview for Applicants.

Logistic Manager

Inaccurate employee

information (manual

recording)

LENIENT MANAGEMENT

POLICY

Difficulty in collecting

data

Ine

Ine

ffic

ien

t

Em

plo

ye

es

Mo

nito

rin

g

POOR

TECHNOLOGY

LENIENT

WORKERS

Outdated organizational

chart

Employee lacks

initiative Workers assigned


their work




3. The Human Resource will ask and evaluate the Applicant. 4. The Applicant will answer all the questions of the Human Resource. 5. The Human Resource will choose who deserves to be hired in the

company.

Alternative Sequences: A2: The Human Resource will not call of the Applicants.

1. The Human Resource will schedule for some Applicants who can‘t be interview on the given date.

Error Sequences: E4: The Human Resource hires employees whom they do know but those Employees who do not deserve the positions they get.

1. The work of the Employee will fail because of lacking the capacity that someone deserves.

Post Conditions: 1. There are now sufficient Employees.

(See Figure 1.3.1.6.5 Activity Diagram: Hiring Employees on next page.)




Figure 1.3.1.7.5 Activity Diagram: Hiring Employees

Narrative for the Use Case “Training Workers” Identification Summary Title: Training Workers Summary: This use case allows the Trainer to train the new Employees. Actors: Trainer, Employees Creation Date: January 30, 2014 Date of Update: -

Logistic Manager

Conduct an

interview

Calls/Informs

the Applicant


Reviews the

Resumes Passed

by Applicants

Disregards/Informs

the Applicant

Yes No

Applicant is accepted.

Attends the

interview

Reviews applicants‘

performances




Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. The Human Resource will have a budget for the training of the

Employees.

Main Success Scenario: 1. The Trainer will start the training every day for practicing the Employees

for the rules and works in the Company. 2. The Employees will comply with the training.


A1: The Trainer will not give everyday training.

1. The Trainer will give specific time for the trainees to learn all the things to be known about the company for the Trainees to estimate all things in limited time.

Error Sequences: E2: The Trainee (new Employee) did not comply with the trainings.

1. The Trainee will be rejected to be a certified new employee. 2. Use case fails.

Post Conditions:

1. The new Employee can now work in the company. 2. There‘s the up next evaluation of the new Employee.

(See Figure 1.3.1.7.7 Activity Diagram: Training Workers on next page).




Figure 1.3.1.7.7 Activity Diagram: Training Workers

1.3.1.8 Support Activity 4 – TECHNOLOGY Technology can be used in production to reduce cost, to develop new products, increase customer service facility, build up cost effective process, etc. It supports the value chain activities such as research and development, process automation, process design, etc.50

For Switch the Technology are as follows: - Using Lightspeed software for Sales Transactions recording, Sales Forecasting and Inventory Management

(See Figure 1.3.1.8.1 Use Case Diagram: Technology on next page).

50



Conduct training

Comply with the

training




Figure 1.3.1.8.1 Use Case Diagram: Technology

Narrative for the use case “Recording of Sales Transactions” Identification Summary Title: Recording of Sales Transactions Summary: This use case allows the Cashier to record sales transactions. Actors: Cashier, Top Management Creation Date: January 30, 2014 Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. There‘s a purchase and payment activity.

Main Success Scenario: 1. The Cashier will receive the payment of the Customer. 2. The Cashier will record the transaction. 3. The Top Management will see all the transaction


A2: The Cashier has wrong recorded transaction.

Cashier Top Management

Logistic Manager

Purchasing Manager

Sales Transactions recording,

Sales Forecasting and Inventory Management




1. The Manager must void the record. 2. Create a new correct transaction.

Error Sequences: E1: There is no payment activity but there is a transaction.

1. The Manager will reject the transaction recorded. 2. The Cashier will subject to investigation.

Post Conditions: 1. The Cashier cannot edit the record of the transaction. 2. There is a new transaction recorded.

Figure 1.3.1.8.2 Activity Diagram: Recording Sales Transaction

Narrative for the Use Case “Sales Forecasting & Inventory Management” Identification Summary Title: Sales Forecasting & Inventory Management Summary: This use case allows thePurchasing Manager to perform sales forecasting. Actors: Purchasing Manager, Top Management Creation Date: January 30, 2014

Cashier Top Management

Receive the

payment

See the transaction

Record the

transaction

Logistic Manager




Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. The day is either 15th or 30th day of the month before conducting sales

forecasting.

Main Success Scenario: 1. The Purchasing Manager will perform sales forecasting and proceed to

inventories checking. 2. The Purchasing Manager will report it to Top Management 3. The Top Management will be having the feedback about the sales

forecasting.


A2: The Purchasing Manager will report it to Operation Manager. 1. The Operation Manager will be the one to report it to Top

Management.

Error Sequences: E1:ThePurchasing Manager did not perform sales forecasting.

1. There is inaccuracy in ordering products to supplier. 2. The Use case fails.

Post Conditions: 1. The Purchasing Manager will report all the sales transactions formally

and declare the number of products to be ordered.




Figure 1.3.1.8.3 Activity Diagram: Sales Forecasting

1.3.1.9 Support Activity 4 – PROCUREMENT

Activity of the inputs to transform into finished products or services. Procurement adds value by the acquisition of appropriate goods or services at the best price, at the right time, and in the desired place with the desired quality and quantity.51

For Switch the Purchasing is as follow:

- Purchasing order from supplier

51


Purchasing Manager Top Management

Perform sales forecasting and

check inventory

Feedback on sales

forecasting

Report the results of

conducting sales forecasting




Figure 1.3.1.8.1: Use Case Diagram: Purchasing

Narrative for the Use Case “Purchasing Order” Identification Summary Title: Purchasing Order Summary: This use case allows the Purchasing Manager to purchase order from Supplier. Actors: Purchasing Manager, Supplier Creation Date: January 30, 2014 Date of Update: - Version: 1.0 Person in Charge: Cabugao, Surigao, Vega Flow of Events

Preconditions: 1. There is insufficiency from the stocks of the Company.


1. The Purchasing Manager will check the inventory of the Company. 2. The Purchasing Manager will list down the items and its quantities to

be purchase. 3. The Purchasing Manager will prepare the PO Requisition. 4. The Purchasing Manager will pass it to Top Management for

verification.

Purchasing order

Purchasing Manager Supplier

Logistic Manager




5. The Purchasing Manager has received the PO from Top Management. 6. The Purchasing Manager will contact the Supplier for the purchasing

of stocks purposes. 7. The Purchasing will send the PO to the Supplier. 8. The Supplier will receive the PO from Purchasing Manager. 9. The Supplier will respond and set the date for the delivery and

payment. 10. The use case ends successfully.


A1: There‘s no need for the Purchasing Manager to check the inventory. 1. The Purchasing Manager can ask the Stockman about the stocks‘

status.

Error Sequences: E3: There‘s inaccuracy with the PO Requisition.

1. The Top Management will reject it. 2. The use case fails.

E8: There‘s non-compliance with the rules of the Supplier. 1. The PO sent rejected. 2. The use case fails.

Post Conditions: 1. There will be delivery of the purchased items. 2. There will be new transaction from Supplier to the Company.




Figure 1.3.1.9.2 Activity Diagram: Purchasing Order

Purchasing Manager Top Management

Check the

inventory

PO Requisition

verification

Pass the PO

Requisition to the

Top Management

Preparation of PO

Requisition

Supplier

Approve the

PO

Requisition

Reject the PO

Requisition Received the PO

Requisition from

Top

Management

Send the PO to

Supplier Received the PO

Approve the

PO

Requisition

Reject the PO

Requisition

Set date for

Delivery




1.3.1.9 Process vs. Cycle Time

At this point, the team will explain the step by step procedure of the company in sending out the products to the main branch.

1.3.1.9.1 Process Time

Process time is the measure of the total time required to complete the entire business process including the time spent doing the actual work effort, transporting, waiting, storing, duplicating, reviewing and reworking.52

52

http://it.toolbox.com/blogs/enterprise-solutions/measuring-process-times-cycle-times-23167

Time Consumption Activities

20 minutes The stocks are received by Logistic Manager and wait the Logistic Assistant to unload the products from the truck.

15 minutes Logistic Assistant releases all stocks from truck.

45 minutes Check, record and ensure that the products do not have any physical damages.

10 minutes Recheck the voucher check list.

150 minutes The Technician will test all the products discharged from the truck (to assure that the products are readily available to deliver).

15 minutes The Technician will immediately inform the Operation Manager if there are damages (to instantaneously report to the supplier).

10 minutes The Operation Manager reports all the damages discovered.

3 minutes The Supplier will set up a specific date and time for them to pick up the damaged products.

90 minutes The Delivery Man and Logistic Assistant will send out the stocks to the main branch (travel time).

10 minutes The Logistic Assistant will unload the stocks from truck

30 minutes The Branch Manager will receive the check list of products discharged and recheck the products before signing the receive slip.

10 minutes (If there are damaged products) List down all the product number of defective products.

8 minutes Pick up all the damaged products to put inside the truck (to return in the main office).

4 minutes The Logistic Assistant will have the list of defective products and check the return slip.

1 minute Sign the receive slip by the Branch Manager and the return slip will signed by the Logistic Assistant.

90 minutes The Logistic Assistant and Delivery Man will go back to the main office (for the purpose of returning the damaged products seen by the Branch Manager).




Table 1.3.1.9.1 Process Time 1.3.1.9.2 Cycle Time

Cycle time is the measure of the time involved in doing the actual work effort only (i.e., value added tasks), excluding the time spent transporting, waiting, storing, duplicating, reviewing and reworking (i.e., non-value added tasks).53

Table 1.3.1.9.2 Cycle Time

1.3.2 Identification of Strengths and Weaknesses

1.3.2.1 Strengths: Strength 1 (S1): The company gets extra discount from the Supplier.

Figure 1.3.2.1.1 Reference for Strength 154

The products came from the Supplier gets extra discount because of being an authorized reseller and this became strength of the Company because the expenses of the products are being lessened. In order for the Company to obtain the discount there must an arrangement between the supplier and the reseller.

