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Information Systems at Starbucks
Transcript of Information Systems at Starbucks
The Aim of This Presentation
This presentation aims to deliver how the systems used by Starbucks are integrated to help deliver the perfect cup of coffee every time a customer visits any Starbucks store worldwide.The subject of our presentation is the Starbucks outlet in the Spring Kuching.
The IS Systems Used At Starbucks
Starbucks mainly uses four IS systems:
• Transaction Processing System.
• Supply Chain Management System.
• Decision Support System.
• Customer Relationship Management system
How Information Is Transmitted between Functional Areas in Starbucks
From the swim lane diagram it can be seen how the information regarding whether to continue a product or to introduce a new product is transmitted from one functional area to another.
How Starbucks Protects the Integrity of Customer Information and Data.
Improve in supply chain management
direct to main HQ in US instead of making an order to the main HQ in KL
Improve in decision support system
use such as WebEx webOffices - communication driven
use webFocus - data driven
use captaris workflow - document driven
Improve CRM system:
Create globally acceptable starbucks card in order to build a customer relationship with the company on the whole.
In conclusion Starbucks has come a long way from its initial systems that were ineffective and resulted in increased costs. However for Starbucks there is still a long way to go if it wants to exploit the IS technology that is already in the market. Starbucks main problem is its size, but this can be countered through employing a uniform IS System Organization wide.
Began operation in Seattle’s Pike Place Market in year 1982
Starbucks entered Malaysia in 1998 by a joint venture with Berjaya Corporation Berhad. The first Starbucks store in Malaysia opened on 17th December 1998 at KL Plaza Kuala Lumpur
Currently Starbucks has 170 stores in Malaysia, among which there are seven stores in Sarawak; five in the Kuching territory and two in Miri.
Supply Chain Management System (SCM)
Supply chain management system is the reformation of business’ activities related to the supply side. Supply chain covers all activities from product development, to production to the information systems required to direct these actions.(Investopedia)
Transaction Processing System (TPS)
TPS is an informational scheme for the storage, retrieval, alteration and collection of transactions made by an organization. (Webfinance 2013).
Customer Relationship Management (CRM)
CRM (customer relationship management) is a term for methodologies, software, and usually Internet capabilities that help a company manage customer relationships in an organized way. (Techtarget)
Starbucks uses IBM TPS system:
To punch in every order.
Store Information such as of Sales, COGS, Wastage
IBM System is only used at the point of sale the outlets.
prior to 2010 Starbucks did not have an efficient SCM System which rose to the costs up to $75 Million b/w 2007 and 2008.
Currently two SCM systems are being used at different hierarchical levels:
At country level: ZEAL
At parent company: High Jump
Decision Support System (DSS)
Decision support system (DSS) is a computer program application that analyzes business data and presents it so that users can more easily take their business decisions.(Rouse 2010)
Starbucks uses a Singular DSS system at the Parent Company in USA:" Oracle"
Oracle Generates monthly reports on which important decisions are based.
Only the Parent company has the authority to make decisions about products
Two ways Starbucks uses CRM:
• Social Media
• Starbucks Membership Card.
Effectiveness of IS Systems at Starbucks: Our Views
Points of Concern:
Use of email to forward data between hierarchical levels, Prone to Human error.
Use of two SCM systems Zeal and HighJump: No Integration
CRM systems restricted to specific country
Evaluation of Starbucks IS system by comparison with BING cofee
Wajih Ashfaq Sheikh
Lim Chu Qiao (Nicole)