a) Executive summary This is a summary explaining the elements which will be presented in this report on telecommunication service provider,

Celcom. Firstly, we will be discussing about the impact of IT/IS systems used in the telecommunication industry. Next, we will be presenting a value chain diagram and discussing how Celcom Aircash (M-commerce), CRM, ERP, Celcom website and transaction processing cycle is used by Celcom in their daily business processes. This report will also be discussing on the impact of Porters five competitive forces (The threat of entry of new competitors, the bargaining power of suppliers, the bargaining power of customers (buyers), the threat of substitute products or services, and the rivalry among existing firms in the industry)on Celcom and how Celcom uses Porters five forces and competitive strategies in terms of IT/IS systems. In the later part of this report, we will be explaining how the company uses knowledge management system in order to gain the competitive advantage.

b) Discuss the impact of IT/IS on your selected industry As we all know, our world is moving towards the era of information age and this has made the telecommunication industry to be expanded to support the growth of technological advancement for better services demanded by any particular nation. In Malaysia, telecommunication industry also plays an important role in the development of the country. By using IT/IS systems such as CRM systems which is known as the customer relationship management, an enterprise can build a database about its customers that describes relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, and know what other products a customer had purchased, and so on. By using this technology, the telecommunication industry can always keep track on how to improve their customer satisfaction .For example, if there is no coverage of Celcom network in a particular area, the management can try to diagnose the problem encountered in that area as soon as possible to show that we do care about our customers. By using this technology, we can reduce customer complaints, increase customer satisfaction and have a good relationship between our customers. Besides that, the other famous IT/IS systems applied or used in the telecommunication industry is the ERM (enterprise resource management) system which describes software that lets an enterprise to manage user access to its network resources efficiently. ERM software generally lets a user sign on to different enterprise systems and applications using the same password. ERM software makes it easy for the enterprise to control and keep track of which systems and resources each user has access to, and provides consistent standards for creating and changing passwords. One system administrator can usually manage user access to all platforms - UNIX, mainframe, Windows NT, and so forth - and to the applications on these platforms that require controlled access. For example, in a telecommunication industry, it will be very convenient to use this software because we can analyze what is the customer demand and how they want a product to be, so we can use this analysis to come up with a new software or package to attract our customers attention. The other IT/IS systems used in the telecommunication industry is the ERP (Enterprise resource planner)system which is used to describe a broad set of activities supported by multi-module application software that helps a manufacturer or other business manage the important parts of its
2

business. The benefit of using this system in the telecommunication industry is that it can sustain coordination with complicated, multifaceted operations. Since the enterprise resource planning system contains numerous software modules that work to combine fundamental activities across operating departments, this system would allow the possibility of checking upon different departments using an incorporated database. This would promote efficiency of the whole organization since various divisions of the company are efficiently unified. A good enterprise resource planning system facilitates easier access and work flow, which are important aspects that could ensure better work efficiency. Since different departments of the company share a unified database, proper and faster business communication is implemented within the workplace. Thus, this would avoid wasting much time in coordinating each and every changes made by employees and eventually ensuring that all the updates are always been able to be accessed by all involved departments and employees.

c) Introduction Celcom Axiata Berhad is a subsidiary of one of the major players in the Malaysian mobile telecommunications market, Telkom Malaysia. It already becomes one of the most successful 3G networks in Malaysia with over 7 million subscribers and 2 million 3G subscribers. Celcom has become the leader of the telecommunication for 3 continuing years. Celcom consists of the best
3

nationwide coverage, best global coverage, best customer service, and it has the commitment to serve and it is flexibility. It benefits consumers from unbeatable quality, coverage and customer service by reducing their costs. For example, power 38, business executive plan, business 1+3, business prepaid, and business satellite. Celcom Axiata Berhad is a subsidiary company under Axiata Group Berhad. The Group is the emerging leader in Asian mobile telecommunications. It is one of the largest telecommunications companies in the region, has extensive operations and businesses in 10 countries in Asia, providing a comprehensive range of mobile communication services to a combined base of over 94 million subscribers. In order to become the best enterprise in the country, it is important for a company to have vision and mission. First of all, it is important to pleasure the customers. Next is maximizing the investor returns by building a profitable enterprise. Win-win relationships can be built with all the business partners by mutual trust, respect and support. To delegate, flourish and reward the people in order to become Malaysias favored employer. Work to expand the business throughout the world and to build the reputation of its company to make it well-known in everywhere. Honesty, professionalism and transparency must always be maintained at the highest levels. To make Celcom a premium brand, it is important to work together with all of the stakeholders. By following this vision, Celcom will be able to create a brand that typifies the soul of independence, eagerness, assurance, dynamism, everlastingness, and worldwide. Celcoms vision is to satisfy their customers by delegating them options and creative solutions that lead them to live it to fullest.

