Report Project SISP
Transcript of Report Project SISP
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CHAPTER I
COMPANY BACKGROUND
MAE was founded by the CEO/Group Managing Director Datuk Jimmy KS Lim and his
business mates. Specialize in system design, manufacture and system integration of automated
material handling solution to a large spectrum of industries including coal and mineral, food and
beverage processing, automotive, airport, electrical and electronic, pulp and paper, postal and
courier services, wholesales and distribution, retail and general merchandise.
Back to 1979, MAE was established in Singapore to produce high quality engineering
design scale models such as architecture, infrastructure and ship models to local clients. In mid
1980s, the company started the trading business in engineering and power transmission products
in Malaysia such as motors, automation parts, sensors, semiconductors and components.
Subsequently MAE ventured into material handling business and formed a strategic partnership
with Maruyasu Kikai - a material handling specialist from Japan. From there on, the company
further developed the technology and started penetrating into overseas market via setup of
subsidiary companies. Today, MAE is well equipped with the technology and resources to
provide turnkey material handling solution and has established a global network to serve its
clients needs in both domestic and overseas markets, including Europe, USA, Middle East and
Asia regions, with total over 700 employees.
MAEs strength lies on in -house engineering and manufacturing capability. Throughout
the years, MAE has developed a wide range of standard conveying equipment for diverse
applications. With more than 20 years of experience, MAE has garnered the reputation as one of
the reliable automated material handling solution providers. MAEs products and services have
been proven to be efficient, sturdy and highly cost-effective. The group has five main business
areas as below:
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i. Unit Material Handling Solution (UHS)
ii. Logistic Sortation and Warehousing Solution (LSW)
iii. Bulk Material Handling Solution (BHS)
iv. Contract Manufacturing Service (CMS)
v. Other Strategic Business Units (SBU)
Other SBUs of the group including:
AE-Keed Packaging Machine Pipe and Joint System Engineering Design Scale Model Trading of engineering and power transmission product
Engineering Design Scale Model that operates under Strategic Business Units (SBU)
provides finely crafted scale models for the client to test their concept in physical space. Having
vast experience in building high quality scale models, such as architecture, building,
infrastructure and ship models, Engineering Design Scale Model utilize CAD programs with
CO2 precise laser cutting and milling machines in generating the clients model, with great care
and sense of realism, that assist the client to achieve their objective, in marketing andengineering of their projects.
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CHAPTER II
BUSINESS PLAN
2.1 Vision & Mission
2.1.1 Vision
To be a world-class material handling solution provider
2.1.2 Mission
To provide advanced material handling technology with competitive price,
good quality and on-time
2.2 Business environment (external)
A business converts inputs into outputs in order to make a profit. However,
business does not operate in a vacuum. It has to act and react to what happens outside the
factory and office walls. These factors that happen outside the business are known as
external factors or influences. These will affect the main internal functions of the
business and possibly the objectives of the business and its strategies. The main factor
that affects the business is the degree of competition or how fiercely other businesses
compete with the products that another business makes. Business environment consist of all those factors that have a bearing on the business. The term business environment
implies those external forces, factors and institutions that are beyond the control of
individuals business organizations and their management and affect the business
enterprise. These forces are customer, creditors, competitors, government, and socio-
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2.3 SWOT Analysis
SWOT is a tool that identifies the strengths, weaknesses, opportunities and threats
of an organization. Specifically, SWOT is a basic, straightforward model that assesses
what an organization can and cannot do as well as its potential opportunities and threats.
The method of SWOT analysis is to take the information from an environmental analysis
and separate it into internal (strengths and weaknesses) and external issues (opportunities
and threats). Once this is completed, SWOT analysis determines what may assist the
company in accomplishing its objectives, and what obstacles must be overcome or
minimized to achieve desired results. Below is the result of SWOT analysis for
Malaysian AE Models Holdings Berhad (MAE):
STRENGTH
Employee skills High productivity Pattern and copy right
WEAKNESS
Economic upswing Problems over quality Low employee morale
OPPORTUNITY
Market growth
THREAT
Economic downturn Higher input prices.
