CHAPTER ONE

INTRODUCTION

1.1 Background of the Project

The history of electronic commerce dates back to the 1960s when businesses started
using Electronic Data Interchange (EDI) to exchange business documents electronically. The
development of the internet in the 1990s revolutionized global commerce, leading to the
emergence of online marketplaces and the widespread adoption of e-commerce platforms.
Companies like Amazon and eBay played a pivotal role in popularizing online shopping and
enabling customers to purchase electronics and other products from the comfort of their homes.
In Africa, the adoption of electronic commerce has been steadily growing over the past two
decades. With the increasing availability of internet connectivity and the proliferation of mobile
devices, e-commerce has become a significant driver of economic growth and development.
Countries like Nigeria, South Africa, and Kenya have witnessed a surge in online retail
platforms, offering a wide range of electronic products to consumers across the continent.
These platforms have not only facilitated access to electronics but have also created
employment opportunities and contributed to the formalization of the informal sector. In
Hargeisa, the capital city of Somaliland, the electronics retail sector has experienced significant
growth in recent years. With the increasing demand for electronic devices, there has been a
proliferation of small and medium-sized shops specializing in the sale of electronics. These
shops cater to a diverse range of customers, including individuals, businesses, and educational
institutions. However, many of these shops still rely on traditional manual systems for
inventory management, sales tracking, and customer management. There is a need for a modern
management system that can streamline operations, enhance efficiency, and improve customer
service in the local electronics retail sector. According to Turban et al. (2020), a management
system refers to a set of integrated processes, tools, and technologies designed to facilitate the
planning, organizing, and controlling of organizational operations. It encompasses various
functional areas such as inventory management, sales tracking, and customer relationship
management. Also As per Laudon and Laudon (2016), a management system is a software
application that automates and centralizes core business processes, enabling efficient
information flow and decision-making within an organization. It typically includes modules
for inventory management, sales analysis, and customer support and in the context of retail
management, Kumar and Reinartz (2018) define a management system as a comprehensive
solution that enables retailers to effectively manage their supply chain, inventory, and customer
interactions to achieve operational excellence and maximize profitability. In this project our
purpose is to develop management system for SoCal Electronics entails the design and
 development of a software solution that integrates various functionalities, including inventory
management, sales tracking, customer relationship management, and reporting. The system
aims to automate and streamline key processes, improve operational efficiency, and enhance
the overall management of Socdaal Electronics.
In the operational context, the management system for Socdaal Electronics will
encompass specific features such as real-time inventory tracking, automated purchase order
generation, sales transaction recording, customer database management, and analytics for
Sales performance evaluation. It will be user-friendly, scalable, and customizable to meet the
specific requirements of Socdaal Electronics' operations.
In today's dynamic business environment, effective management systems are crucial for
organizations to stay competitive and meet customer expectations. Efficient management of
inventory, sales, and customer relationships is essential for the success of any retail business,
including electronics shops. Within the African context, the adoption of modern management
systems in the retail sector has been instrumental in driving operational efficiency and improving
customer satisfaction. It has also contributed to the formalization and growth of the retail
industry, creating employment opportunities and fostering economic development. In Hargeisa,
the local context, the electronics retail sector is a prominent contributor to the local economy.
The implementation of a management system for Socdaal Electronics will address the specific
needs and challenges faced by the shop, enabling them to streamline operations, optimize
inventory levels, and provide a better customer experience.
1.2 Problem Statement
The electronics retail sector in Hargeisa, Somaliland, has experienced significant
growth in recent years, with a proliferation of small and medium-sized shops catering to a
diverse range of customers. However, many of these shops still rely on traditional manual
systems for inventory management, sales tracking, and customer management. This reliance
on outdated and inefficient processes hampers the overall efficiency and effectiveness of their
operations. The absence of a modern and integrated management system poses several
challenges for Socdaal Electronics, a prominent electronics shop in Hargeisa. The current
manual processes result in difficulties in accurately tracking inventory levels, managing sales
transactions, and maintaining a comprehensive customer database. These challenges lead to
inefficiencies, such as stock outs or overstocking, inconsistent customer service, and limited
ability to analyze sales performance. Moreover, the lack of real-time data and analytics inhibits
the ability of Socdaal Electronics to make informed business decisions, identify trends, and
respond to changing customer demands in a timely manner. The absence of a centralized
system also limits the shop's ability to streamline operations and optimize resources effectively.
Therefore, there is a pressing need for a modern management system tailored to the specific
requirements of Socdaal Electronics. Such a system would automate and integrate key
processes, including inventory management, sales tracking, customer relationship
management, and reporting. By implementing an efficient and user-friendly management
system, Socdaal Electronics aims to improve operational efficiency, enhance customer
satisfaction, optimize inventory levels, and gain valuable insights for strategic decision-
making. Addressing these challenges and implementing an effective management system will
enable Socdaal Electronics to stay competitive and meet the evolving demands of its customers.
It will also contribute to the growth and development of the local electronics retail sector in
Hargeisa, Somaliland.
1.3 Objectives of the Project
1.3.1 General Objective of the Project
The main objective of this project is to develop a management system for Socdaal
electronics management system in Hargeisa Somaliland

