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The core business of any business is to maximize profits for the stock/share holders while at the same time minimizing the costs. In a nutshell, any for profit business will be looking at increasing efficiency and production at the lowest cost possible. However, this should not mean compromising on the quality of the products that the business delivers to the consumers. The quality of the products must also be increased because the firm also has to be responsible and reliable to the customers as well as other stakeholders. This leads to the second core functions of the organization, which is to be able to meet the expectations of all its stake holders, such as the customers, the suppliers, the competitors, the community, the government, etc.
Business aims of Club IT
The main business aim of Club IT is to provide the customers with the most convenience way with a way to books for services without having to go through the inconvenience of taking the trip to the Club IT. Club IT aims to achieve this without increasing the cost of its services. The firm intends to make sure that the customers can access their menus anywhere online and be able to book, reserve and even make short order. To achieve this, Club IT has to come up with a system that will help the customers to make online orders, reservations and payments.
Club IT recognises that its clientele is made up of the younger generations who are conversant with the new IT technologies such as internet, mobile computing devices such as tablet computers and smart phones etc. Club IT intends to tap this market by introducing IT in the way it serves the customers by providing them with IT based solutions for ordering, booking and payments.
Club IT also aims to streamline its supply chain management so that its inventory can be managed in a better way. The management of Club IT realizes that with a better supply chain, the club will be able to meet the needs of its customers in way that is desirable to its customers.
Club IT also intends to improve the way it manages is human resource so as to minimise on the cost of managing the human resource. This will also mean that the available Human Resource will have to be used efficiently so as to increase productivity and profitability.
Stake holders of Club IT
Customers want to be able to easily book and reserve services with club IT. The customers want to be sure that they can do this online without having to be physically present at Club IT premises. Furthermore, Club IT customers want the best quality service and the lowest cost possible for this service. Once the online systems are implemented, the main concern of the customers will be how safe it will be to use the systems. They will also want the system to be easy and convenient to use.
The employees of Club IT will have ht concern for their jobs. Club IT employees will be concerned on how their jobs will be affected once the systems is installed. For instance, the employees will need to know whether the new system will require them to go back to school for further training and if so, who will be taking care of the training fee. Above all, Club IT employees are also concerned stakeholders because their security of jobs is directly connected to the success of Club IT.
Suppliers of Club IT are also stakeholders because they need to that their future business is not at risk. If Club IT is successful, the suppliers are assured of future business. With regard to the technology being introduced, the suppliers will be concerned on whether the new systems are compatible with their systems. The suppliers also want to be sure that the introduction of new technology to Club IT will not adversely affect the business relations with them.
While these stakeholders are not of high importance where the management of Club IT is concerned, it is good to know that they are important in that they will need to be sure that Club IT is not using unfair ways to compete. For instance, when implementing the new technological systems, Club IT should be careful not to breach any patents and copyrights belonging to competitors.
Of course, the ultimate stakeholders to Club IT will be the owners or the capital owners. These stakeholders will need to be guaranteed of the return on their investment and the guarantee that the future of the business is guaranteed.
Impacts of introducing e-commerce to Club IT
One of the expected impacts of introducing ecommerce to Club IT will be the fact that Club IT will increase its sales. This will be possible because more people will be encouraged to buy from Club IT. As discussed, Club ITâ€™s customers are composed on the younger generation (generation millennia) who are more interested in technological things such as internet. By making the services of Club IT available online, many of these customers will associate with Club IT and become regular customers.
Increased customer satisfaction
Currently, the customers have to go through very tedious processes to be able to book or reserve a service. Once the ecommerce systems are introduced, the customers will now be able to buy goods directly from their desktops, smart phones and tablet computers to book and reserve services. Fro instance, customers will be able to use their devices to reserve tables before they arrive at the club. This will increase customer satisfaction.
As the automated systems are introduced, the cost of labor will be reduced and the available labor will be used efficiently. The good thing with most IT systems as long as they are well designed is that they reduced the need for manual labor. This will mean that once the ecommerce system is introduced, Club IT will not need to increase the number of human resource it already has because the system can handle more and more.
The efficiency of Club ITâ€™s business processes will be increased because the manual processes will be replaced by the introduction of IT systems. For instance, the supply chain for Club IT will be streamlined and managed in a more efficiency way. This will be achieved by the sharing of inventory data with the suppliers as well as being able to access the inventory data of the suppliers. The process by which the customers book for services will be increased and the use of the manual way to do this will be scrapped off.
With regard to introducing ecommerce, the main risks that Club IT will be facing will be those associated with the internet such as hacking, and internet fraud. The main risks that Club IT will have to deal with once it goes the ecommerce way are as follows;
Data security will be a major issue because the use of internet will expose the business to online hackers. Because ecommerce is implemented on the internet which is a public network, it means that malicious hackers can hack the network and be able to cause damage to the information of Club IT.
With ecommerce, fraud is a risk that the firm has to deal with because some fraudsters are likely to try to steal from people. There are a number of ways that this risk can be introduced to Club IT. These include the use of phishing, hacking or mail fraud. Phishing is a kind of online fraud that uses a website designed to be very similar both in look and design as well as the address of the website and is intended to trick people into believing that it is the website they are looking for. Once the person reaches this website, they will provide their critical information such banking details and personal details. Once they provide this information to the phishing website the fraudsters can use this information to steal from the person. Mail fraud is also another risk that Club IT may have to deal with in this case. With regard to mail fraud, the fraudsters send mail to people that is purported to come from a trusted firms like Club IT and the people are lured into providing either money or banking information that can be used to steal money from their bank accounts. Hacking can be worst of the risks that Club IT will have to face. This is because hackers can cause a much bigger damage both to the integrity of Club ITâ€™s data as well as the financial security.
