MIT Individual Assignment

MGT 4300
Ms. Hannah 2/22/2012

Name: Ryan Ser Matrix No.: J09005758

General description of the information system

Title
BHPetrol eCard information system (eCard)

General description
The BHPetrol eCard is issued as an initiative to retain and reward customers loyalty. However, that is only from the marketing perspective. BHPetrol could track the size of its customers by measuring and compiling the quotas from each petrol station. However, that will take an enormous amount of time and effort. Therefore, the eCard is issued not only for the purpose stated above but also to ease the operation of tracking customer size and demand. The effectiveness and efficiency of data tracking will in turn allow management to make timely and accurate decision on the companys marketing direction and whether to acquire more stockpiles of oil to satisfy growing and shrinking demands. Also, it will allow the company to evaluate whether its current strategy is working for or against the company.

Users and user tasks

The customers would be considered the essence of this system because it is up to them to decide whether register for it or not. Customers of BHPetrol will swipe the eCard at BHP owned petrol station every time they pump petrol into their car. The reason is to collect points which could be used to redeem products such cooking oil, drinks and food. After swiping the card each time, the receipt will show how much points were earned in that particular transaction and how much in total the points they own. Customers will likely to faithfully swipe the eCard allowing the management to make use of the information. The management of the petrol station will be able to assess the system to evaluate how many recurring customers in their store over each month. This data will allow the store manager to forecast the sales for next month. Store managers will then decide whether to have more or less shipments the next month. This eCard system can help to reduce risk of oversupply or undersupply for each individual store. Hence, effectively preventing risk of long queue due to no supply and also disorderly shipments which tends to increase transportation and logistics costs. Besides oil supplies, if there are more customers from the overall who uses the eCard, the particular store will be able to identify this and order more goods to be redeemed by customers. The management in HQ, will be able to evaluate which petrol station is more profitable than the others. Investigation will take place thereafter to understand the main reason a particular store

might be operating at a loss. Moreover, management will then make use of the overall information to decide whether there is a growing, stagnant or shrinking customers pool, which will directly reflect domestic demand. Such analysis will in turn assist management in deciding whether to purchase more contracts from the international oil market.

Instances
In this era of globalization, companies around the globe struggle to retain customer loyalty and keeping track of their customers activities. To do so would be most difficult especially for multinational companies in which some has thousands of stores worldwide. BHPetrol has initiated an eCard to retain both customers loyalty and to keep track of them. The management prides itself of this initiative because BHPetrol eCard provides much more to their customers for every point earned. Introduction of eCard gives its users more to pump petrol at its stores. For every ringgit spent on petrol or any goods bought in BHPetrol station will be rewarded one point. BHPetrol also changes its rewards quarterly so that customers can have more choices when redeeming their points.

External description of the information system

Inputs
1) Store keepers- Assist customers in registering BHPetrol eCard. Keys in customers information into the main server so that it could be stored an accessed by companys personnel. 2) Customers- Swipe cards to earn points and redeem it whenever they want.

Outputs
Data captured when customers register and swipe the eCard can be deciphered into value information. The eCard main server stores customers information the frequency of their visit. eCard can tell the management whether the customer pool in a specific area or a station is growing or shrinking. Besides, compilation of data obtained by eCard can show who frequents the station more. Whether it is light users or heavy users in particular. Heavy users are defined as those pump petrol more than 3 times a week, while light users pump at least once a week or two. The receipt obtained by customers will declare how many points they earned during each transaction and how many points they have in total.

Information processing
Whenever a customer swipes his or her eCard at the station, the machine will automatically send a set of data to the main server. Data would include the type of petrol or products purchased, the total amount spent, time, date and location. The main server will then store the data and produce

another set of data to be shown at the customers receipt such as points earned, total point accumulated and points that will expire at certain dates. Customers may what items are available for redemption at the companys website at www.bhpetrol.com.my. Once application is submitted for redemption, the management will access the main server to check whether the customer has enough points for redemption purposes.

Information stored
1) Customers bio-data is recorded and stored in eCard when customers first register for the card. 2) eCard sends data to its main server each time it is swiped, providing information of amount spent, product bought, location, time and date it was swiped. 3) Main server stores the information collected by eCard and records the points owned by each individual customers.

System boundary
1) External components Customers BHPetrol station shop keepers eCard hardware in each BHPetrol station. eCard software eCard database eCard main frame (main server)

1) Internal components

External view of the information system

Internal description of information system

Information processors 1) Store keepers- Assist customers in registering BHPetrol eCard. Keys in customers information into the main server so that it could be stored an accessed by companys personnel. 2) eCard main frame (main server)- organizes information collected by eCard 3) BHPetrol HQ management team- uses the information collected to make marketing and hedging decisions

Information stores
eCard collects data and information which is then stored at the eCards main server. Containing information from customers bio-data to the time and location customers swipes their cards.

Networks
This system makes use of the internet to connect both the hardware at the petrol station to eCards main server.

Internal view of information system

Input

Further notes
eCard was implemented as an initiative of retaining customers loyalty while tracking their activities. The full description of how eCard functions has been described entirely and thoroughly on the paragraphs above. Nevertheless, eCard has another function that has yet been disclosed. Although CCTVs are installed in every station, cases where shopkeepers stole money are still at large, though the total amount lost are not significant, such behaviours should be checked and stopped. eCard can be used to track all transactions at a detailed level and would be useful in countering such acts. For example, supposing a station has 90% of their total transaction in which the customers use eCard, a detail check in transaction records will reveal what and who went wrong. This Output system could be used at further efficiency and effectiveness by explaining how eCard can detect such acts to the shopkeepers. This will significantly prevent such problems from occurring instead of finding out who did it when it occurred the next time.

Bibliography
Faiz, M. (February, 2012). BHP Customer Service Executive. (S. S. Huat, Interviewer) Ser, D. (February, 2012). Microsoft Corporate Account Manager. (R. Ser, Interviewer) Wong, J. (February, 2012). BHP IT executive. (R. Ser, Interviewer)