Table of Contents

1.0 OVERVIEW OF THE ORGANIZATION: MyNews.Com...................................................................1

1.1 Type of Business Organization...............................................................................................1
1.2 Product/ Services, Market & Customers................................................................................1
1.3 Departments / Divisions & their Roles...................................................................................2
1.4 Types of Information Systems in MyNews.com......................................................................4
1.5 Key Organisation Indicators – Information generated by MyNews.com................................4
2.0 ANALYSIS OF CURRENT BUSINESS, ISSUES & COMPETITIVE ENVIRONMENT.............................7
2.1 Current Business Environment...............................................................................................7
2.2 Competitive Environment & SWOT Analysis..........................................................................8
2.3 Recommended Business Analytical Solutions........................................................................9
2.3.1 Descriptive Analytical Solutions...................................................................................10
2.3.2 Prescriptive Analytical Solutions..................................................................................10
2.3.3 Predictive Analytical Solutions.....................................................................................10
2.4 Business Transformation Scope, Architecture & Investment................................................10
2.4.1 Localized Exploitation...................................................................................................11
2.4.2 Internal Integration......................................................................................................11
2.4.3 Business Process Redesign...........................................................................................12
2.4.4 Business Network Redesign.........................................................................................12
2.4.5 Business Scope Redefinition.........................................................................................12
2.5 (BI) Solution/ Expert Analytics Systems: Discussion & Applications.....................................12
2.6 Key Roles/Teams in Business Analytics................................................................................13
2.7 Justification of Team / Roles.................................................................................................14
2.7.1 Project Lead.................................................................................................................14
2.7.2 Data Architect..............................................................................................................14
2.7.3 Product Developer.......................................................................................................14
2.7.4 Analyst.........................................................................................................................14
2.7.5 Reporting Developer....................................................................................................14
3.0 HYPOTHETICAL FUTURE ANALYSIS...........................................................................................15
3.1 Impact of Proposed Analytical Solutions..............................................................................15
4.0 CONCLUSION...........................................................................................................................15
5.0 REFERENCES.............................................................................................................................17

List of Figures

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Figure 1..................................................................................................................................................1
Figure 2..................................................................................................................................................2
Figure 3..................................................................................................................................................3
Figure 4..................................................................................................................................................4
Figure 5..................................................................................................................................................6
Figure 6..................................................................................................................................................7
Figure 7..................................................................................................................................................8
Figure 8..................................................................................................................................................8
Figure 9..................................................................................................................................................9
Figure 10..............................................................................................................................................11
Figure 11..............................................................................................................................................14

List of Tables
Table 1...................................................................................................................................................3
Table 2...................................................................................................................................................5

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3
1.0 OVERVIEW OF THE ORGANIZATION: MyNews.Com
1.1 Type of Business Organization
Founded in Malaysia by Dang Tai Luk, MyNews.com's first outlet was established in
1996 (Tan, 2011). It is a chain store that caters to news material as well as sale of
convenience store items. Being in the trading and service sector, the brand has outlets
throughout the nation with a focus on the urban communities of west Malaysia (Setia City
Tenants, 2013). By the year 1998, the third MyNews.com outlet had been open, and
subsequently, a holding company by the name of Bison Sdn Bhd was formed to manage the
growth and development of MyNews.com (Bison AR, 2016). Therefore, the company is an
investment holding company with operations involved in the following activities:

(i) Owning and operating Malaysia's biggest convenience and print media business.
- MyNews.com.
(ii) Provides bakery services solely for MyNews.com outlets.
(iii) Acts as a source of data for information system support.
(iv) Currently provides management support to a joint body of retail outlets
operating within the Malaysian international airports.

