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1.0 Abstract
The retail industry in Malaysia is one of the fastest growing industries. In addition to
contributing to the country's economic growth, the industry also provides wider
employment opportunities and intensifies entrepreneurship development. The
encouraging potential of the industry has attracted many foreign investors to invest in
the country. However, this phenomenon has sparked great competition and pressure on
local traders. The business production process is still using traditional equipment so it is
very difficult to be able to compete with other processing industries, so the added value
created by small and medium enterprises (SMEs) in the field of business is still
relatively low. With the advancement of technology, the company is required to be able
to keep up with the times to avoid being left behind with others. The purpose of this
study on small and medium enterprises of Z Supermarket is to know the type of
technology that has been and has not been used in developing business superior
commodities in the region of Malaysia particularly in Banting, Selangor. The technology
applied from the first to the last business system but it is still simple and has not been
able to improve the business production process, so it has not been able to encourage
businesses of small and medium enterprises.
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2.0 Introduction
In the era of globalization, with the rapid development of technology nowadays and the
increasing specialization in the company, every company is required to increase
efficiency and streamline the use of the resources owned by the company. The
development of the growing world and the rapid competition that causes many
companies are vying to achieve maximum levels in production.
Supermarket Z is a pioneer business for Z Value Berhad. Z Value Berhad is the holding
company that oversees all Z group companies including in terms of import, wholesale
and trade through modern and traditional channels. Z Value Berhad is supported by its
own logistics and investment management. Z Value Berhad provides a complete
marketing chain which from the beginning to the end of the distribution process is self-
managed by the Z Value Berhad group. This is to ensure freshness and comfort can be
enjoyed by customers. To achieve that goal, Z Value Berhad always ensures that
distributed products are brought directly from original sources such as fishermen,
farmers or manufacturers. Hence, the cost for middlemen can be eliminated and allow
customers to enjoy products at a more affordable price. It is also a corporate mission of
Z Value Berhad to create value for society. The vision for this company is to be
Malaysia's most admired company in the retail industry (Metrobiz, 2012).
The business model of Z Value Berhad applies the following core functions; direct
sourcing, logistics, distribution and operational needs in retail outlets. Z Value Berhad
emphasizes direct business sourcing and uses Z Value Berhad group logistics for
distribution process. Z Value Berhad focuses on the following channels as the main
source of supply of products, namely through wholesale, modern and traditional trade
and retail network of Z Value Berhad, Z Supermarket (Metrobiz, 2012). Z Supermarket
was established in September 1994. The company's first location is nearby Selayang
Wholesale Market, Kuala Lumpur. In 2012, the company has one transformation from
traditional market wholesalers to retail outlets. Products marketed by this retail chain are
30 percent of grocery items such as sauces, rice, spices and so on. While 70 percent
are fresh items such as vegetables, fruits, chicken, meat and seafood (Metrobiz, 2012).
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Supermarket Z is a new concept, Z Supermarket is dependent on "Z Farm Fresh" and
"Z Marine" as an added value to businesses by providing fresh quality products for end
users. Therefore, Supermarket Z always ensures the price offered is cheap and
competitive. There are five values that are core to this business to achieve its business
goals of freshness, diversity, price, convenience, and service (Metrobiz, 2012). Today,
there are nine Z supermarket stores operating in order to meet customer needs and
demands. One of the Z Supermarkets is located in Telok Panglima Garang, Banting.
This branch is the largest branch with an average area of 100,000 square feet to
200,000 square feet. This study focuses on the role of information technology to
improve Z Supermarket’s performance in order to attract more customers.
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3.0 Literature Review
Retailers are firms that earn more than half of their sales revenue from sales made
directly to end users. Retailers do marketing functions that also help build the utility of
time, time, form and ownership to consumers (Aini Hayati Mohamed, Faridahwati Mohd
Shamsudin, Hasni Che Ismail, Lim Kong Teong, Mohammad Basir Saud, Nasruddin
Zainurin, Norsiah Mat and Norli Yaacob, 2007). There are two fundamental factors in
retailing ie buying and selling goods and services and dealing with the public. Retailers
make efficient exchange of money and goods to meet the needs of consumers and to
make profit by providing the products required by the customer (Loulou Brown, 2001).
Retailers can be categorized into two types, namely retail and retail stores without a
store. A retail store is a sales practice for consumers through a store, whereas retail
without store is a sales practice for consumers using other methods such as mail,
catalog, telephone, television and other channels (Aini Hayati Mohamed et al., 2007).
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For retail stores, retail outlets can be divided into several types such as supermarkets,
superstores and hypermarkets based on the type of product sold and the size of the
store. Here are three categories of supermarkets, namely:
3.2.1 Supermarket
Supermarkets are department stores and large-sized stores that sell dry and wet food
and other hardware as customer's needs (Aini Hayati Mohamed et al., 2007). The
hypermarket is typically 2,000 feet square (Loulou Brown, 2001).