53

http://it.toolbox.com/blogs/enterprise-solutions/measuring-process-times-cycle-times-23167 54


10 minutes The Logistic Assistant will unload all the damaged products.

15 minutes The Logistic Assistant will inform the Operation Manager about the defective products.

10 minutes The Operation Manager will create another report about the additional damaged products.

20 minutes The Operation Manager will record all the information about the products delivered by the supplier.

Time Consumption Activities

40 minutes The stocks are received by Logistic Manager.

20 minutes Record the products released.

120 minutes The Delivery Man and Logistic Assistant will send out the stocks to the main branch and received by the Branch Manager.




Strength (S2): The Company received special training.


The Company received special training and because of this it will be an edge of an authorized reseller. This will be a satisfying strength of the Company and the Customers also. The Company will be having enough knowledge to introduce the reselling products to the Customers. Strength 3 (S3):The location of the branch is better. The Company‘s location is better because most of the outlets are located inside the malls that are really popular in the country like the Alabang Town Center, Marquee Mall and Glorietta. The locations are better because it can be easily seen by the Customers. Strength 4 (S4): The company is an authorized reseller.

56


The company is an authorized seller which proves that they are offering products which came from the original producer and presents strength. It showcases also the full product line and provides outstanding customer value and service.

55

http://apple-vad-cis.asbis.com/info/advantages?&APP_DDM_LANG=en 56

http://www.switch.com.ph/Switch/Support3.html




1.3.2.2 Weaknesses

Weakness 1 (W1): Inaccurate information of employee. There is inaccuracy in Employee‘s information because they don‘t have the system to compile the information of the Employee. In this case, the information of the Employee is not updated and it can‘t be edited because the information was only printed. Weakness 2 (W2): Difficulty in collection of data (HR). There is difficulty in collecting data in HR because the HR needs to search all files which is labor-intensive and some of those collected data are not updated because it is printed and the HR needs to print again just to update the information which is costly. Weakness 3 (W3):Manually record the data (Customer and Employee information). The recording of the information about the Customers is in manual way which is hassle to the Customer and it is an additional cost because they are using pen and paper based. This is an important factor to build relationship with the Customers to make an attachment to satisfy them. Weakness 4 (W4):The Company runs out of stocks.

The Company encountered running out of stocks because they are not aware of their critical level in the inventory which is one of the aspects to consider in satisfying your Customers. This is one of the causes to have an opportunity loss because if the Customer wants to purchase a product in your Company and it is out of stocks, it will go to the Company‘s competitors which offer the wants of the Customer. It only means that this weakness lessens the Customer satisfaction. Weakness 5 (W5):Supplier sends limited stocks. Supplier sends limited stocks causes opportunity loss because the wants of the Customer is not met when the stocks are only limited and they did not reach that level (to get what their want because it is a first come first serve basis). Weakness 6 (W6):There is a single service center. The Switch stores gained popularity among Apple users. They already have eight stores located in different places in Luzon. However, there is only a single service center for all, which is in Alabang Town Center.




Customers far from Alabang Town Center can also come to the Switch stores for assistance, but the service center is still the suggested place to go. It offers free service-focused assistance to cater the needs of the customers. Since, there is only a single service center for all customers, they sometimes have problem catering all their concerns faster. Also, other customers are so far from the place and it will be inconvenient for them to go there. However, there are also times when there are no people at all because of its inconvenient (far) location. Weakness 7 (W7):Inefficient inventory recording and monitoring. The inefficiency of inventory recording and monitoring affects the Company sales in the way that it encounters stocks inadequacy or shortcomings. The Company should have an effective inventory management for accuracy and avoid inconsistency. Weakness 8 (W8):Inaccurate number of stocks to be released. Inaccuracy in releasing stocks is a weakness because it is inexact sometimes with the release slip. This inaccuracy is encountering by the Company because they are manually doing the allocation of stocks. The end result is that other branches do not have new set of stocks delivered recently. Weakness 9 (W9):Can‘t cater urgent need of report. Generating of reports is only done during 15th and 30th day of a month which cannot cater urgent need of inventory reports. They cannot turn out into a fast generation of reports when it‘s not the time of generating reports. Weakness 10 (W10):There is a weak online advertisement. The weak online advertisement is one of the weaknesses of a company because it can decrease the sales. Advertisements are one of the factors to convince or encourage the Customer to buy your products.




1.3.3 IT Resources Inventory

1.3.3.1 Software or Systems Inventory

SOFTWARE SPECIFICATIONS

Microsoft Office for Mac 2011

Microsoft Powerpoint for Mac

Microsoft Word for Mac

Microsoft Excel for Mac

Create visually rich newsletters, brochures, and documents in Publishing Layout view

View, edit, store and share documents online with the Word Web App on Windows Live SkyDrive.*

Conditional Formatting with icons, data bars, and color scales

Create powerful, professional presentations that engage and inspire your audience, and present online as effectively as in person

MAC OS X9 (Operating System)

Built on a rock-solid UNIX foundation

Works with the processor in Mac

Works with the super-responsive track pad in Mac notebooks

Long battery life with advanced power-saving technologies

Optimized for the high-resolution Retina display in the high performance MacBook Pro

Launchpad gives quick access to the full library of apps

Finder lets users browse and organizer files with ease

LightSpeed Software

Offers a visually-dynamics suite of tools that make it easy to click, drag & drop, and track all aspects of a retail business

Fluid interface for high-speed retail operations

Built on the powerful SQL database

Hardware support via USB for cash drawers and both card and barcode readers

Offers a distinctive, powerful retail




management solution for retailers looking to improve front-counter and back office operations57

1.3.3.2 Hardware Inventory

HARDWARE SPECIFICATIONS

The New iMac

All-in-one aluminum and glass enclosure

Quad-core Intel Core i5 or i7

27-inch (diagonal) LED-backlit widescreen display

Apple Wireless Keyboard and Magic Mouse or Magic Trackpad

Up to 3.4 GHz quad-core Intel Core i% processor or 3.5GHz quad-core Intel Core i7

Up to 32GB memory

1TB or 3TB hard drive; 1TB or 3TB Fusion Drive; or up to 1TB flash storage

NVIDIA GeForce GT 755M, GTX 775M, or GTX 780M graphics processor

iPhone 5S

A7 chip

a Touch ID fingerprint identity sensor

ultrafast LTE wireless

iSight camera with a larger 8MP sensor

iOS7 as operating system.

57

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HP Laser Jet Pro 400 color Printer M451dn (CE957A)

HP ePrint capability

1 Hi-Speed USB 2.0 port 1

Fast Ethernet 10/100

Standard Connectivity: BaseTX network port

Print speed: up to 20 ppm

Up to 40,000 pages duty cycle per month

Energy Star qualified and EPEAT Bronze

Table 1.3.3.2 Hardware Inventory




1.3.3.3 Existing Network Diagram

Figure 1.3.3.3 Existing Network Diagram of SW!TCH




1.4 Analysis Conclusions

1.4.1 SWOT Analysis

Opportunities O1: New Entrants have no Access to the only Distribution Channel O2: Supplier Carries Good Reputation O3: Customers‘ Loyalty to the Brand O4: Increasing number of Mobirati Customers

Threats T1: Customer-focused Competitors T2: Substitute that are readily available T3: Substitutes that are attractively priced T4: Supplies are Major Input in the Industry T5: The Company has seven (7) direct competitors

Strengths S1: The Company gets extra discount from the Supplier S2: The Company received special training S3: The location of the branch is better S4: The Company is an authorized reseller S5: The Company has a Light Speed software

Offer more promotions to attract the Customers to buy (S3 – O4)

Offer free customer service (S2 – O3)

Emphasize the Company‘s name and at the same time the Supplier‘s name which attracts Customer through branding (S4 – O1, O2)

Offer discounts to Customer who wants to order in bulk (S1 – T1, T4, T5)

Analyze historical data of inventory (S3 – T1, T2)

Maintain and improve the location of branches(S1, S3, S4 – T1, T2, T4)

Weaknesses W1: Inaccurate information of employee W2: Difficulty in collection of data (HR) W3: Manually record the data (Customer & Employee information) W4: The Company runs out of stocks W5: Supplier sends limited of stocks W6: Single service center W7: Inefficient inventory recording and monitoring

Improve inventory management (W4, W5, W7, W8 – O3, O4)

Perform data management (W1, W2, W3 - O4)

Add service center (W6 – O2, O3, O4)

Create an Inventory forecasting system (W4, W5 – O4)

Generate reports (W2, W4, W9 – O3, O4)

Increase advertising effort online for potential customer (W10 – T1, T4, T5)

Offer best deals with discountsto loyal Customers (W3, W6 – T1, T2, T3, T4, T5)

Provide bonus peripherals or accessories (W4, W5, T1, T2, T3, T4, T5)




W8: Inaccurate number of stocks to be released W9: Can‘t cater urgent need of inventory reports W10: Weak advertisement online

Table 1.4.1 SWOT Analysis of SW!TCH

1.4.2 Identified Strategic Business Problems / Issues and Opportunities

The following listed below are the SW!TCH business problems or issues and opportunities which are the factors to consider for the team to come up with solutions and these are for the benefit of the company to have an edge over its competitors. The strategic problems, issues, and/or opportunities are based on the SWOT Matrix:

1.4.2.1 Strategic Business Problems / Issues

Opportunity loss when Customers get disappointed when

no stocks are available

With the increasing demand for the products, then there will also be a possibility to have an increase on potential customers. In having these increased potential customers, there will be opportunity loss because of not satisfying the customer especially when the customers will buy a product, but there are no stocks. The customer will leave the store and it will be considered as an opportunity loss.

