Bis assignment – june 2016

SRI LANKA INSTITUTE OF INFORMATION TECHNOLOGY- FACULTY OF BUSINESS

Nadishan G.S.W.Y. Samaratunga Y.A.M.S. Nawarathna N.M.D. Wijesooriya W.A.D.I.

Group Assignment - 2016 June

IM100 - Business Information Systems

SLIIT – Faculty of Business

Department of Business Management

BBA Special (Hons) Degree/ BBA (Honours) in Business Management

Year: One Semester: One



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Faculty of Business

Submission of Group / Individual Assignments: Cover Sheet

Date of Assignment: 04.07.2016 Due Date: 04.08.2016

Date of Submission: 02.08.2016

1. Course: Bachelor of Business Administration

2. Year: 1 3. Semester: 1 4.Module Code: IM100

5. Module Name: Business Information System

6. Lecturer-in-charge: Chathurangika Kahandawaarachchi

7. Title of assignment: Information Systems in Business

8. Supervisor: …………………………………………………………………………………..



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The Leading Book Publishers in Sri Lanka



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Table of Contents

Abstract……………………………………………………………………………………..3

1. Introduction to Business Organization...........................................................................6

2. Automated Business Process…………………………………………………………..7

3. Information System……………………………………………………………………8

3.1. The components of the IS ………………………………………………………..9

3.1.1. Hardware …………………………………………………………9/10/11/12

3.1.2. Software .......................................................................................................13

3.1.3. Databases .....................................................................................................13

3.1.4. People………………………………………………………………………13

3.1.5. Procedures………………………………………………………………….13

3.1.6. Telecommunication networks……………………………………………...14

3.2. The Systems Concept ...........................................................................................15

4. Measures for ethics and security of the system ...........................................................16

5. Development/ acquisition process of the system …………………………………....17

6. Expected benefits from the system ………………………………………………….18

7. Management of the IS …………………………………………………………….....19

8. Problems/ Issues currently faced with the current IS activities ……………………..20

9. Suggested improvements…………………………………………………………….21

10. Conclusion………………………………………………………………………...22

11. Lessons learnt ………………………………………………………………….…23

References…………………………………………………………………………….…..24



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List of Tables

Table 1: Cash Register Comparison………………………………………………..8

Table 2: Receipt Printer Technology……………………………………………….11

List of Figures

Figure 1: Computer……………………………………………………………………..9

Figure 2: Display……………………………………………………………………….9

Figure 3: POS Keyboard……………………………………………………………….10

Figure 4: Barcode Reader……………………………………………………………....10

Figure 5: Cash Drawer………………………………………………………………….11

Figure 6: Receipt Printer………………………………………………………………..11

Figure 7: Pole Display………………………………………………………………….12

Figure 8: Credit Card Reader…………………………………………………………..12

Figure 9: Local Area Network…………………………………………………………14

Figure 10: The Systems Concept………………………………………………………15



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1. Introduction to Business Organization

Wijesooriya Grantha Kendraya is a business organization which publishes

Sinhala novels, short stories, subject related books and Sinhala translations of world’s famous

books from various languages. Wijesooriya Grantha Kendraya has published more than

thousand books and won State Literary and Swarna Pusthaka award which is conducted by

Sri Lanka Book Publishers Association several times. Wijesooriya Grantha Kendraya has

granted copyrights to translate world’s famous books in Sinhala. Wijesooriya Grantha

Kendraya has signed several agreements with world’s leading book publishers and to

translate books such as “Twilight Saga”, “Little House” and “Girl with a Pearl Earring” as

well as books of top authors like Paulo Coelho, Jean Sasson, Enid Blyton, Franklin W.

Dikson.

Wijesooriya Grantha Kendraya undertakes books from different authors and

translators to publish and distribute them under their brand name. This business organization

mostly does wholesale deals with large firms in the industry such as M.D. Gunasena,

Sarasavi, Vijitha Yapa Books and etc. and also welcome their retail customers to book shop

in Colombo 08. Wijesooriya Grantha Kendraya offers credit periods and special discounts to

their wholesale customers in order to increase sales and spread their publications. Retail sales

including the revenue of Colombo International Book Fair only contributes 15% to 20% of

their total income.



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2. Automated Business Process

POS system performs a major part in Wijesooriya Grantha Kendrayas'

transaction activities, and using this system they can do their business activities easily as well

as enables them to redeem their employees in other tasks hence this system reduces the

number of employees required in transaction procedure.

