Esquel Group of Companies

Table of Content
Abstract............................................................................................................................. 1
Chapter 1 Introduction....................................................................................................... 4
Chapter 2 Company Profile................................................................................................ 5
Transaction Process system......................................................................................... 7
MIS.............................................................................................................................. 7
DIS............................................................................................................................... 7
Chapter 3 -Evaluation of Current Business IT Solutions.....................................................8
HRIS Human Resources Information System.............................................................8
eSCM Esquel Supply Chain Management System.....................................................9
MES Manufacturing Execution System......................................................................9
EASN........................................................................................................................... 9
Roles of Information System (IS) in the business............................................................9
Value chain................................................................................................................ 12
Inbound logistic......................................................................................................... 12
Business Drivers.............................................................................................................. 14
Electronic Commerce and Business (ECB)....................................................................14
Application of Technology Drivers.............................................................................14
IT Strategy....................................................................................................................... 15
1.

Office 365........................................................................................................... 15

2.

E-payslip System................................................................................................. 15

3.

Wireless Networks, Printers, Keyboards, Mouse and use of Laptops...................15

4.

Barcode Readers & Finger Print Scanners...........................................................15

IT Models......................................................................................................................... 17
Advantage................................................................................................................. 17
The types of knowledge applied in the company.........................................................18
Structured documents............................................................................................... 18
Use of IT System for Enterprise Resource Planning.........................................................19
HRIS Human Resources Information System..............................................................19
Chapter 4 Propositions for New Business and IT Solutions..............................................20
Use of IT as a competitive strategy..........................................................................20
IT Governance................................................................................................................. 20
Why the need of IT governance in Esquel....................................................................20
References....................................................................................................................... 28

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Esquel Group of Companies

Chapter 1 Introduction

Esquel Group is one of the world's leading producers of premium cotton shirts in the garment making
industry with production facilities from China, Malaysia, Vietnam, Sri Lanka and Mauritius. It has a
solid network of branch offices servicing key markets worldwide for proximity to our dedicated
customers. The Group is one of the most dynamic and progressive global-scale textile and apparel
manufacturers in the present time.

Esquel Group is a vertically integrated and fast growing company operating on the global niche
market namely, with presence in the USA, Europe, mainland China, Hong Kong and Japan. Besides
providing garments manufacturing opportunities, it also offers sales and merchandising services.
The main strength of Esquel Group is that it produces its own yarns, which is the main raw material
used. It thus helps in reducing costs and increasing its profitability. Furthermore Esquel has an overall
end-to-end control over the its production process and is completely independent of the limited supply
or price fluctuation of raw materials. The company has full control from its input, output and
distribution processes.

Esquel Mission
To be the best cotton shirt partner

Esquel Vision
Fun people serving happy customers

Esquel Commitment
To provide total shirt solutions helping customers businesses grow

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Chapter 2 Company Profile
Esquel has implemented a number of IT services which is well established within the group for
optimization of the Companys out for product and services.
A few examples of the use of IT platform made by the company are as follows: HR Department for payroll management and attendance management.
Supply Chain Department for planning the supply chain in an effective way to avoid wastage
in time and materials.
The eASN System is System for generating Advance Shipment Notice (ASN)
All the staffs making use of the system are well-trained to make use of the system.
The established system is capable to generate updated daily business operations reports such as daily
attendance and production level. It can also generate monthly reports such as the payroll and stocks. It
also provides the facilities for users to download PO, generating pre-packing and packing lists and
uploading ASN to and from Hong Kong.
Since this system is extensively used, preventive measures are taken by implementing IT Security by
the dedicated IT Department. For example, there is a system of administrative hierarchy for authorized
access to different system by different users. Not every user can have access to all the existing system.
This is so to protect data and information from unauthorized users and intruders.

