Management of information system report

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Management of information system report

  1. 1. Rennes International School of Business ESC RENNESExecutive Master of Business Administration EMBA COHORT 1 (2003 - 2004) Management of Information Systems Conducted by: Mark GREGORYThe Information Management System of MENATEL By Magdy A. Sattar May, 2004 Cairo, Egypt
  2. 2. EXECUTEVE SUMMARY .................................................................................................................. II1- INTRODUCTION......................................................................................................................... 12- REPORT OBJECTIVE ................................................................................................................ 13- MENATEL PROFILE.................................................................................................................. 14- CURRENT SITUATION ANALYSIS ........................................................................................ 55- MENATEL SUPPLY & VALUE CHAIN ................................................................................ 106- MENATEL OUTLINE BUDGETS ........................................................................................... 137- INFORMATION SYSTEM STRATEGY ................................................................................. 148- INFORMATION MANAGEMENT STRATEGY ................................................................... 219- INFORMATION TECHNOLOGY STRATEGY .................................................................... 2110- CONCLUSION ....................................................................................................................... 2311- RECOMMENDATION ......................................................................................................... 2412- REFERENCES ....................................................................................................................... 2413- ANNEXES................................................................................................................................. 1EMBA CairoRennes International School of Business I
  3. 3. EXECUTEVE SUMMARYThis report is about Menatel information system, how Menatel manages its information. I willstart by describing Menatel profile and illustrating it in brief; Menatel business nature, Menatelorganization levels, Menatel objectives, vision, strategic statement, values, and work system.I will show some of Menatel quantities indicators; such as commercial, operational, andfinancial indicators, plus Menatel critical success factors and technology.I will continue analyzing the current situation highlighting market environment, market players,and market share, also analyzing the external and internal environment of Menatel usingSWOT analysis.I will describe Menatel supply and value chain illustrating Menatel relation with its suppliersand its main process that add value to the customer. Discuss Menatel budget and howMenatel allocates IT expenses over Menatel income statement.I will also cover what is Menatel information system strategy by analyzing Menatel businessand technical environment, identifying Menatel customers, Menatel environment, Menatelbusiness process, Menatel participants, Menatel information, and Menatel technology.One step deeper into Menatel process I will analysis Menatel maintenance process, what areits objectives, organization, information flow, and finally my findings in order to develop theprocess.I will try to design simple data base using ERA techniques to improve and develop themaintenance process through developing the spare parts process. Then I will brief menatelinformation management strategy through procurement specification and security measures.Also I will brief Menatel technology strategy through summarizing menatel informationsystems architecture.A general conclusion to all the above discussions, I will illustrate Menatel global businesssolutions, challenges, organization, information system, technology, and management, fromthe IT point of view.Finally, final recommendation to develop part of Menatel global process as abase of adevelopment plan to the future.EMBA CairoRennes International School of Business II
  4. 4. 1- INTRODUCTIONIn this report by the here below items, I will start by briefly describing what is Menatel? Whatis payphone business? What is Menatel existing strategy? I will define elements of Menatelinformation system, Menatel information technology, and Menatel information managementstrategies. At the end a corresponding conclusion and findings in order to reach goodrecommendation. 2- REPORT OBJECTIVEThe purpose of this report is for me to review Menatel strategic information system planningprocess by reviewing the existing practice, analyzing it using what have been taught duringthe module, and then providing well-founded suggestions or recommendations forimprovement. It will also be a tool for the instructor to measure to what extend I have digestedthe course objectives, and fulfilled what was expected from me by being more familiar withthe terminology, concepts, and underlying issues regarding the management of informationsystems. I will try to carry out this assignment in order to consolidate my learning and try toreach useful conclusions about how information systems and information technology can bebetter exploited in Menatel. 3- MENATEL PROFILE 3-1 Menatel in briefLate in 1998 Menatel was born as a joint stock company, under investment law number8/1997 registered in 1998 under number 314030. Menatel is granted a ten years; renewablelicense, to install, operate, and manage a telecommunication network of at least 30,000 publicpayphone. Egyptian shares are 53 % and foreign shares are 47 %. By the end of 2003Menatel has been operating a payphone network with near to 30,000 payphones in operation,and work force of more than 400 employees. Thanks to our customers love, appreciation, andtrust Menatel’s two colours (green and yellow) are now a trend, they can be seen everywhere, not only on Menatel payphones but also kiosks, bill-boards or sometimes evenbuildings are painted in those two colours. This proves the fact that Menatel has succeeded tobecome an integral part of people’s daily life in Egypt. 3-2 Menatel business natureMenatel is in the prepaid cards payphone business, Menatel products are calls (minutes),local calls, national calls, mobile calls, and international calls. Menatel is selling its productsEMBA CairoRennes International School of Business 1
