WESTMINSTER INTERNATIONAL UNIVERSITY IN TASHKENT

Table of contents
Introduction...........................................................................................................................................2
Market Analysis....................................................................................................................................3
Covid-19 Impact on the industry....................................................................................................4
Local Case (Apelsin Application)...................................................................................................5
Internal business process analysis...................................................................................................7
Value Chain Analysis......................................................................................................................7
Primary activities..........................................................................................................................8
Supportive Activities.....................................................................................................................9
New BIS Development........................................................................................................................9
Reference List....................................................................................................................................12

Word Count: 2719

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Introduction
The end of the 20th century was marked by introduction and intensive development of
computer science into all spheres of society. This reflected in intensive improvement of
computer and communication technology, in the emergence of new and further
development of existing information technologies, as well as in the implementation of
applied information systems. Advances in computer science have taken their rightful place
in organizational management, in production industry, in scientific research and in
computer-aided design. Informatization has also covered the social sphere: education,
science, culture, health care. Informatization as a process of transition from an industrial
society to an informational one was characterized by a sharp redistribution of labor
resources into material production and into the sphere of information. This ratio has
changed from 3: 1 to 1: 3 in favor of the development of information technology. In a
number of countries, the total expenditures on computers, telecommunications, electronics
exceeded the expenditures on energy (vistacollege.edu, 2018).
The influence of information technology and the work of the creation of IT companies is
difficult to overestimate - the gadgets that we use for several hours every day, e-commerce,
as well as the multimedia systems built into our cars - all these are the fruits of the creation
of IT companies. The main tasks of it-oriented businesses are the widespread
dissemination and increasing the availability of modern technologies aimed at solving
everyday problems in everyday life and in the workplace by developing the best modern
services and products. To find such solutions, IT companies constantly monitor and study
the latest developments and trends in the IT world, optimize cooperation with suppliers and
vendors, and work closely with end users to study their needs. (state.gov, 2016).
The above changes in the global industry make it possible to create useful integrated
solutions not only for traditional business, but also to upgrade the quality of the software
development companies themselves. The purpose of this report is to analyze the current IT
market and its segmentation by areas, search and detailed study of digital information
systems that can be applied in an IT-oriented company to optimize business processes and
increase the efficiency of corporate resources, as well as study the potential benefits that
the company will receive thanks to the introduction of information systems. By analyzing the
global and local market of companies related to the use of information technology, it was
decided to consider the Uzcard company and the ways of its digital transformation.

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Market Analysis
The information technology industry is a huge range of services and products that millions
of people are working on. To assess the greatness of the IT market, a study by Evans Data
Corporation (2019) determined the demographics of software developers in 30 countries
and forecast the situation in the industry for 5 years. According to the research, in 2019
there were 23.9 million developers in the world. It is expected that by 2023 there will be
27.7 million. It is also worth considering that many specialties are concentrated in the IT
industry, and not all are directly related to writing code. For example, IT managers, as well
as sales specialists and marketers who sell with the help of IT do not write the code
themselves, but actively participate in the development of the market and the creation of
services. As well as testers and system analysts - necessary and important IT specialists
who begin to write code for test automation and at the software integration stage.

Although software development companies pursue more or less the same goal, which is
making a profit out of developing digital products and services, IT business is divided into
areas, each of which has its own characteristics, advantages and disadvantages. According
to Väyrynen (2010), the main areas are:
Product-based companies
Such companies develop their own products. A product can be anything you want - a
mobile application, social network, development environment, or antivirus. The name of
such product-based IT companies as Microsoft, Apple, Kaspersky Lab or Yandex is on
everyone's lips. Millions of people use their services every day, bringing huge profits to
corporations.
Outsourcing IT companies
This is a type of company that develops custom software for other firms and enterprises.
Also in outsourcing, cases are frequent when the customer transfers his current functions to
support IT systems to an external IT company, while the contractor guarantees the
performance of these functions in accordance with the approved level of service.
Consulting companies
These are companies that are implementing ready-made software. Consulting companies
have a ready-made solution with business processes inside, such as corporate information
security systems or enterprise resource planning (ERP) systems. Representatives of the
traditional business turn to a consulting company to implement these solutions in their
business processes, then the employees of the executing company carry out the process of
implementing the system and training the employees of the enterprise on the use of
integrated software.

