Information Systems Strategy - ReuseUK - Case Study Example

Information Systems Strategy The of the The of the School The and where it is located The Date Word Count: 3013 Table of Contents 1. Organisation and its business model 3 1.1 Mission Statement 3 1.2 Objectives 3 1.3 Organizational Structure 4 2. Research and strategic analysis 5 2.1 External Environment 5 2.2 Analysis of opportunities and threats 7 2.3 Internal Environment 8 2.4 Technology Trends 10 3. Description and Justification of the IS Strategy 11 3.1 Social media marketing 12 3.2. Mobile App 13 3.3 Protecting the users’ information and verifying 14 4. Critical evaluation 14 5. Reference 15 Information Systems Strategy 1. Organisation and its business model. Re-use-uk or ReuseUK is an online organization that operates with the domain name reuseuk.org. Founded by two individuals, this not-for-profit organization wants to provide an online platform to exchange or share used items. In today’s world, increased purchase of various products, its consumption, and eventually its dumping is one of the major causes of environmental degradation. So, the founders believed that sharing as well as reusing items, more specifically, offering unwanted items that are in usable condition (such as clothing, mobile phones, TVs, and so on) to other individuals for free or in exchange for another item, will safeguard the environment, as it will reduce the waste sent to landfill as well as reduce the demand for natural resources. In addition, the organization wants to support individuals and families, who are economically deprived or struggling, by offering them an online platform where they can find items for free or in exchange for other unwanted items. 1.1 Mission Statement Actualize an online platform and facilitate reuse and sharing of everyday items among whole gamut of users and thereby reducing environmental damage. 1.2 Objectives Run and maintain an online platform through which people and organisations across the UK can offer their unwanted items to other registered users for free In addition, they can offer to swap items that they no longer use in return for items that they are in need of Furthermore, needy registered users can request items that are not found in the website but they are in need of. Target people and organisations in and around London through advertisements initially for a period of 3 to 9 months Starting from month 12, want to grow and cover other parts of the UK. Become financially self-sufficient by generating revenue through user fees and advertisements. Move to a bigger office and recruit more specialized staffs 1.3 Organizational Structure In any organization, organizational structure provides the framework for the founders or leaders as well as the department heads, supervisors, employees, and others to operate in a streamlined and effective manner. This is applicable to online organization such as ReuseUK, and particularly for the organizations with dual or multiple founders or leaders. As ReuseUK consist of two founders, they have a range of options to choose from including partnership, corporations, and others. “Which one is right for you depends on many factors, including how much control you want to maintain, tax and liability issues, and your business goals” (Simon 2013). In that direction, partnership appears to be the suitable organizational structure for ReuseUK to follow. The advantage with partnership based organizational structure is that it provides management flexibility, so that management decisions and other responsibilities can be allocated among the partners according to business needs and each partner’s strengths (Simon 2013). In that direction, while one partner has an Information Technology (IT) background, the other has social enterprise background, both of which can be utilized to manage this IT based social enterprise organization. Partner with IT background can take care of the website functioning and the related tasks, including supervision of the IT support analyst and importantly the IS strategy. Although, the partner with social enterprise qualifications can manage the content of the website, along with other key personnel of marketing coordinator, customer advisor, and fundraiser, he/she will also play a key role in IS strategy. So, in certain areas, particularly in the formulation of the IS strategy, the roles of both the partners might overlap thereby influencing the organizational structure (Bailey and Gaulin 2001, p.142). 