Intern Final PDF

An Internship Report
On
Information System for SPIDER Group BD Ltd.
Submitted By
Md. Refat Ahmed
ID: 06-036
Department of Management Information Systems
Supervised By
Mohammad Moqbul Hossain Bhuiyan
Professor
Date of Submission: March 18, 2015

Faculty of Business Studies
University of Dhaka
March 18, 2015

Professor
Faculty of Business Studies
University of Dhaka
Subject: Letter of Transmittal
Sir,
With due respect, I have the pleasure to submit my Internship report on Information
System for SPIDER BD GROUP Ltd. to partially fulfill the requirements of the BBA
degree under your supervision. It has been a worthwhile experience for me undertaking
such a report work to get exposure to the real life of software. I have tried my best to
satisfy the academic requirements.
In my report, I tried to reflect a partial scenario of the significance of having an

Information System in Spider BD Group Ltd. and how to build an Information system for
the organization. I have used both primary and secondary data and have tried to prepare
the report according to your instructions. I also confess that this report has some
limitations as well because I got limited resources
I hope you will appreciate my sincere effort.
Sincerely yours
..
Md. Refat Ahmed
ID: 06-036
University of Dhaka
DECLARATION
I declare that the Internship report entitled Information System for SPIDER BD
GROUP. Embodies the results of my own research work, perused under the supervision
of Mohammad Moqbul Hossain Bhuiyan, Professor, Department of Management
Information Systems, Faculty of Business Studies, the University of Dhaka, Bangladesh.
I further affirm that the work reported in this internship report is original and is no part
or any other students for the completion of BBA or other degree have submitted whole
of the report.
Sincerely yours
.
Md. Refat Ahmed
ID: 06-036
University Of Dhaka
ii
CERTIFICATE OF SUPERVISOR
This is to certify that Md. Refat Ahmed is a student of BBA, Department of Management
Information System, and ID: 06-036, Faculty of Business Studies, University of Dhaka
successfully his completed Internship Report entitled System for SPIDER BD
GROUP under my supervision.
He has done his job according to my supervision and guidance. He has tried his level best
to accomplish this job successfully. I think this program will help him in the future to
build up his career. I wish his success and prosperity.
.
Professor
University of Dhaka
iii
PREFACE
First of all I would like to be grateful to almighty Allah, the merciful and benevolent that
has enabled to complete this report.
The Internship, a part of academic discipline, for the BBA students has been designed to
acquire practical knowledge. It is expected that the integration of knowledge theories and
practices will enable us to become effective. Through this program, I have got chance to
acquire some practical experience to an IT section of a firm, which is expected to
enlighten my career.
As a BBA student, it was my great pleasure to be in touch with the organization

SPIDER Group BD Ltd. Which is undoubtly a leading Garment Factory in Bangladesh.
This Internship program has given me immense opportunity to minimize the gap between
theoretical and practical knowledge. My practical knowledge thorough performing
different activities of the organization have enhanced my view, mission and acceptability
as well as have increased my overall experience about deal with real world phenomenon.
Md. Refat Ahmed

ID: 06-036
iv
ACKNOWLEDGEMENT
At the very beginning, I acknowledge the infinite blessing and profound kindness of
Almighty Allah- the supreme authority of the universe. I also acknowledge the loving
support of my teachers.
This Internship report might never have been completed without the necessary practical
knowledge, assistance of many books, articles, websites, and primary data. It enhanced
my knowledge on Software making activities as well as Software business. Thanks to all
those persons, who have assisted me, providing me co-operation, books and articles, I
would like to express my special gratitude to my supervisor Mohammad Moqbul Hossain
Bhuiyan for his supervision, co-operation and advises.
This Internship report benefitted greatly from the effort of my loving and honorable
parents and my friends who contributed advice and providing interesting information.
They gave feedback and helped in completing the report successfully. I would like to
thank my parents and all my friends for their cooperation. Without their help, the creation
of this Internship report would not have been possible.
Finally I want to express my special thanks to Employees of the Information Technology

Department of Spider BD Group, Where I have completed my project work by taking
practical knowledge from them. I am also grateful to all other employees of Spider BD
Group for their support and assistance. Specially, I must express my special thanks to Mr.
S M Mofijur Rahman, Manager, Department of Information Technology, Spider BD
Group who helped me with administrative matters.
Md. Refat Ahmed

ID: 06-036
EXECUTIVE SUMMERY
Information system (IS) is the study of complementary networks of hardware and software
that people and organizations use to collect, filters, and process, create, and distribute data.
An information system can be a mainframe, mid-range or network computer concept that
allows distributed processing for a group of users accessing the same software application.
These systems provide management with control over their data, with various tools to extract
data or view data structures and records. The role of an information system is to foster a data
management environment that is robust and can be expanded according to an organizations'
strategic plan for information processing. An information system also satisfies diverse
information needs in an organization. It attempts to integrate all departments and functions
across a company onto a single computer system that can serve all those different
departments' particular needs. Here It will be described how IS impact Management system
of Spider BD Group and enrich operational capability with good financial strength of the
company.
In this report, it will be tried to reflect a partial scenario of the significance of having an
Information System in an Organization and how to build one. That is a tall order, building a
single software program that serve the needs of people in finance as well as it does the people
in human resources and in the warehouse. Each of those departments typically has its own
computer system, each optimized for the particular ways that the department does its work.
But INFORMATION SYSTEM combines them all together into a single, integrated software
program that runs off a single database so that the various departments can more easily share
information and communicate with each other. That integrated approach can have a
tremendous payback if companies install the software correctly.
It is found that Information System adopters are consistently higher in performance across a
wide variety of measures than non-adopters. The results suggest that most of the gains occur
during the (relatively long) implementation period, although there is some evidence of a
reduction in business performance and productivity shortly after the implementation is
complete. However, the financial market consistently rewards the adopters with higher
market valuation both during and after the adoption, consistent with the presence of both
short term and long term benefits.
vi
Table of Contents
CHAPTER 1: INTRODUCTION ...........................................................................................1
1.1 Introduction: ..................................................................................................................... 1
1.2 Statement of the Study: .................................................................................................... 1
1.3 Objectives of the Study:..................................................................................................... 2
1.4 Rationale of the Study: ...................................................................................................... 2
1.5 Scopes of the Study: .......................................................................................................... 2
1.6 Research Methodology:..................................................................................................... 3
1.7 Limitation of the Study: ..................................................................................................... 4
CHAPTER 2: LITERATURE REVIEW ...................................................................................5

2.1 Literature Review: ............................................................................................................. 5
2.2 History of Information System in Business: ........................................................................ 5
2.3 Advantages of Using Information System: ......................................................................... 6
2.4 Disadvantages of Information System:............................................................................... 7
2.5 Architecture of Information Systems in an organization: ................................................... 8
2.6 INFORMATION SYSTEM Requirements (Hardware & Software): ......................................... 9
2.7 INFORMATION SYSTEM in Business Performance: ........................................................... 10
CHAPTER 3: ORGANIZATIONAL OVERVIEW ...................................................................12

3.1 Organizational Overview (Spider Group Bangladesh Ltd.) ................................................ 12
3.2 Core Value:...................................................................................................................... 12
3.3 Focus: .............................................................................................................................. 12
3.4 Their Slogan: ................................................................................................................... 13
3.5 Their Vision: .................................................................................................................... 13
3.6Their Mission: .................................................................................................................. 13
3.7 Their Motto: .................................................................................................................... 13
3.8 Their Strength: ................................................................................................................ 13
3.9 FACTORY INFORMATION ................................................................................................. 14
3.10 Compliance: .................................................................................................................. 15
3.11 Health and Safety: ......................................................................................................... 15
CHAPTER 4: INFORMATION SYSTEM IN SPIDER GROUP BD LTD ...................................16

4.1 INFORMATION SYSTEM in Spider Group Bangladesh Ltd .................................................. 16
4.2 Background of INFORMATION SYSTEM in SPIDER GROUP BD: .......................................... 16
4.3 Objectives of INFORMATION SYSTEM in SPIDER GROUP BD. ............................................ 17
4.4 Architecture of INFORMATION SYSTEM in Spider Group BD. ............................................ 17
4.5.1 .1General Ledger-Features ........................................................................................... 18
4.5.1 .2 Payables-Features.............................................................................................. 19
4.5.1 .3 Receivables-Features ......................................................................................... 19
4.5.2 Asset Management: ..................................................................................................... 19
4.5.2.1 Active Asset Management Landscape: ................................................................ 19
4.5.2.2 Benefits: ............................................................................................................. 20
4.5.3Activity Management: ................................................................................................... 20
4.5.4 Document Management: .............................................................................................. 21
4.5.5 Users: ........................................................................................................................... 21
4.5.6 Human Resource Management in INFORMATION SYSTEM: .......................................... 21
4.5.7 Costs-Benefit Analysis:.................................................................................................. 22
4.5.8 Financing: ..................................................................................................................... 23
4.5.9 Revenue Assumptions: ................................................................................................. 24
4.5.10Financial Analysis: ....................................................................................................... 28
4.5.11 Recommendation: ...................................................................................................... 28
4.5.12Critical Success Factors: ............................................................................................... 29
4.5.13 Monitoring Strategies: ................................................................................................ 29
4.5.14 Present status:............................................................................................................ 30
4.6 INFORMATION SYSTEM Analysis Scope for Spider Group BD: ........................................... 30
4.6.1 Scenario Financial Accounting Analysis: ................................................................. 30
4.6.2 Scenario Controlling Analysis: ................................................................................ 30
4.6.3 Scenario Sales Analysis: ......................................................................................... 31
4.6.4 Scenario Cross-Functional Analysis: Financial and Sales Data: ................................ 31
4.6.5 Scenario Sales Planning: ........................................................................................ 32
4.6.6 Scenario Purchasing Analysis: ................................................................................. 32
4.6.7 Scenario Inventory Analysis: ................................................................................... 32
CHAPTER 5: RESULTS & FINDINGS [Scopes of INFORMATION SYSTEM in Bangladesh] ..............33

