Description
Information management (IM) is the collection and management of information from one or more sources and the distribution of that information to one or more audiences. This sometimes involves those who have a stake in, or a right to that information.
AU J.T. 8(2): 95-101 (Oct. 2004)
Transaction and Information Management Model for the E-Commerce of Highly Valuable Traditional Products in Thailand: A Conceptual Framework
Sakuna Vanichvisuttikul
Graduate School of Computer and Engineering Management Assumption University, Bangkok, Thailand
Abstract
In all aspects of organization, information is a key to the success factor that supports all levels of management in the decision making to be made by the managers. As the outcome of information management in having the right information generated at the right time and supporting the right person has been considered an important issue to the management of today businesses, especially, in the digital firm. This paper aims at drawing up the Transaction and Information Management (TIM) Model for the e-commerce of highly valuable traditional products in Thailand. These products are the production from the government project entitled, “One Tambon, or District, One Product (OTOP)” Project. As the product owners in this government project are rural people who are non-business and non-technical people. To be a partial support to the e-commerce development for this government project, the graphic models have been occupied to propose how the information on this particular e-commerce business has been managed and employed in an understandable manner. Its purpose is to facilitate these product owners and the management concerned in the development of this ecommerce to have clear understanding of the information input, processed, and distributed through the e-commerce system. Additionally, this particular TIM Model could be beneficial in bridging the gap between the new business aspect including the advance of information technology and the rural people who are the non-business and non-technical people and also the new entrants of the new digital firm. Keywords: OTOP, graphic models, Management Information System, Computer Based Information System, graphic models.
Introduction
Management Information System (MIS) is one of the major Computer-based Information Systems (CBIS). Its purpose is to meet the general information needs of all the managers in the firm or in some organizational subunit of the firm (McLeod and Schell 2000). Information System (IS) refers to the designed system for processing and transforming data into information (Koonce 1999). However, the quality of the output information could exist only if the data input into IS posses high quality data. The high quality output reports generated from MIS are also resulting from high quality IS, as well. The information that is the report and model output provided from
95
MIS is in the form of tabular or graphic form. Information input to MIS is in the form of summary transaction data, high-volume data and simple model. Processing characteristics are in the form of routine reports; simple models with low-level analysis. In some cases, MIS serve the management level of the organization with online access to the organization’s current performance and historical records. MIS primarily serve the function of planning, controlling, and decision making at the management level. Typically, MIS are oriented almost exclusively to internal, not environmental or external events (Laudon and Laudon 2004). These definitions could be illustrated by using a model.
AU J.T. 8(2): 95-101 (Oct. 2004)
A model is an abstraction of something that represents some object or activity, which is called an entity. Basically, there are four types of models; physical, narrative, graphic, and mathematical models (McLeod and Schell 2000). However, this paper has employed the graphic models in drawing up the TIM Model of OTOP e-commerce for communicating and understanding purpose among the regional leaders of the product owners and all people concerned. However, the model of MIS in different types of organization will be characterized differently. Also, the successful implementation of IS innovation remains a theoretical, as well as a managerial challenge (Sharman and Yetten 2003). Many IS innovations introduced by organizations are either rejected by end users or are under-used (Saur 1993; Maskus 1994). The MIS has also assumed different facet in different business fields. Additionally, different firms have different key issues in the successful implementation of MIS (Pimchangthong 2003).
