DONG TAM GROUP APPLYING INFORMATION TECHNOLOGY

IN BUSINESS OPERATION

GROUP 2

TABLE CONTENT

Part 1

• SWOT analysis• Oracle Software – ERP• PORTER’s Competitive Forces Model

Part 2• Competitive Forces Model for IT Infrastructure• Database Management Systems

Part 3• Balanced Scorecard Framework (BSC)• Group Decision Support Systems (GDSS)

Part 4• The recommend for new products• E-commerce Plan for Dong Tam Group

PART I. DONG TAM GROUP ANALYSIS

SWOT analysis

• "The marketplace is a

battlefield"

• Businesses face many

challenges in the market:

• Competitors

• Market price

• Potential development of high market

• Economic infrastructure is constantly

improving

• Expand market

• The market research is limited

• Paint is a new item on the

market

• Focus on Revenue

• Advertising program

• Prestige of continuously improving company

in the marketplace

• Human

• Equipment and machinery

• Distribution system

Oracle Software – ERP Enterprise Systems is known as enterprise resource planning (ERP)

systems. Dong Tam Group has completed deploy of administration

software Oracle E-Business Suite

Deploying main

subsystems of Oracle E-

Business Suite

Deploying Oracle Human

Resources – Payroll

Oracle Software – ERP

Oracle Process Manufacturing (OPM)

It helps to increase productivity while minimizing labor

and operational costs.

It can maximize production flexibility to meet unique

customer requirements.

Oracle Order Management (OM)

It is one of the new products of Oracle Supply Chain.

It helps enterprise more actively in sales on Internet.

Oracle Inventory (INV)

Decrease working capital and operational cost by

increasing inventory turnover.

Three Orders: Requisition Move Orders, Wave Move

Orders, Pick Wave Move Orders.

Oracle Software – ERP

Oracle Software – ERP

Oracle Purchasing orders (PO) Provides salespersons a lot of functions

Handle with purchasing demand, orders, quoting price promptly and effectively

Develop relationship with suppliers and customers easily

Improve the relationship with strategic supplier

Oracle Human Resources - Payroll Fundamental business requirement demanding compliant and accurate financial

controls in a timely manner

Help to control the workforce cost

Ensure the entire workforce is being paid on time

PORTER’s Competitive Forces Model

Customers

Traditional Competitors

Suppliers

New Market Entrants

Substitute products

DONG TAM GROUP

• The most important factor

• Build customer trust and develop customer confidence.

• Collect customers’ feedback

CUSTOMERS

• High quality

• Normal quality: Viglacera, Hoang Gia, Y My

• Foreign competitors

Traditional Competitors

PORTER’s Competitive Forces Model

PORTER’s Competitive Forces Model

• Dong Tam Group has planning to become international enterprise, export

high-quality products into the difficult market, such as: United State,

Canada, Europe

New market entrants

• The raw material to manufacture enameled tile includes 2 types:

• The first group is clay, quartz, limestone.

• The second group is frit, chemical substances.

Suppliers

• Floorboard

• Rug

• => Lose the market segment

Substitute products

PART II. INFORMATION TECHNOLOGY

INFRASTRUCTURE

Competitive Forces Model for IT Infrastructure

Market Demand for DTG’s Customer

Services, Supplier Services and

Enterprise Services 

Competitive Firms’ IT Infrastructure Investments

 Competitor

Firms’ IT Services

 Information Technology

DTG’s IT Strategy

Infrastructure and Cost

 DTG’s Business

Strategy

DTG’S IT SERVICES AND

INFRASTRUCTURE

Competitive Forces Model for IT Infrastructure

Market Demand for DTG’s Customer Services, Supplier Services and Enterprise Services

Billion VND

Cost of goods sold and Revenue Chart

Dong Tam Group’s Business Strategy

Competitive Forces Model for IT Infrastructure

Increase revenue in building materials

Manage inventory effectively

Adjust price

Manage quality products

Administrate purchasing

Manage human resource

Manage budget efficiently

Competitive Forces Model for IT Infrastructure

Dong Tam Group’s IT Strategy

Stage 1: Complete the internal information system (intranet)

Stage 2: Link internal and external information transmission through two

methods:

(1). Use the internet. This is a popular trend that all companies in the world are

aiming for; it is an indispensable tool in manufacturing business.