2. Research and strategic analysis 2.1 External Environment The strategic tool of PEST is applicable to analyze ReuseUK’s external environment. PEST will allow the organization to expect the unexpected and thereby actively position itself to take advantage of the external changes that are likely to arise and influence the organization (). Political UK government spends around £16bn per annum on information technology, wishing to use it as a “tool to enable government not only to improve public services but to dramatically improve the relationship between citizen and state” (Institute for Government). In order to minimize wastes and the resultant environmental damage, government is encouraging businesses to come up with waste prevention models. In that direction, in May 2014, the Innovation in Waste Prevention Fund was launched with funding given by Defra (Department for Environment, Food & Rural Affairs). Under this programme, grants are awarded to partnerships with creative ideas for preventing waste, with funding running for two years and will be awarded in three phases (UK Government 2013). Economic Although, the UK economy is on a stable path after recovering from the recession, it still falls short of expectations. “It will grow by 2.4% in 2015, well below the 3.1% growth expected this year, forecasting group EY Item Club has said” (BBC 2014). The IT sector is contributing sizably to the UK economy and so steps are being taken by the UK government to prop up the sector. Englands natural environment is in decline and its deterioration is harming the UK economy, an independent advisory group has told the government, thus necessitating environment-friendly measures like the one carried out by ReuseUK to safeguard and develop the economy (Harrabin 2015). Social During struggling and recovering economic times, people tend to go for cheaper options such as free exchange of products. People in UK love the idea of exchanging certain products which are lying idle in their homes but could make a huge difference in someones life. (Graham 2015) With UK citizens becoming environmentally-conscious, they want to lesson their carbon imprint on the environment. The appetite for exchanging or bartering websites is likely to grow further with the current vogue for sustainability, saving money, and basically affinity for shopping (Graham 2015). Technology In 2014, 38 million adults, constituting about 76 percent of the UK’s population have accessed the Internet every day, 21 million more than in 2006, when directly comparable records began (Office for National Statistics 2014). On the same lines, access to the Internet using a mobile phone has also more than “doubled between 2010 and 2014, from 24% to 58%” (Office for National Statistics 2014). Speaking of mobile phones, technology is advancing in that sector with the advent of mobile apps, which provides a good platform for websites to transact their products or services. 2.2 Analysis of opportunities and threats Factor Opportunity/ Threat Elements of IS strategy Implications Government’s funding Opportunity Top management and Finance Being a non-profit organization, ReuseUK can approach the government channels for funding considering its focus on IT based waste prevention UK economy performing still below expectations Threat Finance Although UK economy’s performance might not have direct impact, ReuseUK need to manage its finances wisely considering its non-profit nature Natural environment’s deterioration is harming the UK economy Opportunity Marketing ReuseUK and its upcoming marketing team can use this perspective to effectively reach its users During struggling and recovering economic times, people tend to favour cheaper options such as free exchange of product Opportunity Marketing ReuseUK can tap this perspective to bring in more users to the website UK citizens becoming environmentally-conscious Opportunity Marketing and IT department ReuseUK and its marketing team can utilize this change in people’s perspective by even designing its websites with environmental friendly messages Advent of mobile apps Opportunity IT department and R&D ReuseUK can develop its exclusive mobile app 2.3 Internal Environment Porter’s Value chain focuses on the activities which are the most valuable to the organization, and importantly on the activities which need to be improved to provide competitive advantage (Hedman and Kalling 2003). With ReuseUK being a fledging organization which has to find its valuable activities and have to improve certain facets to gain competitive advantage, this tool can be an effective one Inbound logistics focuses on sourcing or procuring the needed materials for the manufacturing process, with operations being the process that adds value to those materials and make them finished products. On the other hand, outbound logistics is about distributing and selling the finished product, using firm’s infrastructures such as manufacturing plant, warehouses, and so on. When one focuses on these three primary activities and two support activities of the value chain in relation to ReuseUK, it may not be relevant in the current context. This is because, ReuseUK does not physically procure the used or old product from the user and add value it. In addition, it does not store it in its infrastructure, and also does not distribute it to the needed user. Instead the users themselves arrange the exchange of the product. However, the users could do that exchange based on the correct and verified information of their fellow users thereby necessitating ReuseUK’s to have an effective IT strategy for that purpose (Beynon-Davie 2013). Marketing and sales and then service forms a key component for any business because it will only entice the customers or users regarding a product or service, make them buy the