Slide Link: https://prezi.

com/p/mrgkswb-vneb/case-8-the-tega-payment-system

CASE SUMMARY

 Tega was a government agency offering scholarships to students pursuing studies overseas.
Its headquarters is located at Kuala Lumpur. Malaysia and international offices in London,
Washinton D.C. and Jakarta.
 The Director-General of TEGA has recently visited to the TEGA office in London on 16 May
2009, noted that sponsored students in London had been complaining about their late tuition
fees and monthly allowances.
 After the visit, the Director-General sent an email to Puan Aishah Manan, the Finance
Director, requesting for an improvement in their student transaction services.
 Then, Puan Aishah has appointed Rosli Idris, the Accounts Head to review the existing
system and suggest appropriate solutions to tackle with the current issues.
 As a consequence, four alternatives are suggested for implementing the new web-based
transaction system for TEGA London.

ISSUE 1
 Late payment on tuition fees and monthly allowances

ISSUE 2

 Students record transaction need around 40-50 days processing cycle

ISSUE 3

 Existing payment process need 10-15 minute duration

ISSUE 4

 High error rate between 40-50 errors per transaction due to normal activity of data
transfer.

SYSTEM DEVELOPMENT PROJECT

 To solve business problem

 Take advantage of business opportunities

INFORMATION TIME FRAME

 Always a time lag between the points at which an event occurs and the points of which it is
reflected in the TEGA OOS.
RESOURCES

 Estimated that overall cost savings of a new system could total about RM350,000 annually
which considered a potential savings from overtime and transportation costs.

AREA OF FEASIBILITY

 Technical feasibility
 Economic feasibility
 Operational study
 Scheduling study

 Requirement of proposed system that director generals has emailed to the accounts and
finance director.
 Replace by online transaction and can easily transfer the information by engaged a fully
integrated web based transaction system application.
 Be fulfill the requirement of the software and hardware used by the TEGA branches in
London and Kuala Lumpur.
 Should provide with adequare security instances firewalls and user password that for
approved personnel only.
 Use of broadband services, information could be sent at a rate of 40 times faster as
compared to normal telephones lines.
 First choice is develop system internally- RM360,000.
 Second choices is outsource the task to London vendor- RM190,000
 For third alternatives, TEGA could opt for commercially available software in the market and
the system would further modified to TEGA requirement. RM90,000.
 A last alternative is co-sourcing the project development system with another vendor. The
cost is same as to third alternatives but TEGA should pay another RM20,000 annually to
vendor for maintenance and support services to them.
 Upgrade the current system.
 Expedite payments in less than 7 days.
 Payment process less than 5 minutes to achieve response time.
 Error will be reduce.
 Proposed project could take at least six months
 Then, the system would be ready before the student fee billing period between MID-
OCTOBER 2009 AND END OF JANUARY 2010.
As a solution the management suggested 4 alternative to implement the new web-based transaction
system for TEGA London:

 Develop system internally (IN-HOUSE)

 Outsource
 Off the shelf software
 Co-sourcing with vendors

User has opportunity to participate in system development

Have rights to control
It is costly
Reduce operational and recruitment cost
Sharing of risk
Risk of exposing the confidential date
Can save RM50,000 of accommodation and travelling cost
Can modify the software
It is cheaper
Takes time to make adjustments
Better cost saving compared to fully outsource
RECOMMENDATIONS

The first alternative (in-House development) would be the best alternative to overcome the issues
faced by TEGA team. Reasons:

 TEGA Kuala Lumpur has a team of management information system (MIS) department,
where they can help Tega London by using their expertise and experiences.
 The user will have opportunity to participate in designing and testing the system.
 Enable to satisfy the unique requirements.
 Although it is high cost but it help to save spending on system in the future.
 So far the long term perspective the in-house development will be suitable to develop new
web-based system for TEGA London.

CONCLUSION

As to conclude this case study, flowchart helps TEGA London and TEGA Kuala Lumpur to identify
the problem in their system. The first alternative which is in-House development is the best
alternative because it will finally put an end to all the problems faced by TEGA current system
OOS. This proposed system is also an efficient system as it is expected to serve for a long term.
Integrated web-based transaction system is feasible in terms of technical, economic and
operational.