Article writing homework help.
Fullerton Cafe Project
Michael Thibodeaux, Keaton Quon, Tim Lee, Jabez Kim, Mohammed Alshryan
- Executive Summary
For the Fullerton Cafe, the impact of modern technology has severely impeded its performance against its competitors. People’s lifestyles have changed, and Fullerton Cafe has to take action to prevent bankruptcy. In this document we will introduce our information system strategy, how to incorporate it into Fullerton Cafes existing business plan, and why fullerton Cafe needs to adopt our plan moving forward.
The project scope depends on our team’s ability to perform and meet business expectations while saving cost and decreasing time to fulfill our mission. Our information systems that are applied in our repertoire would be transaction processing systems, geographic information systems, decision support systems, office automation, expert systems, web search engine, and customer relationship management. The scope of the information system should only take a couple of days for the project to initiate and complete its purpose. The team has all the capabilities and resources financially to surpass expectations for business profits and has the tools to reduce financial expenses. There will obviously still be expenses, but the money needed to start is not significantly high.
We estimate the cost to be roughly $32,185, and plan on taking out a business loan to acquire the amount required for our project to be completed on time. We estimate the total time to get our information system strategy up and running will be approximately 30 days after the project begins. This is largely due to the hardware needing to be installed prior to the installation of our operating system software. The entirety of the project should take no more than two weeks.
Finally, our team believes the information systems we are applying to Fullerton Cafe would be considered a service provider. This is because the hardware and software we will be implementing into Fullerton Cafe will aid the staff and streamline the workload to yield higher productivity and better communication in addition to increasing revenues for Fullerton Cafe.
Information Systems Opportunity
Information systems can be useful in helping improve and grow any kind of business. Coffee shops are plentiful around the Fullerton area and there are many competitors in the coffee business. It is an easy market to enter, but a difficult one to establish a name into. Fullerton Café is no exception, but with information systems, their business may be able to compete in the coffee-based beverage market. Implementing information systems in Fullerton Café’s business strategy will add benefit to their business by being able to transform raw data collected from their environment into useful information that can be used in the decision-making process for their business.
We have proposed seven new information systems to be included into Fullerton Café’s business strategy. The first, a transaction processing system. The transaction process system will help complement transactions and keep financial records of sales and profits. The system will benefit Fullerton Cafe’s business by keeping accurate track of sales daily. This transaction processing system will also be useful for promotions and sweet deals that would show to be effective or ineffective.
Another information we propose is a geographic information system. This system will help complement geographical trends in a certain location. For example, since Fullerton Café is in Orange County, the geographic information system can allow users to see certain trends or allow information to be processed effectively to serve the customers better. This is a smart and efficient system to increase Fullerton Cafe’s overall business. This helps Fullerton Cafe see the never-ending trends that consumers seek for in a business.
The third proposed information system is a decision support system which will allow Fullerton Café to convert difficult business decisions into simple and effective business decisions aimed to increase overall business profits. Decision support systems are effective on business problems that are rapidly changing and combat these annoyances with ease. Decision support systems can be human powered or run on a fully computerized system. A decision support system has four phases in a structured manner. Intelligence, design, choice, and implementation. Intelligence is searching for conditions that call for decision and design is used to seek alternative solutions to fix the current problem. Choice is when a solution is selected, and implementation is used to apply the choice into action to produce positive results.
The fourth proposed information system is office automation. Office automation is an information system that will allow Fullerton Cafe to transmit messages, data, mail, and voice through a processed system. All office functions such as typing, filing, dictation, copying, using the Fax machine, telephoning, Telex, microfilm, and records management fall into office automation. Office automation will help Fullerton Cafe in keeping a neat and organized cabinet that is electronic. No more for physical cabinets that can get messy over time, having all your information in an automated office system will keep the business flowing neatly. Office automation decreases the staff size and number because one person can now effectively use office automation to keep less storage. Office automation will also allow Fullerton Cafe to get tasks done in a quick manner.
The fifth proposed information system is an expert system. Expert system is an information system that will allow Fullerton Cafe to make smarter business decisions to help solve difficult problems that may arise. Expert systems solve complex problems through bodies of knowledge with if then rules and constraints. This kind of information system comes in handy when business owners cannot solve a problem that has many constraints. Expert system is useful because it gives a different perspective on a problem that you may have never thought of.