Management level
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Budget
Budget
allocation
allocation
Expansion
-new
-new
branches
branches

Exportation
Exportation cost
cost
transportation cost
transportation
cost
look
look for
for the
the best
best export
export services
services

Employee management- Performance of workers

Recruitment decisions, resources required .
Production
Production and
and control
control

Payroll system
Employee
Employee management:attendance
management:attendance of
of workers,erformance
workers,erformance of
of workers
workers
Production
Production dept:Cutting,sewing.
dept:Cutting,sewing. washing,
washing, Iron
Iron and
and packing
packing dept
dept
Machinery maintenance
Day to day expeses

Figure 1: The Hierarchy

Transaction Process system

Esquel has a day to day attendance of workers since they are paid on a daily basis (wages).
Workers performance is also monitored on a daily basis so as they will be remunerated on a later
basis.
Production is also a day to day process. It is important to t have a daily report of production level.
All departments also should be fully monitored to know which department requires more resources or
any kind of machinery maintenance should be done to increase/ maintain production flow.
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Here Esquel uses HRIS- Human Resources Information System

MIS
Employee management needs to have a report based on workers performance; this will help them to
know what motivational strategies can be applied in order to boost their performance. Whether new
workers are required or training must be given to improve workers production level.
The daily report compiled in TPS, the manager should be aware what is going the production level.
He must identify if the target set will be met on time, if not then find an alternative solution like
recruiting or do machinery maintenance in order to optimize the production process.
Here they use MES Manufacturing Execution System

DIS

On this level, the company managerial department focuses on the best means and less costly ways to
sell/deliver the product the targeted market. To find the best and safest way to export the products and
how to tackle the market, verify and proper decision making regarding to client satisfaction and all
other stakeholders and review strategies based on policies sent by stakeholders like government.

The last, where the final decisions are taken such as budget allocated to each departments and the
progress report of the production level. Identify new markets, whether new plants should be set up in
order to have more production.

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Chapter 3 -Evaluation of Current Business IT Solutions

Success in an increasingly competitive marketplace depends critically on the quality of knowledge
which organizations apply to their key business processes. For example the supply chain depends on
knowledge of diverse areas including raw materials, planning, manufacturing and distribution.
Likewise product development requires knowledge of consumer requirements, new science, new
technology,etc.

HRIS Human Resources Information System

HR Management system provides a platform to Esquel that implement the HR management strategy.
Employee management. Payroll system based on time and attendance enable a day to day monitoring
and therefore generate a report for analysis. This analysis enables upper management to take decisions
such as recruitments, training to increase. Kingdee K/3 HRMS provide solution in different industries
such as Manufacturing, Service, Logistics, Trading, Real Estate, Retail and Hotel industries as well as
public organizations and government.

eSCM Esquel Supply Chain Management System

This allow them to cut down cost by decreasing wastage of time and material during production
process.

MES Manufacturing Execution System

The MES (Manufacturing Execution System) is used for Garment factory manufacture management,
include the KPI / CutPlan/GO Route List/Bundle Ticket/WIP/Employee Daily Output module
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EASN
eASN is divided into two parts of program. The first part (Front Office Part) of eASN System is a
program which is used by Production Department in the office for downloading PO, generating
picking list, pre-packing list & ASN as well as uploading ASN to Hong Kong. The second part
(Packing Part) is a program which is used by Packer for generating packing list by scanning and
packing garment and printing UCC Carton Label.

MATS
It helps to keep tracks of machines, spare parts, disposed asset, machine maintenance, and machine
breakdown.
This company uses multiple technologies to avoid data duplication and less wastage of time/materials.

