CHAPTER 2

LITERATURE REVIEW

2.1. Common Theory

Business, “a usually commercial or mercantile activity engaged in as a means

of livelihood” (Merriam-Webster, 2018), consists of many parts as explained by

Wernerfelt, B., (Wernerfelt, 1984) where resources whom he stated as “brand names,

in-house knowledge of technology, employment of skilled personnel, trade contract,

machinery, effective procedures, capital, etc.”. Those are considered as intricate parts

of organizational resources which organization must orchestrate them altogether to

serve business strategy, in means of business, that is system (Waldo, 2017).

2.1.1.System

Merriam-Webster (Merriam-Webster, 2018) defined the word

“system” as “a group of devices or artificial objects or an organization

forming a network especially for distributing something or serving a common

purpose”. Thus in business systems means, serving business purposes, a

business system couldn’t be separated from the role of technology.

Technology has evolved beyond only computers, Porter, M. E. and Millar, V.

E. (Porter & Millar, 1985) explained that the significance of technology is

that significant on transforming the way they operates by product

improvement (i.e. physical goods, services, and information) in creating

values for their (organization) buyers or users.

2.1.2.Information System

What truly makes technology exists and even has evolved into

something unprecedented in our daily lives, specifically in business’

standpoint? The answer lies inside one of the organizational resources

(Wernerfelt, 1984) that is knowledge. Davenport and Prusak (Dalkir, 2011, p.

60) explained knowledge as “A fluid mixing of framed experiences, values,

contextual information, and expert insight that provide a framework for

evaluating and incorporating new experiences and information…” Referring

to Davenport and Prusak explanation, knowledge is vaguely understood by

business and everyone, emphasized by incorporation of two elements of

knowledge which are experience and information. Experience comes from

and belongs to an individual that gained from what he or she perceived by

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human sensory (Hossain & Ali, 2014). Meanwhile, information defined as “A

message, usually in the form of a document or an audible or visible

communication.” which derived from data that defined as raw content of fact

(Dalkir, 2011).

In an organization, information is more useful by talents rather than

experience, through to its nature as an applied fact that easier to be understood. And

it (information) need to be disseminated in throughout the organization through the

usage of technology (Powell & Dent-Micallef, 1997). Furthermore information

within an organization (or business organization) are disseminated, governed, and

used in such way it can support the organization which is called as information

system (Zviran, 1990). His conclusion of in explaining what information system is

also supported by information technology standpoint, where information system or

IS, known as tool for people to do collection, processing, storing, analyzing, and

distributed information for a specific purpose to the right people, in a right time, right

amount, and right format (Rainer, Prince, & Cegielski, 2013). He (Zviran) found that

information system has strong linkage with organizational (business) strategy where

organizational strategy help to construct tailored information system based on

specific data and information chosen (or generated) from existing business processes

2.1.3.System Development

Developing a new system means to define, design, test, and

implements a new software application or program. Business organization

could build their own customized systems, tailored to their needs or acquire a

third party developed software and customize it to suit their needs. However

written standards and procedures are critical to guide the system intended

functions. Also careful consideration on defining a specific standard and

adopt an appropriate system development life cycle methodology led to

capability for manager to govern the process of developing, acquiring,

implementing, and maintenance of future or present information systems

(FCA, 2007).

Software development usually involved parties (Passova, 2005) which

are the customer or end-user as the one who will gain the benefit from

deliverables of the development, business analyst to define the business

requirements, designer to design the necessary documentation (i.e. UML

diagrams), developer to do the code based on the documentation, and lastly

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tester to assess whether the system developed is aligned with the requirement

and the integrity of the system itself by following common practices of IT.

However system development often collaborates with its user (or end-user)

which makes system development called as customer oriented system

development (abbreviated to COSD). Passova illustrated common

communication flow of software development as below:

Figure 2.1 Multi-Level Human Communication Channel (Passova, 2005)

As system development has many steps, Kruchten, P. (Kruchten,

2004, pp. 4-5) laid out problems around the steps of system development

which could lead to:

Poor software quality

Unacceptable software performance

Hard to maintain or extend a software

Inaccurate understanding of end user needs

Inability to deal with changing requirements

Late discovery of serious project flaws

The cause of these disasters are commonly occurs because of

ambiguous communication, then when scope is not finitely defined,

inconsistencies among end-users requirements with system analyst’s design,

thus the project become overwhelming complex to finish (uTexas Edu, 2014).

Project Management is a necessary when developing an IT System,

techniques and methods help to ensure that the project finished successfully

(Passenheim, 2009, pp. 12-13). Project manager according to Project

Management Institute (Project Management Institute, 2013), it is defined as

“application of knowledge, skills, tools, and techniques to project activities to

meet the project requirement”. Which a common challenge and as a heavy

emphasis on ensuring that the scope of the project that is mutual

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understanding are needed by both the system analyst and project owner,

highlights that it is one vital state for a successful project (Aubry, Boulay-

Bolduc, Richer, & Lavoie-Tremblay, 2018, pp. 151, 154).

2.1.4.System Requirements

System requirements, which are usually categorize into functional

requirements and nonfunctional requirements are activities and characteristics

that new system ought to do or meet. Functional requirements are the

activities of the system while Nonfunctional requirements are characteristics

of the system besides the activities that it performs. FURPS which stands for

Functional, Usability (describes operational characteristics related to the

users), Reliability (dependability of the system), Performance and Security

requirements are classification technique that is often used. FURPS+ is an

extension of FURPS (Satzinger, Jackson, & Burd, 2012) which includes:

Design constraint (describes restriction of hardware and

software)

Implementation requirements (technique or methodology

required in the implementation phase)

Interface requirements

Physical requirements

Supportability requirements

2.1.5.Graphical User Interface

According to Jansen, B.J. (Jansen, 1998), graphical user interface

(abbreviated to GUI) is created to solve the problem of users’ lack of

interaction with the system as the screen with no GUI is only a command

prompt without any visual indication to help the user. GUI binds the user of

their interaction with the system, the features for the system is laid out in the

interface for users to use, on demand As GUI is first developed in 1977,

throughout the years there is a consistency between GUI such as windows,

menus and dialog boxes which users are already accustomed to (Jansen,

1998).