The sixth proposed information system is a web search engine. A web search engine will allow Fullerton Cafe to search for information on any specific topic. For example, if Fullerton Cafe wanted to seek new cups for cheap instead of buying plastic cups at Vons grocery store, it can now achieve that goal. Using the web search engine, Fullerton Cafe can now achieve lower prices through companies such as Amazon. Amazon would then deliver the product to our location and thus saving time. A web search engine can allow users to find information in a quick and efficient manner without ever having to take out a pen and paper.
The seventh and last proposed information system is the customer relationship management widely known as CRM. A customer relationship management is an information system that will allow Fullerton Cafe to keep up to date with its current customers. This information system can also be applied to attract and retain new customers trying Fullerton Cafe for the first time. A customer relationship management can be applied like how Starbucks or Ralph’s grocery store uses their CRM in daily business. For example, Fullerton Cafe can introduce a rewards program for every 500 points earned, you get a free entree or coffee for example. Some reward that will keep that customer coming back to Fullerton Cafe is the whole purpose of applying customer relationship management daily.
There are many tasks each information system must be able to do and should be able to do.
For the transaction processing system, it shall:
- A1) Secure data integrity
- A2) Allow data to be read easily
- A3) Be able to be accessed easily
- A4) Be consistent
The transaction processing should:
- A5) Be have a high level of reliability
- A6) Have fast performance and quick response
- A7) Be user-friendly
- A8) Process large amounts of data
- A9) Have a backup drive
- A10) Minimize error during data transactions
- A11) Process both data in batches and real time
- A12) Be cost effective
- A13) Be versatile
- A14) Give access to untapped markets
- A15) Be able to upgrade interface without shutting down all systems
The geographic information system shall have:
- B1) logistical accuracies
- B2) recommended preferences to fit customer needs
- B3) a database on every city in the Orange County to provide useful information
- B4) up-to-date population count to better serve its function
- B5) latitude and longitude coordinates or a specific address, postal code, and location reference
- B6) a free or fee-based system to serve its function
- B7) collectable data and create layers to specific geographic areas to increase business success
- B8) analytical tools to reveal data, patterns, relationships, and situations to increase business success
- B9) issues that are driven by geography to induce a better understanding for running a business
- B10) applicable tools that analyzes geographical science to gain actionable intelligence
- B11) participation, sharing, and collaborating communication to provide open and effective business communication
- B12) geo-referential information that is up to date to support everyday business solutions
The geographic information system should:
- B13) Improve business on a daily proportion if applied correctly
- B14) Decrease the mistakes for customer preferences when applied correctly
The decision support system shall have:
- C1) A computerized system that receives and analyzes data
- C2) An unique characteristic that not only collects information like most systems do
- C3) A flexible and easy to work with schedule to allow users who travel regularly
- C4) An availability to all platforms of electronic communication such as a laptop, phone, tablet, and or PC
- C5) A computerized or human based system
- C6) Information in “bytes”
- C7) A increased amount of savings from daily business activities and processes
- C8) A streamline of business through technology that transform into human’s ability
- C9) A programmed and non-programmed decision process
- C10) A partnership system relationship with office automation and transaction processing system
The decision support system should have:
- C11) A high level of interactivity between user
- C12) A high level of efficiency and effectiveness
- C13) A high level of support for data access
- C14) A adaptive trait
- C15) An automated managerial process
The office automation system shall:
- D1) Simplify office operations
- D2) Automate inventory management
- D3) Improve productivity
- D4) Digitally create office related data
- D5) Relay information related to front and back end systems
- D6) Integrate front line and back end systems
- D7) Provide data storage and manipulation
- D8) Control various activities from the offices
- D9) Create program schedules
- D10) Create ticker systems
- D11) Save physical resources
- D12) Save time spent on office functions
- D13) Increase the accuracy of data management
- D14) Offer increased insight to performance metrics
- D15) Allow multiple people to access data simultaneously
The expert system shall:
- E1) Incorporate a database with an inference engine
- E2) Have a knowledge base
- E3) Have an interference engine that evaluates the facts
- E4) Apply knowledge from the database to a particular situation
- E5) Have machine learning capabilities
- E6) Improve upon its performance based on experience
- E7) Offer complex pattern recognition
- E8) Offer diagnostic services
- E9) Have if then rules in the database
- E10) Attach probability factors to each conclusion
- E11) Provide explanations to solutions
- E12) Advise on the best course of action
- E13) Continuously acquire more knowledge on its own to be stored
- E14) Provide a user interface to allow non-expert users to understand
- E15) Decrease the cost of consulting human experts
The web engine search shall:
- F1) Have a high speed internet for faster searches and data sharing.
