Chapter I THE PROBLEM AND ITS BACKGROUND Introduction The success of companies companies today is defined by numbers. The product, the brand, and the market are entities which drive the business to its goal but in the end, only the gross sales and revenues are accounted for. That is how important sales are for a business and this is where computers come in. Selling is a science which can be mastered and perfected. By using computers, companies companies use a proven method to enhance enhance their sales force and guarantee guarantee revenues. Enormous numbers of computers ranging from small, inexpensive micro-sized units to super computers are now being used in banks, financial institutions, and in almost all private companies around the world. In many businesses, especially corporate ones, the use of computers is a must. It increases productivity, speed and accuracy. It continues to push innovation among all industries. It guarantees a secure storage of vital information where the data can be used over and over again in many years to come.
Background of the Study The Philippine American Life and General Insurance Company, has been the premier life insurance organization in the Philippines for over five decades now. 1
Leading the nation's life industry with 30% share of total premiums, Philamlife insures over a million policyholders. It has the most extensive network of more than 200 offices throughout the Philippines, over 8,000 sales agents and 1,000 employees. It offers the most comprehensive range of insurance products and services. Phila Philamli mlife fe was was found founded ed in 1947 1947 by Corne Corneliu lius s V. Starr Starr and and Earl Earl Carro Carroll, ll, two two visionary men who set out to help revive the post-war Philippine economy utilizing Filipino resources and self-reliance. Through a nationwide campaign named "House of Savings", the Company effectively tapped the resources of individual families and built up a reservoir of capital that was channeled into various industries and sectors, thus, helping spur the growth of the economy. Through the years, Philamlife has effectively fulfilled its dual role of providing financial protection to its policyholders, and helping in capital formation by converting insurance premiums into investments.
Objectives of the Study The main objective of the proponents' research is to design an online system that will maximize the sales potential of a life-insurance agency and efficiently track all the sales activities of each agent. Specific Objectives: 1. To develop an online system to walk agents through the stages of the sales process thus making sure agents follow a scientific approach in closing a sale.
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2. To provide easy accessibility for the managers and staffs when tracking all the sales activities of agents, but maintaining a level of security for private information. 3. To develop a simple tool for agents to track their activities, clients, prospects and future payments. 4. To provid provide e a secu secure re stora storage ge for all all infor informa matio tion n and and sales sales activi activitie ties s of an agency.
Statement of the Problem The researchers' researchers' interest to conduct an investigation investigation has led them to understand understand the company's present problems: 1. What are the demographic profiles of the respondents in terms of: a. Age b. Gender c. Civil Status d. Position e. Length of Service 2. What are the common problems encountered during the implementation of the existing system? a. No clear sales process to guide the agents in every sale.
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b. Prospect and client lists are done manually by agents. c. Diff Diffic icult ult and and time time cons consum uming ing in keep keeping ing track track of all sche schedul dules es and and appointments. d. Inability of managers to keep track of the agents’ sales activities. e. Storage of files is susceptible to be damaged as well as lost of files. 3. What is the difference between the existing system and the proposed system in terms of the following: a. Accuracy b. Reliability c. Efficiency d. Speed e. User-Friendliness
Hypothesis of The Study The hypothesis of this study are: 1. There is a significant differenc difference e using an online system compared to manually managing all the sales of each agent. 2. The proposed proposed online online sales sales managem management ent system system will will radical radically ly improve improve the efficiency of the agents and will maximize the sales potential of the agency.
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Scope and Limitation After several interviews and observations, the researchers have come to identify how to maximize the sales potential of the agency. The aim of the research is to provide a specific agency of PhilamLife an online sales management system. The proposed system will track the sales activities of the agents and guide the agents through the stages of the sales process. The scope of this study are as follows: - Tracking of prospect and client for every agent. - Stages of the sales process for each prospect that includes fact finding, setting of appointments, making the sales presentation and closing the sale. - Automated computation of sale details for every sale and tracking of agent and agency performance reports. - Capability to approve or deny every sale. - Automated email reminders to agents for upcoming payments of their respective clients. The limitations of this study are as follows: - This study is limited to the sales process of the agency and will not account for the the billi billing ng and and accou accounti nting ng of the the clien clients ts since since Phila Philam m Life Life has has its own own accou account nting ing department. - The products that will be attached to clients will only serve as tracking for
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amount of premium, mode of payment and future payments and will not calculate the billing information of the client. - Only the commission, future payments and other sale details with regards to the agent are computed. - The database of the proposed system will only store information of agents and clients that belong in the respective agency the system was made for. - For management and security purposes, the manager will be able to track the activities as a whole, while agents will be limited to track his own respective activity.
