Group Three Project Three Content: (Exploring The Information Systems in An Organization)

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[Exploring the Information Systems in an Organization]
Group Three Project Three

Content
1. Task requirement
2. Objective
3. Corporate profile
4. Company organization history
5. Problems that the IS tries to solve
6. Whole IS in the organization
7. Integration with other IS system in the organization
8. Specific IS system exploration
9. Benefit the IS had bring to the organization
10. Reflection
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1. Task requirement
Group Project 3: Exploring the Information Systems in an Organization
Group 3 Project 3 - Management Information Technology (MTD1013)
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Description: The MIT is better studied in the actual environment. From here, students are
able to relate and integrate the knowledge that you have learn so far and see the MIT in first
hand encounter. There are many concept and term that you have came across in our class.
Now, in order to better understand it, you are required to explore those organization that you
choose
from
and
study
in
details
the
IS
function
in
it.
Task: You are required to study the IS in any organization, government or private, and come
up with a details report on it. In your report, you need to describe the overall IS that runs in
that particular organization. Then, specifically, focus down to only one IS i.e. ERP, or CRM,
AIS etc, and describe in details of its:
Objective
Problems that the IS tries to solve
Functions
Integration with other IS system in the organization
Benefit the IS had bring to the organization (i.e. ROI - Return On Investment,
productivity etc)
Acquisition process
Implementation
Lastly, relate back what you have learn from your case study to the overall objective of your
MIT subject. Your report need to be not more than 20 pages long, including appendix and
references.
Presentation: Prepare a presentation on what you have discovered and present it to the
classroom using the format above. Your presentation should take between 30-40 minutes.
2. Objective
Based on the task requirement, the MIT subject requires the students to do some research on
the Information System (IS) that have been used in the real life organization. Students have
to explore the overall IS system which have been implemented by the organization that have
been chosen by the students. Since organization implemented a bunch of IS systems to
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operate their daily routine, the students have to study on one of the specific system used by
the organization so that they can have a full understanding towards the organization operation
throughout the production process. So this task is mainly focusing on achieving the result
based on the categories below:
A. Management
Allowing the students to be able to
1. Deal and experience the corporate bureaucracy during the process of getting
through the organization
2. Co-operate on the delegation of the task
3. Completing the task with time consuming
B. Knowledge
Allowing the students to be able to
1. Relate and experience the theories that have been learned in the class with the
actual process and procedure that happen in the real life organization
2. Compare and contrast the real need of the IS system in the real world
3. Experience the actual IS fields in the organization and see the potential in
upcoming opportunity and job
3. Corporate profile and location

Based on the task, this project have chose that Proton Holdings Berhad as the organization
which will be studied and explore. It has been the largest automotive brand in Southeast Asia.
For decades, Proton has strived to distinguish PROTON from others by reflecting the quality
and persevering in perfecting the brand and product design, in order to become a global
automotive player. Below is the well-known Proton Holdings Berhad assorted logo.
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However since the evolvement of the Proton Holdings Berhad, they have change their
logo throughout the years. Below are the transformation of Proton logo.
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Protons factory is situated in Industrial Area HICOM , Batu Tiga, Shah Alam which had
opened on 9 Julai 1985 and launched by the Prime Minister YAB Tun. Dr. Mahathir bin
Mohamad. After 20 years of operation, Proton has launched another factory at Tanjung
Malim, Perak which has been launched by Dato Seri Abdullah Ahmad Badawi. On 2 Ogos
2008, Proton has celebrated a 3 million cars production.
4. Company organization history
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Perusahan Otomobil Nasional Berhad (PROTON) was incorporated in May 7, 1983 to

manufacture, assemble and sell motor vehicles and related products, including accessories,
spare parts and other components. PROTON produced Malaysia's first car, the Proton Saga,
commercially launched on July 9, 1985 by then Malaysian Prime Minister, Dato' Seri
Mahathir Mohamed, who had originally conceived the idea of a Malaysian car.
Proton Saga Launching on 9 Julai 1985
Its model line-up includes the Waja, Satria GTi, Wira, Iswara, Arena, Perdana V6 and
Juara. The range of 1.3, 1.5, 1.6, 1.8 and 2.0 litre engines satisfies a wide spectrum of
customers both locally and abroad. PROTON's main plant in Shah Alam, with an area of 923
900 sq metres, was originally designed for a capacity of 80 000 units per year. In 1997,
capacity increased to 230 000 units per year with the construction of the Medium Volume
Factory, which is next to the Main Plant. Today, the Shah Alam factory is capable of
producing 240 000 vehicles per year.
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Besides being shareholders, Mitsubishi Corporation and Mitsubishi Motors Corporation