TIM Model for OTOP E-Commerce
The context of TIM Model proposed in this paper is concerning to e-commerce business. The product owners and management concerned in this OTOP e-commerce is nonbusiness and non-technical people. They are rural people who produce the products during their free time. Therefore, it is significant to design the TIM Model to support the ecommerce development in this government project. So that, the contribution of the designed TIM Model in this paper could be beneficial in bridging the gap of the digital divide’s problem among these rural people where, 56.1 and 39.1% of these product owners have computer and Internet connection (Vanichvisuttikul et al. 2004). This is done by transferring the knowledge and technology regarding the transaction and information management to the regional leaders of OTOP product owners. To illustrate the environment and dimensions by which this TIM Model for
96
OTOP e-commerce domain has been designed in this paper, Fig. 1 has been drawn up. From Fig. 1, the database contains the data provided by the Transaction Processing System (TPS). Both data and information are entered from the environment. Contents of the database are used by the e-commerce software applications that produce periodic and special reports, as well as mathematical models that simulate various aspects of the firms operations both by front-end and back-end system. Output generated by the software is used by the organizational problem solvers who are the regional leaders of OTOP product owners. The environment becomes involved when the firm groups together with such other organizations as suppliers or other OTOP product owners’ community groups, to form an Interorganizational Information System (IOS), in which, in this case, the MIS supplies information to the other members of the IOS. MIS summarizes and reports on the basic operations of the e-commerce business. The basic transaction data from TPS are compressed and are usually presented in long reports that are produced on a regular schedule. Fig. 2 shows how a typical MIS transform transaction level data from order, product purchased, and accounting processing system into MIS files that are used to provide information to managers or the regional leaders of OTOP product owners. The reports or results generated by the MIS, both the frontend and back-end system of the OTOP ecommerce usually bi-weekly, and/or monthly, not day-to-day. Technology management is a complex multidisciplinary field with a different perspective on diverse phenomena. Apparently, any place where technical personnel, knowledge, products, or processes intersect with management issues is fair game for the field (Chol and Liker 2002). In order to occupy the IS to achieve strategic advantage, especially in the digital firm era, the competitive forces model of Porter (1985) need the modification for this particular OTOP e-commerce as shown in Fig. 3. In this figure, a firm faces a number of external threats and opportunities; the threat of new entrants into its market, the pressure from substitute products
AU J.T. 8(2): 95-101 (Oct. 2004)
IOS
Environment
Information Data
Organizational problem solvers Regional leaders of OTOP prod. owners
Report writing software E-comm. App. Back-off MIS
Mathematical models E-comm. App. Front-off and Back-off
Environment
Fig. 1. Environment and dimensions of MIS for OTOP e-commerce. and services, the bargaining power of customers, the bargaining power of suppliers, and the position of traditional industry competitors (Porter 1985). By considering this modified competitive forces model, the management concerned, or the regional leaders of OTOP product owners should aware of these when making decision in dealing with customers, suppliers, substitute products and services, and new entrants into its market, which in turn may change the balance of power between a firm and other competitors in the industry in the firm’s favor (Laudon and Laudon 2004). have been designed to include three steps for each of them. Firstly, the data will be edited. Later, the edited data will be entered into the processing step. Lastly, the entered data will be transformed or generated as reports, and recorded into the history file of each entity.
Conclusion
This study was designed to explore the model of transaction and information management model for the e-commerce of products in the government project. Where, the owners of these products are rural people in the rural areas. Management concerned or the regional leaders of these product owners need to have knowledge and technology transferred, in order to manage this OTOP e-commerce and survive in the digital firm era. According to the result of the research paper in the proceeding of the IEEE international conference on etechnology, e-commerce, and e-services 2004 held on 27-31 March 2004, in Taiwan, the
97
Flowchart and Data Flow Diagram
Regarding the design of OTOP ecommerce as shown on Fig. 2, to illustrate more, Figs. 4-6 contain the flowchart and data flow diagram illustrated the information flow for each TPS; sales ordering, purchasing, and accounting IS. The steps shown in Figs. 4-6
AU J.T. 8(2): 95-101 (Oct. 2004)
Transaction Processing System
MIS
MIS files
Order file
Order processing system
Sales data
Product master file
Product Purchased processing system
Unit prod. cost data
Prod. owners data General ledger processing system
MIS
Reports
Managers/ Regional leaders of OTOP product owners
Acctg. file
Expenses data
Fig. 2. TPS and MIS of OTOP e-commerce.
98
AU J.T. 8(2): 95-101 (Oct. 2004)
Competitive Force Model OTOP E-Commerce
New entrants Northern regional product owners Customers
Middle regional product owners
Northeastern regional product owners Southern regional product owners
Suppliers
Substitute products & services
Fig. 3. The competitive force model for OTOP e-commerce.