- F2) Have access to Customer purchase data & inventory data.
- F3) Pricing software to help in cost effective purchases.
- F4) Remain confidential and never share its data with outside sources.
- F5) Be able to filter data spam and other viruses.
- F6) Speed up the process of buying materials & resources.
- F7) Keep track of purchases and recent searches.
The web search engine should:
- F8) Be located at the worksite for ease of access and security of local data.
- F9) Improve Inventory flow by ordering needed resources before they are depleted.
- F10) Allow users to navigate search history data much easier.
- F11) Keep searches safe from security breach as you navigate the internet.
- F12) Streamline data from the searches to operations management.
- F13) Provide the pieces of content that will best answer a query.
- F14) Organize the content found during the crawling process.
- F15) Discover all the content the user wants indexed, not just the homepage.
The customer relationship management shall:
- G1) Have access to the same customer data
- G2) Be efficient in terms of stored data that is easily accessible in one place
- G3) Create sales reports
- G4) Grow with the business
The customer relationship management should:
- G5) Improve customer relationship with the business
- G6) Improve responsiveness to create brand loyalty
- G7) Follow up on customers after the transactions
- G8) Improve ability to cross-sell
- G9) Improve employee satisfaction
- G10) Decrease customer attrition
- G11) Automate everyday tasks
- G12) Discover new customers
- G13) Facilitate higher customer retention ratio
- G14) Optimize marketing
- G15) Grow the business overtime
Requirements Traceability Matrix
|B12||Support Business Solutions||Software||Strategy||Delivered|
|D5||Info Front and Back End System||Network||Strategy||Delivered|
|D6||Integrate Front and Back End System||Network||Strategy||Delivered|
|D15||Ease of Access||Network||Strategy||Delivered|
A1) Transactions processed will be protected and be able to defend the business and customer’s data
A2) Sort data of consumer preferences and show which products do well
A3) The data shall be accessed easily by management and employees
A4) All transactions must work the same way and the structure must never change
A5) Have a low failure rate and a recovery system incase of failure
A6) Transactional input should be within seconds so turnaround to production can occur swiftly
A7) Encourage interaction with customers through simple design of the system that is easy to comprehend
A8) Be able to store and collect data that is processed and not deleted
A9) Old data can be stored and maximize speed of server by reducing the amount of information held
A10) Errors may include the transfer, storage, or creation of false data
A11) Batches are separate groups of data and real time refers to live data
A12) Using TPS should not drastically increase overhead cost
A13) Accept different payment methods. Ex: Cash, credit cards, debit cards, mobile apps such as Apple Pay
A14) More payment availability for consumers
A15) Remain in use while performing necessary updates to prevent loss of productivity
B1) Prevent mistakes in analyzing customer preferences
B2) Fit customer needs
B3) Provide useful information
B4) Better serve its function
B5) Have an accurate location of surrounding customers
B6) Serve its function
B7) Increase business success
B8) Increase business success
B9) Induce a better understanding for running a business
B10) Gain actionable intelligence
B11) Provide open and effective business communication
B12) Support everyday business solutions
B13) Attract more customers
B14) Target specific customers
C1) Turning it into comprehensive and actionable information
C2) Provide reasonable solutions to problems
C3) Have ease in deciding important business decisions
C4) Ensure the accessibility for traveling users
C5) Make the final decision based off the solutions provided
C6) Translate data into applicable information for business success