Roles of Information System (IS) in the business

IS plays an important role in Esquel company. Corporate decisions such also based on the information
processed information. This firm has invested massively in information systems to achieve strategic
business objectives.Implementing IS , it helps the company to achieve a greater efficiency and
productivity. It also improved in decision making since IS provide with appropriate information.
Customer and supplier intimacy also are essential.
Huge investments are made on software to keep track of productivity, workers progress and cut cost
on wastage. Compared to the existing competitors like CMT, Aquarelle, it delivers better performance
and charging less for superior product and responding to customers and suppliers in real time.
This is so because its raw materials cost less and the IT team of Esquel are always trying to be more
innovative by implementing better IT solutions. It has an incredible process of collecting data and
processing it. eg every activity is recorded and later processed into a report depending on the impact
and requirement.
It as necessity of business for its survival since every report such as production, workers performance,
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shipping details, machinery updates are being managed through IT.

Competitive Strategies
Gaining competitive advantage is vital for Esquel Group. Competitive advantages are typically
temporary as competitors often seek ways to duplicate the competitive advantage. In order to stay
ahead of competition, Esquel Group have to continually develop new competitive advantages, such as
producing its own yarns thus leading to reduction in cost as compare to other competitors.
To survive and succeed, Esquel Group has developed and implemented strategies to effectively
counter the Michael Porters Five Forces Model. The five competitive strategies are: cost leadership,
differentiation, innovation, growth, and alliance.

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Competitive

Roles of Information Systems

Strategy
Cost

Esquel Group produces its own yarns. This not only help to reduce cost and

Leadership

increase its profitability but also to have control over the whole production
process; that is, from the input to the output process, and also the distribution
process.

Differentiation

Esquel Group uses information systems to develop differentiated features to

reduce

competitors

differentiation

advantages,

i.e using EASN System for generating Advance Shipment Notice (ASN) It is a
program which is used by Production Department in the office for downloading
PO, generating picking list, pre-packing list & ASN as well as uploading ASN
to Hong Kong. Secondly Packing Part is a program which is used by Packer
for generating packing list by scanning and packing garment and printing UCC
Carton Label.
Innovation

Esquel Group has been efficient in its aim to promote sustainable development
across the world. It can be noted that it is the environmental caring aspect
which has contributed heavily to build a responsible and a caring company
image. An example will be the exploration of new ways of washing garment
that are environmentally friendly. It is inevitable that a factory in textile
industry produces waste being released in the environment but Esquel Group
has been successful in implementing ways to reduce the waste and new ways to
least have negative impact on the environment.

Growth
(including
mergers and
acquisitions)

Esquels Research and Development Center which work to

develop value-added products including a wide range of green
products. The green aspect of the group and its production
methods helps to enhance the Groups competitiveness. This
helps the company to ensure its growth on the global market.

Strategic

Esquel uses information systems to create and enhance relations with partners

Alliance

via applications

Table 1: competitive strategy

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On top of these five basic strategies, Esquel can also adopt other competitive strategies facilitated by
information systems to shape its competitive advantage. Some examples include:
Locking in customers or suppliers by enhancing relations and building valuable new relationships
via customer/partner relationship management systems/ applications
Raising barriers to entry through improving operations organizational structure by increasing the
amount or the complexity of the technology required (i.e using more modern technologies as compare
to competitors like CMT, Aquarelle and RT knits).

Value chain
Another important concept and tool that can help Esquel group to identify competitive advantage and
opportunities for strategic use of information systems is Porters value chain model. The value chain
approach views the company as a chain of processes, and it classified an organizations activities into
two categories: primary activities (i.e., inbound logistics, operations, sales & marketing, customer
service, outbound logistics) and secondary activities (i.e., administration, human resources,
technology, procurement).
The value chain helps Esquel to determine the value of its business processes for its customers. By
adding value and thus creating competitive advantages, information systems could contribute to each
part of Esquel value chain and extended value chain (including interactions/ties with external partners
and strategic alliances). By leveraging on the Internet technologies, Esquel has created a value web.

Inbound logistic
Esquel produces its own raw materials which are of good quality.
Producing for own production mean auto sufficient raw materials to meet the demand in the market.

