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Pathao Using Information System

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SOUTHEAST UNIVERSITY

Masters of Business Administration


TERM PAPER
MIS & Decision Making Technique (MIS522.1)
(Iftekhar Shahab Uddin)

Prepared By

MD Shahzaman Hridoy
Farhan Uddin Sifat
Meherunnessa Mira
Take a company of your choice (Local or Foreign) & gather following
information:
1. Company Background Information (Apart from company information, which industry is
it operating, what product or service is it involved in?)
2. Current Goals, Objectives, Vision & Mission of the company
3. Does the company use information system in producing products & providing services to
the customers? Explain how?
4. Why do you think your chosen organisation has adopted information system in its
operation? Explain
5. How has the organisation been affected due to use of Information System? Explain
6. What can be done by the management of the organisation in order to overcome the
problems?

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Table of Contents

Page

1. Executive Summary 3
- Purpose of the Document
- Overview

2. Pathao's Background Information 4


- Historical Context
- Key Concepts

3. Pathao's Current Goals, Objectives, Vision and Mission 5


- Objectives
- Vision
- Mission

4. Information system in producing products& providing services to the customers 6


- Overview

5. Pathao Has adopted Information System 7,8


- Case Study

6. Organizational affects due to use of information system 9,10

7. To address & Overcome Problems By Pathao.


11,12
8. Conclusions
13
9. References 14

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Executive Summary

Pathao, a leading Bangladeshi consumer technology and logistics company, recently set a
strategic direction focused on expanding its fintech offerings and solidifying its role as an
all-encompassing lifestyle platform. Through its revised mission, Pathao aims to simplify
lives by delivering convenience, reliability, and innovation across sectors, including ride-
sharing, food delivery, parcel, and courier services. The company emphasizes a close
connection to customers, encapsulated in their brand identity statement, "Pathao is Here
With You," aiming to be a trusted companion in everyday tasks.

Pathao’s current goal is to drive fintech innovation in Bangladesh, highlighted by recent


initiatives like the Pathao Pay digital wallet and "Pay Later"—the country's first buy-now-
pay-later solution. These financial tools are designed to serve the growing needs of young
professionals and tech-driven entrepreneurs, aiming to provide over 5 million users and
500,000 businesses with better financial access and personalized financial solutions. With
recent funding, Pathao is positioned to expand these services, enhance technology, and
deepen its customer reach, ultimately driving transformation within the local fintech and
digital economy sectors.

Pathao's mission reflects a commitment to empowering users to turn everyday constraints


into opportunities, striving to create a seamless user experience across its digital and
financial services. This transformation positions Pathao as a significant player in the
region’s fintech ecosystem, building on its extensive logistics and technology expertise to
impact Bangladesh’s digital landscape positively.

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Pathao's Background Information

Pathao, established in 2015 by Hussain Elius, Shifat Adnan, and the late Fahim Saleh,
is a pioneering on-demand services platform in Bangladesh. Originally starting as a
logistics service for e-commerce companies, it later expanded into ride-sharing with
motorbikes and cars, initially through a Facebook group. With the launch of its app
in 2016, Pathao accelerated growth in ride-
sharing across Dhaka and later expanded to Chittagong and Sylhet. Pathao also
launched in Kathmandu, Nepal, making it the first Bangladeshi startup to go
international.

Pathao’s services now include a broad range of on-demand offerings. Its popular bike-
sharing service provides faster travel options in congested areas, while Pathao Cars
offers both economical and premium car services. Pathao Parcel and Courier are
widely used for intra- and intercity deliveries, and Pathao Food, launched in 2018,
quickly became the largest food delivery service in Dhaka and Chittagong. Recently,
it expanded further with "Pathao Tong" for essential goods and Pathao Pharma for
medicine delivery.

Pathao has shown resilience and adaptability in a competitive market, using a customer-
focused approach and a flexible organizational structure. Today, it operates with over 500
employees and partners with thousands of restaurants and retailers to provide a wide array of
services across Bangladesh and Nepal. The company’s success is rooted in its commitment to
convenience and competitive pricing, aiming to simplify life and support digital
transformation in the region.