5.1 Results & Findings: .......................................................................................................... 33
5.2 Scopes of INFORMATION SYSTEM for Bangladesh: .......................................................... 33
5.3Birth & Death Department: .............................................................................................. 34
5.4 Property Tax Department: ............................................................................................... 35
5.5 Water Supply Department: .............................................................................................. 35
5.6 Building Permission Department: .................................................................................... 35
5.7 E- Procurement: .............................................................................................................. 36
5.8 Licenses department: ...................................................................................................... 36
5.9 Solid waste Management: ............................................................................................... 36
5.10 Accounts Department:................................................................................................... 37
5.11 Asset management Department: ................................................................................... 37
5.12 Material management Department: .............................................................................. 37
CHAPTER 6: IMPLEMENTATION, ANALYSIS & SUGGESTION ..........................................38

6.1 Implementation: ............................................................................................................. 38
6.2 The Hidden Costs of IT: .................................................................................................... 39
6.3 Training: .......................................................................................................................... 39
6.4 Integration and Testing: .................................................................................................. 39
6.5 Data Conversion: ............................................................................................................. 39
6.6 Data Analysis: .................................................................................................................. 40
6.7 Consultants Ad Infinitum: ................................................................................................ 40
6.8 Replacing Your Best and Brightest: .................................................................................. 40
6.9 Implementation Teams Can Never Stop:.......................................................................... 41
6.10 Waiting for ROI: ............................................................................................................. 41
CHAPTER 7: CONCLUSION & REFERENCES .....................................................................42

7.0 Conclusion:...................................................................................................................... 42
8.0 References: ..................................................................................................................... 43
Questionnaire: ...................................................................................................................... 45
CHAPTER 1
INTRODUCTION
1.1 Introduction:
Enterprise Resource Planning software, or INFORMATION SYSTEM, doesn't live up to
its acronym. Forget about planningit doesn't do thatand forget about resource, a
throwaway term. But remember the enterprise part. This is INFORMATION SYSTEM's
true ambition. It attempts to integrate all departments and functions across a company
onto a single computer system that can serve all those different departments' particular
needs. Here I will describe how INFORMATION SYSTEM impact MIS system of
Spider Group Bangladesh and enrich operational capability with good financial strength
of the company.
1.2 Statement of the Study:

Information System (IS) in relation to Enterprise Resource Planning (INFORMATION
SYSTEM) Software System in Spider Group Bangladesh Ltd. is a partial fulfillment of
the BBA degree under the supervision of Mohammad Moqbul Hossain Bhuiyan,
Professor, Dept. of MIS, Business Administration, and University of Dhaka.
In my report, I will try to reflect a partial scenario of the life cycle of MIS in relation to
Enterprise Resource Planning software system by using real life experiences. That is a
tall order, building a single software program that serve the needs of people in finance as
well as it does the people in human resources and in the warehouse. Each of those
departments typically has its own computer system, each optimized for the particular
ways that the department does its work. But INFORMATION SYSTEM combines them
all together into a single, integrated software program that runs off a single database so
that the various departments can more easily share information and communicate with
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Chapter 1
each other. That integrated approach can have a tremendous payback if companies install
the software correctly. Take a customer order, for example. Typically, when a customer
places an order, that order begins a mostly paper-based journey from in-basket to inbasket around the company, often being keyed and re-keyed into different departments'
computer systems along the way. All that lounging around in in-baskets causes delays
and lost orders, and all the keying into different computer systems invites errors.
Meanwhile, no one in the company truly knows what the status of the order is at any
given point because there is no way for the finance department, for example, to get into
the warehouse's computer system to see whether the item has been shipped. "You'll have
to call the warehouse," is the familiar refrain heard by frustrated customers.
1.3 Objectives of the Study:

The general objective of this study is to learn the significance of INFORMATION
SYSTEM in MIS for organizations like SPIDER GROUP BANGLADESH. The specific
Objectives of this study are as follows:
Primary Objectives:
The primary objective of my study is to learn about the Management Information System
of Spider Group Bangladesh Ltd using Enterprise Resource Planning (INFORMATION
SYSTEM) Software System and develop an information system for the organization.
Secondary Objectives:
Eliminates the problem of synchronizing changes between multiple systems.
Permits control of business processes that cross functional boundaries.
Provides top-down view of the enterprise (no "islands of information"), real time
information is available to management anywhere, anytime to make proper decisions.
Reduces the risk of loss of sensitive data by consolidating multiple permissions

and security models into a single structure.
Shorten production lead time and delivery time
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Information Systems for SPIDER Group BD Ltd.
Chapter 1
1.4 Rationale of the Study:

The purpose of this analysis is to describe the necessity for a comprehensive financial,
HR, SCM & CRM with asset, activity, and document management system in Spider
Group Bangladesh Limited. In Bangladesh only few research are done regarding
Management
Information
Systems
through
INFORMATION
SYSTEM.
But
INFORMATION SYSTEM will play vital role to narrowing the path between
information & organization growth.
There are three major reasons why companies undertake IT:
To integrate financial data.
To standardize manufacturing processes.
To standardize HR information.
1.5 Scopes of the Study:

There are huge scopes to implement the Information Systems in private & public
organization. Govt. has the scopes to implement INFORMATION SYSTEM for MIS
Report.MIS is envisaged to undertake Enterprise Wide Resource Planning approach,
enabling Bangladesh to use various data in most optimal way and provide services to
citizens in efficient and effective manner. Various functional modules to be covered
under MIS are given below:
Birth & Death department
Property Tax Department
Water Supply Department
Building Permission Department
E- Procurement
Licenses department
Solid waste Management
Accounts Department
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Chapter 1
Some private business entities for IS:
Enterprise Resource Planning (INFORMATION SYSTEM) in

Telecommunication Sector
IT in Real Estate Industry
IT in Garments industry
1.6 Research Methodology:

The study requires systematic procedure from selection of the topic to final report
preparation, for collaborating data and information have collected from primary and
secondary sources in both qualitative and quantitative form. I will also use my experience
& findings by using different charts & tables which are presented in analysis part.
1.6.1 Primary Sources of Data:
Face to face conversation with the representative of different department of

Spider Group Bangladesh Ltd.
Face to face conversation with the respective customer who is getting benefit
from IT.
Practical work Experience using IT.
Relevant field study is provided by the concern officers.
1.6.2 Secondary Sources of Data:
Annual reports of Shareholders & Customers.
Management & Monitoring software reports & accumulated data.
Websites & online reports of organization.
1.6.3 Data Presentation& Testing:

I have conducted a sample survey of 30 respondents from different department of Spider
Group Bangladesh and the data were analyzed with the SPSS software. The analysis
contains some statistical procedure and hypothesis testing is one of those.
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Chapter 1
I have calculated the coefficients of the analysis and also the correlation between them.
To come to a perfect decision we need to place several hypothetical testing of some
important factors.
The factors are:
Revenue
Profit
Employee efficiency
Sales forecast
Customer retention
1.7 Limitation of the Study:
For internal security & privacy policy of organization all of the data may not be
published or collected from SPIDER GROUP BANGLADESH.
MIS through INFORMATION SYSTEM is a sensitive part for the organization,

so all detail & real life data cannot be published due to business security of
shareholders, customers etc.
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CHAPTER 2
LITERATURE REVIEW
2.1 Literature Review:

Information System (IS) is the study of complementary networks of hardware and
software (see information technology) that people and organizations use to collect, filters,
and process, create, and distribute data.
The study bridges business and computer science using the theoretical foundations of
information and computation to study various business models and related algorithmic
processes within a computer science discipline. Computer information system(s) (CIS) is
a field studying computers and algorithmic processes, including their principles, their
software and hardware designs, their applications, and their impact on society while IS
emphasizes functionality over design. That is a tall order, building a single software
program that serve the needs of people in finance as well as it does the people in human
resources and in the warehouse. Each of those departments typically has its own
computer system, each optimized for the particular ways that the department does its
work. But INFORMATION SYSTEM combines them all together into a single,
integrated software program that runs off a single database so that the various
departments can more easily share information and communicate with each other.
2.2 History of Information System in Business:

Year
Main activities
Skills required
1970s
Mainframe computers were Programming in COBOL

used, Computers and data
were centralized, Systems
were tied to a few business
functions:
payroll,
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Chapter 2
inventory, billing etc.

