Strategic Information Management

Group Assignment
Submission Date: 2012-12-1

Table of Content .

Starlite is established in the 1970’s.Plain / Printed . Depends on the nature of products. the first thing attract their attention are the packing instead of the product itself. containers etc. Also it has GSV certification for the last 4 consecutive years. toughness and easy painting. Paper (OEM). Also.Background Very often. The Starlite headquarter is located in Hong Kong. Pad Printing. Forms ) (OEM). while the production line is placed in mainland China to lower the cost. They are Leo Paper Group and Hung Hing Printing which is similar in scale and share about 60% of the printing and packaging market with Starlite. Box & Case . plastics films are the secondary ingredient for packing. On the other hand. Offset Printing. Starlite become one of the major packing service providers in Hong Kong. Printed Office Stationery ( e. Label . Products such as Catalogue & Pamphlet (OEM). It implies. its business not only limited to local services but all over the world. the first impression is mostly accountable by the packaging. The main role of Starlite is to turn different raw materials into packing boxes. every successful product needs a good packaging that helps to build up a good and professional image. It is one of the paper printing and packaging vendors that help to pack up hundreds of retail products for different companies. usually for protecting the painting as well as seal the new products. There are two major rivals in this industry. It has awarded Gracol G7 Master Printer and to be the first company obtains FOGRA Process Standard Offset (PSO) certification. Digital Printing. when consumer buys a product. Porter 5-forces Analysis Five Forces Analysis assumes that there are five important forces that determine competitive power in a . For the past decades.Corrugated (OEM). Box & Case . With the help of the information technology and developed transportation network in Hong Kong. FOGRA PSO and GMI – packaging printing standards in mainland China. like the light weight. different kinds of design are custom made for customers or provided by them. a suitable packing design helps to raise the level of elegance for high-end product.Cardboard (OEM).g. The remaining 40% is divided by other middle and smaller companies. The majority is paper due to cost and other advantages. Regardless of the category. Packaging industry therefore is introduced to satisfy the needs.

Thus.business situation. then they are often able to dictate terms to Starlite. and so on. most of the printing machines are mainly coming from few suppliers (such as Kodak. Thus. Starlite mainly acts as Original Equipment Manufacturer (OEM) for its worldwide brand customers such as Hallmark Card. American Greetings Card. powerful buyers. Penguin Books. the more powerful its suppliers are. That means it is driven by the number of buyers. If Starlite has many competitors. Due to customers’ worldwide reputation. 3) Competitive competition The competitive competition force is high. those bargaining power are relatively high in price negotiation to Starlite. If Starlite deals with few. that will be indicated high supplier power from Porter 5-forces analysis. If Starlite deal with few. the cost to them of switching from Starlite products and services to those of someone else. their strength and control over the company. and so on. 2) Buyer Power How easy it is for buyers to drive prices down on Starlite Printers Limited. the cost of switching from one to another. powerful buyers. and so on for their paper product production. These are: 1) Supplier Power How easy it is for suppliers to drive up Starlite product prices. For Printing and Packaging Industry. and the more you need suppliers' help. providing them with the same attractive products and . this is driven by the number of buyers. This is driven by the number of suppliers of each key input. the cost to them of switching from Starlite whose products and services to those of someone else. and so on. Heidelberg. the importance of each individual buyer to Starlite printing and packaging business. Fewer suppliers in market will be more easily to drive up the paper source prices. By combining the above two points. Roland and so on. it means that Starlite needs suppliers’ great help in providing different types of paper in manufacturing paper packaging products.) to provide technical support solutions in printing and packaging industry. Lee & Man Paper Manufacturing Ltd. Besides. then they are often able to dictate terms to Starlite. The important thing is that Starlite has the number of competitors and the ability. In buyer power part from Porter 5-forces analysis tools. the importance of each individual buyer to Starlite. The fewer the supplier choices you have. and other several small companies were mainly supplied on the paper source in the market. buyer power to Starlite is quite high in the result. the uniqueness of their product or service. Nine Dragons Paper (Holdings) Ltd.