  5. 5. through a payphone network that covers all Egypt and managed by a payphone managementsystem. 3-3 Menatel organization levels Strategic Level (Seniors) Management Level (Middle managers) Operational Level (supervisors) 3-4 Menatel objectives Exceptional Customer Satisfaction. Inspired, innovative and empowered Employees. Depending on local sourcing whenever possible. Superior Financial Results. 3-5 Menatel Vision & Strategic statementTo be the leaders in the field of telecommunication services, as well as the leader in creatinga national base of accumulated expertise of high Egyptian telecom engineers. Our strategicstatement logo is simply two words “Etkalem Berahatek” talk freely.EMBA CairoRennes International School of Business 2
  6. 6. 3-6 Menatel Values Customer First. Integrity in All we do. Excellence through Total Quality. Respect for others. Respect for our environment. Growth through change. 3-7 Menatel work systemThe diagram below represents Menatel working system; Suppliers Customers MENATEL Information System Processing Classify Arrange Calculate Input Analyze Output Feed Back Competitors Regulatory Agencies Stockholders Purpose; to provide voice communication minutes to the outdoor consumers. Boundaries; Menatel payphones network. Environment; competitors, suppliers, governments. Inputs; fixed lines, locations, payphones, cards, data Outputs; voice communication minutes, servicesEMBA CairoRennes International School of Business 3
  7. 7. 1 3-8 Menatel Quantities indicators Commercial indicators Indicators Dec.2000 Dec.2001 Dec.2002 Dec.2003 Number of locations (Thousand) 22.1 37.8 43.3 62.4 Sales Point (Thousand) 20 35 45 42 Line Retain (Thousand) 17.3 25.6 30.6 30.5 Cards Sales (Million, LE) 220.3 340.4 400.1 360.1 Total revenue (Million, LE) 196.8 295.2 351.4 321.9 Average Revenue/day/PP (LE) 33.6 33.6 34.3 29.3 Operational indicators Indicators Dec.2000 Dec.2001 Dec.2002 Dec.2003 Civil work (Thousand) 18.2 28.7 31.8 32 Booth Installed (Thousand) 16.2 24.9 29.3 30 Payphones IO (Thousand) 16 24 28 30 Numbers of Calls (Million) 291.5 437.3 520.5 476.4 Numbers of Minutes (Million) 580.5 870.7 1036.5 948 Quality of Service 96 % 95 % 97 % 98 % Financial & Administration indicatorsHuman Resources Indicators Dec.2000 Dec.2001 Dec.2002 Dec.2003 Expatriates 5 5 3 3 Managers 27 28 28 26 Employees 203 307 363 370 Total 235 340 394 399Key Financial Ratios Indicators Dec.2000 Dec.2001 Dec.2002 Dec.2003LIQUIDITY RATIOS Current Ratio 0.95 0.81 0.79 0.47 Quick Ratio 0.91 0.71 0.69 0.40ACTIVITY RATIOS Gross Profit Margin 9.78% 17.36% 13.73% 8.23% Return on Equity 31 % 73 % 69 % 38 % Return on Investments 26.43% 71.43% 67.14% 35.71%1 Menatel Internal monthly Reports.EMBA CairoRennes International School of Business 4
  8. 8. LEVERAGE RATIOS Debt to Assets 0.36 0.53 0.63 0.87 Debt to Equity 0.98 1.76 2.46 2.40PROFITABILITY RATIOS EBITDA/net income 41.60% 27.16% 21.35% 19.02% Net Profit/net income 12.50% 16.83% 13.28% 7.94% 3-9 Menatel Critical Success Factors (CSFs)The key of success at Menatel is that Menatel manages all its resources; tangible andintangible, in a way that optimize maximum use of all the resources to gain the maximumefficient use of them. Tangible Resources, financial and physical assets Intangible Resources, human resources, reputation, and technology 3-10 Menatel Technology Menatel Pay-Phone System (PMS, V7)TechnologyPMS V7, the new Ascom management system (300 distributed management),for card, coin,and multi-payment payphones, for outdoor, and indoor, for off-line and on-line payphones, foranalogy, IDSN, and wireless payphones, for multimedia terminals with a superior range ofadvanced services and outstanding level of security. Smart Card TechnologyMenatel uses smart cards, which are the highest existing technology for cards not only forPayphones but also, for Banks and Mobiles. 4- CURRENT SITUATION ANALYSIS 4-1 Market EnvironmentEgyptian telecommunication market is a promising market, despite of Telecom Egypt (TE)dominance over the market, the escalating developments of the market toward liberalization,the issuing of telecommunication law in February 2003, and the role of TelecommunicationsRegularity Authority (TRA) will make TE a Dinosaur no more.EMBA CairoRennes International School of Business 5