1980s
1990s
2000s
Main focus was to automate

existing processes, PCs and
LANs
are
installed,
Departments set up own
computer systems,
End-user computing with
Word Processors Such as:
MS Word, MS Excel, Power
Point and Spreadsheets that
makes departments less
dependent on the IT
department.
Wide
Area
Networks
(WANs) become corporate
standards
Senior management looks
for system integration and
data integration. No more
stand-alone systems.
Wide
Area
Networks
expand via the Internet to
include global enterprises
and business partners
supply
chain
and
distribution
Senior management looks
for data sharing across
systems.
Basic Computing and Basic

Computer Networking etc.
Network support, systems

integration, administration
of Dynamic Data Ware
House etc.
Network support, systems

integration etc.
Main focus is efficiencies

and speed in inventory,
manufacturing, distribution
2.3 Advantages of Using Information System:

In the absence of an Information system, a large manufacturer may find itself with many
software applications that cannot communicate or interface effectively with one another.
Tasks that need to interface with one another may involve:
INFORMATION SYSTEM systems connect the necessary software in order for

accurate forecasting to be done. This allows inventory levels to be kept at
maximum efficiency and the company to be more profitable.
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Chapter 2
Integration among different functional areas to ensure proper communication,

productivity and efficiency
Design engineering (how to best make the product)
Order tracking, from acceptance through fulfillment
The revenue cycle, from invoice through cash receipt
Information systems centralize the data in one place. Benefits of this include:
Eliminates the problem of synchronizing changes between multiple systems

consolidation of finance, marketing and sales, human resource, and manufacturing
applications
Permits control of business processes that cross functional boundaries
Provides top-down view of the enterprise (no "islands of information"), real time
information is available to management anywhere, anytime to make proper
decisions.
2.4 Disadvantages of Information System:

Problems with Information systems are mainly due to inadequate investment in ongoing
training for the involved IT personnel - including those implementing and testing changes
as well as a lack of corporate policy protecting the integrity of the data in the
INFORMATION SYSTEM systems and the ways in which it is used.
Disadvantages:
Customization of the INFORMATION SYSTEM software is limited.
Re-engineering of business processes to fit the "industry standard" prescribed by

the INFORMATION SYSTEM may lead to a loss of competitive advantage.
INFORMATION SYSTEM systems can be very expensive. (This has led to a

new category of "INFORMATION SYSTEM light" solutions.)
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Chapter 2
ERPs are often seen as too rigid and too difficult to adapt to the
specific workflow and business process of some companiesthis is cited as one
of the main causes of their failure.
Many of the integrated links need high accuracy in other applications to work
effectively. A company can achieve minimum standards, and then over time
"dirty data" will reduce the reliability of some applications.
Once a system is established, switching costs are very high for any partner
(reducing flexibility and strategic control at the corporate level).
The blurring of company boundaries can cause problems in accountability, lines

of responsibility, and employee morale.
Resistance in sharing sensitive internal information between departments can

reduce the effectiveness of the software.
Some large organizations may have multiple departments with separate,

independent resources, missions, chains-of-command, etc., and consolidation into
a single enterprise may yield limited benefits.
2.5 Architecture of Information Systems in an organization:

INFORMATION SYSTEMS have chosen Microsoft technologies for organization
Microsoft Windows Server System is a comprehensive, integrated, and interoperable
server infrastructure that helps reduce the complexity and costs of building, deploying,
connecting, and operating agile business solutions. Windows Server System helps
customers create new value for their business through the strategic use of their IT assets.
With the Windows Server operating system as its foundation, Windows Server System
delivers dependable infrastructure for data management and analysis; enterprise
integration; customer, partner, and employee portals; business process automation;
communications and collaboration; and core IT operations including security,
deployment, and systems management.
The problem for IT departments is typically not insufficient functionality; rather, it is that
critical business systems such as customer relationship management (CRM) and
enterprise resource planning (INFORMATION SYSTEM) operate in isolation from other
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Chapter 2
critical business systems-despite the fact that business processes often span multiple
applications. To obtain an end-to-end view of a complex business process necessitates
integration of information and process silos. In the past, this has been accomplished
either though time-consuming manual interventions, or through hard-coded solutions that
are difficult to maintain.
INFORMATION SYSTEM network architecture is scalable to cater the needs of BPM
requirements. Architecture diagram shown below provides the complete gist of its
extensibility, interoperability, scalability and the flexibility to integrate with various third
party applications or popular Microsoft products.
2.6 INFORMATION SYSTEM Requirements (Hardware & Software):
Server Side:
Pentium IV or Higher
1GB RAM
Windows 2000 / XP / 2003 server
Internet Explorer 5.0 or Higher with resolution set to 1024 x 768 pixel
MS SQL Server 2000
Adobe Reader 5.0 or Higher
240 GB HDD
Backup devices
Client Side:
Pentium III or Higher
512 RAM
Graphics (1024 x 768 pixel)
Windows 2000 / Me/NT/XP / 2003
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Chapter 2
2.7 INFORMATION SYSTEM in Business Performance:

INFORMATION SYSTEM automates the tasks involved in performing a business
processsuch as order fulfillment, which involves taking an order from a customer,
shipping it and billing for it. With INFORMATION SYSTEM, when a customer service
representative takes an order from a customer, he or she has all the information necessary
to complete the order (the customer's credit rating and order history, the company's
inventory levels and the shipping dock's trucking schedule). Everyone else in the
company sees the same computer screen and has access to the single database that holds
the customer's new order. When one department finishes with the order it is automatically
routed via the INFORMATION SYSTEM to the next department. To find out where the
order is at any point, one need only log into the INFORMATION SYSTEM and track it
down. With luck, the order process moves like a bolt of lightning through the
organization, and customers get their orders faster and with fewer errors than before.
INFORMATION SYSTEM can apply that same magic to the other major business
processes, such as employee benefits or financial reporting.
There are three major reasons why companies undertake INFORMATION

SYSTEM:
To integrate financial data As the CEO tries to understand the company's
overall performance, he or she may find many different versions of the truth.
Finance has its own set of revenue numbers, sales has another version, and the
different business units may each have their own versions of how much they
contributed to revenues. INFORMATION SYSTEM creates a single version of
the truth that cannot be questioned because everyone is using the same system.
To standardize manufacturing processes manufacturing companies
especially those with an appetite for mergers and acquisitionsoften find that
multiple business units across the company make the same widget using different
methods and computer systems. Standardizing those processes and using a single,
integrated computer system can save time, increase productivity and reduce
headcount.
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Chapter 2
To standardize HR information especially in companies with multiple

business units, HR may not have a unified, simple method for tracking employee
time and communicating with them about benefits and services. INFORMATION
SYSTEM can fix that.
In the race to fix these problems, companies often lose sight of the fact that
INFORMATION SYSTEM packages are nothing more than generic representations of
the ways a typical company does business. While most packages are exhaustively
comprehensive, each industry has its quirks that make it unique. Most INFORMATION
SYSTEM systems were designed to be used by discreet manufacturing companies (who
make physical things that can be counted), which immediately left all the process
manufacturers out in the cold. Each of these industries has struggled with the different
INFORMATION SYSTEM vendors to modify core INFORMATION SYSTEM
programs to their needs
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CHAPTER 3
ORGANIZATIONAL OVERVIEW
[SPIDER Group Bangladesh Ltd.]
3.1 Organizational Overview (Spider Group Bangladesh Ltd.)

