Information System in UEM Berhad organization Value Chain
Overview of the construction industry
The construction activities started during the British administration in Malaysia. During that period, contractors could be small groups or individuals working under the supervision of engineers or architects. After independence, the contractors were family dominated characterized by apprenticeship systems, clannish, thrifty, and paternalistic. The construction industry is significant in the development of a country’s economy. The construction industry provides its support through forwards and backward linkages with other industries (Ibrahim et al., 2010). The industry further provides jobs for citizens. Malaysia started investing in and developing the construction industry since its independence. In Malaysia, the construction industry has been divided into four subsectors. The professional construction service subsector is comprised of engineering services, cost controllers, architects, and building control agencies. Onsite construction subsection comprises of site preparation, building installation, construction machinery rental, and constructing complete buildings. Manufacturing of the construction subsection comprises of building components and product suppliers. The fourth subsection comprises of services in real estate. The main parties involved in construction include site supervisors, engineers, contractors, and safety officers. The suppliers and manufacturers have a significant role in ensuring the success of the construction.
Overview of the selected company
UEM Sunrise is a listed company in Malaysia. The company operates in the construction industry where it has emerged to be a leading property developer. The company was incorporated on August 20th, 2008. The company is experienced in the development of property mainly in commercial development, sprawling townships, high-rise residential, and mixed-use developments. UEM sunrise has constructed various commercial, integrated, and residential developments in Malaysia (Samsuri & Sarif, 2018). Some of these constructions include Radia, Forest Heights, and Mont Kiara. UEM Sunrise owns Cyberjaya urban development named Symphony Hills. The company has extended its presence into Singapore and Australia. UEM Sunrise has further extended to South Africa, Canada, and Vancouver. UEM Sunrise acts as UEM Group and Khazanah Flagship Company in property development and investments in real estate. Khazanah a Malaysia government investment holding company owns UEM Group.
Inbound Logistics
Inbound logistics include movement of finished inventory or materials from the supplier to a purchasing organization. Inbound logistics support a business’s efficiency through the delivery of products, materials, and spares required for its operations. Inbound logistics comprise transportation and collection of shipments, warehousing, and inventory management. Good transportation results to supply chain efficiency. UEM Sunrise established an on-going relationship with their suppliers. The company is further equipped with an efficient SC system to monitor and control their raw materials. The organization can utilize the information system in providing the section of the value chain is more productive. A WMS is among the information systems that help in managing the information collected in the supply chain. The WMS is designed to optimize and support warehouse functions and management of the distribution center. WMS helps in facilitating management of the companies’ daily operations including planning, staffing, controlling, directing, and organizing. The system further helps in keeping track of the available resources and the movement of raw materials into the company warehouse. The WMS is used to increase the origination’s visibility in its inventory at any location or time. The WMS is used to manage a company supply chain from the wholesaler or manufacturers to its warehouse (Žunić et al., 2018). Often, companies use the system together with other integrated systems such as the TMS or the inventory management system. The WMS system can be used to improve productivity and efficiency at the WMS supply chain. The WMS can be used by UEM Sunrise to configure for their raw materials. Implementation of the system can help the company can help in reducing labor costs, decreasing errors in shipping, and collecting raw materials and improving responsiveness and flexibility in the company. The system can further help in improving inventory accrual. The WMS can help the company to manage its systems operations using real-time information. Rael-time information helps an organization to track current information such as shipments, receipts, and orders.
The company can further integrate the Electronic Data Interchange in its inbound logistics. The system helps in the management of buyer-supplier relations. The EDI facilitates inter and intra organizational integration by the use of machine-generated documents. The documents are generated by the computer because of their electronic nature. The documents do not require a person to key in the data of the transactions (Tuñón et al., 2007). The EDI eliminates errors that may occur when a person is typing data or information. The system reduces cost and time spent in the processing of data. The EDI can be profitable for UEM Sunrise through improving the speed of business cycles, reduced human error, and low operating costs. The system reduces the operating expenditure through the reduction of costs used to purchase papers, reproduction, and printing of the documents. The system allows automation of activities, therefore, reducing the amount of time and labor incurred by the company in the processing of documents. Human error can be reduced in the company through the use of the system. Human error can occur when recording data during inbound logistics. The transaction is enhanced by the use of the system.