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Figure 2.2 Example of a GUI

2.1.6.Database

Data is ubiquitous, global, and we can find it everywhere. Each

individual produces and consumes huge amounts of data. Collection of this

logical and integrated data called database. According to (Connolly & Begg,

2014, p. 63), database is a collection of data and a description of data that was

designed to get the information needed by information. Another similar

statement comes from (William and Sawyer, 2007:402-403), database is a

collection of related data with each other are organized, designed and built for

specific purpose. From those statement, we can summarize that database is a

collection of integrated data including end-user data and metadata that used

for specific company purpose.

The database structure itself is stored as a collection of files, and the

only way to access the data in those files is through Database Management

System (DBMS). DBMS will serves as the intermediary between user and the

database.

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Figure 2.3 Interaction between end-user and database (Coronel, Rob, & Morris, 2012)

According to Coronel and Morris, 2018 by having DBMS, there are

some advantages that we can get such as:

Improved Data Sharing in DBMS

DBMS help to create an environment where end user have more and

better managed data. This will makes end user can respond quickly in

their environment.

Improved Data Security

More number of users that access the data, the higher risks of data

security breaches. DBMS provides a framework for better

enforcement of data privacy and security policies.

Better Data Integration

Wider access to well managed data will give greater and clearer view

to organization’s operations. It becomes much easier to see how

actions in one segment of the company affect another segments.

Minimized Data Inconsistency

Data inconsistency exist when different version of the same data

appears in different places. By having properly designed DBMS, it

can reduce data inconsistency by minimizing isolated files in which

the same data are repeated.

Improved Data Access

DBMS make it possible to produce quick answers to ad hoc queries.

Query is a specific request issued to the DBMS for data manipulation

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such as: create, read, update, and ad hoc query is a query that created

to obtain specific information as the need arises

Improved Decision Making

Better managed data and improved data access make it possible to

generate better quality information, which leads to better decision

making process. DBMS does not guarantee data quality, but it

provides a framework to facilitate data quality initiative. Data quality

is a comprehensive approach to ensuring the accuracy, validity, and

timeliness of data.

Increased end-user productivity

DBMS provides availability of data, combined with the tools that

transform data into usable information, help end user to increase their

productivity.

Database management system can be used to build many different

types of databases. Each database store particular collection of data for

specific purpose. Database can be categorized into some classification such

as: number of user, location, and type of data stored.

Based on number of users

o Single User Database

Support only single user at a time. So if there is someone using

database, the other user must wait until the first user finished.

A single user database that runs on a personal computer is

called desktop database.

o Multi User Database

In contrast, multi user database support multiple users at the

same time. Multi user database divided into workgroup

database (users less than 50) and enterprise database (more

than 50 across many departments).

Location

o Centralized Database

Database that supports data located at a single site.

o Distributed Database

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Database that supports data distributed across several different

sites.

Type of data

o General Purpose Database

Contain wide variety of data used in multiple

o Discipline Specific Database

2.1.7.Mobile Application

Mobile application (Budiu, 2013) refers to native application that runs

on a handheld devices by accessing full potentials and features of the

hardware (camera, GPS, accelerometer, compass, etc.) and software (software

optimization) hence the incorporation of those in the operating system (Islam,

Islam, & Mazumder, 2010). While it is compact and able to support their

users anywhere as they are portable, there is some limitations:

Screen resolution

o As mobile screen is limited, amount of information fitted in

the screen is limited.

Hardware Limitations

o For its portability, mobile devices comprise on the processing

power and battery life.

Expensive Data Usage

Connectivity issues

o Connectivity reliability is not perfect because devices are

moving from places to places

Limited Interaction possibilities.

o Different method of interaction compared to desktop, different

UI needs to be design to suits a mobile application (Harrison,

Flood, & Duce, 2013)

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Figure 2.4 Example of smartphone running Android OS (Source: https://mashable.com/2015/10/19/google-nexus-5x-review/#4xeHih0yDiqF)

Figure 2.5 Example of an iPhone running iOS (Source: https://www.gearbrain.com/apple-iphone-x-review-roundup-2504313322.html)

iOS and Android are the two of the most popular mobile operating

system according to gs.statcounter.com, Android OS still the market leader in

mobile operating system market.

Developed since 2007, Android has many capabilities and modern

features to make it a dependable mobile operating system such as tabbed web

browser, hardware acceleration and optimization (Krajci & Cummings,

2014). Its open source nature and modern features makes it the number one

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most popular mobile operating system (StatCounter, 2018). Reflected on how

easy developer can find Android software development kit (SDK) called as

Android Studio on developer.android.com. SDK is an operation system

development suite which referred from Sandoval, K. (Sandoval, 2016) that

“providing a set of tools, libraries, relevant documentation, code samples,

processes, and or guides that allow developers to create software applications

on a specific platform.”

2.1.8.CRM

CRM which stands for Customer Relationship Management deals with

managing customers data and its detail (Kotler & Keller, 2011, pp. 145, 267)

that results in giving values for its end customers while maintaining long-

term relationship to ensure that they will still become our customers in the

long run (Turban, et al., 2018). To be more specific, CRM is a system that

supports marketing, sales and service operations, directly or indirectly to the

customers (Rainer, Prince, & Cegielski, 2013). In banking industry, CRM

concept allow bank to focus on overall growth. According to (Laketa,

Sanader, Laketa, & Misic, 2015), CRM provide advantages which bank uses

when communicate to target group, this will leads to higher performance

products and services that can meet customer needs. When implementing

CRM, bank should:

Spread vision that CRM is useful for the bank and for the

customers

Define the objective of implementing CRM concept

Use information about customer

Ensure that all parts of organization are involved in

implementation of CRM

CRM activities are performed over the three phases of customer

acquisition, retention and extension or expansion. Customer Acquisition is

the start of establishing business relationship, includes capturing customer

profile data such as name, address, phone number and other profile data.

After gathering customer data, businesses use data analysis to allow them to

identify traits of prospects and customers that will retain as a customer for

their business. Finally, Customer Extension includes activities that involves

stretching customer relationships to enable greater revenue such as offering

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add-on products and cross-selling, recommending unrelated solutions or

products (Kokenmuller, 2017).