Significance of the Study Economical Significance. If implemented and used, the proposed proposed software can be considered to be economical because it can help the company strengthen their sales revenues while decreasing company costs in paperwork. Educational Significance. The outcome of the this study will be helpful to the company beginning with the improvement of the system and for the future researchers by providing an idea of this study that will somehow be of help in modifying or improving the outcome of the research. Social Significance. Significance. The manager or the authorized personnel as well as the agents who would want to know the information of the data can get the records faster and easier by accessing it online. Technological echnological Significance. Significance. The The prop propon onen ents ts had had this this stud study y beca becaus use e it is
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beneficial to the company’s managers and agents to have a computerized database of clients and to have a safe storage of sales activities which can easily be accessed online. The result of this study is beneficial to the following: Agency.
This study will maximize the sales potential of the agency and will
significantly lessen the work of the agency while increasing their sales. Company. This study is significant to the company because it will improve the productivity of its work place and increase the overall performance of its agencies in terms of sales. It will also reduce the overall cost of the company since data are stored online. Managers. This study will make monitoring easier for the managers managers since all the agents’ sales activities are easily accessible online. Employees. This study will make the employees’ work faster and more efficient. The employees will be able to focus on more productive work since a lot of paper work has been reduced. Agents. This study will maximize the earning potential of agents and help the agents in organizing prospect lists, clienteles and future appointments. The agents will also be able to easily track all their sales history online. Prosponents. Conducting this study is significant to the proponents because it can add knowledge in their filed as in information technology student. It also develops the communication, communication, writing and grammar skills of the proponents. And And most importantly
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the proponents’ skill of making the proposed study enable them to research more about the programming languages that best suits to the proposed system, and adds significant knowledge and experience to the proponents capabilities of making a system. Future Researchers. Researchers. This will benefit other group of researchers who wish to undertake similar studies as they can get more background information from the result of the study, which can serve as a basis to modify or improve their own research.
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Chapter II REVIEW OF RELATED LITERATURE AND STUDIES This chapter places the current study into the context of previous, related research. It consist of both the theoretical and conceptual framework of the present study, the critique of both both relat related ed studie studies s and and litera literatur ture e that that are relate related d to the the prese present nt study study,, as well well as the operational operational definition of terms that are based on observable characteristics characteristics and how it is used in the study stud y.
Theoretical Framework Theoretical Framework is a separate chapter consisting of a review of related literature, the theories that have bearing the problem, the conceptual framework and the hypothesis. The study is focused on the System Theory, which states that, "A System refers to any collection or combination of programs, procedures data and equipment utilized in processing information". A system by definition is an assemblage of inter-related elements comprising a unified whole. It comprises of a set of information that are collected, stored and manipulated and changed into a useful form of output producing specific results. It is mainly made up of three components that represent the units of analysis or the variables under study. As the result of the study, it represents Input as the Independent Independent Variable (IV) , the Process, Process, as the Intervening Variable (ITV), (ITV), and the Output as the Dependent Variable (DV).
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The upper portion of the paradigm (shown on Figure 2.0) clearly illustrates how the existing system will be processed. The materials used in the traditional method, which is a manual way of recording files using the pen, pencils, papers and columnar notebooks serves as the input; and the manager being able to get the incoming files of the clients serves as the output. The The lowe lowerr port portio ion n of the the para paradi digm gm illu illust stra rate tes s how how the the prop propos osed ed syst system em will will be processed. processed. It illustrates the new method of recording files through the use of a computer, computer, which serves as the input; the process is automated and is therefore faster, more efficient and easier to work with. The manager can now get the recorded files faster by inputting the records.
Related Literature This section presents both foreign and local related literatures relevant to the study. study. This relevance is shown by the proponents in order to give more reason and understanding of the proposition. Tom DeMarc DeMarco o & Tim Tim Lister Lister of Peop Peoplew leware are,, 2nd 2nd Editi Edition on,, Dorse Dorsett House House cited cited that, that, “Companies “Companies that sensibly manage their investment in people will prosper and eventually succeed in the long run.” The authors of the book state that if companies manage investment in people wisely, it will reap the rewards in the future as the company grows. It will succeed in the long run because the people within the company are the ones contributing to the growth of the company. Thus entails the importance of taking care of the people within the company. Caper Jones of A Practitioners Approach, Fifth Edition cited that, “Good estimating appro approac aches hes and and solid solid histo historic rical al data data offer offer the best best hope hope that that reali reality ty will will win over over impossible demands.”
