DIGITIZONE

A partial fulfillment for the requirements of Enterprise Systems

Group Members:

Calmerin Isaac Darren B.

Dela Torre Jamil M.

Jabat, John Aerol P.

Manalo, Lhieny Mae D.

Sarmiento, Niña M.

Velante, Royce Johncent C.

June 2022
INTRODUCTION

According to the Asian Development Bank (ADB), MSMEs are the backbone of

economies in Asia and are considered its driving force. In the Philippines, MSMEs

comprise around 99 percent of businesses in the country. MSMEs play a key role in

developing the Philippine economy. They create job opportunities. The DTI said these

businesses alone have managed to generate over 5 million jobs or 62.4 percent of the

country's employment.

We cannot deny that, as one of the countries in the world that relies on micro,

small, and medium-sized enterprises (MSMEs) for economic growth, we can consider

them important in our daily routine in the community. Eventually after the COVID-19

global epidemic broke out, our government started giving financial and other forms of

support to micro, small, and medium-sized enterprises (MSMEs) and their workers,

acknowledging that smaller businesses are more susceptible to negative impacts to

their supply chain, labor supply, and final demand for goods and services.

One such business is Digitizone, a computer retailer in Calapan City. The

business offers a diverse product range consisting of desktop systems and

components, laptops, smartphones, gaming peripherals, networking, imaging, and

accessories. The business can be found at City Mall, Ilaya, Calapan City.

Digitizone is a sort of store that retails electronics such as laptops, computers,

and cellphones. A retail business is one in which things are sold directly to clients with

the intention of making a profit. With the introduction of shopping malls and large

corporations into the retail industry, it has become a much more structured sector than

before. This business may be started by a young enthusiast with a modest shop that

can subsequently be extended to several chain outlets. The amount of money needed

to start a retail business is determined by the size of the company. You may start small,

keep it small, or grow it into a medium-sized firm.

Job flexibility is amazing news for workers, but it's also good news for businesses

and customers. Digitizone strives to supply quality items including laptops,

smartphones, and its parts. They are also one of the firms interested in establishing a

company in Oriental Mindoro, notably in Calapan City. If you're thinking about opening a

gadget store, you're aware that the shifting environment has created chances for a

whole new set of businesses to service clients when needed. Mobile/Electronic

businesses can charge extra for services delivered to a client's door, and mobile

businesses can be more convenient for people who wish to spend money.

BUSINESS CASE

Digitizone aspires to expand and improve in the field of business. The

established business is a retail store that sells technology products such as laptops,
computers, mobile phones, printers, and so on. It is also beneficial for technology sales

to be a business since market demand continues to rise.

Business development is linked to organizational issues. It may be claimed that

obstacles contribute to strengthening a company's foundation. Digitizone is one of the

enterprises that has been started in the post-pandemic period, which affects not only

huge corporations but even small businesses. Many adjustments have occurred, such

as limiting security to the health of both customers and staff. Small firms have been

struggling to resurrect their sales. Importing new items into our province is also

challenging due to stringent security at the port.

We can see Digitizone will have a problem in assisting the business in the

inventory of the things it wishes to offer on the market, just like many retail businesses,

a lot of them utilize notebooks to keep track of what they've sold. Employees are given a

log book when they arrive. It is, in our opinion, time-consuming. Our team wants to

solve these issues; thus we've proposed an information system as a solution.

To summarize, we are working together to address the different existing

problems in Digitizone which is follows:

• Manual Accounting method used in business process

• Manual Inventory records

• Low sales due to smaller range of market

 That is why the proponents of this study have come up with a system called

Digitizone Application that could help Digitizone manage its business in the best way

possible and also all possible MSME’s that can use the system.

BUSINESS PROCESS

Proponents of this study have focused on Digitizone's accounting, inventory, and

order processes. In which the proponents took information about the business's

problems. It is also the scope of the processes included in the proposed system in order

to solve them.