SPIDER GROUP 100% export oriented high quality garments Manufacturer Company.
Since 2007, with a commitment of Delivery on time with Perfect Quality, a trait that they
have worshipped and sincerely followed, they believe that the energy of their business is
their customer, adapted in their unique business model that enjoys competence in design,
production, distribution, and delivery through their extensive network. While racing in
this pursuit they have made sure to offer the highest level of buyer satisfaction throughout
the globe. They strive for excellence and in everything that they do and constantly build
on their reputation in readymade/apparel garments sector by bridging compatibility in
people, society and the environment. This is their price and promise, to offer all their
customers a rewarding shopping experience with renewed loyalty.
3.2 Core Value:

"Best quality, Reasonable price, and Quick service" is their prominent commitment. As
members of the global community, they will work for the betterment of society. They
take pride in being fair and sincere, and in continuing to offer superb service in order to
deliver superior customer satisfaction.
3.3 Focus:
Deliver on time, each & every time. Keep a sharp eye on product quality and put in
all efforts to raise the bar Constantly. Comply flawlessly with all statutory
regulations
required
by
their
customers
in
any
country. Ensure
escalating
productivity standards at the lowest operating cost, thus offering their customers a
product of the highest quality at the most competitive price.
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Information System for SPIDER Group BD Ltd
Chapter 3
3.4 Their Slogan:

"Best quality, Reasonable price, Swift service ".
3.5 Their Vision:

A company staffed by people, entrenched into and inspired by their commitment to
establish fruitful partnerships with their clients and maintaining their corporate
responsibility of providing professional service tailored to the needs of the clientele also
provider with best quality advanced technology, long term support.
3.6Their Mission:
They are committed to the proper training and development of personnel who can answer
to the competitive demands of the business world. They aim to establish a financial
facility that can support the successful implementation of its operation in a professional
manner, develop strategies and policies that can guide the entire company to successful
venture and above all, in still in every employee their desire to nurture value oriented
workers willing to uphold the standards required by the continuing demands of the
business.
3.7 Their Motto:

In time product delivery, meet quality according buyer's demand with competitive price.
3.8 Their Strength:

Strength is the main power to make company ongoing with worldwide run. Their
company's strengths are good quality of product with a minimum price, world class
machinery which is makes their products so good and comfortable to use. Their strong
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customer relationship manager and the marketing team are more effective to find their
needs and wants, and their responsible managing team is ready to manage product to
delivery at the right place as soon as possible.
3.9 FACTORY INFORMATION

Factory: 640, kunia, (targach), Joydevpur, Gazipur, Bangladesh.
Phone: +88029293645, Fax: +88028911627, 8918838
Nature of Company: 100% Export Oriented Garments Manufacture (Woven)
Style of the Company: Private Limited Company.
Name & Address of Banker: JANATA BANK LIMITED, Moghbazar Branch,
Moghbazar, Dhaka, Bangladesh.
Phone: 9356770, 8322922.
Swift: JANBBDDHAFEC, Account No: CD4207, NATIONAL BANK LIMITED,
Pragati Sarani branch, Dhaka, Bangladesh.
Account No: 009833007526, Swift Code: NBLBBDDH098
Year of Establishment: 2007
Number of Employees: 5000
Insurance:
(i) Meghna Insurance Co. Ltd.

(ii) Provati Insurance Co. Ltd.
(iii)Standard Insurance Co. Ltd.
Production Lead Time: 120 days from receipt of order. 35 days from receipt of Fabrics
and trims. 90 days from receipt of clean L/C.
Minimum Order Quantity: 400 Dozens (per style).
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Chapter 3
Fabric Import From: Bangladesh, Hong Kong, China, U.A.E, Malaysia, Taiwan &
Indonesia.
Monthly Capacity
: 700,000 pcs per month /basic style.

: 400,000 pcs per month /casual style
3.10 Compliance:
They have a compliance policy based on their local Labor laws, code of conducts of key
buyers. The factory is full compliance with ILO and Bangladesh Labor law. Some of
their company policies are as follows:
Child Labors are not allowed.
Access control system.
Voluntary over time.
Weekly holidays.
Annual leave.
Eid Bonus will be given during the two Eids of the year.
Maternity Protection.
Sanitary facilities.
Doctors room with fulltime doctor and Nurse Child care room
First aid box.
Day care Centre.
Health care activities for the workers comply by the company doctor.
3.11 Health and Safety:

All necessary measures have been adopted in the factory to provide maximum
health and safety arrangements to all their employees. A qualified doctor and nurse
are employed full time along with a health care center.
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CHAPTER 4:
INFORMATION SYSTEM IN SPIDER GROUP BD LTD.
4.1 INFORMATION SYSTEM in Spider Group Bangladesh Ltd.:

The purpose of this analysis is to describe the necessity for a comprehensive financial,
HR, SCM & CRM with asset, activity, and document management system in Spider
Group Bangladesh Limited. Spider Group Bangladesh is the leading Informational
Service Provider in Bangladesh, its present subscriber base is 1 million. Spider Group
Bangladesh is a joint venture enterprise. Spider Group Bangladeshis looking to operate a
digital mobile telecommunications network based on the GSM standard in the 900 MHz
and1800 MHz frequency bands, under a license granted by the Bangladesh Telecom
Regulatory Commission (BTRC).Spider Group Bangladesh serves both rural and urban
customers across Bangladesh. Spider Group Bangladesh has been a market leader in
introducing new products and services in Bangladesh.
This part will present the business case of the Enterprise Resource Planning
(INFORMATION SYSTEM) focusing on the following Analysis
1. Human Resource Management (HRM)
2. Financial analysis i.e. returns on investment (ROI), net present value (NPV),
etc.
3. Supply Chain Management,
4. Customer Relationship Management (CRM)
4.2 Background of INFORMATION SYSTEM in SPIDER GROUP BD:

There is a risk of SPIDER GROUP BANGLADESH making growth decisions without
the right information. Here is the Lack of communication between organizational units,
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Chapter 4
endless paper trails and labor-intensive practices lead to unacceptable accuracy when it
comes to knowing critical details about important assets. Hence, SPIDER GROUP
BANGLADESH need to establish Asset Management (system and processes) which
cover the entire lifecycle of any given asset, from the initial request for a need until the
asset is physically disposed. Asset Management will enable us to realize greater ROI,
measure and reduce the total cost of ownership and increase employee productivity. The
project will have four components: (a) Asset Management, (b) Activity Management, and
(c) Document management.
4.3 Objectives of INFORMATION SYSTEM in SPIDER GROUP BD.

The primary objectives are:
Reduce the purchase cycle time through improved and coordinated

information flow
Improvement Asset management and tracking
Increase customer satisfaction by improvement in Asset utilization
Improve in business processes through adoption of best business practices
Improve decision making process by providing timely information.
Increases the productivity by properly manage the HRMS.
Manage Payroll, recruitment agency, payment mode, PF etc.
Manage the leave management, facility management etc.
Realize greater ROI, measure and reduce the total cost of ownership and
increase employee productivity.
4.4 Architecture of INFORMATION SYSTEM in Spider Group BD.

INFORMATION SYSTEM stands for Enterprise Resource Planning software.
INFORMATION SYSTEM software aids and controls the INFORMATION SYSTEM
management system, which is a system that integrates and automates all facets of
business operations including planning, manufacturing, sales and marketing, inventory
control, order tracking, customer service, finance and human resources.
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Chapter 4
Figure: One Data Model One User Interface
4.5.1 .1General Ledger-Features
Flexible Chart of Account structure
Shorthand Account Alias
Unlimited organization structure
Use DFF to add custom data fields w/o programming
Advanced Intercompany Accounting (CENTRA)
Handles various types of journals such as Inter Company, reversing,

consolidation, recurring, statistical etc.
Flexible Mass Account Maintenance
Application Desktop Integrator
Perform Drill-Down Inquiries
Single Integrated System
Post automatically at scheduled time or real-time
Mass Allocation journal

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Chapter 4
4.5.1 .2 Payables-Features
Control for duplicate invoice
Receive electronic invoices via EDI Gateway
Automatically generate recurring invoice
Predefine Distribution Sets
Process Prepayments
Pay on receipt
4.5.1 .3 Receivables-Features
Specify customer relationships
Create customer credit profiles
Recognize revenue using invoicing rules
Recurring invoices
Consolidated billing
Various transaction types e.g. Invoices, Credit Memo, Deposits, Guarantees
Customer statements & reminder letters
Drill-down to details by aging bucket
4.5.2 Asset Management:

Effective asset management ensures employees always have equipment, tools, and other
resources when and where they need them. This can be achieved by tightly controlling
assets through meticulous record keeping and control procedures, or by purchasing and
maintaining spare materials to provide sufficient safety stocks needed items.
4.5.2.1 Active Asset Management Landscape:

Request
Procure
Deploy
Manage
Recycle
Active asset management includes workflow that lets an organization handle asset
requisitioning, purchasing, receiving, deploying, and retiring in best possible way.
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Chapter 4
An active asset management system should be able to provide the following information
in real-time:
Asset owner
Asset location
Asset lease/purchase information
Asset maintenance, warranty, and replacement cost; and
Other related operational information.
Moving forward to an active asset management from a chaotic situation at SPIDER

GROUP BANGLADESH will require time considering resource availability, readiness,
process engineering, IT-business alignment, and broad capabilities.
4.5.2.3 Benefits:
By actively automating asset management, SPIDER GROUP BANGLADESH would
enable maximize its organizational performance and achieve following efficiencies:
Productivity gains in labor utilization
Gaining volume procurement savings
Improving service request tracking and resolution
Reducing contract penalties or compliance penalties for lost or modified assets
Reclaiming upgraded asset components upon lease return at contract

termination
Avoiding overpayment of fees on obsolete assets for extended term durations
4.5.3Activity Management:
Activity data are time-dependent. At SPIDER GROUP BANGLADESH, we have
identified at least three types of activities:
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Chapter 4
1. To-do activities: short-term tasks that must be completed before a certain date but
not in a specific time, e.g. telephone calls, faxes, etc.
2. Fixed-time activities: Calendar events that must be performed at a specific time
on a specific date, such as meetings, conventions, etc.
3. Project activities: Longer-term tasks, where the action can span days, weeks, or
even months, and where the activity is dependent on the completion of other
activities or is a requirement for other activities.
4.5.4 Document Management:

Researchers estimate that between fifty and eighty percent of company information lies
not in back-end data systems, but in documents and e-mails and attachments.
In document management documents are stored in a single, centralized area, so that users
can access the document store via browser, e-mail client, desktop applications, and
collaboration applications, etc. They can easily add or archive documents from within email clients, desktop folders and applications.
SPIDER GROUP BANGLADESH would like to have a formal document management
procedure for tracking in process, released, or obsolete documents. All relevant
documents of the right version should be attached to the place they belong.
4.5.5 Users:
Whole SPIDER GROUP BANGLADESH will be benefited from INFORMATION
SYSTEM implementation, as it will automated the material procurement business
process, which would include comprehensive RFQ process combined with user-defined
techno-commercial evaluation of the bids submitted. It would further track the status of
indents/ enquiries and purchase orders to ensure faster material procurement.
4.5.6 Human Resource Management in INFORMATION SYSTEM:

In Spider Group Bangladesh Human Resource Management (HRM) module covers every
activity dealt by the HR department. This module enables an organization to capitalize on
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Chapter 4
the workforce - their most important asset. It helps in performing HR activities such as
recruitment, salary, leave management, payroll, etc.
Reports:
MIS reports
Attendance Report
Leave Balance as well as details
Vouchers
Salary Structure
4.5.7 Costs-Benefit Analysis:

At least two areas of SPIDER GROUP BANGLADESH will benefit from
INFORMATION SYSTEM implementation. First, INFORMATION SYSTEM will
ensure that SPIDER GROUP BANGLADESH employees are always allocated the
resources they need to be most productive. Second, it will save SPIDER GROUP
BANGLADESH money by reducing the total cost of ownership (TCO) associated with
its assets, assuring that active asset management landscape has been followed, and
SPIDER GROUP BANGLADESH buys only what it needs.
Several leading experts believe that an effective asset management program can achieve
up to 30% reduction in annual TCO costs. For example, Information Technology Asset
Management (ITAM) processes commonly yield an annual savings of 20 percent to 30
percent over the average TCO.
Project Cost:
The approximate project cost is about USD 2.5 million. The project will have a 3 year life
for depreciation purpose.
Page | 22

Cost Heads
Chapter 4
USD
Software Implementation
Taka (1US$=65Tk)
1,000,000
65,000,000
Software License
300,000
19,500,000
Hardware
700,000
45,500,000
IT Infrastructure & PCs
100,000
6,500,000
Buffer for customisation
100,000
6,500,000
Project Management
120,000
7,800,000
SQA Audit
30,000
1,950,000
Traning
80,000
5,200,000
Teambuilding and development
20,000
1,300,000
5,000
325,000
International Calls & VPN
15,000
975,000
Traveling (India & within Bangladesh)
30,000
1,950,000
5,000
325,000
Entertainment
15,000
975,000
Miscellinous
10,000
650,000
2,530,000
164,450,000
Rewards, recognition and awards
ERP Awareness Program
Total
Figure: Project Cost
4.5.8 Financing:
The existing capital mix of SPIDER GROUP BANGLADESH is the use of 30% debt for
every 70% of equity capital employed. However, in order to match industry practices, the
Project is taken to be financed with 40:60 debts to equity ratio.
Cost of Capital:
Weighted average cost of capital (WACC) for a project with average risk is about
15.75%.The Project is an average risk project on a stand-alone basis, because projects
of similar kinds have already been implemented elsewhere with success, and no material
uncertainty is underlying Projects implementation or its operation. With regard to
corporate (within SPIDER GROUP BANGLADESH) risk, however, the Project may
rather be viewed as a low risk project because implementation of the Project would
ensure making better business decision fast which can make the difference between
Page | 23
Chapter 4
surviving and thriving in an increasingly competitive communications marketplace.

Overall, it is not unreasonable to evaluate the Project at a WACC of 15.75%.
4.5.9 Revenue Assumptions:

Although there is no doubt about the vast possibility of revenue generation through cost
savings due to INFORMATION SYSTEM implementation, but unavailability of key data
because of current chaotic asset management system made it virtually impossible to
estimate the actual cost savings that will be realized through INFORMATION SYSTEM
implementation.
Productivity gains in labor utilization: All procurement professionals, if needed, and

two employees are dedicated on custom made reporting and tracking. Procurement expect
around 45 man day per month will be saved by implementing the INFORMATION
SYSTEM solution. This converts in cost savings for 2 employees per month @ 24 days
per month per employee. In a similar exercise, technical department (site acquisitions)
has estimated that due to INFORMATION SYSTEM such savings can be realized for 1
employee in every two months. Technical operation has estimated 19 working hours per
day would save from the project, which comprised of Engr./SE/Spare parts
officer/DGM/AGM hour; and Technical (Planning) has estimated 3, 5, and 5 such
employees for year 1, 2, and 3 respectively.
Based on above input the business case assumes for calculation purpose, similar savings
are also achievable in other divisions and estimates another 9 employee cost can be saved
through INFORMATION SYSTEM implementation (1 employee/division).
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Chapter 4
Productivity gains from Labor Utilization

ITEM
DAY
Head count
After Project Implementation
saving per year
Procurement
45 Man
24
2005
2006
2007
BDT
BDT
BDT
12,000,000
13,200,000
14,520,0
days/Moth
Technical (Site
20% of 285
Accusation)
man day
Technical-
19 hrs/day
00
1 persons
500,000
550,000
605,000
2.38
1,187,5100
1,306,205
1,436,87
5
Operation
1,500,000
Technical-Planning
2,750,000
3,025,00
0
All other Division
9 divisions
9 person@1
4,500,000
4,950,000
5,445,00
person/Division
0
19,687,500
Total
22,756,250
25,031,875
Figure: Productivity Gain

Savings by retiring obsolete assets that attract shipping, tax, and other support:
Procurement estimated that on average BDT 20,000/month can be saved by retiring
obsolete assets that are sitting idle in the warehouses if proper asset tracking through
INFORMATION SYSTEM implementation is achieved. Technical-operation estimated
that 2.5 hours can be saved by implementing the project.
Savings by retiring obsolete assets that attract shipping, tax and other support
costs.
Procurement (USD)
Technical-
2.5 hrs/day
0.31
5,705
7,377
9,030
2,409
2,569
2,693
8,1114
9,946
11,723
Operation (USD)
Total (USD)
Figure: Saving Obsolete Assets

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Chapter 4
Savings on printing, distribution, and mailing costs: In document management,

information is stored in a single, centralized storage area; it will certainly reduce printing,
distribution, and mailing costs, as employees will have the access to the necessary
documents by browsing, and will be able to take the print out of necessary portion instead
of the whole document. It will also reduce the inter-departmental mailing cost. Up to
BDT 10,000 per month of such savings has been forecasted by procurement department.
Similar savings can also be realized throughout SPIDER GROUP BANGLADESH.
Savings on printing, distribution and mailing costs (Document Management)
Procurement
10000/month
120,000
144,000
172,800
All other
9 divisions
1,080,000
1,296,000
1,555,200
Total (BDT)
Annual
1,200,000
1,440,000
1,728,000
Total (USD)
Annual
18,501
21,525
24,615
divisions
Figure: Saving by Document Management

Savings from not hiring of Audit firm for asset reconciliation: Prior to SarbanesOxley, asset reconciliation in SPIDER GROUP BANGLADESH was done manually
through hired audit firm, which may not represent the true picture; In year 2003, hiring
such a local audit firm for its Asset Reconciliation cost SPIDER GROUP
BANGLADESH around BDT 1,000,000. Now with the new stringent regulatory
compliance auditing firms will certainly implement record fee price hikes for intensified
diligence.
Savings from not hiring of Audit firm for asset reconciliation
Finance (Audit fee)
1,000,000
1,200,000
1,440,000
Total (BDT)
1,000,000
1,200,000
1,440,000
Total (USD)
15,418
17,937
20,513
Figure: Saving in terms of Audit Firm

Savings by improving service request tracking and resolution (PR): The project
would save the working hours of employees by no means of improving service request
tracking time and resolution, especially in raising purchase request time. TechnicalPage | 26
Chapter 4
operation estimated about 14 working hours per day would be saved from the said
project.
Procurement expect around 45 man day per month will be reduced by implementing the
INFORMATION SYSTEM solution. We have considered the following things;
Electronic PR
Electronic conversion of PR to PO
Electronic RFP
Automated vendor evaluation process
Automated product evaluation process
Savings by improving service request tracking and resolution (PR)

Procurement
TechnicalOperation
45 Man days/Month
24
12,000,000
14 hours/ day
1.75
875,000
Total (BDT)
12,875,000
Total (USD)
198,504
13,200,000 14,520,000
962,500
1,058,750
14,162,500 15,578,750
211,697
221,920
Figure: Saving by Improving Service

Other savings: Technical-operation has estimated that about 6.5 working hours per day
would save by implementing the project from the following rationales.
Figure: ERP Operational Excellence