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Pathao's Current Goals, Objectives, Vision and Mission

Here’s a concise outline of Pathao's current goals, objectives, vision, and mission:

Current Goals:

1. Expand Fintech Offerings: Focus on Pathao Pay (digital wallet) and "Pay Later" services to
enhance financial accessibility in Bangladesh.

2. Increase Market Presence: Strengthen its ecosystem to become an essential part of daily life
through services in transport, food, and parcel delivery.

3. Drive Digital Transformation: Support Bangladesh’s move towards a cashless economy


through digital solutions.

Objectives:
Customer-Centric Innovation: Develop user-friendly services that address local needs,
especially in urban mobility and digital payments.

Scalable and Sustainable Growth: Grow services across Bangladesh and Nepal, and maintain
competitive pricing to ensure broad accessibility.

Operational Efficiency: Invest in technology and infrastructure to optimize delivery speed


and service reliability.

Vision:

Empower Bangladeshis: Transform daily challenges into opportunities for convenience,


accessibility, and empowerment.

Mission:

Simplify Everyday Life: Provide reliable, convenient, and innovative solutions that make
everyday activities easier for users.

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pathao information system in producing products& providing services to
the customers

Pathao relies heavily on an information system (IS) to operate efficiently. The information
system supports various aspects of Pathao’s business, including order management, real-time
tracking, customer service, and communication between different departments. Through its
mobile app and website, Pathao collects customer input (orders, location data) and processes
it to manage delivery logistics, calculate prices, and update inventory.
Additionally, Pathao’s IS facilitates internal communication, allowing senior management to
send updates across departments and track employee performance. The system also helps in
analyzing customer behavior and demand patterns, enabling Pathao to tailor its services and
make data-driven decisions. This integration of technology gives Pathao a competitive
advantage in Bangladesh’s rapidly changing market, allowing it to provide unique,
convenient services accessible directly from customers' homes.
Pathao utilizes its information system (IS) both in delivering services and managing its
operations, even though it is not a product-manufacturing company. Here’s how Pathao uses
it IS in service delivery:

1.Service Management: Pathao’s IS supports its core services,


such as food and parcel delivery and ride-hailing, by processing
customer orders and assigning tasks to drivers. It helps manage
scheduling, order fulfillment, and real-time updates, ensuring
that each service request is processed efficiently.

2. Real-Time Tracking: The IS uses GPS to track drivers in real


time, allowing customers to see the location of their delivery or
ride. This feature enhances customer satisfaction by providing
transparency and reducing wait-time uncertainty.

3.Dynamic Pricing and Order Processing: The system calculates costs based on distance,
traffic, and demand, providing dynamic pricing. It also updates Pathao’s inventory (e.g.,
available drivers) and provides order processing information to management for smoother
operations.

4.Customer Support and Communication: Pathao’s IS enables 24/7 customer support


through the app and website, offering an accessible way for customers to communicate with
the company, making inquiries, or resolving issues.

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5.Data Analysis and Service Improvement: Pathao collects data from customer interactions,
order patterns, and feedback, which it analyzes to improve services, optimize delivery routes,
and understand market demand. This data-driven approach helps Pathao offer relevant
services at competitive prices.

In summary, Pathao’s information system is essential for providing and managing its services
effectively, ensuring smooth operations, enhancing customer experience, and maintaining a
competitive edge in the market.

why do you think pathao has adopted information system in its


operation

Pathao adopted an information system (IS) in its operations for several key reasons,
primarily to meet the demands of a competitive and rapidly changing market. Here are some
major reasons why IS is essential for Pathao:

1.Operational Efficiency: As a logistics and ride-hailing company, Pathao handles high


volumes of orders daily. An information system allows it to streamline order processing,
manage drivers, and efficiently allocate resources. This automation reduces manual work,
minimizes errors, and improves response times.

2. Real-Time Tracking and Transparency: GPS integration within the IS enables real-time
tracking of drivers and deliveries. This feature offers transparency for customers, allowing
them to track their orders or rides, which enhances customer satisfaction and trust.

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3. Scalability and Growth: Pathao has grown quickly, with thousands of drivers and a large
customer base. A robust IS supports scalability by providing a centralized platform to
manage operations across multiple locations, making it easier for Pathao to expand and
handle increasing demand without compromising service quality.