Cannot accommodate all customers because there is only

single service center

With only one service center, all the customers‘ concerns cannot accommodate easily. All customer problems and issues about the purchased products cannot be assisted in one service center. In not accommodating all customers it will became another opportunity loss for the company.

Diversion of customer preferences to substitutes

The customers easily divert to substitutes because the company cannot have their wants because of running out of stocks and limitation of ordering number of stocks to the supplier.




Shortage in available supplies Due to inefficient inventory recording and monitoring supplies, the shortage in available supplies leads to shift their customers to their competitors which mean there will be a loss on their sales. There will be a decrease on their loyal customer also. The company runs out of stocks which cannot accommodate all customers‘ wants.

Delays in deploying data The Human Resource Personnel has a copy of employees‘ information but it does not have the employee management system. This makes the Human Resource Personnel to encounter difficulties, error in having the accurate information of each employee and slow processing of deploying data.

Inaccurate Information This affects the information about the employees of the company because it conducts inaccuracy or not updated information which was gathered before being an employee of the company.

Incorrect assigning of Employees in doing the duties and responsibilities This affects the duties and responsibilities of all employees. It also affects the communication in the company because there is inaccuracy of the organizational chart. The HR Personnel can do mistake in assigning tasks.

Unproductive time with customers who forgot warranty terms

Not all customers are willing or ready to pay for services offered by the company. Therefore, having customers go to the service center to avail of services having overdue warranty, but no intention to pay for the service is unproductive time for the employees. Instead of offering services to those people who are entitled of warranty and those who are willing to pay, their attention will be diverted to those customers.

Complaints from customers impatient of waiting for replacement of products

There is a service that offers replacement of products under warranty when proven damaged not due by customers. Impatience becomes the result when replacement is needed, but there is a problem in the inventory.




Unable to disseminate information of upcoming training

and events

Due to manual posting of announcements, the employees are not aware of upcoming events happening in the company. Trainings of employees are effective yet only few of them attend it because of inaccurate and limited information they gain.

Misplaced Information

Due to manual compilation of information about all employees, the HR misplaces some of the records collected. From this, it might cause to inaccuracy of information.

1.4.2.2 Strategic Business Opportunities

Offer more promotions to attract the Customers to buy(S3 – O4)

The Customers is likely having inclination with promotions in what they are purchasing and these offerings are attractions to them. Customers preferred some add-ons on their purchased product for them to feel that the company goes after them. And that feeling from Customers can turn into loyalty and refer the business to others which can lessen the advertising cost. Offering more promotions are attractions to Customers to buy.

Offer free customer service (S2 – O3) In fact the company gets free training; they can apply that knowledge acquired from the training through solving or responding from the concerns of the Customer on technology and products‘ purchased from the company. This can project into a Customer Relationship Management which tied up the relation between the customer and the company itself. The Supplier carries good reputation globally that is why it can influence the Customer to choose products from the Company (reseller) and offer free service for them to get loyal Customers and to return in the same company which gave satisfaction to them.

Emphasize the Company’s name and at the same time the

Supplier’s name which attracts Customer through branding (S4 – O1, O2)

Branding in the eyes of the Customers attract them to purchase the company‘s products. The brand influences the selection of the Customer in purchasing products. It is also a proof that the Customer trusts the company and the products produced by them. This trust




comes up with the loyalty also of the Customer because they will always purchase the products from the same company and if it is already proven that the product is composed of high quality parts. The branding helps to increase sales of the company because the Customer gets easily attracted to the brand of the product. The new entrants have no access to the only distribution channel unless they will be able to be authorized resellers.

Offer discounts to Customer who wants to order in bulk (S1 – T1, T4, T5)

Aside from discounts to be given to loyal customers, one of the sections of customers that contribute a lot to the revenue of the company is the ones who purchase bulk orders. It gives them a high bargaining power, which is the reason why the company must exert more effort to retain them. The company should make ways to retain good relationship with them and keep them as customers.

Analyze historical data of inventory (S3 – T1, T2)

One of the problems that should be addressed in the company is their inventory management system. Recording historical data of the inventory will help them see the trends that are also connected with sales. As a result, they may be able to know when sales will increase or decrease. And with these changes to be observed, they will also be able to have a wiser decision making in when and how many the purchasing department will have to order from the suppliers.

Maintain and improve the location of branches(S1, S3, S4 – T1,

T2, T4) Accessibility of products is one of the main factors to consider in order for a customer to buy. Therefore, the location of the branches should be decided wisely. The success of each branch greatly relies on this factor. In order to make a successful expansion like opening more branches, the location should be taken consideration because it will probably imply how many potential customers are there for the said branch.




PART II: INFORMATION SYSTEM PROJECT FEASIBILITY ANALYSIS

2.1 Information Systems (IS) Project Options

2.1.1 IS Project #1 – Customer Relationship Management

Description The system as defined by BusinessBalls.com is concerned with the relationship between the organization and its customers. Customers are the lifeblood of any organization be it a global corporation with thousands of employees and a multi-billion turnover, or a sole trader with a handful of regular customers.58 The organization and the customers both have sets of conditions to consider when building the relationship, such as wants and needs of both parties;

organizations need to make a profit to survive and grow

customers want good service, a quality product and an acceptable price59

CRM systems are used in the same way to manage business contacts, clients, contract wins and sales leads. Customer relationship management solutions provide the company with the customer business data to help them provide services or products that the customers want to provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and better understand who your customers are (Webopedia).60

With each new advance in technology—especially the proliferation of self-service channels like the Web and smartphones, customer relationships is being managed electronically. Many aspects of CRM relies heavily on technology; however the strategies and processes of a good CRM system will collect, manage and link information about the customer with the goal of letting you market and sell services effectively(Webopedia).61

The project envisions to:

Increase the customer loyalty Attract more customers e.g. Mobirati, Social Connectors, Pragmatic

Adopters, Basic Planners, Technological Professionals, etc.

Objectives To give the customers product satisfaction To increase the number of customers To increase profitability To reduce customer management costs To divert the interest of customers not to buy substitutes

58

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http://www.businessballs.com/crmcustomerrelationshipmanagement.htm 60

http://www.webopedia.com/TERM/C/CRM.html 61

http://www.webopedia.com/TERM/C/CRM.html

http://www.webopedia.com/TERM/W/World_Wide_Web.html






2.1.1.1 Problems / Issues / Opportunities Addressed

The problem of …the current systemof SW!TCH with regards to the customersare as follows:



Divert customers‘ preferences to substitutes

Which affects …the SW!TCH declining number of target market and lower customer loyalty

The impact of which is Customers demand high discounts

Customers switch to substitutes

Customers go to other competitors of SW!TCH

Competitors take it an opportunity to sell products that have same features with SW!TCH but of lower prices

A successful solution would

…be to develop a Customer Relationship Management System that would provide...

customers‘ product satisfaction

a system that would automate notifications for reservation due date of customers

a system that will notify customers of their warranty status

a system that would notify the admin on products critical level

a system that would update the customers on the available/new products, and best deals it offer

a system that would divert the interest of customers not to buy substitutes

a system that will enable customers to set an appointment schedule whenever they have concerns or services they need

a system that would allow the customers to reserve products online

a system that will keep historical data of loyal customers

Table2.1.1.1 Problems/Issues/Opportunities Addressed through IS Project #1




2.1.1.2 Product Positioning Statement – IS Project #1

For Admin and Customers

Who Needs to have a system that would provide …

customers‘ product satisfaction

a system that would automate notifications for reservation due date of customers

a system that will notify customers of their warranty status

a system that would notify the admin on products critical level

a system that would update the customers on the available/new products, and best deals it offer

a system that would divert the interest of customers not to buy substitutes

a system that will enable customers to set an appointment schedule whenever they have concerns or services they need

a system that would allow the customers to reserve products online

a system that will keep historical data of loyal customers

The Customer Relationship Management System

Is a web based system concerned with the relationship between the organization and its customers since customers are the lifeblood of any organization be it a global corporation with thousands of employees and a multi-billion turnover, or a sole trader with a handful of regular customers.

That Has the functionality to have a …

Customer Module

Admin Module

Products Module

Reports Module

Unlike The current situation of SW!TCH …



Divert customers‘ preferences to substitutes




Our product Makes this process more effective and efficient by: 1. Having a system that would automate

notifications for reservation due date of customers

2. Having a system that will notify customers of their warranty status

3. Having a system that would notify the admin on products critical level

4. Providing user-friendly interface screens. 5. Providing an automated way of viewing

updates and available products online 6. Providing forms and dialog boxes in

products reservation of customers 7. Retrieving historical data of loyal

customers 8. Displaying a dialog box that will notify

sales personnel if a loyal customer can already avail discounts/or gifts for the purpose of retaining loyal customers to the company

9. Showing lists of products with its descriptions and prices

10. Computing and displaying the total price of the products being reserved

11. Generating reports/or summary of reserved products

12. Providing Appointment Schedule Form and show the details of time and place of meeting

Table 2.1.1.2 Product Positioning Statement – IS Project #1

2.1.1.3 Functions& Features Identification

FUNCTIONS AND FEATURES – Project Option #1

FUNCTION 1 Customer Module

FEATURE 1 The system shall have a registration form for the customers to access the system. FEATURE 2 The system shall be able to classify user types FEATURE 3 The system will have a reservation form that will




allow customers to reserve FEATURE 4 The system shall display a dialog box validating the customers‘ reservation FEATURE 5 The system will have a dialog box which displays the terms and agreements in reserving products FEATURE 6 The system will be able to compute and display the total price of the products being reserved FEATURE 7 The system shall generate summary of reserved products FEATURE 8 The system will have an Appointment Schedule Form wherein customers can schedule appointment with regards to their concerns or services FEATURE 9 The system shall display a dialog box in confirming the appointment schedule FEATURE 10 The system shall have a forum form that will help other potential customers to get information of products feedbacks and reviews from the other customers FEATURE 11 The system will automate notifications for reservation due date of customers FEATURE 12 The system will notify customers of their warranty status