Business organization carry out several activities by using their POS system

and some of the tasks (or protocols) practicing them are mentioned below:

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1. Billing

2. Bill Cancellation

3. Bill Refund

4. Sales Audit

5. Customer History

6. Counter Management

7. Gift voucher Sales

8. Multiple Payment Modes



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3. Information System

POS system is the time and the place where the transaction originate. At that

point trader shall calculate the amount or the monitory value of the transaction as well as the

needful other actions such as printing invoices help cashier to enter the payment method.

POS system which Wijesooriya Grantha Kendraya uses has the capability to record details

about debtors and when transaction happened that will cater the database to update figures

about business debtors as well.

To execute company has to register each item that they are trading and is vital

to design a unique barcode to each item. Wijesooriya Grantha Kendraya has their in house

graphic designing facility and they allocate a barcode to their publications when the cover

page is designing. Once the stocks arrival they update stock information to the system. When

customers are purchasing books from them, they use POS system to furnish the invoice,

calculate discounts, select payment methods and carry out other needful actions. Once the

transaction has done POS system updates necessary databases.

POS system contains hardware such as display, pos keyboard, cash drawer,

barcode reader and etc. POS system eliminates old methods such as band written invoices.

Furthermore we can explain the advantages of Pos system as well as its benefits over other

methods.

Below table is furnished to highlight the advantages of POS system over cash registers



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3.1. The Components of the Information System

3.1.1. Hardware

1. Computer

Figure 1: Computer

POS system are based on standard desktop computing technology. There are however,

manufactures/integrators who specialize in producing specifically designed for the rigors of

day to day retail operation by average retail workers.

2. Display

Figure 2: Display

Counter top space is always precious. You will want to minimize the footprint of your POS

system.

Flat panel monitors are ideal for POS applications. They use far less power, generate far less

heat and do not rob counter space better left to product displays.



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3. POS Keyboard

Figure 3: POS Keyboard

One refinement you can make to your POS system is to replace the standard computer

keyboard with a POS keyboard. A POS keyboard more closely resembles a cash register key

layout. The keys are programmable and can be setup to do one-key functions such as Total,

Produce, Soft goods, Discount, etc.

4. Barcode Reader

Figure 4: Barcode Reader The most efficient and accurate way of ringing up sales at your checkout station is by using a

barcode scanner. That is why all of the major food chains use them and why more and more

small businesses are using them. Many POS software applications have barcode label

printing capability.



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5. Cash Drawer

Figure 5: Cash Drawer

A cash drawer is essential. It is the major peripheral in any POS system. This cash drawer

opens when sales person ring up a sale, just like a cash register drawer. You can get locking

cash drawers, plastic inserts to separate your bills and coins, plus a slot to stuff your credit

card slips.

6. Receipt Printer

Figure 6: Receipt Printer

As the name implies, this device prints your customer receipts. It can also print out a-z out

tape if required. There are numerous types of receipt printers, categorized- like any other

computer printer by its printing technology and its computer technology.

Technology Features Interface

Dot matrix Tear bar RS-232 Serial

Thermal Colour Parallel

Inkjet Cash drawer I/F USB

Table 2: Receipt Printer Technology



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7. Pole Display

Figure 7: Pole Display

Customers frequently like to watch you ring up their items. A pole display is a LCD or LED

sign which shows the customer each item that is rung up. It can even flash little advertising

message to those waiting with their purchases.

8. Credit Card Reader

Figure 8: Credit Card Reader

A wireless POS terminal provides on ideal way for customers to pay for goods and services

from anywhere at any time without having to keep on hand or visit a fixed POS location.

Whether it is home delivery, Field service personnel, taxis a wireless POS solution allows a

business to accept credit card and debit card payment easily and securely.



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3.1.2. Software

Operation System

If you have a computer at home, it is most likely classified as a windows machine or a Mac.

There are other types, of course, but these comprise the majority of computers in the home

market. Microsoft windows is the leading operating system for home computers. Wijesooriya

Grantha Kendraya also uses windows XP home edition for their POS system.

POS

The POS application software adds the retail functionality to the POS system. It provides the

user interface and all the features that you will use during the operation of your business.

Later in this guide will enumerate those features and tell you which ones we think are

important.

3.1.3. Databases

Wijesooriya Grantha Kendraya use databases to keep below information.

To keep information about their loyalty customers.

To keep stock details.

To record daily transactions (Selling, Purchasing)

3.1.4. People

Wijesooriya Grantha Kendraya has 2 salesperson to handle POS system and e-soft software

developers develop this POS system.

3.1.5. Procedures

There are few procedures in Wijesooriya Grantha Kendraya.

Credit card procedures

Accounting procedures

Selling procedure

Storing procedure



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3.1.6. Telecommunication Networks

Figure 9: Local Area Network diagram

They use a local area network to connect their printer and scanner with POS system. They

use LAN switches, routers, network cables to build this network.



