ISLAMIC UNIVERSITY IN UGANDA KAMPALA CAMPUS

FACULTY OF SCIENCE DEPARTMENT OF COMPUTER SCIENCE INTERNSHIP REPORT CARRIED OUT AT KINYARA SUGAR LTD (MASINDI) BACHELOR OF INFORMATION TECHNOLOGY BY SULEIMAN ABDUL 209-063011-01931 0703607845 designer abdul@gmail.com

MR.KATONGOLE MUHAMMED

AN INTERNSHIP REPORT SUBMITTED TO THE DEPARTMENT OF INFORMATION TECHNOLOGY FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A BACHELORS DEGREE IN INFORMATION TECHNOLOGY OF ISLAMIC UNIVERSITY IN UGANDA

TABLE OF CONTENTS

CHAPTER ONE INTRODUCTION

1.1 Background of the study

Kinyara sugar works limited is located in Masindi District in the Western Region of Uganda between 1o 22'-2o 20' N and 31o 22'-32o 23' E. It borders Gulu in the north, Apac in the east, Nakasongola in the southeast, Kiboga in the south, Hoima in the southwest and the Democratic Republic of Congo in the west. The district lies at an altitude range of 621m to 1,158m above sea level. It comprises a total area of 9,326 sq km, of which 8,087 sq km is land, 2,843 sq km wildlife-protected area, 1,031 sq km forest reserves, and 799.6 sq km water. 1.2 The main location The main factories of the company are located in the town of Kinyara, in Masindi District, Western Uganda. Kinyara lies approximately 15 kilometers (9.3 mi), by road, west of Masindi, the nearest large town. This location lies approximately 230 kilometers (140 mi), by road, northwest of Kampala, the capital of Uganda and the largest city in that country. The coordinates of Kinyara Sugar Works Limited are: +1 38' 7.80"N, +31 36' 19.80"E (Latitude: 1.635500; Longitude: 31.605500). In addition to the factories at Kinyara, the company maintains a corporate office in Kampala and warehouses, in Kampala and Masindi
The district is divided into three major climatic (rainfall) zones: high rainfall (>1000mm), medium rainfall (800-1000mm) and low rainfall (<800mm). On average, the district receives about 1,304 mm of rainfall annually. However, severe water shortages are experienced in Kimengo and Masindi port sub-counties during dry season. The climate (annual average temperature of 250C) and soils are favorable for agriculture.

In the late 1960's, the Government of Uganda, established a sugar plantation and factory at Kinyara, just outside the town of Masindi (Masindi District). During the political and

economic turmoil in Uganda in the 1970s and 1980s, Kinyara was adversely affected and production of sugar ceased. In the 1990s, as part of revitalization efforts, the government sold 51% shareholding in Kinyara Sugar Works Limited to the Rai Group, a Mauritiusbased investment group. KSWL has recovered and the Ugandan government is planning to divest the remaining 49% it owes in the enterprise, by floating its shares in an IPO on the Uganda Securities Exchange in 2011.

Kinyara sugar works limited among largest manufacturers of sugar in Uganda, producing an estimated 127,000 metric tones annually, accounting for approximately 30% of national output. sugar manufacturers in Uganda is marketed to the Eastern African countries of Burundi, Democratic Republic of the Congo, Kenya, Rwanda, Southern Sudan, Tanzania and Uganda. 1.3 Problem Statement

As manifested by many insurance customers they find difficulties on limited service operation hours which calls for a better solution that can address 24 hour services, location independent processes.

1.4 Purpose of the study The purpose of this study therefore is to critically analyze requirements, to design and implement an online motor insurance system that will ensure efficient and effective access of insurance for the motors of interested parties. This is meant to address the research question How do insurance companies relate the initiation of ICT and the internet to modernize their management routines for effective and efficient third party motor insurance delivery to their clients? 1.5 Objectives of the study To analyze the system, user and functional requirements gathered for the system to be developed. To design a system that will facilitate with online third party motor insurance access and dissemination via the World Wide Web technology both locally and

internationally. To implement and test a prototype of a web based third party motor insurance system. 1.6 Significance of the study Embracing the proposed technology will bring about reaching benefits to the researcher, consumers insured and insurance companies at large. 1.7 Benefits to insurance companies It will help the companies provide a rich content base to their clients by improvising all the necessary third party motor approaches to the clients all the time; a case of 24 hours. 1.8 Benefits to the Researcher Creswell (2000) advices that it is important to consider your career goals when choosing your research topic. Saunders et al (2007) also concur that if you wish to become an expert in a particular subject area or industry sector, it is sensible to use the opportunity to develop expertise (pp, 21). In this regard, it is believed the study will enhance the researchers career prospects through learning about a new field in the area of specialization. The study will also give the researcher an in depth applicability of all topics learned during the course including; web designing, programming, databases, system analysis and project management among others. 1.9 Scope of the study This study will focus on developing an online third party motor insurance system that will facilitate the practical approaches of providing insurance to clients 24 hours seven days a week.

