Introduction

Management information system (MIS) become a pivotal to an organization in supporting as

a tool to achieve its vision and mission. Information systems gain their importance by processing the
data from company inputs to generate information that is useful for managing the operations. MIS
not only include software systems, but the entire set of business processes and resources that are
used to pull together information from functional or tactical systems. The available data from the
system is used by the organization in various way to help the business in managing, executing,
delivering and maintaining all the activities involved in the business. The entire system is designed
to assist the organization take the right decision and actions to meet its strategic and tactical goals.
MIS combines information from multiple systems. These help management staffers better
understand their own departments’ contributions. Manager who’s aiming to improve has to establish
a broader perspective with the help of a great MIS.

The questions or actions should directly relate to tactical or strategic goals. This mean that
the MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS
focuses on the major issues of the business. The manager has to establish a broader perspective with
the help of a great MIS. Therefore, an MIS can track the complete organization within the
organization and enable an easier method for analyzing independent processes. These processes
consist of organized work activities information and knowledge to produce valuable products or
services. By integrating an information system, a company is following the latest business trend. It’s
a great way to speed up the progress of the company. The company no longer spend a lot of time and
money on unnecessary activities rather put the focus on the main goal ahead.

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A. Firm Profile

The 7-ELEVEN convenience store concept was created in 1927 by the Southland
Corporation which, at that time, operated mainly as an ice, milk, and eggs retailer. By 1946, the
Southland Corporation introduced a new convenience service that involved prolonging the opening
time from 7 a.m. to 11 p.m. This was how the legendary 7-ELEVEN name came about. On April 28,
1999, The Southland Corporation officially changed their name to 7-ELEVEN INC. To date, 7-
ELEVEN is present in over 20 countries and regions. Every day, 200 million consumers of different
race and lifestyles enjoy the 24-hour service at 7-ELEVEN. This significantly promoted 7-ELEVEN
as a first-class business and brand worldwide. 7-Eleven Malaysia Holdings Berhad through its
subsidiary 7-Eleven Malaysia Sdn. Bhd. is the owner and operator of 7-Eleven stores in Malaysia.
Incorporated on 4 June 1984, 7-Eleven Malaysia has made its mark in the retailing scene and have
been a prominent icon for over 28 years. 7-Eleven Malaysia is the single largest convenience store
chain with more than 1,905 stores nationwide, serving over 900,000 customers daily.

7-Eleven stores can be found across bustling commercial districts to serene suburban
residential compounds throughout Malaysia, from petrol stations and LRT stations to shopping malls
and medical institutions. 7-Eleven is Always There for You. Each 7-Eleven store carries over 2,200
SKUs, including our proprietary brands such as Slurpee frozen beverages and Big Gulp fountain soft
drinks. The variety of services available at 7-Eleven include the bill payment service, sale of mobile
phone reloads cards, IDD/STD, Touch N Go reload, internet games' starter packs, reloads via MOL
Point top-up, ink cartridge refill, photocopying, fax, automated teller machine (ATM), and bulletin
board for neighbourhood community notices. In 2009, 7-Eleven introduced fresh brewed coffee and
other hot beverages together with packaged fresh food and bakery for the convenience of customers
looking for ready-to-eat hot food.

All food items sold in 7-Eleven are certified HALAL and undergo stringent quality control to
ensure tastefulness and freshness. Being the premier neighbourhood convenience store, community
building is in the heart of 7-Eleven’s corporate social responsibility framework. 7-Eleven

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Community Care is a non-profit entity set up to implement 7-Eleven Malaysia’s corporate social
responsibility and philanthropic initiatives. We believe in giving back to the society we operate in,
with a commitment to support the underprivileged groups and to sustain environmental conservation
effort at the local community level across all regions.

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B. Business Start-up

Michael Porter’s Five Forces model are ease of entry, threat of substitutes, bargaining power
of buyers, bargaining power of suppliers and industry rivalry. The competitive advantage that
7Eleven has using these five forces is it has raised the barrier of entry for other competitors to enter
the convenience store market as new competitors will require a huge capital investment to
implement the RIS in their business to be competitive also, hypothetically being the first in the
market,7-Eleven could have made contracts with the government to not allow other 24-hour
convenience stores in the market for a certain time period, such as Astro had done, thus having a
monopoly market in the beginning of their operations which will allow them to snare a bigger
market share.

Next, the threat of substitutes force shows that using the RIS 7-Eleven has upgraded their
technology to provide better service, thus ensuring that their customers do not switch to their
competitors such as KK-Mart or Hop-In. The third force is the bargaining power of buyers where 7-
Eleven’s customers are dependent on its 24-hour service and product rather than the other way
around. 7-Eleven dictates the price and availability of its products, where being a convenience store,
customers visit the store for emergency items when regular shops are closed and being the pioneer in
the market, 7-Eleven’s brand is the first that comes to mind when something is required urgently at
any time of day.