1.2 Product/ Services, Market & Customers

In terms of its current market overview, MyNews.com has launch over 255 outlets by
FYI 16-17, which serve approximately 2.5 million customers on a monthly basis. The
company currently hires 600 employees, and is officially registered as franchise business.
Consequently, it has two (2) licensed stores in Myanmar (Bison AR, 2016). In terms of the
products and services provided by MyNews.com, the company focuses on three (3) basic
categories, and caters to them in the following degree as shown in fig 1.0 below;
Convenience retail products 68%, print media 29% and consumer services 3%.

Fig 1.0 MyNews.com Products/Services Source: Bison

As Malaysia's largest local convenience chain store, the company currently
Annual Report,possesses
2016
Figure 1
an estimated aggregate market share of 8.6% (CIMB, 2016). As such, their core activities

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remain the conceptualisation, development, expansion and management of a chain store
business. Nevertheless, the company lists their principle business activity as investment
holding (Bison Corporate Info, 2016).

1.3 Departments / Divisions & their Roles

Fig 2.0 Company Divisions / Structure

Figure 2

In relation to fig 2.0 above, the structure of the company is designed under a
consolidation. What this implies is that, unlike the usual dependence on middle men;
commonly in the form of distributors; Bison consolidation bypasses this by reaching out to
the largest publishing houses in Malaysia in order to source for press material. As such they
oversee every aspect of their operations internally (Mickey, 2013).

Among the 255 outlets currently operating, 233 outlets bare the brands flagship name
'MyNews.com. Nonetheless, the remaining 22 branches go under various brand names such
as ‘newsplus’, MAGBIT and 'The Front Page'. Furthermore, the company provides a 24 hour,
7 days a week services in 50 of its outlets, while the majority of the others operate either a 12
hour or 16 hour working schedule. In terms of placing, 77% of the company’s outlets are
situated within Kuala Lumpur and Selangor, with the major concentration on areas of high
foot traffic and shopping malls as shown in fig 3.0 below.

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 Fig 3.0 MyNews.com (Bison) Locations

Figure 3

MyNews.com's top management is run under the chairmanship of its independent non-
executive, Mr Ding Lien Bing. Additionally, it possesses a team of highly qualified
professionals who each oversee a specific department and skill. The current managing
director, Mr Dang Tai Luk, has been in charge since the company's establishment in 1996,
and has helped in setting up the organisations computer networking and systems support.
Additionally, he was in charge of developing the company's computer network recovery
plans. Other executives like Mr Dang Tai Wen, who is the company's Chief Operating
Officer (COO) is head of the organisations core operational/business sectors. This entails
leading and controlling outlet operations, business development, and branch launches. Each
key member has a specific role to play in fortifying the company's brand, as such, the table
below shows the departments and their managerial heads.

Table 1.0 Key Management Team / Roles

Table 1
1.4 Types of Information Systems in MyNews.com

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 Information systems have been a big part of the organisations growth. As such, part of
the IT tools utilized for the sake of the publishing division is a sales reporting system which
has been customized to optimize efficiency rates, analyse the movement of products, and
provide decisive market insights in a timely manner. Furthermore, the organisation makes use
of a Warehouse Management System (WMS) which is an IT software that facilitates the daily
operations performed in a warehouse. By using a WMS, the organisation is able to centralize
applications such as identifying inventory levels, as well as determining stock locations and
lifespan. Currently, MyNews.com utilizes a standalone WMS for each of its major branches
(Moore, 2016).

1.5 Key Organisation Indicators – Information generated by MyNews.com

Fig 4.0 Overview of Performance: Outlets & Revenue

Figure 4

OUTLETS

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 In the fig 4.0, at the closing of (Fiscal Year) FY 2016, Bison consolidated had amassed
294, not including outlets gained from a joint venture with WH Smith outlets. Additionally,
Bison launched 69 new branches during this period, as well as shutting down 4 MyNews.com
stores. The analytics of this data showed a 28.4% growth rate over the 229 outlets in the FY
2015. In addition to these figures, Bison consolidation is involved in a joint operation with
WH Smith Malaysia BHD, which is a European convenience chain outlet that specializes in
travel. As such, they possess 9 additional outlets that operate within the international airport.