FUNCTION 2 Products Module

FEATURE 1 The system will be able to show all the available and latest products of the company and its price FEATURE 2 The system will show lists of products with its




Table 2.1.1.2 Functions & Features Identification

descriptions and prices FEATURE 3 The system shall have an ―Add To Cart‖ buttons for product reservation FEATURE 4 The system shall have an Add and Update buttons in case admin will have updates on certain products

FUNCTION 3 Admin Module

FEATURE 1 The system shall be able to show summary of customers‘ reserved product FEATURE 2 The system shall have an approved, paid, pending, and reject buttons to help Admin in decisions of approvals FEATURE 3 Disable or remove products that are not available FEATURE 4 The system will allow the administrator to view and monitor inventories reserved FEATURE 5 The system notify the admin on products critical level

FUNCTION 4 Reports Module

FEATURE 1 The system shall be able to show the Master Data of Reserved Products, Loyal Customers, Rejected Reserve Products, Overdue Reserve Products, Rejected Orders, and Approved Reserve Products




2.1.1.4 Costs and Benefits Projection

2.1.1.4.1 Quantitative Benefits

Quantitative benefits gives the overview and the estimated costs and benefits of the proposed system—Customer Relationship Management System. This includes the Payback Period, Return on Investment (ROI) and the Net Present Value (NPV) of the proposed system. The following figures and tables are the explanations and computations of the team.

(See Figure 2.1.1.4.1 Cost Benefit Analysis – CRM on next page.)

Figure 2.1.1.4.1 Quantitative Benefits – Cost Benefit Analysis Model – CRM




Figure 2.1.1.4.1 Total Cost of Ownership – CRM

Figure 2.1.1.4.1 IT Infrastructure Model – CRM




2.1.1.4.2 Qualitative Benefits

Customer Information Management Automation

The proposed system will automate the operations of the company with regards to their valued/loyal customers. The information will be easily recorded to the database and would allow the admin to check and track reserved products of the customers.

Accessible Product Information

Instead of direct inquiry of the customers to each branch, they will now be able to access through the online website. Customers can now save time in going to branches. The company also benefits from it because they will save time to entertain the customers about their concerns.

Fast Delivery of Information

Customers will be informed in few clicks of their fingers. The company‘s update of latest and available products, best deals, etc. will be grasped easily by the customers by just checking the website in their homes.

Time Management Improvement

Completion of transaction will be reduced during the sales process. Inquiring and reserving will be made possible through the proposed system.

Strengthened Customer Satisfaction

The proposed system gives convenience to both stakeholders especially to the customers. They don‘t need to spend much time and money just to check and inquire about the products in branches.

2.1.2 IS Project #2 – Supply Chain Management

Description The Supply Chain Management is the process of managing stocks and/or products that are being ordered from the suppliers, as well as the effects of moving out of products from the inventory to the customers. The proposed system will help track the inventory and other factors that affects it like selling products to customers. This system will provide and maintain better operations of the business.




Vision

The project envisions to:

Provide accurate inventory information Prevent or lessen instances of supply shortage Harmonious business operations Build better relationships between the company and customers

Objectives

Provide Inventory Reports Prevent or Lessen errors in the inventory Decrease operating expenses through higher probability of ordering

higher amount of products Minimize time consumption in checking inventory supplies Provide inventory for returned products

2.1.2.1 Problems / Issues / Opportunities Addressed

The problem of …the inventory operations

Opportunity Loss when Customers get disappointed when no stocks are available

Diversion of customer preferences to substitutes

Unproductive time with customers who forgot warranty terms

Complaints from customers impatient of waiting for replacement of products

Which affects

…the branch operations (selling products to customers)

The impact of which are

Stoppage of selling operations of products

Less revenue

Dissatisfaction of customers


…be to develop Supply Management System...




a system that would provide charted report of products released from inventory

a system that will prompt notifications to the administrator(s)/purchasing committer if a product‘s quantity reached its critical level for them to prevent shortage of supplies

a system that will provide a separate report on products that reached critical level for purchasing committee

a system that will track returned products for faster information processing when returning products to the supplier

a system that will provide a separate report on returned products

a system that allows administrators/purchasing committee to fill and send Purchase Order

a system that automatically send electronic mail to supplier for sending Purchase Order

a system that will allow the purchasing committee to track purchased products

Table 2.1.2.1 Table of Problem/Issues/Opportunities Addressed through IS Project #2

2.1.2.2 Product Positioning Statement

For Purchasing Committee/Department

Who Needs to have a system that would provide …

a more detailed inventory system

reports for in and out of products in the inventory




notifications as reminders for administrators/purchasing committee that it is already needed to order from the suppliers

The Supply Chain Management System

Is a web-based system that will track inventory and allow the purchasing committee to send automated purchase orders to the supplier

That Has the functionality to have a …

Inventory Management

Orders Module

Promotion/Marketing Module

Unlike The current situation of SW!TCH that

Has an inventory that runs out of stocks

Has an inefficient inventory recording and monitoring

Misleading inventory of returned products

Our product Makes this process more effective and efficient by: 1. Providing user-friendly interface screens. 2. Providing an automated way of viewing and managing the inventory system 3. Providing notifications for better decision making

Table 2.1.2.2 Product Positioning

2.1.2.3 Features and Functionalities

FEATURES AND FUNCTIONALITIES – IS PROJECT #2

FUNCTION 1 Inventory Management

FEATURE 1 Allow the purchasing committee to track purchased products from the suppliers FEATURE 2 Allow the purchasing committee to track products for replacement FEATURE 3 The system will automatically prompt notifications about products reaching critical level to the purchasing committee FEATURE 4 The system will generate report on quantity and




status of products in the inventory FEATURE 5 The system will generate a separate report on the list of products that reached critical level upon purchasing committee‘s command

FUNCTION 2 Order Module

FEATURE 1 Allow the purchasing committee to fill Purchase Order form FEATURE 2 Allow the purchasing committee to send Purchase Order through electronic mail to the supplier FEATURE 3 Allow the purchasing committee to see the status of the orders (e.g. received, pending) FEATURE 4 Allow the purchasing committee to track released products to the customers

FUNCTION 2 Promotion/Marketing Module

FEATURE 1 Allow purchasing committee to separate inventory for promotional products FEATURE 2 Allow purchasing committee to track promotional products

Table 2.1.2.2 Features &Functionalities – IS Project #2




2.1.2.4 Costs and Benefits Projection

2.1.2.4.1 Quantitative Benefits

This provides the estimated costs and benefits of the second proposed system—Supply Chain Management System. This includes the Payback Period, Return on Investment (ROI) and the Net Present Value (NPV) of the proposed system. Shown below are the tables and figures that explain and provide the calculations of the team.

Figure 2.1.2.4.1 Cost Benefit Analysis - SCM




Figure 2.1.2.4.1 Total Cost of Ownership – SCM

Figure 2.1.2.4.1 IT lnfrastructure Model - SCM




2.1.2.4.2 Qualitative Benefits

Accurate Inventory Management for Retuned Products

Apple Inc. is now offering a free of charge replacement of defective products to the customers. These are made by the resellers through their service centers. They do not repair, but they replace the returned products once their proven to be really factory defective. By replacing products, another inventory is created for these said to be defective products. However, these products shouldn‘t be joined together with other products that aren‘t released from the original inventory yet – meaning, the products that are still ready for selling. Having an automated inventory for these returned products will make the service center‘s inventory more accurate.

Purchase Order Management

This system provides notifications whenever a product reaches its critical level. In this way, the person in charge (Logistics) can easily and automatically track for products that are needed to be ordered.

This will prevent shortage of products in the inventory. It will also lessen the time allotted in checking the inventory.

Improved Sales

The proposed system will diminish the probability of shortage of products in the inventory. Therefore, operations will be prevented from stopping, which results to continuous sales. Loss due to shortage of products will be avoided.

Improved Customer Satisfaction As the level of rivalry among competitors ascend, the level of bargaining power of customers will also change in a parallel way. Due to high rivalry among competitors (See 1.2.2.1), the bargaining power of customers is also high. With this is mind, the companies should exert more effort in satisfying their customers for them to gain and maintain a high sum of market share.




Dissatisfaction of customers happens when there is(are) a product(s) that are not available for selling, which happens when there is a shortage of supplies in the inventory. Therefore, working or improving the inventory system is a great way to also improve the customers‘ satisfaction.

Maximize Inventory Capacity Space is also one of the important factors to consider in an inventory. It affects the number of supplies it can occupy.

Easily and accurately knowing the quantity of products will help the person in charge to know if there is still any space for more supplies. This is especially importance during peak seasons, where in there is a great demand of products.

Another thing is, by way of decreasing the probability of shortage in supplies, the system will help maximize the inventory.

Improved Decision Making

With this system, the company can easily keep track of their supplies. With this as strength, they can improve their decision making, especially in terms of ordering products from the suppliers.

Prevent Misinterpretation of Inventory Data

A separate inventory for returned supplies will be a lot helpful for the inventory personnel. It will prevent the person in charge to be confused about the products that are in the inventory.

2.1.3 IS Project #3 – Human Resource Information System

Description

Human Resource Information System is basically an intersection of human resources and information technology through an HR software solution. This allows HR activities and processes to occur electronically. Through the efficiency advantages conferred by an HRIS, an HR administrator can obtain many hours of his or her day back instead of spending these hours dealing with non-strategic, mundane tasks required to run the administrative-side of HR.




Similarly, an HRIS allows employees to exchange information with greater ease and the need for paper through the provision of a single location for announcements, external web links, and company policies. This location is designed to be centralized and accessed easily from anywhere within the company, which also serves to reduce redundancy within the organization.62 Vision Provide a desktop-based collection of information which is an example of

having a management in a smart way All data are able to maintain the integrity.

