Assignment I: Business Process Re-engineering Video
Purpose: by examining a current business process and identifying an area that can lead to improvement along with redesigning the workflow will allow students to carefully evaluate the various IT functions and understand how to apply IT strategies to management of enterprise IT operations.
Due Date: Week 5 Friday before 5 pm.
Length: 9-11 minute presentation video
Value: 30%
Description:
Investigate and analyse a current business process from any business unit and identify an area where the use of IT can lead to improvement to solve problems and/or to take advantage of business opportunities along with redesigning/modifying the workflow.
Briefly describe the issue/opportunity and conduct situation analysis using tools such as SWOT, Porter’s 5 Forces, PEST, Demand analysis as you see relevant, before discussing your suggestions in the process improvement model. Try to provide evidences to support your arguments, and this can be in term of references, framework, etc.
Choose a BPM tool, then draw both As-Is and To-Be business processes and highlight the role of each process owner and discuss how the changes will improve the business.
Starbucks
Company overview of Starbucks
History: the company opened it’s first outlet in Seattle’s historic Pike Place Market back in 1971. From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. The company was founded in Seattle, Washington in 1971 by Jerry Baldwin, Gordon Bowker and Zev Siegl.
Management team: Starbucks organizational structure is a Matrix structure and is one of the best successful organizational structure examples. A matrix structure is the combination of more than one organizational structures. The authority in matrix structure flows from more than one ways.
Location: started their store from a branch in seattle and they have around 30,000 stores worldwide in 80 countries
Mission statement: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”.
Competitors and market share
Competitors: Caffè Nero, Costa Coffee, Mc Café, Dunkin Donuts, Cafè Ritazza, Café Coffee Day, Coffee Republic, Dilmah Tea, KFC and Tim Hortons.
Market share: Starbucks Owns 39.8% share of US coffee market and earns $2472 Billion worldwide.
Consumers: Currently starbucks serves 500 customers on average, per day, per outlet. Mainly the coffee lovers are their target group of customers.
Current business process
Business problem analysis
Over Crowded
Have to wait a long time for order getting ready
Confusion regarding the choice of drink
High price
Situation analysis: SWOT
Strengths:
Brand value
Branches in 80+ countries
Number coffee marketer and retailer
Weaknesses:
High priced
Do not focus on diversification
Over crowded
Opportunities:
Can have diverse coffee flavors
Can introduce more variety Threats:
Economic crisis
Aging population
Business requirements
Faster service and specious outlets
Need to decrease their price from high to moderate
Need to introduce more varieties
Need to have a very detailed descriptions about coffees
Should introduce smooth online ordering and pick up process
With standardized items, they should focus on local taste as well
IT requirements to overcome issues in the business
Installing kiosk giving full descriptions of the items available
Can order via application to avoid waiting for a long time
Should have customer feedback online to know their preferences
Installing kiosk to order from que
TOGAF model
Framework of Starbucks
New business process
Customers walking into stores
Waiting in que and ordering through kiosk after reading descriptions
Pay through card or move to the cashier to pay cash
Get the food ready by the time customer reaches the service booth
Lesson learnt
The insights about starbucks worldwide
Identifying problems from a reknown business organization
Resolving problems using technology and IT
Role of modern business framework
Problem identification and proposing solution
Different perspective of customers
References
Company Information. (n.d.). Retrieved from https://
www.starbucks.com/about-us/company-information
Sobiya, & Waiz, S. (2018, December 18). Understanding Starbucks Organizational Structure. Retrieved from https://advergize.com/business/starbucks-organizational-structure
/
Starbucks stories and news (n.d.). Retrieved from https://stories.starbucks.com/stories/2019/20-starbucks-stores-to-visit-in-2020
/
Wcs. (2020, February 28). TOP 11 STARBUCKS COMPETITORS in 2020. Retrieved from https://whatcompetitors.com/starbucks
/
Dejan Gajsek. (2019, September 8). [Growth Study] Starbucks Marketing Strategy. Retrieved from https://dgajsek.com/starbucks-marketing-strategy
/
Matyszczyk, C. (2019, May 1). Starbucks Has a Major Problem and It May Have Just Made It Worse. Retrieved from https://
www.inc.com/chris-matyszczyk/starbucks-has-a-major-problem-it-may-have-just-made-it-worse.html
BUSINESS PROCESS
Name
Institution
Date
Sales
Technology can be used to improve sales process
Process includes;
Awareness
Interest
Desire
Action (Wagner Cardoso, 2019)
A business process that could easily incorporate technology is the sales process. The sales process includes;
Awareness- involves making the customer aware of the existence of the product
Interest- actively expressing interest for the product
Desire- aspiring to a specific product
Action- taking a step in buying the product
Information technology can be used in the conversion funnel especially regarding online purchases such as identifying and targeting traffic source through targeting social media users.