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Chapter 4
4.5.10Financial Analysis:
Table below, presents the financial analysis for the Project.
Description
2004
0
2005
1
a) Cash Inflow
1.Productivity gains in labor utilization
303,538
2.Savings by retiring obsolete assets that attract
shipping, tax and other support costs.
8,114
3.Savings on printing, distribution, and mailing
costs (document management)
18,501
4.Savings from not hiring of 'Audit firm' for
asset reconciliation
69,380
5.Savings by improving service request tracking
and resolution
198,504
6. Savings from Increased asset utilization
81,000
7. Savings from reduction in delay in project
implementation
8.Other savings
6,263
Total Cash Inflows(a)
685,302
b) Cash Outflow
(2,530,000)
1.Total Project Cost
(2,530,000)
Total Cash Outflows(b)
(2,530,000)
685,302
Net Cash flows (a-b)
(2,530,000)
(1,844,698)
Cumilitive Net Cash Flows
(2,530,000)
592,053
Discounted Cash Flows (at average)
(2,530,000)
(1,937,947)
Cumilitive Discounted Net Cash Flows
Net Present Value
(782,308)
Pay Back Period
Beyond project life
Discounted Payback Period
Beyond project life
IRR
-3.43%
Return on Investment (ROI)
-30.92%
2006
2
2007
3
340,153
356,579
9,946
11,723
21,525
24,615
99,295
117,521
211,697
106,500
221,920
131,700
6,680
795,796
7,002
871,061
795,796
(1,048,902)
593,963
(1,343,983)
871,061
(177,842)
561,675
(782,308)
Figure: Financial Analysis
4.5.11 Recommendation:
Although, the financial analysis does not do any good to the project but it is only because
of the non-availability of key data which in fact reinforce the fact that INFORMATION
SYSTEM is vital for SPIDER GROUP BANGLADESHs growth. The project
recognizes that technology investments are vastly different. The return on technology
investments is, instead, derived from the processes that the technologies enable. Thus, the
source of the projects ROI flows from the modified business processes that are possible
only with the INFORMATION SYSTEM implementation. Being an IT driven company
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Chapter 4
SPIDER GROUP BANGLADESH must embrace the INFORMATION SYSTEM in

order to challenge upcoming competition as well as to ensure continuous growth and
profitability.
4.5.12Critical Success Factors:

In addition to the above mentioned recommendation ICU identified followings as the
critical success factor, and suggest for action. Effective asset management requires
timely, accurate information. Special care should be given during data integration as
omission of even low-value items can have an unexpected effect on companys
productivity and profitability. Therefore, SPIDER GROUP BANGLADESH should
include as many assets as possible to maximize its return on investment. When acquiring
new assets life cycle factors such as installation, usage, contracts, support, retirement,
and continuity should get special attention to realize the benefits from INFORMATION
SYSTEM implementation. Prior to any investment enough attention should be given to
the ground work, i.e. developing the knowledge base of the employee about the projects
through training/knowledge sharing and internal marketing prior implementation of the
project. Otherwise, the technology brought in SPIDER GROUP BANGLADESH may
add little or no value to the company. One thing should be remembered that technology
itself does not provide any benefits, but the benefits are derived from the technology by
the users. Another area should get sufficient attention is the contents of Training
Materials. Training materials should not only focus on the RFP requirements and
operating instructions. Rather, it should be linked with the quantifiable benefits as well as
qualitative benefits that are foreseen in projects business case.
4.5.13 Monitoring Strategies:

The project will be monitored first after the six months of its implementation then in year
basis. The monitoring criteria will be:
End users are using the new technology with comfort.
Improvement of Asset Tracking System

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Document management System
Employee productivity.
Chapter 4
4.5.14 Present status:

Tata Consultancy Services (TCS) has been selected as the vendor for INFORMATION
SYSTEM implementation. The project is planned to start on March 3, 2005; and finish by
October 31, 2005.
4.6 INFORMATION SYSTEM Analysis Scope for Spider Group BD:
4.6.1 Scenario Financial Accounting Analysis:

This scenario enables you to analyze Financial Accounting data from INFORMATION
SYSTEM.
Accounts Receivable: Line Items, Payment History, Transaction Data
Accounts Payable: Line Items, Transaction Data
General Ledger: Transaction Figures, Financial Statements
Asset Accounting: Annual Values, Period Values
Accounts Receivable: Line Items, Payment History, Transaction Data
4.6.2 Scenario Controlling Analysis:

This scenario enables you to analyze Controlling data from INFORMATION SYSTEM.
Costs and Allocations
Costs and Allocations (by Activity Type)
Activity Type Quantities and Prices-
Statistical Key Figures -
Cost Object Controlling -
Product Cost Planning - All Cost Estimates -
Product Cost Planning - Released Cost Estimates

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Chapter 4
4.6.3 Scenario Sales Analysis:

This scenario enables you to analyze sales and distribution data from INFORMATION
SYSTEM.
Quotations / Orders
Service Level - Order Quantities
Service Level: Order Items
Service Level: Orders
Backorders
Sales Overview
4.6.4 Scenario Cross-Functional Analysis: Financial and Sales Data:

The scenario Cross-Functional Analysis: Financial and Sales Data describes all the
necessary activities to build up a report that analyzes data from financial accounting and
sales and distribution. With the detailed description easy enhancement of the report
according to individual customer requirements is possible, for example: include more
or other characteristics, other key figures, and break down in other intervals, and so on.
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Chapter 4
4.6.5 Scenario Sales Planning:

The sales planner has the possibility to plan the sales quantity of materials per customer.
To support the planning, the sales quantity from the comparison month of the last year is
displayed.
Key Points:
Upload of the sales historical data from INFORMATION SYSTEM
Planning layout which shows the historical data per customer and material
4.6.6 Scenario Purchasing Analysis:

This scenario enables you to analyze purchasing data from INFORMATION SYSTEM.
Info Cubes:
Purchasing Data
Vendor Evaluation
Purchasing Groups
4.6.7 Scenario Inventory Analysis:

This scenario enables you to analyze stock data from INFORMATION SYSTEM and to
evaluate materials for which no movement has occurred.
Info Cubes:
Material Movements (technical name 0IC_C03)
Slow-Moving Items (technical name 0IC_MC01)
Key Points:
Stock overview
Valuated Stock Analysis
Blocked Stock Analysis
Slow Moving items Analysis
Page | 32
CHAPTER 5:
RESULTS & FINDINGS
[Scopes of INFORMATION SYSTEM in Bangladesh]
5.1 Results & Findings:

Telecommunication sector is emerging in this country. Proper regulations and appropriate
legislations can help this sector to grow. This industry already adopts the
INFORMATION SYSTEM, which can help in their sales activity and maximize their
profit. Sales activities will be redesigned and reengineered with the latest technology
inauguration and take the organization in the path of growth and prosperity. Here is the
some scope where INFORMATION SYSTEM can play vital role for operational
excellence & growth of organization.
5.2 Scopes of INFORMATION SYSTEM for Bangladesh:

In last decade the Government to Bangladesh realized that ICT (Information and
Communication Technology) could be key element of our financial emancipation and
declared it as a thrust sector. The National e-Governance Plan (SPIDER GROUP
BANGLADESH) approved by the Government of Bangladesh includes many high
impact e-Governance initiatives and projects that have been identified as Mission Mode
Projects (MMPs). One such MMP focuses on e-Governance at Municipalities. The
present document is a Detailed Project Report for the e-Governance Project at
INFORMATION SYSTEM opportunities in Bangladesh and has been prepared as per the
guidelines published by Govt. of Bangladesh for the above mentioned scheme. The
objective of the current project is to provide efficient services to citizens, administrators
and comparators by implementing INFORMATION SYSTEM Based Solutions to enable
Bangladesh government processes and workflows. Key objectives of this project are as
follows:
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Chapter 5
Improve the quality of Citizen Service Delivery System and offer these services
with optimal effectiveness and transparency.
Allow data sharing across different departments, thus bringing about the
efficiency in administration functioning.
Facilitate the decision making process of top management by furnishing the right
information at right time.
Help different departments to improve their revenue collection efficiency.
Harness the use of technology to create sense of achievement amongst employees
and citizens
MIS is envisaged to undertake Enterprise Wide Resource Planning approach, enabling

Bangladesh to use various data in most optimal way and provide services to citizens in
efficient and effective manner. Various functional modules to be covered under MIS are
given below:
5.3Birth & Death Department:

Health department takes care of the health in general of the people within the corporation
limits. The department runs many health schemes like D.P.T., Polio, Measles and other
deceases. Most important customer centric process the department has is the registration
of Birth and death of the citizens. Also department has the responsibility of issuing the
food licenses. Birth & Death department objective is to register the Birth and Death
within the corporation limit, also issue the certificate for the same.
Services delivered by the department:
Birth and Death Certificate
Birth and Death Registration
Birth and Death Registration-Delay
Correction of Registration details
Cremation Certificate
Registration and Certificate for still birth

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Chapter 5
5.4 Property Tax Department:

Property tax is one of the main sources of revenue for the Bangladesh. Residential and
commercial properties, situated within the limits, are assessed for tax. Property tax is tax
on immovable or tangible real property such as land, buildings and permanent
improvements. Based on such assessments, all the property holders are expected to pay
the property tax. Property Tax may comprise of basic house/building tax plus service
taxes such as street tax, and conservancy/scavenging tax. It is collected either half yearly
or annually. Property tax department is responsible for billing & collection of property
tax for all residential, commercial, open plots and other types of properties.
5.5 Water Supply Department:

The water supply department is involved with supplying of water from the reservoir to
the consumer. The major responsibilities of the Water supply (distribution) department
are
Issuance of new water connection
Plumber License
Water disconnection, Transfer
Billing & Collection
5.6 Building Permission Department:

Building Permissions is one of the main activities of PMC. The department is involved in
granting Building Permissions to Licensed Architects / Engineers / Structural Engineers
for construction of buildings within the Bangladesh jurisdiction area. The department
works in close association with the Development Plan Section, carries out demolitions of
unauthorized constructions, represent PMC in legal matters (affidavits, etc.), resolves
complaints about Building Control.
The main functions of the department are:

Providing Building Permissions to applications from licensed Architects / Engineers /
Structural Engineers
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Chapter 5
Involves activities of Plinth Checking and provision of Occupancy Certificates after

Commencement Certificate for construction is given to the applicants
5.7 E- Procurement:
The tender cell in the corporation is responsible for the publication and sale of the
tenders. The publication of the tenders is outsourced to an organization and the same
organization do the publication and upload of the tenders on the online system. Also the
sale of the tender happens online. The proposed E-Procurement module will empower the
Bangladesh to Covers full life cycle of purchasing (indent to receipt of goods), Connects
buyers and suppliers through electronic exchange of Tenders, catalogs, contracts, POs,
invoices etc. The basic responsibility of the Tender Cell of Bangladesh is the sale and
processing of tenders of various departments of PMC. Currently only the sale of the
Tenders is done through online system.
5.8 Licenses department:

Bangladesh issues various types of licenses like Food Licenses, Market Licenses,
Nursing home registration, Dog licenses, Pre conception & pre natal diagnostic
techniques licenses, etc. License departments main objective is to issuance of new
license keeping in mind various pre-requisite factors. Also renewal of the existing
licenses is undertaken.
5.9 Solid waste Management:

The basic responsibility of the Solid waste management department of Bangladesh is the
collection, transportation and disposal of solid waste. Solid waste collection in
Bangladesh is handled through primary & secondary collection. Primary involves house
to house collection while secondary is through the containers placed at identified
locations in the PMC limits. Secondary collections through containers are phased based
on the location, the expected waste generated in the area and the availability of vehicles
for collection. Around 700 containers are identified for daily collection while some may
have the waste collected at a lesser frequency. Manpower of over 7500 persons supports
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Chapter 5
the Solid waste management department. The department has over 65 dumper vehicles,
45 bulk refuse contractors.
5.10 Accounts Department:

Accounts department is the back bone of any ULB and constitute of both Accounts and
Audit. The major responsibilities are To receive all moneys payable to the Corporation
and credit the same in the bank Account of the Corporation, To make payment on
account of Municipal Fund, To estimate Income & Exp. statement for the next financial
year, To make payment of Salary and pension of the employees, To control the budget
sanctioned by the Corporation, To make scrutiny of every financial proposal on behalf of
Hon. Commissioner. Accounts department is one of the vital departments of any ULB
and controls the overall budgeting of the local body. It has to undertake the balancing act
of getting the maximum possible funds to the ULB and then undertake the expenditure in
a planned manner.
5.11 Asset management Department:

Assets reflect the wealth of the corporation. Based on the nature of the assets it get
appreciated or depreciated. Also for the double entry accounting system asset register is
must. Asset register is required to prepare the balance sheet.
5.12 Material management Department:

Inventory management is one of the huge tasks for any corporation or other government
organization. Currently the corporation has the inventory of Vehicle parts, IT
infrastructure, projects, and many more other related unrelated departments. The main
objective of the material management is to keep the record of the inventory for each type
of the item.
Page | 37
CHAPTER 6
IMPLEMENTATION, ANALYSIS
& SUGGESTIONS
6.1 Implementation:
Businesses have a wide scope of applications and processes throughout their functional
units, producing INFORMATION SYSTEM software systems that are typically complex
and usually impose significant changes on staff work practices. Implementing
INFORMATION SYSTEM software is typically too complex for in-house developers,
lacking the required skills, so it is desirable and advisable to hire outside consultants who
are professionally trained to implement these systems. This is typically the most costeffective way. There are three types of services that may be employed - Consulting,
Customization, and Support. The length of time to implement an INFORMATION
SYSTEM depends on the size of the business, the number of modules, the extent of
customization, the scope of the change, and the willingness of the customer to take
ownership for the project. INFORMATION SYSTEM systems are modular, so they don't
all need be implemented at once. Implementation can be divided into various stages, or
phase-ins. The typical project is about 14 months and requires around 150 consultants. A
small project (e.g. a company of less than 100 staff) can be planned and delivered within
39 months; however, a large, multi-site or multi-country implementation can take years.
The length of the implementations is closely tied to the amount of customization desired.
To implement INFORMATION SYSTEM systems, companies often seek the help of an
INFORMATION SYSTEM vendor or a third-party consulting company. Consulting
firms typically provide three areas of professional services: consulting, customization,
and
support. The client
organization can also
employ independent program
management, business analysis, change management, and UAT specialists to ensure their
business requirements remain a priority during implementation.
Page | 38
Chapter 6
6.2 The Hidden Costs of IT:

Although different companies will find different land mines in the budgeting process,
those who have implemented INFORMATION SYSTEM packages agree that certain
costs are more commonly overlooked or underestimated than others. Armed with insights
from across the business, INFORMATION SYSTEM pros vote the following areas as
most likely to result in budget overrun.
6.3 Training:
Training is the near-unanimous choice of experienced INFORMATION SYSTEM
implementers as the most elusive budget item. It's not so much that this cost is
completely overlooked as it is consistently underestimated. Training expenses are high
because workers almost invariably have to learn a new set of processes, not just a new
software interface.
6.4 Integration and Testing:

Testing the links between INFORMATION SYSTEM packages and other corporate
software links that have to be built on a case-by-case basis is another often
underestimated cost. A typical manufacturing company may have add-on applications
for logistics, tax, production planning and bar coding. If this laundry list also includes
customization of the core INFORMATION SYSTEM package, expect the cost of
integrating, testing and maintaining the system to skyrocket.
6.5 Data Conversion:

It costs money to move corporate information, such as customer and supplier records,
product design data and the like, from old systems to new INFORMATION SYSTEM
homes. Although few CIOs will admit it, most data in most legacy systems is of little
use. Companies often deny their data is dirty until they actually have to move it to the
new client/server setups that popular INFORMATION SYSTEM packages require.
Consequently, those companies are more likely to underestimate the cost of the move.
Page | 39
Chapter 6
But even clean data may demand some overhaul to match process modifications
necessitatedor inspiredby the INFORMATION SYSTEM implementation.
6.6 Data Analysis:

Often, the data from the INFORMATION SYSTEM must be combined with data from
external systems for analysis purposes. Users with heavy analysis needs should include
the cost of a data warehouse in the INFORMATION SYSTEM budgetand they should
expect to do quite a bit of work to make it run smoothly. Users are in a pickle here:
Refreshing all the INFORMATION SYSTEM data in a big corporate data warehouse
daily is difficult, and INFORMATION SYSTEM systems do a poor job of indicating
which information has changed from day to day, making selective warehouse updates
tough. One expensive solution is custom programming. The upshot is that the wise will
check all their data analysis needs before signing off on the budget.
6.7 Consultants Ad Infinitum:

When users fail to plan for disengagement, consulting fees run wild. To avoid this,
companies should identify objectives for which its consulting partners must aim when
training internal staff. Include metrics in the consultants' contract; for example, a specific
number of the user company's staff should be able to pass a project-management
leadership testsimilar to what Big Five consultants have to pass to lead an
INFORMATION SYSTEM engagement.
6.8 Replacing Your Best and Brightest:

It is accepted wisdom that INFORMATION SYSTEM success depends on staffing the
project with the best and brightest from the business and IS. The software is too complex
and the business changes too dramatic to trust the project to just anyone. The bad news is
a company must be prepared to replace many of those people when the project is over.
Though the INFORMATION SYSTEM market is not as hot as it once was, consulting
firms and other companies that have lost their best people will be hounding yours with
Page | 40
Chapter 6
higher salaries and bonus offers than you can affordor that your HR policies permit.
Huddle with HR early on to develop a retention bonus program and to create new salary
strata for INFORMATION SYSTEM veterans. If you let them go, you'll wind up hiring
themor someone like themback as consultants for twice what you paid them in
salaries.
6.9 Implementation Teams Can Never Stop:

Most companies intend to treat their INFORMATION SYSTEM implementations as
they would any other software project. Once the software is installed, they figure, the
team will be scuttled and everyone will go back to his or her day job. But after
INFORMATION SYSTEM, you can't go home again. You're too valuable. Because they
have worked intimately with INFORMATION SYSTEM, they know more about the
sales process than the salespeople do and more about the manufacturing process than the
manufacturing people do. Companies can't afford to send their project people back into
the business because there's so much to do after the INFORMATION SYSTEM software
is installed. Just writing reports to pull information out of the new INFORMATION
SYSTEM will keep the project team busy for a year at least. And it is in analysisand,
one hope, insightthat companies make their money back on an INFORMATION
SYSTEM implementation. Unfortunately, few IS departments plan for the frenzy of
post-INFORMATION SYSTEM installation activity, and fewer still build it into their
budgets when they start their INFORMATION SYSTEM projects. Many are forced to
beg for more money and staff immediately after the go-live date, long before the
INFORMATION SYSTEM project has demonstrated any benefit.
6.10 Waiting for ROI:

One of the most misleading legacies of traditional software project management is that
the company expects to gain value from the application as soon as it is installed; the
project team expects a break and maybe a pat on the back. Neither expectation applies to
INFORMATION SYSTEM.
Page | 41
CHAPTER 7
CONCLUSION & REFERENCES
7.0 Conclusion:
I find that INFORMATION SYSTEM adopters are consistently higher in performance
across a wide variety of measures than non-adopters. Our results suggest that most of the
gains occur during the (relatively long) implementation period, although there is some
evidence of a reduction in business performance and productivity shortly after the
implementation is complete. However, the financial market consistently rewards the
adopters with higher market valuation both during and after the adoption, consistent with
the presence of both short term and long term benefits.
Overall, this suggests that indeed INFORMATION SYSTEM systems yield substantial
benefits to the firms that adopt them, and that the adoption risks do not exceed the
expected value, although there is some evidence (from analysis of financial leverage) that
suggests that firms do indeed perceive INFORMATION SYSTEM projects to be risky.
There also appears to be an optimal level of functional integration in INFORMATION
SYSTEM with benefits declining at some level, consistent with diseconomies of scope
for very large implementations, as one would typically expect.
The growing information needs of an enterprise make it imperative to improve or replace

old systems. Especially under the present Bangladeshi business environment, where the
globalization has been initiated, full convertibility is coined, Infrastructure Projects are
nearing completion, and it is expected that the whole business system will undergo a
major shift. So establishing INFORMATION SYSTEM for every organization like
SPIDER GROUP BANGLADESH will provide better business world and modern
management.
Page | 42
8.0 References:
1. Annual Report-2012 of Spider Group Bangladesh Limited.
2. AT Kearney Information Technology Monograph: Strategic Information

Technology and the CEO Agenda, 1996, 1998, 2000.
3. Austin R., and Cotteleer, M. Current issues in IT: Enterprise Resource Planning.
Unpublished presentation, Harvard Business School, October 1999.
4. Brynolfsson, E. and Hitt, L. Beyond computation: Information technology,

organizational transformation and business performance. Journal of Economic
Perspectives, Fall 2000.
5. Cotteleer, M., Austin, R., and Nolan, R. Cisco Systems, Inc.: Implementing
INFORMATION SYSTEM. Harvard Business School Case, Report no. 9-699022, 1998.
6. Escalle, C., Cotteleer, M. and Austin, R. Enterprise resource planning

(INFORMATION SYSTEM). Harvard Business School Case, Report No. 9-699020, 1999.
7. Gable, G. and Vitale, M.R. (Guest Editors). The Future of Enterprise Resource
Planning Systems. Special Issue of Information Systems Frontiers, 2 (2), 2000.
8. Kelley, M. Productivity and information technology: The elusive connection.

Management Science, 40 (11), 1406-1425, 1994.
Page | 43
9. McAfee, A. The impact of enterprise resource planning systems on company

performance. Unpublished presentation at Wharton Electronic Supply Chain
Conference, December 1999.
10. OLeary, D. Enterprise Resource Planning Systems: Systems, Life Cycle,
Electronic Commerce, and Risk. Cambridge University Press, 2000.
11. Ross, J.W. The INFORMATION SYSTEM revolution: Surviving versus thriving.
MIT White Paper, Cambridge, MA, November 1998.
12. Sarkis, J., and Gunasekaran, A. (Editors). Enterprise Resource Planning
Modeling and Analysis. Special Issue of European Journal of Operational
Research, in progress, 2001.
13. SAP Annual Report, 1996. (75% of market-share for the large firms.)
14. Stemand, C. INFORMATION SYSTEM user interfaces drive workers nuts.

Computerworld, pp. 1, 24, November 2, 1998a.
15. Westerman, G., Cotteleer, M., Austin, R., and Nolan, R. Tektronix: Implementing
INFORMATION SYSTEM. Harvard Business School Case, Report No. 9-699043, 1999.
16. Website
of
Spider
Group
Bangladesh
Limited(www.Spider
Group
Bangladesh.com)
Page | 44
Information System for SPIDER Group BD
Chapter: 7
Questionnaire:
For the employee of Spider Group Bangladesh Limited
Respondent Name: Md. Nafiul Hasan
Respondent Position: Assistant Manager
Department: Information Technology
1. Do you have any knowledge related with INFORMATION SYSTEM

Management of an Organization?
Yes
No
If yes
How many years you are belonging to INFORMATION SYSTEM Management?
Ans: Almost 2 Years
2. What is the meaning of INFORMATION SYSTEM in case of SPIDER GROUP
BANGLADESH?
Ans: Fasting the way of work.
3. What Type of Facility do you avail by using INFORMATION SYSTEM in your
Daily Operation?
Ans: Quicken selling & purchasing order, Easy employee monitoring, Easy
Pay rolling and so on.
4. Are there really any information risks by using INFORMATION SYSTEM in
Daily Operations?
Yes
No
If yes what is this?
Ans: Hardware & Software Failure
5. What is the meaning of HRMS in INFORMATION SYSTEM in case of SPIDER
GROUP BANGLADESH?
Ans: By using HRMS we basically do the task of online recruitment process.
6. What is the meaning of Asset Management in INFORMATION SYSTEM in case
of SPIDER GROUP BANGLADESH?
Ans: Managing resources by using IS by eliminating manual labor.
Page | 45

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An Internship Report

Information System for SPIDER Group BD Ltd.

Date of Submission: March 18, 2015

Department of Management Information Systems

March 18, 2015

Mohammad Moqbul Hossain Bhuiyan

Subject: Letter of Transmittal

In my report, I tried to reflect a partial scenario of the significance of having an

As a BBA student, it was my great pleasure to be in touch with the organization

Md. Refat Ahmed

Finally I want to express my special thanks to Employees of the Information Technology

Md. Refat Ahmed

CHAPTER 2: LITERATURE REVIEW ...................................................................................5

CHAPTER 3: ORGANIZATIONAL OVERVIEW ...................................................................12

CHAPTER 4: INFORMATION SYSTEM IN SPIDER GROUP BD LTD ...................................16

CHAPTER 5: RESULTS & FINDINGS [Scopes of INFORMATION SYSTEM in Bangladesh] ..............33

CHAPTER 6: IMPLEMENTATION, ANALYSIS & SUGGESTION ..........................................38

CHAPTER 7: CONCLUSION & REFERENCES .....................................................................42

1.2 Statement of the Study:

Information System for SPIDER Group BD Ltd.

1.3 Objectives of the Study:

Eliminates the problem of synchronizing changes between multiple systems.

Permits control of business processes that cross functional boundaries.

Reduces the risk of loss of sensitive data by consolidating multiple permissions

Shorten production lead time and delivery time

Information Systems for SPIDER Group BD Ltd.

1.4 Rationale of the Study:

There are three major reasons why companies undertake IT:

To integrate financial data.

To standardize manufacturing processes.

1.5 Scopes of the Study:

Birth & Death department

Property Tax Department

Water Supply Department

Building Permission Department

Solid waste Management

Information Systems for SPIDER Group BD Ltd.

Some private business entities for IS:

Enterprise Resource Planning (INFORMATION SYSTEM) in

IT in Real Estate Industry

1.6 Research Methodology:

1.6.1 Primary Sources of Data:

Face to face conversation with the representative of different department of

Practical work Experience using IT.

Relevant field study is provided by the concern officers.

1.6.2 Secondary Sources of Data:

Annual reports of Shareholders & Customers.

Management & Monitoring software reports & accumulated data.

Websites & online reports of organization.

1.6.3 Data Presentation& Testing:

Information Systems for SPIDER Group BD Ltd.

1.7 Limitation of the Study:

MIS through INFORMATION SYSTEM is a sensitive part for the organization,

2.1 Literature Review:

2.2 History of Information System in Business:

Mainframe computers were Programming in COBOL

Information System for SPIDER Group BD Ltd.

inventory, billing etc.

Main focus was to automate

Basic Computing and Basic

Network support, systems

Network support, systems

Main focus is efficiencies