(2). Use the electronic data interchange, this system enables electronic data

exchange through computer in the system. In this stage, there are three main

systems that the company improves: Electronic Data Interchange (EDI), Enterprise

Resources Planning (ERP).

Competitive Forces Model for IT Infrastructure

Information Technology

Table 1 – Company application status

NAME APPLICATION STATUS

Enterprise Resource Planning (ERP) Yes

Performance Management System (PMS) and Balanced

Scorecard

Yes

Electronic Data Interchange (EDI) Yes

Human Resource – Pay roll Yes

Project Management Yes

Competitive Forces Model for IT Infrastructure

Figure 5 – Competitors’ IT services

Source: Alexa, 14th June, 2014

Competitors’ IT services

Competitive Forces Model for IT Infrastructure

Competitors’ IT Infrastructure Investments

Figure 6 – Software investment/ total assets Comparison

Database Management Systems

Database management system (DBMS) is a collection of programs that

enables you to store, modify, and extract information from a database.

The most popular one is relational DBMS.

Database in the cloud helps us in secure the information of staffs or even

some important information.

Solving the problem in the flexibility way.

DBMS have less storage; all occurrences of data items need be stored

only once, thereby eliminating the storage of redundant data

DBMS helps reduce the cost of renting people.

PART III. DONG TAM GROUP ENHANCES

DECISION-MAKING

Balanced Scorecard Framework

The balanced scorecard is a strategic planning and management system

2005:Implemented Strategic

Planning

2008: Implemented KPI

2010: Implemented an

integrated Strategic Planning and Performance

Balanced Scorecard Framework

• recruit and retain

employees of highly

skills patient focused

professionals.• develop job objectives

and reasonable KPI assessment

• learning and growth constitute the essential foundation for success of any knowledge-worker in company.

The learning and growth

perspective

• relates to the internal business process

• allows the managers to know how well

• the business is running• Employees at Dong Tam

Group always think about innovation to produce unique products. Moreover, product quality is improved day by day.

The business process

perspective

• Some key performance indicators for customer perspective: total calling time per day/week/month, cost per minute of handle time, email backlog

• creates innovational product

The Customer Perspective

• Create a unique strategy and visualize it in a cause-effect map

• Align the company and its processes to the objectives identified in the strategic map

• Design meaningful key performance indicators

• Use KPIs to facilitate learning and improved decision making

The Financial Perspective

Balanced Scorecard Framework

Group decision support system

Decision Support system

The company has branches all over the country

They need system to contact and seeking to solve problems

It has modernized group meeting and reduce “wastes time”.

Group Decision Support System

Interactive computer-based system for the solution of unstructured problems

The same location or in different locations.

Provide tools and technologies geared explicitly toward group decision

making.

GDSSPeople

Group memberGroup facilitator

Hardware

Computer, networking equipmentProjectors

Display Screens

Procedures

Method used in meeting

Software

Application Database

Group decision support system

Benefits

Conflict Resolution

Complex problem

Evaluation

Prepare plans, proposals

Resolve conflictsAnalyze issues effectively

Group decision support system

Benefits

Parallel Communication

Automated Record Keeping

More Structure

Group decision support system

Figure 8 – Hardware which support for GDSS in Dong Tam Group

Group decision support system

PART IV. RECOMMENDATION

The recommend for new products

penetrating into steel market and wooden floor product

To expand into these markets, the company should:

Innovate the plan of penetration

Expand the diplomatic relations

Cooperating closely with the domestic and foreign suppliers of the new

products: steel and wooden floor.

Raising the capital to invest in new products

E-COMMERCE PLAN IN DONG TAM GROUP

1

• Function of the system• Functional module for guests: register for account, search

products and price, send order, send feedback• Functional module for members: manage invoices and orders,

accumulate the point, send email to Dong Tam Group and send feedback

• Functional module for system administrators: manage users, system catalog, customers and system tools

2• Search Engine Optimization (SEO)• Email marketing