De La Salle University Manila

Term 2 A.Y. 2022-2023

Presented to the
Department of Decision Sciences and Innovation

Systems Study and Proposal of Robinsons Malls’ Parking System

In partial fulfillment for the course of

System Analysis and Design
(SYSDESI)

Submitted by:
Lee, Mitchell Vrylle C.
Bermudez, Dianna G.
Baroja, Marcus Carlo P.
Talavera, Juancho

Submitted to:
Mr. Jose Pocholo Villena V, MBA

Submitted on:
April 16, 2023
 Executive Summary

The Covid-19 pandemic has led to the rise of technological innovations ranging
from contactless temperature sensors using artificial intelligence (AI) to mobile wallet
applications. Though these innovations were made with the purpose at the time of
reducing human interaction and thus decreasing the transmission of the disease, these
technologies may also be applicable in solving other problems and systems. The
Philippines is known to be a country plagued with traffic, congestion, and
overpopulation. Metro Manila is also known among Filipinos to be one of the most
congested and “annoying” cities to drive in with the amount of traffic and uneducated
drivers, this being one of the reasons behind the Land Transportation Office’s (LTO)
overhaul of the driver’s license application process. The congested streets prompt drivers
to find parking spaces in different establishments, ranging from independent parking lots
to mall parking. However, said parking establishments often have an inefficient system of
operations. Vehicles along major roads often create traffic as they line up to the entrance
of the parking space. Numerous examples include the Mall of Asia grounds as well as
SM Megamall where the busy roads of Roxas Boulevard and Epifanio de los Santos
Avenue (EDSA) are filled with vehicles trying to enter the parking spaces. Exiting the
parking is also another situation as numerous establishments have a pay as you exit
system which creates a long queue of vehicles lined up as they exit. Robinsons Malls is
one such establishment. As such, many businesses have started to explore other parking
systems which include a payment scheme while the car is still parked utilizing AI
technology and license plate readers. In the case of Robinsons Malls, one such system
proposed is a generated QR code within its mall app, RMalls+ which will also feature a
balance system where drivers can pre load to avoid paying at the kiosk and therefore
enjoy an overall better experience. This balance and QR system is greatly influenced by
mobile wallet applications such as GCash and Maya, both of which are present among
numerous businesses. This proposed system will generate numerous benefits, most of
which are intangible such as customer satisfaction and decreased traffic. Tangible
benefits are also expected to be gained from the system such as increased profits as more
vehicles are able to enter and exit which increases usage of the service.
 I. Background of the Systems Study
A. Company Profile
Since its incorporation in 1997, Robinsons Malls has become one of the most
notable shopping mall chains in the country, alongside other companies such as SM
Supermalls and Ayala Malls. It is owned and controlled by the Gokongwei family with
multiple other subsidiaries and companies under the Robinsons Retails Holdings, Inc.
Today, there are fifty-nine (59) locations across the country (Robinsons Malls, 2023) with
four (4) malls in China and many more under construction. It has been a mass favorite
due to the convenience and wide variety of services it offers – entertainment, shopping,
dining, etc. With the growing number of consumers, the company has diversified its
strategies in order to cater these needs of the consumers like supermarkets, hardware
stores, drug stores that are usually located within the premises of Robinsons Malls.

B. Products and Services

1. Leasing
The company mainly creates revenue through its leasing of commercial spaces
within its malls. With its reputation in the industry, the system is very profitable as it acts
as a new commercial hub and market channels where customers shop for their needs and
wants, which entices sellers and businesses to put up a branch in the mall.

2. Parking
In addition to leasing commercial spaces within its buildings, some malls also
come with a parking service and fee. As with other malls, they provide parking spaces in
the busy and congested areas of a city such as Metro Manila for a fee depending on the
duration.

C. Objectives of the Study

The study aims to analyze the current parking system of Robinsons Malls and
attempt to create and propose a more efficient system. Specifically, the paper aims:

● To analyze the current system in connection to traffic and its efficiency

 ● To determine what factors are at work such as technology, manpower, or location
● To propose a new system using existing infrastructure as well as external
opportunities.

