effect and impact that business processes

effect and impact that business processes

He primary aim is to understand the effect and impact that business processes, competing and/or complimentary technologies and information systems have on an organisation
Description: This is a research assignment which consolidates and applies the knowledge
gained in the lectures and tutorials. The primary aim is to understand the effect and impact that business
processes, competing and/or complimentary technologies and information systems have on an
organisation. This means that just describing a technology or how the case study organisation uses a
technology is an inadequate response to this task, and will not be rewarded in the marking scheme. There
is an expectation that your submission will be analytical, and must draw on theory to frame its evaluation
of an organisation’s deployment of business information systems in a competitive environment.
Context: You have recently inherited your grandfather’s business, which is conveniently located in your
city’s CBD. The business offers many different kinds of specialised products and services for the whole
family. It was first opened in 1952 and was a local hot spot for many years but unfortunately, business
has been steadily declining over the past few years. The business runs without any computers and all
ordering takes place manually. Your grandfather had a terrific memory and knew all of his customers and
suppliers by name, but unfortunately, none of this information is located anywhere in the store. The
operational information required to run the business, such as sales trends, vendor information,
promotional information and so on, is all located in your grandfather’s memory. Inventory is tracked in a
note pad, along with employee payroll and marketing coupons. The business does not have a website,
uses very little marketing except word of mouth, and essentially still operates the same as it did in 1952.
For the purpose of this assignment you will own and operate your grandfather’s business, and by taking
advantage of business practices discussed in this unit (Introduction to Business Information Systems),
you will attempt to increase profits, decrease expenses, and bring the business into the 21st century.
HIT1401/5401 – S2 2013
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ENTREPRENEURIAL CHALLENGE: YOUR OWN BUSINESS + INFORMATION SYSTEMS
Activity 1
Identify the type of specialised products and services for the business and create a name for it. For
example, the business could be a coffee shop called The Broadway Café, an extreme sports store called
Cutting Edge Sports, or even a movie store called The Silver Screen specializing in classic and
memorabilia for all ages. Try to pick a business you are genuinely interested in running and that aligns
with your overall career goals.
Activity 2
Write an analysis of buyer power and supplier power for your business using Porter’s Five Forces Model.
Be sure to discuss how you could combat the competition with strategies such as switching costs and
loyalty programs. Describe the role information systems can play in achieving these strategies.
Activity 3
Write an analysis of rivalry, entry barriers, and the threat of substitute products for your business using
Porter’s Five Forces Model.
Activity 4
Describe which of Porter’s three generic strategies you would use for your business. Be sure to describe
the details of how you will implement this strategy and how it will help you create a competitive
advantage in your industry. Describe the role information systems can play in achieving any competitive
advantage.
Activity 5
Your business needs to take advantage of e-business and Business 2.0 strategies if it wants to remain
competitive. Detail how your business could use Web 2.0 to increase sales and decrease costs. Be sure to
focus on the different areas of business such as marketing, finance, accounting, sales, and customer
service. You would like to build a collaboration tool for all of your customers and events. Answer the
questions below as they pertain to your business.
? What type of collaboration tool would you build?
? How could you use the tool to facilitate planning, product development & testing, feedback, and
so on.
? What additional benefits could a customer collaboration tool provide that could help you run your
business?
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Activity 6
The Yankee Group reports that 66 per cent of companies determine website success solely by measuring
the amount of traffic. Unfortunately, large amounts of website traffic do not necessarily indicate large
sales. Many websites with lots of traffic have minimal sales. The best way to measure a website’s success
is to measure such things as the revenue generated by web traffic, the number of new customers acquired
by web traffic, any reductions in customer service calls resulting from web traffic. As you deploy your
Business 2.0 strategy, you want to build a website that creates stickiness and a sense of community for
your customers.
? Explain why measuring web traffic is not a good indicator of web sales or website success.
? How would you implement Business 2.0 characteristics to create a sense of community for
your customers?
? How could a wiki help grow your business?
? How could you use blogs to create a marketing buzz?
? What else can you do to ensure your website finds financial success?
Activity 7
In an effort to better connect with younger consumers, selected McDonald’s restaurants are enticing
customers through their mobile phones and offering mobile coupons for a free products such as a
McFlurry. Under the promotion, customers text the message ‘McFlurry’ to a five-digit short code
promotional phone line. An electronic coupon for the free dessert is then downloaded to their mobile
phones; when consumers bring those phones to participating restaurants, they can redeem the coupon
electronically. Mobile coupons (m-coupons) that are stored and carried in a mobile phone have higher
redemption rates than paper or e-coupons because they are not forgotten, or left at home. M-coupons can
drastically reduce delivery and redemption cost, trigger impulse buys, and send offers to customers in real
time that are location based. Your customers are mobile, and you want your business to take advantage of
mobile technology, so you have decided to create an innovative system for m-coupons, allowing
customers to capitalise on instant redemption coupons. As customers walk past your business (or within a
25-foot radius) a coupon will be pushed to their mobile device. As you prepare to deploy this new mobile
marketing campaign, you need to create a detailed analysis of m-coupons, including all of the potential
risks and benefits.
In your analysis, be sure to discuss the types of coupons you would offer to your mobile customers along
with all of the potential risks and benefits.
HIT1401/5401 – S2 2013
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Activity 8
You realise that you need a digital dashboard to help you operate your business. Create a list of all of the
components you would want to track in your digital dashboard that would help you run your business. Be
sure to justify how each component would help you gain insight into the operations of your business and
flag potential issues that could ruin your business. (Be sure to identify your business and the name of
your company as you defined it in Activity 1).
Activity 9
Your friends have asked you to review the customer ordering process for their restaurant, The Broadway
Café. To make the café as efficient and effective as possible, you want to redesign processes to remove
bottlenecks, reduce redundancies and streamline workflow. Review The Broadway Café’s customer
ordering process highlighted in the accompanying image and reengineer it for improvements in efficiency
and effectiveness.
After revamping the ordering process for your friends, you decide to create a To-Be process model of the
most important business processes required for your startup to find success. Create the To-Be process
model for your most critical business process to ensure you know how to operate your startup in the most
efficient and effective manner.
Activity 10
Your business is undertaking many new and exciting initiatives to boost growth, including employee
blogs, customer wikis, and implementation of a new time and attendance system. Time and attendance
software is critical to the business because it can ensure you have the right employees, at the right place,
at the right time, which can increase sales. You never want to find yourself understaffed during busy
HIT1401/5401 – S2 2013
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times and overstaffed during slow times. Also, accurately accounting for employees’ time is crucial to
effectively analyse labour expenses, which are the largest operating expense your business incurs.
Conveniently, time and attendance solution providers, time clock manufacturers and software
development companies are developing high-quality affordable products. You have decided to replace the
manual employee tracking system your grandfather implemented in the 1950s. You have a highly
technical employee, Nick Zele, who has offered to build the system for you and ensures you it is a simple
build. You could also purchase one of the many off-the-shelf applications and have an outsourcing firm
customise the application for your business.
? What are the pros and cons of using an employee to build you a custom system?
? What are the pros and cons of purchasing an off-the-shelf time and attendance application and
outsourcing custom development?
? How will your older employees feel about the new system and what can you do to ensure a
smooth transition?

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