Furthermore, Celcoms assurance is to assure that their customers are being pleasured in every aspect of the services. In order to do so, Celcom assures to accomplish for the excellence. Celcom assures that honesty and professionalism are being maintained at the highest level. Celcom also assures to always be positive, confidence and active in all that they do and finally Celcom assures to constantly serve every customer with warm-hearted in every aspect of their services.

d) Effective implementation of IT/IS in your selected company i) Draw a value chain diagram for the company of your choice and list one IT/IS used in each activity.

ADMINISTRATION AND MANAGEMENT: Intranet HUMAN RESOURCE: Workforce planning system TECHNOLOGY: Customer Relationship Management
5

PROCUREMENT: Transaction Processing System Inbound Logistic (Supplier) -Enterprise Resource Planning Operations Sales and Marketing -Website -Database Marketing System Service -Website - Mcommerce -Customer Relationship Management Outbound Logistic (Dealer) -Enterprise Resource Planning
Firms Value Chain

-Enterprise Resource Management -Data Warehousing -Data Mining

ii) From the above, choose five IT/IS and discuss how each IT/IS is used by the company of your choice in the daily business process. Celcom AirCash (M-commerce) Celcom has come up with Celcom Aircash which is a form of mobile bill payment service. Since the launch of Celcom AirCash in 2009, it has provided customers instant access to their financial transactions anytime and anywhere through their mobile phone, enabling over 11 million Celcom customers to perform mobile financial transactions such as payment of utility bills ,payment to Celcom postpaid, Telekom Malaysia (TM), Tenaga Nasional Berhad (TNB), and Syarikat Air Johor (SAJ). It offers customers the convenience of mobile using Celcom AirCash facilities anytime, anywhere. Payment for Celcom postpaid via AirCash will be processed in real time. There will be no more hassle to pay any bills on time, even when you travel overseas, as there are no charges for access and service fee. Besides that, AirCash allows Celcom customers, both 2G and 3G to use their mobile phones to transfer money to other AirCash users, remit money to foreign countries (initially to Indonesia), and top up mobile airtime reload to customers own number or others as well as request transfer airtime to their families and friends locally and to nine other countries namely Bangladesh,
6

China, India, Indonesia, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam. Also, customers are able to add money to (Cash-IN) or withdraw money from (Cash Out) their AirCash account at any Celcom branch and selected Celcom AirCash dealers. In order to access Celcom AirCash, customer simply need to dial *133# from any mobile phone to register. Access is free of charge. Since Celcom is using USSD (Unstructured Supplementary Service Data), all transactions are secure, where the subscribers PIN and transactions information are not stored on the customers SMS (Short Messaging Service) outbox. This is to ensure customers peace of mind and enhance Celcoms credibility and reliability as the ultimate telecommunications service provider in Malaysia. All transactions will be confirmed via SMS for reference. As one of the mobile network operators in Malaysia to offer mobile financial services through a dedicated USSD channel, Celcom strives to make Celcom AirCash the preferred mobile payment platform for mobile users in general. Now, with Celcom AirCash, customers can manage their financial account and social duties at the end of their fingertips by simply dialing the 3-digit code and select their transactions options. This method of transacting is applicable via any mobile phone through USSD and is being accepted globally due to its security, ease-of-use and real time response factors.