2.1.9.E-CRM

The use of information system to maximize the result of customer

relation through effectiveness, efficiency and innovative features is called E-

CRM. Deconstruct the terms of e-CRM, it would be “E’ and “CRM”. For the

meaning of CRM itself is already been explained above. Meanwhile the

definition of “e” in e-CRM is abbreviation of e-Business that commonly

interpreted (Karakostas, Kardaras, & Papathanassiou, 2005) as “the

integration of e-business activities”. However if these words are combined

into single word (e-CRM that is), the meaning of e-CRM (S, 2016) would be

“an integrated online sales, marketing and service strategy that is used to

identify, attract and retain an organization’s customers.” e-CRM considered

as competitive advantage in an organization which is important for long-term

plan especially in the financial industry when customer relation and trust is

very important. In practical usage, the data that is stored by a company’s

information system will be refined and used to answer relevant questions

surrounding customer such as, “Who is my customer?”, “What did they do?”,

and “What is my customer like?”. By having these questions as a focus,

services will be more effective and efficient when the customer target is well

defined , performing relevant campaign and services with higher chance of

success (Karakostas, Kardaras, & Papathanassiou, 2005).

2.1.10. E-CRM Application

2.1.10.1. Customer-Facing Applications

According to Rainer, R.K., Prince, B., and Cegielski, C.G.

(Rainer, Prince, & Cegielski, 2013), Customer Facing

Applications is divided into 4 segments:

1. Customer Service and Support

It refers to the automation of service request,

feedback, and product information request.

2. Customer Force Automation

Customer Force Automation automatically record

all transaction from a sale process.

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3. Marketing

a. Cross Selling - Cross selling is a marketing

technique to market related products that

give an additional value to a customer

based on their previous purchase.

b. Up Selling - Up selling is a kind of

marketing strategy where the seller give

chance to customer to buy a product or

service that have higher value related to

place, initial product selection, or customer

service.

4. Campaign Management

Help organization to make a campaign strategy

that can deliver accurate message to potential

customer through the right channel.

2.1.10.2. Customer-Touching Applications

According to Rainer, R.K., Prince, B., Cegielski, C.G.

(Rainer, Prince, & Cegielski, 2013, pp. 270-272), e-CRM

Application. Customer-Touching Applications can be divided

become:

1. Search and Comparison Capabilities

Sometimes it’s hard for customer to find exactly

what they want, because there are a lot of services

and products. To help customer, some online shops

and e-commerce websites that provide search and

comparison feature.

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Figure 2.6 Best Buy’s Search and Comparison Feature

2. Technical and Other Information and Services

Many organization provide detail information

about their product to induce a customer to make a

purchase or to remain royal.

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Figure 2.7 Goodyear Product Detail

(https://www.goodyear-indonesia.com/tyres/wrangler-triplemax)

3. Customized Products and Services

Mass customization that used by online many

sellers, by using this feature, customer can

customize their own product.

Figure 2.8 Adidas Customized Product

4. Personalized Web Page

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There are some organizations that allow their

customer to make their own webpage based on

their shopping behaviour and preference. By using

this tool, customer can only see what product or

service that they really want to see.

Figure 2.9 Bukalapak Personalized Webpage

5. FAQs

FAQs is a simple tool to answer most and popular

asked customer question. So by seeing through

FAQs, customer can find the answer instantly

without waiting the customer service to answer

their question.

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Figure 2.10 Krispy Kreme’s FAQs

6. E-mail and Automated Response

E-mail is most popular tool for customer service.

It’s fast and easy. Not only as a media for

answering customer’s question, but also to send

information, send a warning, and also doing a

survey to gather feedback from customers.

Figure 2.11 Tokopedia Automated Email Response

7. Loyalty Programs

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Loyalty program created to recognize customer

that repeatedly buying or using company products

and services. This program is suitable if the

company have high number of repeated product or

service use, and limited product customization for

every customer.

Figure 2.12 Blibli Reward Program

2.1.11. Banking and CRM

In the banking world, CRM has an important role in customer

engagement especially in marketing aspects (Krasnikov, Jayachandran, &

Kumar, 2009, pp. 62, 64) such as greater customer satisfactions and loyalty

(Kumar & Shah, 2004, pp. 322, 325), higher response to cross-selling efforts

(Anderson, 1996, pp. 265-266), and better publicity. In other aspect such as

compliance and regulatory, getting customer engaged with the bank regularly

would help the bank to keep track on customer that already complied with

KYC procedure and can drive campaign by knowing those who haven’t

complied with KYC procedure. Which bank could identify unknown or

dangerous customer faster and could take action based on data.

The KYC (abbreviation to “know your customer”) itself is a procedure

where common in bank and telco company (Lupambo, 2016) to identify the

owner or the holder of account is held by real people and matched with

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registered data. Thus the organization need to put campaign for all customer

to comply and the organization would be assured that all accounts have

verified person behind it. Which KYC helps organization to prevent money

laundering that could led to terrorist’s funding, corruption, tax evasion, and

other act that against law where it shall comply to Indonesian law as stated in

Peraturan Otoritas Jasa Keuangan (POJK) Nomor 12/POJK.01/017 (Otoritas

Jasa Keuangan Republik Indonesia, 2017) regarding Application of Anti

Money Laundering and Terrorist Funding Prevention in Financial Service

Sector.

The way KYC works in a nutshell, in banking case, the first time

customer opened their account they need to provide legal documents detail

such as national registry identification number (NRIC) in Singapore or kartu

tanda penduduk (KTP) in Indonesia, kartu keluarga (KK or family registry

card), and even cellphone number (Purnomo, 2017) to ensure the account can

be verified and secured. That is why in Indonesia, the government are forcing

cellphone number registration. In the future cellphone number can be used for

any registration such as banking products, insurance products, etc.

