misit training july 2012. introduction building master files software contents hardware web sites...

MISIT Training MISIT Training July 2012July 2012

IntroductionIntroduction

Building MasterBuilding MasterFilesFiles

Software Software

ContentsContents

HardwareHardwareWeb sitesWeb sites

Data exchangeData exchange Documents & ProcessDocuments & ProcessFlowFlow

ActivitiesActivities

MISIT

1. Introduction1. Introduction

DescriptionDescription

Managing Information System and Information Technologies

• Software• Hardware• Networking• Communications

Areas of responsibilities

• Staff Training• Reporting• E-Commerce• Information protection

1. Introduction1. Introduction

Overall Ability to Overall Ability to ManageManage

2. Software2. Software

Choosing softwareChoosing software

A. Two Software market A. Two Software market typestypes

• Missing middle price level software solutions. The only players are SAP, Navision, Scala, etc;

• Missing computer literacy - Good software solution can only confuse the staff and the operations. High percentage of failed installations;

• Poor telecommunication infrastructure;• Educated and experienced IT professionals;

1. NOT DEVELOPED1. NOT DEVELOPED


A. Two Software markets A. Two Software markets typestypes

• Many middle price level software solutions with good support and low cost of ownership;

• Good level of computer literacy;• Well developed communication

infrastructure and IT services;• One area specialized IT professionals;

2. COMPETITIVE2. COMPETITIVE




Which type is your Which type is your software market ?software market ?


B. Software solutionB. Software solution

• Coverage of the minimal software requirements and functionalities;

• POS module with simple interface;• Simple Back Office module for TM, Warehouse,

Purchasing and Payments;• Low hardware and communication requirements;• Generic database type: DBF, Paradox, Access,

etc.

IF NOT DEVELOPED SOFTWARE MARKETIF NOT DEVELOPED SOFTWARE MARKET



C. Software solutionC. Software solution

• Software with good coverage of the OFFICE 1 Software requirements;

• Acceptable cost of ownership;• Small improvements required;• Low or Zero cost of the improvements;• Usually high hardware and communication

requirements;• SQL database type: MS SQL, Oracle, etc.• Maximum 2 months for final version;

IF COMPETITIVE SOFTWARE MARKETIF COMPETITIVE SOFTWARE MARKET



1.1. Review the document OFFICE 1 Main Software Review the document OFFICE 1 Main Software Requirements. Update it if needed for your Requirements. Update it if needed for your country;country;

2.2. Send these requirements to selected list of Send these requirements to selected list of software companies;software companies;

3.3. The software solutions which cover the largest The software solutions which cover the largest percentage of the requirements are invited to percentage of the requirements are invited to present their software;present their software;

4.4. Schedule a meeting for Manager with 6 to 8 Schedule a meeting for Manager with 6 to 8 companies being considered;companies being considered;

D. StepsD. Steps



5.5. Second meetings must be scheduled with 2-3 Second meetings must be scheduled with 2-3 companies for detailed study of their solutions;companies for detailed study of their solutions;

6.6. During the second meeting study in depth:During the second meeting study in depth:• The functionality, technology, hardware The functionality, technology, hardware

requirements and software requirements;requirements and software requirements;• Amount of improvements required;Amount of improvements required;• Time required software to be operational;Time required software to be operational;

7.7. Negotiate for the price and try to act as dealer Negotiate for the price and try to act as dealer between the software house and the Subs;between the software house and the Subs;

D. Steps (continued)D. Steps (continued)



1.1. Requirements coverage without Requirements coverage without improvements;improvements;

2.2. Coverage of all levels of the organization;Coverage of all levels of the organization;3.3. Time required for the improvements – not Time required for the improvements – not

more that 45 days;more that 45 days;4.4. Hardware requirements;Hardware requirements;5.5. Communication requirements;Communication requirements;6.6. Experience and size of the software Experience and size of the software

company;company;7.7. Initial price;Initial price;

E. Decision makingE. Decision making

Key pointsKey points



E. Decision making E. Decision making (continued)(continued)

7.7. Licensing policy;Licensing policy;8.8. Annual maintenance fee;Annual maintenance fee;9.9. Implementations in similar companies;Implementations in similar companies;10.10. Integration with E-Commerce;Integration with E-Commerce;11.11. Number of OFFICE 1 staff required to Number of OFFICE 1 staff required to

support the software;support the software;12.12. Modifications costs and other costs;Modifications costs and other costs;