are also PROTON's technical assistance partner and component supplier. PROTON has a
total of 11 subsidiaries and 11 associate companies, which are involved in manufacturing,
research and development, sales and service activities.
December 30, 1996, marked the launch of the Proton Putra, a two-door coupe, as well the
production of our millionth car from the Shah Alam plant. PROTON made a major step in
upgrading its engineering capabilities with the acquisition of Lotus Group International
Limited, a British automotive engineering company and manufacturer of luxury sports cars in
October 1996. Together, PROTON and Lotus offer large scale manufacturing capabilities
with world-class engineering expertise.
PROTON cars are making their mark internationally as competitive and innovative
automobiles. They are now being exported to 50 countries including the highly competitive
United Kingdom and continental European markets. With concerted and unswerving
commitment from customers, business associates, shareholders, government agencies, and
employees, PROTON is realising its goal of being an internationally successful Malaysian
automotive manufacturer. It is achieving this by being customer oriented and by producing
competitively priced and innovative products. Thus, it is contributing to Malaysia's
attainment of Vision 2020.
With solid base built up over the last 10 years, Malaysia's car manufacturing industry is
progressing vigorously.
5. Problems that the IS tries to solve
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In order to gain information about the systems that Proton used, a meeting with Senior
Information Manager of Proton Holding Berhad, Mr. Azahari Othman has been held on 1 st of
April 2011 at Proton Casting Plant situated in Glenmarie, Shah Alam. Before we go further,
Proton have 3 branches to operate the productivity. One is situated in Hicom, Shah Alam
which is the biggest Proton factory and act as the main head of all operation involve in
Proton Holdings Berhad. The second one, is located at Glenmarie, Shah Alam which is
focusing more on casting plant and have a main Business IT division that operate for the
whole Proton corporation. The last one is situated in Tanjung Malim which is called Proton
City because it in house major production process of Proton productivity.
So, according to Mr Azahari, Proton Holding Berhad used SAP system or System
Application Programming to connect and operate any operation involve in the company.
Proton used this system because it acts as one of the business suite solution that compromise
and integrate with all other system either in management or production area. Overall about
SAP system will be explained further on part 6.
Since SAP is the main system used in Proton, it helps the company in four major ways.
The four major ways is a below:
1. Financial
2. Human Capital Management
3. Operation
4. Corporate Services
6. Whole IS in the organization

Since Proton Holdings Berhad is the most establish company in Malaysia, they have used
and own also the most establish IS systems to be operate successfully throughout the
evolvement of the company within this 25 years. Proton has been used SAP IS systems in
whole developing and production process.
Before we look closer to SAP system, Proton has its own policy towards the system used.
Based on the interviewee, in order to have the system to operate, the program must be in
MySQL language. Even though Proton is a big production company, they still choose to use
MySQL language because it is an open source program and it is cheaper compared to Oracle
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which is licensed and expensive. Another things about Proton is that previously most of the
Proton system involve UNIX operation system but now they are moving forward in using the
Microsoft operation system.
Since Proton is a large corporation, they also have three data center to support the
capacity of the data and each act as backup data center for the other. This data center is
situated in Shah Alam, Tanjung Malim and OUE. This data center has 1 high-end server that
integrates with 7 servers. Previously, Proton only has 3 servers to operate but due to high
demand in the production process they bought another 4 server.
Through all this 25 years of evolvement, Proton has used 3 systems which are INTRA,
.net and SAP. SAP in a new implemented system in Proton which have been currently
operate for 3 to 4 years. This system is used in order to replace the INTRA and .net systems
that have been used for about 5 to 6 years and not sufficient enough to meet the latest
technology. Besides this big operational system, Proton allows each division in the company
to have their own system but still they have to integrate it with the SAP system. This is due to
the needs and requirements involve in each division. Any new created project will have their
own division to run. However, Proton still provide or allow some system to be created
internally by the IS division. In order to do this, the proposal has to be submitted to the
Procurement Council so that they have their budget either to outsourcing it or made
internally. Members of the council are include the board of directors and senior IT
management.
Now let us look at the SAP system used by Proton Holdings Berhad. SAP or System
Application Programming is a German global software corporation that provides enterprise
software applications and support to businesses of all sizes globally. Headquartered in
Walldorf, Germany, with regional offices around the world, SAP is the largest enterprise
software company in the world (as of 2009). It is the world-leading provider of business
solutions & operates in Kuala Lumpur since 1992. It is also the largest software company in
Europe and the fourth largest globally. The company's best known products are its SAP
Enterprise Resource Planning (SAP ERP) and SAP Business Objects software. Besides
Proton, Petronas Company also use this system to manage their productivity and this German
company has over 500 clients that use SAP system in Malaysia.
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As for this project we are focusing in SAP Enterprise Resource Planning (SAP ERP)
only. Proton uses this SAP ERP because it manages 4 major components such as:
Money
Material
Manufacturing
Machines
Despite these components, Proton chooses SAP ERP that function towards below criteria:
Finance
Material
Quality
Maintainence and HR
Production
So based on Proton Holdings Berhad demands above, they have been used several SAP
system such as below:
1. Customer Relationship Management (CRM)
2. Enterprise Resource Planning (ERP)
3. Product Lifecycle Management (PLM)
4. Supply Chain Management (SCM)
5. Supplier Relationship Management (SRM)
7. Integration with other IS system in the organization
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Based on the picture above, we can see the integration within the IS system owned by Proton.
Since Proton mainly used the SAP system. From here, we can see that the main SAP system
which is situated in Shah Alam has to be integrate the result or data wih the SAP from
Casting Plant department which situated at Glenmarie, Shah Alam and also combine with the
SAP system at Tanjung Malim. This structure shows to us how the integration happens in the
company using SAP PI. The yellow boxes are the systems that operate to produce the specific
focus.
8. Specific IS system exploration