In fact. if there are few economies of scale in place. New Island Printers Ltd. some huge buyers or consumers like Hallmark Cards (HK) Ltd. or if Starlite have little protection for its key technologies. Starlite has listed on Hong Kong Stock Exchange (Stock Code No. because suppliers and buyers.services. and other small or middle size printing company in the market. Each of those are providing similar printing products and servicing. However.(Stock Code No. Porter's threat of substitution definition is the availability of a product that the consumer can purchase instead of the industry’s product. Starlite can often have tremendous power. may separate their huge orders into small SKU (Stock Keeping Units) and divided to do production process in two or three printing companies. 5) Threat of New Entry For the threat of new entry. 4) Threat of Substitution Threat of substitution force is low. At the result.377). they are often facing the challenges from other listed competitors such as Hung Hing Printing Group Ltd.403) since 1993. If you have strong and durable .(Stock Code No. then Starlite probably have a small power. If Starlite did not get a good agreement. threat of substitutes shapes the competitive structure of an industry. For example. According to Porter’s 5 forces. As Green campaign is often promoted in nowadays. Thus. If it costs little in time or money to enter the market and compete effectively. Christmas or Birthday cards will be substituted by sending electronics mails or mobile messages in people communications for above ten years. less physical paper will be used in the world in order to save Global resources. if no one else can do STARLITE to do. On the other hand.450). it is very low because this is also affected by the ability of people to enter to printing industrial market. then new competitors can quickly enter printing market and weaken its position. electronics books present very common on tablet computer such as Apple iPad or Samsung Galaxy Tab. Starlite and its competitors will be also faced large threat of substitution A substitute product is a product from another industry that offers similar benefits to the consumer as the product produced by the firms within the industry. Thus. they will go elsewhere. more and more printing paper outputs will be converted into electronics method presentation to the end users. small bargaining power may be in result for Starlite in facing those buyers. Also.

Also. customized products. Therefore the salary of the labour is cheap. an innovative packaging solution and a multitude of manufacturing options for leading global clients Starlite production sites are located in places with the strongest economies and awarded Gracol G7 Master Printer and to be the first company obtains FOGRA Process Standard Offset (PSO) certification. Opportunities. Starlite fulfill the customer requirements to get an order. Printing Industry becomes . and Threats involved in a project or a business. The cost of barriers to entry in the printing company is to get more certificated in their products and services. 1) Strengths Starlite is one of the paper printing and packaging vendors that help to Pack up hundreds of retail product for different companies Provided deliver swift services. Packaging and Printing Industry is a low cost of manufacturing.barriers to entry.Ltd (listed on Hong Kong Exchange Stock No. Midas Printing Group Limited (listed on Hong Kong Exchange Stock No. FOGRA PSO and GMI Starlite decided the production line is placed in mainland China to decrease the cost and services distributed all over the world to increase the sales. Weaknesses.1172) has also shifted their business to property area. 2) Weaknesses Starlite are facing the challenges from others competitors and other small or middle size printing company in the market. Chung Tai Printing Co. 055) changed their main printing business to entertainment business for three years ago. Most of the certificates were required by the customers. SWOT Analysis SWOT analysis is a structured planning method used to evaluate the Strengths. some of the huge size of printing company get rid of the printing business and move to other business. Thus. there will be less and less huge printing company retaining or medium or small business will enter to this industry. then you can preserve a favorable position and take fair advantage of it. Moreover the order system does not fit to Starlite operation needs. as the printing industry becomes saturation. For example. Nowadays. Starlite production line is placed in mainland.