D. Scope and Limitations

The study will cover Robinsons Malls across Metro Manila with a parking system
that follows a pay as you enter/exit or similar strategy. Malls that already feature a pay
parking scheme in which fees are paid while the car is still parked will not be included.
The researchers also understand that not all malls have the necessary infrastructure
especially in terms of technology, as such the paper will further be limited to a limited
number of malls.

E. Significance of the Study

The efficiency of the parking system as well as the proposed system will
determine if profitability can be increased further while maintaining customer
satisfaction. The faster the flow of vehicles entering and exiting the parking space, the
higher the chance that more customers will utilize the service. This way, it could
positively affect the people’s attitudes towards the company’s parking system.

F. Methodology
The researchers will utilize a descriptive research methodology which showcases
the current system and its effectiveness which will be used to develop a new and efficient
system. By analyzing how the current parking system works, from start to finish, the
researchers will be able to systematically look for inefficiencies which can then be
corrected in the proposed system. This will be done through researching secondary and
tertiary sources such as journals and news articles. The researchers will also consider
collating customer feedback on various social media platforms of the company. These
posts would mostly feature requests for feedback by the company, thus bypassing the
need to collect quantitative or qualitative data.

G. Problem Statement
 The Customer Dissatisfaction and Traffic caused by Pay-As-You-Exit Parking
Systems and how introducing a Pay-Before-You-Exit Parking System can reduce it.

Specific Problems:
● How dissatisfied are customers with the current system?
● What type of new system can be developed based on the existing infrastructure?
● Will this new system eliminate or significantly reduce the dissatisfaction among
the customers of the service?

II. Detailed Results of the System Study

A. Situational Assessment
1. Company (Image in the market ; Technology and experience ;
Culture ; Goals)

Robinsons Malls has made a name for itself, from the services it offers to the
quality of products it serves. Additionally, Robinsons Malls has continued to renovate its
spaces, thus exciting the crowd with innovations. These are just some of the reasons why
Robinsons Malls is still sought after by the masses. With the increase in shoppers and
mall-goers, the demand for parking spaces has also risen drastically. However, Robinsons
Malls’ way of operating its services for parking spaces could be considered conventional,
wherein an attendant would issue a ticket upon entry and will collect payment upon its
exit. This could be considered outdated, especially with the advent of new technology
and different payment methods – online platforms, machinery, etc. However, one of the
notable experiences by end-users in using Robinsons Malls’ parking is the grace period it
allows, with an estimated time of fifteen (15) minutes. Here, the attendant would not
charge any amount if the end-users could not utilize such service.

2. Customer (Market size and growth ; Market segments ; Buying

process ; etc.)
 The end-users of parking spaces can be categorized into three. First are end-users
whose purpose for parking is to use the features of the mall whether it is for leisure
(shopping and dining) or errands (picture taking, applications, or taxes). Second, are
employees who work in the mall, and tend to stay for long hours. Lastly are the end-users
who use the parking service as nearby establishments are within walking distance.

3. Competitors (Actual or potential ; Positioning ; Market shares ;

Strengths and weaknesses of competitors)

With regards to the different malls that charge their customers for parking spaces,
some of them follow the Pay-as-You-Enter system, wherein they will issue parking
tickets for a flat rate and the end-users will just show the issued parking ticket upon exit.
On the other hand, there are also malls that implement the pay-as-you-exit system,
wherein they offer different rates depending on the time incurred for such parking. In
addition, there are also malls that follow this system; however, it uses more advanced
infrastructure, since they use machines (in the vicinity of the mall or selected area in the
parking vicinity) to collect the payment of the customers, thus providing a better flow for
outbound traffic.

4. Collaborators (Distributors ; Suppliers ; Alliances)

As the system focuses on the parking services provided by the company, there are
no distributors as well as suppliers present in the current system, apart from contracted
maintenance companies handling the parking spaces. As for alliances, the company is
under the Gokongwei umbrella and as such may have alliances with its fellow group of
companies to maintain a synergetic operation.