The company can further use the ERP to manage the knowledge and information of all of its operations. The systems help in the management of purchases, sales, accounting, production, cost management, human resource, and quality management. The ERP facilitates communication between various sections of the company enhancing efficiency and exploitation. Information is transmitted electronically saving errors, time, and costs. This is achieved through the integration of hardware and software that automate back-office functions within the organization (Chofreh et al., 2018). The system provides a connection between the segments of the value chain to improve the organization’s productivity. This is achieved through data collection and manipulation, where data collected from the organization is used to understand the operations done. This helps the organization decide on the amount of inbound to receive. Through the data, the organization can determine the number of customers who require certain services and products, thus making it easy to confirm the amount to be received at a certain time. This allows the organization to receive enough amount for it to handle and not cause an overflow of resources.
Operations
UEM Sunrise has comprehensive programs to help the company offer quality in every aspect of their projects. The management programs help the company to ensure quality from the planning and designing to the specifications and building. UEM Sunrise selects the quality materials and skilled personnel to carry out the construction. The PMIS provides data and information for the employees to have a similar insight of facts. The PMIS system is a cheap method to gather data because it only has to be done once. The system is key in the operation stage because it helps in eliminating information modification. Different people can have a different interpretation of the project’s information. The information system improves performance during construction. The PMIS system defines the project and program: quality, scope, and time. The PMIS will help UEM Sunrise in defining the team roles (Dhawale, 2016). The contractors and engineers have well-defined roles. The system manages contracts, commitments, permits, and approvals. It communicates and guides collaboration best practices using document management, workflow diagrams, and policies. The basic information found in the PMIS includes project goals and project location.
The BIM software is another form of Information System that UEM Sunrise should implement in their operations. The system can convert 2D designs into 3D designs. The model can rotate a structure to help in viewing it from all angles. The system further is used to zoom elements of the structure. BMI Software can be useful in the operations of the UEM Sunrise when designing the structure (Saeed, 2013). The system helps in evaluating and determining omissions and potential errors in the design. The software allows the constructor to design freely and create naturally a desirable design. The errors can be corrected on the design to ensure a perfect final structure.
UEM Sunrise can further use decision support model in its operation. The DSS involves acquiring knowledge from previous operations. This consists of accessing data stored in the organization using the information system, then analyzing the different operations that had been implemented in the past (Turban et al., 2010). This helps the management decide on the most effective operation to be performed in the current time. This means that the data in the past is useful in the present, thus relevant. This also means that the information system helps improve the operations implemented in the organization and improve productivity. The decision support system can help the management at UEM Sunrise to identify with various past designs and decide on how to modify them or create new designs.
Outbound Logistics
UEM Sunrise outbound logistics involves handover of the residential houses to their buyers. ERP can also be utilized in the UEM Sunrise to permit outbound logistics to the clients. This is accomplished through joining of equipment and programming that computerize back-office capacities inside the association. The framework gives an association between the worth chain sections to improve the profitability of the whole association. This is accomplished through information assortment and control, where information gathered from everywhere throughout the association is utilized to comprehend the tasks done. This enables the association to settle on the measure of inbound to get. Through the information, the association can decide the number of clients who require certain help and items, subsequently making it simple to affirm the sum to be gotten at a specific time (Chofreh et al., 2018). This permits the association to get the sum that is sufficient for it to deal with and not cause a flood of assets. Data is recorded for the individuals who will receive residential homes or buildings.
The database management system (DBMS) includes a system used to gather, manipulate, store, retrieve, and manage data in the database. The database involves data collection that is used to hold data organized for use in an organization. Transactions and customer history are essential data to the organization since they provide a clear illustrates of the progress of the organization. This includes the organization’s customer care ability and the organization’s ability to meet its objectives. Through the information collected in the database, the organization can make decisions that will be focused on increasing the productivity of the organization and improve the organization’s progress. The DBMS provides a connection of the data between the sectors in the value chain. It also allows the data in the database to be accessed and used within the organization to make decisions and improve the organization’s ability to reach the expected objectives required to be achieved (Mahmudova, 2019). UEM Sunrise can use DBMS to connect all the other information systems since it provides the ability to perform actions on the information being gathered and stored within the organization. The DBMS information system provides the ability for the organization to organize its data since it collects large amounts of data from the customers. Data from customers is collected during outbound logistics. These data contain transactions done by the customers through the organization’s system and data on the customers’ perception and satisfaction.