Now based on the project, we are going to focus on SAP PI which means that we are
focusing on SAP Process Integration system. SAP using PI, allow the system to
Enabling Application-to-Application Processes
Enabling Business-to-Business Processes

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Business Process Management
Enabling Enterprise Services
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According to Proton, They used this SAP PI to integrate throughout the process and the
system in all Proton devision. (See the diagram below)
Purpose
With the usage type PI, Proton can integrate applications from one or multiple systems. SAP
differentiates between the following areas:
Cross-system application integration, which does not focus on individual end-user actions.
Applications can be company-internal, cross-company, SAP or non-SAP applications.
The SAP NetWeaver usage type PI incorporates all functions that were previously a part
of SAP Exchange Infrastructure (SAP XI).
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The modeling, administration, and automation of user-driven processes within SAP

systems. From a technical viewpoint, a core function of the runtime is that you can save
the state of a previously-modeled process and call it up at a later stage, if the process is to
be continued as a result of a particular action or event. Since the execution of processes
can be useful when integrating applications across system boundaries (without user
actions), relevant functions within SAP NetWeaver are reused for this purpose. Together,
the functions referred to here are known as Business Process Management.
However, the diagram below, will show how Proton have the integration within the SAP
PI system. So based on this diagram, Proton can make sure the flow of data and the
production that happen in the whole system.
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9. Benefit the IS had bring to the organization

According to Mr. Azahari, the Senior Manager IT in Proton Holdings Berhad, SAP is a
proven process and has been used internally or world-wide. Besides that it has a shorter time
of development for either a ready-made system and customizes system because some of the
system is ready made by the German company. He also said that SAP system have never
been corrupted in the entire runtime process compare to other supporting system that used to
be corrupted due to the lack of maintaining.
SAP system is also used because of its high effectiveness in reporting tools. Previously
Proton used Crystal Report Tools to generate the report but this tool only generates report but
dont have any input data area process. Meanwhile, the SAP system provides the input data
area and at the same time generates the report. It is also have the best support system and
provide the support and backup all the time for the Proton.
Besides the main SAP system , Proton also use SAP ERP. The advantage that Proton
choose SAP ERP is because:
SAP is a powerful tool that integrate multiple business processes and functions into
one comprehensive system

SAP reduces lack of integration across business line which will raise the risk of
duplication, mistakes and inconsistency data

SAP provides different approach than their competitors in market. Each piece
(module like FI, MM, SD) can operate independently from all other software. And the
key benefit of using this approach is that companies can implement individual module
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that fits the company needs, and have the flexibility to add other module later when
their business grows.
10. Reflection
After completing the task on the Proton Holdings Berhad, we have learned and obtained such
valuable experienced in managing the Information Technology. As far as we know, we are
able to face have the difficulties in facing the bureaucracy when trying to deal the meeting
and the appointment with the Senior Manager IT in the company. The hardness is to get
through the right person and have his permission to do the task. Another things is that we
have to wait for about one hour before the interview session started.
Another thing that we learned through this task is that we are able to see the real information
technology management involve in each company. We are also now realized how important
this division in developing the company. In Proton, we are very surprised to see that the
whole floor of Casting Plant Factory in Glenmarie is focusing and working on Enterprise
Resource Planning process. So by the look of the size of the building and the numbers of
staff that some are having discussion (meeting in small room) and others are busy focusing
on the computer in front of them, we come to realized that this division is more important as
we ever thought. This experienced gives us inspiration to move on to this ongoing field.
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11. Appendixes
Our visit to Proton Casting Plant at Glenmarie Shah Alam
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The Slides Presentation
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