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IT departments of non-tech companies
This direction began to develop due to the digital transformation of traditional business.
Often these are banks, insurance companies or forex brokers who must have their own IT
department to be successful in the market. The activities of such departments are at the
intersection of outsourcing and product-based. On the one hand, they develop solutions
from scratch, but usually these are enterprise applications that are used by employees of
the company itself, less often by users from the market. Such departments and companies,
like outsourcers, work for the customer, only they have one.
As mentioned above, each direction has its own strengths and weaknesses, for example,
product oriented enterprises develop information systems not for the customer, but for the
end user, which allows them to gain flexibility in choosing business logic and project
architecture, as well as to have long-term income from end users throughout the life cycle
of this project. For an outsourcing company, on the other hand, for a successful existence,
it is enough to successfully complete the development of a product and hand it over to the
customer. Thus, an outsourcing business generates income with only a few large
customers, while a product-based company needs to constantly improve and support the
work of already released projects in order to get as many users as possible.
Covid-19 Impact on the industry
By early April 2020, the COVID-19 coronavirus pandemic has hit all markets and countries.
The impact of the spread of the infection has affected the way companies and government
agencies are undertaking digital transformation. This conclusion was reached by IDC
analysts In early May 2020, IDC published the results of a study on the impact of the
coronavirus COVID-19 on the situation in the IT market. According to experts, global costs
of information and communication and business services in the near future will fall 3.4% to
$ 4 trillion, while telecommunications costs will decrease by 0.8%.

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However, the pandemic should and will contribute to accelerated digital transformation, as
the world began to actively transition to the use of information technology. For example,
educational institutions are introducing tools for distance learning and examinations,
companies are installing software for remote work and staff interaction, medical institutions
have begun to minimize patient visits to doctors' offices, and stores are massively launching
contactless delivery services. With the virus outbreak, companies are becoming more
digital and more likely to interact with their customers remotely. To manage personal data in
IT, large companies are forced to implement specialized systems to manage information
about users of their corporate systems. Thus, some sections of the IT market will be more
resilient to this economic downturn in relative terms, as technology has already become an
integral part of business operations.
Local Case (Apelsin Application)
A clear example of the positive impact of the pandemic situation on the development of the
IT market in Uzbekistan is the creation of the Apelsin application by Kapital Bank. Initially,
the project was intended as an emergency measure for working with bank clients, since
movement around the city, as well as the activities of physical offices of most public and
private institutions in the country, including banks, were limited and because of this, clients
could not use the services of Kapital Bank. The development of the bank's mobile
application resolved many of the problems of limiting the institution's activities, thus the
company was able to recover and reduce losses from the lockdown.

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An unexpected positive effect of the release of the application was that users loved the
Apelsin application so much that within a year of its operation it became the most popular
among local Internet banking services. The project, initially created as a forced procedure,
has become a profitable service with many positive qualities for the bank.
The Central Bank of the Republic of Uzbekistan issued a license to JSC Bank Orange
(legal name of the Apelsin service) from November 1, 2021. Now the Apelsin mobile
application has been launched as Apelsin bank - a fully digital bank and is a subsidiary of
the LLC Kapital Bank group, which has a network of branches and representative offices in
all regions of Uzbekistan. All work and relationships with Apelsin customers will be built
using modern technologies, in a digital format without physical divisions and branches. For
example, consultations with specialists are conducted in the chats of the mobile application,
as well as through the online feedback form, and they promptly respond via social networks
Facebook and Instagram or the Telegram messenger (plusworld.ru, 2021).
The Apelsin application case is an example of how the use of information systems in
business can contribute to the activities of all processes of an organization. In addition to
the previously mentioned challenges of product-based companies, it was decided to select
for studying a specific local IT-oriented business, developing its own products and services
and offering a business information system for digitalization of its activities.