UEM Sunrise organization can utilize the warehouse management system since it helps organizations manage the information collected in the supply chain. This data is used to track products within FINCORP to ensure that the products involved within the organization are accounted for all time. The system utilizes data stored in the database to provide insight on decisions to be made, such as increase the products in the warehouse or reduce those in the store (Lyon & Furse, 2017). The data collected through the system is used for outbound operations since the organization will be able to understand the amount to be given out to the customers.
The FINCORP organization can use the transportation management system since it involves tracking the products being transported to local people. The system provides information on how much the products are and how many customers are being supplied with the product. This makes the organization productive since the data on the products is recorded and stored (Merenkov, 2018). Transparency is highly improved, thus ensuring products do not get lost before they reach the customers. The organization becomes highly successful and productive, thus meeting its objectives and goals that are set within the organization.
Sales and Marketing
This section in the value chain in the organization is involved in ensuring that products are promoted in the market, sold, and distributed to the customers. UEM Sunrise has an established marketing strategy to improve its external collaborations, marketing communication, pricing, and sales performance. There are various information systems that UEM Sunrise can use to improve on their sales and marketing. The Management Information System (MIS) is one of the information systems utilized in the sales and marketing section of the value chain. This system acquires data from the sales and stores the data in the database using the DBMS. The data collected allows managers to analyze the trends in sales done to develop a conclusion on the sections that require more promotion and those working as expected. UEM Sunrise can be used in ensuring that the sales and promotion section of the value chain improves its productivity. The ability to compile data for the managers to make decisions through is a step of improving productivity. Decisions made can also be scrutinized through this system, too, thus offering information on whether to proceed with the tactic or change it (Karlík et al., 2019). This illustrates that different ideas can be made and implemented while tracked to find out if they are progressing well, and when they are not, they get changes.
The other information system used in this section is the transaction processing systems that collect data on the sales done online. The data collected is connected to the other sales done using cash and other physical forms to create a full report. Through this information system, data collected can be analyzed to understand sales progress, thus allowing decisions to be made on how they can be improved (Neeraj et al., 2017). This, in turn, enhances the productivity of the organization’s sales. The promotions can be determined through this data since the managers can understand parts of sales that require improvement and promotion to the public. UEM Sunrise can use the system in ensuring payments are correctly made when customers conduct payments, thus delivering correct orders.
UEM Sunrise can further use the sales information system to improve productivity in sales and marketing. This system gains information from the deals and stores the information in the database utilizing the DBMS. The information gathered permits the organization to examine the patterns on deals done to build up an end on the areas that require more advanced and those that are functioning truly to form. This framework is viable in guaranteeing that the deals and advancement segment of the worth chain improves its profitability. The capacity to arrange information for the administrators to settle on choices through is a stage of improving efficiency (Alianto & Arlan, 2012). Choices made can likewise be investigated through this framework, too, along these lines offering data on whether to continue with the strategy or change it. This represents various thoughts that can be made and actualized while being followed to see whether they are advancing admirably, and when they are not, they get changes. UEM Sunrise can use this system effectively since there are heaps of information gathered there, therefore, making it easy to settle on the systems to endeavor and those to completely actualize. The information system can facilitate the timely delivery of services. Data in sales and marketing enables the organization to reach out to more customers than in the past. This is through analysis of the previous data collected and then making decisions to develop new strategies that surpass the previous ones (Habib & WH, 2020). UEM Sunrise can also benefit in understanding the type of advertisement that is required to be implemented to promote the new products and services in the organization.
