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News Highlights
Proposed 10% corporate income tax on software business withdrawn
Lets start a soul searching here by going back to the question already asked. Why we need IT in Bangladesh? Very unfortunately, the focus now is to earn the precious green bag for the country. Its a Trillion dollar global IT outsourcing market waiting for us to get into. Our neighbors have made quite a distinct footprint there. Why cant we get a small share in this large pie? But there is another side of the coin. The whole world is going very fast with the process of IT enabling of their own countries. What we have done? While talking about the development of IT in our country, this question is forgotten most often than not. How many of us really think that we need to refocus our IT thought process in this area? Let me again pose the question, whey we need IT in Bangladesh? The answer should be, to develop our country. Then how should we place our IT industry vis-vis our countrys development? It can be a tool to earn much needed foreign currency by grabbing a share from the IT outsourcing market and then use this foreign currency to buy all kind of development tools including IT services from around the globe to develop our country. Can we look through the dialectical fallacy in this thought process? We are talking about exporting a service to buyback the
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Editorial Board
Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Sarwar Alam, Chairman A K M Fahim Mashroor, Editor Mustafa Jabbar T I M Nurul Kabir Habibullah N Karim Forkan Bin Quasem Rafiqul Islam Rowly A. Towhid Fokhruz Zaman
However, in the budget proposal presented by Honorable Finance Minister Mr. Saifur Rahman on June 9, 2005, 10% income tax on software business was proposed. BASIS strongly opposed this initiative and took a series of programs to convince the concerned authority on the detrimental impact of this measure on the software industry. In an immediate reaction, BASIS arranged a press conference on June 11, 2005. BASIS board appraised the press about their grave
Roundtable discussion on Budget 2005-06: from the left to right; Prof. Zafar Iqbal, Mr. Aftab Ul Islam, Mr. S. M. Iqbal, Mr. Sarwar Alam, Mr. Abdul Awal Mintoo, Mr. Akhtaruzzaman Manju, Mr. Syed Marghub Murshed
Case
The Small and Medium Enterprise (SME) is one of the most vibrant business sectors. The role of technology, especially IT and IT Enabled Service (ITES) for the business sustainability and high growth for SMEs is very important. Keeping this in mind, in this newsletter a case study on successful use of IT at Multiphama, a small size medicine store is presented.
CASE STUDY
in manual errors, better employee satisfaction through ease of operation, increased profitability due to least pilferage and up to date inventory management etc. Additionally the decision support reports generated by the software help the MPL management in planning and monitoring their business better. One of the employees who was more familiar with manual processes prior to joining MPL, said that the automation process has made his job easier as he does not have to go through some of the time consuming and cumbersome manual data processing. He also mentioned an interesting benefit he gets through this automation. He said, for some tasks for which he had to wait for management decisions are not needed in an automated environment as the management can monitor and give decision quickly and instantaneously. This saves time for him and also gives him a sense of satisfaction with the feeling that he is also a part of the management. The solution has provided MPL more efficiency in their business. However, as with any solution - manual or automated, there will always be requirements for further development and fine tuning. The same is true for the case of MPL. They said that at present they have around 2-3% operational errors caused by administrative difficulties. The lack of automation at BIRDEM and few input mistakes from operators are the major reasons for the errors. The MPL management is constantly updating and fine tuning their solution and perusing BIRDEM for their cooperation in this regard to reduce the errors. Overall, the management and the employees of MPL are upbeat on use of computer technology and strongly recommend technology as an effective tool in increasing the business efficiency for smaller businesses. MPL managements decision to expand the support to other processes of the business provides testimonial to the benefit of IT in a SME setup.
The Company
Multipharma Limited (MPL), a medicine store owned and operated by private entrepreneurs has been in business since 2004. The store is located at BIRDEM, 122, Kazi Nazrul Islam Avenue, Dhaka. At present, MPL has 7 full time employees. Of these employees 3 are involved in sales and customer services while 3 are carrying out the back office management. The General Manager is the top official directly involved with the day to day operation.
Challenges
The nature of services and operation for MPL has some unique aspects that are different from any ordinary medicine store. MPL provides patient-wise services to BIRDEM patients and also serves the general customers. The attachment with BIRDEM patients posed some challenges for MPL management such as proper identification of the patients, medicine delivery to the specific patients and final bill adjustments before the patients leave the hospital. Additionally, the wide range of product base, managing the rush of patients (that can sometimes go as high as 1200 per hour) and managing inventory were few other challenges the MPL management had to overcome when they started their business. One of the directors, Mr. Syed Istiaq Ahmed, being technology savvy, thought of introducing an automated solution to handle the operations of MPL. With this intention, Mr. Ahmed under his own supervision engaged some software engineers in developing a solution fully customized to serve MPL purposes. With successful development and implementation of the solution, MPL started its operation with IT support from the very first day it went into operation.