  9. 9. The fixed lines telecom market is getting more competitive, as TE is pushing toward increasing the penetration rate, by offering lines at 50 % discount, the ambitious universal plan for TE to operate 40,000 payphone all over Egypt, the recent entrance of the prepaid calling scratch card (two new licenses) in addition to TE Marhaba card, and Egypt Telecard. The second payphone license, our direct competitor (with two brands, Nile Telecom, and Rengo), is in a very tough situation, with lots of debts to TE that might drive them to go bankrupt, or to turn their debt into equity for TE. In both cases we are anticipating to seize the opportunity of the gap of their absence, and the new competition directly with TE (unfair competition) or to compete with a new comer (not likely to happen due to the current political and economical situation). We strongly believe that the TRA will not allow us to be the sole player in the market. Thus if our direct competitor went out of market or bankrupted, they would issue a call for new payphone license or they will allow TE to go into this market to fill the gap, and avoid Menatel monopoly. The indirect competition by the two GSM companies (Vodafone and Mobinile), through their prepaid and post-paid lines, we are monitoring the two big elephants movements towards increasing the capacity of their network and subscribers. 4-2 Market Players Telecom Egypt (TE) Telecom Egypt (TE) operates more than 7 million lines in Egypt, some 80% lines installed are residential, 17% business and the remaining 3% government. The Egyptian fixed lines market is under-penetrated; at the end of 2002 wire line penetration totalled 12%, representing 7.75 million access lines in service. Expected wire line penetration in the end of 2007 is 19.6%, representing 14-million access line in service. Wire line 1998A 1999A 2000A 2001A 2002A 2003A 2004F 2005F 2006F 2007F penetration Year to JunePopulation (m) 62.7 64.0 65.0 66.0 67.00 67.8 68.7 69.5 70.2 71.5 Access line 3,972 4,686 5,530 6,530 7.75 8,830 10,130 11,430 12,730 14,00installed (000) Growth (%) - 18 18 18 19 16 15 13 11 11Additions (000) - 714 844 1,000 1,220 1,200 1,300 1,300 1,300 1,300Penetration (%) 6.3 7.3 8.5 9.9 12 13 14.7 16.5 18.1 19.6 A= actual, F = forecasted EMBA Cairo Rennes International School of Business 6
  10. 10. Prepaid Calling Scratch Card (PCC)Two active players in the market, one is a private owned company called Egypt Telecard, andthe other one is Marhaba service owned and managed by TE. In addition to the 2 millioncards capacity of the two TE (IN) Intelligent Network platforms in operation today, TE hasambitious plans to upgrade their system capacity (2million card “IN” platform contracted)expected to be in operation by June 2004.Egypt Telecard also made use of the long time span of the Scratch Card License bidding toupgrade their system capacity which resulted in enhancing their quality of service, andexpanding their distribution channels.The marketing intelligence information we managed to gather was as follows:Egypt Telecard and Marhaba achieved sales of 22 million cards during the period from Jan.2002 till Dec. 2002, which is equal to approx. 250 millions LE. Taking that the minimum facevalue of “Marhaba” is LE. 15 and it has gone out of stock several times.Two more renewable licenses were introduced to the market, one of them “Moftah el Zero”launch his product first of June 2004 and manage to sell approx. 5 millions LE for all the facevalues of the card (5, 10, 25, 50,100). The owner of the second license is still facingdifficulties launching his product. Public Payphones (PP)Menatel is maintaining the leader position by far; we are in a dominant company position, farahead of our direct competitors Nile & TE. According to ministry of communication andinformation technology (MCIT) report of February 2004 the situation is as follow: 2Market coverage in Feb. 2004 Company Number of Payphones Menatel 29878 Nile & Ringo 14000 TE 4532The above table shows that we are still improving our position, while Nile is blocked. As forTE, their plan is to upgrade and replace their old payphones, with new ones using SmartCards, and to go public; as we know from our sources they started to request digging permitsin Cairo. We anticipate an aggressive competition from TE. Also the two competitors inpayphone area are using the OFF-LINE technology to manage their system while Menatel isusing the ON-LINE & OFF- LINE technology.2 Ministry of Communication & Information Technology (MCIT) report Feb. 2004.EMBA CairoRennes International School of Business 7
  11. 11. GSM Operators (GSMO)The two big elephants enter the telecommunication market before the two private prepaidpublic payphone companies; they have been growing slowly but in a continuous way and arestill growing. They are the future threat to the payphone business. 3Mobile phone subscribers in Dec.2003 Subscribers Mobinil Vodafone Prepaid 2.325 million 2.160 million Post-Paid 667,000 479,000 4-3 Market share (volume bases)Based on the retail auditing reports for all the prepaid cards the bellow table shows that theprepaid payphone cards share is shrinking,Prepaid cards Market shares on Brand Name Brand Share Volume basesMarch-April 2001 Prepaid Calling Scratch Card (PCC) 20.4 % Public Payphones (PP) 72.9 % GSM Operators (prepaid cards) 6.8 %March-April 2002 Prepaid Calling Scratch Card (PCC) 28 .8 % Public Payphones (PP) 56.3 % GSM Operators (prepaid cards) 13.7 %March-April 2004 Prepaid Calling Scratch Card (PCC) 33.8 % Public Payphones (PP) 55.2 % GSM Operators (prepaid cards) 11.8 % 4-4 SWOT ANALYSIS 4.4.1 External Environment Analysis Opportunities  The growth of Telecom Market  Direct competitor might be out of market (financial difficulties)3 Mobinil marketing intelligence information Dec.2003EMBA CairoRennes International School of Business 8
  12. 12.  End of Telecom Egypt (the sole provider of fixed lines) monopoly end of 2005  Increased of tariff of Telecom Egypt  New monitory policy (New Government)  New Telecom law empowering of Telecommunication Regulatory Authority (TRA)  New market (neighbour developed country) Threats  Scratch cards market growth  Egyptian economy slow down  Floating of Egyptian pound  Telecom Egypt power still high  Direct competitor might go bankrupt  Increased number of substitutes  Middle East political instability 4.4.2 Internal Environment Analysis Strengths  Strong management with FCR know-how  Established distribution network  Market leader and strong brand name  Strong financial position  High quality of service and coverage  Slim organization  Deep knowledge of scratch cards business economics  Highly trained and skilled employees Weaknesses  Stagnant organization, no clear career path  Customer service function not utilized  Marketing less structured and unclear strategy  FT is affected by exchange rate  Spare parts shortage  Distributors’ coordination  Maintenance vehicles operating cost  Premises needs expansionEMBA CairoRennes International School of Business 9