CRM(Customer Relationship Management)System

Celcom is also using CRM system. The advantage of using CRM is that all the information for each customer will be logged. When a customer calls the service centre, the system will automatically scan the database for phone numbers to see if it can find a match. If the system identifies the customer, the customer card will automatically pop up with all the history. At the same time, new information achieved by the call will be logged. The system also provides an advanced segmentation tool that suggests which customers to call, based on who are the most likely ones to make a purchase. For each customer card, a seller (the employee) receives; the system will suggest what services he or she should offer to the customer. The proposal is based on the historical development of the customer in the client's own database (the products he has ordered/cancelled, information from Statistics Norway, personal information and ultimately the seller's history). The CRM system has also incorporated a separate e-mail generator. A seller (the employee) just
8

clicks on an icon on the customer card to send e-mail to a customer. By this solution, every mail correspondence will also be logged to the customer. This way this important information will not be lost if an employee ends his or her career and their ordinary e-mail account is deleted. CRM supports the three phases of the relationship between Celcom and its customer. The three phases include acquire, enhance and retain. In the acquire phase, CRM helps Celcom to acquire new customer by doing superior job of contact management, sales prospecting, selling, direct marketing and fulfillment. These are used to help customers perceived the values of a superior products offered by Celcom. In the enhance phase, web-enabled CRM account management and customer service and support tools help keep Celcoms customers happy by supporting superior service from a responsive, networked team of sales and service specialists and business partners. CRM sales automation and direct marketing and fulfillment tools help Celcom cross-sell and up-sell their customers, thus increasing their profit to the business. The value perceived by customers is the convenience of one-stop shopping at attractive price. In the retain phase, CRM analytical software and databases help Celcom proactively identify and rewards its most loyal and profitable customer to retain and expand their business via targeted marketing and relationship marketing programmes. The values perceived by customers are of a rewarding personalized business relationship with their company.

ERP (Enterprise Resource Planning)System

Besides using the CRM and Celcom AirCash (m-commerce) system, Celcom is using Enterprise Resource Planning (ERP) system. ERP is a system which coordinates both internal and external management information. Usually ERP works relational database system by coordinating every important system of the organization into a single database. ERPs system track business resources and the status of commitments made by the business, no matter which department has entered data into the system. ERP software suites typically consist of integrated modules of manufacturing, distribution, sales, accounting and human resource applications. Some of the sales and marketing processes supported by ERP are sales analysis, sales planning and pricing analysis while typical distribution applications include order management, purchasing and logistics planning. ERP systems support many vital human resource processes, from personnel requirements planning to salary and benefits administration and accomplish required financial record keeping and managerial accounting applications. The main benefit Celcom uses ERP is time and cost saving. Celcom employees can share information among the entire organization in real time without geographical barriers. No matter there is branches or centers throughout Malaysia, information will still be the same when they
10

retrieve it from the server. Celcom employees could save time in looking for information which is the most updated because ERP can eliminate synchronizing changes between multiple systems. Besides, Celcom can make more accurate decision based on the information by using ERP. This is because ERP improves the accuracy of information and each systems information was connected when it combined together. Moreover, it can increase the quality and efficiency. This is because ERP creates a framework for integration and improve Celcom internal business processes that results in significant improvement in the quality and efficiency of customer service, production and distribution. Website The most common IT/IS system used is the Celcom website. This web site is where anyone including you and me who could access only by typing the name Celcom in the search box and we will have so many results directing us to the Celcom main page. Web site is a web page containing images and details of an organization which is used to promote it products. Besides you can access the website for free and no charge will be imposed. Celcom website is www.celcom.com.my. There is a lot of information provided in the web site such as the latest announcement, paying bills online, downloading musics, enhancing services, switch to better plans, online customer service and many more. By having this web site, customers can carry out their transaction more efficiently and effectively. Besides, even if customers have problems, they do not need to go to the Celcoms centre because they can solve their problem online by asking help trough online customer service. In addition customer can check online whether they have paid their bills or not and they do not have to wait for the bill statement to be posted to their home. They can settle their bills online and print the receipts by themselves and this really saves the customers time because they do not need to go to the center to make payment while waiting in a long queue. Nowadays, everything is made so easy with the advancement of the technology.