2.1.12. Interrelation on Gap, Problem and Requirement

In every project related to improvement or enhancement, there are

problems and solution to solve the problems. However there must be a

differences of reaching the solution from the problem which could bring

values to the organization (Miles, 1979, pp. 599-600). The margin is

familiarly called as “gap” in which it needs to be filled thus it would enable

the organization to develop the solution. Aristotle in his theory on teleology

(Langford, Raymond, Huynh, & Lewis, 2007, pp. 7-9), explained the gap

exists due to limitation of existing elements involved into solution creation.

Elements referred by Aristotle are material, formal, efficient, and final.

First is material, which is everything that have tangible forms (e.g.

products). Secondly is formal which explain about relations between parties

that involved. Different relationship meaning different way to solve or

perspective to view the problem, which different values between each party

must take into account to predict the perspective. Thirdly, the term efficient in

Aristotle’s view (Sproles, 2002, pp. 253-254) is the procedure itself whether

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it is flexible or rigid which affect the overall outcomes in requirement. Lastly,

final, meaning that how is it going to be used by people.

Aristotle established this elements and interrelation of these into a

discipline that called as “teleology” from greek word “teleo” and “logos”

which translated as “end” and “reason”. Britannica online dictionary

(Encyclopaedia Britannica, 2016) defined teleology as “...explanation by

reference to some purpose, end, goal, or function. Traditionally, it was also

described as final causality...” Johnson, M.R. (Johnson, 2005, p. 71) in his

research book, “Aristotle and Teleology” found that there are reasons on

every purpose, goal, and function through a thorough and deep philosophical

thoughts, the cause and what could brought it to expected end are studied

with certain guesswork based on empirical and logical decision.

In our modern perspective on technology, technological system is

behave on a result that based on how the users’ behave where the behavior is

ruled by or is ruling the procedure in which affects the experience of the users

(Unger & Chandler, 2009, pp. 98-99). The uniqueness of four elements has

created an environment or a reciprocal system with sets of limitations

modified by culture and values that makes one environment and another are

hardly could be joined.

However Jeong, D., and Song, M. (Jeong & Song, 2014, p. 777) view

that confluence between one and another is also relevant in comparison

between time-linear event (e.g. present state and future state). To identify the

confluence, there are many methodologies to illustrate or explain the gap

analysis. Muchsam, Y., Falahah, F., & Saputro, G. I. (Muchsam, Falahah, &

Saputro, 2011) applied gap analysis by using statistical analysis to show the

disparity between actual condition and needs in quantifiable measure, they

summarizes the result in example as figure 2.13. However they further

formulates the gap into requirement which contains the lacking and solution

as in figure 2.14.

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Figure 2.13 Example of Gap Result

(Muchsam, Falahah, & Saputro, 2011)

Figure 2.14 Example of Gap Analysis for System Requirement

(Muchsam, Falahah, & Saputro, 2011)

The example of gap analysis based on gap result conducted by

Muchsam, Y., Falahah, F., & Saputro, G. I., illustrate gap analysis on

building a system which translated into requirement needed. In similar-yet-

different approach, a basic gap analysis conducted based on narratives where

a user at certain point pointed out their problem and expectation on new

system that will be developed. In which gathering identified problem

definition and result (before-after state) isn’t that difficult.

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Roth, R. M., Dennis, A., & Wixom, B. H. (Dennis, Roth, & Wixom,

2012, pp. 130-136) proposed several analysis that analyst can use for

problem-solution in requirement building in system analysis and design

which are problem analysis, root cause analysis, duration analysis, activity-

based costing, informal benchmarking, outcome analysis, technology

analysis, activity elimination, and comparing analysis strategy. However

Brown, D., and Kusiak, J. (Brown & Kusiak, 2007, pp. 2-4) from Institute of

Risk Management in their white paper focusing more on few number

fundamental analysis that are problem analysis, outcome analysis, and from

that two it would formulate up alternative solution analysis, where problem

analysis see how the problem formed and which are problems and which are

actually the outcomes of the problem. Meanwhile outcome analysis analyze

the expected result expected by people if there are a solution, though it could

be reverse engineered from the problem itself. Lastly alternative solution

analysis is use to brainstorm and mapping on heuristic approach on how each

problem can be solved to achieve expected outcomes.

These are that conceptually and virtually goes along with Aristotle’s

view on teleology. Where it’s easing up the elaboration of defined problems

with possible ideas one by one will give a big picture of single solution with

many features (Jeong, D., & Song, M., 2014:777 ; Satzinger, J.W., Jackson,

R.B., Burd, S.D., 2012:5) with example given on Table 2.1.

Table 2.1 Example of Problem-Solution Analysis Table

No Problem Definition Solution Benefit

1 The display on TV is not clear

Subscribe digital TV service

Full HD show without static

2 Limited selection of channels

Wide selections of channel worldwide

2.2. Specific Theory

2.2.1.SDLC

To learn, build, and execute an IT or IS-related project from scratch,

the system development lifecycle is needed. The SDLC according to

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Satzinger, J.W., Jackson, R.B., Burd, S.D. (Satzinger, Jackson, & Burd, 2012)

is “all the activities required to build, launch, and maintain an information

system.” The activities referred from its definition has six core steps as the

underlying foundation in every projects which listed down as below:

1. Identify the problem or need and obtain approval to proceed, this is

where initiation comes when business got certain need or issue to be

solved where it can only be solved by using information technology

(such as opening new portal, adding new product line, building

workforce system, and such).

2. Plan and monitor the project—what to do, how to do it, and who does

it, this is the part of managing the project by allocating resources

(time, people, tools, space, etc.) to make the project will be

accomplished on time without any road blocks and defining the to-do

tasks for gathering need until completing the system.

3. Discover and understand the details of the problem or the need, from

the need defined into problem definition that laid out all problems

within scope and break them down one by one to find root cause.

However learning the existing process or system is essential because

to measure a solution or priority of the problem is crucial. That

defines on how project team deliver the deliverables.

4. Design the system components that solve the problem or satisfy the

need. By using prototyping tools (hence mockup tools), or basic

programming where focused only certain function inside certain

module without any cosmetics (or aesthetic feature) as a test whether

solution is feasible or not.

5. Build, test, and integrate system components. If mockup or basic

programming accepted by the team and user, the team would be coded

the program into real program where the infrastructure such as

database, application, network, etc. are built and connected to each

other to make a fully-functioned and usable program to fulfill users’

needs.

