UMUC Hair- Business Proposal
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UMUC Hair- IT proposed business plan with break down of necessary hardware & software as well as cost.
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UMUC Hair- Business Proposal
- 1. UMUC Hair Prepared By: Gloria Miller Business Consultant A Business Proposal Prepared For: Myra Morningstar Business Owner
- 2. Differentiation The strategy chosen to pursue for UMUC Hair is the differentiation strategy. This strategy is used in order to make the business stand out by offering unique benefits, services, and elements to the salon that will set it apart from the rest of the competition. “Differentiation strategies coincide with higher price points than low-cost providers because it costs more money to provide a better overall solution. Emphasizing the value-added elements above the low-cost options is key”(Kokemuller 2014). Clientele Scheduling The most important aspect for UMUC Hair is maximizing the possible clientele base, as well as the existing clientele foundation of the shop. Having the appropriate systems in place will allow management to scheduled appointments with preferred stylist, open availability through out the day, and increase revenue altogether. Portability of the new IT system will allow all staff members to access the appointment book and create streamline service for clientele at all times.
- 3. Solution • Computer & components • ManageMySpa Software & cloud computing • Streamline clientele appointment booking • Access to all employee bookings & cancellations • Online appointment booking • Clientele & stylist scheduled appointment reminder
- 4. • ManageMySpa Software • Apple iMac 21.5-Inch- All in one computer • Broadband internet/ Wifi • Credit Card Terminal & Processing • Epson Expression Premium XP-820 Printer • Star Micronics' Cash Drawer • Datalogic Imager Cordless Scanner Components
- 5. Improvement to the business process • Access to all stylists appointment book in the shop at all times • Stylist of choice for clientele • Greater consistency in services provided • Timely scheduling • Appointment management from anywhere geographically. • Book future appointments for days, weeks or months in advance.
- 6. Benefits • Increased Time Availability For Clientele • Wifi Availability • Marketing & Sales • Competitive Business Intelligence • Increased Strategic Planning • Improved Internal Efficiency • Cost Reduction
- 7. Benefits (Cont.) • Billing • Payroll • Employee scheduling • Inventory management • Accounting • Market knowledge • Analytics-Reports • Growth overview • Human resources management
- 8. Considerations • Usability • Authentication • Cloud Computing • Communications • Reliability/ Availability
- 9. Risks • Staff Not Prepared for changes • System not user friendly • System crash due to inexperience staff • Security risks
- 10. Initial Cost Mac Internet Cash Drawer Epson Printer CC Terminal CC Processing Scanner MMS Software $2,924.23 Monthly Service Cost $245
- 11. Implementation • Time plan • Installation • Modification • Training • Testing
- 12. Conclusion First Step Is To Say Yes!
- 13. Questions
- 14. References Kokemuller, Neil. (2014) Differentiated Business Strategies. Huston Chronicle. Retrieved From: http://smallbusiness.chron.com/differentiated-business- strategies-20638.html Turban, E., Volonino, L., Wood, G., Sipior, J. ( 2013). Information technology for management: advancing sustainable, profitable business growth, 9th edition. Available from http://common.books24x7.com.ezproxy.umuc.edu/toc.aspx?boo kid=51172.
Editor's Notes
- Welcome to the presentation for the proposed business process reengineering process for UMUC Hair. Today the goal in mind is to show how the solution to the current situation in the shop can help bring radical changes to increase its efficiency and create new differentiation processes for the business.
- Kokemuller, Neil. (2014) Differentiated Business Strategies. Huston Chronicle. Retrieved From: http://smallbusiness.chron.com/differentiated-business-strategies-20638.html
- Appointment management, rearranging appointments quickly –without losing appointments.
- Each component will serve a specific service to maximize efficiency within the scope of all business processes for UMUC Hair. To start off, the iMac is the largest component that will be required. The iMac is also the number one tool that will give management the ability to reach out in multiple fomats with the newest technology of app use amongs the majority of the population with smart phones. Apple iMac 21.5-Inch Mac includes wireless mouse, keyboard, & monitor. 1TB Serial ATA drive 1 year full support 1 Year warrantee(free) App store All software upgrades for the life of the Mac Of course, for technology to be effective the connection to the world wide web must be reliable and efficient for the needs of the business. With broadband internet, downloading and uploading information will be fast and efficient. Broadband Internet provider Momdum Included Wifi provider Following are the specifics for the rest of the necessary components to implement the IT solution. Star Micronics' SMD2-1317 Cash Drawer Integrates seamlessly into your iPad- or Mac, using USB or aircash wireless option. Epson Expression Premium XP-820 Small-in-One Printer Produce professional marketing materials in sizes from 3 by 5 to 13 by 19 inches. Wi-Fi and AirPrint from iPad or iPhone. Connects seamlessly to Apple products. Credit Card Terminal By Fence, LLC V1.16 Free with Credit card processing company Requires downloadable app from Apple-Apple compatible Requires OS X 10.7 or higher-64 bit processor. Transaction history, email receipts, graph sales, no info stored on the hardware. Credit card Processing by Fence, LLC. $2.9% + 30 cents per transaction Unlimited terminals 1 free card reader Unlimited Phone support Datalogic GRYPHON I GBT4430 1D/ 2D Area Imager Cordless Scanner with Batch Wireless 1D scanner cradle & USB included.