Sales order
Customers
Sales orders
Edit sales order Sales order Edited sales orders 2. Enter sales order data Entered sales order data Sales order history file Sales order history file
1. Edit sales order
Enter sales order data Prepare sales order report Sales order report
Sales order
Sales orders data
3. Prepare sales order report Sales orders report Sales manager
Fig. 4. Flowchart and data flow diagram for sales IS.
99
AU J.T. 8(2): 95-101 (Oct. 2004)
Purchasing order
Product owners
Purchasing orders
Edit purchasing order Purchasing order Enter purchasing order data
Prepare purchasing order report
Edited purchasing orders
1. Edit purchasing order
Purchasing order
2. Enter purchasing Purchasing orders data order data
Entered purchasing order data
Purchasing order report
Purchasing Purchasing order history order history file file
3. Prepare purchasing order report Purchasing orders report Purchasing manager
Fig. 5. Flowchart and data flow diagram for purchasing IS
General ledgers
General ledgers
General ledgers
Edit General ledgers General ledgers Enter general ledgers data
Prepare Accounting report
Edited general ledgers
1. Edit General ledgers
General ledgers
2. Enter General General ledgers data ledgers data Entered general ledgers data 3. Prepare Accounting reports Accounting reports Accounting manager
Accounting report
Accounting history file
Accounting history file
Fig. 6. Flowchart and data flow diagram for accounting IS
100
AU J.T. 8(2): 95-101 (Oct. 2004)
results in measuring the awareness of the product owners in the OTOP project show that they have a high level of acceptance on ecommerce development, but a low level of knowledge and technology transferred (Vanichvisuttikul and Jungthirapanich 2004). This lies on the problem of the digital divide in Thailand. As the number of computer and Internet connections in rural areas are still low when compared to the other areas in Thailand. Therefore, the author has tried to draw up the designed TIM Model in this paper as partial support for transferring knowledge and technology, and to be easily initiated by rural people who are non-technical. By the simple graphic models of this TIM that has been designed to represent how data are to be input, transformed or processed, and output as information which are in the form of table and/or graphic results, could be beneficial to these people in developing an understanding background about IS and MIS of OTOP ecommerce. Additionally, the competitive forces model has also been initiated to illustrate how IS could be occupied to achieve a strategic advantage. However, another purpose for the designed models in this paper is to bridge the gap towards the digital divide’s problem for people in the rural areas of Thailand. Later, further studies into more complicated and technical models regarding IS and MIS for this OTOP e-commerce will be developed. More details, data, information and reports generated, as well as more discussions regarding management information model will then be included.
References
Chol, T.Y.; and Liker, J.K. 2002. Supply chain management as an emerging focus of technology management. IEEE Trans. Engin. Management. 49: 198-204. Koonce, D.A. 1995. Information Model Level Integration for CIM Systems: A Unified Database Approach to Concurrent Engineering. Comp. Indust. Engin. 29(14)T: 647-51. Laudon, K.C.; and Laudon, J.P. 2004. Management Information Systems Managing the Digital Firm, 8th ed. Prentice Hall, Upper Saddle River, NJ, USA. Maskus, K.E. 1994. If we build it, they will come: Designing information systems that people want to use. Sloan Mgt. Rev. 35(4): 11-25. McLeod, R., Jr.; and Schell, G. 2000. Management Information Systems, 8th ed. Prentice-Hall, Englewood Cliff, NJ, USA. Pimchangthong, D.; Plaisent, M.; and Bernard P. 2003. Key issues in information systems management: A comparative study between academics and practitioners in Thailand. J. Global Business 6(4): 56-67. Porter, M.E. 1985. Competitive Advantage. Free Press, New York, NY, USA. Saur, C. 1993. Why Information System Fail: A Case Study Approach. Alfred Waller, Henley-on-Thames, England. Sharman, R.; and Yetten, P. 2003. The contingent effects on management support and task interdependence on successful information systems implementation. MIS Quart. Mgt. Inf. Syst. 27: 533-55. Vanichvisuttikul, S.; and Jungthirapanich, C. 2004. The Assessment of E-Commerce Awareness on Highly Valuable Traditional Products in Thailand. Proc. IEEE Int. Conf. E-Technology, E-Commerce, and E-Service (EEE-04), Taipei, Taiwan, 2004.