Objectives All data are stored in different tables which avoid inconsistency and

redundancy. The system should be fast and reliable. Ease of deployment and collection of data. Maximization of accuracy of information. 2.1.3.1 Problems / Issues / Opportunities Addressed

The problem of …the current inventory management system of SW!TCH are as follows:

Inaccurate information

Unable to disseminate information of upcoming training and events

Incorrect assigning of employee in doing duties and responsibilities

Delays in deploying data

Misplaced Information

Which affects SW!TCH - its human resources

The impact of which is Unmotivated Employees

Poor performance in work


be to develop Human Resource Information System that would provide the following benefits:

The updating of information is faster (no delays)

Easier monitoring of the employees through searching the past records and interviews of each employee

Accurate information

An easier way of tracking employee attendance and employee performance

The HRIS will provide a comprehensive

62

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information database that will have employee‘s personal information regarding their skills, training programs taken, their feedbacks regarding the company as well as their concerns and their performance.

Fast deployment of data

Figure 2.1.3.1 Problems / Issues / Opportunities Addressed

2.1.3.2 Product Positioning Statement – Project Option #3

For The human resources of SW!TCH

Who Needs to have a system that…

will track the overall employee performance in the effective way possible to eliminate the current problems in the human resources

increase the productivity

The Human Resource Information System

Is a desktop based system that tracks the record of the employee‘s overall performance

That Has the functionality to

Effectively and efficiently consolidate all the data from the different HR modules that would be used by the company to come up with reports/notifications that are vital to the company‘s human resources and decision making.

Compile all the company-related documents such as employee handbooks, emergency evacuation procedures, and safety guidelines.

Unlike The current way of

Tracking employees that is so inefficient leading to unmotivated employees and thus affects the competitive position of the company in relation to their competitors

Collection of data manually (pen and paper) that is so ineffective and leads to inaccuracy of data and tattered look.

Our product Makes this process much more effective and efficient by: 13. Providing user-friendly interface screens. 14. Providing an automated way of viewing

information regarding the performance of the employee.

http://humanresources.about.com/od/glossarye/g/hand_book.htm






15. Providing instant access on data needed with the utilization of computer networking (with certain restrictions).

16. Providing embedded data validation routines to ensure data integrity.

17. Providing database technology to efficiently store data and retrieve data.

18. Providing different reports regarding the employees and other needed reports of the management regarding performance and etc.

2.1.3.2 Product Positioning Statement – Project Option #3

2.1.3.3 Functionalities & Features Identification – Project Option #3

FEATURES & FUNCTIONALITIES – IS Project #2

FUNCTIONS FEATURES

FUNCTION 1 Account Module

FEATURE 1 The system will provide a module for creating accounts for employees, and admin. FEATURE 2 The system will allow admin and employee to edit their profile. FEATURE 3 The system will update user accounts and passwords of admin and employees.

FUNCTION 2 User-level access in the system

FEATURE 1 The system will be able to classify the user type. FEATURE 2 The system will have an admin and employee user-id and password feature to access the system.


FEATURE 1 The system will be able to review all the Employee‘s performance, skills and jobs




FEATURE 2 The system will be able to approve/disapprove all the employee and admin registration FEATURE 3 The system will be able to generate reports of employees‘ performances FEATURE 4 The system has an advanced search to easily track the information of each employee FEATURE 5 The system will automatically notify the admin if there is updated resume FEATURE 6 The system will automatically notify the admin if there is/are candidate(s) for promotion FEATURE 7 The system will be enable the admin to input set of standards FEATURE 8 Automatically update the resume whenever there is a training attended by the employee FEATURE 9 Automatically update the training for performance appraisal

FUNCTION 5 Employee Module

FEATURE 1 The system will be able to view the list of trainings attended by the employee FEATURE 2 The system will be able to view the attendance of the employee FEATURE 3




Figure 2.1.3.3 Functionalities & Features Identification – Project Option #3

The system will automatically update the resume whenever the employee edits profile. FEATURE 4 The system will be automatically notify the employees that are qualified or candidate for promotion FEATURE 5 The system will be automatically notify the employee that needs to attend a specific training including the time and date of it. FEATURE 6 The system will be automatically notify the employee if there are upcoming events FEATURE 10 Automatically notify the employee if there is/are training(s) required in order to go next level




2.1.3.4 Cost and Benefit Projection 2.1.3.4.1 Quantitative Benefits

Figure 2.1.3.4.1 Cost Benefit Analysis – HRIS

Figure 2.1.3.4.1 Total Cost of Ownership - HRIS




Figure 2.1.3.4.1 IT Infrastructure Model - HRIS 2.1.3.4.2 Qualitative Benefits

Qualitative benefits are the benefits that the company gets from the system and it will help to be able for them to have better data management especially in gathering data from the employees.

Improved Monitoring Employees

The proposed HR Information system is focusing on maximizing the management of employees especially tracking the punctuality and absenteeism of the employee.

Improved generation of reports

The system will be able to generate better, faster and accurate reports of an employee especially employee‘s productivity in the company. This will track the employee‘s performances during work hours.




Improved recording of Employee’s information

The employee‘s information can be easily edited and updated through the using of the system which only means it will lessen the time consumption. The system helps to track quickly the employee‘s information by the search box.

Improved Employee relation

The Employee will be able to voice out their opinions by means of having the Feedback module. This will help the company to build healthy relationship and having the assessment of their concerns.

Accurate data of Applicants and Employees

Since the Applicants or the Employee is the one who will put the input inthe system there will be no more problem in inaccuracy matter because the system has the uniformed font and font size. The uniformity means that there is no way for an HR to get wrong in having the gathered data.

2.2 Project Selection Criteria

This part includes the areas to be considered when the team selected a priority project. Below are the criteria.

Criteria Weight

Feasibility

Technical 15%

Operational 20%

Economic 15%

Financial Payback 15%

Beneficiaries (Internal and External) 15%

Alignment with Vision and Mission 10%

Project Risk Factor 10%

Table 2.2 Project Selection Criteria

2.2.1 Feasibility (Technical, Operational, Economic)

Technical Feasibility

This part discusses the availability of resources that the system requires for it to be implemented such as Hardware, Software, Database Storage, etc.




Project Option #1 – Customer RelationshipManagement System

Customer Relationship Management System is a web based system that has the potential to acquire future customers through the use of emerging technologies that are widely being used in business nowadays. The proposal is a web based application that will work and run through Macintosh IOS and will use SQL Management Studio as its Database Storage whereinthe team required the company to purchase the mentioned Hardware, Software, Database and Networking Infrastructure for the benefit of the company.

Project Option #2 – Supply Chain Management System Supply Chain Management is a web based system that provides new ways to record not only the inventory that contains the products that are ready for selling, but also the products that are returned through the new feature of the company‘s service center, which offers replacement of defective products, instead of repair. It will be specialized for the usage using Macintosh‘ iOS, but since it is a web-based, it can be used through Window‘s based devices, whenever preferred. It will also use SQL Management Studio as Database Storage. Project Option #3 – Human Resource Information System

Human Resource Information System is a web based system that has the capability to capture information accurately through the use of the technologies is trending in the business industry. The proposal is a web based application that will work and run through Macintosh IOS and will use SQL Management Studio as its Database Storage where in the team required the company to purchase the mentioned Hardware, Software, Database and Networking Infrastructure for the improvement of the company.

TECHNICAL

Rating Description

5 All the resources required are available for the implementation of the system.

4 Most of the resourcesrequired for the implementation of the system are available.

3 Some of the resources required for the implementation of the system are available.

2 Most of the resources required for the implementation of the system are not available.

1 All the resources required for the implementation of the system are totally not available

Table 2.2.1 Feasibility - Technical




Operational Feasibility

This part discusseson how efficient and how effective will the proposed system affect the operation of the company and how it will help in improving the company‘s operation. This also includes on how the users of the system will adapt to it. Project Option #1 – Customer Relationship Management System Customer Relationship Management System has the capability to improve marketing/selling efforts with the use of e-advertisement. The system can process online ordering of product, provide existing and new product information and business information, and provides technical support that is more accessible to the public. Project Option #2 – Supply Chain Management system Supply Chain Management System has the capability to utilize the inventory by proper and detailed inventory system. This system will be able to record inventory of both products available for selling and those products that are returned due to failure in comprehending to the features the products are indicated to have. Project Option #3 – Human Resource Information System Human Resource Information System has the potential to improve the data management of the employees. The system can acquire all the information needed and it can edit and update data. It provides accurate information and can easily track the records the HR wants to find.

OPERATIONAL

Rating Description

5 The system brings to the company great benefits.

4 The system brings to the company above-average benefits.

3 The system brings to the companyaverage benefits.

2 The system brings to the company low benefits.

1 The system brings to the company no benefits at all.

Table 2.2.1 Feasibility - Operational

Economical Feasibility

This part discusses onhow the company will respond to the cost of the proposed System as well as to the maintenance cost of the system all throughout the implementation.




Project Option #1 – Customer Relationship Management system

In the event of implementing the proposed system — Customer Relationship Management System, the company needs an initial investment of ₱190,538.25. The company‘s revenue may rise due to the easier access of the business via web or internet. It would also decrease the company‘s operating expenses and improve the sales order processes of the business. With the system that is available in the website, the company can attract more potential customer e.g. Mobirati, Social Connectors, Pragmatic Adopters, Basic Planners, Technological Professionals, etc. It will also provide customer online technical supports instead of sending a sales agent or technician that would took time and may also incur expenses.

Project Option #2 – Supply Chain Management System

In order to implement the second proposed system – Supply Chain Management System – the company needs an initial investment of ₱211,533.25. However, through using this proposed system, the company will be able to increase revenue and at the same time, decrease their cost of goods sold according to an Oracle Whitepaper, entitled Creating Profitable, Visible and Complaint Value Chains. These changes will lead to an increase of profitability of the company.