F. Major milestone datesF. Major milestone dates

• 1 month – Initial installation review of the 1 month – Initial installation review of the functionality;functionality;

• 2 months - Import/Creation of Master files in 2 months - Import/Creation of Master files in the software; Placing orders to vendors;the software; Placing orders to vendors;

• 1 month – Gate check, Reception of the 1 month – Gate check, Reception of the goods, Multiple locations; Reports.goods, Multiple locations; Reports.

• 2 weeks – Full functionality;2 weeks – Full functionality;

(all listed dates are in respect of the soft opening date)(all listed dates are in respect of the soft opening date)


3. Web sites3. Web sites

A. Two main partsA. Two main parts

Franchise/Corporate InformationFranchise/Corporate Information

A. Two main partsA. Two main parts


E-CommerceE-Commerce


B. Franchise informationB. Franchise information

• Present OFFICE 1 as international chain of good looking stores entering in the country;

• Main tool for franchisee recruitment;

• Good tool while negotiating with vendors;

• It is recommended to launch this part - 2 months before the launch. International template can be used.

Example: http://website.office1international.com

Company Company InformationInformation


B. Franchise informationB. Franchise information

• Find a store section;• Who is OFFICE 1? (map how to get to the office);• OFFICE 1 worldwide;• What is franchise;• Franchise support;• Franchise financial;• FAQ;

Sections to be included

• Best candidates profile;• Best store location;• Available locations – map;• Franchise application form;• Vacancies section;• CV submission form;• Gallery;• Press releases;

Example: http://website.office1international.com

Company Company InformationInformation


C. E-CommerceC. E-Commerce

1.1. Review the document OFFICE 1 Web Site Review the document OFFICE 1 Web Site Requirements. Update it if needed for you Requirements. Update it if needed for you country;country;

2.2. Review currently available OFFICE 1 websites Review currently available OFFICE 1 websites by following the links at: by following the links at: http://www.office1international.com/http://www.office1international.com/

3.3. Contact local web design studios if the Contact local web design studios if the company which will provide the software can company which will provide the software can not provide E-Commerce. Send OFFICE 1 not provide E-Commerce. Send OFFICE 1 requirements for quoting.requirements for quoting.

E-Commerce E-Commerce TemplateTemplate


C. E-Commerce C. E-Commerce (continued)(continued)

1.1. Easy for navigation and search website;Easy for navigation and search website;

2.2. Clean and simple design integrating OFFICE 1 Clean and simple design integrating OFFICE 1 corporate identity;corporate identity;

3.3. Integration with the main software;Integration with the main software;

4.4. Detailed information and up-to-date for Detailed information and up-to-date for products and services;products and services;

5.5. Reach of pictures;Reach of pictures;


E-Commerce E-Commerce TemplateTemplate


C. E-Commerce C. E-Commerce (continued)(continued)

6.6. Anonymous browsing, placing orders without Anonymous browsing, placing orders without registration;registration;

7.7. Exclusive online promotions and seasonal Exclusive online promotions and seasonal promotions;promotions;

8.8. Low cost maintenance;Low cost maintenance;

9.9. Possibility for improvements;Possibility for improvements;

10.10. Technology used;Technology used;


E-Commerce Template and E-Commerce Template and SourceSource


E. Web site addressE. Web site address

• Standard extensions are assigned to every country;

• Find out which one is assigned to your country from the web site: http://www.iana.org/root-whois/;

• Immediately register the names: office1.xx and office1superstore.xx, where xx is the extension for your country;

Domain Domain RegistrationRegistration

4. Hardware4. Hardware

A. Types A. Types

• Servers• Workstations / Laptops• Printers• Internet sharing devices• PBX – Phone switch board• Phones & Faxes

Company IT Company IT HardwareHardware

B. Servers B. Servers Headquarters

• Make sure the hardware you buy will be powerful enough to handle at least 2 years of our operations;• Big and reliable storage - used to store all files of the users;• Backup devices;• UPS;


