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Slide 1: AC 213 Seminar 3 Question 2 Done by: Chua Pei Wen Click to edit Master subtitle style Leng Zhi Jun Tan Hui Fen Patrick Xie 2/26/09
Slide 2: Some Background Information OneStop 2/26/09
Slide 3: Some Background Information • Our M is s ion S ta tem en t – We want to create shareholders' value by becoming a world class ornamental fish and accessories company through innovative and quality products and services. To be the World's Biggest Ornamental Fish and Aquarium & Pet Accessories Service Provider. • Our V is ion – 2/26/09
Slide 4: Question 1 • Identify how their processes were streamlined, and what concepts of BPR are implemented in these cases. 2/26/09
Slide 5: Old Processes Certain flaws and disadvantages: • Manual and tedious – Capturing data more than once Inventory system, stock taking process and the recognition of ID of the Arawana • Not integrated – 2/26/09
Slide 6: What is BPR? Business Process Re-engineering (BPR) : “BPR is the fundamental rethinking and r a dica l redesign of business processes to achieve dramatic process improvements, such as cost, quality, service, and speed.” 2/26/09
Slide 7: Principles of BPR • Capturing data once and at source, making the process paperless Making information accessible upstream and downstream Expanding across time and space (anytime / anywhere) Organize around outcomes, not tasks 2/26/09 • • • • Empowering employee, customer , supplier
Slide 8: B P R P r in ciple: Ca ptur in g da ta on ce a n d a t s our ce, m a k in g th e pr oces s pa per les s . B efore • Identification Tag s & s cientis t certificate no. for each Arowana are manually entered into s ys tem • S eparate s tock code required for each Arowana • Required to manually update s ys tem with newly g enerated certificate no. 2/26/09 -Tim e ta k e n fo r 1 s ta ff: u p to 2 h o urs - Elim in a te s h u m a n e rro r in c re a tin g un iq u e s e ria l n o . - Ne w s to c k c o d e n o t re q u ire d to b e g e n e ra te d m a n u a lly. •Automatic g eneration of unique s erial no. for each Arowana After • Arowama certificates are now printed directly from s ales orders
Slide 9: B P R P r in ciple: Ca ptur in g da ta on ce a n d a t s our ce, m a k in g th e pr oces s pa per les s (CON T ’) B efore • Arowana P addling record: 6 s teps proces s RFID tags for Arowana After •RF ID tag g ed to fis h to update paddling record: 2 s teps proces s - RFI ta g s a llo w s a uto g e n e ra tio n o f D d e liv e ry o rd e r - Be tte r tra c k a n d m o n ito r e a c h Aro w a n a • Improved s tock taking efficiency - Da ily p ro c e s s in g o f in v o ic e s & PO n o t a ffe c te d - Du rin g p h ys ic a l s to c k ta k e s , la te s t s to c k lo c a tio n s a n d q u a n titie s a re up d a te d in to s ys te m - Elim in a te s n e e d fo r m a n u a l a d ju s tm e n ts - Re d u c e s in v e n to ry c lo s in g fro m 7 d a ys to 3 d a ys • S tock taking problems -Dis c re p a n c ie s a re a d jus te d b y 2 s ta ffs m a n u a lly fo r a full d a y - I v o ic e s a n d p u rc h a s e s c o uld n o t b e n p o s te d d urin g s to c k ta k e An employee places the arowana n m o th ly re - Co m p a ris o n s b e tw e e againstnan RFID p o rts reader to record the fish's d o n 2 /2 s in g9 h a rdidentification tag. e u 6 /0 c o p ie s
