A New Computer System for Staples - Essay Example

Opportunities Analysis Paper for Staples Executive summary Staples is a great office superstore that is ready to innovation and technology change. The company is able to take advantage from implementing new information system that provides the complete information about goods to its customers. Recently Staples faced the two problems: low customers' satisfaction and impossibility to increase sales because of lack of information. There are two great opportunities for Staples which new information computer system solves: Implementation of a new computer system that allows getting full description of every item in sales area. Providing consumers complete information about every item for sale. I used systems analysis to select this project as opposed to other projects I might have considered. Systems analysis is the science dealing with analysis of complex, large scale systems and the interactions within those systems. Also corresponding Technology Road Map for the project was presented. The project was broken into the following parts: Research of hardware vendors Research of software vendors Development of the goods database Software application development Implementation of the information system Training of personnel I chose two methodologies for the R&D analysis: Brainstorming and 5Ws and H technique as the most appropriate for the project. Company overview Staples, Inc. sells a wide range of office products, including supplies, technology, furniture, and business services. Headquartered outside of Boston, Staples operates approximately 1,695 office superstores and also serves its customers through mail order catalog, e-commerce and contract businesses. Staples, Inc. has a website available at www.staples.com. Each Staples superstore carries over 7,000 brand name products for businesses and home offices, including supplies, furniture, small business machines, computers and peripherals - all at Guaranteed Low Prices. (Staples, The Office Superstore, 2005) With the Big Three of office supplies, Staples, Office Depot, and Office Max, accounting for only 20 percent of the $285 billion market, Staples is focusing on two key areas for growth: small businesses and the Internet. The company hopes to offer small businesses such high tech services as videoconferencing, messaging, and Web-site design. The office giant already bought Quill Corporation, which specializes in direct sales, and telecommunications firm Claricom Holdings while it forged partnerships with Bell Atlantic, Nortel Networks, and CompuCom Systems. Staples also invested an additional $10 million into its new on-line site, which allows customers to purchase over 6,000 items over the Internet. Its rapidly expanding virtual office market is already worth billions of dollars; efforts to improve and refine the site are never-ending. Expansion-happy Staples has surged into 2000. It strengthened its Internet presence by allying with VarsityBooks.com, CloudSource, MarketTools, and TVisions Inc. In early-2000, the company announced that it would offer insurance online as well. Also in 2000, Staples formed strategic alliances with Manhattan Associates, Inc., a producer of management systems; with Plumtree Software, a corporate portal leader; and with Pre-Paid Legal Services, Inc., a national provider of legal service plans. (Staples, The Scoop, 2000) Staples' customers are various companies from home-based businesses to Fortune 500 companies in 21 countries throughout North and South America, Europe and Asia. There are a lot of complaints from Staples' customers that they cannot get the complete information about the goods, fees, discounts and rebates; and therefore they make wrong decisions about purchase. Nevertheless, corporate culture of Staples stated at its website says, "At Staples we strive to be a model of corporate governance and ethical business practices. We are committed to acting with integrity in everything we do and hold ourselves accountable for doing business honestly, ethically, and legally. At Staples, we have built a reputation for integrity by doing the right things to deliver results. We are proud of our reputation, and we are serious about ensuring all associates understand how to maintain it." Therefore, Staples is ready to innovation and technology change. The company is able to take advantage from implementing new information system that provides the complete information about goods to its customers. The Two Opportunities The two opportunities follow from the two problems: low customers' satisfaction and impossibility to increase sales because of lack of information. Thus, the two great opportunities for Staples are: Implementation of a new computer system that allows getting full description of every item in sales area. Providing consumers complete information about every item for sale. I suggest creating a global database with all information about Staples' goods, fees, discounts and rebates. The information system refers to the database to get the information that essential for the specific customer. For example, if somebody wants to order a gift for his friend in Canada, the information system must give information about the item, duty fee is waived if using UPS air shipment and Canadian custom has gift limit (under 60CAD). Implementing a new computer system allows getting full description of every item in sales area and give consumer complete