Course: Management Information system (K503)

Prepared for:

XXXXXXXX

Lecturer

Prepared by:

YYYYYY

Roll:

BBA

Institute of Business Administration

University of Dhaka

Date: November 2011

Understanding Information System of Organizations in Bangladesh:

Novartis (Bangladesh) Limited

Table of ContentsIntroduction:...............................................................................................................................................2

1.1 Origin.................................................................................................................................................2

1.2 Objectives:.........................................................................................................................................2

1.3 Scope.................................................................................................................................................2

1.4 Limitations:........................................................................................................................................2

1.5 Methodology:....................................................................................................................................3

2.0 Finding & Analysis..................................................................................................................................3

2.1 Central Information System...............................................................................................................3

2.2 Departmental Information System....................................................................................................4

2.3 Operating System..............................................................................................................................5

2.4 Database............................................................................................................................................5

2.5 Network & Communication...............................................................................................................5

2.6 Benefits from the current Information System..................................................................................5

3.0 Conclusion.............................................................................................................................................6

Works Cited.................................................................................................................................................6

Appendix.....................................................................................................................................................7

Understanding Information System of Organizations in Bangladesh:

Novartis (Bangladesh) Limited

1.0 Introduction:

1.1 Origin

This report entitled “Understanding Information System of Organizations in Bangladesh: Novartis (Bangladesh) Limited” has been prepared for Mr. xxxxxx , Course Instructor, Management Information System(K503) , as a partial requirement of the above mentioned course. This report has been submitted on November 20, 2011.

1.2 Background

Information system can be defined as a set of hardware, software, infrastructure, and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization. In a very broad sense, the term information system is frequently used to refer to the interaction between people, processes, data, and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) an organization uses, but also to the way in which people interact with this technology in support of business processes.1

Information systems inter-relate with data systems on the one hand and activity systems on the other. An information system is a form of communication system in which data represent and are processed as a form of social memory. An information system can also be considered a semi-formal language which supports human decision making and action. Information system provides firms with competitive advantage to deal with the competition, instigates new product innovation, aids in gaining profitability as well as acquiring sustainability.

Therefore, an updated and modern information system has become a vital condition to success for both commercial and non-commercial organizations. In Bangladesh there is a difference in the uses of information systems between multinational and local firms and also between private and government firms. Multinational firms are steps ahead of our local firms in case of use of technology i.e. information system.

1 Source: Wikipedia

1.3 Objectives:

To learn the practical application of Information system in an organization To compare the theoretical knowledge with the practical experience To understand the benefits enjoyed by the selected organization (Novartis Bangladesh Ltd) from

the usage of these software

1.5 Scope

This report aims to analyze the use of Information system in Novartis (Bangladesh) Limited. The information collected through direct interview of an IT official of the mentioned company. This report only states the actual scenario in that company and the advantages and problems they are facing with the current situation.

1.6 Limitations:

The report is based on the information gathered from the interview. The reliability and validity of the report depends on the accuracy of the data provided by the informant. The privacy policy of the company may have affected the findings to some extent.

1.7 Methodology:

The report is based on primary data which is collected from interview with an IT manager of Novartis Bangladesh Ltd. conducted on November 03, 2011.

Secondary data is collected from text books and internet. The secondary data is used mainly to understand the classification of IS and uses of different types of IS.

2.0 Company overview

Novartis is a global company which started its journey in 1996 through the merger of Ciba-Geigy and Sandoz, two companies with a rich and diverse corporate history. Throughout the years, Novartis and its predecessor companies have discovered and developed many innovative products for patients and consumers worldwide. Novartis (Bangladesh) Limited is a branch of the global Novartis which started its operation from the mentioned year which was operating as Ciba-Geigy company before.

9

3.0 Finding & Analysis

3.1 Central Information System

The Information system of Novartis is a centralized one. It uses ERP-Enterprise Resource Planning systems as its central information system since the year 2000. It is a cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company. ERP systems collects data from key business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources and store the data in a single central data repository. Information that was previously fragmented in different systems can be easily shared across the firm to help different parts of the business work more closely together.

The main software used is SAP. In other words they basically use SAP ERP which is a purchased system but customized according to the company needs. The SAP ERP application supports the essential functions of the business processes and operations efficiently and is tailored to specific needs of the industry. This ERP software consists of integrated modules of manufacturing, distribution, sales, accounting, and human resource applications

There are three main versions of SAP ERP which Novartis uses. They are:

SAP Financials SAP ERP Human Capital Management (SAP ERP HCM) SAP ERP Operations

SAP Financials help producing accurate quarterly and annual financial reports. Financial risk management, regulatory compliance, and cash flow liquidity monitoring is also supported by this software. SAP ERP Financials also make extensive use of SAP Business Objects to deliver embedded analytics and self-service reporting.

SAP ERP Human Capital Management (SAP ERP HCM) is a comprehensive, integrated human resources management solution that delivers unmatched global capability. Novartis uses this system as it provides the company with the tools needed to manage the most important asset: people. The solution provides the framework to help executives, human resources (HR) professionals, and line-of-business (LOB) leaders to:

Align objectives to corporate strategy through comprehensive analytics, engage employees and identify, retain, and develop key talent through a robust talent management offering built on a core HCM foundation.