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Internal business process analysis

Uzcard provides various digital services for servicing clients of interbank transactions using
plastic cards with microprocessors, as well as developing and installing terminals for remote
servicing of bank clients. The company is a local leader in the implementation of point of
sale systems for commercial and non-commercial organizations in Uzbekistan. Uzcard also
owns various projects in the field of digital sharing to expand its market share and increase
the company's profitability:
Arca Group - develop sophisticated interfaces for interaction with customers on modern
POS terminals to increase the range of cash services for local businesses.
Atto is a system for ensuring information and technological interaction in the provision of
services for the carriage of passengers in public transport using transport cards with
contactless NFC technology, mobile and stationary validators for registering fare payments,
as well as a billing system for generating reports on the number and time of trips, vehicle
route numbers.
Value Chain Analysis
The value chain was developed by Harvard Business School professor Michael Porter.
According to Porter's concept, a value chain is a chain that creates value for activities,
starting with the provision of raw materials and continuing through the production of parts
and components, assembly and release of products, wholesale and retail sale of a product
or service to end users. The analysis of the "value chain" is based on the assumption that
the main economic goal of the enterprise is the creation of the value of the goods, which
exceeds the real costs of its production. (Porter, 1985).

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Primary activities
Inbound logistics
Inbound logistics - activities, costs and assets associated with the purchase of fuel, energy,
raw materials, components, goods from sellers; acceptance, storage and sorting of
suppliers' products; control; inventory management. The Value Chain was originally
developed by Professor Porter for large-scale product manufacturing companies that
recycle raw materials into functional manufacturing processes. This report examines the
activities of an IT-oriented organization, therefore the only element of inbound logistics at
Uzcard is the acquisition and temporary storage of installed server hardware and electronic
devices used to install the company's developed software for clients' business.
Operations
Operations are aimed at converting the flow of raw materials into the final product
(manufacturing, assembly, packaging, equipment operation, installation, product quality
certification, environmental protection). Operations in the surveyed company represent the
acquisition of technical specifications from the company's management and turning it into a
finished product or service using software development tools.
Outbound logistics
Outbound logistics deals with the physical delivery of goods to the buyer (warehousing of
the final product, order processing, scheduling, shipping, transportation). The release of the

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software and its installation on the company's servers is the final stage of product
production in Uzcard.
Marketing and Sales
The company's sales agents and marketing specialists begin to promote the product to
potential customers, and organizations already using the company's services are notified of
the emergence of a new solution for their business.
Service
Service of the offered products is the main activity of the company. For each transaction
carried out, Uzcard receives a commission, which is further invested in optimizing the
delivery of services. The company also has a large customer service department, in which
there are technicians who monitor the health of the hardware installed in customer
organizations, as well as a call-center that supports customers around the clock in case of
problems or questions.
Supportive Activities
Ancillary activities complement the main activities and play a service role in the
organization's processes. Supportive activities include:
Firm Infrastructure
The company's infrastructure includes a medical department, quality control departments,
system administration, latrines and a cafeteria to fully cover the primary needs of
employees and organizational processes.
Technology Development
This indicator manifests itself in Uzcard through constant investment and development of
technological products that they offer to their clients.
Human Resource Management
Attraction, recruitment, training and professional development are the main tasks of labor
management at Uzcard.