Company IT Company IT HardwareHardware

B. Servers B. Servers

Stores and Warehouse

One of the workstations in the store and the warehouse to be used as server, in addition to other workstations:

• Reliable store – Storage Mirror;• Backup device;• UPS;


Satellite Satellite HardwareHardware

C. Workstations / C. Workstations / Laptops Laptops

Four main types of workstations:

• GM, MISIT Manager, DTP;• Purchasing, TM Manager, Marketing Manager;• Accounting, Sales, TM agents, Stores, Warehouse;• POS (Point of sale);Note: Initially only the GM needs laptop.


Hardware Needs by Hardware Needs by AreaArea

C. Workstations - POS C. Workstations - POS

The POS workstation is nothing different than normal computer additionally equipped with:

• Receipt printer;• Barcode scanner;• Client display;• Cash drawer;

Never buy equipment used for the hypermarkets and food stores;


Retail Retail HardwareHardware


Receipt printer

Recommended brands: Epson, OKI, Citizen, Datex


Retail Retail printersprinters


Barcode scanner

Recommended brand: Metrologic


Retail and Warehouse Retail and Warehouse scannersscanners


Client display(optional)

Use normal keyboards


Retail Retail peripheralsperipherals


Cash drawer

or

Cash box (integrated in the

furniture)


Retail Retail peripheralsperipherals

D. Printers D. Printers

Headquarters / TM:

• Network laser printer – 7 000 ÷ 10 000 (pages monthly);

Warehouse:

• Laser printer – Documents, barcodes and labels printing; • Labels printer – optional;

Always choose a printer brand and model for which OFFICE 1 has compatible OEM consumables.


Printer supply Printer supply costscosts

D. Printers (continued)D. Printers (continued)

Stores:

• Laser printer – Labels, barcode and documents printing;• Dot matrix – Invoice printing (if required);• Receipts printing – replacement of the cash register, must be supported by POS software;


Peripheral supplies and Peripheral supplies and softwaresoftware

E. Internet sharing E. Internet sharing devices devices

Usually these devices are called routers.

The router can be either computer or special equipment. Usually these devices also include the functionality of firewall.

The firewall is needed to protect your network from possible intruders, viruses and spy.


RoutersRouters

E. Internet sharing ... E. Internet sharing ... (cont)(cont)

Headquarters – two options:• Internet server – Linux/Unix based recommended;• Router – including firewall and IPSEC VPN functionality;

Stores:• Modem or SOHO Router – based on the connection type and cost. Frequently the routers are provided by the ISP;

Recommended brands: ZyXel, D-Link, Linksys, Netgear, Cisco.


RoutersRouters

F. PBX - Phone switch F. PBX - Phone switch boardboard

PBX is required for each of the following locations:

• Headquarters;• Big stores with more than 10 workstations;• TM locations with more than 6 TM agents;


CommunicatioCommunicationsns

F. PBX - Phone switch F. PBX - Phone switch boardboard

Selection criteria:

• Support PSTN, ISDN;• Unified Call Distribution;• Call Routing;• Certified and supported by the telecommunication companies;• Cheap extras and expansion;• Low cost of maintenance;• VoIP – optional;• Recommended brands: Panasonic, LG, Samsung, Avaya, Siemens, Cisco;



G. Phones & FaxesG. Phones & Faxes

Telemarketing phones:

It is recommended the telemarketing to use digital phones which display client phone number. It possible they must be equipped with headsets.

Fax machine:

• Plain Paper Fax Machine – cheap consumables, no cartridges and toners;• Laser Fax – usually having additional functions;• Never buy film or ink based fax machines;



