Vincent Borrello

Question 3 for Chapter 3: Managing Information Systems Project

Starbucks uses different types of information systems to help its company remain
competitive in the food and beverages industry. Starbucks is implementing a digital
media project, where different types of information systems are used. The first
information system is a Transaction Processing System. This system records the daily
routine transactions necessary to conduct business such as sales order entry, patrol, and
shipping. The Transaction Processing System also allows managers to monitor the status
of operations and relations with the external environment. With this system, Starbucks is
able to pay the employees on time and ensure that they are fairly paid based on their
working hours. This enables them to keep track of their transactions and expenses. The
second information system is the Customer Relationships Management System. This
system provides information to coordinate all the business processes with customers in
sales, marketing and services to optimize revenue, customer retention, and customer
satisfaction. Customer Relationships Management System introduced a technology that
allows customers to pay with a smartphone app, while also providing free Wi-Fi network
in each store. With this system, it allows customers to pay conveniently without the need
of a physical card or cash, while also increasing the in-store presence of district managers
without adding extra managers with their free Wi-Fi. Next is the Supply Chain
Management Systems. This system is to manage the firm’s relationships with suppliers
and share information about orders, inventory levels, delivery of products, production,
and services. The Supply Chain Management System enables Starbucks to roast coffee
beans in a systematic way to ensure the consistency in flavor. This prevents a case
whereby shortages arise due to poor condition of coffee beans.
Starbucks does have an information systems project management team which
include a various amount of team members. These team members consist of Project
Manager, Senior Project Manager, Manager of Business Systems, Systems Analyst,
Senior System Analyst, System Engineer, and others. There are required skills of being
the Project Manager. These skills consist of: being able to lead project teams and sub
teams to develop and implement new programs and process improvements, ensure that
that multiple projects meet specified timelines and deliver expected results, manage and
monitor project schedules, update plans as needed, results delivered on time and within
budget. The required skills of being the Manager of Business Systems include: Ability to
work in a fast-paced and changing environment, Strong knowledge and demonstrated
application of all facets of systems development lifecycle and technology operations,
Ability to apply knowledge of multidisciplinary business principles and practices to
achieve successful outcomes in cross-functional initiatives and activities, Ability to
leverage business knowledge, sound judgment, and resourcefulness to determine
appropriate course of action in challenging, ambiguous situations, Negotiation and
conflict management skills, and the ability to understand, analyze and develop
operational processes and procedures. These are just some examples of the type of skilled
workers Starbucks have working for them.
Starbucks uses a Cloud-based project management software system. The reason
why this software system was chosen is because of its Accessibility, Cost, Flexibility,
Support, Speed, Integration, and Updates. I believe the most important factors of this list
is Accessibility, Flexibility, and Updates. Using an online collaboration and project
management system demolishes time, space and geographical barriers, while giving
 Vincent Borrello

distributed project team members the opportunity to access the project wherever their
mobile life takes them, making it very accessible. Online project management software
offers inexpensive per-user licensing. Business of all sizes can get on board without
having to invest in massive up-front software or infrastructure costs, making it very cost
friendly. Cloud-based project management software is designed to be updated as new,
enhanced versions are released.
I believe that Starbucks has the best practices in the coffee industry. The different
types of Information Systems help Starbucks to remain competitive as not all food and
beverages stores provides services like free Wi-Fi and allows customers to pay
conveniently with an application. It also ensures that its coffee beans will be delivered on
time to prevent sock out and are similar globally, so that coffee tastes the same in every
store. Also by having a cloud-based project management software system Starbucks has
the flexibility and speed that other coffee shops lack. My only recommendation that I
have for the Starbucks Corporation is to continue with their great work and systems they
have in place.

Question 4 for Chapter 4: Identifying and Selecting Systems Development Projects

The three primary activities for project identification and selection are:
Identifying potential development projects, Classifying and ranking IS development
projects, and Selecting IS development projects. Starbucks information systems projects
are identified as part of the information systems planning process. Applications such as
Mobile Payment System, Operational Management System, Mobile Computing &
Telecommuting System, Starbucks Mobile App, and Digital Dashboard Application are
considered innovative, while others like Retailing System, Brewing System, Starbucks
Data Backup Application, Intelligent Restaurant Information System (IRIS), Multilevel
Storage System, and Starbucks Baristas Scheduling Systems are considered
complementary. Starbucks does have one application that is considered substitutive,
which is their Oracle’s Automated Information System for Manufacturing.
There are differences between corporate strategic planning and information
systems planning at Starbucks. Corporate strategic planning focuses almost exclusively
on "who we are going to target/serve" (customers), "what we are going to give them"
(products/services), and "what we are going to receive in return" (financial results).
While information systems planning develops the strategic plan, the focus is not just on
products and markets, but also on organizational resources, systems, and culture - that is,
on all factors that Management Systems' research has shown to be important to long-term
success. Corporate strategic planning also has a "non-systematic" approach is used to
collect data about organizational effectiveness. While information systems planning takes
the "SWOT analysis to the next level by focusing the analysis on the building blocks of
organizational success. Another difference between corporate strategic planning and
information systems planning at Starbucks is the focus on results. Corporate strategic
planning has the view of too much focus on activities; not enough focus on results.
Information systems planning has the view of tactical plans are built around results that
need to be achieved; through the development of specific, measurable, time-dated Goals,
versus activities to be completed. Also corporate strategic planning thinks it takes too
long to develop the plan while information systems planning believes The process of
developing the strategic plan is both efficient and effective. With adequate preparation, a
 Vincent Borrello

planning team can complete the development of an effective strategic plan in three or
fewer days (typically over a period of 4 to 8 weeks).
Once again I believe that Starbucks has the best practices in the coffee industry,
as they are one of the best well-known coffee shops in the world. With their Mobile
Payment System, customers can check their Starbucks card balance, monitor Starbucks
reward points and see nearby locations on a map or list. With their Retailing System,
Starbucks can deliver an enhanced customer service across channels while driving
growth and increased revenue. Also with Starbucks four key operational applications in
place, which are Starbucks Data Backup, Digital Dashboards, Decision Support System
(DSS), and Starbucks Baristas Scheduling System they provide various justifications.
These consist of: defensive innovation, effective resource utilization, long-term use, and
fully integrated with other application for effectiveness.
 Vincent Borrello

References

Studying Management Information System Of Starbucks Information Technology, 2014,

http://www.ukessays.com/essays/information-technology/studying-management-
information-system-of-starbucks-information-technology-essay.php#ixzz3NL4hwMSI

Starbucks Corporation, Kronos Incorporated, 2014,

http:// wfa.kronostm.com/index.jsp?applicationName=StarbucksNonReqExt

Starbucks& Its Use of Technology, Amy Adkins & Demand Media, 2013,
http://smallbusiness.chron.com/starbucks-its-use-technology-28272.html

Ken Boyer. (2013, September 20). Behind the Scenes at Starbucks Supply Chain
Operations it’s Plan, Source, Make & deliver.
http://www.supplychain247.com/article/behind_the_scenes_at_starbucks_supply_chain_
operations/green

The world largest coffee shop, Starbucks, grinds a lot of data (2013)
http://www.bigdata-startups.com/BigData-startup/world-largest-coffee-shop-starbucks-
grinds-lot-data/

http://mauriziostorani.wordpress.com/2008/12/06/enterprise-resource-planning-erp-
concepts-methods-and-frameworks/

Modern Systems Analysis and Design – 7th Edition, Jeffrey A. Hoffer, Joey F. George,
Joseph S. Valacich, Pearson Education