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i. Strength Employee skills
All employees must undergo the training first before they were
considered as the permanent employee. For every project, a new team
is formed to ensure effective resource planning and project
execution. Lead by a project manager that give advises and assists
their team members at the start-up to the full operation of the system.
Via Master Project Scheduling, they ensure operational excellence and
to complete finished products in good quality and functionality, within
budget, and on-time delivery according to the desired schedule.
High productivityQuality is always the top priority in MAEs business philosophy. They
only use high quality components and parts from the industrys
reputable manufacturers in their equipment to ensure high product
performance.
Pattern and copy right
All model designs by MAE Models Group are copyrighted. Anyattempt to copy or alter of the design will be prosecuted by the law.
ii. Weakness Problems over quality
The company provides finely crafted scale models and building high
quality scale models, such as architecture, building, infrastructure and
ship models. All the measurement and design is needed to be precise,
but sometime the model implemented is not fulfilled the requirement.
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Low employee morale
Low employee morale can be destructive in a business setting and can
lead to dissatisfaction, poor productivity, absenteeism and even
turnover.
iii. Opportunity Market growth
The overall demand for the product selling has increased.
iv. Threats Economic downturn
The economy of a country experiences a sudden downturn brought on
by a financial crisis.
Higher input prices
The supplier sell the component needed to build the model design in
high price.
2.4 Porters five forces model
The Porter's Five Forces tool is a simple but powerful tool for understanding
where power lies in a business situation. This is useful, because it helps the company
understands both the strength of the current competitive position, and the strength of a
position that are considering moving into.
With a clear understanding of where power lies, the company can take fair
advantage of a situation of strength, improve a situation of weakness, and avoid taking
wrong steps. This makes it an important part of the planning toolkit.
Conventionally, the tool is used to identify whether new products, services or
businesses have the potential to be profitable. However it can be very illuminating when
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used to understand the balance of power in other situations. Porters Five Forces Model
Analysis assumes that there are five important forces that determine competitive power in
a business situation. These are:
i. Traditional competitor
If the company has many competitors, and they offer equally attractive products
and services, then the company will most likely have little power in the situation,
because suppliers and buyers will go elsewhere if they don't get a good deal from
the company. On the other hand, if no one else can do what the company does,
then the company can often have tremendous strength. The rival of Malaysian AEModels Holdings Berhad (MAE) is an average level because theres no so much
company that offer and produce the same product and services.
ii. Threat of new market entrants
Power is also affected by the ability of people to enter the market. If it costs little
in time or money to enter the market and compete effectively, and if there are few
economies of scale in place, or if there have a little protection for the key
technologies, then new competitors can quickly enter the market and weaken the
position. If the company has strong and durable barriers to entry, then it can
preserve a favorable position and take fair advantage of it. Malaysian AE Models
Holdings Berhad (MAE) can be considered as the business with high barrier, but
great deal investment. Many investment and good business plan is required to
enter and setup this company. Besides that, MAE also get many sub-contract from
others big company either from local company or international company. Brand
of MAE was established long time ago, so the possibility of new markets entrants
is low.
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for lower prices. It is because there has not much company that run such
particular type of business in Malaysia.
v. Bargaining power of suppliers
Suppliers have a great deal of influence over an industry as they affect price
increases and product quality. A supplier group exerts even more power over an
industry if it is dominated by a few companies, there are no substitute products,
the industry is not an important consumer for the suppliers, their product is
essential to the industry, the supplier differ costs, and forward integration
potential of the supplier group exists. Labor supply can also influence the position
of the suppliers. These factors are generally out of the control of the industry orcompany but strategy can alter the power of suppliers. Malaysian AE Models
Holdings Berhad (MAE) company has many suppliers to supply the raw material
needed for produce and build the model. But the raw material is limited and
cannot use for personal purpose. All raw materials taken from store must be
recorded. The person in charge will do the inventory to make sure that the raw
material is enough for the project and not misused by the employee. Price of
design scale model is base on the price of the raw material and the time to finish
the project. MAEs strategic plan stated that the cost of production must b e lower
but the quality of the product must be higher.