5. Climate (or Context)

a) Political and regulatory environment
According to the Parking Space Regulation Act of 2018 SBN-2044, an act
regulating the imposition of any fee for the use of parking spaces and facilities located
within shopping malls, hotels, and similar business and/or commercial establishments and
prescribing penalties therefor. (Ejercito, 2018). In addition to this, Senate Bill No. 1920,
also known as the “Free Parking Act”, was filed by Sen. Raffy Tulfo, in order for
establishments to provide free parking for senior citizens, persons with disabilities, and
validated customers (Tulfo, 2023). On the other hand, the Supreme Court has ruled that
mall owners can collect fees for parking space, especially since the National Building
Code does not require mall owners to provide free parking for their customers (Araneta,
2009).

b) Economic environment

In addition to creating jobs and stimulating the economy with the customers
occupying the parking spaces at Robinsons Malls has prioritized sustainability in all of its
planned and current developments. One opportunity is the provision of car-washing
services in the mall's parking lots. The total revenue of Robinsons Malls increased by 58
percent to P13.03 billion in 2022, accounting for 29 percent of the company's
consolidated revenues. (Royandoyan, 2023).

c) Social/Cultural environment

Filipinos are known to be avid shoppers as some of Asia’s largest shopping malls
are located in the country (Kaplan, 2023). These types of lifestyles and consumer habits
increase the customer turnout of the company. With more people flocking to the mall,
there is an increased usage of the parking service which in turn further increases profit.
There is also high demand for parking spaces due to the rising number of vehicles and
limited spaces of parking within urban areas. This is mainly attributed to the poor
transportation infrastructure within Metro Manila, there are 13.4 million trips per day in
total, with public transportation handling 60% of those trips. Yet, just 11.5% of Metro
Manila households have access to private autos, which barely meet 40% of the demand
(Sunio et al., 2023). Along with that, the city is also ranked 58th among the 60 cities
studied (Luna, 2022). This prompts people to use their own vehicles for their daily
transportation.

d) Technological environment (new knowledge that makes

possible new ways of satisfying need; the impact of
technology on the demand for existing products)

(1) Recent technological developments

There are multiple innovations in technology such as the rise of cashless

payments (Pickett, 2002) and advancement of artificial intelligence (Kamaruzaman, &
Nasir, 2021) which can be of use in updating the current system as it presents numerous
opportunities such as providing another payment method or reducing manpower, both of
which can increase profit or efficiency.

(2) Technology’s impact on product/service offering

Cashless payment gives the customer another method of payment and also
reduces the chance that cashiers at the exit will not have enough change. While the use of
artificial intelligence also provides benefits which may include but are not limited to, the
phase-out of physical receipts or the need for attendants.

(3) Impact on cost structure

The impact of implementing a new system with new technology would certainly
increase the fixed costs even as some jobs are dissolved as regular maintenance will need
to be conducted to maintain the quality, and efficiency, and possibly give rise to the
innovation of the technology.

(4) Impact on value chain structure

Upper management will have to revise the overall strategic plan with changes to
the current system. There will be retraining among the staff, testing, and gaining feedback
from the trial stages of implementation.

(5) Rate of technological diffusion

 As seen from examples such as the implementation of GCash and Maya, the
technological diffusion of new technologies is popular among the innovators, up until the
early to late majority so long as the conditions are right. Research by Cacas et. al (2022)
listed factors such as ease of use as well as the social influences which contributed to the
adoption of the mobile wallet application. With this in mind, implementing a new system
that takes into account these factors as well as others is critical in its efficiency and
effectiveness.

B. Systems Flowchart (Cross-functional / DFD)

C. SWOT Analysis
Pay-as-You-Exit System
Strengths Weaknesses

● Accuracy of time tracking ● Time-consuming, as it causes excessive

● More convenient for the drivers delays and traffic for inbound and
outbound vehicles
● Assigning of personnel/attendee to collect
the payments and give changes
○ Possibility of human-related errors
○ Additional costs

Opportunities Threats

● Rise of technological advancements - ● Misplacement or loss of issued parking

new machines and online applications tickets by end-users, thus disabling to
that can collect payments and fees provide proof of entry
○ more efficient and less
time-consuming

D. Situational Appraisal
Operating statements, profit-and-loss summaries, leasing agreements, and parking
rate lists may be requested by appraisers when conducting a situational appraisal for
cashless payment in parking lots.