CHAPTER TWO LITERATURE REVIEW

2.1 Introduction The purpose of this literature review was to identify the scholarly issues that have been discussed in the domain of insurance regulation and how information and communications technologies can aid its enforcement. This will involve a review of previous studies in relation to the research topic of analyzing, developing and implementing an online third party motor insurance system. The system is computerized and used to store and retrieve information and also conduct transactions online. 2.2 Structure and Management of the Insurance Industry Taking a brief study on Uganda the Insurance Act (Cap 213 Laws of Uganda, 2000), governs all insurance business and is supplemented by the Motor Vehicle Insurance (Third Party Risks) Act (Cap 214 Laws of Uganda, 1989) that, amongst other things, makes third party insurance compulsory for all vehicle owners. The Uganda Insurance Commission (UIC) is responsible for the supervision and regulation of the insurance sector. UIC was established in 1996 after the enhancement of the Insurance Statute, the first comprehensive piece of insurance regulation. Before 1996, the industry was nominally regulated by the Department of Trade, allowing some insurance players to operate without fulfilling the basic operational requirements. All insurers are required to register with the UIC, which is directed by its mission of ensuring a sound and stable insurance industry (Uganda Insurance Commission, 2005; Cap 213 Laws of Uganda, 2000). 2.3 Compulsory Insurance: Motor Third Party Liability Whereas insurance is generally an optional service, many nations have made legislations that make certain forms of insurance compulsory. Examples of compulsory insurance include motor third party and workmens compensation. Both classes of insurance are guided by Acts of Parliament, with motor third party insurance coming under the Motor 6

Vehicle Insurance (Third Party Risks) Act (Cap 214 Laws of Uganda, 1989). Compulsory insurance may be justified in respect of certain forms of social protection and might be considered in other areas where the risks covered are particularly serious and are not covered on a non-compulsory basis. In the case of motor third party insurance, the primary objective is to provide affordable, fair and accessible treatment, rehabilitation and compensation for bodily injury to, or death of, third party road accident victims (Asia Development Bank, 2000). The primary social purpose is to protect Innocent third parties from the physical injuries and economic losses arising from motor vehicle accidents. In order to establish an effectively functioning compulsory motor insurance system (online), a suitable monitoring system is crucial. In Uganda, it is not known in practice whether all registered vehicles are properly insured or whether claims made on the various insurers are consistently and fairly settled. 2.4 Electronic Data Interchange Electronic data interchange (EDI) was one of the earliest forms of commerce.EDI involves the electronic exchange of business transactions documents over the internet and other networks between supply chain trading partners (organizations and their customers with suppliers). Data representing a variety of business transaction documents (such as purchase orders, invoices, requests for quotations and shipping notices) are automatically exchanged between computer using standard documents message formats. (Hammer.M, 2000:23). 2.5 Consumer online purchase As is the case for consumer online purchase intention, researchers (e.g. Chau et al 2000,Goldsmith and Bridges 2000, Koufaris et al 2001, Limayem et al 2000, Raijas and Tuunainen 2001, Vellido et al 2000) extensively employed attitudinal theoretical models in the study of consumer online purchase and thoroughly investigated the forerunner factors like intention, attitude, subjective norm, perceived behavior control, ease of use, and perceived usefulness. Our literature review and analysis revealed that prior research on consumer online repurchase placed more emphasis on the psychological factors. For instance, considerable attention has been given to the study of trust (Fung and Lee 1999, Lee et al 2000) and 7

satisfaction formation (Khalifa and Liu) in the context of consumer based electronic commerce. Very few studies, however, have attempted to investigate the impact of product/service characteristics, medium characteristics, and merchant and intermediary characteristics on consumer online repurchasing. Liang and Lai (2002) was one recent study that explored the impact of web page design such as navigation, security, search attribute, and shopping aids. Similarly, Gefen and Devine (2001), focused on merchant characteristics and investigated the effect of service quality on consumer online purchase persistence using SERVQUAL. 2.6 Security Kenneth C.Laundon and Jane P.Lauden defines security as policies, procedures and technical measures used to prevent unauthorized access, alteration, theft or physical damage to information system. Security can be promoted with the array of techniques and tools to safe guard computer hardware, software, communication networks and data. 2.7 Database Management System A Database Management System (DBMS) is a set of computer programs that controls the creation, maintenance, and the use of the database in computer platform or of an organization and its end users. It allows organization to place control of organization wide database development in the hands of database administrators (DBAs) and other specialists. A DBMS is a system software package that helps the use of integrated collection of data records and files known as databases. It allows different user application programs to easily access the same database. DBMSs may use any of a variety of database models, such as the network model or relational model. In large systems, a DBMS allows users and other software to store and retrieve data in a structured way. (Rasmus Letdorf, 1995).