4. Enhanced Customer Experience: Pathao’s IS allows 24/7 customer service and provides
features like dynamic pricing, real-time updates, and feedback options. This convenience and
accessibility are critical for a positive customer experience, which is essential for customer
retention and growth.

5. Data-Driven Decision-Making: With an IS, Pathao can collect and analyze data on
customer behavior, demand patterns, peak hours, and feedback service. These insights help
the company make informed decisions on service improvements, pricing strategies, and
marketing efforts, allowing it to stay competitive and responsive to market needs.

6.Cost Reduction: By automating many operational processes and reducing the need for
manual oversight, Pathao can cut down on labor and operational costs. For example,
automated inventory and order management systems reduce the resources needed to track
drivers and manage services.

7.Improved Internal Communication: For a large team spread across the country, an IS
allows Pathao’s senior management to communicate quickly and effectively with employees
and drivers, keeping everyone updated and aligned with the company's goals.

In summary, Pathao’s adoption of an information system helps it deliver a seamless, efficient,


and customer-centered experience, all while supporting its growth and profitability. The IS
enhances operational capabilities,
provides valuable data insights, and allows Pathao to stay agile and competitive in
Bangladesh's tech-driven market.

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Organization affects due to use of information system

Pathao, one of Bangladesh's largest e-commerce companies, provides online services to


customers across the country, focusing on two main areas: delivery and logistics, and
motorcycle taxi services. As a digital business, Pathao relies heavily on a management
information system (MIS) to optimize its operations.
This integration allows Pathao to effectively monitor business progress, address technical
issues, and track employee behavior. The company employs around 500 freelance drivers,
each completing an average of three to four rides per day and offers 24/7 customer support
accessible via its app and website. GPS technology helps Pathao’s team track the precise
location of customers for timely delivery or ride services, as well as monitor ride durations.
Additionally, Pathao's dynamic pricing system on its website allows customers to access
services at the best available rates, providing convenience without the need for physical
travel, which helps alleviate traffic congestion. Online payment options further streamline the
customer experience by reducing time spent on transactions.
Pathao has developed a mobile-friendly app that provides customers access to multiple
platforms, including its website, computers, mobile devices, and 24/7 customer service. The
website serves as a primary communication tool, enabling Pathao to receive valuable
feedback from customers, which helps senior management make effective long-term strategic
decisions, such as conducting primary and secondary market research. Without such
feedback, management would struggle to develop accurate forecasts for business expansion.
The integration of an information system (IS) has significantly transformed Pathao’s
business culture. Traditionally, businesses require a large workforce to handle various tasks,
but Pathao now automates many processes through it IS.

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With around 500 freelance drivers across the country, manually tracking each worker would
be challenging. The IS enables Pathao's human resources department to efficiently manage
and monitor employee activities, improving record-keeping and operational efficiency.

Pathao’s information system not only helps monitor employee behavior and attract new
talent but also aids the sales and marketing department in analyzing customer demand and
spending patterns through data from the website, such as customer bills. This data provides
Pathao with insights into the preferences of their target audience, enabling them to tailor
services to meet customer needs effectively. By understanding demand, Pathao can offer the
right services at the most competitive prices, aligning with customer expectations and
enhancing overall satisfaction.
The use of an information system at Pathao has streamlined communication within the
organization, making the decision-making process faster and more efficient. With thousands
of employees spread across the country, it would be challenging for senior management to
communicate individually. Instead, management can use emails to share updates with
departments nationwide, ensuring employees receive the latest information. This reduces the
risk of information distortion as messages pass down from senior to operational
management. The information system also bridges lower-level and senior management,
fostering a sense of unity among lower-level employees and helping them feel more connected
to the organization’s goals.
The information system at Pathao is essential for managing departments and aligning them
to work towards a unified objective. In a fast-evolving market, Pathao would struggle to
compete without such a system. The information system supports a unique organizational
culture that provides Pathao with a competitive edge. It enables Pathao to offer distinctive
services accessible from home, making customer convenience a priority. Thus, the
information system is fundamental to Pathao’s success and its ability to remain a leader in
the industry.