  13. 13. 4.4.3 SWOT matrix of Menatel STRENGTHS WEAKNESSES Strong management with FT Stagnant Organization, know-how. Unclear Career path. Market Leader & Strong Marketing less structured & Brand Name. Unclear Strategy. Strong financial position. OPPORTUNITIES 1- New Strategic Plan aiming at Telecom Market Growth exploring the expected 1-Revisit Org. Chart opportunities in Telecom market. New Telecom Law & 2-Benefit from our cash position 2-Revisit marketing Empowering TRA to finance our development plans functions. 3-Second Operator as strategic 3-Revisit Customer Service & Target after 2005 Card Distribution. THREATS New strategy to be adapted under Economy slow down. consideration: 1-Side effects of economic 1-Slow growth with close Floating of Egyptian Pound. recession & decreased buying monitoring to the market. power. 2-Staff frustration and Increasing number of 2-Advanced hedging & financing decrease of productivity and substitutes techniques. efficiency 3-Consumers attracted by 3-Advanced marketing & Sales lower priced substitutes, we Techniques. might face price wars. 5- MENATEL SUPPLY & VALUE CHAIN Supply chainMenatel suppliers are categorized by three types, the first one is the only fixed line supplier(Telecom Egypt), the second is all the domestic suppliers, and the third is all the foreignsuppliers (mainly Menatel cards, payphones, and spare parts) Menatel manages this processthrough two systems, the first system process can be described as follows; it started by thepayphone distribution department to request directly the lines from TE through a committeeby a paper request, then to forward the retain lines to the PMS division for creating new linesIDs and then to be send to maintenance division to be received on the out-door distributionboxes, all these steps are by sharing Menatel data base (Menaprod). The second and thethird suppliers are providing Menatel by all the equipments needed to have a payphone In-Operation. Menatel system is based on sending a purchase order (PO) to the supplier afterthe approval of the purchase requisition (PR) of the concerned division. The logistic (WH) is toreceive the orders and dispatch them each to its concerned division, mainly to the distributionEMBA CairoRennes International School of Business 10
  14. 14. cards division (Menatel cards), and production division (payphones, booths & pedestals, and spar parts). This is done by a normal logistic paper work cycle, and all the data transaction is saved on Menatel data base (Menaprod). The figure below shows a block diagram of the chain. The diagram below shows Menatel supply chain. Suppliers Payphone PMS C Maintenance T/E distribution U S Domestic T W/H, Logistics Production O Foreign M E R Menatel Distributors S Menatel Supply Chain Management Value chain The diagram below shows Menatel value chain Logistics, manual and automated systems Administration & management, Reporting and meeting system Support HR, computerized payroll system, manual procurement system MenatelActivities Value chain Accounting, computerized accounting system IT, computerized-WAN, LANs system Commercial Operation Cards sales Service ProductionPrimary surveyActivities Payphone Payphones Manual management Manual maintenance Automated system system (PMS) system system system The system start with the commercial agents surveys to allocate best locations according to Menatel code, the commercial agents update Menaprod (ORACLE designed data base) with EMBA Cairo Rennes International School of Business 11
  15. 15. these locations technical data (adders, type) in the commercial field, request fixed lines forthese locations by manual system (paper request) using Fax technology, and update linerequest table (date, invoice number). As the lines retained by TE (the sole provider of fixedlines) the commercial agents update Menaprod (line retain date). The PMS (payphonemanagement system) creates these lines and characterizes them by IDs in the PMS Field ofMenaprod, and at the same time, public relation team requests digging permits from districtsauthorities using manual system (papers). At this stage also the maintenance team startsreceiving lines. When digging permits are obtained the PR team updates Menaprod withdigging date, this will generate civil work needed report, and the production team generatesthis report by using production team field on Menaprod. In the same time logistics receiveorders to deliverer equipments to Menatel subcontractors (manual system). The productionteam follows all installation steps till all equipments are installed and updated all theconcerned dates waiting for maintenance team receiving line date to finally installing thepayphones. As the payphone is In Operation (PMS team provides daily reports of the newpayphones IO), the maintenance team updates Menaprod with IO date, and thus close theMenaprod cycle.Menatel recognizes that the operation cost is an important element to have a competitiveadvantage. Menatel strategy is to get the job done, to achieve Menatel target as fast as wecan and in the same time controlling the operation cost, and to accelerating the productionoutputs. Menatel succeeded to achieve more than what was expected, and by starting theoperation four month behind the direct competitor we manage to put the first 20,000payphones in operation all over Egypt two years ahead our schedule, this puts Menatel in astrong