ISP581 – ENTERPRISE INFORMATION SYSTEMS

AL-IKHSAN SPORT

SEMESTER MARCH – AUGUST 2023

Group: T5CS2644B2

Submit To:
MADAM SITI NURUL HAYATIE BINTI ISHAK

Prepared By:
Group Members:
STUDENT ID
AIMAN FAIZ BIN RAHMAT 2021839192
MUHAMMAD NASRUN BIN MOHD NIZAN 2021829168
MUHAMMAD ZUL FADHLI BIN ABDUL HAMID 2021485614
MUHAMMAD FATHI THAQIF BIN MOHD TABRANI 2021609404
MUHAMMAD LUKMAN HAKIM BIN MOHD NOOR 2021850086

Submission Date: 24.05.2023

Table of Contents
1. Introduction....................................................................................................................... 1
1.1 Background of the Company......................................................................................... 1-4
1.2 Porter’s Value Chain ......................................................................................................... 5-6
1.3 Business Process Activities ................................................................................................7
2. Business Requirements and Solutions ................................................................
2.1 Proposed Area of Improvement .........................................................................................
2.2 Demonstration of ERP Solutions ........................................................................................
3. Conclusion.............................................................................................................................
Total marks ................................................................................................................................

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1. Introduction
1.1 Background of the Company

As sports fans, we all know that Al-Ikhsan Sports Sdn Bhd is Malaysia’s No. 1 sports retailer
which is primarily involved in the retail of sports footwear, apparel and equipment. In 1993, a married
couple, Tuan Haji Ali Hassan and Puan Marina Abu Bakar had established a quaint 150sqft store, it
was Al-Ikhsan Sports in Holiday Plaza, Johor Bahru. The company has evolved to a Private Limited
Company from a sole proprietorship enterprise now known as Al-Ikhsan Sports Sdn Bhd. The
business has grown tremendously and currently has over 125 stores located throughout Peninsular
Malaysia.
The company has grown from a singular sports convenience store to a multi-category sporting
goods giant with a clear segmented strategy, Al-Ikhsan addresses consumers and sports lover across
various income groups by offering global brands such as Nike, Adidas, Puma etc at an affordable
price. With over 125 stores nationwide, the operation hours of Al-Ikhsan varies according to the
designated store location, because it is a commercial store - the operation hours are from 10a.m. to
10p.m. The company brings a sports fan regardless of any gender or age a wide variety of quality
sporting goods especially for athletes such as football accessories, running shoes, sportswear from
various global brands. Al-Ikhsan also brings out lifestyle products such as sneakers, pants, quality
jersey, and caps, so customers can purchase for a more suitable everyday-wear.
Al-Ikhsan has also developed an online store for customers to enjoy browsing and shopping
at the comfort of their own home. The customers can purchase the equipment or the items through
the online platform provided such as ‘Shopee’ or their own official website. At every end of the year,
Al-Ikhsan would have a major end-of-the-year sale for items on clearance to make space for incoming
new items to the store. Discounted items in-store and website would usually be different, so customers
are advised to scout on both physical and online stores for their desired purchase. Prices after
discounts also varies from in-store and website, hence some items are most likely to be sold out online
because customers are more aware of the sales via online rather than in-store.
Ali Hassan Mohd Hassan is the owner of the Al-Ikhsan Company chain which is a company
that provides sports equipment and is closely related to world sports arenas such as the English
Football League, the European Cup (Euro), Formula One (F1) etc. Most of the goods sold at aL-

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ikhsaN are not accessible in other stores. The product variety is extremely varied and reasonably
priced. Sports shoes and other equipment worn by notable international footballers are also available
at this site. Every item that is released in Europe is accessible on AL-ikhsaN the same day.
In 2010, al-ikhsaN created Al-Ikhsan Sports Girl, a sports store for women, because female
clients desire high-quality clothes and sports equipment from prominent brands. Nike, Adidas, Puma,
Reebok, Umbro, Lotto, and Diadora are among the most popular brands available.

Mission Vision and Objectives

Mission
 To promote an active and healthy lifestyle by providing affordable and quality sports products.
 To dominate the sporting goods landscape by engaging deeper and creating strong ties over
20 million sports lovers of Malaysia.
 To be the preferred choice for customers seeking sports equipment, apparel, and accessories
in Malaysia.

Vision
 To be a world class preferred Multi-Brands stores in South East Asia.

Objectives
 The core purpose of Al-Ikhsan Sports is to keep Malaysia fit and active by making sports
affordable for all.
 To guarantee that our consumers receive services from a large range of top-notch companies
that are also current.

Organization Chart

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Product and Services
Al-Ikhsan Sports offers a wide range of products and services related to sports and fitness. Their
product offerings include:
• Sports Apparel
Clothing for various sports, including jerseys, shirts, shorts, pants, and tracksuits.
• Footwear
Athletic shoes for different sports, such as running shoes, football boots, basketball shoes,
and more.
• Sports Equipment
Equipment for sports like football, basketball, badminton, tennis, swimming, and more. This
includes balls, rackets, bats, gloves, protective gear, and training equipment.
• Accessories
Sports accessories like bags, backpacks, socks, headbands, wristbands, water bottles, and
sports-related electronics (e.g., fitness trackers).
• Customization Services

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 Al-Ikhsan Sports provides customization services such as jersey printing and shoe
personalization to cater to individual preferences.

The company also actively engages with customers and supports the sports community through
sponsorships, events, and promotions. They aim to create a positive and inspiring sports retail
environment for customers of all ages and sporting interests. Al-Ikhsan Sports offers a wide range of
products and services related to sports and fitness. Their product offerings include athletic footwear,
apparel, equipment, and accessories for various sports such as football, basketball, running,
badminton, tennis, and more. They collaborate with renowned sports brands to ensure the availability
of high-quality products from both local and international brands. Al-Ikhsan Sports also provides
customization services like jersey printing and shoe personalization to cater to individual preferences.