Web and mobile platforms- the organization can create a website where users can visit before visiting the actual store. The website should be user friendly and optimized for mobile devices where by users can be access the website from their mobile devices
Enabling mobile payments- it increases the chances of spontaneous purchases
Use of CRM- enables gaining of insight with regard to opportunities regarding sales
2
Use of IT in improving The sales process
Enabled voice search for SEO
Cloud computing solutions
Predictive analytics in management and forecasting of sale pipeline
Artificial intelligence
Automation- CRM (Wagner Cardoso, 2019)
Enabled voice search for SEO- voice search is soon going to become a norm especially due to the current digital consumption trend which is becoming more mobile oriented. Users of smart devices prefer using voice search as opposed to typing their queries in search engines. In order to generate more leads websites have to be optimized to generate more leads. Use of long key words should be incorporated to ensure it captures the questions users may be asking hence making your business as the primary source of information.
Cloud computing solutions- sales data can be stored on cloud servers to improve on interoperability and flexibility regarding members of the sales team. It allows remote working hence enabling sales team to better utilize their time and concentrate on closing deals. Storing data on cloud can also save on cost, improving scalability and ensure security of data.
Predictive analytics in management and forecasting of sale pipeline- use of techniques such as artificial intelligence, machine learning, big data and data mining in analyzing current data and making reliable predictions for the future. Predictive analytics incorporates algorithms that account for all factors impacting the customer’s purchasing decision enabling the sales team to become more effective at closing deals increasing sales conversion.
Artificial intelligence-AI-powered assistants can also help a sales team make data-backed decisions and improve its business predictions. AI consultants could also play a role in building products for upselling and cross-selling by providing the sales team with relevant product recommendations.
Automation- CRM can be used to optimize the process and save on time used in repetitive tasks making the sales team focus on closing deals more effectively.
3
Existing Opportunity- increasing sales
Social media marketing
Optimizing website
Analyzing competition
Determining demand
Enhancing revenue
Reduction of expenses (Agnihotri, Trainor, Itani, & Rodriguez, 2017)
An opportunity is a chance for improvement. It offers organizations a chance for analyzing their processes and identify ways in which revenues can be enhanced and expenses reduced. It enables optimization of processes bringing about efficiency.
The opportunity identified is increasing sales. According to a survey conducted in 2018 37% of online shoppers revealed that they use social media for purchase inspiration. This is the highest representation compared to any other from of online media. 34% are influenced upon visiting the website of the organization where by depending on how well its optimized this will influence the purchase decision. This two areas is where our opportunity lies for improving sales. Successfully identifying and targeting appropriate social media users gives the business a chance in terms of increasing its market share with regard to social media users.
4
SWOT analysis
Strengths
Loyal customers
Location of the store
Good brand reputation
weaknesses
Lack of enough marketing budget
Static website
No warehouse
Examples of the strengths identified with regard to our sales process involve;
Loyal customers- our business has many loyal customers because of the quality of services and goods offered.
Location of the store- The store has a good location that gives it an advantage for walk-in clients
Good brand reputation- our loyal customers have spread through word of mouth and even making referrals to the products and services offered hence improving the brand and image of the company
Examples of Identified weaknesses include;
Lack of enough marketing budget that will generate more leads
The website is static, purely informational, and not optimized for search engines.