financial and commercial position. Menatel achieved this by the followings:  Menatel organizationMenatel operates five different branches to ensure closer look to the consumers natures andbehaviors, all linked with the HQ by domestic WAN using frame relay technology in a starconnection, this ensures direct and on-line communication among all levels of theorganization.In addition to this desk communication, all menatel staff is provided with mobilelines using GSM technology to ensure effective communication for out-door sites. Menatelalso has a reporting system (weekly & monthly) to share internal information betweendifferent levels, and meetings system to share information between different departments.This is to ensure effective communication at all directions of the organization. This kind oforganization saves Menatel time and money, and provides Menatel with the flexibility to anytechnological change requirements.  MenaprodMenatel designs, operates and installs a data base (Menaprod) shared to all Menateloperation activities commercial, production, public relation, PMS, maintenance, branches, andEMBA CairoRennes International School of Business 12
  16. 16. financial. The Menaprod (designed and built by ORACLE) enhances production process andaccelerates having payphones in-operation. One of Menatel manager is dedicated tomaintaining the effectiveness and efficiency of Menaprod, also operating a daily updating toMenaprod and a weekly backup to the data for hedging risks.  PMSPayphone management system, for the fact that Menatel strategy is to ensure superiorservice, Menatel, from the start, deciding to operate and manage its network by using AscomV7 technology, enabled Menatel to monitor payphones, on-line, effectively, and efficiently, thisincreases the total in-operation time for payphones, and provides Menatel with wide variety ofoptions and promotions to the customers, that means a marketing advantage, i.e. morecustomers, and more revenue.  Service QualityMaintenance operation is one of Menatel core competences, the maintenance team mainactivities are; receiving lines, solving payphones incidents, following booth maintenance andcleaning, managing Menatel spare parts. This part of Menatel business process will beexplored later in part 7. 6- MENATEL OUTLINE BUDGETSMenatel allocates IT expenses as General and Administrative expenses and divides them intotwo main parts: Technical IT expensesThe budget assigned to this part is 11.5 % of Menatel net sales, this part includes spar partsfor all the payphone management system elements and components, the annualmaintenance contract of the system, and any technical consultant, adding or upgrading someof the system main features. This cost is treated as direct cost. General IT expensesThe budget assigned to this part is 3.5 % of Menatel net sales, this part includes MenatelWAN and LANs components, PCs S/W, ORACLE applications (data base), and GSMmobiles. This cost is treated as indirect cost.Menatel policy is to maintain the assigned percentage for each type of IT expenses and torelate the value related to the growth or decline of the net sales as part of Menatel costcontrol strategy.The table below shows a skeletal profit and loss account of Menatel.EMBA CairoRennes International School of Business 13
  17. 17. Revenue L.E. Net sales XXX,XXX,XXX Cost of sales XXX,XXX,XXX Gross Profit (Loss) XXX,XXX,XXX Selling expenses XXX,XXX,XXX General& Administrative expenses XXX,XXX,XXX Financing expenses XXX,XXX,XXX Depreciation and amortization XXX,XXX,XXX Provisions for contingencies XXX,XXX,XXX Interest income XXX,XXX,XXX Foreign exchange losses XXX,XXX,XXX Other income (expenses) XXX,XXX,XXX Net Profit (loss) for the period XXX,XXX,XXX 7- INFORMATION SYSTEM STRATEGY 4Definition: “Information system, technically is a interrelated components working together tocollect, process, store, and disseminate information to support decision making, coordination,control, analysis, and visualization in an organization”. 7-1 Analysis of business and technical environment Customer Out-door Services Voice communication Business process Requesting lines, requesting digging permits, creating lines, receiving lines, installing equipments, distributing cards, maintaining payphones, cleaning and maintaining booths Participants Technology Commercial staff, Information Staff PCs, WAN, PMS staff, production Locations addresses, LANs, Mobiles, staff, sub-contractors, payphones IDs, booth types, telephone lines, Distributors papers4 MIS by, the LaudonsEMBA CairoRennes International School of Business 14
  18. 18. As it shows in menatel system frame work of Steven Alter, 7.1.1 Menatel customerMental is in the business of customer business, Menatel provides services directly to itscustomers. The out-door consumer who is seeking a wired voice communication is Menatelcustomer and menatel objective is to exceed his satisfaction by providing this service withsuperior quality. 7.1.2 Menatel productWired voice communication is Menatel product (service), and this includes all types, everywhere. 7.1.3 Menatel business processMenatel process starts with the commercial activities by surveying locations and requestinglines based on Menatel codes and standards. The technical team (PMS, production, publicrelation, and maintenance) starts doing deals with these lines retained for correspondinglocations to have at the end one payphone in-operation more ready to produce voicecommunication service. Interacting with these two main processes the commercial teamdistributes through menatel distributors Menatel prepaid cards, also along with them thenormal financial, administrative, and logistic activities that are to support, enhance, andaccelerate having payphones in-operation. 7.1.4 Menatel participantsMenatel participants can be named as follows:  Menatel customers  Menatel staff, (commercial, technical, financial, logistics, and administrative staff)  Menatel suppliers, (Telecom Egypt, domestic, and foreign suppliers)  Menatel subcontractors, (production, booth maintenance, PMS installation, and booth cleaning contractors)  Menatel distributors  Legal and administrative authorities, (TRA, districts, and governorates)  Menatel owners, (NBE, TE, ADCOM, ADI, CIIC, and Egytel)EMBA CairoRennes International School of Business 15