New BIS Development

A large number of employees and the presence of large projects, the constant development
of which is being carried out simultaneously, creates great difficulties in controlling the
actions of each employee, and in such conditions, it is also difficult to track how much time
an employee of the company spends at work. Such conditions often lead some employees
to professional burnout, since the management does not control how many hours the
developer spends on the project and cannot track the overtime, for other employees, on the

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contrary, this causes a feeling of impunity, since in the absence of control it is very difficult
to single out the contribution of each employee to a large project.
Project Management System (PMS) - A set of tools, methods, methodologies, resources
and procedures used to manage a project. It can be both formal and informal and helps the
project manager complete the project efficiently. A project management system is a set of
processes and related control functions, combined into a single purposeful structure. A
project management system is built around a project management plan that describes how
the system will be used. The content of a project management system varies depending on
the application area, organizational characteristics, project complexity, and the availability
of the required resources. The system is built in such a way as to maximally correspond to
the strategic goals and production resources of the client organization.

Project Management System example

This system allows:

- Create, implement and adjust the work plan for the project;
- Effectively distribute material and human resources required for project
implementation;
- Control the main indicators of the pace and quality of the project;
- To seek to improve production efficiency;
- Establish the presence of relationships in the work of various projects;
- Consider the merits and demerits of the work done when planning a new project.
Resource management systems use modern Scrum techniques, a lightweight framework
that helps people, teams and organizations create value through adaptive solutions to
complex problems. It contains the minimum required number of elements to translate into
practice the values of the project. The word "framework" means that in each case you can

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build your own process from these mandatory elements, supplementing Scrum with specific
methods of work (Schwaber, no date).
A sprint is a short time frame during which a scrum team does a given amount of work.
Sprints are at the heart of scrum and agile methodologies, and choosing the right sprints
will help the Uzcard development team deliver better software without unnecessary
headaches.

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Reference List

About Us (no date). Uzcard.uz. Available from https://uzcard.uz/about-us [Accessed

18 November 2021].
Services (no date). Uzcard.uz. Available from https://uzcard.uz/services [Accessed
18 November 2021].
Apelsin app became a digital bank in Uzbekistan (2021). Kapitalbank.uz. Available
from https://plusworld.ru/daily/digital-banking/v-uzbekistane-prilozhenie-apelsin-
stalo-tsifrovym-bankom/ [Accessed 22 November 2021].

Costello, K. and Rimol, M. (2020). Gartner Says Worldwide IT Spending to Decline

7.3% in 2020. Gartner. Available from https://www.gartner.com/en/newsroom/press-
releases/2020-07-13-gartner-says-worldwide-it-spending-to-decline-7-point-3-
percent-in-2020 [Accessed 18 November 2021].

Department IT Strategic Goals and Objectives (2021). U.S. Department of State.

Available from https://2009-2017.state.gov/m/irm/itplan/264054.htm [Accessed 18
November 2021].

History of Information Technology and Evolution of IT Jobs - Vista College (2018).

Vista College. Available from https://www.vistacollege.edu/blog/careers/history-
information-technology-evolution-jobs/ [Accessed 17 November 2021].

Lieby, V. (2019). Worldwide Professional Developer Population of 24 Million

Projected to Grow amid Shifting Geographical Concentrations. Evans Data
Corporation. Available from https://evansdata.com/press/viewRelease.php?
pressID=278 [Accessed 18 November 2021].

Mlitz, K. (2021). ICT global market share by country 2021 | Statista. Statista.
Available from https://www.statista.com/statistics/263801/global-market-share-held-
by-selected-countries-in-the-ict-market/ [Accessed 18 November 2021].

Porter, M. (1998). Competitive advantage. New York: Free.

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Silveira, P., Mannan, U., Almeida, E., Nagappan, N., Lo, D., Singh Kochhar, P., Gao,
C. and Ahmed, I. (2021). A Deep Dive into the Impact of COVID-19 on Software
Development. IEEE Transactions on Software Engineering, 1-1. Available from
10.1109/tse.2021.3088759 [Accessed 18 November 2021].

Väyrynen, K. (2010). Software Business in Industrial Companies: Identifying

Capabilities for Three Types of Software Business. ICIS.
Schwaber, K. (no date). About. Scrum.org. Available from https://www.scrum.org/about
[Accessed 19 November 2021].

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