product or service, and provide after-sales service. Important in the context of the value chain is that both marketing and sales have to be managed focusing on sales volume, value, overall profitability targets, service, and the resultant brand loyalty (Kannegiesser 2008). When marketing and sales as well as service are focused in relation to ReuseUK, it is evident that mainly marketing will be applicable to it, with sales and service not being that relevant. Being a non-profitable organization, it might not do a sale, in the literal and business sense, but any successful exchange of products between users can be regarded as a sale. Furthermore, it might not also provide after-sales service to the exchanged product. At the same time, marketing is a key component for the proper and effective functioning of ReuseUK because through marketing efforts only it can enrol more users or organizations thereby featuring and exchanging more products. So, by using support activities of human resource and technology development, ReuseUK has to come up with IS strategy to market and entice more users. 2.4 Technology Trends Organizations have to be aware of the contemporary technological trends, so they formulate or reorient their strategies. If one focuses on ReuseUK and the technological trends that might be relevant to it, the two trends of social media marketing and developing a mobile app emerge. Social media websites such as Facebook, Twitter, and others have achieved omnipresent status, and so they are being optimally used by organizations to market their products or services. “According to Hubspot, 92% of marketers in 2014 claimed that social media marketing was important for their business, with 80% indicating their efforts increased traffic to their websites” (DeMers 2014). This is particularly relevant to non-profit organizations like ReuseUK, which functions on tight budgets and would find it difficult to utilize traditional paid marketing options. With social networking mediums providing free and extensive reach, ReuseUK can contact more number of users by talking about their website, purpose, and functioning in their own page as well as in other relevant pages. So, apart from traditional marketing options, ReuseUK as part of its IS strategy can use this social media marketing. The other key contemporary technological trend is creating mobile apps that can be downloaded and used in not only mobile phones but also tablets, internet connected TVs, cars, and others. Apps that run in all the major mobile platforms including Android, IOS, Windows, and Blackberry are feasible. These apps can fulfil many necessities of non-profit organizations. “Nonprofits are creating and using mobile apps for everything from fundraising and sharing content to educating the public about their mission” (Sethuraman 2014). As mentioned above, mobile phones with internet being extensively used, people are downloading number of apps and using it. As far as non-profit organizations are concerned, recent surveys show that new users for non-profit organizations mainly come through these free mobile apps thereby also helping them to manage their tight budges. This fact was pointed out by Boice (2014) who stated, “weve always viewed app development as essential, for one simple reason: over two-thirds of our new users come through mobile app stores…without us spending a single dime in marketing!”. So, mobile apps are another key technological trend which can be incorporated by ReuseUK as part of its IS strategy. 3. Description and Justification of the IS Strategy Based on the above analysis of ReuseUK’s external environment, the resultant opportunities and threats, internal environment, and the related technological trends, certain aspects can be made part of its IS strategy. The main two strategies are social media marketing and mobile app, which is the mobile version of its website, followed by minor strategies such as protecting the users’ information and verifying it. 3.1 Social media marketing Components Creating pages or account for ReuseUK in Facebook, Twitter, and LinkedIn. Providing links to those pages on the reuseuk.org website. Acquiring digital camera to take photographs of ReuseUK’s operations, and softwares such as Photoshop to edit and elevate those photographs. “Understanding not only how to manipulate images, but how to create them and the theory behind which images to use and why are essential skills to successfully using social media platforms” (Lanier 2015). Management The founder with IT background or the about-to-be recruited IT support analyst with the guidance from the founder can take care of social media marketing. Then, the founder or the employee should constantly post details about the website, its purpose, operations, and others in an interesting and enticing manner using images. When it comes to images, it would be better for the founder or the employee to learn those image editing softwares, which can be learned through self-teaching materials in the web. As the image related posts on the social media necessitates minimal editing, they themselves can do it without seeking the help of outside