C7) Ensure the success return on investment
C8) Make better and smarter choices
C9) Select whatever is pleasing
C10) Allow synchronization and unity for information that is displayed
C11) Maintain a homeostatic and successful business environment
C12) Give the users a sense of peace and assurance
C13) Increase business sales and profits
C14) Always be in trend with the current information and styles
C15) Facilitate daily business activities with ease
D1) Simplify office operations
D2) Automate inventory management
D3) Improve productivity
D4) Digitally create office related data
D5) Relay information related to front and back end systems
D6) Integrate front line and back end systems
D7) Provide data storage and manipulation
D8) Control various activities from the offices
D9) Create program schedules
D10) Create ticker systems
D11) Save physical resources
D12) Save time spent on office functions
D13) Increase the accuracy of data management
D14) Offer increased insight to performance metrics
D15) Allow multiple people to access data simultaneously
E1) Incorporate a database with an inference engine
E2) Have a knowledge base
E3) Have an interference engine that evaluates the facts
E4) Apply knowledge from the database to a particular situation
E5) Have machine learning capabilities
E6) Improve upon its performance based on experience
E7) Offer complex pattern recognition
E8) Offer diagnostic services
E9) Have if then rules in the database
E10) Attach probability factors to each conclusion
E11) Provide explanations to solution
E12) Advise on the best course of action
E13) Continuously acquire more knowledge on its own to be stored
E14) Provide a user interface to allow non-expert users to understand
E15) Decrease the cost of consulting human experts
F1) Have a high speed internet for faster searches and data sharing
F2) Have access to Customer purchase data & inventory data
F3) Pricing software to help in cost effective purchases
F4) Remain confidential and never share its data with outside sources
F5) Be able to filter data spam and other viruses
F6) Speed up the process of buying materials & resources
F7) Keep track of purchases and recent searches
F8) Be located at the worksite for ease of access and security of local data
F9) Improve Inventory flow by ordering needed resources before they are depleted
F10) Allow users to navigate search history data much easier
F11) Keep searches safe from security breach as you navigate the internet
F12) Streamline data from the searches to operations management
F13) Provide the pieces of content that will best answer a query
F14) Organize the content found during the crawling process
F15) Organize the content to be in a normality process
G1)Communication with customers that are logged are able to be seen by different employees so that no matter who the customer talks to there is consistency
G2) Data collected can be trickled up or down from management to employees overall improving knowledge on closing sales, new products, or customer service.
G3) Track personal performance, goals, and necessary tasks to reach their goals
G4) The more data that is inputted, the more information the business will have on being consistent in improving customer interaction
G5) The more data the business has on the customer, the better prepared they are to understand the needs and preferences of the customer
G6) Data that is collected can be quickly used to adjust levels of services provided and in turn reflect the importance of different customers
G7) Engage is customer feedback to overall improve interactions or fix mistakes
G8) The more the business knows about its customers, the better they will be at understanding which products go well
G9) Employees that have a greater knowledge of consumer needs will be better able to handle how to serve them
G10) Better consistency between employees, offer new products, effort put into customers, and improve interactions
G11) Most records of customer interaction are automated instead of hand written or self reported.