The Solution
The main objective of the project was to provide accuracy and speed to the sales and inventory processes and integrate the two processes together. In the sales side the customer (or patient) management, sales transaction and billing were the major focuses. On the other hand, inventory management and decision support reporting were the focuses at the back office management. Built on MS SQL Server back-end and Visual Basic front-end the solution was made user friendly to increase the acceptance level. 3 outdoor (sales terminal) PCs, 3 indoor (back office management) PCs connected to a dedicated server construct the hardware network for MPL automation project.
Business Benefit
The highest level of satisfaction at the sales counter and the efficient management of the BIRDEM patients medicine requirements probably would have been impossible if MPL had not decided to use automation support. The other benefits the solution brought at the operational levels were business process supports on product detailing, procurement and management reporting. The management at MPL said that the use of the software has helped them in areas such as accuracy in data processing, reduction The case of Multipharma Limited is a good example of how small enterprises can avail the benefits of the IT to enhance their business efficiencies. This case also provides a strong argument against the common misconception that availing IT support is expensive and that only large organizations can afford this. The successful implementation of IT support at MPL shows that management intention and comprehension of the benefit are the most crucial steps on availing the benefits of technology.
Ambee Pharmaceuticals Ltd. Unilever Bangladesh Ltd. Dandy Dying Ltd. PHP Group HR textile Ltd. South East Bank Ltd. Khwaja Yunus Ali Medical College & Hospital
Strategic roadmap for Bangladesh ICT sector Offshore phenomenon market trends and challenges Export opportunities for animation services Public-private partnership for eGovernance initiatives Role of e-Governance in national productivity IPR enforcement challenges International standard requirements for 2D animation Legal and financial regulation issues for eCommerce in Bangladesh Financing issues for software companies Use of ICT as competitiveness tool for export oriented RMG sector
The seminar presentations as well as detailed proceedings are available at BASIS website
(www.basis.org.bd/seminar).
A two member BASIS delegation participated at the OutsourceWorld London 2005 held in Royal Horticultural Halls & Conference Centre, Central London from June 29, 2005 to June 30, 2005. OutsourceWorld London 2005 is Europes premier outsourcing event, offering delegates a definitive learning platform about the revenue and resource benefits of implementing outsourcing solutions. 63 exhibiting companies from UK, USA, India, Philippines, Hong Kong, UAE, Romania, Macedonia and Malta participated in this years event. The seminars and roundtable discussions were other highlights of the event. BASIS delegation at the event attended the seminars and met with potential outsourcing partners. They presented the opportunities of Bangladesh as an outsourcing destination and promoted the SoftExpo 2005.
BASIS SoftExpo 2005 will be held from November 30, 2005 to December 05, 2005. Following the grand success of SoftExpo 2004, this years event aims to be even bigger and better in showcasing software products, IT Enabled Services (ITES) and ICT system solutions in Bangladesh. The exhibitors registration process has already started. For details please contact BASIS office. (www.softexpo.com.bd) Training on Software Testing & Software Quality Management
Aug 15, 2005 - Aug19, 2005
BASIS will organize training programs on Software Testing & Software Quality Management from August 15, 2005 to August 19, 2005 at the BASIS Conference Hall. Mr. Pradeep from QAI India will conduct both the trainings. During this training program Mr. Pradeep will also meet with representatives of BASIS member companies and provide consultancy support to them on software quality issues and CMM implementation. Training on software project management (PMP training)
Sep 24, 2005 - Sep 28, 2005
The Preparation for Project Management Certification training program for the second batch will be held from September 24, 2005 to September 28, 2005 at the BASIS Conference Hall. Mr. V Ravindran, PMP the Managing Consultant of ProWiz Singapore will conduct the training. It may be mentioned that Mr. Ravindran was the trainer for the first batch also. BASIS to participate at Expo Bangladesh 2005
Sept 27, 2005- Sept 29, 2005
BASIS members will participate at the Expo Bangladesh, a one country exhibition to be held in UK from September 27, 2005 to September 29, 2005. 5 companies will participate at this fair. BASIS to participate at GITEX 2005
Sept 25, 2005 - Sept 29, 2005
BASIS members Anupam Infotek Limited, Computer Ease Limited, Millennium Information Solution Ltd. and Reve Systems will participate in this years GITEX fair to be held in Dubai from September 25, 2005 to September 29, 2005 at Dubai World Trade Centre Complex.
IT export
2000-01 Export Yearly Growth 2.24 2001-02 2.8 25% 2002-03 4.2 51% 2003-04 7.2 71%
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