2.5 Business Objectives
The objectives of this company are:
To enhance living standard and working knowledge of the employees
To fulfill social responsibility to the society To create continuous learning culture To minimize cost and maximize efficiency To achieve excellence customer satisfaction
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CHAPTER III
PRESENT IS/IT
3.1 Information system employed (internal, external)
Internal:
Knowledge management is essentially about getting the right knowledge to the
right person at the right time. This in itself may not seem so complex, but it implies a
strong tie to corporate strategy, understanding where and in what forms knowledge exists,
creating processes that span organizational functions, and ensuring that initiatives are
accepted and supported by organizational members. Knowledge management may also
include new knowledge creation, or it may solely focus on knowledge sharing, storage,
and refinement
The overall objective is to create value and to leverage, improve, and refine the firm's
competences and knowledge assets to meet organizational goals and targets.
Implementing knowledge management thus has several dimensions including:
a) Organizational
The MAE has a well-defined organizational structure with clearly defined
delegation of responsibilities to Committees of the Board and to Management that
promotes accountability for appropriate risk management and control procedures.
The procedures include the establishment of authority limits for all aspects of the
business, which is subject to periodic review throughout the year as to their
implementations and their continuing suitability.
http://www.knowledge-management-tools.net/knowledge-information-data.htmlhttp://www.knowledge-management-tools.net/knowledge-sharing.htmlhttp://www.knowledge-management-tools.net/knowledge-sharing.htmlhttp://www.knowledge-management-tools.net/knowledge-information-data.html -
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b) MAE Policies and Guidelines
Internal procedures and policies are clearly documented in manuals and reviewed
and revised periodically to meet changing business, operational and statutory
reporting needs. This is to ensure proper documentation, approvals and effective
control over operating units within the MAE. Operating manuals are also available
within the MAE and these set out policies and procedures for day to day operations
and act as guidance to employees on the necessary steps to be taken in a given set
of circumstances. The manuals enable tasks to be carried out with minimal
supervision.
c) Delegation of Authority
Delegation of authority including authorization limits at various levels of
Management and those requiring the Boards approval are documented and
designed to ensure accountability and responsibility. The authority of the Directors
is required for key treasury matters including changes to equity and loan financing,
interest rates, cheque signatories, the opening of bank accounts and foreign
operations. Clear definition of authorization procedures and delegated authority
levels for major tenders, major capital expenditure projects, acquisitions and
disposals of businesses, and other significant transactions are in place. The
approval of capital and revenue proposals above certain limits is reserved to the
Board. Other investment decisions are delegated for approval in accordance with
authority limits. Comprehensive appraisal and monitoring procedures are applied
to all major investment decisions.
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External:
From the outset it is crucially important to understand that Business Intelligence cannot
replace Competitive Intelligence. Both has its place and both is of the utmost importance
for the success of any organization
1. Competitive intelligence (CI)
Competitive Intelligence is the gathering and analyzing of intelligence about the
behavior of the market deal in, in order to make certain decisions based on market
trends. Since competitors are a part of the market, the collecting of information oncompetitors that enables you to monitor their behavior in order to pinpoint their
weak/strong points will form part of CI.
Due to the rapidly changing face of business, competition now spreads across the
continents and information technology networks. Technology is speeding the flow of
transactions, decisions, and knowledge-flow and as a result, corporations are
demanding more CI information. Some firms depend on their senior-level
management to locate key information on competitors.
Others have a centralized internal division solely for the purpose of conducting CI
reviews. Still others spend large amounts of money through the employment of
Competitive Intelligence companies, in exchange for a wealth of competitor
information. CI teams come in all sizes, yet it must be realized that information must
reach the right people at the right time. Communication, credibility, collaboration,
teamwork, consistency and confidentiality are key elements in conducting CI.
By understanding competitive intelligence and how important it has become in
businesses all over the world, it is evident it has become a requirement in corporate
managements strategies and decisions and a necessi ty to master and comprehend in
order to succeed.
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2. Business Intelligence (BI)
Business Intelligence is the management of a companys internal data. This includes
the Extract, Transform and Loading of this data in a well designed Data Warehouse in
order to extract and present the data as intelligent information. This will help any
business make better decisions based on its own historic information and can therefore
project possible future trends.