experts thereby keeping the process cost-effective. Even the process of enabling social features on the website, including widgets and social plug-ins from Facebook, Twitter, LinkedIn requires little to no developer resources (Funk 2013). Apart from just frequently posting, they have to repost or share their posts in other key and popular pages, starting with London-centric pages, and then after the cut-off of 12 months, they can focus on the pages of non-profit organizations, environment protection groups, waste reduction groups, socially-conscious pages, and many more. They have to promote debates or conversations by frequently commenting on the posts. Importantly, users’ experience or comments, including both positive and critical comments have to be featured, with apt replies to those comments. 3.2. Mobile App Components Mobile App for ReuseUK can be developed by the founder with IT background on his/her own by using number of free mobile app development websites or tools. There are number of code-free and user-friendly app making websites, and one of the prominent ones is AppMakr Nonprofits, which advertises as “You can build your own app in about 20 minutes, and have it published to the world for free” (Appmakr Non-profits). If the founder and even the IT personnel have difficulty in developing the app, they can seek the help of the Institute of Electrical and Electronics Engineers (IEEE), who in February 2014 has launched App-E-Feat, “a program to connect nonprofits with volunteer engineers and mobile developers in order to create mobile apps for non-profit organizations for free” (Sethuraman 2014). Management Once the mobile app for ReuseUK is created, it needs to feature all the key information but in a simple way. “Nonprofits who are dead-set on launching an app should start small and pare down the number of options available to keep it simple” (Johnson 2012). That is, instead of providing number of features, the app should provide basic details about the products, user information, and option to email and chat between the users. After incorporating these basic features, the app should be featured in the app stores of the prominent OS platforms for free. In addition, details to download and use the app can be included in social media platforms. So, if the app is managed on the above lines, ReuseUK will have in their hands “a super cost-effective user acquisition channel that is going to be much more steady and predictable than search engine optimization” (Boice 2014). Then once the app reaches maximum users, advertisements of third-party businesses can be incorporated in the app in a minimal way thereby generating revenues. 3.3 Protecting the users’ information and verifying Components For protecting the users’ information, start with firewalls, and then add extra layers of security to the website and applications such as contact forms, login boxes and search queries (Schiff 2013). Use strong SSL [Secure Sockets Layer] authentication for Web and data protection (Hwang and Li 2010). Management While it is the responsibility of ReuseUK’s to protect users’ information, it can facilitate the users to provide stronger passwords by stipulating them to use mix of characters, symbols or numbers. The user information can be verified by sending a confirmation email and by giving an automated phone call. 4. Critical evaluation From the above analysis, it is possible to state that the process followed to develop ReuseUK’s IS Strategy was an extensive and at the same in-depth one. To corner in on the relevant factors that operate in ReuseUK’s external environment and which could impact the firm, extensive research of various materials was done using the PEST tool. Then, for the analysis of its internal environment, Porter’s value chain was used to focus more on the details given in the appendix or case study. Importantly, based on the technological trends, the two major options were made part of ReuseUK’s IS strategy. As discussed above, these two strategies are aiding many non-profit organizations like ReuseUK in an optimal manner by reaching maximum number of users. So, when ReuseUK uses these two major strategies followed by one more minor strategies, it can achieve a visible presence, entice its target users, provide them smooth and safe experience while exchanging goods, and thereby becoming a successful venture. References Appmakr Non-profits. DIY Mobile App for your not for profit: Easier than you think. Available from http://appmakr4nonprofits.com/(accessed on March 28, 2015) Bailey, JA and Gaulin, DE., 2001. Law Firm Accounting and Financial Management. Law Journal Press. BBC., 2014. UK economic growth to fall to 2.4% in 2015, says EY Item Club. Available from http://www.bbc.com/news/business-29680253(accessed on March 28, 2015) Beynon-Davie, P., 2013. Business Information Systems. Palgrave Macmillan. Boice, D., 2014. Going Mobile: The Importance of Mobile Apps for Nonprofits. Available from http://www.nten.org/articles/2014/going-mobile-the-importance-of-mobile-apps-for- nonprofits(accessed on March 28, 2015) DeMers, J., 2014. 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