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Applications / Information
Systems at Starbucks
Compiled by Group 6:-
Dinesh Subramaniam
Raj Anand Gobi
Jayashiman Jammaseelan
Thiruvel Ganasan
Shalini Ramasamy
Sarmila Gunalan
Thivagar Naidu Gobal
Tony Kennedy Antronisamy
How current and future applications of
IT can be evaluated in terms of their
business influences
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Task 1 – Part 1 & 2
No Applications / Information Systems Classification
1 Mobile Payment System Innovative
2 Oracle’s Automated Information System for Manufacturing Substitutive
3 Retailing System Complementary
4 Brewing System Complementary
5 Starbucks Data Backup Application Complementary
6 Operational Management System Innovative
7 Intelligent Restaurant Information System – (IRIS) Complementary
8 Mobile Computing & Telecommuting System Innovative
9 Multilevel Storage System Complementary
10 Digital Dashboards Application Innovative
11 Decision Support System – (DSS) Complementary
12 Customer Relationship Management – (CRM) Innovative
13 Starbucks Baristas Scheduling System Complementary
14 Starbucks Mobile App Innovative
Table 1 – Classification of Starbucks Application/ Systems
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Task 1 – Part 3
Applications / Information Systems Justification
Mobile Payment System Check Starbucks card balance, monitor
Starbucks reward points and see nearby
Starbucks locations on a map or list.
Figure 1 – Mobile Payment System
Task 1 – Part 3
Applications / Information Systems Justification
Oracle’s Automated Information
System for Manufacturing
Distribution planning, manufacturing
scheduling, and inventory control
Retailing System Deliver enhanced customer service across
channels while driving growth and
increased revenue.
Brewing System Clover uses precise technology and a
calculated algorithm to brew coffee
within one degree Fahrenheit of its ideal
temperature and produce the ideal flavor.
Starbucks Data Backup Application Provides reporting on sales and other key
performance indicators for store
managers.
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Task 1 – Part 3 Cont.
Applications / Information Systems Justification
Operational Management System System that has assisted in the growth
process by selecting locations based on
Starbuck’s target demographic and
quality management.
Intelligent Restaurant Information
System – (IRIS)
Regular register functions offers some
functions.
Compiles and reports all store
information
Mobile Computing &
Telecommuting System
Remote access users are responsible for
ensuring their systems are backed up
periodically based on the value of the
information on their system.
Multilevel Storage System To save and ensure the maximum security
of data Starbucks has outsourced the
storage facility of data to data
warehouse.
Task 1 – Part 3 Cont.
Applications / Information Systems Justification
Digital Dashboards KPI application is used by the top
management that provides it information
about the key performance of the
organization to make decision.
DSS To analyzes business data and presents it
so that users can more easily take their
business decision.
CRM Social media and Membership Card
Starbucks Mobile App Get instant access to your barcode with
Shake to Pay, find stores, directions and
access store-specific hours.
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Task 1 – Part 3 Cont.
Applications / Information Systems Justification
Starbucks Baristas Scheduling System Uses to schedule Starbucks
baristas, sometimes giving
them less than a day notice
about their schedules in
order to optimize its
workforce.
Figure 2 – Store Traffic
Task 2 – Part 1 & 2
High
Potential
Strategic
Support
Key
Operational
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Task 2 – Part 1 & 2 Cont.
Key Operational
1. Starbucks Data Backup
2. Digital Dashboards
3. Decision Support System (DSS)
4. Starbucks Baristas Scheduling System.
Justification
• Defensive innovation
• Effective resource utilization
• For long-term use
• Fully integrated with other applications for effectiveness.
• IT is becoming more pervasive and is recognized as a tool for
transformation / business change.
Task 2 – Part 1 & 2 Cont.
Support
1. Mobile Payment System
2. Starbucks Mobile App
3. CRM
Justification
• Immediate/Efficient solutions
• Involve purchasing in general
• Ledgers – Receivables, Payables
• Satisfy user requirements as they arise, but won’t be affecting the
business process if the system does not exist.
• Tight financial controls over IT spend (Re-evaluate benefits) (Scarce
resource)
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Task 2 – Part 1 & 2 Cont.
High Potential
1. Operational Management System
2. Oracle’s Automated Information System for Manufacturing
3. Mobile Computing & Telecommuting System
Justification
• Technology can create business advantages and risks are worth
taking (Leading Edge).
• Push forward boundaries of technology use on all fronts.
• Use the technology and identify the advantages it offers.
• Product tracking/traceability and product profitability analysis.
• Generic Application Management Strategies: Leading Edge and Free
Market
Task 2 – Part 1 & 2 Cont.
Strategic
1. Brewing System
2. Intelligent Restaurant Information System – (IRIS)
3. Multilevel Storage System
4. Retailing System
Justification
• Central coordination of all requirements will produce better
decision making.
• Identify the potential of IS/IT to meet business needs at all levels of
the organization.
• Continuous innovation and high value-added.
• Generic Application Management Strategies: Centrally Planned
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Conclusion
“The main purpose in classifying applications is to ensure
that they are managed successfully and that the expected
contribution is delivered. Based on the issues relevant to
each segment, appropriate implementation strategies can
be adopted.”
(Strategic Planning for Information Systems, John Wiley &
Sons, Pg 317)
References
1. Studying Management Information System Of Starbucks Information Technology, 2014,
Available : http://www.ukessays.com/essays/information-technology/studying-
management-information-system-of-starbucks-information-technology-
essay.php#ixzz3NL4hwMSl
2. Starbucks Corporation, Kronos Incorporated, 2014, Available :
https://wfa.kronostm.com/index.jsp?applicationName=StarbucksNonReqExt
3. Career Center, Starbucks Corporation, 2014, Available :
http://www.starbucks.com/careers
4. Starbucks & Its Use of Technology, Amy Adkins & Demand Media, 2013, Available :
http://smallbusiness.chron.com/starbucks-its-use-technology-28272.html
5. Information Technology One-Stop Portal, 2012, Available :
http://infotechako.blogspot.com/2012/10/starbucks-coffee-and-information.html
6. How Starbucks' Tech-Savvy Strategy Keeps it Ahead of Other Brands, Bradley Seth,
McNew, 2014, Available : http://www.fool.com/investing/general/2014/02/11/how-
starbucks-tech-savvy-strategy-keeps-it-ahead-o.aspx
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References
7. How Starbucks is turning itself into a tech company, 2012, Available:
http://venturebeat.com/2012/06/12/starbucks-digital-strategy/
8. Starbucks Coffee and IT, 2014, Available: http://video.esri.com/watch/3654/starbucks-
coffee-and-it
9. How Starbucks Has Gone Digital, 2013, Available:
http://sloanreview.mit.edu/article/how-starbucks-has-gone-digital/
10. Starbucks Investor Relations, Jenny Walsh, 2014, Available:
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-newsArticle&ID=241330
11. Starbucks Coffee Company Delivers Daily, 2013, Available:
http://www.oracle.com/us/corporate/customers/customersearch/starbucks-coffee-co-
1-exadata-ss-1907993.html
12. Strategic Planning for Information Systems, John Wiley & Sons, 3rd Edition, 2002.