5
SWOT analysis
Opportunities
Optimizing website to increase traffic
Creating strategic alliances with other businesses
Building a warehouse
Incorporating mobile technology
Threats
Competitors
Cost of marketing
Examples of opportunities identified that can improve the sales process include;
Optimizing website to increase traffic- the website can be optimized to incorporate Enabled voice search for SEO that will capture voice searches generating more leads to the website. Additionally, Use of long key words should be incorporated to ensure it captures the questions users may be asking hence making your business as the primary source of information.
Creating strategic alliances with other businesses to enable handling of logistics with regard to online orders in particular with regard to shipping logistics where by a third party business can be involved to handle delivery of shipments to clients.
Warehouse- renting or building a warehouse will offer storage for the business which will enable the business to handle incoming orders from clients where by the most demanded products should be stored with enough capacity in the warehouse
Incorporating mobile technology- most users have mobile devices and the organization can tap into such users through optimizing the website for mobile use to enable usres access the the website using their mobile devices. Additionaly the organization can develop a mobile application that users can download and install on their devices which will also aid in collection of user data.
Examples of Threats identified include;
Competitors- potential new firms entering the market are identified as threats to our current customers and also other possible customers. seizing the identified opportunities and maximizing on our strengths should enable the organization to mitigate this threat
Cost of marketing- the huge costs associated with marketing will increase the expenses of the company hence reducing the net profit. Employing target marketing can reduce unnecessary expenses where by focus is redirected to potential clients or customers
6
As is business process
Scenario 1 sufficient stock
Customer- making order
Sales representative- receiving purchase order; checking stock level; packaging; shipping
Scenario 2 insufficient stock
Customer- making order
Sales representative- receiving purchase order; checking stock; redirecting order for customer to amend purchase order
7
To be business process
Due to growth the to be process will incorporate an additional warehouse and an additional new task named a request pack goods
Scenario 1 sufficient stock
Process owner;
Customer- making order
Sales representative- receiving purchase order; checking stock level; packaging; shipping
Scenario 2 insufficient stock
Customer- making order
Sales representative- receiving purchase order; checking stock; redirecting order for customer to amend purchase order
8
References
Agnihotri, R., Trainor, K. J., Itani, O. S., & Rodriguez, M. (2017). Examining the role of sales-based CRM technology and social media use on post-sale service behaviors in India. Journal of Business Research, 81, 144–154. https://doi.org/10.1016/j.jbusres.2017.08.021
Kuznetsov, V., Garina, E., Bardakov, A., Kornilov, D., & Lapaev, D. (2019). Re-engineering the business process of sales in view of life cycle stage and the company organisational structure. International Journal of Trade and Global Markets, 12(3/4), 412. https://doi.org/10.1504/ijtgm.2019.101554
Paesbrugghe, B., Rangarajan, D., Sharma, A., Syam, N., & Jha, S. (2017). Purchasing-driven sales: Matching sales strategies to the evolution of the purchasing function. Industrial Marketing Management, 62, 171–184. https://doi.org/10.1016/j.indmarman.2016.09.002
Wagner Cardoso. (2019). Study of the feasibility of adaptation of the business process sales and operations planning (S&OP) in a university hospital. Journal of Innovation and Healthcare Management, 2, 1–23. https://doi.org/10.20396/jihm.v2i0.11806
Smart Kiosk System For Ordering Food
S277257 Riaz Rahman Khan
Hi everyone! I hope you guys are doing well in this tough situation.
I am Riaz and today we will talk about Coffee Club and how this company can implement IT solution which will be beneficial for their business. We need to implement smart kiosk system for ordering food which will be beneficial for business and customers as well.
To do so we will start from the beginning, how it all started like an overview of the company and how it grew from the scratch.
.
1
Company history of Coffee Club
If it wasn’t for an appetite for coffee it may never have happened! In 1989, Brisbane City, founders Emmanuel Kokoris and Emmanuel Drivas cruised Brisbane late one night in search of a decent coffee and came up empty handed. This disappointing experience inspired them to seize the opportunity, so they formulated a plan to take the world by storm – a coffee storm – now affectionately known as The Coffee Club.