Transaction Processing System A transaction processing system is an operational system whereby data are recorded and processed whenever there are business transactions such as payments, withdrawals, sales,
11

purchase and other related transactions which has occurred. Transactions can be done via ecommerce or through retail stores with customers. After transactions had been done, data about customers, products, store and others will be processed and stored. This can aid additional transactions in company such as inventory changes, customer billing, and changes in account receivables and generate more data. Transaction processing system is vital in the operation of the company. It is needed to process those data to generate more useful information. Celcom uses online transaction processing system on e-commerce business processes. Customers can make payments; check the amount that is needed to pay their bill and so on. This eases customers and the company in business transactions. Both parties can check the details and reach to each other using online customer services provided. Payments of bills can be processesed immediately after customers pay online. Transaction processing system involves a five-stage cycle of data entry, transaction processing, database maintenance, document and report generation, and inquiry processing activities. The first step of data entry is by properly recording and editing data of customers including transactions which involves the database. Secondly is the transaction processing which is divided into two different ways: batch processing and real-time processing (online processing). Batch processing is where data are accumulated over a period of time and process periodically whereas data in online processing are processed immediately after a transaction. Many online transactions can still function even if some parts of the system fails due to capabilities of fault tolerant computer system that provide fail-over capability to back up component and fail-safe capability so that system continue its operation when system fails. Next is the database maintenance which is maintained by transaction processing system so that the data would not be outdated. Therefore, the system updates the Celcoms database to reflect changes from day-to-day transactions. For example, Celcom customers might change their prepaid card settings online; database maintenance ensures these changes reflect in data record in Celcom database. The cycle is then followed by document and report generation. Examples of transaction documents are purchase orders, invoices, sales receipts, customers postpaid bill statements and others settings. Transaction reports might take the form of transaction listing like reports that describe errors encounter during processing. The last step is the inquiry processing. Customers can inquire via Celcom online customer service using query languages. The responses

12

are displayed in different forms. Customers can inquire the bill statement in brief; packages detail and any other doubts online and they will get immediate response.

e) Strategic use of IT/IS for competitive advantage Threat of new entrants New entrants to an industry can raise the level of competition, thereby reducing its attractiveness. The threat of new entrants largely depends on the barriers to entry. It means that, threat of entry
13

to enter a market is low because significant barrier to entry exist. Entry of new competitor is will intense the competition in the industry. The larger the pool of new entrants will result in more changes of intense competition, Barriers to entry, however can restrict the firms from entering the market, more number of entry barriers will make it difficult for new entrants to exploit the opportunity of the new market. Telecommunication Service Company has low of threat of new entrants because they have several barriers. Firstly, every potential entrant will need to obtain a license through MCMC. However, it is quite difficult and expensive to get an approval from MCMCs to obtain the license due to strict requirements and lots of procedures. Yet, once obtained, a licensee may apply for the renewal of its individual license prior to expiry. Other than that, an expensive license, telecommunication industry also require high fixed costs and have to spend relatively large amount of money on network equipment and to maintain development and it might reach a few billion Ringgit Malaysia. Besides that, the government of Malaysia had granted sole right for certain projects to existing telecommunication providers (e.g. Telekom has sole right for both partnership of submarine cable for the broadband service and also HSBB). However, apart from TM, other Network Facilities Provider (NFP) licensees: Maxis, Celcom, DiGi and Time dotCom can build their own network and cable landing stations should they choose to invest in the facility. Similarly, broadband license are also granted to some private telecommunications operators. Finally the advanced technology required in telecommunication industry does not only incur high capital investment but also need professional knowledge and skills (human resources) to ensure success in this industry as it is not easy to copy or imitate.

To overcome this threat of new entrants, Celcom can create barriers to entry by introducing innovative products or using IT to provide exceptional service .For example Celcom is working together with NetCracker Technology which is a subsidiary of NEC Corporation and is the leading provider of Telecom Operations and Management Systems to Communications Service Providers worldwide. By joining force with NetCracker Technology, Celcom will be able to reduce operating costs, enhance quality of service, and generate superior customer experience. Celcom Axiata Berhad has selected NetCrackers Telecom Operations and Management (TOMS) to support an aggressive next-generation network rollout program and to improve assurance processes. NetCrackers TOMS will provide Celcom with a comprehensive mobile
14

