Erica Araujo - Milestone 1 PDF

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IT 210: Business Systems Analysis Milestone One

IT 210: Business Systems Analysis Milestone One Erica Araujo Bus Systems Analysis/Design IT-210 March 20, 2021 Professor Rosiji Ajayi

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Introduction Problem Statement Our business is a small brick and mortar store that maintains a simple website that is unable to process orders from customers. The owner would like to increase the online presence in order to compete with the larger companies such as Zappos, Kohl’s, Nordstrom Rack and Macy’s. In order to compete with these larger competitors, we will need to revamp their website to incorporate newer technologies which allow for sales to be processed and increase their online advertisement by utilizing social websites to increase their ecommerce. Two Technologies To increase the business’s ecommerce business and online advertisement, we will utilize two technologies. The first technology we will use is wireless, mobile computing and mobile commerce. This technology will allow the company to conduct transactions online, including the purchase and sale of products, manage inventory, paying bills and online banking. Having this technology would also let customers make on the go transactions, leveraging a smartphone app and increasing sales amongst a younger demographic. The second technology will be social computing. By using social computing, we will build customer loyalty, sales, and brand awareness to the company. Some websites and apps that could be utilized to accomplish this would be Twitter, Instagram or Facebook.

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Business Requirements Objectives The objective of this project is to take our business from a small brick and mortar business to a click and mortar business with an online presence, which can compete with other large companies in the apparel and shoe market, such as Macy’s, Zappos, Kohl’s and Nordstrom Rack. To accomplish this goal, it is imperative that we implement up to date technologies. By utilizing the two technologies mentioned above we will now be visible to more demographics, be able to monitor our inventory more accurately, lower our advertising costs, and be able to communicate with customers more easily and more efficiently. In reading about how the competitors use social media to connect with their customers they stated “Customer service isn’t just a department! The entire organization is built around one sole mission: to provide the best customer service available” (Ratcliff, 2014). I feel that leveraging this technology will allow us to have a similar experience with providing the best customer experience possible, therefore building a bigger customer population and more sales. We can also leverage cookies and algorithms to give the customers a more personal, tailored experience. These algorithms will also assist our business with understanding our customers’ needs/wants and predicting their preferences and intent. Many large companies use cookies and algorithms for these purposes. Netflix stated that their recommendation engine is valued at $1 billion a year to the company as it helps to help customers find things to watch and therefore, they retain their customer base. (Charlton, 2020).

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Project Description This project’s purpose is to do a deep dive and explore the current business processes and models while implementing new processes and utilizing modern technologies to generate more sales and a better customer experience. 1. We will redesign the business processes to improve productivity, quality, and timing to deliver more value to our customers by using Business Process Reengineering. 2. Our desired outcome is to be able to increase our sales and customer base to compete with the top retailers in the apparel market. 3. To become competitive with other big retailers, we will need to define business processes, analyze the process, identify and analyze improvement opportunities, design our future state processes and changes and then implement the future state. Updating our current website to enable sales, cookies and algorithms will be a first step to gaining some of the market share we are missing out on.

Technology Requirements Our first step for setting up a website that can accommodate online sales is to update our current webpage to a hosted website where we can choose a company who can provide a server and maintain it for a monthly fee. This will free up time for our small staff. We will want to ensure that we have a security plan with an SSL certificate to secure credit card purchases, secure password requirements and storage, no permanent or plain-text storage for sensitive customer data and a firewall. We will need to ensure that this website also is automatically backed up to avoid losing critical data if there is a mishap. We will also need to set up shipping software that will automate the management of outgoing shipments, creation and printing of shipping labels

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and automatically import tracking information into the website and generate automatic e-mails to the customers. This will also save employee resources. Another important item to set up is payment gateway software so that we can process credit card payments online. To utilize this technology, we will need a merchant account which will come with a monthly fee that will need to be factored into up-front costs. In addition to the website, we would need to also develop a mobile app to allow for on the go purchasing. This would need to be on iOS, Android and Windows platforms. We would also need to implement RFID technology for wireless inventory. In order to bring down advertisement costs and create a wider customer base we would also need to establish online accounts with Instagram, Facebook, Pinterest, Google +, and Twitter. There is a need for us to implement as many time saving and cost effective measures as we can for operating an online business so that we do not take away from the limited staff of the brick and mortar business.

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Competitors and Technology Technology One Zappos is one of our largest competitors and they are social media and customer service trailblazers in the industry. From their start they have utilized social media to gather customer feedback and their commitment to their customers while providing excellent customer service (Raineri, 2019). They were the first to use social media in this way instead of using it to promote their business, like other companies. They also encourage their employees to post about working for Zappos so that it will encourage buyers to talk about their experience of purchasing through them which gives them word-of-mouth advertising. It also allows them to engage and be transparent with their customers. Their top priority is providing top notch customer service and experiences and social media is helping them to achieve this. Zappos also utilizes their social media platforms to advertise their products, while engaging with their customer base. It allows them to lower their advertisement costs by posting pictures of their products and generating interest by customers. It also can generate repeat business from customers.