With regard to ecommerce, the issue of low internet bandwidth can be a big one. This is because low band width will make the services of the business inaccessible. Club IT will therefore need to be very careful in planning for its internet bandwidth because every time the bandwidth goes down.
Countermeasures to the risks
Data security can be managed by the use of encryption techniques. Encryption is a method of protecting information that is being sent over the internet. Encryption does this by scrambling the data and then sending the data through the internet while it is in scrambled manner and then the information is descrambled on the point of destinations. This means that if a hacker is able to intercept the information while being transmitted, the information will not make any sense from the information because it will be just a jumble of code. Use of digital firewalls to protect local networks can also be used to protect the network from outsiders. A firewall is a computer software, hardware or a combination of both that is used to protect the local network or even a standalone computer. The firewall comes between the local network or the local standalone computer and the public network and filters any security threats.
Antivirus software can also be used to protect the local network and computers from any threats from the internet. The computer antivirus is software that is designed to detect malicious software that may heart the computer being protected. All the above security countermeasure can be used and should be used together in order to make sure that the network is well protected.
The main impact of the ecommerce when implemented in Club IT is that it will change the way the local community interacts with the club. For instance, the customers of Club IT will now not have to go to Club IT and order the things they want. The customers can now go online and give their orders for the barbeque and the different short orders that the customers may want and the show up later to take their orders.
Royall Catering can use ecommerce to expand its business. Royall Catering can use ecommerce to provide customers with ways in which to access the different kinds of menu and deciding what menus can fit their needs. The ecommerce site for Royall Catering can be programmed to help customers understand their catering needs and offer them with a way to order to services online. The ecommerce for Royall Catering can be used to help customers to help plan for their functions. For instance, when planning for an occasion, a customer will need to know the kinds of food they would require for the occasion as well as the amount of each particular kind of foods, fruits etc. If Royall Catering provides an ecommerce site that gives this service for free, it will be able to attract more customers because all the customers who will come to use this system will have to order from Royall Catering. Apart from that, Royall Catering will be able to increase the efficiency of the service to the customers since the customers no longer have to stand in long quest while placing their orders. This is because a computer system can serve many people at a time unlike a human being who can handle only one customer at a time.
Home Deli is a catering business that offers its customers with catering services. Their main customers are the local homes who order meals from Home Deli for any meal of the day. The main meal that Home Deli serves to its customers is dinner. Home Deli realized that most customers have a problem in choosing the right meal for the family and decided to provide a website that the customers can use to order their meals. After implementing the system, Home Deli realized that the system could be used for more than just helping the customers to design their meals and started using it as an ecommerce site that is not used for the process for purchasing the food from Home deli. Currently, the customers are able to not only help browse through the menus but to also order and pay for meals online. Home Deli also realized that the system could be further extended to do other tasks such as managing the supply chain. As a result, the firm has now extended its ecommerce site to include the supply chain management by linking with the suppliers so that the supply chain process is streamlined.
After close analysis of the Home Deli ecommerce system, the following aspects of the systems were eminent;
To implement such a system, a number of computer hardware is needed. These include the servers that will host the website. The computer server will need to be a very strong one in order to make sure that the system is stable all the time. The system will also need network hardware such as routers, nodes and modems. The network hardware is used to connect the server to the internet so that it can be accessible remotely over the internet.
The ecommerce system will have to be designed from scratch for the individual business. However, there are generic software that can be used for some functions of the ecommerce such as the electronic cart etc.
The system will need administrators to manage the system. The server will need at least one database administrator who will be responsible for monitoring the server to make sure that it is always in good working condition.
For a successful ecommerce to be implemented, the bandwidth to connect the system to the internet should be very fast in order to give the customers the best service. The bandwidth should be fast enough to make sure that the customers who use the system will not be discouraged by the low speeds of the system. The wide bandwidth will however have to cost the system even more but will be necessary for the system to be successful.
To be on the safe side, having a standby server is usually important for critical systems such as ecommerce systems. This will be needed by any ecommerce system and this means that there will need to be a spare server that can take over the system if the primary server has any technical errors.
The flowing table shows the financial projections of the various aspects of the systems. It is good to note that the figures are subject to change because IT systems are continually in change in terms of their ability and cost. However, the table below provides the basic needs and requirements for the system.
The system will do the following
Offer online menus
The online menus will help the customers in identifying their needs and planning their orders. The menus will be programmed in such a way that the system is able to help the customers to avoid common mistakes that most people make while making catering orders. Such mistakes include the ordering of the wrong kind of foods or ordering too much or too little for a specific function. The menus will also include menus for family meals. The ecommerce will also include a payment system that will make it possible for customers to pay for their orders online once they have sampled their orders. This will fully automate the system and will be important for the customers as well as Royall Catering. The ecommerce will also be linked with the suppliers of Royall Catering so as to streamline the supply chain and make the inventory management to the easier.