6. Complete system tests and then deploy the solution. After system

developed completely, the system is tested by end users to see

whether the system not only functioned but also bring value to those

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who use it. After testing done, the system will be implemented into

the server and configure it fully to real world business case

2.2.2.Conservative SDLC

However there are many approaches to interpret those six steps stated

above. The approaches existed based on the needs which are time, resources,

etc. as explained earlier in first part of this chapter (Wernerfelt, 1984). Prior

to all approaches to SDLC, the first called as waterfall model where all tasks

are done sequentially. Satzinger, J.W., Jackson, R.B., and Burd, S.D.

illustrate the model in Figure 2.15 by sequential order means one activity and

the other activity cannot overlap each other by means cannot run altogether.

An example if a project team is doing requirement gathering and designing

the system, then the design would be increased and changing because the

requirement gathering is still running where there are requirement that still

undefined or undecided by the business where if there is no cutoff it couldn’t

be proceeded to the next phase which is development.

Figure 2.15 Flow of Waterfall SDLC Model (Satzinger, Jackson, & Burd, 2012)

The point of waterfall model is to make everything is clear in current

phase before going to the next phase which every phase need to be finalized,

thus it is why this model called as waterfall model. The finalization helps

team to only focus on the scopes that they really need to work on. Any

additional requirement or feedback and changes are kept for the enhancement

or the next project. Langer, A.M. (Langer, 2008, pp. 10-20), stated that

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drawback on waterfall model is time consuming because project team need to

finish a phase out before they can proceed to the next step. For example, a

tester in a team would be idling until system integration test due to current

state is still on requirement gathering. What Langer would like to emphasize

is the cost and effectivity among all group members are imbalance hence

waterfall is cost-consuming and time-consuming. Though it still help project

team to prevent the project scopes building up over the time.

The six core process as explained above in real world not only those

six that runs for real project. Actually it is expanded (or rather completed)

into many more phases (or processes) for the project. The complete waterfall

model that is commonly used by one of the banking company in financial

industry (source: author) are described as below:

Project Initiation

Initiation is the first step to run a project which starts with

identification of the problem. Several reasons why problem(s)

existed according to Rainer, R.K., Prince, B., Cegielski, C.G.

(Rainer, Prince, & Cegielski, 2013, pp. 28-40):

o Gaps between existing system and market needs where

system can no longer accommodate current business

needs. The cause most likely the shift and innovation in

markets.

o Obsolescence of parts or whole system, makes the

system cannot catch up with today’s speed and

complexity of the process.

However, if problems identified, the feasibility on resources

(time, people, budget, technology, space, etc.). If it’s do-able

then we move to project planning.

Project Planning

Project planning consists of project planning, organizing, and

scheduling the project, or in short we should say project

management. Project management consists of building tasks

and timeline which several questions should be answered in

5W+1H:

o What are the scopes need to be done in this project?

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o Why project team to do each point of the scope?

o Who are going to do the project?

o When the project must be finished?

o Where the project need to be implemented?

o How to accomplish each scopes?

Analysis

Analysis needed where analysts need to gather and identify

specific requirements. Usually includes with interview, focus

group discussions, questionnaires, etc. The goal is to capture

the existing process where business analyst and system analyst

will provide business solution based on the requirements. Thus

data gathering is essential. The goal of data gathering is to

capture the existing process and other resources to create

proposed solution toward the problems. To gather and obtain

primary and secondary data for this project, a structured

approach is needed to help the authors organize obtained data.

Requirement Gathering

Requirement gathering is gathering the data required to build

requirement, constraints, and insight on what’s going on right

now (as-is process) with the users. Satzinger, Jackson, and

Burd described methods for requirement gathering are as

following:

o Interviewing users and other stakeholders.

o Distributing and collecting questionnaires Reviewing

inputs, outputs, and documentation.

o Observing and documenting business procedures

Researching vendor solutions.

o Collecting active user comments and suggestions.

Which requirement gathering are required to do, thus the

development would have a matched vision on what the project

will become to be.

Prototyping

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Creating visual or interactive mock-ups as a tool to help align

user’s and analyst’s vision of the finished project. Perform in

multiple iterations as a result of user’s feedback during an

interview with user.

Design

Design helps analyst to explain and describes how the system

will resolve the business problem. Meanwhile helps the

developer in understanding the requirement in technical term.

The design consists of interface design, databases design, and

object design (including system logic per se). It might be

overlapped with analysis however prototyping is also done in

design which illustrate to-be process for look and feel which

expected to gain feedbacks for improvement or refinement

from the mockup (Unger & Chandler, 2009, p. 205).

Development

Development is a phase or step where developers (front-end

programmers, back-end programmers, DB designer, and

system analysts) to build the system based on the requirement

in which they orchestrate the code into harmony of logics

where we can call as deliverables.

Testing

The basic function of testing is to detect errors, bugs and its

usability (Black, 2009). Basically testing in enterprises are

done in three tests which are:

o Software Integration Test (SIT)

Part of testing, which test each components of the

system and then test the components simultaneously.

o User Acceptance Test (UAT)

Part of testing, which will be user’s first encounter with

the system. User will test their requirements whether is

it satisfied by this system or not.

o Pilot Testing

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More known as production verification test (PVT)

where the system already implemented into the

enterprise’s main server which would like to test the

real performance of daily use. The goal is to make the

performance of the system and its behaviour tolerable

with user’s behaviour by limiting the access to testers.

Implementation

Put the system from testing into production in which it can be

used enterprise-wide for real business case where the system is

ready to open to all users.

There are 4 methods of implementation (Baltzan & Phillips,

2010, pp. 349-350) which are as following:

o Parallel Conversion

The new system and old system runs at the same time.

o Direct Conversion

Old system is discarded and directly implements new

system.

o Pilot Conversion

Introduce new system into one functional area in the

organization for a specific period of time and is finally

assessed, if it working properly it will be implemented

to other areas.

o Phased Conversion

Introduce new system per individual modules, after it is

assessed and confirmed it is working properly, other

modules will be implemented.

