One of Barrett, the Honors College at ASU's most popular services is its school store, stocked with various Barrett merchandise. Our team noticed a number of ineffiencies in the store's business processes. Our group proposed a phone application that could automate several of these processes, overall increasing the store and the school's profitability.
2. Barrett School Store- sells Barrett merchandise
Few students know about the store’s existence
No one knows the dates the store opens
Put video here.
INTRODUCTION
3. Store sets up around the end of every month in an available
classroom.
Primary advertising strategies:
Word-of-mouth
Putting up flyers
Limited to on-campus, Tempe Barrett students
Total number of Barrett students at ASU: 3,895
On-campus Tempe Barrett students: 1,558
Number of students who follow through: 342
Limits the store to only 10% of its main customer install base
Lowers profitability
CURRENT BUSINESS PROCESS
4. Automated process saves employees time (from having to put
up flyers) and money (printing flyers)
Efficient and more effective
Business process of “soliciting customers” involves:
Gaining new customers: the app reaches out to all Barrett students
across the four campuses
Retaining current customers: students will be notified about the
store’s opening and can order merchandise ahead of time, ensuring
their satisfaction
Rewards system: Each time a student orders through the app, they receive
a “Barrett Point”
Every 5 Barrett Points, the student gets a free item with their purchase
JUSTIFICATION FOR AUTOMATION
5. Available for iPhone or Android phones
for free
Students register using their ASUrite ID
and password
Pulls information from general ASU
databases
Sends emails and push notifications to
let students know the dates the store
will be open
Uses the school store’s merchandise
database so that students can place
orders ahead of time
Once the user completes five orders, an
email will be sent giving them a ticket
for a free item with their next purchase
pickup
BASICS OF THE APP
6. “AS IS” VS. “TO BE”
Barrett Parent
Sets up store in a
classroom
Sets up poster
(advertisements)
Student
Do they see the
poster?
Student Goes to the Store
Do they want to
go?
Yes
Yes
They do not know
about the store
NO
They do not want to
go
NO
Search for shirt size Do they have it?
Buy the shirt?
Yes
Student pays Yes
Cashier (Barrett
Parent)
Handles transaction
Inputs info (sales) to
repository
Leave
No
REPOSITORY CHECK
No
• Store employee puts up advertisement
• Student does not see, does not go
• Student sees, decides whether or not they go
• Students goes to the store
• Student browses for merchandise
• Employee looks for specific item or size
• If the store doesn’t have it, student leaves unsatisfied and may
not come back
• If the store does have it, student may not buy it, but come back
again, or may buy it and come back again
7. “AS IS” VS. “TO BE”
STUDENT
CHECK ASURITEID: Allows for updates
on times and hours
PLACE MERCHANDISE ORDER
STUDENT/
CUSTOMER
DATABASE
Message to Solicitation Process:
“Email-Notification to customer”
Message to Merchandise Process:
“+1 Men’s Shirt”
“+2 Barrett Lanyards etc.”
Barrett School Application
Downloads App
Gets Barrett Point
• Student downloads
application and logs on
with ASUrite ID
• Student uses app to order
ahead of time
• Store receives and knows
what items to ship
• Application notifies
student of store opening
• Student picks up
merchandise from store
and pays there
• Application can email
back a receipt
• Application emails
students and employees
letting them know they
have received a Barrett
Point
8. Hardware: Mobile phone, LCD display, touchscreen, keyboard,
ASU server
Software: iOS/Android OS, MySQL and PHP, HTML, CSS,
JavaScript, Apple Push Notification Service
Data: ASUrite ID, name, order, ID number, age/year in school,
order history, as well as the store’s merchandise and current
stock and availability
Procedures: Students download app and register with ASU ID,
order merchandise. Barrett store employees use databases to
process order reservations and get right amount of
merchandise for next shipment
People: Barrett students, faculty, parents
IS COMPONENTS
9. COST BENEFIT ANALYSIS
• Application utilizes ASU’s servers and Internet
• The benefits over 5 years would be $852,684.49 with a projected 1% increase
in revenue each year.
• There is an estimated 1% increase in revenue each year because as more and
more students come to ASU and hear about the app, there will be more
students who will download the app in order to more efficiently buy clothes
from the Barrett store.
• No loss of customers or app users
• The discount factor can also be called the real interest rate, thus with the 10%
discount factor (interest rate) in mind the actual cost of the app would be
$337,151.62 and the actual benefit (revenue) of the app would be
$645,270.80 yielding a net present value (profit) to be $308,270.80 in the
first 5 years of using the application.
10. COST BENEFIT ANALYSIS
• Application uses ASU’s server and internet
• Programming app on our own, so actual production of app is a$100 Apple
Developer account fee and an annual $30 domain registration fee
• Costs total $70,0000 to manufacture items for one store opening plus $120
shipping
• We estimate that at least 50% of Barrett students, or about 1948 students, will
purchase at least one item, resulting in an expected income of $165,537.50.
• Students would not have to pay in order to purchase the app on their
smartphones–the app would be free.
11. Takes physical retail store and puts it
online, making it accessible for the general
public
Companies like Apple, American Eagle,
Gap, and Costco have done similarly
Makes customer experience more efficient
and satisfying
OTHER RELEVANT APPS
12. Killoren, Lexie. Personal interview. 5 Sept. 2012.
"Barrett Facts and Figures." Barrett, the Honors College at
ASU. Arizona State
University , n.d. Web. Sept. 2012.
<http://barretthonors.asu.edu/about/
facts/>.
"App Maker." Appmakr. N.p., n.d. Web. Oct. 2012.
<http://www.appmakr.com>.
REFERENCES