quality. export houses and exporters in their overseas marketing activities • Technical assistance – The Industry Extension Centres provide Technical. Application Portfolio Model for Starlite Printers Limited Strategic • • Sales forecasting/Market analysis (New Microsoft Navision ERP) Customer Relationship Management Software (eSAMs) High Potential • Product tracking/traceability (Old and New ERP system) . speed. Printing Industry has been shrinking continuously. The Green Movement does not agree more printing paper output.saturation because the industry shortage of technical labours and lack of technical adoption. the raw material price of printing industry is fluctuation.g.g. 3) Opportunities Starlite need to develop IT field and new technology for increase the production quality • Market Development Assistance – Government provides assistance to approved associations. People don’t know all the products produced by the packaging and printing industry Increase the cost of production e. technology.g. order system. desktop printers and shortage the skills of the printing technology. suggest electronics method presentation to the end users. • • • Too many business ordered a limited number of jobs Invisible e. It is facing the challenges from new technology e. Furthermore. computers. economic and managerial consultancy service to small scale industries to improve the quality of goods produced and strengthen their competitive position in the market 4) Threats Starlite services distributed all over the world but it will face to the overseas competitors and local competitors.

efficient and secure. Support (Payroll or Personnel System) The most expensive operation. Payroll or HR administration . In order to ensure these applications address strategic goals. Starlite can use these applications through their business-oriented innovation.general Samples Management Key Operation Support By the Application Portfolio Model. Strategic (such as Forecast and CRM) These applications contribute strongly both to high value and strategic future plan. (2) High Potential (3) Key Operation and (4) Support. The nature of this systems are includes tryout projects. it provides a tight vertical integration. Dispatch. Billing should be worked in reliable.• • Product database / Inventory Management (Microsoft Navision ERP) Enterprise Resources Planning (New Microsoft Navision ERP System)  Order processing. Key Operation (ERP system) Differ from Strategic. Key operation is often the legacy software in the organization. Invoicing.  Production control  Sales analysis  Production Planning  Purchasing-materials  Costing system (activity and product)  Sales analysis  Warehouse Management • • • • • • Payroll and Personnel System Ledges – Payables and Receivables (New Microsoft Navision ERP System) General Ledger Office systems Purchasing . For example. Their benefits are not obvious to perform in actual business contribution. They sustain both the present and the future business of the organization. Also. No risk should be taken in the main business direction. often whether the application can be effective. High potential (such as product tracking or traceability) It is a potential to play a pivotal role in the future business. and they are heavy on IT but short on actual business context. It provides effective and efficient business support. etc. Key operation is just keeping the present business going. IS/ IT Starlite can be separated into four areas: (1) Strategic.

For example. all countable data unit can be unified in matching in each operation and can be easily to pass to next step operator or other departments. The system is new business processes to achieve the following expected value & interests: 1) To complete the integration of production and sales. procurement Unified information flow is not implemented in the current business units and production. Make-up and Manufacturing process. Remarks for Terms: SEAMS – the name of Starlite old ERP system. it can be covered into several areas on application portfolio model. Material purchasing. the Account and Finance department will generate the credit limit related to that VIP customer. The main difference from the old ERP which can generate analysis report. Thus. Thus. the old ERP system covers only in normal Key Operation or little in High Potential areas. the system will have an email alert to the customer’s Account Manager and its Senior or . From the old operations experiences. Document requires the authorized signature of the relevant departments of the transmission of information in different sectors. 2) Maximum transparency between departments Optimize the coordination between the departments and the departments. Warehouse. If the credit limit is failed.support non-differentiating business processes. the new ERP system has been introduced for about three years which is parallel worked with the old ERP in the same time. Microsoft Navison ERP system – the system is a new ERP system in Starlite. it is zero risk on normal operation during changing a work flow with new ERP and providing integration of each departments’ operation. It is mainly for using in normal production process and Inventory process before the implementation of new ERP system (Microsoft Navision ERP) in the past few years. New projects on these systems will usually only be undertaken when the organization is forced to make changes on account of statutory frameworks or compliance requirements. if the premium customer has confirmed their order. Create and sustain competitive advantage As the old ERP system modules cannot satisfy to all of the internal departments in their operations and cannot fit the current several years on company work flow. Although there will be required an addition work on some of departments. Sales. After implementation the basic module of ERP. making the operation of the business information between different departments to achieve the best. Costing (quotations). The system covers modules includes: Financial. sales and material forecast and estimate time in production planning. These applications must be efficient and above all inexpensive in operation.