Project Option #3 – Human Resource Information System

Human Resource Information System may help the company to decrease the expenses they have especially the manual printing of data of employees. When the printed data is incorrect, the HR needs to print it again which is an additional cost to the company. The good thing in the system there will be an edit and update button to make the accurate and reliable. There is no need of printing of data unless it will be pass to the Top Management. This would help the system to decrease the expenses of the company in printing cost matter.

ECONOMICAL

Rating Description

5 The cost is outperformed by its benefits.

4 The cost is acceptable and there are several benefits.

3 The cost is equivalent to its benefits.

2 The cost is high and there are few benefits

1 The cost is high and there are no benefits.

Table 2.2.1 Feasibility - Economical




2.2.2 Financial Payback

This part determines the period of returns of the money invested by the company. Below are the figures that show the financial payback of the system to SW!TCH. Project Option #1 – Customer Relationship Management System

Table 2.2.2 Financial Payback - CRM Project Option #2 – Supply Chain Management System

Table 2.2.2 Financial Payback –SCM\

Table 2.2.2 Financial Payback - SCM Project Option #3 – Human Resource Information System

Table 2.2.2 Financial Payback - HRIS

FINANCIAL PAYBACK

Rating Description

5 Payback is realized within a year.

4 Payback is realized within 2 years

3 Payback is realized within 3 years.

2 Payback is realized within 4

1 Payback is realized within 5 years.

Table 2.2.2 Financial Payback




2.2.3 Beneficiaries (Internal and External)

These are the entities that are inside and outside of the company. Project Option #1 – Customer Relationship Management System

The proposed system – Customer Relationship Management will be designed as a user friendly interface and would allow the users which are the customers and the sales agents to interact with each other. Prior to that, sales agents could also improve the customer relationship and generate order/reserve reports well. As to the part of the customers, the system shall give them updates on the new products offered by the company through a website.

External Beneficiaries

The entity that is considered as external beneficiaries of this system is the customers. These are the people that do not belong to the company but is affected with whatever system the company will implement.

Internal Beneficiaries

As to the internal beneficiaries, this specifies the sales agents that are employees of the company. They are considered as beneficiariesofthe system because they will also use the system if implemented.

Project Option #2 – Supply Chain Management System External Beneficiaries

The stakeholder that is considered as external beneficiaries of the second proposed system is the customers. The Supply Chain Management System will enhance the inventory system of the firm. It will therefore improve the operations of the business because it will help prevent shortage of supplies.


The internal beneficiaries of this proposed system are the employees in the Purchasing Department of the firm. It will improve their productivity as the purchasing force of the company because it will enhance the probability of maximization of utilities and resources for better condition of the inventory.


The proposed system – Human Resource Information System is the system to help the company to gather data faster. The ease of deploying the data is easier than the manual collection of data through pen and paper.




External Beneficiaries

The external beneficiaries of the proposed system are the Employees who are affected of the implemented system. They are the one who will be giving the input like giving their personal information to the system.


The internal beneficiary of the proposed system is the HR Personnel who‘s assigned to use the implemented system.

BENEFICIARIES

Rating Description

5 The user will highly get benefits from the system.

4 The user will get almost all the benefits from the system.

3 The user will get moderate advantages from the system.

2 The user will get small advantages from the system.

1 The user will get disadvantages from the system.

Table 2.2.3 Beneficiaries

2.2.4 Alignment with Vision and Mission

Vision and mission state what the company would like to achieve in the future. Thus, the company‘s development is based on their vision and mission statements which are stated in first chapter of the project. This part determines the alignment of the proposed system with the vision and mission of the company. Project Option #1 – Customer Relationship Management System

The proposed system is aligned with the vision and mission of the company. One valid proof is their mission statement which goes, “To deliver efficient and effective Total Solutions and Quality Services to their customers, thus fulfilling their business philosophy of total customer satisfaction and delight.” Another one goes, “To support the community by involving in worthwhile projects and activities where information technology could play a significant rule in enhancing the progress of nation-building and continuing education.”The company‘s vision also states, “The company aims to become the industry leader in providing Total Solutions and Services of the highest quality through a team of highly competent and committed people.”

The proposed system would likely to increase the number of customers, and attain customer satisfaction and delight. The system is also Information Technology-inspired and that it whereby aligned to the mission of the company. As for the company, becoming an industry leader in providing total solutions and services with highest quality is also their top priority.





As said in the first proposed system, it is also aligned with the mission of the company, through the exact same part with the latter system. It is proposed to enhance the inventory system, which will lead to better operations in all different branches. Through this, customer satisfaction will increase due to varied reasons like the satisfaction they get from purchasing without any doubt of out of stock products. Through increasing customer satisfaction, the number of customers will increase. Also, the company will gain a higher competitive advantage among other competitors. Project Option #3 – Human Resource Information System

The proposed system is aligned with the vision and mission statement of the company and it refers to “to provide the employees with challenging work in an open and participative environment marked by equal opportunities for personal as well as, professional growth. Treated with dignity, and respect, encouraged to be creative and innovative, take active roles to improve over-all productivity, and be evaluated for performance on the basis of fair and equitable standards.” This means that the system will help to evaluate all the employees with their performances in the company or in any activity that the company has.

ALIGNMENT WITH VISION AND MISSION

Rating Description

5 The system is highly aligned with the mission and vision.

4 The system is most likely aligned with the mission and vision.

3 The system is more likely aligned with the mission and vision.

2 The system is quite aligned with the mission and vision.

1 The system is not aligned with the mission and vision.

2.2.4 Alignment with Vision and Mission

2.2.5 Project Risk Factors

This portion discusses and determines the success of the system. In addition to that, project risk factor talks about the dangers or the risks that may happen in such time. This will view/test if the system is at high risk or not.

Project Option #1 – Customer Relationship Management System

The risks that may occur during the implementation of the proposed project are the following:

Difficulty in familiarizing with the system




Some customers/sales agents may still prefer the manual way of processing transactions

Inflexibility of both customers and sales agents in adapting/coping up with the system

Reliability of the system e.g. the system went down



Conflict with the original mother system, which includes over-all system of the company

Features of the current system that might not be included in the proposed system

Speed of internet connectivity will affect the speed of the system



Difficulty in familiarizing with the system

Login authentication

Inflexibility of HR Personnel with the system

Reliability of the system e.g. the system went down

PROJECT RISK FACTOR

Rating Description

5 The proposal is of no risk at all.

4 The proposal is of low risk to deploy and implement.

3 The proposal is moderately risky to deploy and implement.

2 The proposal is not too risky to deploy and implement.

1 The proposal is too risky to deploy and implement.

Table 2.2.5 Project Risk Factors




2.2.6 Scoring Model

Table 2.2.6 Scoring Model 2.3 Recommendations 2.3.1 Scoring Model

Based on the result given by the scoring model, the Project Option #1 – Customer Relationship Management System, Project Option #2 – Supply Chain Management System and Project Option #3 – Human Resource Information System acquired a total score of 4.55, 4.25and 3.6respectively. The client decided to choose and to recommend the Customer Relationship Management System which got the highest weight of 4.55 in the scoring model analyzed and computed by the team. The system has great financial payback and can satisfy the company needs through operational activity. The second proposed system - Supply Chain Management System - amounted to 4.25 score in the Scoring Model (See Figure 2.3.1). It ranked second to the first proposed system - Customer Related Management System. It is indeed a good system, in which the company will benefit from. However, the payback period of this system is twice as long as the payback period of the first proposed system. The proposed system – Human Resource Information System got only 3.6 according to the scoring model because HRIS is not a solution to the company‘s weaknesses or issues. HRIS is only a solution to the HR Department and also, it will not make the sales revenue increase but its target is to make a decrease in the operating cost of the company which is a small amount only. Also, the proposed system has low impact on the company‘s operational activity.




2.3.2 Other Recommendations

Provide and Create a Facebook and Twitter Accounts The team would like to recommend these social websites to the SW!TCH to extend their advertising strategies and to get more customers. This would also help the company for their products to be known and be patronized by the potential buyers. These websites are two the most popular social websites that are used by millions of people around the globe.This will strengthen theircompany marketing and will help them in many ways.




PART III: DETAILED SYSTEM DESIGN

3.1 Proposed System Scope and Limitations

CRM systems are used in the same way to manage business contacts, clients, contract wins and sales leads. Customer relationship management solutions provide the company with the customer business data to help them provide services or products that the customers want to provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and better understand who your customers are (Webopedia). The Project’s Functions are the following:

Customer Module

Products Module

Admin Module

Reports Module

Customer Module

The system shall have a registration form for the customers to access the system. It shall be able to classify user types and will have a reservation form that will allow customers to reserve. The system will also have a dialog box which displays the terms and agreements in reserving products specifying that reservations will only be good for one week. If the reserved item(s) is(are) not picked up within one week, the reservation will be considered void. The system shall display a dialog box validating the customers‘ reservation. The system will be able to compute and display the total price of the products being reserved. Also it shall generate summary of reserved products. The system will have an Appointment Schedule Form wherein customers can schedule appointment with regards to their concerns or services. It shall display a dialog box in confirming the appointment schedule. The system shall also have a forum page that will help other potential customers to get information of products feedbacks and reviews from the other customers. The system will automate notifications for reservation due date of customers. It will also notify customers of their warranty status

Products Module

The system will be able to show all the available and latest products of the company and its price. It will show lists of products with its descriptions and prices. The system shall also have an ―Add To Cart‖ buttons for product reservation. Add, Edit, and




Delete buttons will also be available for admin to be able to update on certain products.

Admin Module

The system shall be able to show summary of customers‘ reserved product. The system shall have an approved, paid, pending, and reject buttons to help Admin in decisions of approvals. The system will notify the admin on products critical level.