Head Office

Sub Franchisee 1 Sub Franchisee 2

Master Data creation

Item & Price data download

Item & Price info regular update Logistic Supplier

/ Warehouse

Own Store Own Store Fr. Store Fr. Store Fr. Store

Customer fileUploadAccounting

Information Upload

Vendor information conditional download

Purchase Transactions

Upload & Download

Accounting / Payroll / Assets

Marketing campaigns & promotions

Purchase/ Sales Docs

Upload & Download

Sales Transactions Upload

Company own stores

Analysis and Reporting

Payments & Collections

Sales Transactions

Data Data ExchangeExchange

5. Data 5. Data ExchangeExchange

Store / TM

Sales process Sales process flowflow

Quote

Order

Delivery note

Payment

Ticket/Invoice

Four way of communication

Five documents/stepsClient requests Quote

TM creates Quote

Client places Order based on

the Quote

InventoryQuote is converted to

Customer Order

The system marks quantities as

pending issues

Warehouse person collect

the goods

Warehouse person prepares

Delivery Note or Invoice

The goods are shipped

Client pays the Invoice

Inventory is decreased

6. Doc flow6. Doc flow

Fr. Store

Purchasing process Purchasing process flowflow

Contract

Order

Delivery note

Payment

Invoice

Six documents/steps

Discrepanciesresolution

HO negotiate Prices and Del. Conditions

Vendor

Head OfficeItem Master

The HO negotiates with the vendor

HO and Vendor sign Contract

Purchasing Dep. updates Item

Master

Item & Price info regular update

Own Store

Regular update + transformation of

the prices for Franchisee


Franchisee places direct orders to Vendors

Fr. Store

Franchisee purchasing process Franchisee purchasing process flowflow

Contract

Order

Delivery note

Payment

Invoice


Inventory

History

Logistic Supplier/ Warehouse

Head Office

Franchisee Store place order to WH/LS

Analysis of Sales History, Inventory, Pending Issues and

Entries

Based on the analysis a

Purchase order is created

The order is forwarded to HO for approval in

respect of Credit Control

HO forwards approved Order to

LS / WH

LS/WH releases the goods with Del.

Note or/and Invoice

Any differences are resolved with Discrepancies

Resolution Document

Fr. Store can place Orders directly to

Vendors

Vendor

Payment is made with

HO

Vendor delivers the goods with Invoice

Any Discrepancies are resolved

directly with the Vendor

Any rebates & bonuses will be paid to

HO based on agreements

Payment is made directly

with the Vendor


Fr. Store


Contract

Order

Delivery note

Payment

Invoice


HO – Order, Vendor delivers directly to the Stores

Vendor

Head OfficeItem Database

HO analysis sales history and

inventory in every location

Own Store Logistic Supplier/ Warehouse

HO releases orders with instructions with the

quantities to be delivered to every location

HO advise the stores for the Orders

Vendor delivers the good

separately to every location


Fr. Store


Contract

Order

Delivery note

Payment

Invoice


HO is responsible for the inventory of LS/WH

Vendor

Head OfficeMaster DB

HO analysis sales history and inventory

of LS/WH

Own StoreLogistic Supplier

/ Warehouse

HO releases Purchase Order with respect of the delivery frequency and processing time of the

Vendor

Vendor delivers the goods

Two type of Vendors:

• Domestic• International

Customs clearance is done if Import

Labeling, Quality check, Barcodes

Deliveries to Own Stores are always done

with Document for Internal Movement


Documents Documents processingprocessing

Quote

Order

Delivery note

Payment

Ticket/Invoice

1

2

3

4

5

Retail

Full Sales Process

Delivery and Invoicing in same time

Delivery, Invoicing & Payment at same time

• The Sales & Purchase processes can start with any document;

Sale without QuoteThe Client directly places

Order

• Several steps can be combines in one;• Please review and study following examples:

6. Doc Flow6. Doc Flow

Quote

Ord

er

Del. N

ote

Invoic

e6. Doc Flow6. Doc Flow

Activities for Purchase and SalesActivities for Purchase and Sales documents include items and quantity follow documents include items and quantity follow

upup

01001077010001001100012012

BIC Perm. Market 8mm BLKBIC Perm. Market 8mm BLK

7. Master files7. Master files

Item codes & descriptionsItem codes & descriptions

Item file Item file setupsetup

Item codesItem codes

• Easy to Easy to rememberremember• Easy to Easy to maintainmaintain• Easy to create Easy to create statisticsstatistics• InformationalInformational

Why do we need standard codes?