  19. 19. 7.1.5 Menatel informationMenatel information is categorized as follows;  Commercial information, locations, lines numbers, distributors’ names, market share, market size, market growth, competitors, brand names, and etc.  Technical information, lines technical data, exchange type, equipments type, contractors’ names, and etc.  Financial and administrative information, menatel financial statements, bank accounts, employee’s payroll, insurances, lines payments, and etc.  Business developments information, business analysis, business environments, business challenges, business growth, and etc.  Logistic information, suppliers, equipments balance, vehicles and premises condition, cards balance, and etc. 7.1.6 Menatel technologyMenatel chooses to operate its network using the on-line Ascom V7 payphone managementsystem with smart card technology, for its enterprise communication and information flowmenatel uses the frame relay technology to link all its premises through WAN, and Microsoftnetwork neighbourhood for LANs, menatel use the GSM technology to link menatel fieldemployees, also menatel still use papers and documents to exchange information withmenatel external partners, suppliers, contractors, distributors, and legal and administrativeauthorities. 7-2 Detailed analysis of maintenance processI decided to analyse Menatel maintenance process as I strongly believe that Menatel canimprove its information system for this process. Menatel work system (annex 1) showsMenatel context diagram, in which Menatel information systems varies from Ascom V7payphone management system to manual paper systems. By using DFD level 1, 2, forMenatel it shows the working system of the maintenance process, which I will analysehereunder. 7.2.1 Maintenance process objectives  Solving payphone incidents and reaching a high quality of service  Receiving lines in DBs  Supervising the booth maintenance and cleaning  Managing the needs of spare parts for Menatel equipments  Updating all previous activities through data entryEMBA CairoRennes International School of Business 16
  20. 20. 7.2.2 Maintenance process organization Maintenance manager PP Booth Booth WH Workshop PP supervisor maintenance cleaning supervisor supervisor supervisor Subcontractors Branches Technicians WHTechnicians Subcontractors Technicians 7.2.3 Information flow diagram As shown in annex 4 the maintenance process system takes into account only the activity of maintenance (solving incidents, cleaning) but not the receiving of lines, and spare parts following, this diagram shows;  INPUT; items which give daily information to the maintenance team to compete their work. Information will be communicated to each technician through daily reports (annexes, 5, 6, 7). The reports which take into account input information are extracted either from PMS, or Menaprod, annex 8 shows the relationship window in MS access that generate these reports.  ACTIONS; that have to be taken to reach a good quality of service (solve incidents, solve no revenue, follow cleaning and booth maintenance, etc...)  REPORTS corresponding to each action. They are the worksheets given to each one to quote his actions.  FREQENCY; indicates how often reports are issued  PROCEDURE; that have to follow supervisors and technicians so as to work in the same direction  OUTPUT; since some procedures are involving people who are working outside the maintenance team (subcontractors, commercial staff, PMS staff, Telecom Egypt, etc…) EMBA Cairo Rennes International School of Business 17
  21. 21. To have clearer picture to the maintenance information system inputs, process, output, InputsThe input is the source of the maintenance team work, and there are different sources:  PMSEach payphone that has an incident will communicate instantaneously the information about itto the PMS located in the exchange. Daily, modems linked to PMS 300 in Cairo make aphone call to each PMS in each exchange to download complete information about payphonestatus. The PMS can hence give very accurate information.  MenaprodMenaprod is the database, which can give much information about payphone installed, but isnot online, we need to extract what we need of data.  Other SourcesInformation about any damaged or any physical incident concerning one of Menatelpayphones or booths can also be provided by;  The cleaning company  The customer service  The sales team  Person X OutputThe maintenance information system has also an output;  SubcontractorsIn order to solve problems due to maintenance of the booth itself, or due to cleaning aspectsof the booth, maintenance team works with subcontractors either responsible for maintenanceof booth, either for cleaning.  Other teams from MenatelMost of the time, teams from the technical department have to work together to achieve theirwork, maintenance will deal with commercial, production, and PMS teams to solve differentproblems linked to cable, to line’s default, to customer, to PMS in exchange. 7.2.4 Maintenance process analysis findingsBy the above analysis of maintenance information system process we can identify two mainsystems, one which is auto using the Ascom V7 and Menaprod database through reports thatEMBA CairoRennes International School of Business 18