Reports Module

The system shall be able to show the Master Data of Reserved Products, Loyal Customers, Rejected Reserve Products, Overdue Reserve Products, Rejected Orders, and Approved Reserve Products.

3.1.1 Limitations

- No online payments - Reserved items can only be claimed within one week upon approval - Only accepts payment through personal communication with sales personnel - Payment and final transaction will only be done on assigned branch to the

customer - Only approved and registered members can reserve online - Cancellation of reserved products by customers is prohibited if reservation is

already approved by the administrator(s) 3.2Process Flow Diagram

This section explains the process flow of the proposed system. This is depicted using Use Case and Activity Diagrams, of the Unified Modeling Language.

3.2.1 Use Case Diagram of the Proposed System

POV of Customers in Registration

Figure 3.2.1.1 Use Case Diagram of the Customer Registration

Customer Registration

Login in the system

Customer




POV of Customer in Products‘Reservation

Figure 3.2.1.2 Use Case Diagram of the Customer Reservation


Login in the system

Order/Reserve Products

Approved ordered/reserved

products

Management Customer

Print order/reserve slip




POV of Sales-Customer Reservation

Figure 3.2.1.3 Use Case Diagram of the Sales-Customer Reservation


Login in the system

Order/Reserve Products

Pre-Approved ordered/reserved

products

Sales Personnel Customer

Print order/reserve slip




POV of Customer-Support System

Figure 3.2.1.4 Use Case Diagram of the Customer-Support System


Login in the system

Reservation of Customer Service

Approved reservation of

customer service

Management Customer

Print reservation slip




POV of the Sales Person Pre-Approvals

Figure 3.2.1.5 Use Case Diagram of the Sales Person Pre-Approvals

Walk-in Customer Sales Person

Management

Sales Person Registration

Login to the system

View walk-in Customers Ordered/Reserved

Products

Pre-Approval ordered/reserved

products

Approved registered account




3.2.2 Activity Diagram of the Proposed System

Figure 3.2.2 Activity Diagram – Customer Registration to Website




Figure 3.2.2 Activity Diagram –Customer Order/Reservation




Figure 3.2.2 Activity Diagram – Sales-Customer Order/Reservation




Figure 3.2.2 Activity Diagram – Sales Person Registration




Figure 3.2.2 Activity Diagram – Sales Person Pre-Approval of Requests




Figure 3.2.2 Activity Diagram –Management Approval System




Figure 3.2.2 Activity Diagram –Customer-Support System




3.3IT Infrastructure Blueprint

3.3.1Software Requirements This part includes the proposed Software requirements, as well as justification and rationale for the proposals.

PRODUCT NAME PRODUCT DESCRIPTION

MAC OS X9 (Macintosh Operating System)

Built on a rock-solid UNIX foundation

Works with the processor in Mac

Works with the super-responsive trackpad in Mac notebooks

Long battery life with advanced power-saving technologies

Optimized for the high-resolution Retina display in the high performance MacBook Pro

Launchpad gives quick access to the full library of apps

Price: 0.00 The team decided to use the existing operating system of the company to save costs. Their operating system is a lot better to be used in the team‘s proposed system.

Table 3.3.1 Software Requirements - MAC OS X9 (Macintosh Operating System)




PRODUCT NAME PRODUCT DESCRIPTION

SQL Server 2008

• Transparent Data Encryption. The ability to encrypt an entire database. • Backup Encryption. Executed at backup time to prevent tampering. • Auditing. Monitoring of data access. • Data Compression. Fact Table size reduction and improved performance. • Resource Governor. Restrict users or groups from consuming high levels or resources. • Performance Studio. Collection of performance monitoring tools. • Installation improvements. Disk images and service pack uninstall options. • Dynamic Development. New ADO and Visual Studio options as well as Dot Net 3. • Entity Data Services. Line Of Business (LOB) framework and Entity Query Language (eSQL) • Data Synchronizing. Development of frequently disconnected applications. • Large UDT. No size restriction on UDT. • File Stream. New data type VarBinary(Max) FileStream for managing binary data. • Table Value Parameters. The ability to pass an entire table to a stored procedure. • Spatial Data. Data type for storing Latitude, Longitude, and GPS entries. • SQL Server Integration Service. Improved multiprocessor support and faster lookups. • MERGE. TSQL command combining Insert, Update, and Delete. • SQL Server Analysis Server. Stack improvements, faster block computations. • SQL Server Reporting Server. Improved memory management and better rendering. Price: 0.00 The team decided to use the existing operating system of the company to save costs. Their operating system is a lot better to be used in the team‘s proposed system.

Table 3.3.1 Software Requirements – SQL Server 2008




3.3.2 Hardware Requirements

This includes the proposed Hardware requirements, as well as justification and rationale for the proposals.

63

http://www.stardom.com.tw/safe_capsule_sc2_appliance_files/net.498.png 64

http://www.extrainzerce.eu/galerie/annonce102960/imac.jpg 65

https://www.apple.com/imac/features/ 66

http://www.everymac.com/images/other_images/apple-aluminum-keyboard.jpg

PRODUCT NAME PRODUCT SPECIFICATION/DESCRIPTION

A. iMac Computers63

Minimum hardware requirements

All-in-one aluminum enclosure

Quad-core Intel Core i5 or i7

21.5-or 27-inch (diagonal) LED-backlit display

Apple Wireless Keyboard and Magic Mouse

Up to 32GB memory

Up to 3TB 7200-rpm hard drive; up to 3TB Fusion Drive; or up to 1TB flash storage

4 USB 3 ports

Two Thunderbolt ports

802.11 ac Wi-fi

Bluetooth 4.0 wireless Price: 0.00 The team decided to use the existing iMac Computers of the company to save costs. Their computers are a lot better to be used in the team‘s proposed system.

1. Monitor64

A big, bold display

Fourth generation Intel quad-core processors and the latest NVIDIA graphics

An advanced Fusion Drive option

No desktop has ever brought so much to the table65

Price: 0.00 The team decided to use the existing iMac monitors of the company to save costs. Their iMac monitors are a lot better to be used in the team‘s proposed system.

2. Keyboard66 Features an elegant, ultrathin anodized




67

http://store.apple.com/us/product/MB110LL/B/apple-keyboard-with-numeric-keypad-english-usa 68

http://store.apple.com/ph/product/MB112ZM/B/apple-mouse

aluminum enclosure with low-profile keys that provide a crisp, responsive feel.

It also has function keys for one-touch access to a variety of Mac features such as screen brightness, volume, eject, play/pause, fast-forward and rewind, Mission Control, and Launchpad.

Its extended layout includes document navigation controls — page up, page down, home, and end — and full-size arrow keys for playing games and scrolling through documents

Its numeric keypad is perfect for spreadsheets and finance applications.

And two USB 2.0 ports enable you to connect your mouse as well as a high-speed peripheral such as a digital camera or printer.67

Price: Php2,182.21 The team decided to use the existing keyboards of the company to save costs. Their keyboards are a lot better to be used in the team‘s proposed system.

3. Mouse

Innovative Scroll Ball and button Perfectly positioned to roll smoothly under just one finger, the Apple Mouse's Scroll Ball offers full 360-degree scrolling capability - up/down, left/right and diagonally.

You can scroll long web pages, pan full-sized images, maneuver around large spreadsheets, and control a video timeline and more. And you can even click the Scroll Ball to access your favorite Mac OS X features, such as Dashboard, Spotlight or Exposé.

Touch-sensitive top shell

Force-sensing side buttons

Optical Tracking68




Table 3.3.2 Hardware Requirements

69

http://www.crucial.com/mac/

Price: Php2,490.00 The team decided to use the existing Mac Mouse of the company to save costs. Their mouse is a lot better to be used in the team‘s proposed system.

4. Mac Memory & Storage69

iMac (27-inch, Late 2013)

Max. DRAM - 32 GB

PC3-12800

(1600) DDR3

204-pin

SO-DIMM

1 GB GDDR5 SDRAM,

2 GB GDDR5 SDRAM and 4 GB GDDR5 SDRAM

Price: Php3,206.07




3.3.3 Network Diagram

Figure 3.3.3 Proposed Network Diagram




3.3.4 User Interfaces and Reports

3.3.4.1 User Interface Design

3.3.4.1 User Interface Design – Main Form/Landing Page

3.3.4.1 User Interface Design – Customer Registration Form




Figure 3.3.4.1 User Interface Design – Customer Login Form

Figure 3.3.4.1 User Interface Design – CustomerEditProfile Form




3.3.4.1 User Interface Design – Customer Profile Form

Figure 3.3.4.1 User Interface Design – Customer Products Form




3.3.4.1 User Interface Design – Product Description Form

3.3.4.1 User Interface Design – Customer Order Form




3.3.4.1 User Interface Design – Customer Reservation Slip/Form

3.3.4.1 User Interface Design – Customer Appointment Request Form




3.3.4.1 User Interface Design – Customer Appointment Slip

3.3.4.1 User Interface Design – Admin/Management/Sales Registration Form




3.3.4.1 User Interface Design – Admin Login Form

Figure 3.3.4.1 User Interface Design – Admin Edit Profile Form




Figure 3.3.4.1 User Interface Design – Admin Profile Form

Figure 3.3.4.1 User Interface Design – Admin Product Form




3.3.4.1 User Interface Design – Admin Product Description Form

3.3.4.1 User Interface Design –Admin Pending Orders Form




3.3.4.1 User Interface Design – Admin Accepted Form

3.3.4.1 User Interface Design –Admin Overdue Form




3.3.4.1 User Interface Design – Admin Rejected Orders Form

3.3.4.1 User Interface Design – Admin Orders Form




Figure 3.3.4.1 User Interface Design – Admin Appointment Request Form

3.3.4.1 User Interface Design – Admin Appointment Request Slip/Form




3.3.4.1 User Interface Design – Admin Customer Master Data Form

Figure 3.3.4.1 User Interface Design – Admin Customer Profile Form




Figure 3.3.4.1 User Interface Design – Admin Form

Figure 3.3.4.1 User Interface Design – Admin Branch List Form




3.3.4.2 Report Design

Figure 3.3.4.2 Accepted Orders Report

Figure 3.3.4.2 Orders Report




Figure 3.3.4.2 Customers Report

Figure 3.3.4.2 Appointment Report




3.4 Implementation Plans

3.4.1 Project Development and Implementation Timetable

Table 3.4.1 Project Development and Implementation Timetable

On the third (3rd) week of January, we conducted company interview for the team to be able to come up with the internal and external analysis. The System Analysis (Chapter 1) lasted for one (1) month. In doing the System Design (Chapter 2), three project options are developed and come up to functions and features of each system. These are the things to be considered to evaluate the proposed systems according to the scoring model. In creating the UI Design which is part of Detailed System Proposal (Chapter 3) lasted for two (2) weeks. The team created the Customer-Relationship Management System to be able to meet the Customer satisfaction. On the other hand, the System Implementation which is the proposed system will be implemented through coding and testing the system. In installing the system it must be tested by a user to check the functionalities of the system.