Name of Outlet No. of Outlets

MyNews.com 270
Newsplus 20
MAGBIT 3
FRONT PAGE 1
294
WH Smith 9
Total 303
Table 2.0 Outlet Data Information

Table 2

REVENUE

In the end of FY 2016, the organisation had a total revenue RM 264.03 million in
comparison to FY 2015 RM 214.55, a growth of RM 46.48 million, which represents a 21.4%
growth rate. In conjunction with these figures, retail sales saw a growth of 21.0%, which is an
increase of RM 40.20 million from the preceding year. The organisations operational income
in FY 2016 was RM 31.86, which is a RM 5.84 million increase from FY 2015's RM 26.02
million. This represented an operational income rate of 22.4%.

From the information gathered by the organisation, the principal drivers for these
growth figures was launching of new outlets during FY 2015 and FY 2016. It was discovered
that all revenue level experienced growth regardless of minimal alterations to the operations;
excluding print media which showcased a decline from 10% to 6% of gross revenue;
concomitant with the current trend of electronic media.

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 Fig 5.0 Overview of Performance: Gross Profit & Profit After Tax

Figure 5

GROSS PROFIT

According to the data in fig 5.0, the organisation was able to acquire a gross profit of
RM94.46 million in FY 2016, which was a RM20.02 million (26.9%) from the previous
year's RM74.44 million. Furthermore, year-on-year comparison reveals gross profit margin
rose from 34.2% to 35% end of 2016. Information gathered from the data show that the
increase in the margins was due to the contribution of a better sales mix in conjunction with
analytic tools in order to monitor and streamline their services. Additionally, the inclusion of
back-end support provided consumers with greater value.

PROFITS

Profits after tax indicate that FY 2016 had a net profit of RM 18.13 million which is a
RM 4.62 million growth in comparison to the previous year's RM 13.51 million.
Furthermore, profits before taxation showed an increase of RM 17.70 million in FY 2015 to
RM 23.62 million in FY 2016. This represented an increase of RM 5.92 million (33.4%).

2.0 ANALYSIS OF CURRENT BUSINESS, ISSUES & COMPETITIVE ENVIRONMENT

2.1 Current Business Environment
The industry outlook for the retail convenience sector still has ample space for growth.
As highlighted from an independent research conducted across the market, the retail

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convenience sector remains to be Malaysia's fastest growing industry with a track record of
13.5% CAGR over the last 8 years. Furthermore, the current market size is between the
ranges of RM1.2bn to RM3.3bn. In addition to that, the industry experienced an exponential
increase of participants in the year 2015 with a total number of outlets estimated at 2,776,
which translate to an 8 year CAGR of 12.9% (Zander, 2016).

Fig 6.0 Market Environment: Size & Growth

Figure 6

The figure above displays the market size and growth on an annual basis. Consequently,
the 2-year CAGR show figures of 9.5% as a result of an increase of 2,776 outlets in 2015 to
3,327 outlets in 2017. In light of this, the forecast indicate retail sales to rise to RM4.2bn in
2017 (2-year CAGR: 12.8%). The principle drivers for the current market growth ias
primarily due the Malaysia's high retail convenience store penetration rate. That being said,
Malaysia's penetration rate is much lower than that of neighbouring countries. According to
additional surveys reveal the Malaysia has a retail convenience penetration rate of 133 stores
per million people as shown in the figure below.

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 Fig. 7.0 Retail Convenience Store Penetration rate

Figure 7

2.2 Competitive Environment & SWOT Analysis

MyNews.com has a total market share of 8.6%, the organisation is Malaysia's largest
local convenience store, as well as the second largest convenience store in general.
Regardless of the highly competitive nature of the retail convenience store sector, the
extensive reach of MyNews.com outlets gives them an advantage among smaller competitors
which possess a maximum of 1%. However, when compared to the larger industry players,
the organisation must go against industry leaders 7-eleven who possess 68.0% market share
with 1883 outlets. Other competitors are All Happy Sdn Bhd, owners of All Happy Mart, as
shown in the figure below.

