Assignment 1 - session 5

Think of the small database we used in our lab exercise - Products and Suppliers. Briefly describe how this database observes any two of the four design principles outlined above.

1. Divides your information into subject-based tables to reduce redundant data.

In our lab exercise, there are two database tables which is products and suppliers. It is not effective and easy to view and compare the information from two separate tables. However, we can join the information from two tables into one. For example, we need to compare the price of certain items that each supplier offers. We need to use the field of ‘product name’, ‘selling price’ etc in products table and the ‘company name’ etc in supplier table. By joining the information, it is easy for us to compare the information, make analysis and certain decision.

2. Accommodates your data processing and reporting needs.

We can use database management system for making a meaningful report by grouping and sorting data. For example, we can group the information by product name, to see which suppliers can offer a cheaper price, and then we can sort the data from cheapest price to the most expensive. Afterwards, the information we needed can be seen clearly. Database management system is useful for creating these reports to present a big-picture overview, highlighting main facts and trends.

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Session 4 - Internet marketing

Find one example of Internet marketing that you think is particularly effective and one example that is ineffective.

Ineffective (Gome)

http://www.gome.com.hk/tc/

I think Gome is an ineffective example on internet marketing and there are a number of areas that can be improved. First of all, the web page can include product details with pictures. Most customers would like to check if the product they are looking for is being sold in the store. The prices and pictures could attract them to visit the local store.

Secondly, the web page should contain the store locations and their addresses. A “store locator” would be useful for customers to find the closest store in their area. The size or the services provided by each store can also be included.

In addition, they can put more pictures or videos on the web page to make it more colourful and interesting. This can attract more customers to visit their homepage.

A blog can also be added for customers to leave their comments and suggestions. It does not only provide a way for people to express their opinions, but also for them to read the reviews from others. It enhances the interaction between customers and the company, and reinforces the good relationship with the customers. It also helps the company to improve their services.

Effective (Ikea)

http://www.ikea.com.hk/chi/main.html (Ikea HK homepage)

Ikea is doing excellently in terms of internet marketing. The front page of their HK website contains a crazy sale section at the top and some other images relate to their products and services. This can attract customers as people always prefer to buy cheap products.

Besides, there are different tips and ideas for home design, such as how to make the room look bigger etc. These ideas are useful for those who are moving into a new flat and people would purchase the products if they like the ideas.

I appreciate that the homepage states clearly the prices for the products, assembly service charge and delivery charges. Customers can have a summary on all the prices before visiting the stores.

The location of all the stores can be found on their web page. They provide the full address of the stores as well as a map. Customers would be able to find the nearest store easily.

Regarding the contact methods, there are contact numbers and email address on the website. When you click on the email address, it will prompt up with outlook express window. This is convenient for customers to send their enquiries or comments.

http://theikeablog.com/ (Ikea Blog)

Other than the homepage, there is an Ikea blog. People can view the Ikea catalog and brochure online which include all new products.

The most impressive idea is customers can post articles and leave comments on the blog relating to any products and services. These valuable suggestions can help Ikea to make improvement and other people can get extra information via reading those comments.

There is a function for which people can subscribe the pages by email or RSS Feed (For example, My Yahoo). After doing this, customers do not have to visit the blog regularly but can still receive the new contents added in the blog.

http://add.my.yahoo.com/rss?url=http://feeds2.feedburner.com/TheIkeaBlog

Session 3 -CRM

List the customer data elements generated when a customer interacts with an airline by (a) making a reservation, (b) using frequent flyer miles, and (c) completing a flight. How does information from CRM improve these interactions?
What are the benefits of integrating the sales, marketing and customer support function using a single software package and a centralized database?

1. The data elements listed below will be generated when a customer interacts with an airline at different stages:

1a) Making a reservation

• Passenger details (include name, id card number, contact number, gender, date of birth, email, any dietary/meal requirement)
• Date of departure
• Date of return
• Destination
• Cabin class (economy, business/upper class)
• Ticket type (single or round trip)
• No. of passengers traveling (No. of adults, children and infants)
• Flight no. selected
• Purpose of travel
• Total fare
• Payment method
• Reservation no. (for checking, cancellation, online check-in etc)

1b) Using frequent flyer miles

• Frequent flyer program
• Frequent flyer number
• Miles gained from the booking

1c) Completing a flight

• Number and weight of luggages, and number of hand carries
• Feedback and suggestions by the customer

Using CRM, customers can simply type in their name and password to retrieve their own record. This helps them to reduce the time in typing their information every time. By checking the record of the customers, the airline company can understand the customers’ needs, and therefore, can achieve customer satisfaction. They can also offer additional services to customers, such as hotel packages and car rentals, by knowing their information. This is one of the marketing applications in CRM.

2.
By keeping a centralized database, all departments can share the same version of data. Firstly, it reduces the time on multi-typing in duplicated files. Secondly, the information in the database can be used by all departments. For examples, marketing department can check the sales to determine which marketing strategy they should implement. They can also use those data to issue sales, marketing and service planning.

Sales, marketing and customer support can make good use of the customer data for checking, analysis, and to issue sales, marketing and service planning.