● Situational factors and perceptions of risk: Mobile payments are becoming more
and more common as we progress toward a cashless society. However, there
might be issues with the security of these exchanges, particularly in parking lots
where fraud and theft are more prevalent.

● Accessibility of payment systems: Access to payment systems can be made easier,

which can boost productivity and quicken transactions. But we must make sure
that everyone can use these systems, even people who do not have access to cell
phones or other digital gadgets.

● Financial repercussions: Businesses and financial institutions may benefit

financially from a cashless world. We must, however, take into account the effects
on people who might not have access to digital payment methods or who would
favor using cash.
 ● Results from the survey: showing that parking lots ought to prioritize QR code
cashless payment using programs like GCash. Users may be interested in adopting
digital payment methods, but we must make sure that they are safe and easy to
use.

● Legal considerations: A number of cities have passed ordinances requiring that

only cash be accepted at checkout. However, these regulations frequently do not
apply to parking lots and garages. We must take into account how these laws will
affect the use of cashless payment methods in parking lots.

(1) clarify and prioritize concerns

● Technical Infrastructure: Limits eligible malls/sites to which the system can be

applied
● Software and platform: There is a need for a platform to which the system can be
implemented

(2) set priorities

● Perform screening of existing malls to determine eligibility

● Look for possible platforms; partnerships

(3) Search for improvement

● Explore the mall app for any possibility of acting as a foundation

E. Cause and Effect

The implementation of a cashless payment system in parking lots should decrease

the amount of traffic caused due to waiting in line for the registrar at the kiosk to give
back some change. This will result in shorter queue times which would make it more
convenient for visitors. However, the implementation of this cashless system will cause
fewer if no personnel needed in order to operate the kiosk, resulting in the companies
being able to lower costs while being able to reduce the number of human errors caused
by mistaken cash counts, loss of coins, etc.

F. Problem Analysis

Some people, especially the elderly, may find it difficult to adopt the technology,
which is one of the main issues with cashless payment in parking lots. Another issue is
fines issued for failure to have enough balance when exiting which creates a roadblock,
preventing other vehicles from exiting.

III. Review of Similar Systems

The pandemic has given rise to new technological innovations such as cashless
payments as well as artificial intelligence (Alghamdi & Alghamdi, 2022). Examples
include the mobile wallet applications of GCash and Maya and temperature sensors
utilizing artificial intelligence in places such as trains or malls. With the pandemic
subsiding, these technological innovations have proven useful outside of their original
purpose. Although cases have been reduced significantly, the new normal established is
one of limited physical contact and distancing. In the context of this study, the current
system of physical contact of payment as well as other problems such as traffic and
customer dissatisfaction can be resolved or at least reduced through the introduction of
new technologies and innovations. In the Philippines, numerous malls have already
implemented such systems, though not standardized. An article by Laurel (2022) cited
companies such as AyalaMalls and Shangri-la Plaza as well as the Mactan-Cebu
International Airport (MCIA) that utilize a license plate recognition system to replace the
old inefficient payment system.

The process is seamless and simple. It utilizes artificial intelligence (AI) to read
and recognize a vehicle’s license plate upon entry. Drivers then proceed to a payment
machine or kiosk in the parking lot or inside the mall wherein they simply input their
plate number and pay the fee. A receipt will then be dispensed containing a QR code.
Upon exit, the said AI automatically opens the barrier once it reads the plate number and
checks if it is cleared in the database. If the AI fails to read the license plate, the driver
can simply scan the QR code. Either way, it smoothes the flow of traffic and saves drivers
time as well as frustration.