Next, the bargaining power of suppliers shows that suppliers do not have the monopoly on 7-
Eleven’s supplies where 7-Eleven has many potential suppliers to choose from and can easily switch
from one supplier to the next in the event of price increase or unavailability of product without any
effect to price or quality.

Finally, the industry rivalry force shows that in the beginning 7-Eleven had a monopoly in
the convenience store industry, but current market shows that they are competitors in the market

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offering the similar services. However, 7-Eleven is still the first brand that is the people’s choice and
its services of Slurpees, Big Gulps and hot and fresh bakery goods has made a product
differentiation and unique statement in the market. Currently, there are only about three to four other
rivals in the market which includes the Kedai Mesra in the Petronas stations which are open for 24
hours. (Porter, 1980)

Major key milestones of its development and achievements.

Year 2017

 Partnered with Tenaga Nasional Berhad (TNB) to roll-out electric bill payment in 7-Eleven
stores nationwide on 14 September 2017

 PMAA Dragons of Asia Awards 2017: Dragons of Malaysia Awards 2017 (Gold and Silver
for Best Brand Loyalty Campaign; and 3 Bronzes for Best Social Media or Word of Mouth
Campaign; Best Brand Building and/or Awareness Campaign; and Best Cause, Charity
Marketing or Public Sector)

 Partnered with Lazada Malaysia to launch Lazada Over-the-Counter Payment Service in 7-

Eleven stores nationwide on 11 May 2017

 Partnered with Alipay to be the first Malaysian retailer for Alipay Mobile Wallet Acceptance
in 7-Eleven stores nationwide on 22 May 2017

 CSR Malaysia Awards 2017: Company of the Year Award (Retail Category) For Pioneering
Corporate Social Responsibility Initiatives

 Putra Brand Awards 2017: Bronze in Retail Category

Year 2016

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  Created a new menu for Fresh to Go products with Brahims SATS Food Services

 Partnered with BOXit to launch BOXit Parcel Locker Service to selected 7-Eleven stores on
19 May 2016

 Opened its 2000th store at Scott Garden on 20 July 2016

 Putra Brand Awards 2016: The People’s Choice (Bronze in Retail Category)

 Launched its 7-Select House Brand Product: Artissue Collection

 PMAA Dragons of Asia Awards 2016: Dragons of Malaysia Awards 2016 (Gold & Silver for
Best Brand Loyalty Campaign)

 Successful bid to run retail spaces at MRT stations

 4th National Dual Training System (SLDN) Program Convocation

Year 2015

 The Asset Triple A Country Awards 2014-Malaysia-Best deal-7-Eleven US$225 million IPO

 Malaysian Investor Relations (IR) Awards 2015 (The best IR for an IPO in 2014)

 McMillan Woods Global Awards for 2015 (Consumer Goods and Branding Acumen)

 BrandLaureate Special Edition World Awards (Brand Excellence in Retail)

 Putra Brand Awards 2015 (Retail)

Year 2014

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 Launch a new Next Gen concept stores with dining area, wide To Go selection menu and
variety of new in-store services

 Awarded Malaysia Book of Records for most number of stores

 7- Eleven listed on Bursa Malaysia on 30 May 2014 as 7-Eleven Malaysia Holdings Berhad
(SEM)

 7-Eleven partners up with Touch 'n Go and MOL

 7-Eleven partners up with BLoyalty Sdn Bhd for BCard

 Retails Asia Pacific Top 500 Award for 2014 (Top 10 Retailers - Malaysia)

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Business Problem

Retail management information systems include the use of hardware, software and
procedures to manage activities such as planning, inventory control, financial management, logistics
and point of sale transactions. Retail management information systems support distributed stores by
linking them. By allowing the instant exchange of information, store managers can stay in contact to
more effectively control profits for the whole company. The system should support product
management. It should also enable detailed analysis of customer data. A flexible system allows
managers to set prices for variable time periods based on the store location. To meet the needs of
sales and inventory managers, retail management information systems include a mobile user
interface. Supporting the basic functions of procurement, storage and delivery, a retail management
information system allows a manager to manage customers, inventory, suppliers and product sales.
The system allows tracking of purchase orders and updating inventory records dynamically.
Integration between payments, inventory and transactions improves operations and reduces costs by
preventing duplicate entries.