Accounting is a way business owners manage their company's financial

information. Business owners use accounting to record, report and analyze their

company's financial information. Companies often generate several pieces of financial

information from business transactions and compile this information into general ledgers

and journals. Just like any other undigitalized businesses, the Digitizone accounting

process is still a manual process using paper books and documents for financial

information. Digitizone's manual accounting uses several paper ledgers and journals

where the employee records financial information. The general ledger includes

miscellaneous transactions and the aggregate balance of all subsidiary ledgers and

journals. Digitizone's manual accounting is detailed, since employees must carefully

enter information into physical books. However, the business is still struggling since

traditional manual accounting systems are very time consuming and the risks of
mistakes are huge unlike computerized accounting which reduces errors and speeds up

the accounting process.

Having an inventory management system to monitor stock and sales is key for

small businesses. Digitizone is one of the businesses that still uses manual inventory

methods as well. Although manual inventory can be a good choice for very small

businesses that do not carry much inventory. Unfortunately, a manual inventory system

is quite vulnerable to human error. Furthermore, a manual inventory system can quickly

become unmanageable. That’s because as the business grows, you’ll have more and

more inventory to manage. Handling all those items manually can take up way too much

of your and your employees’ valuable time—and eventually become so time-consuming

that inventory tracking could slip through the cracks. The employee lists the types of

items in one column, and writes down the sales in another that tells you at a glance how

many of each have been sold in an actual notebook. Digitizone uses tags, cards or

tickets to track each type of product, entering them in their log as they sell. They also

use sales receipts from your cash register, comparing them with delivery receipts to

figure out how much has been sold. The employee must be sure to enter every sale or

the business might get caught short. The accuracy of a manual system, and therefore

its usefulness is totally dependent on how the employee uses it.

Sales order processing is the sequence of actions that a business follows to fulfill

a customer purchase. Digitizone’s sales order processing is still a manual operation that

depended on a lot of paper. Sales order process workflow starts when a purchase order

is received from a customer. The purchase order then will be entered by the employee
in the seller's book as a sales order. The employee then sends a paper invoice and

ensures payment is received. Then, the order is already completed.

In general, the business uses manual processes that rely on paper. Paper trails

are important in business, of course, but paper can be lost or destroyed. Plus, having to

keep records on hand for a certain amount of time after each purpose means a great

deal of office real estate could go simply to document storage. Because of how many

hands the papers must go through, each exchange leaves opportunity for error and

misplacement.

INBOUND PROCESS

Inbound processes are the network flow and influx of raw goods and materials

that go from a supplier to the business. Its process includes everything from

transportation, to storage and delivery of goods that the business receives from

suppliers.

Digitizone goes through several stages in the inbound logistics process. The

business first determines and examines possible suppliers through sourcing and

procurement with whom the business can manage and negotiate terms in logistics as

well as receiving best prices. This includes the procurement process of laptops,

computers, mobile phones, printers and accessories to the best supplier possible. Then,

Digitizone purchases the right amount of goods and materials for the business and

ensures the right quantity is received on time. The business then figures which mode of

transportation to use, whether it be a truck, boat, airplane, train etc. to deliver the
materials to the business. Digitizone now unloads the new materials that arrived. Once

that is done, the quantity of materials of goods in the truck should coincide with the

order and that there are no mistakes. Digitizone ensures that the storage conditions for

the materials are met and that they are put where they should be for fulfillment. The

inbound process used is shown in Figure 1.

OUTBOUND PROCESS

Outbound logistics refers to the outward flow of goods and services from the

company or simply put it is the movement of goods and services from the company to

the market. The outbound logistics process starts with a customer sales order, moves

on to warehouse packing and ends with product delivery.

Digitizone sells a diverse product range consisting of desktop systems and

components, laptops, smartphones, gaming peripherals, networking, imaging, and

accessories. The business goes through several stages in the outbound logistics
process. The sales department first receives a purchase order from the customer. The

sales department checks inventory availability to ensure they can fulfill the order. The

sales department prepares the order for picking and packing. The order then will be

entered by the employee in the seller's book as a sales order. The business bills the

client and eventually collects cash for the order. The employee updates inventory levels.

The inbound process used is shown in Figure 2.