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The author of the book stated that in business, good estimating approaches and solid historical data are beneficial tools to be taken advantage of. As to with research studies, one does not jump to start right away, but the approach should start with solid historical data so that awareness of the study be met with a hopeful result that will win over impossible demands. Carl P. Zeithami & Thomas S. Bateman of Management Function and Strategy cited that, “In today's today's busines business s environm environment, ent, planning planning has become become a widespre widespread ad managem management ent function, involving people throughout the organization organization in the analysis, identification, identification, and selection of goals and priorities.” Authors of the book state that planning is very important for every individual, work group, or organization because it helps the systematic process during which decisions are made about the goals and activities, just like companies companies using a manual system method method to carefully plan on what would be the possible solution to make the system work faster so that there is less probability of errors in the activities, and in considering the need for a computerized system in order to better answer the problem.
Related Studies This section presents other related studies by the people who conducted studies similar to the proponents that will also greatly help in the progress of the study. study. And it will also help the understanding of the proposition. Mark Mark Domi Domini nic c dela dela Torre orre stat stated ed that that,, “The “The conc concep epts ts of a simp simple le drea dream, m, a determination, quality and perseverance are the forefront to any business that leads to successful outcome.” Having the concept of determination and assuring quality service to customers, the proponents created an online software program to cater to company employees and agents in
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making their job easier and more efficient thus delivering quality service and maximizing the potential of the business. Gaudelyn C. Pantilo stated that, “The increasing demand gave us the idea how to deal with our ongoing progress. It motivates us to meet their need efficiently.” The compan company y needs needs to cont continu inuall ally y divers diversify ify to meet meet the the ongoi ongoing ng dema demand nds s of the the business sectors today. today. Thus, proponents created an online software program for the company to maximize their work force, easily tack all sales activities and to meet the demands of this ever changing economy ec onomy.. Kneener Lim and Antonette Goyenechea stated that, “Records security security is also one of the primary objectives and all the information received from its clients are confidential.” The proponents created created and designed a software program for the company to make the system perfect where all the sales and client records should be kept, thus giving the assurance that these files are secured and accessible for the advancement of the company.
Synthesis The capti caption on that that is state stated d on the relat related ed studi studies es by Kneen Kneener er Lim and Anton Antonet ette te Goyenechea Goyenechea and the studies that were conducted are related to the proponents' study because these studies are concerned with the sales history of the company. Both studies are related in the area of the importance in keeping all the records of sales and files of the clients of a company and putting into account solid historical data of the company that could be used to further improve the company’s company’s growth in the future. It will give the assurance that these files are secured and accessible for the advancement of the company. It also guarantees that people’s job will be easier, faster and more efficient for the benefit of the company.
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Definition of Terms The following terms are used in the study. Agency. The team that comprises of the agency manager and group of agents that sell and manage the investments in the company. Agents. The person under the agency who sells investments to clients. Client. The person who has invested money or someone who has purchased a life insurance product from an agent. Company. The company who is managing the investments and is selling life insurance. Employee. Refers to a person employed by the company such as a secretary. File. The application form that are submitted by agents whenever they sell a product. Manager. The person in charge of the agency and manages the agents. Record. A document that contains the data of the sale or investment. Servicing. The financial planning that agents conduct to clients . Internet. A worldwide system of computer networks.
Online. A state of being connected to the internet. System. A combination combination of several components integrated to perform a specific task. Sales Management System. A system wherein the sales cycle is organized that would help in the selling process of its users.
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Chapter III RESEARCH AND SOFTWARE DESIGN This This chap chapter ter deals deals with with the the meth method ods s of rese researc arch h used used wheth whether er it may be historical, descriptive, and experimental or a case study. The techniques used under Descriptive Research Method as well as the data gathering tools and analytical tools used will be further explained in this chapter as well as the methods used in developing the software and for evaluation.
RESEARCH DESIGN Methods of Research Used The proponen proponents ts have used the Descrip Descriptive tive Researc Research h Method Method which which involves involves gathering data to obtain information regarding concerning the current situation and then organize, tabulate, depict and describe the data. Under the Descriptive Research Method, the researchers gathered information of the current system through survey. With the survey method, the researchers are able to gather data on the the behavior, practices, attitudes, opinions, interest and perceptions of the users on the existing and the proposed system, and then such data is analyzed, organized and interpreted.