By tracking inventory effectively customer requests are responded to more quickly. By being
able to respond expediently the store can also improve service, expand their customer base and
increase profits. Accessing data easily allows you to identify opportunities to improve waste
reduction, recycling materials and choosing environmentally friendly packaging. These strategies
enable a profitable business while system safeguards ensure adherence to legal restrictions on
pricing, promotion and other policies. (Tara Duggan, 2009). 7-Eleven, Inc., the world's largest
convenience retailer, has more than 5,000 custom, factory-bundled technology packages to help 7-
Eleven become an Adaptive Enterprise. Retailers like 7-Eleven that offer 24-hour convenience,
seven days a week, must have a consistent, predictable IT infrastructure, yet one that can be easily
adjusted to capitalize on change in their business environment.

The benefits of implementing the Retail Information System can be seen in the way the of
synchronizing business and information technology (IT) in order to capitalize on change whereby 7-
Eleven can improve service for its 6 million daily customers across the country by reducing
operating and acquisition costs and increasing efficiency and productivity from products and

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services, will help 7-Eleven maximize its return on IT investment. This technology helps 7-Eleven to
differentiate itself from other retailers in the way they run their stores, select and distribute products,
work with suppliers, serve customers and communicate to their key stakeholders by keeping record
of the daily transactions and save this data in databases (EDS). With this reliable technology they
can stay ahead of constantly changing business conditions, analyze customer trends and jump on
new business opportunities by analyzing information from above, about customer demand, pricing of
products and customer’s interest in new products and identifies fast selling items, seasonal items and
not-so-profitable items.

The new technology supports 7-Eleven's Retail Information System (RIS), streamlining its
product traffic management process and allowing store operators to use in-store computers to re-
order best-selling inventory, remove slow-moving items from store shelves and increase same store
sales by stocking products of high demand. A typical 7-Eleven store, carrying about 2,500 different
items, can now better tailor its inventory to meet customer demand. (Dayna Fried, HP, 2004.)
The one potential disadvantage of 7-Eleven’s Retail Information System that may happen is when
employees are too dependent on the RIS and a power failure or system failure occurs for a time
period that their UBS or server may not be able to support. In this event, employees will be unable to
perform even the most basic function of re-ordering the inventory as they will be unfamiliar with
what are customer’s needs and demands. Employees will have lost touch with the customers and this
will cost the company valuable money and time. Employees must also be able to interpret data that
they have in hand, so training in these circumstances is vital to the company operations.

In my opinion, the RIS is an important tool that 7-Eleven can use to improve its marketability
in the convenience store industry. It allows 7-Eleven to function way ahead of its competitors and
maintain its customers for a long time to come. 7-Eleven can anticipate customer’s needs ahead of
time allowing them to satisfy their customer’s demands. This ensures customer loyalty which
translates into higher sales for them. Other than sales, RIS also gives 7-Eleven the capability to save
cost by working with suppliers to only order items that are required thus reducing wastage. The

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Retail Information System allows 7-Eleven to diversify into other markets which will also increase
profits. The Retail Information System has made 7-Eleven synonymous with convenience
guaranteeing that the moment customers need something, its 7-Eleven they think of first.

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Addressing the challenges

A formal IT internal governance structure is in place in 7 Eleven. The company is adopting a

strategic approach to governing IS in that will complement current MIS practices. Key issues are
governed by framework and the management team is responsible to make strategic decisions for IT,
the availability of an IT vision and a comprehensive IT plan. The accessibility to a comprehensive
set of IT policies, the setting of service targets to measure IS performance, rigorous risk management
practices.

As IT becomes increasingly crucial to the support, sustainability and growth of business, it is

imperative for 7 Eleven management team to understand how to effectively measure IT
performance. The responsibility to control the formulation and implementation of IT strategy to
ensure the fusion of business and IT is called IT governance. The purpose of IT governance is to
direct IT endeavors to ensure that MIS’s performance of 7 Eleven meets the following objectives:

IT is aligned with the Council’s businesses and realizes the expected benefit. All of the application
systems used by the company have been aligned with the objective of the company. None of the
application system used by the company is fail to deliver its functions in supporting the efficiency of
the business. Business gains the expected benefits from the application system that has been invested
by the company. For example, the ordering system from customers is very informative database that
register every details of ordering and custom request made by the customers.

IT risks are managed appropriately. Internet fraud has grown even faster than internet use itself.
Every company is exposed with the downstream liability where innocent and unsuspecting
organizations that have their networked computers hijacked for use as pawns in attacks against other
companies’ network. Therefore, the company has considered its legal obligation to keep the system
secure. The company ensure with the laws governing statutory requirements, liability avoidance and
legal facilitation of prosecution for unauthorized access and use. 7 Eleven has put its greatest effort
to protect themselves against such liability with using appropriate antivirus defenses. The company

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always aware and ensuring the systems must be kept secure, not only from a legal standpoint, but for
its commercial dealings as well.