Operation
In house production, Esquel processes the product from raw material to finish product.
The production chain is well planned and set up in countries where labour cost is cheaper.
Being the fact of producing the raw materials, the company caters to fulfill all its orders on time.
They maintained their standard in the global market.
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Outbound logistic
Esquel Group is known to make its customers happy through an ethical behavior in all its operations
and processes. It completes the orders assign to it on time Esquel Group has been appreciated and
recognized for the quality products and services offered to the supplier.

Marketing and sales

Due to its good quality product and probably low cost since its produces its own raw material, Esquel
has a good prospect in the market. Its product is sold in various countries such as European and
American market.
Another factor that plays an important role in its marketing strategy, it is trying to adopt eco friendly
approach in its process of production such as washing fabrics.

Services
Esquel is not only innovating itself in the green society but also involving clients in its creation and
product development. Esquels efforts to engage with the community at large through encouraging
education for the underprivileged because education is an effective way to help rise out of poverty and
improve their future livelihood and educating children on how to protect our environment.

The competitiveness advantage

Produce its own raw materials.

Set up factories where there labour is cheap.
Have a wide market.
Low prices and better quality product.
A well derieved process chain. All process in house, therefore quality of product is fully

maintained.
Esquel has been working as a global team and has involved its clients in the creative and
product development process

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Business Drivers
Electronic Commerce and Business (ECB)
It is picking up as one of the most effective means of doing business in order to gain competitive
advantages over competitors. It is used to investigate and enter new and promising markets,
communicate in real time with potential clients, keep an open line of communication with suppliers
and buyers and also to boost the sales capacity of the organisation.

Application of Technology Drivers

1. Convergence and Virtualization Assembling all the processes from production of
raw materials to selling of value-added finished products to suppliers under a single roof; very often
called as a one-stop-shop.
2. Cost Saving - Reduced Time to Market (TTM) for new services, Total Cost of Ownership
(TCO) of IT infrastructure and business services. Maximising profits during cutting, manufacturing,
packing, shipment, etc..
3. Openness - Adopting open standards and technology as a technology strategy reduces vendor
lock-in and provides flexible and agile technology platform. Sharing of technology with other
partners/ stakeholders.
4. Reuse - Reusing services may facilitate use of legacy systems, constantly, rewrite software or
purchase new packaged applications which makes IT more efficient, allowing for shorter cycle times
and quicker project delivery.
5. Agility - Loose coupling increases application agility and reduces time to market for a new
application keeping costs to minimal.
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IT Strategy
1. Office 365

Mobile email one-drive is used to access documents & emails on mobile devices and
computers anywhere in the world.

2. E-payslip System

Workers can check their payslips via mobile computers in various locations in the factory.

3. Wireless Networks, Printers, Keyboards, Mouse and use of

Laptops

The company has invested in several new wireless technologies such as the use of wireless
devices (printers, keyboards and mouse), wireless networks, and the use of mobile devices
such as laptops, Ipads and portable radio telephones (Walkie Talkie).

4. Barcode Readers & Finger Print Scanners

The company makes use of finger print scanners to track the daily attendance of its workers
and there is the presence of barcode readers in departments such as Ironing and Packing to
facilitate daily operations of sorting out different garment portions.

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Business Model
Esquel Ltd seeks to generate maximisation from its business process as a Garment production unit. It
depicts also its strategy of production, distribution, reduction of costs and maximisation of profits
through its marketing strategy. It also considers the internal players and external players to optimise the
conversion of inputs into outputs and the opportunity cost of capital. It provides the fundamental
linkage between product markets, within the industry, and the markets for the factors of production
such as labour and capital.

