Name Luisa Te Owai Latimer-Toetuu NetID llat213 Group Number: 116 Website Link: http://infosys1102014fcgroup116.blogspot.co.nz Tutorial Details Tutor: Day: Time: Helen Chen Tuesday 11am Time Spent on Assignment: 25 hours Word Count: 1630
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2 NEXT LEVEL TEXTBOOK SHOPPING INTRODUCTION At university students require all sorts of resources in order to get the most out of their studies. Though some resources are often a lot easier to come by than others, the absence of any resources can prove detrimental to achievement with textbooks and course books being a top contender. To address this problem I have created an online platform that brings affordability, availability and convenience to all users in one single place at any time. 3. BUSINESS SECTION 3.1 Vision To guide the transformation of information into knowledge, by providing the leaders of tomorrow with convenience, affordability and accessibility to resources anytime, anywhere. 3.2 Industry Analysis: Online Bookstore Industry Industry: Online Bookstore Industry. The Online Bookstore Industry is a form of e- commerce where books, both hard copy and/or e-books are sold online in comparison to traditional brick-and-mortar retailers. Force: High/Low: Justification: Buyer power: High The extreme competitive pressure across all markets (Barnes & Noble, Inc., 2014) suggests there are many options for buyers and online disutility costs show that there is a more likely shift in consumer migration to purchase products online rather than in store (Online College Bookstore Business Plan, 2014).
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3 Supplier power: Low Buyers have many options of whom to buy from including a vast number of large global publishers, smaller publishers who focus on specific areas and reputable authors (Books Industry Profile: Unites Kingdom, 2014). Threat of new entrants: High In recent years the apparent barriers to developing, editing and distributing books (Ollila, 2012, p. 17) has fallen significantly, creating a window for publishers to enter into the new consumer-driven market online (Ollila, 2012). Threat of substitutes: High There are numerous book retailers operating online selling both used and new books. In recent years competition from big-box retailers and online discounters (Rosen, 2013, p. 1) have seen the decline in brick-and-mortar bookstores and a massive shift towards online operations instead (Rosen, 2013). Rivalry among existing competitors: High Competition amongst industry players has become inevitable (Amazon.com, Inc., 2012) with studies showing that online retailers are very strong competitors (Forman, Ghose & Goldfarb, 2009). Competitors include traditional University Bookstores, textbook exchange sites and online auction sites to name a few (Online College Bookstore Business Plan, 2014).
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4 Overall attractiveness of the industry: the online bookstore industry in summary is an unattractive industry. Though it is very easy to enter this industry the competition is very aggressive and this is made worse by the numerous amount of substitute services available where buyers have countless options, as do suppliers. 3.3 Customers and Thei r Needs The customers this service is targeted at are University students who often require textbooks or course books for their studies. I have targeted this particular group of customers as I have identified the need for convenience when it comes to purchasing such important resources for busy students, where factors such as transportation costs have determined which consumer channel people have chosen (Online College Bookstore Business Plan, 2014). As well as this it is noticeable that students who are not prepared for classes do not do as well as those who are. One of the leading causes of failure in University has been linked to the big difference in workload compared to previous years at High School (Causes of Failure I College, 2014). This issue is easy to address by ensuring students have no excuse not to have their text books by making the process faster, easier and affordable. Statistics have proven that University students are more interested in going to the Internet channel for products and services needed for University, hence an online platform (Online College Bookstore Business Plan, 2014). 3.4 The Service The online platform service offers students a place where they can buy textbooks and/or course books as well as sell previously owned books, at a more affordable cost. This platform will be made available via all important and age-relevant sites such as Facebook, Email and university portals such as CECIL. This accessibility function acts as a friendly and convenient reminder of the service available, especially for students who often put things off till the last minute. The service will allow users to locate certain books and show whether or not they are available, allowing for precise planning when it comes to pick up. This will save time and
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5 transport costs where in any other situation on arrival, you would be left disappointed to find out the book was unavailable. Students not only have the option of pick up but also delivery and where goods are not available students will have the chance to reserve a copy when stock is replenished. 3.5 Suppliers and Partners Higher education publishers such as Pearson and Mc Graw-Hill will be two of our main suppliers who will supply our service with the required textbooks students require. Our service will also have key partners in freight, delivery and logistics such as FedEx who will deliver goods for us to our customers and information technology (IT) specialists such as Intellium whom we will outsource our technical support issues to. 3.6 Strategy: Focused Low Cost The competitive scope this service will focus on will be a narrow market as the aim is to provide textbooks and course books to students studying at University. Although University is the main place our service aims to operate, our service focus is solely for students. The cost strategy this service will focus on therefore will be low cost as students often do not earn wages or as much money as they could be if they werent studying. The overall strategy is therefore Focused Low Cost. 3.7 Value Chain Activity: Receive and store raw materials The most important value chain activity for this business is receive and store raw materials. This value chain activity is most important, as it is the way in which we are able to provide key functionalities that allow for convenience, affordability and accessibility. The way in which our raw materials are received and stored ensures customers are alerted as and when the processes take place, making for shorter cycle time and better productivity. 3.8 Business Processes
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6 3.8.1. STOCK LOCATI ON PROCESS - This process is key to the service as it allows us to track the location(s) of our stock. This process is important in providing customers with up to date information and determines the following steps customers may choose to take once they have located their required item(s). Where books are available in their chosen location, it may be as easy as going there to buy the book however where there are no books available users may then opt to get resources delivered. The stock location process is very important as it allows the business to identify when and where stock is going.
