ALBASSAMI’S JOB IS NOT FEASIBLE WIHOUT I.T.CHAPTER 11 MANAGING KNOWLEDGE CASE PRESENTATIONAhmet Can Aykut1835917

AGENDACompany Background

Solution of Business Problems

Financial Status Before and After SS

Case Study Questions

Conclusion

COMPANY BACKGROUND Transportation Market in KSA

Location: KSA(Kingdom of Saudi Arabia) 2,15 Million km2 27,6 M population

Estimated Size: ~540 Million $ US annually. >1 Million cars transported inside/outside KSA annually.

Organization:International Group of Albassami Founder:Saeed Al-Bassami(Deputy Head of the Council of Saudi

Chambers of Commerce and Industry’s national transport committee) Founded in 1968 Services[1]:

Air Freight Sea Freight Door to door Domestic/International Courier Warehousing Professional Packing International Freight Forwarding

COMPANY BACKGROUNDOrganization:International Group of

Albassami Daily Workload:

>1.000 Shipping Contracts 2.000-2.500 Bills of Lading(Konşimento) 44 Branches(+30 [8])

Fleet[6]: Largest Fleet in KSA 1100 Large Trucks 14 Small Car Carrier Trucks 15 Medium Car Carier Trucks 37 Large Car Carrier Trucks 250 Trailer Express Trucks 26 Mini Trucks 38 (Two Vehicle)Car Carier Trucks +70 New Trucks(New deal) [7]

SOLUTİON OF BUSİNESS PROBLEMS Business Challenge:

Poor Asset Management No audits on Drivers No Freight Tracking

Operational Reporting Errors Different Truck’s Availability Lists Discrepant Shipping Reports from Different Branches and

Headquarters Competitors:

United Technology for Trading Abdullah Hashem Company Ltd. Al Tala'a International Transportation Co. Limited Almajdouie Group LLC

Management Encourage knowledge-sharing among branches and

Headquarters Increase use of data by managers Identify opportunity to use technology

SOLUTİON OF BUSİNESS PROBLEMS Organization:(New Buss. Models)

Redesign Business Processes Build new channels of information flow Train employes in use of the system

Technology(New services) Deploy clustered Dell servers(Windows 2003) and

over 270 clients(XP) Deploy a DBMS(using Sybase Adaptive Server) and

Clients(Using SQL Anywhere) Deploy SMS (Short Message Service) / POD(Point of

Delivery) Updating Tracking shipment & Customer Info

Deploy a Web Page [9] Online tracking with Bill/Phone Number Rate Calculation

SOLUTİON OF BUSİNESS PROBLEMS Information System:(Customer-Supplier Intimacy)

Online Tracking SMS Tracking SMS on Delivery POD(Print On Demand) Updating

Business Solution:(Competitive Advantage) Up-to-date Client Data, Maintenance and Vehicle

Tracking Info(Every 30 Minutes)(Electro. Data Interchange)

Proper Budget Allocation Improved Investment and Operational

Decisions(Improved Decision Making) Better Audits on Drivers Proper performance monitoringAppraisalsLoyal

Staff

2004(Bef. SS*)

2005( SS* Integ.)

2006(Aft. SS*)

2007(Aft. SS*)

Change(%

)

DESCRIPTION

OPERATIONAL INCOME/EXPENSES

1 140,167,680 143,028,245 146,772,821 145,305,093 2.6 Income2 115,713,037 118,074,528 119,767,075 118,569,404 1.4 Expenditure3 24,454,643 24,953,717 27,005,746 26,735,688 8.2 Gross Income

4ADMINISTRATIVE

EXPENSES

5 2,427,039 2,476,570 2,477,987 2,453,207 0.1General and

Administrative Expenses

6 1,214,568 1,239,355 1,241,123 1,228,712 0.1Salaries of Members

of the Board of Directors

7 432,507 441,334 442,002 437,582 0.2 Fixed Assets8 2,377,743 2,426,268 2,501,254 2,476,241 3.1 Bank Fees9 6,451,856 6,583,527 6,662,366 6,595,742 1.2 Total Expenses

BANKING INCOMES10 18,002,786 18,370,190 20,343,380 20,139,946 10.7 Output Main

Activity(3-9)

11 17,850 18,214 18,755 18,567 3.0 Foreign Currency Valuation Difference

12 903,183 921,615 1,000,278 990,275 8.5 Other Income13 18,577 18,956 20,887 20,678 10.2 Capital Gains14 18,942,396 19,328,975 21,383,300 21,169,467 10.6 Net profit for the

year before Zakat15 495,998 506,120 572,082 566,362 13.0 Zakat

16 18,446,398 18,822,855 20,811,217 20,603,105 10.6

Net profit after

Zakat(15-16)

FİNANCİAL STATUS BEFORE AND AFTER SS İN DOLARS US[4,5]

Average Annual Benefit:$1.6M

Expensed Cost:$2.36M

Payback Period Years: 1.83 years

ROI:%107

Government Taxes assumed constant.*SS: Shipment System

YEARPERSONNE

L($)

TRAINING ($)

HARDWARE ($)

SOFTWARE ($)

PROFIT ($)

2004 0 0 0 0 0

2005 263,250 6722 1200000 365,019 376,457

2006 263,250 0 0 0 2,364,819

2007 263,250 0 0 0 2,156,707

CASE STUDY QUESTİONSWhat systems are described here? What

valuable information do they provide? Enterprise Systems Business Information Value Chain

Shipment Orders

Customer Info Web Services

SMS Tracking

POD Updating

Customer Feedback

Bills of Lading Revenue Monitoring Budget Control

Performance Monitoring

Branch Audit

Driver Audit

Appraisals Shipment Schedules Shipment Capacity Shipment Orders Vehicle Tracking Info

CASE STUDY QUESTİONSWhat value did the IT/IS investments

add to Albassami?Achieving strategic business objectives

Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage

Any other questions?

CONCLUSİON

Indeed, Albassami’s job is feasible with the help of IT Technology

It would be very difficult for the Company to integrate all Branches on a common platform without IT Technology.

REFERENCES: [1] http://www.bassamicargo.com/services.php

[2] http://www.transportrankings.com/nationwide-rankings-september-2012.php

[3] http://www3.weforum.org/docs/WEF_RepoweringTransport_ProjectWhitePaper_2011.pdf

[4] http://www.albassami.com.sa/en/invistors_reports/2005a.pdf

[5] http://www.albassami.com.sa/en/invistors_reports/2006a.pdf

[6] http://www.albassami.com.sa/en/ostol.php

[7] http://www.zahid.com/en/pressrelease/in-the-news/al-bassami-group-signs-contract-with-zahid-tractor-for-70-trucks.html

[8] http://www.arabnews.com/node/406822

[9] http://www.bassamicargo.com/index.php