101
doc_376222443.pdf
Information management (IM) is the collection and management of information from one or more sources and the distribution of that information to one or more audiences. This sometimes involves those who have a stake in, or a right to that information.
AU J.T. 8(2): 95-101 (Oct. 2004)
Transaction and Information Management Model for the E-Commerce of Highly Valuable Traditional Products in Thailand: A Conceptual Framework
Sakuna Vanichvisuttikul
Graduate School of Computer and Engineering Management Assumption University, Bangkok, Thailand
Abstract
In all aspects of organization, information is a key to the success factor that supports all levels of management in the decision making to be made by the managers. As the outcome of information management in having the right information generated at the right time and supporting the right person has been considered an important issue to the management of today businesses, especially, in the digital firm. This paper aims at drawing up the Transaction and Information Management (TIM) Model for the e-commerce of highly valuable traditional products in Thailand. These products are the production from the government project entitled, “One Tambon, or District, One Product (OTOP)” Project. As the product owners in this government project are rural people who are non-business and non-technical people. To be a partial support to the e-commerce development for this government project, the graphic models have been occupied to propose how the information on this particular e-commerce business has been managed and employed in an understandable manner. Its purpose is to facilitate these product owners and the management concerned in the development of this ecommerce to have clear understanding of the information input, processed, and distributed through the e-commerce system. Additionally, this particular TIM Model could be beneficial in bridging the gap between the new business aspect including the advance of information technology and the rural people who are the non-business and non-technical people and also the new entrants of the new digital firm. Keywords: OTOP, graphic models, Management Information System, Computer Based Information System, graphic models.
Introduction
Management Information System (MIS) is one of the major Computer-based Information Systems (CBIS). Its purpose is to meet the general information needs of all the managers in the firm or in some organizational subunit of the firm (McLeod and Schell 2000). Information System (IS) refers to the designed system for processing and transforming data into information (Koonce 1999). However, the quality of the output information could exist only if the data input into IS posses high quality data. The high quality output reports generated from MIS are also resulting from high quality IS, as well. The information that is the report and model output provided from
95
MIS is in the form of tabular or graphic form. Information input to MIS is in the form of summary transaction data, high-volume data and simple model. Processing characteristics are in the form of routine reports; simple models with low-level analysis. In some cases, MIS serve the management level of the organization with online access to the organization’s current performance and historical records. MIS primarily serve the function of planning, controlling, and decision making at the management level. Typically, MIS are oriented almost exclusively to internal, not environmental or external events (Laudon and Laudon 2004). These definitions could be illustrated by using a model.
AU J.T. 8(2): 95-101 (Oct. 2004)
A model is an abstraction of something that represents some object or activity, which is called an entity. Basically, there are four types of models; physical, narrative, graphic, and mathematical models (McLeod and Schell 2000). However, this paper has employed the graphic models in drawing up the TIM Model of OTOP e-commerce for communicating and understanding purpose among the regional leaders of the product owners and all people concerned. However, the model of MIS in different types of organization will be characterized differently. Also, the successful implementation of IS innovation remains a theoretical, as well as a managerial challenge (Sharman and Yetten 2003). Many IS innovations introduced by organizations are either rejected by end users or are under-used (Saur 1993; Maskus 1994). The MIS has also assumed different facet in different business fields. Additionally, different firms have different key issues in the successful implementation of MIS (Pimchangthong 2003).