2.2.3.Waterfall Frustration

On contrary on waterfall model, there is a perspective where SDLC

can go beyond into a tool that can adapt with changing environment, in other

words, SDLC can be pushed further to dynamic and volatile business

environment (Higgins, 2014). Frustration of waterfall approach appeared

back in 1990s (Varhol, 2017) where Jon Kern, an aerospace engineer thought

that waterfall has “long lead times and with the decisions made early in a

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project that couldn't be changed later.” And he continued, “We were looking

for something that was more timely and responsive”.

2.2.4.SDLC with Agility

Spring 2001 in Ottawa, 17 thought leaders gathered to create a

manifesto which most people recognized it as “Manifesto for Agile Software

Development” (see agilemanifesto.org) which the byproduct known today as

“agile development”. Agile development is also a concrete form of

marginalized information system development as the term “marginalized

ISD” proposed by Truex et. al. back in 2000 (Abrahamsson, Salo, Ronkainen,

& Warsta, 2002, p. 9). Where there are privileged and marginalized

information system development which what is and what differ those are

condensed into explanation in Table 2.2 as below:

Table 2.2 Differences between privileged and marginalized ISD

Privileged methodological text Marginalized methodological text

Information system development is:

A managed, controlled process Random, opportunistic process driven by

accident

A linear, sequential process Processes are simultaneous, overlapping

and there are gaps in between

A replicable, universal process Occurs in completely unique and

idiographic (red: relating to or dealing

with something concrete, individual, or

unique, Merriam-Webster, n.d.) form

A rational, determined, and goal-driven

process

Negotiated, compromised, and

capricious

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2.2.5.The Versus

There are two sides, conservatives and realists, the traditional

waterfall and emerging agile (Yourdon, 1988, pp. 82-83). The emerging agile

has at least five challenges that questioning the reliability and correctness on

conduction agile project which has to be tackled by project team. Dean

Leffingwell (Perrow, 2017) stating out the challenges as below:

1. Aligned everyone in a big project is a hassle since project

leader doesn’t know whether 10, 20, 40, or even 60 project

members understand and know what they should do in

changing requirements and environments. In other words

harder to organize and direct.

2. Not all process in agile development can be done by each

personality way to solve. To unify the view, perspective, and

paradigm is a big challenge to overcome. If one created a

module and the other created another, then the paradigm

among them to build the module are different then to connect

both module is futile.

3. The agile team is lightweight for small project but for long

term project which requires strong strategy to plan and to adapt

with all changes unlike waterfall where change is a pain.

Because the scrum master, product owner, and management

need to sort out the long term plan after every change that

impose on the team where focuses are blurred.

4. As changes building up, the resources and efforts done also

rising up, as well with the cost. Which is harder to define

return on investment (ROI) where from gain from investment

must overwhelm the cost of investment to keep the

organization profitable from that particular project. Also they

need to keep track on the budget.

5. Making project into operational expenditure instead capital

expenditure is a dilemma. In one side putting the cost into

operational expenditure which allocate their wages as mandays

might be comforting because they run at operational level

meaning no need to put special allocation of funds to do the

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project which management can execute the project at all time.

However agile project cannot be capitalized which is hard to

think that agile would be beneficial and it would bring cost

more than project team projected due to its nature to not have a

definite cutoff (continuous improvement) that hold the project

to be called as complete.

As Yourdon stated the conservative-ness of waterfall is because

“larger projects, in which massive amounts of money are being spent and for

which careful analysis and design are required to prevent…disaster.” Which

the correctness, carefulness, and bureaucratic approach often got better used

in big company for heavy research and development efforts. According to the

challenges of agile, waterfall is far easier to capitalize since it has definite

cutoff and expenses are measurable.

Also the work clearly defined not overlapping with each other

meaning the team will have undivided attention to the task given to finish the

phase and then moving on to the next phase that is sequential (Satzinger,

Jackson, & Burd, 2012, pp. 227-229).

Figure 2.16 Comparison of Fixed and Estimated Variable on Waterfall and Agile Development

(Aljaber, 2018)

Aljaber, T. (Aljaber, 2018) illustrate in Figure 2.18 the differences of

fixed (unchanged) and estimated (changed) variable over the time between

these two which the variables regardless of fixed and estimated are time,

scope, and resources (Wernerfelt, 1984, pp. 171-180). Where agile

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development has fixed time and resources and estimated scope. On contrary

waterfall has fixed scope but estimated time and resources.

This empirical view is supported by theory of triple constraint triangle

(commonly recognized nowadays as project management triangle) as

illustrated in Figure 2.19 where Wyngaard, C. J., Pretorius, J. C., and

Pretorius, L. (Wyngaard, Pretorius, & Pretorius, 2012, pp. 1991-1994)

explained from 3 sides of triangle it is about three constraints of a project

(cost, scope, and time). However only two out of three that can be satisfied

while the other one would be the tradeoff. In simpler term, to achieve two

good things, the other 1 must be sacrificed. This occurs because these three

are interrelated and changing one of them would impact the other.

Figure 2.17 Illustration of triple constraint triangle or project management triangle (Wyngaard, Pretorius, & Pretorius, 2012)

In conclusion, both agile and waterfall aren’t really a thing to argue on

which is better. It all depends to the duration of the project, size of the

organization, priority, complexity of the project, bureaucracy and politics

inside organization, cost, and many factors take into account. Agile

development focused on continuous solving addressed problem together by

initiatives and based on forte of each group member, thus agile is a risk taker

(Aljaber, 2018). Meanwhile waterfall keeps on well-documented project and

clear defined scope and time, that is play safe (McCormick, 2012, pp. 3-4).

2.2.6.SDLC and Project Management

To run SDLC in actual project, project management is essentially

needed by those who wanted to do realization of the IT or IS-related project.

Project management provides tools for tasks need to be done according to

SDLC. The tools often called as work breakdown structure or WBS (Project

48

Management Institute, 2013). Project Management Institute defined WBS as

“the process of subdividing project deliverables and project work into

smaller, more manageable components”. The benefit of WBS is to provide

staged work plan to make it easier to understand and to trace the progress.

The example of WBS is shown in Figure 2.20.