Another similar system is used by businesses such as SM Malls which involves a

physical card system. Although less technologically advanced, it still provides a
workaround for the current long-line, cashier at the exit system. Drivers get a card that is
dispensed at the entrance which they then insert at a pay kiosk similar to that of the
system mentioned above, after which they can simply reinsert the card into the barrier
when exiting.

The mentioned systems above are all viable solutions in the case of Robinsons
Malls. Both systems have been shown to increase the efficiency of parking systems as
evidenced by a case study conducted by Nexpa Systems (2022) considering the current
level of technology as well as existing infrastructure. Furthermore, the company has the
capital and overall resources to implement such systems. However, the researchers
believe that there is a more cost-efficient system that can be proposed and implemented
as similar systems present potential problems of their own. The AI system requires an
overhaul of the technical infrastructure of the mall which can be costly, at the same time,
these are usually operated by an outside company putting control out of Robinsons’
hands. If something were to happen to the technology, Robinsons would still have to
coordinate with the other company which can take time as compared to having its own
personnel who are unfamiliar with the software and hardware. The second system
involves a physical card which creates the need to procure it from manufacturers. This
creates a new supply chain that can suffer from issues similar to that of companies such
as AF Payments Inc, operators of the beep card, and partly owned by the Ayala Group,
known rivals of the Gokongwei Group. This can create competition to secure
manufacturers which is why it is not recommended as there are multiple factors to
consider.
IV. PROPOSED SYSTEM
A. Description of Proposed System

In consideration of the similar systems listed previously, the researchers propose a

system consisting of a cashless payment system built upon the existing mall app of
Robinsons Malls. This parking feature of the app will generate a QR code that is scanned
as drivers enter as well as a balance or credit system similar to that of mobile wallet
applications. With enough balance, the same QR code will be scanned as vehicles exit
with their respective balances reduced depending on their duration of stay considering the
current rates of the respective malls. Drivers can manually pay through kiosks as well as
load up their app balance. This will do away with the requirement for cash transactions,
lowering the possibility of theft and enhancing general security. If the app has insufficient
balance as the vehicle enters, an alert will be displayed on the app, notifying the user and
reminding them to decrease the chance of mistakes or accidents.

Drivers paying manually will be able to view their total fee and its breakdown on
the kiosk display before making payment. The machine will also display the duration of
the validity of the paid QR. This will prevent instances of abuse of the system. Afterward,
drivers can also check their transaction history on the app which will list the fees and
their breakdown.

Overall, the proposed system will reduce the need for cash transactions, increase
security, lessen long queues as well as improve customer satisfaction, all while being
built upon existing technical infrastructure.

B. Improvements
Compared to the current cash payment system, there are multiple improvements
as new technologies are introduced such as QR code scanners at the barriers, the
introduction of cashless payment methods, and a reduction in queue times. All these are
crucial for raising customer satisfaction and streamlining user parking.
 C. Time and Resource Costs
1. Gantt

2. Cost/Benefit Analysis

The study was conducted with the objective of improving customer satisfaction as
well as reducing the amount of traffic and congestion. As such, there is insufficient
quantitative evidence as to the intangible benefits that the system may provide. However,
a study by Mangiaracina (2017) concluded that smart parking could help end-users avoid
incurring an estimated eighty-six and a half (86.5) Euros or roughly five thousand three
hundred pesos (5,300). Considering the fact that the Philippines’ situation with regards to
traffic and congestion and end-users may be able to save a higher amount. In addition,
other intangible benefits such as carbon emissions are also reduced as idle times are
decreased.

D. Impacts
1. Organizational Impacts
The inclusion of new technological advancements could create qualitative
changes in the organization. As the machines play an important role in collecting the
payments for the parking spaces, this could possibly decrease the workforce (manpower)
but at the same time, allow the organization to lower costs due to decreasing human
errors.

2. Operational Impacts
a) Flowchart
 With the seamless process of this proposed payment method, this will address the
traffic build-up upon entering and exiting the parking spaces. It would then improve the
flow of the parking spaces, as it would not be congested at the entry and exit points.