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RESPONDENTS OF THE STUDY The respondents of the study include the employees wherein the proponents prepare a set of carefully prepared and logically ordered questions. This respondent focuses on the company’s employees for they are very important in a sense that this study is all about them. (See Table 1.) Table 1.0 Respondents Distribution N = 61 Position / Status
No. of Respondents
Percent
Managers
7
11%
Staff
8
13%
Agents
46
76%
Total
61
100%
Table able 1.0 prese presents nts the the distr distribu ibutio tion n of respo respond ndent ents. s. Ther There e was was a total total of 61 respondents who took the survey. Out of the the total, 7 were managers, 8 were staffs and the rest of the 46 were agents.
Data Gathering Tools These are the instruments or tools for gathering data in research used as basis 16
for drawing conclusions or making inferences. Some of these tools are questionnaires, interviews, empirical observations, research and analysis used by the proponents as they conduct the proposed study. Interview. An Interview is defined as a meeting of two people face to face to confer about something or an act of questioning to receive a desired answer that is necessary in solving a specific problem. This is where data gathering occurs by asking questions for much needed information from the interviewee verbally and directly. Observation. This This techn techniqu ique e is used used when when the the resea researc rcher her canno cannott secur secure e adequate adequate or valid data through the use of the questionnaire or some other technique. It is considered to be the most direct means of studying people in so far as their overt behavior is concerned. Observation of a current operating procedure is another data gathering tool seeing the system in action gives you additional perspective and better understanding of system procedures. Research. Research is simply, the systematic search for pertinent information on a specific topic or problem. It is systematic study or investigation or something for the purpose of answering questions posed by the researcher. It includes reviewing journals, periodicals, and books to obtain background information, technical material, and news about industry trends and developments. Questionnaire. A pre-written series of questions used in gathering important information’s from one or more persons. This will be given to the individual who have a direct bearing of the study and in order to satisfy the proponent’s goal that is to get and measure the opinions, polls and attitude of the respondents of the study. 17
Analysis. Anal Analys ysis is is the the proc proces ess s of brea breaki king ng-u -up p the the whol whole e stud study y into into its its const constitu ituent ent parts parts of the the cate categor gories ies accord accordin ing g to the the speci specific fic ques questio tions ns unde underr the the statement of the problem. This is to bring out into focus the essential feature of the study.
Statistical Tools Statistics is one way of getting the information’s organized. To have a general view of the whole scenario of the study, statistical tool is used. This also includes the scali scaling ng syst system em,, which which is used used by the the propo propone nents nts as a techn techniqu ique e to monit monitor or the the respondent’s interpretation of facts. (See Table 2.0 & Table 3.0) Table 2.0 Scaling Systems of Existing and Proposed System Rating Scale
Interpretation
5
Excellent
4
Very Good
3
Good
2
Fair
1
Poor
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Table 3.0 Scaling Systems of Problems in the Existing System Rating Scale
Interpretation
5
Strongly Agree
4
Agree
3
Undecided
2
Disagree
1
Strongly Disagree
Below are the Formulas used to arrive to the computation used by the Statistical Statistical Tool: 1. Mean. The proponents used the mean to be able to identify the range of interest. The proponents obtained the Degree of Efficiency by using the formula: Mean ( ) = f (X1 + X2 + ... Xn) n Where: f = frequency that a given X was chosen by the respondents X = represents any of the numerical ratings 5, 4, 3, 2, 1, representing
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Excellent, Very Good, Good, Fair, Poor respectively. n = total number of respondents
2. Weighted Mean. The proponents also used the weighted mean in order to weight the value of information according to its importance.
Weighted mean (x) = f (X1 + X2 + ... Xm)n N Where: n = total number of criteria 3. T-Test. -Test. The The propo propone nents nts then then used used the T-Tes -Testt in orde orderr to deter determi mine ne and and compare the means of the two populations. T-Test T-Test = t computed comput ed =
WMP – WME
∑MP² + ∑ME² n (n-1) Where: WMP = weighted mean of the proposed system WME = weighted mean of the existing system ∑MP² = square of the summation of all ratings for proposed system
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∑ME² = square of the summation of all ratings for existing system n = total number of respondents
4. CBA (Cost Benefit Analysis) P = F / ( 1 + i )n Where: P = present value F = total savings i = bank interest rate n = number of years
5. FD (Frequency Distribution). The number of observation for each of the possible categories in a data sheet. FD = n x 100% N Where: n = number of cases N = total population of respondents
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SYSTEM DESIGN Analytical Tools The analytical analytical tools tools used used in conduct conducting ing the proposed proposed study study are the System System flowchart, IPO (Input Process Output) and HIPO (Hierarchical Input-Process-Output), which are precisely discussed in this section for the development of the system. System Flowchart. It is formalized graphic representation of a program logic sequenc sequence, e, work work or manufac manufacturi turing ng process process,, organiz organizing ing chart, chart, or similar similar formaliz formalized ed structure. IPO or the Input Process Output. These are the components or elements that make up the system. It is also described as tools on the design of the entire software. HIPO or Hierarchical Hierarchical Input-Process-O Input-Process-Output. utput. A high-level view of the functions performed by a system as its functions and software implementation. Data Flow Diagram. This is a graphic illustration illustration that shows the flow of data and logic within the system. Context Diagram. Diagram. This is an overview of the organizational system that shows the system boundary, external entities that interact with the system, and the major information flows between the entities and the system.