Additionally, Al-Ikhsan Sports frequently organizes sports-related events, sponsorships, and

promotions to engage with customers and promote active lifestyles. They actively support local sports
teams and athletes, contributing to the growth and development of sports in Malaysia. Overall, Al-
Ikhsan Sports has established itself as a trusted brand in the sports retail industry, with a mission to
provide affordable sports products while encouraging and inspiring people to pursue their passion for
sports and fitness.

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2. Porter’s Value Chain

The primary activities of Al-Ikhsan Company are:

• Inbound Logistics. Al-Ikhsan Company sources its products from a variety of suppliers,
including Adidas, Nike, Puma, Asics, and Under Armour. The company has a team of buyers
who work with suppliers to negotiate prices and ensure that the products meet Al-Ikhsan
Company's quality standards. Al-Ikhsan Company's inbound logistics function is important
because it ensures that the company has the right products in the right quantities at the right
time. This helps the company to meet customer demand and avoid stockouts.

• Operations. Al-Ikhsan Company has a network of warehouses and distribution centres that are
used to store and distribute its products. The company also has a team of employees who are
responsible for packing and shipping products to customers. Al-Ikhsan Company's operations
function is important because it transforms the inputs into the final product or service. This
includes activities such as manufacturing, assembly, and packaging.

• Outbound Logistics. Al-Ikhsan Company offers a variety of delivery options to customers,

including in-store pickup, home delivery, and express delivery. The company also has a team
of customer service representatives who are available to answer customer questions and
resolve any issues. Al-Ikhsan Company's outbound logistics function is important because it
ensures that the products are delivered to customers in a timely and efficient manner. This
helps the company to meet customer expectations and improve customer satisfaction.

• Marketing and Sales. Al-Ikhsan Company uses a variety of marketing and sales channels to
reach its customers. The company has a website, a mobile app, and a network of retail stores.
Al-Ikhsan Company also sponsors a few professional sports teams in Malaysia. Al-Ikhsan
Company's marketing and sales function is important because it creates demand for the
company's products or services. This helps the company to increase sales and profits.

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 • Service. Al-Ikhsan Company offers a variety of services to its customers, including
installation, repair, and maintenance. The company also has a team of customer service
representatives who are available to answer customer questions and resolve any issues. Al-
Ikhsan Company's service function is important because it helps to keep customers happy and
satisfied. This helps the company to build customer loyalty and repeat business.

The support activities of Al-Ikhsan Company are:

• Procurement. Al-Ikhsan Company has a team of buyers who work with suppliers to negotiate
prices and ensure that the products meet Al-Ikhsan Company's quality standards. Al-Ikhsan
Company's procurement function is important because it helps to keep costs down. This helps
the company to be more competitive and profitable.

• Human Resources Management. Al-Ikhsan Company has a team of human resources

professionals who are responsible for recruiting, hiring, training, and compensating
employees. The company also offers a variety of employee benefits, such as health insurance,
retirement plans, and paid time off. Al-Ikhsan Company's human resource management
function is important because it helps to attract and retain top talent. This helps the company
to be more successful in the long run.

• Technology Development. Al-Ikhsan Company has a team of technology professionals who

are responsible for developing new technologies that can be used to improve the company's
operations. The company also invests in research and development to create new products and
services. Al-Ikhsan Company's technology development function is important because it helps
the company to stay ahead of the competition. This helps the company to be more innovative
and profitable.

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• Firm Infrastructure. Al-Ikhsan Company has a team of executives who are responsible for
setting the company's strategy, managing its finances, and ensuring that the company complies
with all applicable laws and regulations. Al-Ikhsan Company's firm infrastructure function is
important because it helps the company to operate effectively and efficiently. This helps the
company to be more successful in the long run. By improving its performance in the primary
and support activities, Al-Ikhsan Company can increase its competitive advantage and
improve its profitability.

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3. Business Process Activities
Flow Chart
START

CUSTOMER
PRODUCT VIEW NO

YES

VERIFY
PURCH

ADD PURCHASE TO
CART

MAKE PAYMENT

RECEIVE INVOICE
AND ITEM

END

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4. Problem with Current Business Process which Required an
Improvement

Al-Ikhsan's current business process is not able to keep up with the company's growth. The company
is expanding rapidly, but its systems and processes are not able to support this growth. This is leading
to problems such as:

• Inefficient inventory management: Al-Ikhsan does not have a good system for tracking
inventory levels. This is leading to stockouts and overstocking, which is costing the company
money.
• Poor customer service: Al-Ikhsan's customer service is not up to par. Customers are often
having problems with orders, returns, and exchanges.
• Lack of data-driven decision making: Al-Ikhsan does not have a good system for collecting
and analyzing data. This is making it difficult for the company to make informed decisions
about its business.

Al-Ikhsan needs to improve its business processes in order to keep up with its growth. The company
needs to implement new systems and processes that will help it to improve its inventory management,
customer service, and data-driven decision making.

Here are some specific improvements that Al-Ikhsan could make:

• Implement a new inventory management system: This would allow Al-Ikhsan to track
inventory levels in real time and prevent stockouts and overstocking.
• Hire more customer service representatives: This would help Al-Ikhsan to reduce wait times
and improve the overall customer experience.
• Implement a data analytics platform: This would allow Al-Ikhsan to collect and analyze data
about its customers, products, and sales. This information could then be used to make better
decisions about its business.

By making these improvements, Al-Ikhsan can improve its business processes and keep up with its
growth. This will help the company to remain profitable and competitive in the future.