  22. 22. are generated using MS access, mainly solving payphone incidents activity, boothmaintenance, booth cleaning. The other one is a manual system using paper report and faxmachines, in which it can be developed, such as spare parts follow process. 7-3 Information requirementsBy the above findings it’s clear that the spare parts process could be developed, and theinformation flow can be automated using Menatel available resources to design a data basethat Menatel (spar parts process) can benefit from. The recommendation part will show therecommended design output as shown in annex 9, 10, and 11 and the diagram here belowshows the entity relation proposed. Booth Payphone incidents incidents Entity Entity Parts order Entity Branch Branch warehouse warehouse Entity Entity Menatel warehouse EntityThe data flows as follows,  Daily incident for payphones and PMS status is input source for entity payphone incident (payphone ID, incident date, spare part name, spar part quantity)  Weekly booth report for physical condition is input source for entity booth incident (location code, incident date, spar part name, spar part quantity)  An order for spar part by the order entity (order date, spar part name, spar part quantity) to the branch warehouse, if the branch warehouse is out of stoke the order is forward to Menatel warehouse.EMBA CairoRennes International School of Business 19
  23. 23. 7-4 Applications portfolioThe table below shows summary characteristics of Menatel information processing systems; Information Information Type of system Examples processing Users inputs outputs Future Internal reports, forecasting progress monthly Strategy,Executive support planning, Senior managers reports, external analysis objectives, systems (ESS) operation, environments decisions budgets, incidents sales trends. Management Production PMS data, Monthly reports, information scheduling, Menaprod decision Managers, systems (MIS), sales reports, daily, analysis analysis, engineers, and and Decision management, weekly reports, graphics, professional staffsupport systems analysis meetings summary (DSS) Maintenance, Transactions,Knowledge Work QS control, events, Communication, System (KWS), cash payphones sorting, Operational office system, Daily reports, management, incidents, scheduling, persons, and Transaction documents, lists payroll, documents, controlling, supervisors Processing training customer updating System (TPS) developments complains 7-5 Financial justificationIt is clear that menatel strategy is to accelerate production outputs and control the cost, that isto say time costs menatel money. The spare part process now lacks of time effective and theinformation system for this process cost menatel time and money, which is actually one ofmenatel weakness. One payphone out of order due to spare part shortage means menatel islosing 25 LE per day, plus the negative effect over Menatel image which means losingcustomers, losing market share, losing money. The proposed data base that will help menatelbenefit good management of spare parts, avoiding any spare parts shortage risk, optimizingthe available spare parts, and importing the accurate quantities and items. This meansreducing cost, good use and allocation of menatel cash, and avoiding hard currencyavailability problems. This new system will cost menatel nothing if it was built using Menatelexisting resources (engineers, data base, WAN, LANs, PCs) almost all the infrastructure isavailable, Menatel only needs to buy the design and that can be done with internal resources.The only costing problem that can face this new system is changing the organizationbehaviours, and even that can be managed if Menatel follow effective changing process.EMBA CairoRennes International School of Business 20
  24. 24. 8- INFORMATION MANAGEMENT STRATEGY 8-1 Procurement specificationMenatel code for procurement specification is generated from Menatel strategy and it’s basedon the following;  Superior quality services that is why Menatel hardware components must be provided from reliable brands name (IBM, Compaq, Dell), also software, (Microsoft, Oracle)  Exceptional customer satisfaction that is why Menatel operates on-line Ascom V7 payphone management system to have superior after sales service.  Effective communication and enhancing Menatel value chain that is why Menatel build Menaprod data base.By the above and also to ensure cost control menatel code of procurements is buying longterm quality equipments that meet Menatel long term plan with acceptable price that meetsmenatel objective of superior financial results (ROI). 8-2 Security measuresMenatel secures its information system in two directions;  One is the data and information available by Menaprod or PMS updated daily and a backup system is generated daily, also menatel has an archive system to all its documents, reports, meetings, etc…  The other direction is maintaining the equipments running effectively by annual maintenance contracts and internal IT specialist supporting other staff to run the system. Also an on-line connection established with Ascom V7 provider in case of emergency. 9- INFORMATION TECHNOLOGY STRATEGY 9-1 System architecture & Reasons for choiceMenatel information system architecture has five major separate islands of applications;  The after sales service application, the payphone management system  The value chain operation application, the data base Menaprod  The accounting application built by ORACLE  The logistic application built by ORACLE  All other functions have manual information systemEMBA CairoRennes International School of Business 21