Item codeItem code


CategoryCategory

SectionSection

ManufacturerManufacturer

Manufacturer codeManufacturer code

Packaged selling unitPackaged selling unit

CharacteristicsCharacteristics

Item code Item code overviewoverview

DepartmentDepartment

Item code structureItem code structure


CategorCategoryy

First characters of the code, indicate the item department

Examples:

0 – Writing

4 – Desk accessories

1 – Office Supplies


CategorCategoryy

The two first characters of the code, show the item category within the department

Examples:

01 – Writing instruments within Writing Department15 – Forms within Office supplies Department


SectionSection

Characters three and four are Section within the previous Category

Examples:

07 – Markers Section

0107 – Markers within Writing instruments Category


Note: It is common to use the term Section for the combination of fist 4 digits since this is the most category detailed level.

ManufactureManufacturerr

The following three characters are used for the Brand. Cross-ref table must be created.

Examples:

001 – Office 1

010 – BIC

015 – Esselte


BarcodBarcodee

Next five characters within the Department + Category + Section + Brand, are for the last three characters of the bar code from the individual selling unit.


Barcode Barcode (continued)(continued)

Remark:

Some vendors use one barcode for different colors of one product. Usually these vendors ship these products mixed and don’t accept orders for a particular color.

Such products must be sold under one item number.


Packaged selling Packaged selling unitunit

Next two digits will be for the “Packaged selling unit”

Examples:

01 – One piece

04 – 4 pieces in a package12 – 12 pieces in a package


Packaged selling Packaged selling unit unit

Remark:Items packaged with more than 99 pieces in package must be considered as package of 1.

Examples:

Ream of Copy paper is equal to 500 sheets

Box of 1000 Paper-clips


CharacteristicCharacteristicss

The last digit is for individual characteristics. These characteristics are specific for every section.Examples:


Item Item descriptiondescription

The item description is only 25-35 characters long. This requirement is set because:

• Usually there’s not enough space in the documents

• It’s used also on labels and web sites

Item descriptionsItem descriptions


Item Item brandbrand

Examples:

3 to 5 characters for the BrandAbbr. Brand

O1S Office 1 Superstore

BIC Bic

CLP COLOP

EPSN EPSON

FC Faber-Castell

HENK Henkel

3M 3M


15 to 20 characters for Main Item Description

Item Item descriptiondescription

Examples::

Perm.Marker

Cryst.BallPen

Whiteboard Marker


3-5 characters for packaging (optional)

Item description - Item description - packagingpackaging

3box – packed by 3 pieces in a boxExamples:

12bag – packed by twelve in a bag3pcs – packed by 3 piecesNOTHING – when 1 piece


2-5 characters for characteristics (optional)

Item description - Item description - characteristicscharacteristics

BLU - blue

Examples:

RED - red

BLK - black

WD - wood

STL - steel

PL - plastic

Note: This field is connected to the Item Code’s characteristics


3 characters for the size (optional)

Item description - Item description - packagingpackaging

MED - Medium size

Examples:

LAR - Large

SML - Small


• Supplier + Vendor Code + Purchasing price

Basic fieldsBasic fields

• Barcode• TAX / VAT• Prices (including multiple-pricing)• Packaging• Status (Example: Removed from the assortment) • MIN & MAX Values

• Category/Section (one filed)


Item Item MasterMaster

• Alternative suppliers + Vendor Code

Optional fields (are Optional fields (are supported)supported)

• Multiple barcode• Storage location• Detailed description (website & catalogue)• Properties (ref. Main Software Requirements)

• Linked and Alternative items

• Picture or Picture file name


Item Item MasterMaster

Minimum and maximum stock are used to maintain the quantities in the warehouse/store. Based on these values the system will suggest the quantities for purchase order.

Minimum and Maximum Minimum and Maximum stockstock

Maintaining quantities

0

50

100

150

200

250

300

350

days

quan

tities MIN

MAX

SALES

MIN & MAXMIN & MAX


Defining Defining PricesPrices

Four Main Sale Price LevelsFour Main Sale Price Levels


• Value Card members Special Prices• Clearance (overwrites all other Main Sale Prices)• Sub Franchisee

• Retail

Client’s Special PricesClient’s Special Prices

Purchasing PricePurchasing Price

PricingPricing

Multiple-PricingMultiple-Pricing


Method 1Method 1

• Multiple item codes • Applicable for items as which are not sold on pieces but only on different packages

Example: Sheet protectors


Multiple-PricingMultiple-Pricing


Method 2Method 2

• One item code

• Quantity ranges with different price per piece • Recommended


Remark: When defining prices you must observe the Remark: When defining prices you must observe the recommendation regarding minimal Gross Margin.recommendation regarding minimal Gross Margin.