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7 3.8.2. INVENTORY MANAGEMENT PROCESS This process is key to the service as it allows us to keep track of how much stock is coming in and how much stock is going out. These numbers will be important as they will be used to calculate and display to our customers exactly what numbers of books we have available, and where these numbers reside. This system is also important in alerting us of when certain stock levels are low allowing us to contact our suppliers in a timely manner to replenish inventory.
3.9 Functionalities 3.9.1. STOCK LOCATION PROCESS Shows precise location of any given textbook/course book. Updates information as and when changes occur. 3.9.2. INVENTORY MANAGEMENT SYSTEM Calculate how much stock is coming in and out
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8 Alert us of when we should be replenishing stock 3.10 Systems
3.10. 1. STOCK LOCATION SYSTEM This system will feedback to our online platform exactly where certain books are located, giving users peace of mind in knowing that if they go somewhere a book will definitely be there. As and when changes occur, updates will be sent instantaneously ensuring that all information on the online platform is accurate. 3.10. 2. INVENTORY MANAGEMENT SYSTEM This system will manage any stock received from suppliers as well as stock going out. This system is important as it will allow us to calculate when we should be replenishing stock and also how much stock we have on hand. This information will be vital to our online platform, which displays to users where stock is available and how much of each item is available. 3.10. 3. TECHNOLOGY SUPPORT SYSTEM This system will explore and examine any errors or issues that may occur within our online platform and other systems involved in the process. These issues will be sent to our technical support team internally or one of our external IT support partners who will solve any issues as soon as possible ensuring our service is functioning efficiently.
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9 3.11. Summary Table: Value Chain to Systems Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Receive and store raw materials 1. Stock Location Process 1. Shows precise location of any given textbook/course book.
2. Updates information as and when changes occur. Stock Location System
Technology Support System Transaction Processing System
Decision Support System 2. Inventory Management Process 1. Identifies any technical issue(s) within the Online Platform
2. Measures the severity of the issue(s) for external or internal solving Inventory Management System
Technology Support System Supply Chain Management System
Decision Support System
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10 CONCLUSION In conclusion I believe the online platform service is a great way to bring students the convenience, accessibility and affordability they need to perform better in the class and attend equipped. The use of IT and Information Systems (IS) enables these things through various systems such as stock location, inventory management and technology support systems that provide the key functionalities needed to ensure customer satisfaction, reduced costs and improved productivity. By creating this service for our users we can aid the transformation of information into wisdom. REFERENCES 1. Amazon.com, Inc. SWOT Analysis. (2012). Amazon.com, Inc. SWOT Analysis, 1-11. Retrieved from Business Source Premier database
2. Barnes & Noble, Inc. SWOT Analysis. (2014). Barnes & Noble, Inc. SWOT Analysis, 1- 10. Retrieved from Business Source Premier database
3. Books Industry Profile: United Kingdom. (2014). Books Industry Profile: United Kingdom, 1-29.
4. Bplans. (2014) Online College Bookstore Business Plan The College Caf. Retrieved from: http://www.bplans.com/online_college_bookstore_business_plan/executive_summ ary_fc.php
5. Forman, C., Ghose, A., & Goldfarb, A. (2009). Competition Between Local and Electronic Markets: How the Benefit of Buying Online Depends on Where You Live. Management Science, 55(1), 47-57. Retrieved from Business Source Premier database
6. Ollila, P. (2012). A Changing Retail Marketplace. Publishers Weekly, 259(34), 16-17. Retrieved from Business Source Premier database
7. Rosen, J. (2013). How Booksellers Are Faring After Going Online-Only. Publishers Weekly, 260(13), 10-11. Retrieved from Business Source Premier database