Services
The customer service system is a technology used in organizations to improve service provision, customer satisfaction. UEM Sunrise provides services to maintain or enhance the value of its products. UEM Sunrise natures an organization’s culture based on service delivery. The company emerged the best in the property development industry through customer satisfaction. The company aims at improving its services. UEM Sunrise can use various information systems to ensure better service delivery. The company can use the customer relationship management system (CRM). The CRM is an information system that can be used in the services section part of the value chain since it involves the analysis of customers and their potential customers. This system has numerous functions in ensuring that the organization’s productivity. One primary application of the system is to build customer relationships (Sasahara, 2017). This is done by offering support through the system, thus improving customer care and ultimately improving customer relationships. UEM Sunrise can use the system to build their customer relations. CRM can improve UEM Sunrise sales by acquiring information from the customers on their satisfaction with the products and services of the organization. The data collected also improves sales since the organization can determine the processes they should do to promote the services and products they offer to the customers. This also helps streamline the organization’s processes since the information acquired can be used to make decisions on how to improve customer service. The significant contribution of the CRM to the organization’s productivity is harnessing the power of information collected from the customers. They are then using it to improve the relationship with the customers and the service provision. The information collected can help the organization acquire more customers and enhance the organization’s ability to deliver what the customers require most from the organization.
UEM Sunrise can also use the Customer Satisfaction System to improve its services. The CSS involves collecting data from customers relating to the organization’s services and products. This system effectively provides the organization with insights into the customers’ perceptions of their operations. CSS can be used UEM Sunrise to acquire data from their customers on how satisfied they are with the services offered. Since there are numerous customers in the organization, the information is essential in collecting the large amount of data that will be used in making decisions. The parts that the operations that have the lowest customer satisfaction get scrutinized to understand the actions that can be taken to improve the part to ensure customer satisfaction is improved (Grigoroudis & Siskos, 2010). Data collected through this system is stored in the database to ensure it can be accessed easily by managers when analyzing customer satisfaction. The data collected can also help the organization reach its objectives easily since when the organization determines what the customers require and what to be improved to meet their satisfaction. The main function of the CSS is to organize requests and interactions between staff and customers. This is done through an automated system that collects data from the conversations then storing the data in the database. The data helps the customer service section understand how they can help the customers in the future.
Further, UEM Sunrise can implement the Business Intelligence System to improve its services. The BIS comprise of architectures and processes used in the conversion of data into meaningful and useful information that ensures the profitability of the business. Raw data is converted to actionable knowledge and intelligence. BIS provides analysis and predicts future patterns and forecast sales (Nedelcu, 2013). UEM Sunrise can use the information system to their advantage since it influences the strategic, operational business and tactical decision making. BIS facilitates fact-based decisions through the use of historical data. BIS analysis data creates reports, maps graphs and dashboards to provide the company with detailed intelligence concerning the business. The information system will help the company to make informed decisions. Informed decisions help in improving the services in the company. The BIS helps in identifying market trends allowing the company to create strategies to perform well and become profitable in the future.
Support activities
Administration
UEM Sunrise operates in a sophisticated and modern head office located in Solaris Dutamas. The company can implement Enterprise Resource Planning to improve efficiency and productivity in general administration. ERP contributes to the profitability and development of an organization. ERP contributes to the effective functioning of human resources, logistics, finance, statutory compliance, and production. ERP provides software solutions to customers, vendors, and employees. The IS ensures business transparency and solutions. UEM Sunrise can benefit in two main ways by integrating ERP in its general administration (Nawaz & Channakeshavalu, 2013). First, the company will have a unified and collective view of its business that encompasses all departments and functions. Secondly UEM Sunrise will have an enterprise database. The enterprise database facilitates the recording of a business transaction where they are processed, reported, recorded, entered, and monitored. ERP ensures coordination and cooperation in the organization. the company will be in a position to communicate effectively with their stakeholders.