information about this item. Sales consultants with PDAs and barcode scanners will be walking on the sales area and retrieve information about goods via WiFi connection by consumer's demand. The information about goods is retrieved from the database server via WiFi connection. The database server renews information about goods from the external database; so it is the same for all Staples stores. Following two challenges will be solved this way: Customers receive the newest and complete information about every item: information about producer, what modifications of this product are available, is foolproof, what is the difference between it and competitor's analogue and what else people buy with it. So the quality of services increases. The computer system includes expert information and can give a piece of good advice to consumer. For example, if he or she is interested in a drawing board, the system prompts to purchase a set of colored markers as well. If the customer is interested in a table, the system prompts to purchase a chair of the same color and displays prices on them. So the information system helps to increase sales. The computer system must be integrated with the internal goods database of Staples, Inc. So is must provide information only about those goods that are in sight. A special software application must be created for the computer system. It must be an expert system that applies for information to the database server. The supply department should provide the database of goods; it also must be integrated with existing product database. The information from the computer system must also be available through the website. Use of the computer system gives a number of advantages. First, customers are provided with the newest and complete information about every item, so they see that it is really worth to buy. Second, the computer system gives customers advice what they can also buy. Third, it helps to train new personnel in range of goods. Outline of the Methodology A methodology is a repeatable process with project-specific methods, best practices, rules, guidelines, templates, checklists, and other features for building quality systems that are manageable and deliver value to the organization. The methodology can be used and reused any number of times. Good methodologies provide the following benefits: Management can protect its investment by ensuring that project supports are well-defined and likely to succeed. Management and users know in advance what they can expect from each project. A good methodology ensures that quality standard are met; expectations exceed those of custom development routes Quality assurance reviews or audits give management an independent assessment of the quality of work done. Surprises such as cost overruns, scope changes, late implementation, and other risks can be minimized. The status of all projects is readily accessible. Organizations get significant increases in the productivity of application development. The model used to select among project alternatives should be able to: reflect the manager=s and organizations objectives and constraints in the context of risk; deal with multiple time frames; to simulate various expected and unexpected situations, both internal and external (e.g., strikes, interest rate changes); optimize the decision; provide valid results within range of conditions the organization might experience; adapt to changes in the organization or environment; work conveniently with low execution time; be easy to use and understand; use readily available data and personnel; easily simulate expected outcomes; have a low cost for data gathering and modeling relative to the project cost; gather and store information in a computerized database; manipulate the data in the model as easily as a spreadsheet. I used systems analysis to select this project as opposed to other projects I might have considered. Systems analysis is the science dealing with analysis of complex, large scale systems and the interactions within those systems. An analysis is a critical evaluation, usually made by breaking a subject (either material or intellectual) down into its constituent parts, then describing the parts and their relationship to the whole. (Wikipedia) Systems analysis of the project consists of four basic components: Guidelines specify the steps necessary for successful application development. They contain advice and recommendations on how to proceed. Techniques are the detailed process descriptions that support the activities throughout the entire software development lifecycle. Techniques provide assistance for completing the deliverables. Tools, particularly project management tools, are integrated with the methodology to draw on past project experiences. Most methodologies are independent of the main application development software. This means that the methodology can be used with any language, from legacy COBOL systems to CASE tools, object-oriented systems, and so on. Templates are reusable documents and checklists that provide advice and assistance in completing tasks. (Murch, 2005) I chose this methodology because it is universal and can be combined with any type of technology: standard application-development tools; databases; languages such as C, C++, or even COBOL; web services, Java, J2EE; autonomic software, grids, and utility computing. Technology Road Map According to Wikipedia, Technology Road Mapping (TRM) is a