1.3.2 Specific Objectives

1. Optimizing Operational Efficiency
2. Ensuring Regulatory Compliance and Security
3. Tailoring User Experience for local Markets

1.4 Scope of the Project

1.4.1 Content Scope
The content scope of this project encompasses the development and implementation of
a comprehensive management system specifically designed for Socdaal Electronics, an
electronics shop in Hargeisa, Somaliland. The system will focus on key areas of operation,
including inventory management, sales tracking, customer relationship management, and
reporting. It will involve the design and development of software modules that automate and
streamline these processes, providing real-time tracking of inventory levels, accurate recording
of sales transactions, and the establishment of a centralized customer database. The system will
also incorporate reporting and analytics capabilities, offering insights into sales trends, popular
products, and customer preferences. The content scope includes data migration from existing
manual records, testing, training, and ongoing support to ensure a successful transition and
adoption of the management system. It is important to note that the project will not involve
physical hardware installations, network infrastructure setup, or integration with external
systems beyond the specific needs of Socdaal Electronics.

1.4.2 Geographical Scope

The geographical scope of the project is specific to Socdaal electronics in Hargeisa,
Somaliland.

1.4.3 Time Scope

The project's time scope spans a period of Six months, starting in January and
ending in June 2024.
1.5 Significant of the Project
The implementation of a modern management system for Socdaal Electronics in Hargeisa,
Somaliland, is a project of great significance. It aims to bring about a range of benefits to the
business and the local electronics retail sector. By automating and integrating key processes
such as inventory management, sales tracking, and customer relationship management, the
system promises to enhance operational efficiency. This will result in reduced manual errors,
streamlined administrative tasks, and optimized resource allocation. The system's customer
relationship management module will enable Socdaal Electronics to provide personalized
interactions, efficiently handle customer inquiries and complaints, and maintain a
comprehensive customer database. This will lead to improved customer satisfaction and loyalty.
Additionally, the real-time inventory management module will allow Socdaal Electronics to
accurately track inventory levels, prevent stock outs and overstocking, and optimize inventory
control, resulting in cost savings and improved stock management. The reporting and analytics
capabilities of the system will provide valuable insights into sales trends, popular products, and
customer preferences. This data-driven approach will support informed decision-making,
enabling the business to identify growth opportunities, optimize pricing strategies, and make
adjustments based on real-time data. Furthermore, the successful implementation of the
management system at Socdaal Electronics can serve as a model for other businesses in the
local electronics retail sector, inspiring them to embrace technology, improve their operations,
and contribute to the overall growth and competitiveness of the industry. Overall, the project
holds significant promise in terms of operational efficiency, customer satisfaction, inventory
management, data-driven decision-making, and industry advancement.

1.5.1 Definition of Key Terms

1. Management System: A management system refers to a set of integrated processes,
tools, and techniques designed to facilitate the efficient and effective management of an
organization's operations.
2. Inventory Management: Inventory management involves the process of overseeing
and controlling a company's inventory levels to ensure optimal stock availability and
minimize costs associated with inventory holding.
3. Sales Tracking: Sales tracking refers to the systematic monitoring and recording of sales
transactions to gain insights into sales performance.
 4. Customer Relationship Management (CRM): Customer Relationship Management is
a strategy and set of practices aimed at managing interactions and relationships with
customers.
5. Reporting and Analytics: Reporting and analytics involve the process of collecting,
organizing, and analyzing data to generate meaningful insights and reports.
6. Operational Efficiency: Operational efficiency refers to the ability of an organization
to optimize its operations, processes, and resources to achieve maximum productivity
and minimize waste.

1.5.2 Limitations of the project

Despite the significant benefits offered by the implementation of a management system
for Socdaal Electronics, it is essential to acknowledge certain limitations that may arise.
Technical constraints, such as inadequate hardware or software infrastructure, could impede
the smooth implementation of the system. Data migration challenges, including incomplete or
inaccurate data, format inconsistencies, and data cleansing requirements, may complicate the
transition process. Training and adoption pose potential hurdles, as employee resistance to
change or a steep learning curve could affect the speed of adoption and initial productivity.
Customization limitations may restrict the extent to which the system can be tailored to Socdaal
Electronics' unique business processes or specialized needs. Cost considerations, including
upfront expenses and ongoing maintenance and support costs, need to be carefully evaluated.
External integration challenges may arise if the system needs to be integrated with external
systems or third-party platforms. Additionally, scalability should be considered to ensure the
system can accommodate future growth or changes in the business. By recognizing and
addressing these limitations during the project planning and implementation phases, Socdaal
Electronics can better mitigate potential challenges and ensure a successful outcome.
 CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction

This chapter presents a comprehensive exploration of previous studies that directly

pertain to or are closely aligned with the theme underlying the development of software for
businesses specializing in the sale of mobile computers and technology equipment.
The rich tapestry of research in this domain encompasses a diverse array of topics, ranging from
software architecture and functionality to user experience and business performance metrics. By
synthesizing insights from these studies, we aim to distill a nuanced understanding of the
challenges and opportunities inherent in developing software solutions tailored to the intricacies
of the mobile technology sales sector.
2.2 Empirical Review
2.2.1 Optimizing Operational Efficiency

This objective focuses on optimizing business processes and workflows within the
electronic sales industry in Somaliland. By closely examining the functionalities and features of
the System, the objective aims to identify areas where operational efficiency can be improved.
The goal is to provide businesses with actionable insights that will enable them to streamline
their day-to-day operations, ultimately contributing to increased productivity and resource
utilization.
1. Scope of Focus
- This objective centers on improving operational efficiency within the electronic sales
industry.
2. Specific Emphasis
- It targets the functionalities and features to identify areas for operational improvement.
3. Expected Outcome
- The goal is to streamline business processes, resulting in increased productivity and more
effective resource utilization.
4. Relevance to Businesses
- It directly addresses the practical needs of businesses, offering insights that can be applied to
enhance day-to-day operations.
5. Long-term Impact
- A more efficient operation can contribute to sustained business growth and competitiveness
in the Somaliland market.
2.2.2 Tailoring User Experience for Local Markets

This emphasizes the importance of user experience customization for the local market
context. By conducting user studies and feedback sessions specific to Somaliland, the objective
aims to enhance the user interface and overall experience System. Through a deep
understanding of user preferences, cultural nuances, and market dynamics, the system can be
refined to better meet the needs of businesses in the Somaliland electronic sales sector,
fostering greater user adoption and satisfaction.
1. User-Centric Approach
- This objective focuses on customizing the user experience for the specific needs and
preferences of users.
2. Research Methodology
- It involves user studies and feedback sessions to gain a deep understanding of user
preferences, cultural nuances, and market dynamics.
3. Improving Adoption Rates
- The aim is to enhance user satisfaction and adoption rates by aligning the system with the
expectations of the local user base.
4. Cultural Sensitivity
- Recognizing the importance of cultural factors, this objective ensures that the system
resonates well with the local market.
5. Competitive Edge
- A user-friendly and culturally attuned system can provide a competitive advantage by
meeting the unique needs of Somaliland businesses.

2.2.3 Ensuring Regulatory Compliance and Security

This objective focuses on addressing critical aspects of software development, including

compliance with local regulations and ensuring robust security measures. By conducting a
thorough assessment of the System's compliance with Somaliland's business regulations and
data security standards, this objective aims to provide businesses with a trustworthy and legally
compliant software solution.
The goal is to instill confidence in users regarding the system's adherence to the legal and
security frameworks relevant to the Somaliland business environment.
1. Legal Compliance Focus
- This objective prioritizes ensuring business regulations.
2. Security Measures
- It includes a thorough assessment of the system's security measures to safeguard sensitive
business data.
3. Trust and Confidence
- The objective aims to instill trust and confidence among users by demonstrating adherence
to legal and security frameworks.
4. Risk Mitigation
- By addressing compliance and security, the objective contributes to mitigating potential
legal and security risks for businesses.
5. Long-term Stability
- A legally compliant and secure system ensures long-term stability and reliability for
businesses operating in Somaliland.

2.3 Summary

The literature review chapter provides a comprehensive exploration of previous studies directly
related to the development of software for businesses specializing in the sale of mobile
computers and technology equipment.
This thematic exploration encompasses a broad spectrum of topics, from software architecture
and functionality to user experience and business performance metrics. By synthesizing insights
from existing studies, the chapter aims to distill a nuanced understanding of the challenges and
opportunities inherent in developing software solutions tailored to the intricacies of the mobile
technology sales sector.
The review sets the stage for empirical investigations, with a focus on optimizing operational
efficiency, tailoring user experience for local markets, and ensuring regulatory compliance and
security.

The empirical review section delves into specific objectives aligned with the development of
the "System" for the electronic sales industry in Somaliland. Objective One concentrates on
optimizing operational efficiency by closely examining system functionalities to identify areas
for improvement, ultimately contributing to increased productivity and resource utilization.
Objective Two emphasizes the importance of user experience customization for the local
market, conducting user studies to refine the system according to user preferences and cultural
nuances.
Lastly, Objective Three addresses critical aspects of software development, including
compliance with local regulations and robust security measures, aiming to instill confidence in
users regarding the system's adherence to Somaliland's business environment. Together, these
objectives represent a holistic approach to enhancing the software's functionality, usability, and
compliance within the unique context of the Somaliland electronic sales sector.

2.4 References:
1. Global: Chen, J., & Zhang, D. (2010). An empirical study of e-commerce adoption in
businesses in the People's Republic of China: An extended technology acceptance model.
Information & Management, 47(4), 228-236.
2. Regional (Africa): Kamdjoug, J. R., & Fokam, Y. (2019). E-commerce adoption in
Africa: A literature review. African Journal of Science, Technology, Innovation and
Development, 11(4), 511-527.