The 9 building blocks that constitute the Esquel Ltd business

model:1. Value Proposition
Esquel Ltd offers high quality value-added readymade garments to a very selective and niche
market worldwide. As resources are scarce, the company produces its own raw materials and
thus is independent of the availability of resources on the market and have full control over the
price and hence on the cost of production.
2. Client Segment
There are specific MOUs and contracts with the clients/ buyers which have been drawn well in
advance and this ensures that all the production are being absorbed at a guaranteed price.
3. Communication and Distribution channels
The use of IT is very prominent of the Communication and Distribution Channels as allows
time saving and ensure a total control and monitoring of the whole processes involved. There
are SAP which has been acquired by the Company to ensure that the process is smooth and
objectively evaluated.
4. Clients Relationships
Internal and External Clients are encouraged to communicate and develop networking which
allows all concerned to verify at each process of the products and services that they are offering
to or getting from Esquel Ltd.

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5. Key resources
The key resources are of course, the people and their experience; however the company has
invested massively in hi-tech machines and equipments. These have been thoughtfully
calculated to ensure that recovery over capital investments are optimised for early return as
advised by the financial management department and after proper research and investigations.
6. Key activities
The key activities of the company is from the initial negotiations with potential buyers to agree
on the products to be delivered and the agreed price through contracts, purchase of raw
materials required, production and packing under strict quality control, shipment and
administrative supports.
7. Key Partners and their motivations
The key partners are the buyers, suppliers, management and factory workers, shipping
department, etc.. They are all informed at all stages of the process of the progress of the
activities and their collaborations are sought through engagements.
8. Revenue generated
This is an important component which requires diligence from the account and finance
departments to monitor that all supplies are being managed in a very timely manner to ensure
that other proceeding processes are not hindered or hampered. The marketing section is also
required to make proper technical specifications available and sound market surveys carried out
before any procurement.
9. Cost Structure
Costs analysis and forward planning is very important before the above proves is carried.

IT Models
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The company uses an Enterprise resource planning
Advantage

Most of the platforms being used are standardised.

Better management.
It is a single software with no or less duplicate data.
Once set up, it has a low maintenance cost.
Easily to retrieve information required.
Information available is real time.
No duplication data refers to better information management.
In case of Esquel, they use the system to cut cost also which refers that there is a better
management of resources e.g raw material.

Increase production.
Potential external advantage

Improves services- delivery on time

Increase in production result to increase in sales.

Disadvantage
The set up cost is very expensive.
Training is required to use work with it, each time new upgrade to software.
Workers can resist changes, people are not flexible and they do not adapt new things easily.
Every software got a limitation since it is human invention, so here also, there is a limitation
eg cannot migrate with other software.
Another major drawback, in case of system shut down, Esquel may be face heavy losses since
all information are in the system. For a while, they might be helpless therefore backup is
always required.

Use of IT System for Enterprise Resource Planning

Examples:-

HRIS Human Resources Information System

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The HRIS provides a platform for the HR Department to have an efficient management strategy. The
basic information from employees details, clock in/out time, etc.. not only helps the HR but also the
Finance Department for payroll Department to perform their daily operations and generate required
report for analysis. This system is capable to generate instantly the performance of any employee in
terms of attendance, absentees, number of leaves taken, etc which are useful information for
evaluating and upgrading the employees status.

SCM Supply Chain Management System

The SCM is an information hub containing details from Buyers Information, Job Order Number,
different garment portions, washing process, packing details and delivery deadlines and shipping
information. It is used by all concerned departments from Planning & Control, Production, Sewing,
Washing, Packing and Shipping.

MES Manufacturing Execution System

The MES is used in the Production Department and includes the Key Performance Indices for
production performance evaluation, Cut Plan by the Cutting Department for the optimisation of basic
fabric materials, Garment Order Route List, Bundle Ticket for identification purposes, Work In
Progress data for major departments and Employee Daily Output module. These are important
information which should be monitored on a day to day basis and are thus available at short notice by
the Production Management.

EASN - Esquel Advance Shipment Notice

The EASN System is used for generating Advance Shipment Notice prior to the goods leaving the
factory. It is divided into two parts:
Front Office Part It is a program used by the Administrative staff of the Production Department for
downloading Purchase Orders, generating Packing List, Pre-Packing List & ASN.
Packing Part It is a program used by the Packing Department to generate Packing List by scanning
the packed garments printing UCC Carton Labels.