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Technology Two Ecommerce will be our second technology, which includes mobile commerce, electronic fund transfers, supply chain management, internet marketing, online transaction processing, inventory management and automated data collection systems. We will start by setting up a website. This website will allow for customers to sign up for e-mails and coupons, account creation, and create online purchases but most importantly allow us to utilize algorithms and cookies to enhance their experience while tracking their habits and preferences to help us grow our business. This website will also allow us to promote sales generating more sales. An example of Kohl’s website is below. This shows how the company effectively promoting their sales to generate business:

In addition to the Ecommerce benefits from a website, we will also utilize RFID tags to promote more accurate inventory. Kohl’s started to use this technology in 2012 to improve the accuracy of their inventory, even tagging some of the merchandise at the time of manufacturing (Ramsey, 2014). The RFID tag is an ultra-high-frequency tag that is placed on merchandise

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during inventory counts. They then utilize RFID readers, printers, and tags to maintain an accurate count, allowing them to always know the location and quantity of their merchandise. It allows the company to know when they need to place an order to replenish stock. This helps to meet customer demands without maintaining excessive inventory. Below is a sample of an apparel RFID tag:

Benefits from Technology Kohl’s is benefiting from their RFID technology, which allowed them to improve their inventory accuracy by taking items and being able to scan those items during inventory counts. It also provides improved operational visibility allowing them to maintain smaller inventory counts and knowing when they are low to order more. This also reduces costs for the consumer and loss for the company. Companies that use this technology also benefit from increased sales and profits as they can ensure they have the correct merchandise at the right time and place when customers are ready to make purchases (Kohl's department stores Deploys Checkpoint systems' RFID solutions in SELECT DEPARTMENTS 2014). Using Zappos approach to social computing would create a solid foundation for our business to grow with reduced costs for advertising and improve customer satisfaction.

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Being able to provide a robust website/app which encompasses the ability to make online purchases will greatly improve the customer experience, generate more sales and create a larger customer base targeting a younger demographic. This will also give us an advantage to complete with our competitors, Zappos, Kohl’s, Macy’s, Nordstrom Rack, etc. Summary Our company is a small brick and mortar company that has a desire to compete with the major retailers in the apparel industry. Our company currently only employs two full-time employees and three part-time employees, who will need to be able to manage both the brick and mortar store as well as the click and mortar store they wish to create. By creating the click and mortar store front, they will increase their sales and customer base making them more competitive in the market. In order to do this, we will need to review their current procedures using Business Process Reengineering and create new procedures and systems to help them move forward in the online retail world. A more robust website that has several technologies for security, customer experience, shipping and inventory will need to be created. In addition to this, we will need to implement RFID tagging to help to maintain inventory control and security. As our customers are a top priority, using social computing to stay connected to our customers, generate product interest and a larger customer base is needed. We will create accounts with Instagram, Twitter, Facebook, Pinterest and Google +. This will also allow us to reduce advertising costs as we can promote our products for free and generate customer interest. Social media also allows for word of mouth advertising for both our business and our products. We can also use our social media platforms to provide customer service. With these enhancements, I am confidant that we can take this business to the next level.

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References: Ratcliff, C. (2014, September 30). How Zappos uses social MEDIA: Twitter, Facebook and Instagram. Retrieved March 20, 2021, from https://econsultancy.com/how-zappos-usessocial-media-twitter-facebook-and-instagram/ Charlton, G. (2020, September 17). How online retailers can use algorithms to grow their business. Retrieved March 20, 2021, from https://www.theukdomain.uk/online-retailerscan-use-algorithms-grow-business/ Proctor, J. (2021, January 7). Business process REENGINEERING: 6 key steps + some secret sauce. Retrieved March 20, 2021, from https://www.inteqgroup.com/blog/6-key-businessprocess-reengineering-steps Kohler, N. (2017, March 29). 6 technical aspects to set up before selling online. Retrieved March 20, 2021, from https://woocommerce.com/posts/technical-aspects-sell-online/ Raineri, S. (2019, May 30). How zappos became wildly successful. Retrieved March 20, 2021, from https://www.thebalancesmb.com/zappos-uses-technology-and-operations-to-besuccessful-2533530 Ramsey, R. (2014, January 20). Kohl's uses Checkpoint systems' Rfid technology to Improve Inventory Accuracy. Retrieved March 20, 2021, from https://www.iotevolutionworld.com/m2m/articles/367268-kohls-uses-checkpoint-systemsrfid-technology-improve-inventory.htm Kohl's completes rfid roll-out to TRACK APPAREL. (2014, January 22). Retrieved March 20, 2021, from https://www.supplychainbrain.com/articles/18187-kohls-completes-rfid-rollout-to-track-apparel Kohl's department stores Deploys Checkpoint systems' RFID solutions in SELECT DEPARTMENTS. (2014, January 14). Retrieved March 20, 2021, from https://www.businesswire.com/news/home/20140114005108/en/Kohls-Department-StoresDeploys-Checkpoint-Systems%E2%80%99-RFID-Solutions-in-Select-Departments...