technology management tool that attempts to plan and forecast the necessary steps toward achieving one or more technology goals. Technology road maps are different from project plans in that roadmaps attempt to emphasize the uncertainty in the forecast rather than create a linked set of tasks. Evolution of the computer information system must flow under the control of the project manager. He or she must be a Staples' employee and be the most interested person in creation of the computer information system in budget and in time. I suggest outsourcing the computer information system at an US IT vendor. It facilitates the system's support and upgrade in future. The project manager (PM) selects an appropriate contractor for creating the information system. The PM should give some time for waiting for proposals from IT companies. At least they had to find a contractor with experience in creating software for superstores or other related areas. Also Staples should pay attention to volume of projects, completed by their contractor, and to prefer the company with experience with project for some hundreds of man-months. There is a difference between large and small projects: mistakes made on the design phase of large projects cost more expensive. But only very experienced company with at least two successfully finished projects can avoid design-phase mistakes in some extent. (Brooks, 1995) The value of a technology roadmap includes: communicating vision, encouraging collaborative thinking, garnering necessary resources to solve technology challenges, creating contingency approaches and consensus view for decision making. One of the most common extensions of the technology roadmap is to link it to product roadmaps and market roadmaps to provide the complete picture of "What, Why, and How" in relation to the achievement and delivery of a particular technology goal. The Technology Road Map is considered as a time-based chart and is effective communication tools as it allows the user to visualize the evolution of the project. Therefore, the brief Technology Road Map for the computer information system: Fig. 1. Technology Road Map for the computer information system. Also I must note, that the requirements given at the beginning of the project are only a first hint in which direction the project should evolve. As the project continues, the requirements are refined, changed or removed. With an upfront design it is hard to cope with these changes. The design must be adapted each time the requirements change. When the project has already gone into the implementation phase, it's necessary to adapt the design and then update the code to reflect these changes. Therefore it's helpful if the used methodology supports incremental iterative development, which allows it to analyze and design only as much as needed in the current step of development and then work through the implementation and test phase to get the scope of the current iteration step working correctly. To assist the process of allowing requirements to evolve, it's efficient to use the 80:20 rule, i.e. to spend 20% of the time to get 80% of the requirements. Later it's possible to come back and spend 20% of the time to get 80% of the remaining requirements and so on, until the full details would be produced. (Boehm, 1976) Breaking the Project A large-scale complex project involves completing many interrelated subprojects or phases. The phases for the project are determined in the Project Plan step in the overall analysis phase. From the phases, a project plan for the project is developed by ordering the phases in a network, determining how they overlap in time in their execution. The ordering of phases is dependent both upon technical and managerial considerations, with those phases dealing with infrastructure always being done first. Each phase could then be treated like a project, being assigned a phase project manager, with the tasks done in detail in each phase, producing a phase project plan. The results of this process are thus an overall project plan scheduling phases, and project plans for each of the phases, each scheduling tasks for the phase. The success of the project from management's point of view is that the project meets certain project objectives. Because these objectives are normally not all reached until the end of the project, it is useful to develop goals for each subproject that lead to the objectives. Thus, I suggest breaking the project into the following parts: Research of hardware vendors Research of software vendors Development of the goods database Software application development Implementation of the information system Training of personnel Research of hardware vendors is a low priority subproject, because proper and up to date information about the necessary hardware will be available only after software application development. It is a research and development subproject. I think it is a platform subproject and Staples must perform it itself. Research of software vendors is a high priority subproject, because development of the goods database and software application development depend of it. It is a research and development subproject also. I think it is a breakthrough subproject and Staples must also perform it itself. Development of the goods database is a high priority subproject also, because software application development depends of it. It is derivative, partnered and research and development