3.2.2 Superstore
Superstore is a supermarket that is about two or three times the size of a regular
supermarket (Aini Hayati Mohamed et al., 2007). The Superstore has a space of
25,000-50,000 square feet. Superstore locations are usually in urban areas or cities,
especially in shopping areas (Loulou Brown, 2001). Superstore has at least 50 staff
members and provides more products, a wide range of food or non-food items (Aini
Hayati Mohamed et al., 2007). Normally superstores are retail-based, though there are
some companies, such as Tesco which has up to 50 percent of other items (Loulou
Brown, 2001).
3.2.3 Hypermarket
The hypermarket is a shop usually 50,000 square feet (Loulou Brown, 2001). Large
supermarkets offer more choice of food or non-food items to consumers. Products sold
are a combination of product items sold in supermarkets and warehouses (Aini Hayati
Mohamed et al., 2007). Hypermarkets are free standing buildings, ie they are located
separately from any other building and are usually located in the suburbs and in the
center. There are on-site warehouses and parking facilities (Loulou Brown, 2001). Large
supermarkets are from Europe set up by retailers there in the early 70s. Examples of
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hypermarkets that have been established in Malaysia are Carrefour, now known as
Aeon Big, Giant and Tesco (Aini Hayati Mohamed et al., 2007).
The rapid development of information technology lately allows to make the computer-
based information system, so as to make it easier for business people, especially for
small and medium enterprises. The phenomenon that exists today is not much and
even many UKMs who have not and do not use the help of information technology
either to run the business or use appropriate technology to produce products, such as
what is desired by economists such as mercantilist emphasize that to strengthen the
position of industry or company, it must be willing and able to sell outside the border
region by relying on certain advantages both comparative and competitive.
Appropriate technology that suits the needs of the community, can answer the problems
of society, do not damage the environment and can be utilized by the community easily,
cheap and produce added value both from economic and environmental aspects.
Efficient utilization of optimal technology will be realized if there is technology transfer
from the creator or owner of appropriate technology to the technology user community
appropriate. Reality shows that new discoveries about appropriate technology are quite
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rapid, both found by society, business world, college, government and private research
and development institutions.
The tendency of SMEs to technology in the future cannot be separated from changes in
the structure of SMEs. The technology to be designed, from now on must have
prepared a very substantial demand from the communication industry, medicine, and
services of small and medium scale to support the development of increasingly
prospective SMEs.
The development of information systems through data processing tools from since
ancient era to date we can classify into four big groups, that is:
i. Manual equipment, which is very simple data processing equipment, and the
most important factor in using the tool is using the hand human.
ii. Mechanical equipment, ie equipment already in the form of mechanical manually
moved.
iii. Electronic mechanical equipment, ie mechanical equipment is driven
automatically by electronic motor.
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iv. Electronic equipment, ie equipment that works electronically.
Information systems play a very important role in business. Information technology can
help all kinds of businesses improve the efficiency and effectiveness of business
processes, managerial decision making and teamwork work to strengthen the
competitive position of businesses in a rapidly changing market. This is true when
information technology is used to support product development teams, customer
support processes, e-commerce transactions, or other business activities. Internet-
based information technology and systems in the shortest time become the materials
needed for business success in today's dynamic global environment.
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3.3.2 Managerial Function Of The Information System
In this case the information system plays a very important, Viewed from the perspective
of managerial function of the information system are:
i. Minimize Risks, especially those related to financial factors. Generally the risk
stems from the uncertainty in various aspects and aspects of other external
aspects that are beyond the control of the company. Examples are fluctuating
currency rates, dynamic consumer behavior, uncertain product demand and so
on. The presence of information technology in addition must be able to help
companies to reduce existing business risks, it should also be a means to assist
management in managing risk (managing risk) faced daily.
ii. Reduce Cost, another offer offered by information technology is the
improvement, efficiency and optimization of business processes in the company.
The role of information technology as a catalyst in various efforts to reduce
operating costs will ultimately affect the company's profitability. There are four
ways offered by information technology to reduce the expenses that are often
incurred for day-to-day operational activities are: Elimination Process, Process
Simplification, Process Integration and Process Automation.
iii. Add Value, The ultimate goal of value creation is not just to satisfy the customer
(customer satisfaction), but further to create loyalty (customer loyalty) so that the
customer is willing to always be a consumer company for a long period of time
(customer bonding).
iv. Create New Realities, The latest development of information technology is
characterized by the rapid internet technology, has been able to create a new
competitive arena for the company, namely in cyberspace. Various e-commerce
concepts such as e-commerce, e-procurement, e-customers, e-loyalty, and so on
are essentially a new way of looking at responding to business mechanisms in
the era of information globalization. Z Supermarket must have the ability in
managerial function of the existing information system by taking into account the
four points described above. Because after the analysis, the company still has
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weaknesses in its management information system, especially in creating value
added in the management of online shop website owned.
Currently, and it could be forwards, that one of the assets of a modern business
enterprise a very valuable information system that has a high level of response and
focus to its users from all aspects. Well-built and correct information systems, among
others, can increase productivity, reduce production material stock, eliminate activities
that do not have benefits (value added), improve service and customer satisfaction,
coordinate every part of the company and improve the quality of management policies.