\

Figure 2.18 Example of WBS (Project Management Institute, 2013)

The WBS contains tasks to be done in a project which the high level

tasks firstly need to be defined and then sub-tasks are laid out to complete

that certain tasks, Which WBS shown the serial big activities detailed of mini

activities until the project accomplished.

2.2.7.Focus Group Discussion

At simplest level, a focus group is an informal discussion among a

group of selected individuals about a particular topic (Wilkinson, 2014, pp.

72-73). To identify a range of perspectives on some topics and gain an

understanding of the issues from the perspective of participant (Hennink,

2014, p. 75) which is personal banker, focus group discussion used as a

method to gather essential information from them. Hennink further explained

the usage of focus group discussion is to:

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Explore topic about which less is known or where the issues

are unclear.

Explain specific behaviors and the circumstances in which

they occur.

Evaluate a service, program, or intervention and understand

reasons for its success or failure.

Gain diversity of experiences and perspective from different

individuals.

Understand context and culture surrounding the research

issues, because those thing can distinguish typical from

uncommon behavior.

Understand group process, by observing how participants

discuss an issue, influence each other, or decide on a strategy

for action.

Doing focus group, it help researcher to capture shared live

experiences from Personal Banker and giving us an opportunity as a

researcher to understand his or her experience. Focus group discussion also

allows the intended individuals and groups to be more involved in the project.

Focus group has several important features (Liamputtong, 2011, p. 4)):

It enables in-depth discussion and involve a relatively small number

of people.

It is focused on a specific area of interest that allows participants to

discuss the topic in greater detail.

Based in the idea that group processes assist people to explore and

clarify their points of view.

Moderator, who is also often a researcher, encouraging interaction and

guiding the conversation.

Focus group discussion have some advantages according to (Hennink,

2014) such as:

Social Setting

o Group discussion setting will reflects people’s natural

tendency for social interaction to discuss issues in a group.

Some participants find this as an enjoyable experience, which

will influences the quality of the data collected.

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Flexibility

o Which can be applied to a variety of research needs depending

on the level of structure used. Focus group can be relatively

unstructured where the research is exploratory and the issues

unknown. It also can be more structured for explanatory or

evaluative research where the purpose is more focused.

Group Environment

o The greatest strength of this method comes from the group

environment in which data are collected. 1 hour focus group

discussion can generate larger volume of data and greater

variety of perspectives rather than in-depth interview. Group

environment has more valuable contribution than simply

generating larger volume data, it is the interaction between

participants that leads to the unique type of data gathered in

focus group method. The group setting make participants feel

less threatened to share negative views, compared with an

individual interview setting (Green & Thorogood, 2004).

Beside those strength, there are also some limitations when using

focus group discussion according to (Hennink, 2014, pp. 30-35) such as:

Skills Required

o One of challenge when conducting focus group discussion is

that the fluid nature of a group discussion can lead to a less

controlled environment for data collection. Skilled and

experienced moderator needed to facilitate the discussion and

manage the group to generate useful data. Unskilled moderator

will leads to the collection of redundant or superficial.

Moderator also needs to ask open, neutral question yet keep

the discussion focused on the topics

Group Dynamics

o With group of participants that contain more than 2 people,

there is always a risk that someone will dominate the

discussion thereby stifling the contributions of others. Another

issues may be occurred called “group talk” where participants

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may not conform to what others have said even though they

may not actually agree, and this may make some participants

to withhold certain information in the group and reduce the

depth of information received (David & Sutton, 2004, p. 94).

These situations lead to the absence of discussion, a lack of

diversity in the discussion, and ultimately a reduction in data

quality.

o There are also limitations in the data that are collected in a

group setting. Focus group discussion can only cover a limited

number of topics, because there needs to be sufficient time for

participants to contribute and for a discussion on each issue.

Data and Analysis

o Focus group discussion generate a large volume of data and

data analysis can be time consuming

2.2.8.Unified Modeling Language (UML)

UML consist of standard notations for computer system for the

modeling of real-world objects.It is used to specify, visualize,modify and

construct and document the artifacts of an object-oriented software-intensive

system.

1. Activity Diagram

According to Satzinger, J.W., Jackson, R.B., and Burd, S.D.

(Satzinger, Jackson, & Burd, 2012) Activity diagram is created

based on the model of the chronological order of user’s

activities chronologically.

a. Swimlane

A rectangle in activity diagram that represents an entity

and stores their activity in a specific process.

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Figure 2.19 Notations of Unified Modelling Languages (Satzinger, Jackson, & Burd, 2012)

2. Use Case

Satzinger, J.W., Jackson, R.B., and Burd, S.D. (Satzinger,

Jackson, & Burd, 2012, p. 244) said that use-cases are the

activities that are performed by the system as well as the

features of the system for the users.

Table 2.3 Notations of Use Case Diagram

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Symbol Explanation

The functionality that the system supposed to has to meet the requirements.

Actors represent an entity that interacts with the system, could be a single individual or group or department.

54

Symbol Explanation

3. Use Case Description

Use Case Description is a text model, contains list of use cases

and detail information description about the process and usage

of that use cases, to giving an illustration how the system

works. According to Satzinger, J.W., Jackson, R.B., and Burd,

S.D. (Satzinger, Jackson, & Burd, 2012, p. 121) use case

description is a textual model that lists and describes the

process detail for each use case. There are some elements that

commonly used in use case description such as:

Use Case Name

Explained use case’s name

Scenario

How the actor do the activity

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Triggering Event

What event or activity that trigger this use case to be

created

Brief Description

Common description about the use case

Actor

The one who do the activity on this use case

Related Use Case

Any other use case that related to this explained use

case

Stakeholders

Entity that will be concerned with this created use case

Pre-Condition

Condition before this use case created

Post Condition

Condition after this use case created

Flow of Events

Explain the business process from this use case, that

contain any steps on this use case

Exception Condition

Contain information about possible problems that will

happen and make the business process doesn’t run

properly.