- The improvements to the business will ensure that UMUC Hair will have a comparative advantage by differentiating itself though the highest quality customer service available in town. Using cloud computing you will be taking advantage of the mobile community that is constantly online and searching for better services. With limited cost after implementation of the hardware, the software will be updated and maintained by the provider. Apple SW is updated regularly, and the system will update on its own after initial set up. MMS SW will be updated every six months to maintain cutting edge technology for the business. Apple, like MySpaSoftware, and Fence, LLC. will have staff able to use in every aspect of the system to increase efficiency and profitability.
- The benefits of the computerization and management software for UMUC will not stop at the clientele appointment book, they will enhance all aspects of management processes. Each aspect will target different problems that are being experienced by the lack of an ERP in the shop. Once you use electronic systems to manage your customer relationship it opens up a world of rich data at your fingertips. With the applications in use, quality consistency, employee retention, and attention to detail, the differentiation strategy will be effective in retaining clientele and ensuring new costumers by both word of mouth and marketing. The increased information will allow you to track customer spending patterns, find upsell and packaging opportunities, isolate customer segments which are profitable and cross sell services to right customer segments.
- With the many benefits that you can see, there are even more that are not being listed. Added benefits of the products chosen to run the software include: Tablets and mobile phones that allow access to the UMUC Hair website at any time from any place. Visuals of how customer lifecycle is completely managed Full Integration with Telecom provider (SMS) Billing and point of sale Quick and error free billing with integrated marketing programs Accounting, employee payroll & commissions Save time by daily/monthly tasks quickly
- Usability is vital to the survival of the new IT solution. With many different aspects that must be learned by management that has limited technological business processes, usability must be at the top of the list for both the software and hardware being installed. The SW program and HW must be user friendly to establish full implementation of the clientele scheduling and appointment book. Authentication like Security for UMUC Hair is very important, due to the new computer & software systems that are to be installed. With new credit cards information and general customer information will be easily accessed by anyone that has access to the system within the shop. Authentication must be implemented to ensure only the right people have access to customers and business records on file. Each employee or staff member will have a log in ID that will give access to certain files and restrict others; while management will be able to see all transactions that were done as well as the user. Cloud Computing: UMUC Hair has chosen to begin their differentiation solution by computerizing the shop; this means it is necessary to have the best infrastructure at low cost with the highest quality. The cloud will offer one of the greatest assets in the survival of the business with the services provided that allow for better management, improved customer service, greater outreach of the community, and up to date information at the lowest cost possible. Communication is a high priority for UMUC Hair because of the option to use the cloud as the server and software provider. The shop must be able to communicate with the server at all times in order to use any of the services that are used in the daily process of the shop. Everything from employee login, appointment book, sales, product research or reorder, customer info(previous services like color codes), and of course service payment Reliability/ Availability: The initial problem was due to the lack of consistency in the booking process, unavailable stylist, and appointment opening; in order for the SW or HW to be worth the cost and improve the process, it must be able to be reliable and dependable at all times. If the system fails during the implementation phase, the staff and management may lose trust in the system and avoid using the system altogether.
- The biggest risk the shop will face when implementing new IT will be the major process changes that staff will have to learn immediately. If the staff or management is not ready to face the challenges of the new system the ERP will inevitably be forgotten after implementation. The solution will be initial training for the staff as well as management to get comfortable with the system. With many training videos for the software, along with full customer service for the apple products and software, the staff should be able to easily overcome any difficulties. The risk of the system not being user friendly will be solved with the technical videos and customer support from ManageMySpa, Apple, and Fence Llc. with the credit card reader and processing company. Any system crashes that may be experienced due to inexperience staff can be solved by calling customer service with the particular components company. All components were chosen with issue in mind, customer service is very important for new consumers in any business. Security risks are created when the personal information of the shop, as well as that of clientele begin to be stored on the cloud servers. With the proper training, security will become second nature for management and staff.
- Total cost for the CSPS and necessary services will total $2,924.23 which will be paid in nine monthly payments of $324.91 The cost of the implementation will be the highest cost incurred for the shop. After set up and initial cost, the monthly service cost will reduce to $245 which will include ManageMySpa SW, Broadband service, & credit card processing services. With the new management software, UMUC hair will be able to maximize its investments with up to 40% increase in product sales and increased upsells to new and existing clientele. While results may vary, it was been shown that the use of ManageMySpa software has had increases in ROI in all business processes.
- Once the plan has been agreed upon, the implementation will begin immediately. Building a plan for the best time to implement the system is important to ensure that the business is not hampered by the process. Time schedules are important to keep the project on track with out to delays. Keeping the scheduled plan on track will ensure that there is enough time to make modifications to the software and hardware to tailor the program to the needs of the shop. Once the program is set to the specific needs of the shop training will be to begin for the management and staff. After training is complete, the program will be tested with the training of the staff to ensure that the program is ready use with clientele.
- As the possibilities of the full integrated system are considered, keep in mind that the right IT investment will lead to lower cost, higher revenues, transparency in daily operations, better decisions based on actual data, and increased customer loyalty. Differentiation has never been easier than it is today with all the new options and solutions that are offered though cloud computing.