infrastructure management solution mainly on asset centralization including Celcoms satellite network, next-generation network rollout processes, and key capabilities for the fulfillment of value-added services. NetCrackers TOMS capabilities will create centralized management for Celcoms transmission, core, and radio networks and will provide the latest, throughout view of all network data through Network Management System covering all network technologies. Besides that, NetCrackers TOMS customer management and quality assurance capabilities will help Celcom by enabling them to provide outstanding quality of service, diversify offerings, and exceptional customer experience in order to compete with other competitors and thus making it hard for new entrants to compete with Celcom. Bargaining Power of Buyer Generally, the bargaining power of buyers is high when buyers have many choices and low when buyers have few choices. Consolidation among communication service providers due to convergence leads to greater dependence on a few large clients, which means higher bargaining buyer power. Due to pressures on their profitability, service providers are increasingly looking at lowering their operating costs and capital expenditure. Besides that, with increased choice of telecom products and services, the bargaining power of buyers is rising. Telephone and data services do not vary much, regardless of which companies are selling them. For the most part, basic services are treated as a commodity. This translates into customers seeking low prices from companies that offer reliable service. At the same time, buyer power can vary somewhat between market segments. Bargaining power of buyers is greater in Telecommunication Company which means there are few dominant buyers and many sellers in the industry and products are standardized. Buyers threaten to integrate backward into the industry but suppliers do not threaten to integrate forward into the buyer's industry Celcom has used cost leadership strategies to reduce the bargaining power of buyer. It has launched few plans such as Celcom Exec 20, Celcom Exec 50, Celcom Exec 250, and Celcom 1+5 plan. For Celcom Exec 20, all you need to pay is just RM20 for access fee per month. You can find out that it is the most affordable amount. It also costs only 20 cent per minute on calls and 10 cent per SMS. It has the fastest, widest, clearest mobile network in the country. Besides that, by choosing Celcom Exec 50, the plans will automatically discount up to 30% every month. It has the free mobile internet and call within network on weekends. After 30% discount, the call rate is just 10.5 cent per minute. It consists of only RM50 per month. As for Celcom Exec 250,
15

this is the only all-in-one plan with free unlimited broadband. It consists of 2000 minutes in either voice or video calls, or SMS. Enjoy free Celcom broadband of high-speed internet connectivity with speeds of up to 3.6Mbps. it is a comprehensive plan that covers all your mobility needs. Celcom 1+5 is to keep your family happy together for free and to stay in touch with everyone else to enjoy even more savings. You can enjoy the free voice calls, SMS, MMS, and video calls within your family. Celcom has also used innovation strategies by coming up with a new system known as Virtual Business Phone System. It is called the Celcom Biz Virtual PABX or also known as Private Automatic Branch Exchange. The aim of this Virtual Business Phone System is to eliminating the need of investing or setting up costly PABX system in the office premise. Celcom Biz will take over the role to offering its service on hosting the PABX system and facilities to its corporate customers. The Virtual PABX system integrates quickly, easily with existing phone lines plus hardware, and can also be used in conjunction with other mobile and smart phones. It does not require any additional hardware installation as all the Virtual PABX hardware is supported and maintained at Celcom. Therefore by reducing the bargaining power of buyer, Celcom is ensuring that their customers remain loyal to them and attracting new customers to use their products. The Bargaining Power of Supplier The bargaining power of suppliers refers to more suppliers a firm has, the greater control it can exercise over its suppliers. The bargaining power of suppliers is high when buyers have few choices and low when buyers have many choices. Bargaining power of supplier will affect the intensity of competition, especially if there are huge of supplier, less availability of raw material and the cost of switching supplier or raw material is high. These attributes in the industry gives power to the supplier to enforce term and conditions on manufacturer and charge high cost of raw material. In telecommunication Services Company, increasing standardization and commoditization of network components leads to more competition among component suppliers, thus lowering supplier bargaining position. Besides that, overcapacities have led to lower bargaining power of Semiconductor suppliers.

