Derby Coffee Case Study

Nowadays, businesses are increasingly automating their processes with the installation, integration, and linkage and the integration of their operations. Laudon & Laudon (2016), say that it is not an option for a business to upgrade its information systems but it\u2019s essential in this technology-driven era for firms to achieve high levels of profitability. Enterprises require information systems for several reasons that include customer\/supplier intimacy, operational excellence, new business models, services, and products, enhanced decision-making, and achieving competitive advantage (Turban, Sharda, & Delen, 2011). Mostly, improved information systems allow business to survive in the industry regardless of the intensity of competition in the sector. This paper analyzes the case study of Derby Coffee and makes recommendations for this business to improve its information systems and business intelligence. Business intelligence includes the technologies and strategies an enterprise uses to analyze data concerning the operations and offers firms with predictive, current, and historical views of business information.

Business Intelligence

Improved technology and specifically information systems, business intelligence, and data management will enable Derby coffee to operate more profitably. Markedly, Derby coffee is medium sized coffee shop situated in the suburb of Don Caster and sells a variety of drinks, cakes, bread, simple meals, and coffee. Ideally, Derby coffee handles a lot of data that includes customer purchases or buying behavior, supplies, revenue, sales, customer preferences and others. Derby coffee requires business intelligence technologies to conduct several functions.

According to Stair and Reynolds (2017), functions of business intelligence include online analytical processing, reporting, data mining, benchmarking, analytics, and performance management. Basic software that Derby Coffee can use for performing these business intelligence functions in spreadsheets. With excel, Derby coffee will be able to undertake a multidimensional analysis of data make it simpler, understandable, and relevant. For example, Derby coffee can use excel to analyze daily, weekly, hourly, or monthly sales thereby forecasting its stock to meet the anticipated demand. Excel will enhance decision making of Derby Coffee as it will be a support tool done through goal seeking or what if analysis. With these approaches, the proprietors of Derby coffee will be to calculate output given a particular input using consistent and logical improvements and trial method. For instance, they will use what-if analysis to create different budgets that assumes a particular value or level of output.

The next component of business intelligence that Derby Coffee requires is a customer tracking system. Such a system will enable Derby Coffee to target the right customers, increase sales revenue, and reach out to potential clients. An example of software that Derby coffee could consider installing is Zoho CRM. This software has customer relationship management features such as referrals, customer support, management of sales pipeline, and customer quotes or proposals. With Zoho CRM, Derby coffee will be in a position to track customer buying behavior and sales-revenue. The deployment of Zoho CRM is either through mobile android, web, SaaS, and Cloud. Derby coffee will also need to use data mining to search business information from vast warehouses of data and use dashboards to gain direct access to management reports.

Data Management

Derby coffee needs to use EDP (electronic data processing) to allow their customers to place orders directly through the internet. This approach will enhance order reliability, ease the process, and improve order placing accuracy. The data that Derby coffee collects concerns sales revenue, customer preferences, supplies, customer buying behavior and stock. This business will have to enhance the quality of data by observing the merits of such data. According to Bulgurcu, Cavusoglu, and Benbasat (2010), features of quality data include consistent, timely, accurate, concise, relevant, accessible, and complete. Arguably, Derby coffee will have to ensure that there is the protection of data privacy, and confidentiality, and also comply with green computing to overcome ethical concerns or issues arising from mishandling of customers private information. As such, Derby coffee will have to use security interfaces such as access logs and passwords to prevent unauthorized entry and collection of data from the information system such as Zoho CRM. Also, Derby Coffee needs to install other computers to increase the number from one but has to adopt green computing to avoid environmental ethical concerns.

Melville (2010) says that green computing is using computer devices responsibly and sustainably and avoiding disposing of them anyhow to reduce environmental impacts. Moreover, Derby coffee will have to introduce a master data management plan that governs the collection and the use of data and that consists of a DBMS (database management system). The system will allow the end users to access, analyze, modify, delete, or add data stored in a single system. The plan will prevent data isolation, inconsistency, and redundancy but will enhance the security, integrity, and the interdependence of data. Moreover, Derby coffee will have to create a data warehouse where all predictive, current, and historical information regarding the sales, customer buying behavior, supplies, and other items can be found. However, while procuring supplies the electronic data interchange system will be critical, but Derby Coffee must address ethical concerns and, therefore, purchase supplies with low calories, adopt fair trade agreements, and minimize chemical and power consumption.

Integrating the System

Noticeably, Derby Coffee will now be using several computers in different points of service such as ordering, cashiering, customer management, and procurement. These devices need to be linked or integrated and most probably through one host computer and servers. Primarily, to achieve this integration, this business will use LAN (Local Area Network) to connect the devices to the internet. This plan will enhance communication, hosting, and exchange of information within the system. Besides, Derby Coffee needs to consider using WAN (Wide Area Network) to connect devices such as computers and telephones across a broader geographic region as this business plans to expand by opening new franchises.

To conclude, business Intelligence includes the technologies and strategies an enterprise uses to analyze data concerning the operations and offers businesses with predictive, current, and historical views of business information. Enterprises require information systems for several reasons that include customer\/supplier intimacy, operational excellence, new business models, services, and products, enhanced decision-making, and achieving competitive advantage. Installation of new information systems and better data management will enable Derby Coffee to increase its competitiveness, revenue, customer management, profitability, and operational excellence. The new system needs to be efficient, cost-effective and integrated to allow the exchange of information within the business and with its subsidiaries.

References

Bulgurcu, B., Cavusoglu, H. and Benbasat, I., 2010. Information security policy compliance: an empirical study of rationality-based beliefs and information security awareness. MIS Quarterly, 34(3), pp. 523-548.

Laudon, K.C., and Laudon, J.P., 2016. Management information system. Pearson Education India.

Melville, N.P., 2010. Information systems innovation for environmental sustainability. MIS Quarterly, 34(1), pp. 1-21.

Stair, R. and Reynolds, G., 2017. Fundamentals of information systems. Cengage Learning.

Turban, E., Sharda, R. and Delen, D., 2011. Decision support and business intelligence systems. Pearson Education India.