Their lightning bolt idea was to create more than just somewhere for people to meet for coffee; it would be more casual, comfortable yet sophisticated, stylish yet affordable. This untapped need in the Australian hospitality market was all about to change.
Since opening its doors in Brisbane in 1989, The Coffee Club has become Australia’s largest home-grown café group with approximately 400 stores throughout 9 countries, with upwards of 40 million dedicated customers.
Purpose of the business: Our mission and philosophy is simple, at The Coffee Club we want to provide: Good Food, Great Service and Excellent Coffee, in welcoming, relaxing surrounds, a place to enrich contemporary lifestyles, and most of all, to be the natural response to “Where will I meet you?”
If it wasn’t for an appetite for coffee it may never have happened! In 1989, Brisbane City, founders Emmanuel Kokoris and Emmanuel Drivas cruised Brisbane late one night in search of a decent coffee and came up empty handed. This disappointing experience inspired them to seize the opportunity, so they formulated a plan to take the world by storm – a coffee storm – now affectionately known as The Coffee Club.
Their lightning bolt idea was to create more than just somewhere for people to meet for coffee; it would be more casual, comfortable yet sophisticated, stylish yet affordable. This untapped need in the Australian hospitality market was all about to change.
Since opening its doors in Brisbane in 1989, The Coffee Club has become Australia’s largest home-grown café group with approximately 400 stores throughout 9 countries, with upwards of 40 million dedicated customers.
Purpose of the business: Our mission and philosophy is simple, at The Coffee Club we want to provide: Good Food, Great Service and Excellent Coffee, in welcoming, relaxing surrounds, a place to enrich contemporary lifestyles, and most of all, to be the natural response to “Where will I meet you?”
2
Competitors and market share
Competitors: Shingle Inn Retail Cafes, Jamaica Blue, Starbucks, Costa, Dunkin Donuts.
Market Share: The Coffee Club chain has the largest market share, but that is only an estimated 4%, followed closely by Gloria Jeans (3%) and Michel’s Patisserie (3%).
Current Business process
Business problem analysis
2. Long que for ordering
1. Very Busy
3. Takes a lot of time to prepare food
4. Price of the meals are high
Strength
Brand awareness and recognition
UTZ Certified
3 types of Store Concept
Controlling the franchisees
Weakness
Opportunities
New product
Good infrastructure
The cost of Coffee Beans
Threat
Competitors
The price of coffee beans
Global Recession
Name similarity
Situation analysis: SWOT analysis
Porters five forces
Threat of new entrant
Bargaining power of new supplier
Bargaining power of Buyers
Threat of substitute
Rivalry against Existing Competitors
Business requirements
Self ordering kiosk can help customers to skip the que
if an app is introduced than it can be more beneficial as it will be more convenient for customers to use, to see all the ingredients of the food
The problem with the current mobile app for Coffee Club is you can only scan your membership card and top up, but if ordering from the app is introduced then it would be more convenient for customers and good for business as well.
Self ordering kiosk can help customers to order faster and does not have to wait in a que.
8
IT requirements to overcome issues in the business
1. Self ordering kiosk
2. Mobile app for ordering
Future business process
Lesson Learned
Learned about Coffee Club Cafe
Learned how to implement IT requirements solution to a business process
Learned how to use BPMN tool to map Current and future business process
Learned how to identify problems of a business and figure out the solutions
References
wikipedia.com. Logo. [online] Available at:
Coffeeclub.com. History. [online] Available at: <
https://www.coffeeclub.com.au/about-us/> [Assessed 2020]
Owler.com. Competitors. [Online] Available at: < https://www.owler.com/company/thecoffeeclub > [Asssessed 2020]
Prezi.com. Swot analysis. [Online] Available at: < https://prezi.com/preclzletvnp/the-coffee-club/>
Creweitouch.com. Kiosk photo. [Online] Available at: < https://www.creweitouch.com/news/industry/food-ordering-kiosk-in-kfc.html>
Aceformis.blogspot.com. Porters 5 forces. [Online] Available at: < http://aceformis.blogspot.com/2013/11/starbucks.html>
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