16

Celcom uses lock in suppliers strategy to encourage the suppliers to stay with Celcom rather than going to their competitors. Many suppliers in Malaysia are more capital oriented than service oriented. "More-for-more" marketing strategy is the strategy which the suppliers can provide you with the best for the highest cost. This makes the purchasing power to be vested more on the hand of the market leaders, and this is another competitive advantage Celcom has over its competitors in the Malaysian market. Threat of substitutes The threat of substitute products or services refers to substitutes, customers can purchase if your prices too high. The threat of substitute products or services is high when there are many substitutes for an organizations products or services and low where there are few substitutes. In case of dissatisfaction with any of the features, customers can easily switch to the competitors product because they have the almost exact or same kind of substitutes. Many of the substitute product and services have emerged in voice, data and entertainment in telecommunication sector. Celcom has used customer-orientation strategies to deal with the threat of substitutes in order to make the customers happy. For example, call packages consist of Power38 and Business Executive Plan, Business 1+3, Business Prepaid, and Business Satellite have been introduced. Besides that, all the phonebook details and business cards will automatically be stored in a Phonebook system by using SIM card rescue. Its storage is unlimited and is a free service. Customers do not need to worry about losing their phonebook details and business cards anymore if they use this system. The Celcom has also created Simera 32 Java SIM cards for the initial phase of the project. Simera 32 SIM cards allow Celcom to provide its subscribers with a suite of menu-driven data communications services including e-mail and share trading, as well as the means to turn phone handsets into highly-individualized lifestyle tools. These cards are compatible with SIM Toolkit commands, allowing subscribers with a Phase 2+ compatible phone to access the services using menus instead of keying-in sequences of numbers. The new services are split into three areas: mobile e-mail and stocks & shares data, and information-on-demand. The latter service provides information on a wide range of subjects, including news, travel data, and Muslim prayer times throughout Malaysia. Initially, subscribers will be provided with a SIM card containing all three
17

value-added services. However, the new SIMs also has the potential to perform downloading of applets Over-The-Air, allowing users to re-program cards in the field.

Rivalry of competitor This caused by the current competitors of the same product. The rivalry among firms in an industry is high when there is fierce competition and low when there is not. To increase the rivalry of competitors Celcom will be using the innovation strategies by cooperating with Axiata Group Berhad, Asia Mobiliti Initiative (AMI), and Vodafone Group who are the business alliances of Celcom. Axiata Group Berhad. Axiata Group Berhad is a vehicle overseeing and managing its overseas subsidiaries an emerging leader in Asian communication. AMI is a regional mobile operator alliance. Celcom will be strengthening its regional presence across Asia by joining AMI in 2005. Besides that, market share of it will be protected and increased in the respective home markets and at the same time improve profitability. Other than that, Vodafone is the world foremost mobile telecommunications company and having a significant presence in Europe, the Middle East, Africa, Asia Pacific, and the United States. Celcoms customers will be provided with incomparable global coverage, the lowest International Direct Dial and roaming rates, and the latest mobile technologies by Vodafone Group. It also gives Celcom admission to Vodafones global purchasing and economies of scale. Compared to normal broadband which delivers bandwidth through wired and wireless technologies at network speeds ranging between 256Kbps and 4Mbps, High Speed Broadband (HSBB) is a broadband service that offers bandwidth delivered at network speeds at 10Mbps and above. It allows Celcom to provide its own fibre-based fixed broadband service to millions of homes and offices, while enabling future internet protocol television, video on demand and other rich multimedia services. Celcom will be able to utilize TMs Digital Subscriber Line access service to offer Celcoms own DSL service to achieve Celcoms widest 3G mobile broadband coverage for those areas which currently have not been covered by HSBB. By doing so, Celcom will be a tough competitor to Maxis, DiGi and any other telecommunication service provider.

18

f) Discuss how the company can use knowledge management system in order to gain competitive advantage. Knowledge management is a process that helps organization identify, select, organize, disseminate, and transfer important information and expertise that are part of the organizations memory. The goal of knowledge management is to help knowledge workers to create, organize and make available knowledge. Nowadays, the telecommunications industries rely on hundreds or thousands of knowledge workers all over the world to operate the company, so it is important for them to communicate and share their knowledge. Therefore, telecom companies nowadays are willing to make investments to capture as much knowledge as possible from their most experienced workers to ensure that KM activities operate effectively. Knowledge management can be divided into 2 different types which is tacit knowledge and explicit knowledge.
19