  25. 25. The above applications serve deferent levels of menatel organization by its outputs through areporting system; all of them are monitoring the elementary activities and transactions ofMenatel to serve the operational level, support engineers and supervisors at knowledge level,also these applications monitor, control, and in part of them analyze information to servemiddle managers. The reason behind this kind of system architecture is Menatel flatorganisation (from levelling point of view) and also Menatel organisational behaviour(centralised organisation) the data is always confidential. The diagram below may illustrateMenatel information system architecture. strategic senior level Management Menaprod Ascom v7 Purchase system accounting system Middle managers Operational supervisorsaccounting HR & production PMS Cards sales Logistics, Functional administarative Purchase levelThis diagram illustrates Menatel information system architecture as it serves different levels ofthe organization for the main menatel process.EMBA CairoRennes International School of Business 22
  26. 26. 10- CONCLUSION 10-1 Menatel business solutions Controlling cost Superior service Increasing revenue 10-2 Menatel business challenges Operation cost Multiple locations (wide area) Organization behaviour 10-3 Menatel business organisation Business process Menaprod (oracle data base) Employees Branches 10-4 Menatel information systems Coordinate value chain Accelerate production out-put Access employees’ information Produce reports 10-5 Menatel technology Ascom V7 Menaprod data base Smart cards Frame relay PCs GSM mobile Papers 10-6 Menatel management Monitor production level and cost Establish reporting requirementsEMBA CairoRennes International School of Business 23
  27. 27. 11- RECOMMENDATIONMenatel information system should go through some developments especially that Menatelhas all the necessary resources for that (software, infrastructure, engineers, reliabledatabase), the only matter is that Menatel needs to do some efforts to support thisdevelopment in Menatel organization behavior and I strongly think that with an efficientmanagement change process Menatel can do better and succeed in developing itsinformation system, and as described in section 7-3 annex 9, 10, 11 show a simple data basedesigned to develop the spare parts process included in the maintenance process as anexample of ways of development. This data base information will serve the operational levelfor daily follow up, the management level to analyze the consumption of spare parts andhedge out of stock risk condition, and for the senior management to forecast a future sparepart plan. 12- REFERENCES  Menatel internal data, Annual report 1999-2003  Laudon & Laudon, Management Information Systems, Eighth Edition.2004  Philip Kotler, Marketing Management, Eleven Editions. 2003  Pre-reading materials & slides, Mark GERGORY, May 2004  Menatel retail audit reports 2001-2004 (MEMRB).EMBA CairoRennes International School of Business 24
  28. 28. 13- ANNEXES 13-1 Menatel (DFD) context diagram CUSTOMERS DISTRICTS Services Digging permits Menatel SUBCONTRA OWNERS CTORS Financial statements Installation orders SUPPLIERS DISTRIBUTORS Sales forcast Regulations Payments, accounts Purchase orders, delevery notes TRA BANKSEMBA CairoRennes International School of Business 1
  29. 29. 13-2 Menatel Level 1 DFD CUSTOMERS DISTRICTS Services Digging permits Menatel SUBCONTRAC OWNERS TORS Commercial Technical Financial statements Installation orders Menaprod SUPPLIERS DISTRIBUTORS Business Financial & Logistics Development Administration Sales forcast Regulations Payments, accounts Purchase orders, delevery notes TRA BANKSEMBA CairoRennes International School of Business 2
  30. 30. 13-3 Menatel Level 2 DFD (maintenance) CUSTOMERS Services 3 Maintenance SUBCONTRAC TORS Splving Booth Manitenance Booth Cleaning payphones incidents Installation orders PMS Menaprod SUPPLIERS Update Menaprod Lines Recieving Manageing spar parts Purchase orders, delevery notesEMBA CairoRennes International School of Business 3
  31. 31. 13-4 Maintenance operation System INPUT Hesham Nashat Maintenance Manager OUTPUT PMS, Menaprod Cleaning PMS PMS PMS LIST MENA PMS Companies Solve Incidents Solve No & Check PP less Check Numbers Check 16 Khz Follow Cleaning Assess Quality detected Low Revenue than 50% IO & Booths Aspects of Service ACTION Customer Services Cairo Payphone Low and No PP IO < 50% Check Numbers Report Cleaning for tech. Quality of REPORT Incidents Report Revenue Report Report Report Service Report Person X Daily at 8 am Daily at 8 am Monthly Occasionaly Weekly Daily FREQUENCY Continuous info about new problems Maintenance Supervisor that may not appear in report extracted from PMS Technician - Arrival and Departure Following Call Supervisor when arrive at Work Check daily the Check reports cleaning aspect Maintenance Call Supervisor when Problem solved or not (IO or OO) Contractor booth Fill complete Maint for Cont. Cleaning Supervisor remarks weekly Cleaning Finish checking report 1 Fax Contractor 1- Problem not solved due to TE Line Pb. Rep. T/E DAILY PROBLEMS 2- Problem not solved due to customer / owner Mail Com Team Technicians FACED BY TECHNICIANS 2- Problem not solved due to cables feedback Cable Pb. Rep. Production 2- Problem not solved due to PMS PMS Pb. Rep. PMS TeamEMBA CairoRennes International School of Business 4
  32. 32. 13-5 Low revenue reportEMBA CairoRennes International School of Business 5
  33. 33. 13-6 Low QS reportEMBA CairoRennes International School of Business 6
  34. 34. 13-7 NO revenue reportEMBA CairoRennes International School of Business 7
  35. 35. 13-8 Relationship window for total incidents reportEMBA CairoRennes International School of Business 8
  36. 36. 13-9 Relationship window for proposed spar part data base inputs formEMBA CairoRennes International School of Business 9
  37. 37. 13-10 Relationship window queryEMBA CairoRennes International School of Business 10
  38. 38. 13-11 Relation ship window resultsEMBA CairoRennes International School of Business 11

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