Increase the company’s efficiency with the cost reduction facility through automation of transactional processes

The IT department of Novartis believes that SAP ERP OPERATIONS facilitates its automated operational processes with greater adaptability, helps to increase productivity, extends collaboration to all value chain partners, and also aids in improving performance with strategic business insight. The main reason

they use this application so that they can realize the organization’s full efficiency and cost-effectiveness potential. For Novartis, SAP ERP Operations solution is the software backbone that contributes to achieve operational excellence in key business areas, including procurement and logistics execution, product development and manufacturing, and sales and service.

3.2 Departmental Information System

As mentioned earlier Novartis follows a centralized system it does not have different information systems for different levels of employees. Rather it differentiated the information system according to the department needs. They do not use any separate information system for decision making like DSS.

Different departments customize their own information system as required by the operational tasks. TPS is used in different department at the operational level.

Finance Department:

As mentioned earlier, the finance department of this company uses SAP for doing all sorts of financial calculation and making financial reports. It uses the Financial Accounting (FI) Module to record all the transaction entries. The FI Module comprises several sub-modules such as Accounts Receivables, Accounts Payable, Asset Accounting, Bank Accounting etc. Accounts Receivables records all account postings generated as a result of Customer sales activity. Accounts Payable records account postings generated as a result of vendor purchasing activity. These postings are automatically updated in the general ledger to keep the financials up-to date. Payment programs within SAP enable the payment of payable documents by check or transfers. Asset Accounting is utilized for managing company’s Fixed Assets and Bank Accounting allows management to perform bank transactions in the system including cash management. The profit-loss statement is also generated here after taking in information from all the modules.

Marketing Department:

As marketing is a vital functional department of a pharmaceutical company it opts for more software packages compared to other departments. For sales reporting they use software named SMART. This software gives sales and demand forecasting solutions to automatically handle trends and seasonal patterns and incorporate these effects, along with business judgment, in accurate statistical forecasts that drive their entire supply chain. It also has promotion planning and event modeling capabilities to predict the effect of different types of promotions and help the marketing executives and managers to manage future promotion-driven sales for each product item.

One of the software used by the marketing department is MBCT which stands for Marketing Budgeting Control Tool. As the name suggests this software helps the marketing officers to make budget for their promotional activities.

Sales department

9

For order taking mobile based software is used by the sales department of Novartis Bangladesh. This is developed by the global IT department of Novartis and maintained by the branch IT department.

3.3 Operating System

Novartis uses a customized version of Windows XP. Microsoft office suit is used for official purposes. Most of the departments use MS-Excel for routine works.

3.4 Database

In Novartis Relational Database management System (RDBMS) which represents data as two-dimensional tables. SQL server is used for both local and international data. All the data and information are stored in ORACLE. The Oracle RDBMS stores data logically in the form of table spaces and physically in the form of data files. Structured query language or SQL is used as the data manipulation language. Novartis also uses the partitioning feature which allows tables to be partitioned based on different set of keys so that each remote processor can have the necessary data to serve its local area.

3.5 Network & Communication

3.6 Benefits from the current Information System

Integrated system: In Novartis, they uses ERP as it gives them an integrated real-time and collective view of the company’s core business processes, such as production, order processing, and inventory management. ERP also provides with a common database maintained by a database management system.

Improved management: The whole organization can work in a harmony as well as maintain collaboration with other global branches. Information is easily available from every department, sales office, and factory. Therefore, the top management finds it easier to handle the operations of the organization as they can get a summarized report altogether rather than combining all the data in another system. Using SAP ERP the employees can have immediate access to the enterprise information required for their daily activities.

Cost reduction: Better and faster communication and information management system always tends to reduce operational and communication cost. As Novartis uses a standardized flexible system it can save both time and cost. SAP ERP eliminates high integration costs and the need to purchase any third-party software.

Keeping pace with the industry: Pharmaceutical industry is a highly technology oriented industry. To keep connection between production and sales it is important to develop and maintain an updated IS like the other firms do.

4.0 Conclusion

This research for this report has provided an insight into the types, uses and benefits of information

system used by the Novartis(Bangladesh) Limited. This company always tries to keep updated with the

use of information system. The IT department is constantly working for the maintenance of

development of Is so that the company can perform smoothly and more efficiently. They believe that “A

suitable information and communication system is one of the major tools to boost an organization’s

profitability and productivity”.

Works Cited

Laudon, Laudon, Dass. Managmnt Information System. Pearson.

Oracle Database. (n.d.). Retrieved November 16, 2011, from Wikipedia: http://en.wikipedia.org/wiki/Oracle_Database

SAP ERP. (n.d.). Retrieved November 12, 2011, from Wikipedia: http://en.wikipedia.org/wiki/SAP_ERP

Appendix

Questionnaire:

9

1. What does Novartis use as its information system?2. Do you use different IS for different operational levels?3. When was the current system introduced?4. What are the benefits you get by using this system which the others can’t offer?5. Does Novartis Bangladesh develop its own system or just follow the head branch and the other

global branches?6. Do the departments use any software specially developed for that particular department only?7. Which are the common software suits you use?8. Which type of database is used in Novartis Bangladesh?9. Do you have any plan to change the present system in near future? If yes, why?

People interviewed:

Md. Wasif Sajed

Regional IT Project Manager, SFA/ CRM