G12) Data on existing customers can be used to expand and target customers that likely follow the same trends
G13) Offering promotions to customers that have not already purchased a particular product or integrating a loyalty program
G14) Identify which products to push onto customers in certain areas and time
G15) Identify patterns of what is or is not working with certain customers, store the data, and in time process and use the information to grow sales
|ID||Task Name||WBS Dictionary|
|1||Fullerton Cafe Remodel||Components necessary to recreate and improve business model|
|1.2||Budget for Remodel||Financial blueprint of costs to renovate Fullerton Cafe|
|1.2.1||Budget for Hardware||External hard drive, wireless router, printer, telephone|
|1.2.2||Budget for Software||Microsoft Office, Adobe|
|1.2.3||Budget for Infrastructure||Social media platform, cloud storage|
|1.2.4||Budget for Marketing||Local ads, online ads|
|1.2.5||Budget for Operating Expenses||Funds allocated towards labor, start up costs of the remodel, daily operations, advertising, miscellaneous expenses|
|1.3||Purchase Materials||Purchase of needed components|
|1.3.1||Purchase POS Systems||POS hardware, software to accept payments/store payment information|
|1.3.2||Purchase Desktops||Computers to run POS systems|
|1.3.3||Purchase Kitchen||Change/Improve design layout to accommodate newly added hardware. Desktop to check out on one side. Coffee making components on the other.|
|1.3.4||Purchase Raw Materials||Cables, antennas, wiring|
|1.4||Hire Employees and Account Managers||Hire potential candidates that fit our motto|
|1.4.1||Hire Staff||Bartistas must attain qualification through courses post trainee stage|
|1.4.2||Hire Accountant||Seek accounting a firm familiar to small businesses and related fields of work.|
|1.4.3||Hire Financial Advisor||Seek a financial advisor at a firm to handle and forecast fund allocation/spending.|
|1.4.4||Hire Marketer||Must have experience dealing with promoting small, local shops|
|1.5||Implement Information Systems||Integrate IS systems into the everyday business|
|1.5.1||Transaction Processing||complement transactions and keep financial records of sales and profits|
|1.5.2||Geographic Information||complement geographical trends in a certain location|
|1.5.3||Decision Support System||convert difficult business decisions into simple and effective business decisions aimed to increase overall business profits|
|1.5.4||Office Automation||transmit messages, data, mail, and voice through a processed system|
|1.5.5||Expert System||make smarter business decisions to help solve difficult problems that may arise|
|1.5.6||Web Search Engine||search for information on any specific topic|
|1.5.7||Customer Relationship Management||keep up to date with its current customers|
Estimated Time and Cost of Each Proposed Solution
- Estimated Time of Implementation:
- Transaction Processing System shall take two business days to implement. The majority of time would be spent installing the hardware to handle transactions as well as instructing employees on how to use it correctly.
- Geographic Information System shall take four business days to implement. Installation of the GIS program as well as checking for errors and proper instruction of usage will be the majority of the time spent.
- Decision Support System shall take four business days to implement. Instruction of how to use and read the DSS towards management will need to be thorough.
- Office Automation shall take one business day to implement. Installation of software, depending on how many programs needed, should not take more than this amount of time.
- Expert System shall take three business days to implement. Instruction of management to be able to input information accurately and correctly into the expert system will have to be thorough to minimize recommendation errors.
- Web Search Engine shall take one business day to implement. Implementation of the code into their website will take no longer than one day, given time allotted for error and unforeseen events.
- Customer Relationship Management shall take seven business days to implement. Transferring of customer information into the system shall take two to three days maximum. The instruction of how to create, edit, and export customer information will take four to five days as all employees and managers will need to understand the system.
- Estimated Cost of Implementation:
|Transaction Processing System||T2099||Software system installation into hardware||1||$ 750.00|
|POS Cash Registers||T2100||Hardware. Added installation fee ($25 each)||3||$ 2,475.00|
|Geographic Information System||G8408||Software system||1||$ 1,200.00|
|Instructional Classes||G8409||Hourly instruction with supplementary material
($60 per day)
|Decision Support System||D7628||Small business package||1||$ 9,500.00|
|Instructional Classes||D7629||Hourly instruction with supplementary material
($40 per day)
|OfficeAutomation||O9977||Total hardware installation fee||1||$ 560.00|
|Microsoft Office Software||O9978||Software system subscription||1||$ 150.00|
|Adobe Illustrator Software||O9979||Software system subscription||1||$ 20.00|
|Adobe Photoshop Software||O9980||Software system subscription||1||$ 20.00|
|Telephone System||O9981||Hardware. Added installation fee ($25 each)||1||$ 1,300.00|
|Desktop Computer||O9982||Hardware. Added installation fee ($25 each)||2||$ 2,800.00|
|Printer/Copy/Fax Machine||O9983||Hardware. Added installation fee ($25 each)||1||$ 4,500.00|
|Cloud Storage||O9984||Software system subscription||1||$ 15.00|
|Expert System||E1528||Small business package||1||$ 7,500.00|
|Instructional Classes||E1529||Hourly instruction with supplementary material
($55 per day)
|Web Search Engine||W4501||Coding and web design||1||$ 250.00|
|Customer Relationship Management||C1110||Software subscription||1||$ 300.00|
|Instructional Classes||C1111||Hourly instruction with supplementary material
($40 per day)
- NPV: Net Present Value (NPV) is used to determine the current value of all future cash flows generated by a project. This includes the project’s initial capital investment. We will use NPV to visualize which projects will yield the highest returns. NPV is calculated by adding together every year’s net cash flow divided by (1+Required Return Rate) to the power of t, where t is the number of time periods.