TIM Model for OTOP E-Commerce
The context of TIM Model proposed in this paper is concerning to e-commerce business. The product owners and management concerned in this OTOP e-commerce is nonbusiness and non-technical people. They are rural people who produce the products during their free time. Therefore, it is significant to design the TIM Model to support the ecommerce development in this government project. So that, the contribution of the designed TIM Model in this paper could be beneficial in bridging the gap of the digital divide’s problem among these rural people where, 56.1 and 39.1% of these product owners have computer and Internet connection (Vanichvisuttikul et al. 2004). This is done by transferring the knowledge and technology regarding the transaction and information management to the regional leaders of OTOP product owners. To illustrate the environment and dimensions by which this TIM Model for
96
OTOP e-commerce domain has been designed in this paper, Fig. 1 has been drawn up. From Fig. 1, the database contains the data provided by the Transaction Processing System (TPS). Both data and information are entered from the environment. Contents of the database are used by the e-commerce software applications that produce periodic and special reports, as well as mathematical models that simulate various aspects of the firms operations both by front-end and back-end system. Output generated by the software is used by the organizational problem solvers who are the regional leaders of OTOP product owners. The environment becomes involved when the firm groups together with such other organizations as suppliers or other OTOP product owners’ community groups, to form an Interorganizational Information System (IOS), in which, in this case, the MIS supplies information to the other members of the IOS. MIS summarizes and reports on the basic operations of the e-commerce business. The basic transaction data from TPS are compressed and are usually presented in long reports that are produced on a regular schedule. Fig. 2 shows how a typical MIS transform transaction level data from order, product purchased, and accounting processing system into MIS files that are used to provide information to managers or the regional leaders of OTOP product owners. The reports or results generated by the MIS, both the frontend and back-end system of the OTOP ecommerce usually bi-weekly, and/or monthly, not day-to-day. Technology management is a complex multidisciplinary field with a different perspective on diverse phenomena. Apparently, any place where technical personnel, knowledge, products, or processes intersect with management issues is fair game for the field (Chol and Liker 2002). In order to occupy the IS to achieve strategic advantage, especially in the digital firm era, the competitive forces model of Porter (1985) need the modification for this particular OTOP e-commerce as shown in Fig. 3. In this figure, a firm faces a number of external threats and opportunities; the threat of new entrants into its market, the pressure from substitute products
AU J.T. 8(2): 95-101 (Oct. 2004)
IOS
Environment
Information Data
Organizational problem solvers Regional leaders of OTOP prod. owners
Report writing software E-comm. App. Back-off MIS
Mathematical models E-comm. App. Front-off and Back-off
Environment
Fig. 1. Environment and dimensions of MIS for OTOP e-commerce. and services, the bargaining power of customers, the bargaining power of suppliers, and the position of traditional industry competitors (Porter 1985). By considering this modified competitive forces model, the management concerned, or the regional leaders of OTOP product owners should aware of these when making decision in dealing with customers, suppliers, substitute products and services, and new entrants into its market, which in turn may change the balance of power between a firm and other competitors in the industry in the firm’s favor (Laudon and Laudon 2004). have been designed to include three steps for each of them. Firstly, the data will be edited. Later, the edited data will be entered into the processing step. Lastly, the entered data will be transformed or generated as reports, and recorded into the history file of each entity.
Conclusion
This study was designed to explore the model of transaction and information management model for the e-commerce of products in the government project. Where, the owners of these products are rural people in the rural areas. Management concerned or the regional leaders of these product owners need to have knowledge and technology transferred, in order to manage this OTOP e-commerce and survive in the digital firm era. According to the result of the research paper in the proceeding of the IEEE international conference on etechnology, e-commerce, and e-services 2004 held on 27-31 March 2004, in Taiwan, the
97
Flowchart and Data Flow Diagram
Regarding the design of OTOP ecommerce as shown on Fig. 2, to illustrate more, Figs. 4-6 contain the flowchart and data flow diagram illustrated the information flow for each TPS; sales ordering, purchasing, and accounting IS. The steps shown in Figs. 4-6
AU J.T. 8(2): 95-101 (Oct. 2004)
Transaction Processing System
MIS
MIS files
Order file
Order processing system
Sales data
Product master file
Product Purchased processing system
Unit prod. cost data
Prod. owners data General ledger processing system
MIS
Reports
Managers/ Regional leaders of OTOP product owners
Acctg. file
Expenses data
Fig. 2. TPS and MIS of OTOP e-commerce.
98
AU J.T. 8(2): 95-101 (Oct. 2004)
Competitive Force Model OTOP E-Commerce
New entrants Northern regional product owners Customers
Middle regional product owners
Northeastern regional product owners Southern regional product owners
Suppliers
Substitute products & services
Fig. 3. The competitive force model for OTOP e-commerce.