Slide 10: B P R P r in ciple: E xpa n din g a cr os s tim e & s pa ce B efore • Old s ys tem cannot cater for multicurrencies - Co s ts o f s to c k s b o u g h t in fo re ig n c u rre n c y m a n ua lly c o n v e rte d to lo c a l c u rre n c y (Tim e ta k e n : u p to 3 0 m in s fo r 1 p urc h a s e ) - Sta ff m a n u a lly g e n e ra te re p o rts fo r c u s to m e rs in th e c u rre n c ie s th e y tra n s a c t in (Tim e ta k e n : 2 0 m in s p e r c us to m e r) - M n ua l re v a lua tio n o f tra n s a c tio n s a 2/26/09 After • With Micros oft Dynamics , cos ts are automatically converted to local currency - Allo w s b us in e s s to b e d o n e in fo re ig n c u rre n c y – c o s ts a u to m a tic a lly c o n v e rte d to lo c a l c urre n c y - Au to m a tic a lly c re a te re p o rts in c u rre n c ie s c u s to m e rs tra n s a c t in (Tim e ta k e n : 0 .1 s e c o n d ) - Ru n b a tc h jo b to a c c o u n t fo r a d jus tm e n ts to e xc h a n g e ra te s
Slide 11: B P R P r in ciple: M a k in g in for m a tion a cces s ible ups tr ea m a n d down s tr ea m & E m power in g Cus tom er s , E m ployees B efore After • C ompleted, packed orders are manually exported to E xcel and emailed to cus tomers to inform them - Ord e r p ro c e s s in g a p p lic a tio n m a p s c u s to m e r o rd e rs to in v e n to ry le v e ls -Ea s ily d o w n lo a d e d in to Exc e l a n d e m a ile d to th e c u s to m e rs - “Ou t-o f-s to c k ” re a s o n s c le a rly s ta te d to c u s to m e rs . Cu s to m e rs a re m o re c o n v in c e d to o rd e r a lte rn a tiv e ite m s t re d u c e d le a d tim e a n d in c re a s e o rd e r fu lfillm e n t! • F is h P acking S olution 2 /2 6 /0 9
Slide 12: B P R P r in ciple: M a k in g in for m a tion a cces s ible ups tr ea m a n d down s tr ea m & E m power in g Cus tom er s , E m ployees (CON T ’) B efore After • 2-3 hours to g enerate monthly s ales analys is - Ge n e ra tin g p e rfo rm a n c e re p o rts fo r in d iv id ua l s a le s fo rc e re q u ire d u p to 2 h o u rs - R eports can now be eas ily cus tomizable and analys ed by each s ales pers on and cus tomer. - E as ily and conveniently pres ent reports in many different ways as required by management • E nhanced manag ement reporting - Sp e c ia l re q u e s ts fo r re p o rts re q u ire d e xtra te d io us m a n u a l w o rk 2 /2 6 /0 9
Slide 13: Additional benefits of the system implemented 2/26/09
Slide 14: Question 2 What would be some potential concerns with managing IT in these companies in the long run? 2/26/09
Slide 15: 2b) What would be some potential concerns with managing IT in these companies in the long run? • S ecur ity & I m plem en ta tion is s ues : Threat of viruses. Firewall, antivirus systems needed Initial implementation of IT systems might have many errors, causing unnecessary problems and time delays. Time needed for system to stabilize. - • B en efits > Cos ts : Increase in efficiency enough to offset increase in 2/26/09 -
Slide 16: • B en efits > Cos ts (con’t): Back-up plans available in case system crashes? ( Business continuity management and disaster recovery plan) Constant need to update and maintain their system Higher fixed overhead costs of the IT system (as compared to a labour intensive industry, where the variable labour costs could be adjusted according to seasonal demands or market conditions.) 2/26/09 - - -
Slide 17: Question 3 • What can other SMBs learn from the experiences of Qian Hu? 2/26/09
Slide 18: • Weigh costs and benefits of implementing IT in their business - 2c) What can other small and medium, businesses (SMBs) learn from the experience of Qian Hu? Purchase off-the-shelf system, or create own system? Depends on the specific needs of their company through understanding the business processes - Get the most suitable products at the most affordable prices • • • IT could help to improve Customer Relationship Management, and improve information flow internally and externally Embrace changes Not just automation, but reengineering of work 2/26/09