While in general these benefits can be categorized as tangible benefits and intangible
benefits.
i. Tangible Benefit
An information system that is built and maintained properly will provide tangible
benefits that can be seen in fact the movement through revenue earned and the
costs incurred by the company. Indicators of success / benefits that impact on
increasing revenue are increasing sales in existing markets and expanding into
new markets. Good information systems can be used not only for data storage
electronically but must be able to support the analysis process required by
management. So with the support of a good information system it can be
obtained accurate, reliable, up to date and easily accessible information about
the company's sales conditions. With the reports presented quickly and at any
time accessible then the decisions that are taken can be more quickly and
precision to the existing market dynamics.
While in terms of cost reduction can be done factual analysis of the reduction of
the number of human resources involved in business, reduction of operational
costs such as supply and overhead, reduction of goods / materials in warehouse
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stock, reduced maintenance costs and the provision of equipment that is not too
expensive.
The problem of the accumulation of production material supply which has been
often the burden of company assets with the application of SCM module (supply
chain management) in the developed information system is very helpful to solve
the problem. With good SCM support, stockpiling of production materials can be
minimized. Where companies simply order to suppliers only when they reach the
minimum inventory limit. The price can be very competitive because it is obtained
from several suppliers so this course is very profitable company. The emphasis
on the amount of labor would have an impact on the decline in the amount of
investment equipment that must be invested which also affects the decrease in
maintenance costs.
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Suppose we come to a supermarket. Which one would we choose as a
place to shop, a store whose queue time at the cashier is shorter or vice
versa? Surely we will choose the first one even though it may have to pay
a little more expensive compared to the second store. Apparently the first
store has implemented a faster information system sales in processing
and ease of data entry.
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Improved quality and number of responses to competitor conditions
Business intelligence is a very important aspect since long periods of time
with various formats and purposes. To achieve a fast and precise
response point of dynamics from competitors hence required information
system capable of collecting, analyzing and compiling information needed
by the decision makers in the company.
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4.0 Methodology
The population of this study consisted of customers who visited the Z Supermarket,
Telok Panglima Garang. The average number of subscribers per day is 2,362 people
(Norlyn Aiza, 2012). Based on the method of determining the number of samples of
Krejcie and Morgan (1970), with a population of 2,362 people, the total sample required
is 330 respondents. Instruments used in this study are interviews and questionnaires.
An interview was conducted against Pn. Siti Suria, Human Resources Department
Manager at Supermarket Z. The interview question is a self-developed structured
question for information on Z Supermarket.
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5.0 Recommendation and Solution
In business world that is closely related to the transaction of buying and selling, the
utilization of Information Technology can be used also for electronic trading means
otherwise known as E-Commerce. E-Commerce is the dissemination, purchase, sale,
marketing of goods and services through electronic systems such as internet or
television, www, or other computer networks. E-commerce may involve the transfer of
electronic funds, electronic data exchange, automated inventory management systems,
and automated data collection systems. E-commerce or E-Commerce is part of E-
Business, where E-Business coverage is broader, not just commerce but also includes
collaboration of business partners, customer service, job vacancy etc. In addition to
www network technology, e-commerce also requires database technology or
databases, e-mail or e-mail, and other forms of non-computer technology such as
goods delivery systems, and payment instruments for e- this trade.
iii. Electronic Markets (EMs), a tool that uses information and communication
technologies to conduct or present offers within a market segment, so buyers can
compare the various prices offered. In another sense, EMs are an inter-
organizational information system that provides facilities for sellers and buyers to
exchange information about prices and products offered.
iv. Electronic Data Interchange (EDI), is a means of streamlining the exchange of
large amounts of recurring regular transactions between commercial
organizations. Formally, EDI is defined by the International Data Exchabge
Association (IDEA) as "structured data transfers with an agreed standard format,
which is performed from one computer system to another using electronic
media". EDI is very widely used, usually used by large retail groups, when doing
business transactions with their suppliers. EDI has a standardized encoding of
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trading transactions, so that commercial organizations can communicate directly
from one computer system to another, without the need for hardcopy or invoices,
thus avoiding delays, unintentional errors in file handling and human intervention.
v. Internet Commerce is the use of Internet-based information and communication
technology for trading activities. These commercial activities, such as advertising
in the sale of products and services. Transactions that can be made on the
internet, among others ordering / purchase of goods where goods will be sent by
mail or other means after money is transferred to the seller's account.
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6.0 Conclusion
Based on the results of this paper, we advise the Z Supermarket to be able to review
the information system used on the online shop website https://shop.desoare.com.
Suggestions that can be used in development or improvement for the Z Supermarket,
among others:
Keep the security system to avoid disruption to the use of software and the way
business.
Perform updates on products that are sold regularly.
Perform periodic maintenance especially against backup system so that
protection still exist if happened system failure.
Adding reliable human resources to improve the work system of online shop
operators.
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