subproject. A partner chosen at the previous subproject should perform it. Software application development database is a high priority subproject also, because hardware selection and implementation of the information system depend of it. It is derivative, partnered and research and development subproject. A partner chosen at the 'Research of software vendors' subproject should perform it. Implementation of the information system is a high priority subproject also, because we can speak about success of information system after fulfilling of it. Dangerous risks could occur at this stage also. It is derivative and partnered subproject, but it must be performed with both Staples', hardware and software vendors' staff. It is the most complicated subproject of all. Training of personnel is a low priority subproject, because it is the last stage of the project at all. It can start after 'Implementation of the information system' subproject. It is a derivative subproject. I think Staples must perform it itself according to documentation from the hardware and software vendors. Methodologies for Analysis I chose two methodologies for the R&D analysis: Brainstorming and 5Ws and H technique as the most appropriate for the project. I consider I need more then one methodology to get wider view of the matter. Brainstorming can be done either individually or in a group; in group brainstorming sessions, the participants are encouraged, and often expected, to share their ideas with one another as soon as they are generated. The key to brainstorming is not to interrupt the thought process. As ideas come to the mind, they are captured and stimulate the development of better ideas. (Wikipedia) Bashford gives 10 rules of brainstorming: 1. Consider group dynamics carefully. There are no set rules about size, but with a large group it's best to break it up into subgroups. 2. Break the ice. This helps generate a relaxed atmosphere even if participants feel a bit silly - as here when asked to pull an object from a bag, such as a pink rubber duck, and come up with something they have in common with it. 3. Plan and structure the brainstorming in advance. 4. Set ground rules. Cultivating the right environment for creativity is essential and negative comments are a surefire way to put a lid on the juices flowing. 5. Get the group thinking creatively. Creative thinking comes from the same part of your brain as comedy. 6. Pick the location carefully. 7. Keep to pre-set timings. 8. Appoint a chairperson/facilitator. 9. Pick appropriate props. Some participants may feel more creative if they can play with something as they think too, such as molding putty. 10. Act quickly when it's over. I chose brainstorming because this technique is very creative and can produce non-standard decisions. This is also the classic ideas generation technique, and it is one of the most effective methods to get a large number of ideas from a group of people in a short time. The main drawback is that group dynamics and self-censorship often prevent group members from sharing their more imaginative ideas. The 5Ws and the H technique means 6 questions: Who What Where When Why and How It aids in expanding an individual's or group's perspective of a problem or opportunity. The technique provides a simple, easy-to-remember framework for systematically gathering data that are relevant to identifying and solving the problem. By going through several cycles of the 5Ws/H, alternatives related to the problem/opportunity can be explored exhaustively. (Couger, Higgins, and McIntyre, 1993) I can ask following set of questions: Who: Person/Department What: What must be done When: When must every part of the project be done Where: Location(s) Why: Why must the project be done at all How: How will the project be done Its simplicity helps ensure the right questions are asked and the right information is recorded. The 5Ws and an H technique provides several benefits: It's simple and easy to learn. It develops questioning skills that avoid yes or no answers. Its use as a model for call logging ensures complete information. It keeps users from forgetting key pieces of information. (Ward, 2001) The technique is very useful. I think that perhaps most commonly asked question is Why. It must be used with great care - the reply may be a reflection of the person's beliefs, justifications and interpretations. References 1. Bashford, S. (2004). '10 Rules of Brainstorming'. Retrieved August 5, 2005, from PR Week Website 2. Boehm, Barry, 1976. 'Software Engineering'. IEEE Transactions on computers. Los Alamitos, CA: IEEE Computer Society. 3. Brooks, Fredrick P. 1995. 'The Mythical Man-Month: Essays on Software Engineering'. Reading, MA: Addison-Wessley. 4. Couger J.D., Higgins, L.F. and McIntyre S.C. (1993). '(Un)Structured Creativity in Information Systems Organizations'. Center for Research on Creativity and Innovation, University of Colorado - Colorado Springs. 5. Murch, R. (2005). 'Methodologies in IT: Comprehension, Selection, and Implementation'. Retrieved August 5, 2005, from Prentice Hall Website 6. 'Staples, The Office Superstore'. (2005). Retrieved August 5, 2005, from Staples, Inc. Website 7. 'Staples, The Scoop'. (2000) Retrieved August 5, 2005, from Excite.com Website 8. Ward, J. (2001). 'A proven technique in identifying user issues'. Retrieved August 5, 2005, from TechRepublic Website Read More

 

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