Business intelligence can be applied to the following business purposes, in order to
drive business value.
a) Measurement
MAE creates a hierarchy of performance metrics and benchmarking that informs
business leaders about progress towards business goals or business process
management) .
b) Analytics
MAE builds quantitative processes for a business to arrive at optimal decisions and
to perform business knowledge discovery. Frequently involves: datamining, process mining, statistical analysis, predictive analytics, predictive
modelling, business process modelling, complex event processing and prescriptive
analytics.
c) Reporting /enterprise reporting
MAE builds infrastructure for strategic reporting to serve the strategic
management of a business, not operational reporting. Frequently involves data
visualization, executive information system and OLAP.
http://en.wikipedia.org/wiki/Measurementhttp://en.wikipedia.org/wiki/Performance_metricshttp://en.wikipedia.org/wiki/Benchmarkinghttp://en.wikipedia.org/wiki/Business_process_managementhttp://en.wikipedia.org/wiki/Business_process_managementhttp://en.wikipedia.org/wiki/Analyticshttp://en.wikipedia.org/wiki/Data_mininghttp://en.wikipedia.org/wiki/Data_mininghttp://en.wikipedia.org/wiki/Process_mininghttp://en.wikipedia.org/wiki/Statistical_analysishttp://en.wikipedia.org/wiki/Predictive_analyticshttp://en.wikipedia.org/wiki/Predictive_modelinghttp://en.wikipedia.org/wiki/Predictive_modelinghttp://en.wikipedia.org/wiki/Business_process_modelinghttp://en.wikipedia.org/wiki/Complex_event_processinghttp://en.wikipedia.org/wiki/Prescriptive_Analyticshttp://en.wikipedia.org/wiki/Prescriptive_Analyticshttp://en.wikipedia.org/wiki/Reportinghttp://en.wikipedia.org/wiki/Enterprise_reportinghttp://en.wikipedia.org/wiki/Data_visualizationhttp://en.wikipedia.org/wiki/Data_visualizationhttp://en.wikipedia.org/wiki/Executive_information_systemhttp://en.wikipedia.org/wiki/OLAPhttp://en.wikipedia.org/wiki/OLAPhttp://en.wikipedia.org/wiki/Executive_information_systemhttp://en.wikipedia.org/wiki/Data_visualizationhttp://en.wikipedia.org/wiki/Data_visualizationhttp://en.wikipedia.org/wiki/Enterprise_reportinghttp://en.wikipedia.org/wiki/Reportinghttp://en.wikipedia.org/wiki/Prescriptive_Analyticshttp://en.wikipedia.org/wiki/Prescriptive_Analyticshttp://en.wikipedia.org/wiki/Complex_event_processinghttp://en.wikipedia.org/wiki/Business_process_modelinghttp://en.wikipedia.org/wiki/Predictive_modelinghttp://en.wikipedia.org/wiki/Predictive_modelinghttp://en.wikipedia.org/wiki/Predictive_analyticshttp://en.wikipedia.org/wiki/Statistical_analysishttp://en.wikipedia.org/wiki/Process_mininghttp://en.wikipedia.org/wiki/Data_mininghttp://en.wikipedia.org/wiki/Data_mininghttp://en.wikipedia.org/wiki/Analyticshttp://en.wikipedia.org/wiki/Business_process_managementhttp://en.wikipedia.org/wiki/Business_process_managementhttp://en.wikipedia.org/wiki/Benchmarkinghttp://en.wikipedia.org/wiki/Performance_metricshttp://en.wikipedia.org/wiki/Measurement -
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d) Collaboration /collaboration platform
MAE gets different areas (both inside and outside the business) to work together
through data sharing and electronic data interchange.
e) Knowledge management
MAE make the company data driven through strategies and practices to identify,
create, represent, distribute, and enable adoption of insights and experiences that
are true business knowledge. Knowledge management leads to learning
management and regulatory compliance /compliance.