Given the NPV, we can see the value of each investment in current terms. As we can clearly see, the expert system is the most valuable investment we would invest in. The expert system would allow Fullerton Cafe to make smarter business decisions using artificial intelligence to solve complex problems. Issues ranging from inefficient allocation of resources to changes to their production process can be put to the expert system to solve. This directly translates to saving thousands or increasing profitability by just as much because of management’s new ability to get different perspectives on problems that may be costly.
The DSS comes at a close second; its function of being able to convert difficult business decisions into smaller, more effective decisions can increase profitability of the company. The Web Search Engine yields the lowest value compared to the rest of the investments, but it is positive and you are able to break-even within the first year.
- ROI: Return on Investment (ROI) is a measurement of profitability on an investment. It is useful in establishing a basis of how profitable an investment will be relative to its cost. ROI is calculated by dividing the net return on investment by the cost of investment and multiplying by 100% to express it as a percentage.
Performing ROI analysis on each investment, we can see that all investments yield positive profitability. In terms of a “paying for itself” perspective, the web search engine and the CRM are the most profitable in terms relative to their cost. The transaction processing system yields the lowest ROI and this is due to the high initial investment costs that they entail. Unfortunately, the ROI does not include the time value of money, so therefore the NPV is a better measurement in profitability.
- Payback Period: This refers to the length of time that an investment must take in order to reach its break-even point. Shorter payback periods are more desirable as it signals a shorter time to wait until an investor is able to start making profits off their investment. Payback period is calculated by dividing the initial investment cost by the periodic cash inflows expected from the investment.
As shown in the tables below, the payback period for all these investments are relatively low. The quickest payback period is 0.63 years or about 7 months and 2 weeks for the web search engine. The longest payback period is the transaction processing system at 2.08 or roughly two years exactly. The rest if the investments have a discounted payback period of a year and 7 months on average. This is a good indicator that these investments will be profitable enough to where by the second year, almost all investments will be yielding Fullerton Cafe a profit.
Options We Don’t Recommend
Upon reviewing many information systems to incorporate into our plan for Fullerton Cafe, there were two that we researched but didn’t decide on adding into the project. One of these systems is a Human Resources Management System. This system is designed to manage an organization’s HR processes automatically. We figured the management would use this system to help their human resource issues when they arise, however, being very aware of our scope, time, and cost constraints, we decided that there were more useful information systems that could be implemented for Fullerton Cafe.
Another system we reviewed as a potential addition to our plan was an e-commerce system. This would allow Fullerton Cafe to sell their goods online, and reach new customers through an online marketplace. After careful consideration, we decided against adding the e-commerce system to our plan. The SWOT analysis states that Fullerton Cafe’s biggest strengths are its good location in the downtown area as well as the consistent high quality of products. Realistically, Fullerton Cafe would not be able to uphold their quality standards if they were to ship products in any way shape or form to their customer. With the goal of refreshing their brand as well as reaffirming their core values, we decided that Fullerton Cafe should focus their efforts into their physical sphere of influence with utmost priority, since their main consumer base is loyal and nearby.
In summary, the information systems listed above are the backbone of the entire business opportation. Without these information systems in place, our business plan would be rendered useless. A transaction Information System will be used to track purchases and expenses. A geographic information system will be used for targeted marketing in Orange County. A decision support system will break down complex business decisions into easy tasks. Office automation helps organize data sent to the central computer, and filters unwanted data. An expert system will help the business optimize its opportunities and expenses. A web search engine will allow for faster production and efficient searches. Implementing a CRM system will track client relations and keep more customers coming through the door. By following the revised business plan and implementing these information systems, we believe that the Fullerton Cafe could start seeing results in as little as two weeks.
- Appendix (Muhammad Ali)
- Updated Microsoft Project file (.mpp) from Deliverable #2