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Chapter 4 Propositions for New Business and IT Solutions
Use of IT as a competitive strategy

1. Fitting Commercial Software

Installation of Microsoft Office 365 within the Esquel Group.

2. Improving Customer Service

After the shirt has been sewn and washed, buyer representative inspects the garments before
packing.

3. Reducing Cost & Improving Productivity.

Esquel encourages Recycling; Paper, Water, and even unused Fabrics are recycled.

The company is constantly investing in new Green Technologies; for example, the Washing
Dept uses the E-Soft technology this technology enables using only 5 L of water to wash 100
pcs of garments (as compared to 1000 L for 100 pcs in old conventional washers).

4. Automation

Resorting to the use of new machinery to replace manual labour is proving to be more efficient
and is increasing productivity in the factory.

How IT is giving Esquel competitive advantage:

ERMS (resource management system)
A lot of resource is wasted due to wastage and mismanagement of the resources.
To answer this problem we have decided to implement a new Electronic Resource Management
System which will help manage the use, allocation and tracking of resources such as
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Spare parts
Raw Material and polybags
Information about machines
human resource allocation

Spare parts
Esquel uses high tech machineries for the production of the garments; however one problem is that due to
heavy wear and tear in everyday use there is frequent need to change parts and perform routine maintenance.
Many spare parts are not available in the local market and the procurement of these spare parts needs to be
imported which take about 1 month to come.
In some cases, according to reports, spare parts which were supposed to be available in the store, was not
found, Machines had to remain off for one month until the appropriate spare part shipment arrives.
One way to overcome this problem is to create a follow-up of the spare parts and setting up a system which will
easily be updated when someone takes a spare part from the store. Furthermore this system will issue a warning
when the stock of certain item is below certain stock level. The system will automatically issue a mail to the
concerning department with the current stock level and the history of allocation of these resource in the past
months. The department manager can use this information to decide on the order quantity and order the parts.

Raw material
A lot of wastage results from improper selection of the raw material for cutting, for example using a
cloth meant for an extra-large shirt to cut a large size shirt.

Machines
The new software will cater to track location of all the machines with the help of a tag. The tag will
contain information of the machine for eg the type of machine, the production line it is located, the
operation type, etc which will be stored in the database for tracking purposes. Using this information,
it will be easier to identify which machine located in which area is having problem and a mechanic
can be sent directly to that production floor. This will result in reduction of time the machine is not in
operation. Therefore it will serve as a competitive advantage as there will be reduction in wastage of
time. Moreover the system also allows retrieving report of a specific machine history. For example it

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will be easier to identify the time taken per mechanic to repair a machine and the spare parts used.
Also, the new system will cater for machine maintenance.
Human resource allocation planning:
One day to day problem is that many workers take their medical leaves thus affecting planning and
jeopardizing delivery.
The system to be developed should be able to keep track of current planning and delivery schedules;
in case of unexpected absences the system should be able to reallocate workers who are working in
less priority works to jobs having more priority.
Furthermore, the system will also be able to monitor progress against the plan and issue alert when it
detects that there is a possibility for the task to go off tract from the initial planning.

Business Model Canvas:

Key Partners:
DHL logistics partner
Ngai Shing/Gerber machine suppliers
Esquel Enterprise Ltd raw materials supplier

Key Activities:
Transportation of machines from suppliers to factory premises
Minimize freight cost by ordering bulk quantities.
Buying from subsidiaries group will also help save cost of raw material

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Value Preposition:
Promise to customers to use first grade raw materials to produce garments.
Ensure that delivery schedule is respected by liaising with logistics partner.
Ensure that customers have a low carrier fee to pay since Esquel exports in bulk quantity.