Competitive Intelligence is sometimes bundled under Business intelligence instead of
both disciplines being grouped together as Knowledge Management (KM). Seeing these
two specifically different terms as similar is not incorrect as both is in actual fact born out
of the need to gain an edge over competition in your specific market, but this can
however get confusing as both these disciplines requires distinctly different skill sets
(although certain individuals may have knowledge in both). A BI professional needs
intensive database and database design skills as well as technical IT skills in BI and ETL
tools. A CI professional need skills in strategic thinking, should have extensive analytical
abilities and should be familiar with various scientific analytical methodologies. Both
individuals should have extensive knowledge of the specific industry and should be able
to sift pieces of data into actionable intelligent information.
3.2 Use role of IS in business
1. Management Information System (MIS)
Management information system (MIS) is one of the major computer based information
systems. Its purpose is to meet the general information need of all the managers in the
http://en.wikipedia.org/wiki/Collaborationhttp://en.wikipedia.org/wiki/Collaboration_platformhttp://en.wikipedia.org/wiki/Data_sharinghttp://en.wikipedia.org/wiki/Electronic_data_interchangehttp://en.wikipedia.org/wiki/Knowledge_managementhttp://en.wikipedia.org/wiki/Learning_managementhttp://en.wikipedia.org/wiki/Learning_managementhttp://en.wikipedia.org/wiki/Regulatory_compliancehttp://en.wikipedia.org/wiki/Compliance_(regulation)http://en.wikipedia.org/wiki/Compliance_(regulation)http://en.wikipedia.org/wiki/Regulatory_compliancehttp://en.wikipedia.org/wiki/Learning_managementhttp://en.wikipedia.org/wiki/Learning_managementhttp://en.wikipedia.org/wiki/Knowledge_managementhttp://en.wikipedia.org/wiki/Electronic_data_interchangehttp://en.wikipedia.org/wiki/Data_sharinghttp://en.wikipedia.org/wiki/Collaboration_platformhttp://en.wikipedia.org/wiki/Collaboration -
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3.3 Infrastructure
Technology is an important aspect in the alignment of information systems with
business strategy. This is dependent on the type of information systems infrastructure
used as a resource to assist in granting business goals. An infrastructure of organizational
capabilities is the primary basis for a company's sustainable competitive advantage. It is
important for continuously updating and improving the strategic capabilities architecture.
Todays business environment makes it imperative that th e dynamic infrastructure
requirements align with the business needs. The client demand is become higher. In order
to catch up with the clients demand, MAE Model Group must face up with a few of
client challenge such as:
Higher IT infrastructure spends with reduced budgets Lack of transparency in infrastructure managed services Service management integration within a multi- sourced IT environment Inability to effectively respond to the changing infrastructure environment
With emerging trends and technologies such as cloud computing and an on-demand
IT environment, organizations seek consolidation, standardization and rationalization.
The transformation offerings and solutions transform the IT environment from the current
as- is state to the target to - be state leveraging an analytics transformation framework.
By using this kind of technology and IT infrastructure, MAE can boost up their business
value such as:
Predictable and standardized processes On-demand environment solutions to meet the dynamic business needs Transparent infrastructure solutions that reduce the total cost of ownership (TCO)
with various tools and automation frameworks
Multi-sourced environment expertise to manage suppliers Enterprise-wide transformat ion framework that helps you achieve the to - be state
from an as -is state
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CHAPTER IV
RECOMMENDATION FOR FUTURE IS/IT
4.1 Use role of IS in businesses based on strategic direction
One of the ongoing challenges successful businesses face is in optimizing customer
satisfaction and developing Customer Relationship Management (CRM). CRM strategy should
be aligning to the organizations mission and purpose in order to harness the power of CRMsoftware and bring about a sustained achievement of business objectives and profitable customer
relationships to the MAE.
Moreover, raising customer satisfaction levels requires a comprehensive systems approach such
as below:
a. Setting a clear customer experience strategy
Often organizations confuse defining a customer experience strategy with creatinga "slogan". How many companies create a slogan without any supporting
initiatives, thereby disillusion employees and creating a "flavor of the month?"
To establish a good strategy certain key practices are required:
Understand the overall organizational vision and mission
Define the organizations customer service direction, slogan and values
Ensure customer service is defined as a key responsibility for the business ordepartment in MAE
Share the customer experience strategy via a comprehensive communications
program
Ensure that this strategy does not conflict with other business strategies.