2.8 Data Integration The Center for Technology in Government (1999) defines data integration as the process of the standardization of data definitions and data structures by using a common conceptual schema across a collection of data sources. A more recent definition by Lenzerini (2002) states that data integration is the problem of combining data residing at different sources, and providing the user with a unified view of these data. Foster and Grossman (2003) define it as the flexible and managed federation, exploration and processing of data from many different sources. The implication from these definitions is that data integration usually results in a central unit of data that is consistent and logically compatible in different systems or databases, and can be accessed across time and users. In general, the integration of multiple information systems aims at combining selected systems so that they form a unified new whole and give users the illusion of interacting with one single information system. Ziegler and Dittrich (2004), state that the reason for integration is twofold: First, given a set of existing systems, an integrated view can be created to facilitate information access and reuse through a single information access point. Second, given a certain information need, data from different complementing information systems can be combined to gain a more comprehensive basis to satisfy the need. 2.9 Web Content Management This describes the process and practice of managing information created in a web environment, in contrast to content management systems handling information created via alternative means. Web content management encompasses the entire process of authoring, storing and managing resources created purely in that domain. Creating and managing unique content developed for the web is increasingly seen as an essential organizational capability.

2.10 Website Design Programming Languages PHP: Hypertext Preprocessor, is a widely used, general-purpose scripting language that was originally designed for web development, to produce dynamic web pages. It can be embedded into HTML and generally runs on a web server, which needs to be configured to process PHP code and create web page content from it. It can be developed on most web servers and on almost every operating system and platform free of charge. PHP is installed on over 20 million websites and 1 million web servers.(Rasmus Letdorf, 1995).

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CHAPTER THREE METHODOLOGY

3.0 System study and investigation This chapter represents the methodologies used to collect data and the system design. Data collection methods Various methodologies were used by the researcher to collect data and the chosen data methods must be determined from an extensive literature search to determine what tools are available that will get at the question asked? The methods used to collect data for an online third party motor insurance system includes the following; Interviews Under this method, information will be gathered by the researcher through interviewing several clients (drivers) who seek for insurance policies Interviews will be conducted one on one; it will be usually conducted with targeted samples of stake holders such as current drivers for example taxi drivers. Questionnaire This is a special purpose document that analyst uses to collect information and opinions from respondents. It shall be used especially when detailing in gathering quantitative information that shall be used to supplement on interviews Prototyping Prototyping is the process of quickly putting together a working model (a prototype) in order to test various aspects of a design, illustrate ideas or features and gather early user feedback. Prototype methodology is used to build an online third party motor insurance system. Prototyping is often treated as an integral part of the system design process, where it is believed to reduce project risks.

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Requirement specification Requirement specification involves the user requirements, system requirements, functional and non functional requirements for effective and efficient database solution. User requirements The user requirement specifications are produced for the end users of the system. The use of these requirements is to define what is required from the system. The systems objective and key benefits are clearly defined in user requirements such that they are built into the system. It includes the following; Providing consumers with a 24 hour service on the system Clients or consumers are able compare between different service providers and policies at once to get the set of features that matches what one is looking for, and to get the lowest price. Capturing information about different cars, consumers among others. Maintaining a database concerned with motor registration, different motor pricing and registered clients. System requirements The system requires various computer specifications for it to function properly and these include the following; An operating system for example windows XP, windows7, me, Windows 2000. A processor with a processing speed of atleast 200 MHz CD ROM or compact disk read only memory A hard disk of 5GB and above. Software Requirements Windows 2000 or Xp operating system, Linux operating systems(ubuntu) Anti virus software MySQL to create the database Macromedia Dreamweaver suit for graphics, animations and interface design.

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Hardware Requirements Memory 256MBs An interruptible powers supply for desktops and laptops Rating 650 stabilizer Two monitors for testing the application(15 inch and 24 inch) Functional requirements These are identified by decisions that clients (drivers) and the insurers will be required to make and identify the information products needed to support those decisions. That is to say third party motor insurance policy updates will be identified. Non functional requirements Non functional requirements define the system properties and constraints. In other words these are requirements that are not directly concerned with specific functions delivered by the system. Database design A business information system is made up of subjects such as customers, employees, and vendors to mention but a few and activities such as registration, orders, payments, purchases among others. Database design is the process of organizing this data into related data record types. The DBMS chosen is the one that can support the organizations data structure while efficiently processing the transaction volume. Database design aims at designing a database model that supports the online third party motor insurance operations and objectives. Organizations may use one kind of DBMS for daily transaction processing and then move the detail to another DBMS better suited for random inquiry and analysis. Over all systems design decisions are performed by data administrators and system analysts. Detailed database design is performed by database administrators. The major aims of this design are: To provide data model that supports any transactions required on the data.

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 To specify a design that achieves the stated performance required for the system To present the data and relationships between the data required by all major application areas. Database design contains two parts and they include the following Logical design Physical design Logical Design Logical design deals with the process of constructing a model of information used in an enterprise based on one model of data, but independent of a particular database management system and other physical aspects. Physical Design This refers to a process used to produce a description of the implementation of the DBMS on secondary storage. It describes the storage structure and the access methods used to effectively access data.

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BudgetProposed time frame

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BUDGET 1 2 3 4 5 6 Item Laptop Stationary Secretarial services Traveling Software Total Unit cost 1.5m Total cost 1,500,000 60,000 30,000 40,000 80,000 1,710,000

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