Tacit knowledge is an informal; internal that resides in the minds of individual and has not been documented in structured form such as experiences and skills. While explicit knowledge refers to a formal, external and well structured form that has been documented, for example data, procedures, software, documents and so on. Celcom is suggested to use knowledge management system to enhance their daily operation in order to gain competitive advantage. First of all, Celcom should have information knowledge that supports the Contact Centre Knowledge Portal for the front-end and very quickly access all information necessary to answer customer call. The goal of front end were o emphasize on fast response time and provide necessary information to users. While in this knowledge portal, it should include information which is related to the product and service information, troubleshooting, event and promotion. Besides, Celcom can use information knowledge storage to captures and store content that already has been approved and delivered on time to the agents. This can help to develop the full value of the content by maximizing meta-tags. Meta tags are great ways for webmasters to provide search engines with information about their sites. Meta tags can be used to provide information to all sorts of clients. In addition, Celcom need to have a world-class content management system that would give their staff the ability to contribute content to the storage area. Content management system is designed to allow staff without IT skills to contribute some experience or skill that had been approved to the system. This would be an explicit knowledge that can be use by Celcom to compete with their competitors such as Digi and Maxis. In this competitive marketplace, organizations have to be kept updated with the global trend and current status in order to lead a significant position among competitors. When facing business conflicts and production problems, the knowledge intensive will provide effective solutions for performance improvement. Also, having a high degree of accuracy and accessibility for information enables the organizations to respond more quickly upon market changes and decision-making. Organizations in the telecommunication community have increasingly adapted into cultural changes upon working behaviors and business performances. Knowledge management nowadays is the key factor leading to industrial success. Workers are educated with training so as to
20

support productive procedures and further achieve business goals. With knowledge management, communications among workers and the understanding between departments will improve. Such knowledge is reusable which flows around in the knowledge management cycle for generating new knowledge. In the telecommunication market, people are organization asset. In order to improve the productivity level in entire operation process, organizations get started with knowledge development and intend to maintain good relationships with their potential customers. Business production resources are all depending on large amount of customer. Knowledge management locates as the chief execution in organization assets and knowledge repositories within the telecommunication market. Its main objective is to capture the human capital into explicit knowledge and to make the knowledge to be understandable and longlasting. KM implementation ties with organization objectives and integrates with different communities of practices among knowledge experts from various divisions in the companies. Shared knowledge and business intelligence bring in the most valuable resources for improved business performance and competitive advantages against competitors in the market. Celcom Company is encouraged to set up a knowledge management system so that all users in the company can share both explicit and tacit knowledge and can get the information updated easily through their companys intranet. Although maintaining knowledge management system is a long term task, in order to maintain excellent service and to survive in the competitive market, individual organization has to develop a systematic knowledge management system to gain competitive advantage.

21

g) Conclusion In a nutshell, we have discussed about the impacts of implementing IS/ IT in telecommunication industry. It was found out that, in high-technology industry, information system and information technology plays a very important role to craft the status among rivals. In-order to be pioneer and remain status, business strategy and research and development (R&D) are significant. With the guide of Axiata Group Berhad, Celcom has become stronger and more structure in the way of technology transfer, capital support, and large customer based sufficient expertise labor, and superior reputation. In this report, we have explained how CRM help to focus on acquiring, enhancing and retaining new and exciting customers in a systematic method. In addition, ERM system was also used to help Celcom to manage user access with a standardized password but into various network resources based on job requirement. Besides these, Celcom also applied ERP, M-Commerce and E-commerce to help in managing business operating. Celcom Berhad gave high priority to the implementation of new information technology and information system because they realized the benefits that IT and IS are able to give now and in future .For example, CRM helps to manage
22

customer more efficiency and reduce paper work, whereas ERP help to enhance the process of decision making by higher management level, increase the security level of customer and companys information, reduce costs of management, problem solver, reduce the fraud activities and so on. According to Porters 5 competitive forces, Celcom with high consumer bargaining power, rivals among existing competitors and threaten of substitute product. As we know, competitors such as Maxis, Digi, YTL and others are providing a similar product with different packages. In order for Celcom to be pioneer, Celcom have to be creative and innovative in products features, marketing methods, cost management and of course research and development. But, in Malaysia telecommunication industry is controlled and monitored by government, causes the supplier bargain power and threaten of new entrants are low. As for conclusion, Malaysias telecommunication industry is still far behind and in stage of growing and expanding when compared to Europe countries and even Asia countries such as Japan. With the help of government by bringing more investors and technology transfer from overseas to our country; it might be used to improve our technologies.