Customer Relationships:
Establish a strong partnership with our customers. Maintain the trust and enforce the bond by
providing high quality products and services to them.
Customer Segments:
Tommy Hilfinger, Nautica, J-Crew are the main customers, and their main distribution channel is in
the US.
Key Resources:
Our Distribution channels are in strategic places around the world. Hong Kong, England, USA and
Canada are the hot spots for our customers warehouses.

Channels:
By making use of green technologies, and ensuring the highest quality of product produced, we are
reaching out to our customers by sharing their concerns for the environment.

Cost Structure:
Most important costs are cost of raw materials, machinery, labour, and freight charges. Among those,
the key resources are raw materials and cost of freight. Thus, by creating a partnership with DHL and
the raw materials supplier, Esquel is structuring its business model around reducing cost of the key
resources.

Revenue:
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The customers pay for high quality of cotton garment. Thus, Esquel needs to ensure that it is using the
highest quality of raw materials available to produce the cotton garments according to buyer
requirement.

IT Governance
IT governance is about putting structure around how Esquel align IT strategy with business strategy,
ensuring that the organization stays on track to achieve ways to measure ITs performance. IT
governance makes sure that all stakeholders interests towards Esquel are taken into account and that
processes provide measurable results.
Why the need of IT governance in Esquel
Implementing IT governance in Esquel will help to provide more assistance to top management such
as better view about financial situations, organizational environment, to plan the policies and
processes by using them in specific areas of operations. It is vital for Esquel to carefully plan strategy
prior to invest in any project to ensure with high confidence that they achieve their business
objectives, gain effective outcomes and attain higher business productivity.
Therefore, Esquel considers protecting their business from risks and uncertain situations by
implementing IT Governance to strengthen their business.

Improved
Esquel
performance

More Flexible

Fewer risks

More satisfied
with results

Save Time

More Effective
Decision Making
Quicker
Decision Making
More
Betterformal
quality of
Bettersavings
Fewer
More
conflicts
processes
delivery
relationship
productivity

Impacts of adopting
IT Governance in Esquel
More
sustainable

More reliable

Higher
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More
Acceptable
responsibility
Quicker
process
Quicker
project
development
in
Improvement
Better
cost
implementation
Business
control

Esquel Group of Companies

Better
Communication

Figure 2: Impacts of adopting IT Governance in Esquel

Chapter 5 : Conclusion
Today, information technology must be conceived of broadly to encompass the information that
businesses create and use as well as a wide spectrum of increasingly convergent and linked
technologies that process the information. In addition to computers, then, data recognition equipment,
communications technologies, factory automation, and other hardware and services are involved.

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Esquel Group is one of the leading textile companies in the world, and it has achieved this ranking by
evolving its business model, and by using IT as one of the pivotal services in the organization. By
implementing new IT systems and upgrading the current one, Esquel will be able to achieve another
level. IT is used for its daily activities, such as teleconferencing, email liaising with suppliers and
customers, amongst others. Through the use of IT, Esquel has got a competitive advantage against its
competitors. Esquel group plans to further implement IT services, such as automation, to boost its
efficiency and ensure that it meets with its clients demands altogether with reducing the cost of
production. Automation needs high level of machine programming (PLC- Programmable logical
control) that is, using specific software for installing the human interface. This will help the company
to overcome the problem of finding local skilled workers as these machines just need 1 single touch
and they start working automatically.

References
Ankit Bhatnagar. (2006). Strategic Information Systems Planning: Alignment of
'IS/IT' Planning and Business Planning, Unitec New Zealand
Baltzan, p. & Phillips, A. 2010, Business Driven Technology, 4th edn, McGraw-Hill
Irwin, Boston, USA.
Blois, K., Trust in business to business relationships: an evaluation of its status,
Journal Management Science, Vol. 36, NY, 1999.
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Callon, J. D., (1996). Competitive Advantage through Information Technology. New

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