use. 3) Unified improve the basic data Specification supplier. Nowadays. information and data are passed through the system overall will reduce management costs. leading to inconsistent data. 4) To enhance the processing speed of the business processes Business information that can be tracked in real time (sales orders. 7) Maximize the value of employees Reduce the need to repeat the day-to-day operation of the time. modification. and human errors will be reduced to the minimum. production single status. disruption. the past data and normal activities can be analysis to be a reference in order to do normal production planning. rather than simply the New Order). purchase orders. Past information and market trends will be very easy to view in the new system. the recognition of the various departments of the supplier. companies can quickly develop marketing strategies. 5) Support real-time market decisions With real-time information.Sales Vice President to do settle payment action first. The product of the data is scattered in various departments. so that employees can pay attention to the most valuable features (for example: to spend more time in the management order status and order analysis. and closer to the real. there is duplication of coding. to promote good enterprise further market decisions. and greatly improve the exchange of information between different departments. After implementation new ERP system several months later. customer information. 6) Reducing processes running costs With processing greatly reduce manual processes. etc. at the same time should be unified. It can be save time and money at the result. Operation control will become simpler.). disclosure. information . inspection recording and destruction. Protection and Security Information security means protecting information and information systems form unauthorized access. customer information. perusal. to reduce market risk. That can support for estimating the delivery product time and material resources well-prepared in operations.

• Set minimum password age to 30 days to disallow user to change password within 30 days after a new password has been set. . people use four types of password distribution policies. one password everywhere. patterned password or random stored password. 3) Backup Procedure/Storage Backups are thought of in terms of the data that an organization relies on to conduct its daily operations. So Starlite has a good password policy prepared for their staff. 2) Password Policy Commonly. • • Maximum password age to 60 days to enforce user to change password every 60 days. Periodic review on user accounts should also be conducted to ensure no obsolete account exists. 1) User Account Maintenance All user accounts should be removed immediately when the staffs leave the company. amendment and deletion requests should be documented/email. Minimum password length to 8 characters to ensure that all passwords must comprise at least 8 characters. For the user account creation. A daily snapshot should also be done every mid-night. In recent years.security problem is most important in the company. somewhatrandom password written down. Human Resources Department should prepare a list of leavers and forward it to the IT Department regularly. The IT Department should use the list to check if all the leavers’ accounts are removed. So it proves a good backup plan should be developed. and the user access rights are appropriately assigned. some new are talking about the company lost the client information. • • Enforce password history should be set to 10 passwords remembered in the system. and Passwords must meet complexity requirements should be set to enable. Starlite has developed seven methods to protect the company.  File server & Exchange should perform a full backup every weekend by using open file option.

The DRP should be properly documented to facilitate the communication within the IT Department. or other localized events. So we need to install the antivirus software to protect our computer from viruses and remove any viruses that are found. The cabinet should also be located away from server room. Common methods for spreading viruses include floppy disks. • The auto-update function should be set and a regular check should be done once a week. Backup tapes should be stored in a fire proof cabinet.   SQL server should backup the all the databases every mid-night System ghost should be made when possible. drill test should be performed regularly to ensure the recovery procedures can be run smoothly in case of emergency. 5) Environmental and physical controls over the server room • • • • Smoke detector Temperature. Keeping the server room organized is a critical priority: Less stress and better use of time: When everything is in its proper place. 7) Routine Job Checklist • Checking Server log daily . That means fewer headaches. finding connections and performing maintenance is quicker and easier. The plan also addresses more mundane situations such as equipment failure. The cabinet should also be locked and only authorized persons can access to the tapes. less wasted time and money savings. theft. such as password lock. human error. and copying files between shared network drives. Moreover it can spread from one computer to another through sharing of "infected" files. humidity monitoring system Fire alarm Access control to the server room. and tested process document that maps out how to respond during disaster scenarios including events such as fires. In addition. 4) Disaster Recovery Plan A Disaster Recovery Plan is a comprehensive. A well planned DRP can minimise business interruption in the event of critical systems failures. 6) Anti-Virus Definition Viruses exist on your computer through the email or internet commonly. floods. FTP file transfers. earthquakes or other disasters. well thought out.