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Figure 2.20 Example of Use Case Description

4. Class Diagram

Class diagram is one of the main diagram in UML to illustrate

class or object blueprint on the system. Class diagram will

affect designed software architecture until the coding step. It

contains class, domain, and also relation between every

classes. Class diagram explain class usage on the system and

show interaction between relations by using:

Association and Multiplicity

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A static relation between class, commonly to illustrate

class that having another attribute from another class,

or class that should know the other class existence. The

line that connecting class called association and their

dependency called multiplicity

Figure 2.21 Multiplicity from association

(Satzinger, Jackson, & Burd, 2012, p. 102)

Aggregation

Relation between class that declare “has-a” relation

Figure 2.22 Example of Aggregation

Composition

Relation between classes that declare “part-of” relation

Figure 2.23 Example of Composition

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Inheritance and Generalization

Inheritance is a hierarchical relation between every

class. Class could be inherited from the other class then

inherit all attributes and methods from the parent, and

also add new function. Generalization is the opposite of

inheritance

5. Sequence Diagram

Based on Satzinger, J.W., Jackson, R.B., and Burd, S.D.

(Satzinger, Jackson, & Burd, 2012, p. 126), system sequence

diagram is a diagram that show message sequence between

external actors with the internal system related to use case that

already created before.

System sequence diagram itself contain some notations which

are:

Lifeline or Object Lifeline

Lifeline are the vertical dashed lines that the object’s

presence over time

Loop Frame

Used to explain repetition or looping that happen in the

use case

True or False Condition

OptFrame

AltFrame

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Figure 2.24 Notations of Sequence Diagram

6. First Cut Sequence Diagram

Basically using the same elements and notations from system

sequence diagram, the differences are coming from internal

objects and message on the system

Figure 2.25 Example of Sequence Diagram

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2.2.9.Prototyping

To build a solution, a prototype or a visual example are mistaken as

end-result instead of process to deliver solution. That led people to treat this

as end-result where feedback couldn’t captured. Fundamentally, prototype

needed to give users a grasp of what the solution is and how does it feel based

on given requirement (Unger & Chandler, 2009, pp. 152-153). The objective

is to adjust the looks and feel as demanded in requirement and also to make

the interface as friendly as possible to end users (Harker, 1993, p. 77). That

goes with one of key points of UX principle which are functional and

usability, which is not compromised.

There are two approaches to do the prototyping which are analog and

digital approach (Ralhan, 2000, pp. 3-6). In analog approach, this is what we

called as “PoP” or “prototyping on paper” or else “paper prototyping”. The

way to do it is the easiest one where designer use pen and paper to draw the

design as in figure 2.32.

Figure 2.26 Illustration of Paper Prototyping

(source: https://uxplanet.org/the-art-of-ux-sketching-and-paper-prototyping-

5dae5a1efc7d)

Meanwhile the digital prototyping is using any computer-aid tools to

construct a prototype without utilizing any programming language (Tedeschi,

2007). Tedeschi further explaned that digital prototyping helps user to believe

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more on the design by using 2D and 3D model. Unger suggested several

method to do digital prototyping which are wireframe using application such

as Balsamic Mockup (figure 2.33) that is low fidelity (meaning it is not

identical with the real one) mockup and realistic prototyping such as using

Axure RP Pro (figure 2.34) that is high fidelity (vice versa of low fidelity).

Figure 2.27 Balsamic Mockup

(source: Author)

Figure 2.28 Axure RP Pro

(source: Author)

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2.2.10. WFMS

WFMS or commonly known as workforce management system, is a

system that helps to optimize and maximize of quality and productivity of

sales person services (Calabrese, Capece, Costa, Di Pillo, & Paglia, 2013, pp.

177-178). Where this is actually being a part of customer relationship

management (CRM) which CRM exist to aid employee to know their

customer better and handling their inquiries. Meanwhile WFMS is to aid

employee work by knowing how their perform and know how to serve

customer better while achieving their key performance indicator (KPI) by

using set of tools, concepts, rules, and such in which by any means an

organization can control or directing the outcomes (Kumar & Singh, 2013, p.

239). Thus this also consider WFMS as part of Human Resource Information

System (HRIS) to maintain the performance and productivity of employees

(SelectHub, 2016).

In workforce management, the specific key areas which explaining a

complete workforce management under it are listed and explained as

following (Kumar & Singh, 2013):

Table 2.4 Explanation of each key area under Workforce Management

Key Area Explanation

Analysis of Work Analyze the work scientifically (especially about the

responsibility and requirement of people) and

dividing also distinguish the labors.

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Key Area Explanation

Forecasting and Scheduling Defining timeline and result that can be achieved

after certain period with calculation of human

resources to achieve the goal.

Designing the Jobs Creating new job from analysis of work by mixing it

with required skillset which it goal is to have a

design where it can get maximum productivity with

matched responsibilities.

Talent Acquisition Acquiring new talents.

Time, attendance, and

absence management

Create and defining suited work hours for employees

where they can suitably work at most with maximum

productivity thus not hindering other employee from

different unit or department as well.

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Key Area Explanation

Compensation and Benefit Defining how employee should be rewarded based on

their contribution to the organization.

Administration of

Workforce

Defining work culture and discipline and employees

must cope to them in order to bring expected work

environment.

Performance Management Defining employees’ performance with their

respective KPI or even building KPI based on

employee performance where to see their

productivity toward certain goals.

Career and Succession

Planning

Defining the career path of each employees based on

their performance, experience, communication, and

leadership to rise up in the organization.

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Key Area Explanation

Learning and Training

Management

The knowledge transfer among employees by using

(in example) e-learning platform. It helps employee

to get basic grip of certain common knowledge in

business practice and using specific tools,

framework, or system to cut down learning duration

to mastering it for maximum productivity and result.

However into the practice, workforce management that translated into

system are not usually covers all areas as explained above but can be

translated by module based on the needs and resource to build it (Hilton,

2015).

KPI is an indicator where employee can be measured whether he or

she performed and progressing well toward intended result (Reh, 2017) where

the KPI for each level of employee might differ and readjusted every once in

a while tuned with overall performance of employee. However a decent

reward will motivate them to perform better and one of the example of

motivate employee using reward, gradually increasing the workload or

difficulties of KPI along with increasing reward thus increasing motivation

and loyalty (Robbins & Judge, 2013, pp. 253-254). Though not only reward

that makes an employee become loyal to the organization (author will not

discussing it any further).