23

APA References

Celcom Axiata Berhad. (2011). Celcom Online Customer Service. Retrieved from Celcom : http://www.celcom.com.my/onlinecustomerservice/ Celcom Axiata Berhad (1999 2011). Alliances overview. Retrieved July 1, 2011, from http://www.celcom.com.my/exec/roamingidd/international_alliances.php Celcom Axiata Berhad (1999 2011). Celcom 1+5. Retrieved July 1, 2011, from http://www.celcom.com.my/exec/plans/ce1plus5_why.php Celcom Axiata Berhad (1999 2011). Services. Retrieved July 1, 2011,, from http://www.celcom.com.my/exec/vas/index.php Celcom Axiata Berhad. (2009). Celcom: Home. Retrieved Jun 12,2011, from Celcom: http://www.celcom.com.my/ Celcom Axiata Berhad. (2011). HRMS | Human Resource Management System 8 Sign-in . Retrieved Jun 12,2011, from Celcom Human Resource Management System: http://www.celcom.com.my/onlinecustomerservice/

24

Celcom

Malaysia

Corporate

and

Business

Analysis.

Retrieved

June

30,

2011,

from

http://www.articlesbase.com/corporate-articles/celcom-malaysia-corporate-and-businessanalysis-4786210.html#axzz1Qwt5wUlm Chan Chi Yee, Lian Ye Chen, Lim Swee Ling, Ng Kim Toh, Tee Yang Wei (2011, July). Strategic Analysis. Retrieved July 9, 2011, from http://www.scribd.com/doc/29048000/Strategic-Analysis-of-Malaysian-TelecommunicationIndustryIloka Benneth Chiemelie.

Chang Mei Ying, WIndy; Chow Wai Ching, Vivian; Huen Mei Ying, Harmony; Lam Tsz Kwan, Katherine; Yeung Sum Sze, Cissie. Knowledge Management Cases in Asia/Knowledge Management Practice in Telecommunication Industry. Retrieved July 20, 2011 from http://en.wikibooks.org/wiki/Knowledge_Management_Cases_in_Asia/Knowledge_Manage ment_Practice_in_Telecommunication_Industry Five Competitive Forces Porter. Retrieved June 20,2011, from

http://www.12manage.com/methods_porter_five_forces.html George Chua .Retrieved Jun 19, 2011 from http://my.linkedin.com/in/georgechua Information Workspaces.Retrieved July 20,2011 from http://www.arahe.com/stories/DiGi%20Success%20Story.pdf Jamal /ITvoir Network. Celcom expands 3G network coverage with Nokia Siemens Networks. Retrieved July 7, 2011, from http://itvoir.com/portal/resources/Latest-TechnologyNews/Celcom-expands-3G-network-coverage-with-Nokia-Siemens-Networks.asp Porter's Five Forces: A model for industry analysis. Retrieved July 10, 2011, from http://www.quickmba.com/strategy/porter.shtml San Jose. Retrieve July 2, 2011, from

http://www.thefreelibrary.com/Celcom+Chooses+Cyberflex+Simera+Java+SIMs+for+Its+Mobil e+Services...-a056012688

25

Telecommunication Industry in Malaysia: Industry Analysis with Michael Porter's 5 Forces. (2009,June15).InWriteWork.com. Retrieved July 24, 2011, from http://www.writework.com/essay/telecommunication-industry-malaysia-industry-analysis-mich Yuval Levy. Power of buyer. Retrieved July 5, 2011, from

http://www.photopla.net/wwp0503/buyer.php Yuval Levy. Power of supplier. Retrieved July 6, 2011, from

http://www.photopla.net/wwp0503/supplier.php Yuval Levy. Threat of substitute product. Retrieved from July 7, 2011, from

http://www.photopla.net/wwp0503/substitutes.php

26