Fig 8.0 Competitive Environment

Figure 8

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 Analysis of MyNews.com’s current standings indicate that its strengths lie in the fact
that it has optimal branding with the name 'MyNews.com'. Furthermore, it is Malaysia's
second largest convenience chain, behind 7-Eleven. Another strength is the organisations
management and structure, which is led by a team of highly professional executives. The
opportunities that are available for the organisation appear in the form of franchising and
consumer services, in addition to economies of scale. In terms of weaknesses, the current
operations rely heavily on consumer purchasing power, high sales on cigarettes and
dependence of supply of certain goods from foreign suppliers. Subsequently, this leads to
threat within the economy’s buying power, as well as a sudden increase minimum wages/
labour costs. Fig 9.0 shows a graphical representation of the SWOT.

Fig 9.0 SWOT Analysis

Figure 9

2.3 Recommended Business Analytical Solutions

Faced with a highly competitive industry, MyNews.com is pressured to utilize modern
business analytical solutions in order to improve the organisations adaptability, and risk
predictions, as well as monitor their competitors and business environment. Business
analytical solutions involve the iterative applications that use a methodical examination of a
firm's data and key indicators. As such, they are invaluable to companies bound by data-
driven decisions and strategic options (Search Business, 2017).

That being said, business analytical solutions can be classified into two broad
categories, namely, 'Business Intelligence' solutions; and 'Expert Statistical Analysis'
solutions (Beller & Barnett, 2009). In reference to MyNews.com's current market
environment, these two analytical solutions have been suggested to improve overall

9
performance. To be precise, the following business analytical solutions have been
recommended for the organisation;

2.3.1 Descriptive Analytical Solutions

The primary focus of this analytical solution is to provide a clearer understanding of the
company's key performance indicators and current market positioning. It will help facilitate
the preliminary stages of data processing which is then used to establish historical data and
information (Stubbs, 2011). By utilizing such analytical solutions, the organisation will be
able to have data aggregation and mining methods that support highlighting noticeable
patterns and relationships contained within their operations, as well as their competition
across various time periods which would not be visible otherwise. Additionally, with a
descriptive analytical solution to their operations, data visualization during strategic decisions
is possible to provide more insight (Davenport, 2006).

2.3.2 Prescriptive Analytical Solutions

These types of analytical solutions utilize past performance in order to generate
predictions of future outcomes. The purpose of this analytical tool is to provide
recommendation in order to establish how to deal with similar situations when they arrive. As
such, using this solution allows the organisation to always find the best course of action.
Nevertheless, prescriptive analytical solutions makes use of both predictive and descriptive
data to draw up recommendations for a given situation (Bartlett, 2013).

2.3.3 Predictive Analytical Solutions

The third analytical solution is the predictive model. These type of systems are a form
of expert analytics that new and pre-existing data simultaneously. They are effective in
forecasting future trends, market activity and consumer behaviour. The core of predictive
analytical solutions involve analysis of statistical data, automated learning software,
algorithms and the creation of predictive models to serve as a comparison for future
occurrences.

2.4 Business Transformation Scope, Architecture & Investment

The last ten years have provided extensive literature on the benefits of information
technology (IT) and information systems (IS) , and the numerous advantages it gives to
businesses (Venkatraman, 1994). As such, experts agree that IT alters the way companies
conduct business (McFarlan, 1984). Fundamentally speaking, the logical steps for business
development involve the integration of IT and IS with the operations, therefore the following

10
transformation model below has been adapted to Information Technology and Information
Systems.

Fig 10.0 IT-Oriented Business Transformation

Figure 10

The figure above represents the suggested transformational trajectory of the

organisation. This model proposes a five layer hierarchical structure of IT-oriented business
transformations. Nonetheless, this model does not represent a sequential order, as it emulates
an open ended nature of as should all effective strategies (Malone et al., 1987).