Management team. The business environment is the combination of social, legal, economic, physical
and political factors that affect business activities. Significant changes in any of these factors are
likely to create business pressures. Binasat has IT support systems that enables the management
team to respond to these pressures. The system in place such as strategic systems and customer-focus
are developed for this purpose. The management team has satisfied with the functional of the
systems. It would lead the management team make right decision as their respond to the business
environment pressures.

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Lesson for Manager

By implementing the Retail Information System (RIS), 7-Eleven seeks to address the following forces
which are ease of entry, bargaining power of buyers, bargaining power of suppliers and industry
rivalry. The RIS has ensured that 7-Eleven has raised the bar thus increasing the capital input for new
entrants into the market and prevent other competitors from coming into the market. Also, the quality
of service expected by consumers is much higher, so new entrants will have a difficult time drawing 7-
Eleven’s existing customers away. The technical knowledge for these new entrants must be up-to-date
and the learning curve may slow them down.

With the RIS the bargaining power of buyers will be less as customers will be more loyal to 7-
Eleven who knows what their needs and meets them. The RIS ensures that products meeting the
customers demand are always in stock, which makes the customer feel valued and important, which in
turn ensures their loyalty. 7-Eleven has always set the price for their products and even though it is
slightly higher than the hypermarkets, customers still go to the stores because of its 24-hour service
which they tradeoff against the price. The RIS allows 7-Eleven to be customer focused by selecting the
niche market and achieving cost leader ship and product differentiation by considering customer taste,
choices and preferences.

Having the RIS allows 7-Eleven to have more power to control the bargaining power of
suppliers where the technology gives 7-Eleven the advantage to dictate the price ensuring that they are
getting the best price and service. Thus, suppliers do not have a monopoly on the products, even big
suppliers such as F&N or Coca-Cola will not be able to raise their price. In industry rivalry, being the
larger convenience store franchise, implementing the RIS gives 7-Eleven a huge advantage over its
competitors by setting the industry standard. This will allow 7-Eleven to have a high intensity of
rivalry between itself and its competitors. Customers instinctively still turn to the 7-Eleven brand or
logo when they require any purchases showing that 7-Eleven is still the preferred store thus it is
considered the dominant player in the industry.

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Conclusion

The role of the MIS in an organization can be compared to the role of heart in the body. The
information is the blood and MIS is the heart. In the body the heart plays the role of supplying pure
blood to all the elements of the body including the brain. The heart work faster and supplies more
blood when needed. It regulates and controls the incoming impure blood, processed it and sends it to
the destination in the quantity needed. It fulfils the needs of blood supply to human body in normal
course and in crisis.

The MIS plays the same role in the organization. The system ensures that an appropriate data
is collected from the various sources, processed and send further to all the needy destinations. The
system is expected to fulfil the information needs of an individual, a group of individuals, the
management functionaries: the managers and top management. In my opinion, the MIS is an
important tool that 7-Eleven can use to improve its marketability in the convenience store industry. It
allows 7-Eleven to function way ahead of its competitors and maintain its customers for a long time
to come. 7-Eleven can anticipate customer’s needs ahead of time allowing them to satisfy their
customer’s demands. This ensures customer loyalty which translates into higher sales for them.
Other than sales, RIS also gives 7-Eleven the capability to save cost by working with suppliers to
only order items that are required thus reducing wastage. The Retail Information System allows 7-
Eleven to diversify into other markets which will also increase profits. The Retail Information
System has made 7-Eleven synonymous with convenience guaranteeing that the moment customers
need something, its 7-Eleven they think of first.

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Reference

Website

http://www.7-11.com.tw/en/aboutus/a10.htm
http://www.7eleven.com.my/7-eleven-milestones
http://www.7eleven.com.my/
http://www.7eleven.com.my/about
https://www.linkedin.com/pulse/20140901121616-270946654-role-impact-and-importance-of-mis

Book

(Porter, 1980) (http://www.maxi-pedia.com/Five+Forces+model+by+Michael+Porter)

(accessed 11 November 2010)

(HP Case Studies, n.d.) (http://h10144.www1.hp.com/case-studies/7-eleven.htm)

(accessed 11 November 2010)

(Tara Duggan, 2009) (http://www.ehow.com/about_5564925_retail-management-information-

systems.html) (accessed 1 November 2010)

(Dayna Fried, HP, 2004.) (http://dssresources.com/news/246.php)

(accessed 1 November 2010)

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