Firm infrastructure
Cloud computing technology can be used to improve productivity in UEM Sunrise infrastructure. Cloud computing is an IT industry concept that influences the effectiveness and efficiency of internet operations, systems, software, and networks. Construction requires intensive processes and efforts which are often challenging to get within the construction industry. Efficient communications and access to accurate information is important in construction projects (Fathi, Abedi & Rawai, 2012). UEM Sunrise should use a private cloud to manage its infrastructure. The private cloud has a single user who accesses data and resources. The resources may be managed or hosted in different ways. The private depends on the current infrastructure and resources available in the company or separate infrastructure. Private cloud does not share resources to a third party therefore UEM Sunrise resources will be protected. The tool will further help the company to comply with regulatory requirements and meet security needs. The chargeback tool will help UEM Sunrise to ensure the business pays for the services and resources used alone.
Human Resource
Employees are important for the success of UEM Sunrise. The management plays a significant role in determining how successful the organization becomes. Employee Management Software ensures ease in keeping track of employee records. The EMS allows the firm’s administrators to transfer, employ, terminate, and promote employees. Every employee whose information is recorded in the software can be edited and added where urgency arises (Simaanya, 2014). The software allows the transfer of employees between positions without retyping their information. UEM Sunrise may use the information system to keep track of its employee’s progress and assign tasks. Employees are a valuable asset to an organization therefore, the management should ensure proper management of their employees. The EMS ensures the perfect stage to align and re-engineer HR processes with the company goals. The system is an easy way of maintaining employees’ details. The system is user friendly and fast in performing organization operations.
Technology development and R&D
The ISO 9001 is a quality management system that UEM Sunrise should implement in R&D. The ISO 9001 helps an organization to gain a competitive advantage through enhancing performance. ISO 9001:200 ensures system compliance and gives attention to issues of CS and CPI through the identification of KPI and measuring it periodically. Data analysis concerning customer satisfaction is done by the use of CPI. An organization has the responsibility to identify the information they wish to measure or monitor in determining customer satisfaction. The satisfaction of the customers is indicated in the CSI. An organization should have a CSI measurement method depending on customers’ expectations and needs (Popescu, Mandru & Gogoncea, 2017). The ISO 9001:2004 indicates that CPI should be implemented and planned. The elements in the CPI include quality objectives and policies, analysis of feedback data, preventive and corrective audits, and audit results. UEM Sunrise company can source customer satisfaction from, surveys and questionnaires, customers complainants, industry studies, or reports from customer feedback. Information about dissatisfaction and Customer satisfaction is used to the advantage of the organization to identify areas they need to improve on. An organization needs to develop expertise and knowledge of the information gathered. Information gathered by the use of ISO 9001 can be used by UEM Sunrise to identify their weaknesses and strengths. Company development is enhanced through the use of research from ISO 9001.
Procurement
Procurement involves obtaining something by a company. There are various information systems that UEM Sunrise can use in its procurement. One of the information systems includes spending analysis software. The SAS enables the users to have an overview of data expenses for the company and reduce the agency of additional data analysis concerning trend analysis and reports. The Information System brings various advantages to the organization. The system ensures the visibility of the company expenses. There is substantial consistency, accuracy, and improvement of information and data. The system further ensures quality analysis in the firm (Maržić, Krneta & Pavlic, 2014). SAS will help UEM Sunrise to reduce maverick spent on the additional savings. The IS further ensures fast and easy identification of saving opportunities. The SAS ensures savings by identifying larger orders and suppliers. The information system will help UEM Sunrise to avoid overpayments to the suppliers. The company managed to reduce its procurement process depending on the IT expertise in expense and supplying data. The software allows uncovering of purchasing patterns in the organization. The software further ensures the identification of cost-saving opportunities and performance improvement.
In conclusion, information is an essential part of an organization and its success, thus making it a part of the value chain. The information systems on each section of the value chain provide a solution that allows the company to acquire data that can help in improving the part improving each part leads to improvement of the entire organization and its productivity. The data framework is utilized to improve the correspondence connecting the unmistakable pieces of the worth chain, helps in the capacity and recovery of information. Information is a fundamental piece of an association’s turn of events and achievement. This makes data frameworks profoundly important to guarantee that the information inside the association. In money related organizations, information is gathered in all exchanges since these organizations run various exchanges that require to be put away for references. The information systems selected in each section are connected to a single database that utilizes the database management system that enables data to be accessed by all the parts of the value chain. This, in turn, allows the organization to improve its functions and its productivity.
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