2.4.1 Localized Exploitation

This is the first layer of the transformation process and it involves the application of IT
activities within the firm. In light of MyNews.com's current level of information technology,
this would be achieved through the deployment and decentralization of isolated systems such
as; a customer order-entry system; toll-free customer service system; and inventory control
systems. Additionally, localized exploitation would entail the organisation to establish
computer-aided-design/manufacturing (CAD/CAM) to increase the efficiency of
manufacturing cycle time.

2.4.2 Internal Integration

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 The next layer of the hierarchy is primarily an extension of the previous layer.
Nevertheless, the scale of its application differs greatly in the sense that the firm must be able
to leverage their IT/IS abilities and apply them across their entire business network. As such
two types of integration is necessary; (i) Technical interconnectivity (addressing the
interconnectivity of various IS across differing platforms and databases) and Business process
interdependence (Addressing the role that organisational responsibilities play across the
entire business network).

2.4.3 Business Process Redesign

This level can only be fully benefitted if the organisation has effectively mastered the
first two layers. Consequently, it involves the analysis of the organisations current business
environment and reacts on the basis of switching core principles such as centralization vs.
decentralization based on the data collected. Other principles that may be impacted during
this level of business transformation include span of control, line production vs. staff,
authority power balance and style of administration. As such, it is imperative that the firm has
a strong foundation built upon the first two layers (Hammer & Champy, 1993).

2.4.4 Business Network Redesign

The initial three layers focus on the internal environment of the organisations business
transformation, however, the fourth layer focuses on the external interconnections of the
firms IT operations with their suppliers, buyers, and other intermediaries. As such the benefits
of this level is better transaction processing, improved inventory movement and efficient
process linkage.

2.4.5 Business Scope Redefinition

The final layer of business transformation focuses on the issue of what other role the
company can play, as opposed to its current service offerings. As such, it relies heavily on
strategic analysis of the company's historical data. By utilizing its broad network, the firm
will be able to identify profitable extended business networks that align with their level of
IT/IS integration. At this level strategic decisions such as mergers and virtual business
networks are simplified, providing a flexible, fluid corporate scope (Davidow & Malone,
1992).

2.5 (BI) Solution/ Expert Analytics Systems: Discussion & Applications

(BI) Solution – Descriptive Analytics

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 In reference to the descriptive analytical solutions, which is a part of Business
Intelligence (BI) solutions, it involves three primary activities (Bertrand, 2013);

(1) Reporting.
(2) Integration.
(3) Analysing.
Reporting: This is the designing, distribution and control of reports that are
reflective of the collected data, as well as the ease of access to personal who are
required to edit such reports.
Integration: At the lowest levels of data integration, the organisation must deal with
activities such as extirpation, transformation and installation of data into cloud
servers which acts as a central data source. This could be in the form of simple IS
such as intranet sharing files, or as extensive as across multiple cloud servers.
Analysing: A primary example of an IS tool used in achieving this is the Online
Analytical Processing (OLAP) which help organisations create , grow and manage
an aggregated form of data that has been extracted from their cloud servers. This is
also referred to as data mining.

Expert Analytics Systems – Prescriptive Analytics

As mentioned earlier, prescriptive analytical solutions utilize both descriptive and

predictive analysis. Therefore, they can also be used to avoid future mistakes and reduce risks
(Haas et al., 2011). Additionally, by providing an illustrative perspective of the company's
potential decisions, managers are able to identify their specific implications. In practical
applications, such expert analytics systems can operate on a continuous basis and
autonomously update new data to improve the efficiency of predictions. Through the use of
algorithms, and set mathematical rules, these systems predict future outcomes (Thomas &
McMillan, 1987). The application of expert analytics systems involves the following
steps/uses:

(i) Building predictive models

(ii) Examining results of Analysis
(iii) Examination of various model visualizations
(iv) Chart Building

2.6 Key Roles/Teams in Business Analytics

In order for the business analytical solutions to be implemented, the following
roles/teams must be present:

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 2.7 Justification of Team / Roles
2.7.1 Project Lead
Fig 11.0 Analytics
The necessity of a single individual Team / Rolesfor the analytics solution are
taking responsibility
similar to the advantages of having a project manager, namely, aligns the goals of analytical
solution to that of the stakeholders needs. This role also sets the scope, objectives and
timeline for the solution.