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b. Selecting the correct employee
When recruiting employees to provide customer service, the process often tendsto concentrate more on functional expertise, technical competence and knowledge
rather than interpersonal skills. However, lack of the right attitude can drastically
affect customer satisfaction levels. Research has in fact shown that attitude is the
most important requirement because the skills and functional expertise can be
taught.
Therefore in selecting the right people:
Define the critical job requirements
Develop scenario-based interviews or assessment centers to screen and select
candidates
Involve multiple team members in the hiring process
Ensure evaluation is based on objective, not the subjective "Be Like Me"
criteria
c. Developing, motivating and managing the employee
Even though MAE has hired the right people, there is still a need to orient them
into the organizations customer relationship culture and define key
communication skills. In Call Centers and Technical Support departments, there is
a tendency to rely on technical or functional skills and neglect interpersonal skills
development. This can result in providing acceptable material service, the more
tangible aspect, yet unacceptable personal service, the competitive differentiator.
Therefore to build a customer relationship culture, it is important to:
Provide training in key areas required to deliver exceptional personal service
Reinforce these skills using ongoing coaching and feedback
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Measure current performance levels
Reward performance using a combination of monetary awards and non-
monetary recognition
d. Establishing effective service delivery processes
Effective processes and procedures provide the foundation for smoothing or
inhibiting the material service element of the customer interaction. Efficient
service delivery models appear transparent to the customer. Poor models create
those 'speed bumps' that necessitate personal intervention in order to satisfy the
customer requirements.
The critical elements in ensuring a positive material customer experience are:
Mapping the service delivery processes
Evaluating critical success points in the process
Defining service standards and objectives for these essential points
Establishing service delivery procedures to optimize material service
Creating service level agreements to smooth internal service delivery
e. Building in continuous improvement
No matter how effective the service delivery processes, or well trained the service
deliverers, things go wrong. Products have faults. Customers get frustrated.
Things slip through the cracks. The organizations that built around managing the
customer experience are able to resolve these issues effectively. This process
known as "recovery" is an important differentiator in building customer loyalty.
In order to recover effectively, it is necessary to:
Actively seek customer feedback and complaints: MAE cannot improve if
MAE does not know what went wrong in the first place.
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Train staff how to handle customer complaints effectively using the correct
mix of empathizing, apologizing and resolution.
Make sure that the real problem is solved, not just the symptoms.
Focus on proactive (prevention) as well as reactive (cure) problem solving.
f. Ensuring managers are the key change-agents
As consultants, MAE needs to observe that senior management often has the
vision, intention and commitment to introduce a comprehensive CRM. The "make
or break" element is in involving middle management in the change process, and
empowering them to be the key change-agents.
To do this, it is important to:
Engage the management team early and often in the process
Involve management members in articulating the customer experience
strategy
Teach managers coaching skills so that they are able to articulate and
reinforce the key personal service skills Use managers as facilitators when rolling out interpersonal skills training
Reward managers on establishing, monitoring and updating service delivery
processes
Ensure managers are able to act as an example to their teams.
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CHAPTER V
CONCLUSION
As conclusion, the information has emerged as an agent of integration and the enabler of
new competitiveness for today MAE enterprise in the global marketplace and because strategic
IS supports or shapes competitive strategies, the concepts of Information System (IS) is so
important. Information Technology (IT) can be use to support a variety of strategic objectives,
including creation of innovative applications, changes in business processes, links with business
partners, reduction of costs, acquiring competitive intelligence, and others.
Furthermore, the opinion of some IS scientists and reviewed the literature of the strategic
IS, competitive advantage and porters model for competitive situations. According to the MAE,
we can say one of the important factors in new challengeable business environment is emphasis
on strategic IS and this is no ended research topic. We believe for achieving successfulness,
organizations must establish all aspects for their planning structures based on strategic planning
and otherwise only word that can communicative of results is failure.
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http://www.ae.com.my http://www.enotes.com/portes-5-forces-model-reference/porter-5-forces-model
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