In Pathao's system, input refers to raw data originating from both the business and the
external environment. When customers place orders through the app, this information is
transmitted to the organization’s management. The management then processes the data
internally, such as calculating the total price and updating stock levels, while keeping these
details hidden from the customers. Finally, Pathao generates and sends sales receipts to
customers, completing the transaction process.

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To address and overcome problems faced by an organization like
Pathao, management can consider the following strategies:

1. Enhance Customer Service

Training Staff: Regularly train customer service representatives to improve communication


and problem-solving skills.
Feedback Mechanism: Implement a robust feedback system to identify customer pain points
and address them promptly.

2. Optimize Technology and Infrastructure


App Improvements:Regularly update the app to fix bugs, enhance user experience, and add
features based on user feedback.
Data Analytics: Use data analytics to better understand user behavior and improve service
offerings.

3. Strengthen Partnerships
Collaboration with Local Businesses: Partner with local businesses for promotions or
discounts, enhancing value for users.
Regulatory Engagement:Maintain open lines of communication with regulatory bodies to
ensure compliance and address potential legal issues.

4.Expand Training Programs for Drivers


Safety Training: Provide regular training on safety protocols and customer service for
drivers.
Incentives for Performance:Create incentive programs to reward drivers for good service and
punctuality.

5. Implement a Comprehensive Marketing Strategy


Targeted Campaigns:Use data-driven marketing strategies to reach specific user
demographics effectively.
Social Media Engagement: Increase engagement on social media to build brand loyalty and
address concerns.

6. Improve Logistics and Operations


Route Optimization: Use technology to optimize routes for faster and more efficient
deliveries.
Capacity Management: Monitor demand trends to manage driver availability effectively.

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7. Foster a Positive Organizational Culture
Employee Engagement: Regularly engage employees to understand their challenges and
foster a collaborative work environment.
Recognition Programs: Implement recognition programs to motivate staff and drivers.

8. Enhance Communication Channels


Regular Updates: Keep users informed about service updates, promotions, or changes
through newsletters and app notifications.
Community Forums: Create platforms for users and drivers to share experiences and
suggestions.

9.Diversify Service Offerings


Expand Services: Consider introducing new services like food delivery, logistics solutions, or
parcel delivery based on market demand.
Flexible Pricing Models: Develop varied pricing strategies to attract different customer
segments.

10. Monitor and Evaluate Performance


Key Performance Indicators (KPIs): Establish KPIs to regularly assess service quality and
operational efficiency.
Continuous Improvement: Implement a continuous improvement process to refine services
based on performance metrics.

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Conclusion:

The Role of Information Systems in Pathao's Success .In today's digital landscape, effective
use of information systems is crucial for organizations like Pathao to enhance operational
efficiency, improve customer experiences, and maintain a competitive edge. By leveraging
advanced information technologies, Pathao can streamline its operations, facilitate real-time
communication, and harness data analytics for informed decision-making.

1. Enhanced Decision-Making: Information systems provide critical data insights that


empower management to make strategic decisions based on real-time information, helping to
adapt to market changes swiftly.

2. Improved Customer Engagement: Through user-friendly apps and efficient customer


service management systems, Pathao can foster stronger relationships with customers,
ensuring their needs are met promptly and effectively.

3. Operational Efficiency :Automating various processes—from driver dispatch to route


optimization—reduces manual errors and enhances service delivery speed, ultimately leading
to increased customer satisfaction.

4. Data-Driven Insights: By analyzing user data and feedback, Pathao can identify trends,
preferences, and areas for improvement, allowing for continuous enhancement of its services.

5. Competitive Advantage: An effective information system allows Pathao to stay ahead of


competitors by quickly responding to user demands and market trends, while also enabling
innovative service offerings.

In conclusion, the strategic implementation of information systems is not just beneficial but
essential for Pathao’s growth and sustainability. By embracing technology and data, Pathao
can navigate challenges, seize new opportunities, and deliver exceptional value to its users.

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References :
Ref-1:
https://www.techinasia.com/hussain-elius-pathao
Ref-2:
https://futurestartup.com/2021/03/10/the-future-startup-dossier-pathao/
Ref-3:
https://www.tipsnepal.com/pathao-case-study/
Ref-4:
https://pathao.com/

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