3. Equipment Impacts
With the proposed system, there is a need for acquisition of new machinery, in
order to make the proposal operational. Also, the improvement of current equipment
would be deemed necessary, in order to become efficient and compatible with the new
system.

4. Software Impacts
 As the existing mall app serves as the foundation of the new software, it
eliminates the need to create the software from scratch. However, additional software
would be needed to create the payment system. Once implemented, this system will
allow for greater versatility for a small cost.

5. Security and Privacy Impacts

Cashless payment in parking lots has implications for both privacy and security as
some users might be hesitant to use cashless transactions, but contactless payment
systems are generally thought to be safe from fraud as well as health concerns such as
disease transmission. Nevertheless, identity theft privacy issues still exist. The slow
uptake of digital payment technologies may be attributed to privacy and security
concerns. It is crucial to establish a solid theoretical foundation in order to suggest
methodologies for evaluating security-related issues and determining the security
effectiveness of electronic payment systems.

E. Rationale for Recommendations

1. Feasibility Analysis Matrix

As the feasibility analysis matrix takes into account both the proposed system as
well as its alternatives, it will be merged into the System Analyst’s Recommendation
section of the paper.

V. SYSTEM ALTERNATIVES
A. Description of Alternative

As for alternatives for the proposed system, the researchers believe that
implementing one of the similar systems stated would be the best course of action. It can
be modified, by utilizing a barcode or a QR sticker on the windshield of the car. Upon
leaving the parking lot, the car will be scanned once more via the barcode or QR sticker,
deducting the balance in the app. This system, however, would require drivers to secure
their own physical barcode or QR sticker before they are able to utilize its features. This
system is quite similar to the RFID system of national expressways such as EasyTrip or
AutoSweep.

B. Improvements

Similar to the main proposed system, it would significantly reduce queue times
and improve the flow of traffic as these malls are mostly located along high-density roads
and routes.

C. Time and Resource Costs

1. Gantt

2. Cost/Benefit Analysis

Similar to the proposed system, the intangible benefits may outweigh the costs
incurred by the company. However, for this alternative, there is a higher chance of not
achieving break even as there are more costs incurred, particularly with regard to the
supply of stickers or RFID equipment.

D. Impacts
1. Organizational Impacts
 The alternative system would provide changes in the organization, especially
since it involves technological advancements. These changes could possibly create a
better image and experience for the internal and external users of such parking systems.

2. Operational Impacts
a) Flowchart

With this alternative system, this could decrease the workforce, as the collection
of payments is already cashless and machine-operated.

3. Equipment Impacts

This alternative system would also require the acquisition of new equipment and
infrastructures, in order to satisfy and meet the standards of this process. This would
require sensing cameras in order to read the QR code attached to the cars or vehicles.
 4. Software Impacts

Alongside this new equipment, there is also a demand for new software in order
to process payments through this QR code. This would include computer programming
and connection.

5. Security and Privacy Impacts

With the use of a cashless system, it would eliminate the need for the collection of
cash. This removes the security risk that comes with the collection of cash as it allows the
organization to assign and focus its security efforts elsewhere. This can allow the
organization to allocate more time to other areas such as customer service/support.

VI. Proposal Summary

In summary, the proposed system aims to address the rising customer

dissatisfaction with the outdated Pay-As-You-Exit type of parking system, especially how
it creates congestion not only in the mall premises but also affects the traffic flow outside
the mall’s vicinity. This would also maximize the business’ current infrastructures, as it
will involve and improve the current processes; thus making a more effective and
efficient parking system for the end-users.

Another intangible effect of this proposed system is the innovation and customer
satisfaction that it would bring to the end-users, especially if it will make their visit more
convenient and could possibly entice more customers, affecting the company’s total sales
and revenues.

VII. System Analysts’ Recommendation

A. Feasibility Analysis Matrix
 Criteria Weight Proposed AI License Card Payment
System Plate Reader System

Operational 30% 100 100 100

Technical 30% 95 80 85

Economic 30% 95 75 85

Schedule 10% 90 95 85

Total: 100% 96 86 89.5

Ranking 1st 3rd 2nd

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