Important formulasImportant formulas

(Sales price – Supplier Invoice) / Sales price(Sales price – Supplier Invoice) / Sales price

GM – Gross Margin (%)GM – Gross Margin (%)

(Sales price – COG) / COG(Sales price – COG) / COG

Markup (%)Markup (%)

COG – Cost of GoodsCOG – Cost of Goods

Purchase price + Expenses (Freight, Insurance, Purchase price + Expenses (Freight, Insurance, etc.)etc.)




• Address of registration + Any details which must be present on an invoice• Contact person• Contact information (address, phone, fax, e-mail, website)• Terms of payment & delivery • Contract details (including prices & discounts)

• Company Name

• Bank details


Vendors file Vendors file setupsetup


• Address of registration + Any details which must be present on an invoice

• Contact person

• Contact information (address, phone, fax, e-mail, website)

• Terms of payment & delivery

• Company Name

• Bank details


Customer file Customer file setupsetup

Basic fields (continued)Basic fields (continued)

• Credit allowed

• Special prices

Line of business Person making decisions Special remarks Last contact & result

• Salesmen

• Special discounts

• Basic CRM information



Options fields (if Options fields (if supported)supported)

• Branches

• Additional addresses (billing, delivery, mailing, etc.)

Visits Phone calls Complaints

• Detailed CRM Information

• Additional contact persons + contact details

• History of activities

Mailings Targeted promotions E-mails



Prior first MISIT visitPrior first MISIT visit

• Send OFFICE 1 Software & Web site Requirements to local software houses and web design studios

• Book the local website address

• Study local software market

• Buy workstations for the available staff following OFFICE 1 Recommendations

8. Activities8. Activities

Preparations for 1st Preparations for 1st visitvisit

First MISIT visitFirst MISIT visit

• Build software solution comparison grid

• Meet the software houses confirmed compliance with OFFICE 1 software requirements

• Set the requirements for MISIT Manager position

• Take decision regarding software and websites


OFFICE 1 first OFFICE 1 first visitvisit

MISIT Manager MISIT Manager activitiesactivities

Local Area NetworkLocal Area Network

• Purchase and install the workstations

• Purchase and setup a server

• Build the local area network – cabling, network devices, internet gateway

• Setup network storage and printing

• Install the additional applications (MS Office, Corel, Antivirus, etc.)

• Setup backup, permissions, internet access


SoftwareSoftware

• Make sure every team member is working & testing the software

• Install the software on every workstation as early as possible

• Coordinate the localization, translation and customization of the software (if required)• Create & maintain a journal with the communication and actions

• Provide training to every team member• Implement and adjust OFFICE 1 statistical reports



Software (continued)Software (continued)

• Determine and preset different type permissions for the different job positions

• Create a document for every process with steps and requirements

• Give software house feedback and regularly apply updates & fixes sent by the software house

• Produce tests and quality check of the software, observe proper implementation of the requirements



DatabaseDatabase

• Build template database for stores

• Assist and monitor the proper building of Item and Vendor Master files

• Regularly backup the database

• Import and export information when possible and required

• Setup test and real databases

• Ensure proper data entry by the users




Internet servicesInternet services

• Setting personal e-mail addresses

• Maintenance of the information up-to-date

• Choosing Website and E-Mail hosting

• Import collected items, pictures and files

• Coordinate and assist in collection all required information for the E-Commerce

• Translate & Localize the websites (if required)


THANK YOU FOR THANK YOU FOR

YOUR ATTENTIONYOUR ATTENTION

THANK YOU FOR THANK YOU FOR

YOUR ATTENTIONYOUR ATTENTION

misit training july 2012. introduction building master files software contents hardware web sites...

Documents

software solution software

software slide

software markets

software company

software house

minimal software requirements

main software requirements

software solution coverage