Password policy is one of the security guideline which can teach a staff how to set the strong password in the computer. the product code has duplicated in various department. With reduced of manual processes. it improved the communication between the departments and the departments. customer information. at the same time should be unified. As the old system. New ERP system rearranged the duplication of product coding. Therefore. time and taps is most important in the backup storage. Success factors of Order System Depend on the comprehensive order system. The new system can complete the integration of production and sales efficiently. it can also enhance accountability as it would record the responsible persons. In the company. Because of the backup size. The checklist should be reviewed by IT manager regularly to ensure all jobs were completed properly. it can satisfy their operations and fit the company work flow. The company needs to backup the daily operation for the record or analysis. With the new ERP system. IT staff should sign off the checklist after they perform a job. customer information. Then a good backup plan should be included. making the operation of the business information between different departments to achieve the best. no routine job checklist is in place to record the jobs done by IT staff. disaster recovery plan is a documented process or set of . Backup storage also is important in the company. it can be save time and money at the result.• • • • • Checking Citrix Management Control daily Checking server configuration weekly Checking backup log daily Checking firewall log twice a week Checking anti-virus definition once a week However. Specification supplier. the recognition of the various departments of the supplier. E. All countable data unit can be unified in matching each operation and pass to next step operator or other department easily. leading to inconsistent data.g. A routine job checklist can help the management to monitor the work done by IT staff. Success factors of Security System Starlite developed a good security guideline for their staff to follow. Starlite become one of the major packing and printing services provided in Hong Kong.

starlite also provides a good environment and technology in the security system. Therefore. If the company has any disaster events includes fires. it can return to disaster before. So the antivirus definition can protect your company which the hacker cannot attack the company. equipment failure. It is true that the security job should be complete. It can monitor the job checklist to know the IT staff is it finishes the job. The Printing Industry must keep checking the order of mail on every day. Starlite designed a routine job checklist for the management and IT staff. A well-design server room and antivirus definition software should be included. . earthquakes. Moreover. human error and theft.procedures to recover and protect a business IT infrastructure in the event of a disaster. Viruses exist in your computer through the email way is most common. floods.

2010. viewed at 24th Nov 2012 http://www. viewed at 21st Nov 2012 http://hbr.com/cs/worldwideweb/g/bldef_virus.mindtools. Why is server room organization important.mindtools.References: Mind Tools Ltd.htm N. 2010.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1 Mind Tools Ltd. The Five Competitive Forces That Shape Strategy. About WikiCFO. viewed at 24th Nov 2012 http://www.html B. viewed at 26th Nov 2012 http://compnetworking.about. virus. Irizarry.com/ijemr/App_Themes/Theme1/Images/Export%20Oriented%20Printing %20Units%20ýýýSWOT%20Analysis. Discover New Opportunities. What Is A Disaster Recovery Plan.htm Jwilkinson.experts123. Mitchell. Porter.com/q/why-is-server-room-organization-important.exclusivemba. viewed at 27th Nov 2012 http://biznik. viewed at 21st Nov 2012 http://www.htm M. Manage and Eliminate Threats. 1996.wikicfo.com/articles/whatis-a-disaster-recovery-plan . 2008.com E.pdf A.Jayalakshmi.info/2010/05/04/swot-analysis-of-the-print-industry/ Rackmountsolutions. 1996. 2011. 2010.com/pages/article/newTMC_05.com/pages/article/newTMC_08. viewed at 25th Nov 2012 http://easypurl. viewed at 26th Nov 2012 http://www. Webb. Assessing the Balance of Power in a Business Situation viewed at 20th Nov 2012 http://www. Export Oriented Printing Units –SWOT Analysis. 2010. SWOT Analysis Of The Print Industry.