Sales order
Customers
Sales orders
Edit sales order Sales order Edited sales orders 2. Enter sales order data Entered sales order data Sales order history file Sales order history file
1. Edit sales order
Enter sales order data Prepare sales order report Sales order report
Sales order
Sales orders data
3. Prepare sales order report Sales orders report Sales manager
Fig. 4. Flowchart and data flow diagram for sales IS.
99
AU J.T. 8(2): 95-101 (Oct. 2004)
Purchasing order
Product owners
Purchasing orders
Edit purchasing order Purchasing order Enter purchasing order data
Prepare purchasing order report
Edited purchasing orders
1. Edit purchasing order
Purchasing order
2. Enter purchasing Purchasing orders data order data
Entered purchasing order data
Purchasing order report
Purchasing Purchasing order history order history file file
3. Prepare purchasing order report Purchasing orders report Purchasing manager
Fig. 5. Flowchart and data flow diagram for purchasing IS
General ledgers
General ledgers
General ledgers
Edit General ledgers General ledgers Enter general ledgers data
Prepare Accounting report
Edited general ledgers
1. Edit General ledgers
General ledgers
2. Enter General General ledgers data ledgers data Entered general ledgers data 3. Prepare Accounting reports Accounting reports Accounting manager
Accounting report
Accounting history file
Accounting history file
Fig. 6. Flowchart and data flow diagram for accounting IS
100
AU J.T. 8(2): 95-101 (Oct. 2004)
results in measuring the awareness of the product owners in the OTOP project show that they have a high level of acceptance on ecommerce development, but a low level of knowledge and technology transferred (Vanichvisuttikul and Jungthirapanich 2004). This lies on the problem of the digital divide in Thailand. As the number of computer and Internet connections in rural areas are still low when compared to the other areas in Thailand. Therefore, the author has tried to draw up the designed TIM Model in this paper as partial support for transferring knowledge and technology, and to be easily initiated by rural people who are non-technical. By the simple graphic models of this TIM that has been designed to represent how data are to be input, transformed or processed, and output as information which are in the form of table and/or graphic results, could be beneficial to these people in developing an understanding background about IS and MIS of OTOP ecommerce. Additionally, the competitive forces model has also been initiated to illustrate how IS could be occupied to achieve a strategic advantage. However, another purpose for the designed models in this paper is to bridge the gap towards the digital divide’s problem for people in the rural areas of Thailand. Later, further studies into more complicated and technical models regarding IS and MIS for this OTOP e-commerce will be developed. More details, data, information and reports generated, as well as more discussions regarding management information model will then be included.
References
Chol, T.Y.; and Liker, J.K. 2002. Supply chain management as an emerging focus of technology management. IEEE Trans. Engin. Management. 49: 198-204. Koonce, D.A. 1995. Information Model Level Integration for CIM Systems: A Unified Database Approach to Concurrent Engineering. Comp. Indust. Engin. 29(14)T: 647-51. Laudon, K.C.; and Laudon, J.P. 2004. Management Information Systems Managing the Digital Firm, 8th ed. Prentice Hall, Upper Saddle River, NJ, USA. Maskus, K.E. 1994. If we build it, they will come: Designing information systems that people want to use. Sloan Mgt. Rev. 35(4): 11-25. McLeod, R., Jr.; and Schell, G. 2000. Management Information Systems, 8th ed. Prentice-Hall, Englewood Cliff, NJ, USA. Pimchangthong, D.; Plaisent, M.; and Bernard P. 2003. Key issues in information systems management: A comparative study between academics and practitioners in Thailand. J. Global Business 6(4): 56-67. Porter, M.E. 1985. Competitive Advantage. Free Press, New York, NY, USA. Saur, C. 1993. Why Information System Fail: A Case Study Approach. Alfred Waller, Henley-on-Thames, England. Sharman, R.; and Yetten, P. 2003. The contingent effects on management support and task interdependence on successful information systems implementation. MIS Quart. Mgt. Inf. Syst. 27: 533-55. Vanichvisuttikul, S.; and Jungthirapanich, C. 2004. The Assessment of E-Commerce Awareness on Highly Valuable Traditional Products in Thailand. Proc. IEEE Int. Conf. E-Technology, E-Commerce, and E-Service (EEE-04), Taipei, Taiwan, 2004.
101
doc_376222443.pdf