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3.2. The Systems Concept

Database update

1. Customer orders

2. Inventory 3. Customers

Figure 10: The systems concept

Inputs

Input product barcode/

selling orders

Input discount voucher

Keyboard input quantities

Keyboard input scales

product select

Output

Output customer receipt

Output change quantity

Output to database stock

adjustment

Output to database

payment details



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4. Measures for ethics and security of the system

Security

To ensure the security of the system there is a user logging protect. User

logging system enables company to recognize the cashier who issued the bill. In Wijesooriya

Grantha Kendraya operations there are quite a few people access in the system hence this is

very useful and further system has the capability to change the password to strive the

integrity as well.

Wijesooriya Grantha Kendraya management can monitor the functions of the

users as well as the time period each user active in the system.

System has a function to lock the cash drawer, to unlock the cash drawer there

should be either transaction or special procedure to execute by the user. As we discussed in

the 2nd paragraph company can track the user who did the transaction or opened the cash

drawer.

Ethics

System has a database of customer’s details as well as system maintains the

orders that customers purchased (especially in whole sale) but these information are secured

and unauthorized users cannot retrieve information.

Wijesooriya Grantha Kendraya offers discounts to their whole sale and retail

customers throughout the entire year. Specially in September and October Company offers

highest percentage of discounts and the total and discount amount as per percentage is clearly

shown in the invoice in order to avoid deviation from the advertised discount the actual

discount offered.



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5. Development/ acquisition process of the system

Wijesooriya Grantha Kendraya has acquired their POS system from e Soft

Computer Systems (Pvt) Ltd. The system enables the company to automate the both retail

and whole sale transactions. This system helps company to offer speedy, reliable, convenient

and attractive service to their customers. Wijesooriya Grantha Kendraya has various methods

of payments such as cash, credit card, gift vouchers & etc. This system allows the user to

accept any kind of payment.

To develop a system in house business organization has to use significant

amount of resources and comparing to the scope of the business as well as the requirement of

them out sourcing the development of the system is more desirable. To develop a system in

house business requires employees those who have knowledge and expertise to carry out

technical tasks. At the same time business needs more equipment and further consolidation to

prevailing infrastructure. Compared to the cost evolve in the in house development is very

high.

Wijesooriya Grantha Kendraya has general business activities hence there's

no requirement to have a tailor made system. Company has decided to hire the standard

system which e Soft Computer Systems (Pvt) Ltd offers.



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6. Expected benefits from the system

Few years ago business organization really wanted an IS to meet their

requirements such as give expedite, orderly and quality service to their customers. System

enables Business organization to maintain database of their publications, stocks, debtors and

etc. Wijesooriya Grantha Kendraya offers several methods of payments for their customers

such as cash, cheque, credit cards, debit cards, online payments and gift vouchers. This

system helps Business organization to maintain accuracy of the transactions and convenience

of recording process. (Ex:- Information about debtors) Another benefit of the system is

recording their transactions and maintaining copies of bills issues which allows Business

organization to recall a bill if they need.

Maintaining data about stocks and books prices helps Business organization

to satisfy their customer’s quarries in prompt manner. Wijesooriya Grantha Kendraya

participates Colombo International Book Fair which is organize by Sri Lanka Book

Publishers Association annually and they have experienced convenience of this system when

their handling huge number of customers in a lesser time. Business organization says having

an information system helpful to reduce human errors as well as number of staff required and

also to minimize frauds and increase their efficiency. This system helps business organization

throughout their entire process which begins from stock arrival and ends from auditing.

Wijesooriya Grantha Kendraya deals with customer those who have different requirements of

invoices (Ex:-Government institutions required detailed invoices) System has option to select

either normal invoice or larger one more details. Duplicate copy of the bill which prints

simultaneously with the original helps staff to check and tally invoice and goods sold to avoid

deviations. If there is any doubt about a bill management can ask excuses from the cashier

involved and user login password system helps to identify the responsible personnel for a

certain bill.



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7. Management of the IS

Wijesooriya Grantha Kendraya has out sourced the pos system. Once that was

implemented company maintains and enter needful data to the system. Entering data such as

barcode, item (book) s' name, price & etc. done by the Wijesooriya Grantha Kendraya. To

gain the maximum use of the pos system it's necessary to maintain it in a proper manner. E

soft as the developers provide the technical assistance to the operator while operator is

executing slight managerial functions of the system in order to maintain the system in higher

standards.