2.7.2 Data Architect

The person with this role within the team is responsible for creating the data model and
examining various data sources and networks. The importance of a data model is that it helps
define the scope of the analytical solution.

2.7.3 Product Developer

The responsibilities for this role is to set up a tracking system for the analytical
solutions. As such, it requires the fine-tuning of IS using bits of codes in order to track user
login rates, purchases, customer feedback and other interaction actions that involve data
collection. Examples of these types of roles include web/app developers.

2.7.4 Analyst
After data has been collected, it will need to be processed and analysed. This role
belongs to the analyst. As such, it is an individual who is closely tied to the data being
analysed, for instance a member of the sales or marketing team.

2.7.5 Reporting Developer

This is the final member of the analytical team responsible for drafting out reports
based on the processed data. These reports are used for strategic decisions as well as
stakeholder meetings. They provide a formal presentation of the analytical solutions impact.

3.0 HYPOTHETICAL FUTURE ANALYSIS

In conformity with MyNews.com's aggressive expansion strategies, the implementation
of an IT-oriented business transformation will allow them to grow revenue through increased
consumer services at a lower cost than 'Advertising' and 'Promotion'. Which means that any
revenue generated by sales of products, product listings and product incentives will go
directly to the businesses net profits. As such, a hypothetical analysis envisions
MyNews.com's consumer service turnovers to increase by 30 - 34% during FY 17 - 18. This

14
is based on the assumption that the SSSG (same store sales growth) remains at 3% (BNM,
2016).

3.1 Impact of Proposed Analytical Solutions

The impacts of the proposed analytical solutions are in the improvement experienced
during decision making. This applies to all areas of the organisation as decision based on
large scale operations require the analysis of both internal and external data with can only be
sorted using business analytics (Azvine et al., 2005). Additionally, large volumes of data can
be collected and interpreted on a daily basis, as opposed to the redundancy of using
traditional operation techniques for evaluation. For instance, with the inclusion of localized
exploitation systems, a supplier evaluation model can be created in order to identify possible
areas for improvement. In order to do this however, numerous data elements must be
compiled and processed on a regular basis. Without the implementation of the recommended
solutions, this is impossible (Sahay & Ranjan, 2008).

Subsequently, implementation of the proposed analytical solutions helps set a

measurement standard for the organisation and improves performance within the organisation
through streamlining and minimizing cost of operations (Hedgebeth, 2007). The end product
of such practices is an increased profit margin, however, the success of investment in the
analytical solution is not dependent of the recommended type, but rather, how that
information is put to use (Cai et al., 2009).

4.0 CONCLUSION
In final notes, MyNews.com is run under Bison Consolidation and is Malaysia largest
local convenience chain store, with over 300 outlets nationwide. They currently operate
information systems such as sales report analysis and warehouse management systems
(WMS). However, in order to promote sustained growth, three business analytic solutions
were recommended, namely; Descriptive, Prescriptive and Predictive analytical solutions. In
addition to this, an IT-oriented business transformation based on the Venkatraman
transformation trajectory was suggested. This allows the organisation to have an IT
framework in consolidation with their operations. As such, a team of five major roles was
designed, and the hypothetical benefits of the business analytics have been identified as
improved customer service provision and minimization of operations costs.

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Beller. J, Barnett. A, 2009. Next Generation Business Analytics. Lightship Partners LLC.

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Hammer. M, & Champy. J, 1993. Reengineering the Corporation. New York: Free Press

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