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Methods Used in Developing the Software At this point, the work of the system analyst will be tested to its fullest ability. This is the part where the system analyst must be able to determine and explain the methods that will be used throughout the entire project. Software Development is a tedious task not only for the programmer but also for the system analyst, because they will decide on the type, size and creativeness of the syste system. m. At this this junct juncture ure,, the the meth methods ods used used in devel develop oping ing the the softwa software re must must be explained and defined. The following are the system development methods, namely, software planning, software analysis, software design, software testing and software implementation. Software Planning. This software development method designates a plan in which a system analyst must first identify. Identify meaning, to identify the product goals and requirement of the system. System analyst must also put into consideration the capabilities of the programmer before deciding the product itself. Software Analysis. It can be considered as the most difficult phase because in this this phase phase raw raw mater material ials s or infor informat mation ion’s ’s must must first first exam examine ine thoro thoroug ughly hly befo before re converting it into a software design. Software Design. Design is a visualization of the outcome of a product but then in software design phase, time is very essential because designing software is not an overnight job. It takes a long period of time to ensure efficiency, maintainability and reliability if the software.
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Software Testing. A stage or phase where the proposed system will be given to a panel of critics and end-users for testing. In this way, the developer can determine the response of the user whether the system works or not. Software Software Implementation. Implementation. The phase phase of the softwar software e develop development ment method where software has already been debugged documented and tested. The objective of the the imple impleme menta ntatio tion n phas phase e is to deliv deliver er a comp complet letely ely functi functioni oning ng and and docu docume mente nted d information system. Soft Softwar ware e Oper Operati ation on and and Maint Mainten enan ance. ce. Mainte Maintena nanc nce e keeps keeps the the syste system m funct function ional al at an accep accepta table ble level, level, corre correct ct errors errors and and adapt adapts s chang changes es in the new new environment to provide new features and benefits.
Methods Used for Product Evaluation This part consists of the methods used in evaluating the proposed system in terms of accuracy, efficiency, reliability, speed, portability and user friendliness which lead to the integrity of the proposed system. Technical Feasibility Feasibility.. The The prop propos osed ed syst system em is tech techni nica cally lly flex flexib ible le sinc since e computerization of the existing data is possible and the components needed for the system are widely sold in the market. Market Feasibility. The proposed system of the proponents is market feasible since the respondents will be able to save time in tallying and recording the files of clients. They will also be able to save time and money by not purchasing purchasing a lot of papers
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for paper works and documentations. CBA (Cost (Cost Benefit Benefit Analys Analysis). is). This This estim estimat ates es and and total totals s up the the equiv equival alen entt money value of the benefits and costs to the community about whatever projects to establish establish are worthwhile. Evaluating hardware and software, identifying and forecasting forecasting cost and benefits and performing cost benefit analysis are all necessary activities the system analyst must accomplish in preparing material for the systems proposal.
Operational Feasibility To deter determin mine e if the propo proposed sed syste system m is opera operatio tiona nally lly feasib feasible le to apply apply or implement. Below are the given criteria, which serve as a basis to test the proposed system if it really works. Accuracy. The ability to be precise and avoid errors and the correctness or truthfulness of something especially in the mathematical computation of sales so that the business will not suffer from any losses. Efficiency. The ability to do something well or achieve a desired result without wasted energy or effort, or the degree to which this ability is used in the system. Reliability. The ability to be trusted to do what is expected or has been promised. The ability to be trusted, to be accurate or correct to provide result. Speed. To reach the maximum or desirable rate of movement or progress. To be or become fully informed about the latest developments, to accomplish things in a manner that consumes less time. Speed is the main concern of the proponents so that 25
the the prop propose osed d syste system m will will be imple impleme mente nted d succe success ssful fully ly.. In using using comp compute uterr based based program and the idea of automation, speed requirement should be satisfied. User-Friendliness. Underst Understand andable able softwar software e applica application tions. s. Easy access access and easy to use Windows based system. Portability. The ability to transfer software application to another computer. The proposed proposed system is hosted online so that users can easily access the system wherever wherever they are as long as there is internet access.
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