They upgrade their system and POS software 1time for 5 years



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8. Problems/ Issues currently faced with the current IS activities

Business organization has been using this system for more than 5 years and

they have experienced some issues of information system. Company needs people those who

have special training on their system operate the system as well as they have to keep standby

crew in order to use the system continuously when there is an absence of trained employees.

When the staff wants to change the person who is operating the system it takes some time

because they have to execute certain procedures to hand over the system from one employee

to another employee. Once in a while there are some clients have special requirements in the

invoice. In that case business organization has to issue hand bill in order to satisfy their

requirements because the structure of the invoice is fixed and cannot change by the operator.

To run this system the operator needs various hardware such as computer, barcode reader,

printer and etc. When there is a malfunction of any equipment that may course the entire

system to break down. In order to achieve that kind of situation company maintains standby

set of each equipment and they have to spend money on that equipment also.

Wijesooriya Grantha Kendraya has in house graphic designing section as

well as they outsource the task of cover page designing and barcodes are design and insert at

that point. When there is an issue occurs at the initial stage and that may remain in the system

for a long time and some of them are detectable and some are very hard to identify. Even

when they found some error they have to follow certain procedures which are causing to

increase staff’s work load as well as business organization’s expenditure (Assigning same

barcode for different books.)

The business organization has experienced various issues as we discussed in

above paragraph when they are using the system. The operator has to monitor the system

from the beginning to the end. To minimize errors and use the system at highest efficient way

business organization has to train their employees continuously and also the staff needs better

multi crew coordination among them in order to minimize conflicts between users and the

system and also to give a better service to their customers.



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9. Suggested improvements

We as a group of students following business management degree at SLIIT

have done an assignment regarding the POS system used by Wijesooriya Grantha Kendraya

and found some defects of the existing system and the procedures executed by the user. In

order to obtain the maximum benefits of an IS it's compulsory to have at least few employees

to play key roles which required some sort of ICT knowledge. At the moment company

doesn't have employees those who are capable to handle errors (disturbances) generated in

the system. We would like to recommend Wijesooriya Grantha Kendraya to hire employees

those who have ICT knowledge. We've seen another issue in the system which is the failures

occurring while carrying out transaction, in order to get rid of that we recommend company

to install a new POS application software.



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10. Conclusion

Wijesooriya Grantha Kendraya is one of the Sri Lanka's leading book

publishing institute and throughout this assignment we studied POS system which are used

by them. We as a group of students following business management degree understood the

information system which is inside in the business organization. We studied components of

the information system, ethics and security of the information system, management of the

information system and many more about internal information of the system. In this study we

have realized that Wijesooriya Grantha Kendraya obtains more benefits using the POS

system. Accessing the technological environment and obtaining the systems like POS is

really beneficial for any kind of business organization. Furthermore we recognize that

technical support reduces errors, overhead and etc. At the same time company can experience

the privileges such as reliability, convenience and many more. In an ever changing business

environment it’s crucial to adjust accordingly. We have learnt that IT support is very critical

to every company in order to survive in the market as well as to satisfy their customers

preferences in speedy, attractive and error free way



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11. Lessons learnt

We've carried out a study about an information system which is used by a

book publishing institute. They're using POS system in order to smoothen their transactions.

We've approached the system in various ways and we studied about benefits obtained by the

user, management of it, development, further improvement they need, hardware and soft

wares needed and etc. We’ve learnt about the fundamentals of a POS system as well as

protocols of using it. Furthermore we've learnt that proper management is very important in

order to maintain the system in rather higher standards. In an ever changing business

environment receiving information technology is very useful to reach organizations' goals in

efficient manner. We've learnt about how this system effects on a business as well as we've

identified pros and cons of it as well.



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References

https://en.wikipedia.org/wiki/Point_of_sale

https://www.sans.org/reading-room/whitepapers/bestprac/point-sale-pos-systems-security-

35357

http://www.es-pos.com/ [Software Developers]

https://www.cashierlive.com/book-store-pos

http://library.utem.edu.my/index2.php?option=com_docman&task=doc_view&gid=3204&Ite

mid=113

www.ultimatetechnology.com

http://www.barsnstripes.com/docs/pos4beginners.pdf

http://documents.mx/documents/pos-for-beginners.html

https://en.wikipedia.org/wiki/Point_of_sale

https://www.sans.org/reading-room/whitepapers/bestprac/point-sale-pos-systems-security-35357

https://www.sans.org/reading-room/whitepapers/bestprac/point-sale-pos-systems-security-35357

http://www.es-pos.com/

https://www.cashierlive.com/book-store-pos

http://www.barsnstripes.com/docs/pos4beginners.pdf

http://documents.mx/documents/pos-for-beginners.html

Bis assignment – june 2016

Business

Transcript of Bis assignment – june 2016