In addition, by gathering all the information from sales, marketing and customer support, they can be able to make an integrated report for the company. They can measure the customer lifetime value and identify the most profitable and loyal customers.

It is easier to transfer data from one department to another by using a single software package. It improves communication between departments since they are just like using the ''same language''.

Session 2 -ERP system

1. Which departments within the company are integrated within the Order-to-Delivery process ?
2. Which steps are included in the Order-to-Delivery process ?
3. What factors would you consider when deciding whether ERP is suitable or not for a small business ?

1.
Sales and marketing department, the warehouse and shipping/logistics department are integrated within the order-to-delivery process

2.
When the company receives an order, the sales manager will check with the customer regarding the required shipment date. If same day delivery is requested by the customer, the sales manager will use SAP business 1 to access the real time inventory data to confirm the items are in stock. Then the sales manager will create a sales order. Once the sales order is ready, it will be alerted the warehouse that the order needs same day delivery, along with other special requirements. When the warehouse manager receives the sales order, he can check the completed order details, such as items ordered and customer ship to address, by using the SAP system. Next, he will apply the pick and pack feature in SAP business 1 to assign a unique serial number to this job which is useful for future checking. After that, he will use SAP business 1 to print out the delivery note and packing slip for the shipment. When the shipment is picked up by the carrier, the software will automatically update the order status. Finally, the sales manager can check through the system to see if the order has been dispatched and send the tracking details to the customer.

3.
Few factors need to be considered for small businesses using ERP:

• Some ERP systems can be very expensive which some small businesses cannot afford. They need to consider the revenue increased by implementing the ERP system against the cost of the installation.

The company should implement a suitable ERP software module since there are many different modules in the market, but not all can fit the company needs. Even if they choose the most suitable module, the ERP system usually requires the business to re-engineer some of its existing business processes. However, these re-engineering could improve the company performance.

ERP can make a good contribution to a company that contains various departments, such as account, sales and marketing and warehouse department. ERP system can integrate among different functional areas to ensure proper communication, productivity and efficiency. ERP system can also centralize the data in a single database, so that all departments are sharing the same data. This can minimize the mistakes by multi-typing on duplicated files.

• ERP is suitable for small businesses that have offices or factories in separate physical locations. This software helps them coordinate the work and monitor the progress even though the work teams are geographically separated.

Session 1

Supermarket is one of the most successful businesses in the world. It provides wide ranges of goods, from food to home appliances, where people can get a widest selection of international grocery items. ParknShop is a very good example in the category as it is the leading supermarket chain in Hong Kong with over 230 stores in Hong Kong, Macau and Mainland China.
The followings are some examples of information systems used by Parknshop to support their business.

Internet shopping

http://www1.parknshop.com/WebShop/Home.do (The web site for internet shopping)

Internet shopping offers customers to purchase products or services over the internet 24 hours a day. It is very convenient for customers to shop online since almost everyone can access to the internet both at work and at home. This service is also helpful for people with disability or who cannot visit the retail stores during business hours. Customers can browse an online catalog for the items they need and purchase the items simply by clicking on the catalog. The orders will be delivered to their home by the agreed time period.

Customers can be paid by the following methods
Cash On Delivery
American Express Card
Visa Card
Master Card

Extra information:
There is another web page called Fishipedia, which is basically a database for the fishes they sell:
www.parknshop.com/fishipedia
This is a tool to help shoppers to ensure they are purchasing the correct fish that they are looking for. It also provides information of the origin of the fishes and the best way of cooking. This is quite interesting!
The database contains information such as product names, scientific names, any other common names found in the market and photos. Some of them even include nutritional information and cooking suggestions.

Barcode system

Regardless of the types of the business or industry, barcode system can provide an application that fits the business needs, including Point of Sales, inventory control, warehouse management and security.

For point of sales, barcodes are on every item and barcode scanners (an electronic device) are installed at cashier counters to obtain the information from the barcodes.
It provides a quicker and easier way for cashiers to get the bills to the customers. Capturing data by barcode scanner is not only faster than typing on the machine, the possibility of typing mistakes can also be reduced. (Information shows that Keyboard data entry creates an average one error in 300 keystrokes, Bar code data entry has an error rate of about 1 in 3 million.) Hence, supermarkets can provide a better service by reducing the queuing time of customers and minimizing complains for wrong pricing.

Barcode can also bring convenience to warehouse management. Barcode scanner can record inventory transactions remotely, and work with inventory data collected away from their desk using a data collection device.

Moreover, PARKnSHOP has pioneered a new barcode tracing system that will further enhance the safety, quality and freshness of all Mainland China vegetables on sale.

These traceability barcode labels are pasted on each basket of vegetables.

They contain information such as the supplier’s names, type of products, manufacturing dates, and other relevant production data. The data are used to check quality of the products at every stage of the supply chain and if problems are detected, the system can easily trace back the origin and recall back the product.
This gives customers unparalleled confidence in the traceability, safety, quality and freshness of the food they buy.
Web page for reference
http://www1.parknshop.com/WebShop/images/fc/enu/totally-traceable.html

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