3.4.2 Disaster-Recovery and Backup Plans

This part tackles about the detailed procedures for disaster/recovery, backup, and the contingency measures needed for the organization. This also includes narratives/points that discuss how the information will be backed-up and restored, as well the tools/infrastructure needed to support the procedures you suggest.

DISASTERS/ PROBLEMS THAT

MAY OCCUR

SOLUTION/PREVENTION

Hacking/Network Infringement

Implementation of Network Security Protocols The network should implement Wi-Fi Protected Access II (WPA2) with the help of Advanced Encryption Standard (AES) which is an encrypted algorithm that make sure the data are protected and Counter Mode with Cipher Block Chaining Message Authentication Code Protocol (CCMP) that provide data integrity and reliability. With this network security protocols, the hackers will encounter difficulties in penetrating and accessing the network Having username and password before accessing Wireless Internet

This would help to make sure that the Wi-Fi users are the guests and authorized persons only. Usernames and Password need to be authenticated first for the security of network.

Limiting and Turning off the AP (Access Point) mode of the router after working hours

Through this, unauthorized access using the AP mode as the mode of connection to the system would be avoided. In limiting the AP (access point) in the company‘s boundaries will prevent the outsider to enter or access the network. Regular Clearing Cookies Procedure

It helps to eradicate browsing information and to prevent tracking. It will also help to save space for more important files to be saved.




Fires/ natural calamities

Online Database Back-up All files and data must be saved and must have back-up at external drive and uploaded on cloud every day after working hours. In case, there are calamities and there will be losses of data, it will be easily and properly restored. Daily backed-up will make the files reliable and maintain data integrity.

Computer Breakdown-hardware problems

Regular Maintenance All the computers must under-go regular check-up to check if all functions are in good conditions, In doing system diagnostics like memory check, processor check, hard disk drive check and so on, so that the system could maintain its stability throughout the operation. The Technician or a Programmer must be in charge in doing the regular maintenance.

File Deletion for Administrator

Create Database Back-ups

The data must have daily back-up through uploading it in the internet free space or be saved on the external drive for restoration purposes if needed. Daily backed-up will make the files reliable and maintain data integrity.

Internet Connection Interruptions

Have a USB Modem for emergency usage SW!TCH must have a USB Modem in order for them to run the system in case there are internet failures or interruptions due to uncontrollable situations for the company to continue to operate its business.(e.g. Globe tattoo, Smart Bro, sum Internet etc.)

Table 3.4.2 Disaster-Recovery and Backup Plans

3.4.3 Maintenance and Operations Plan

Logout Enforcement Mechanisms

Users must lock their computers when not in use or if nobody is around for security and authorization purposes. This would prevent others to access someone‘s computer.




Users should log-out from the system when not in use. It should also never be left logged in to prevent unauthorized person to use it.

Prohibits accessing of unnecessary websites that may divert and affect

employees’ focus (e.g.)

Accessing social websites like Facebook, Twitter, Tumblr, Multiply, Tagged, Youtube, etc. These websites should be blocked to prevent the employees to access it during office hours.

These websites slow down the bandwidth of the system and affect the loading of the system.

The users are not supposed to save personal / company files on the

desktop computer.

Company files should be shared on the network server so that in case there will be a system breakdown the files are not affected and can be recovered easily.

Personal files should only be saved on personal thumb drives and not on the desktop computer hard drive itself.

Software and Hardware maintenance

All software that is installed to each computer should be maintenance or check for debugs and updates as frequently.

Hardware maintenance should be done at least once a week. The maintenance should include CPU check, memory, check, hard disk check. Moreover, the maintenance would also include the cleaning of the system from dusk that could result to fast deterioration of the system or even system crashes.

Data Integration Maintenance

Frequent backing-up of database should be done to ensure data integrity. This prevents corruption of database and such. Meanwhile, restoring of corrupted data may still be possible and continue its usual operation. This helps ensure the accuracy of data restored.




3.5 Business Value Generation

3.5.1 Cost Benefit Analysis for Customer Relationship Management

Figure 3.5.1 Cost Benefit Analysis for Customer Relationship Management

Figure 3.5.1 Total Cost of Ownership for Customer Relationship Management




Figure 3.5.1 IT Infrastructure Model for Customer Relationship Management

The figure above is the over-all summary of the cost benefit project of the proposed system. It projects the first three (3) years of the system from the first year of its implementation.

The discount rate of 7.50% is based on Banco De Oro interest rate.




3.5.1.1 Return On Investment Computation of Project Option #1

Figure 3.5.1.1 Return On Investment Computation of Project Option #1 3.5.1.2 Payback Period The computed payback period of the proposed system 0.0 years. This just shows that SW!TCH can get back their initial investment as cost for implementation in just few days. This would benefit them a lot and at the same time get equitable revenue.

3.5.1.3 Return on Investment (ROI)

The computed ROI of the proposed system is 25326.51 percent. This shows that SW!TCH investment for the proposed system has more than a hundred percent probability of getting back. As a general principle, the higher the ROI computed than the discount rate, the better and more beneficial to the company.

3.5.1.4 Net Present Value

As computed by the team, NPV of the proposed system after it will be implemented and used for three (3) years is Php126,560,311.22. This indicate that the investment will give a great significant value to SW!TCH through its positive value. As a general rule, if the NPV is more than zero (0), the project should be accepted because of its positive impact to the company.

3.5.1.5 Total Initial Investment

The total initial investment for the proposed system is Php190,538.25. This cost as summarize in table , includes the hardware, software, database technology, network infrastructure and the application cost. The application cost is basically the cost of manpower such as programmers and system administrator that will play a big role in the creation of the system.




3.5.1.6 IT Infrastructure Cost Model

Table 3.5.1.6 IT Infrastructure Cost Model of IS Project #1

3.5.1.7 Application Cost Model

Table 3.5.1.7 Application Cost Model 3.5.1.7 Total Cost of Ownership

Figure 3.5.1.7 Total Cost of Ownership

The Total cost of ownership of the proposed system for three (3) years is Php202,684.70.




3.6 Project Deliverables Section

3.6.1 Traceability Matrix

Below is the matrix that the team had come up. This matrixshowsthe featuresthatare tracedto the functions of the system.(See Table 3.6.1 Traceability Matrix on next page.)




Table3.5.1 Traceability Matrix of SW!TCH– CRM




3.6.2 Project Scope Sign-Off Section

Below is the summary of Stakeholder Requirements, and System Features that Team HAF Team is committed to do for Computer Applications Project 2 (CAPROJ2).

FUNCTIONS AND FEATURES – Project Option #1

FUNCTION 1 Customer Module

FEATURE 1 The system shall have a registration form for the customers to access the system. FEATURE 2 The system shall be able to classify user types FEATURE 3 The system will have a reservation form that will allow customers to reserve FEATURE 4 The system shall display a dialog box validating the customers‘ reservation FEATURE 5 The system will have a dialog box which displays the terms and agreements in reserving products FEATURE 6 The system will be able to compute and display the total price of the products being reserved FEATURE 7 The system shall generate summary of reserved products FEATURE 8 The system will have an Appointment Schedule Form wherein customers can schedule appointment with regards to their concerns or services FEATURE 9 The system shall display a dialog box in confirming the appointment schedule FEATURE 10 The system shall have a forum form that will help other potential customers to get information of products feedbacks and reviews from the other




customers FEATURE 11 The system will automate notifications for reservation due date of customers FEATURE 12 The system will notify customers of their warranty status

FUNCTION 2 Products Module

FEATURE 1 The system will be able to show all the available and latest products of the company and its price FEATURE 2 The system will show lists of products with its descriptions and prices FEATURE 3 The system shall have an ―Add To Cart‖ buttons for product reservation FEATURE 4 The system shall have an Add and Update buttons in case admin will have updates on certain products


FEATURE 1 The system shall be able to show summary of customers‘ reserved product FEATURE 2 The system shall have an approved, paid, pending, and reject buttons to help Admin in decisions of approvals FEATURE 3 Disable or remove products that are not available FEATURE 4 The system will allow the administrator to view and monitor inventories reserved FEATURE 5 The system notify the admin on products critical level

FUNCTION 4 Reports Module

FEATURE 1 The system shall be able to show the Master




Data of Reserved Products, Loyal Customers, Rejected Reserve Products, Overdue Reserve Products, Rejected Orders, and Approved Reserve Products




The abovementioned items to be signed-off are for the purpose to ensure clarity on the deliverables for Computer Applications for Project 2.

HAF Team

CAPROJ1 Panelists

Anale - Surigao Leader

Mr. Louie Lintao Panel Chair

Frances Jarmine C. Cabugao Member 1

Ms. Jennifer Ventus Panel Member 1

Charmine Hazel E. Vega Member 2




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APPENDICES

Data & Analytics

Thesis Paper I