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Management Information Systems
By: Divyae Mohan Sherry (1620313)
About Starbucks
StarbucksCorporationisan Americancoffee companyandcoffeehouse chain.Starbuckswasfoundedin
Seattle,Washingtonin1971. Asof November2016, it operates23,768 locationsworldwide.
Starbuckslocationsserve hotandcolddrinks,whole-beancoffee,microgroundinstantcoffee knownas
VIA,espresso,caffe latte,full- andloose-leaf teasincludingTeavanateaproducts,EvolutionFreshjuices,
Frappuccinobeverages,LaBoulange pastries,andsnacksincludingitemssuchaschipsand crackers;
some offerings(includingtheirannual fall launchof the PumpkinSpice Latte) are seasonal orspecificto
the localityof the store.
Information Systems Used
StarbucksmainlyusesfourInformationSystems:
• TransactionProcessingSystem.
• SupplyChainManagementSystem.
• DecisionSupportSystem.
• CustomerRelationshipManagementSystem.
Decision Systems Used
A decisionsupportsystem(DSS)isasystembasedinformation systemthatsupportsbusinessor
organizational decision-makingactivities.DSSsserve the management,operations,andplanninglevels
of an organization(usuallymidandhighermanagement) andhelppeople make decisionsabout
problemsthatmaybe rapidly changingandnoteasilyspecifiedinadvance—i.e.unstructuredandsemi-
structureddecisionproblems.Decisionsupportsystemscanbe eitherfullycomputerized,human-
poweredora combinationof both.
DSS isa computerprogramapplicationthatanalyzesbusinessdataandpresentsitsothatuser can more
easilytake theirbusinessdecisions.StarbucksusesasingularDSSsystematthe parentcompanyin USA:
“oracle”.Oracle generatesmonthlyreportsonwhichimportantdecisionsare based.Onlythe parent
companyhas the authoritymake decisionsaboutproducts.
Starbuckshad builtitspoint-of-sale datawarehouseonOracle technology.Thisfoundation,plusthe
Oracle OLAPoptionon Oracle ExadataDatabase Machine,enabledStarbuckstoscale andseamlessly
migrate itsexistingOracle-baseddatawarehousetoOracle Exadatato expandinsightandfacilitate
decisions,evenwithexplosive growthindataandthe user population.
Why Oracle Systems?
Starbuckshad builtitspoint-of-sale datawarehouseonOracle technology.Thisfoundation,plusthe
Oracle OLAPoptionon Oracle ExadataDatabase Machine,enabledStarbuckstoscale andseamlessly
migrate itsexistingOracle-baseddatawarehousetoOracle Exadatato expandinsightandfacilitate
decisions,evenwithexplosive growthindataandthe user population.
Challenges
Create a robust,24/7-available enterprise datawarehouse containingsales,marketing,store
management,pointof sale,customerloyalty,andsupplychaindatato drive more informedbusiness
decisionsatthe corporate,regional,andstore levels.Improve abilitytorapidlyanalyze andacton
customerloyalty,coffeesales,andsupplychaininformationtocontinue todrive innovation.Ensure
scalabilitytosupportrapidgrowthindata volume
Solutions
Starbucks usedOracle Exadata Database Machine and Oracle BusinessIntelligence EnterpriseEditionto
create a high-performanceenterprisedatawarehouse andbusinessintelligence environmentthat
providesanalystsandmanagersatthe branch, field,andcorporate levelswithtimelyandactionable
insightintostore andproductperformance,aswell assupplychainoperations.
Thishelpedthemgain the abilitytoloadandrefreshdatafromall storesin time forUS East Coaststore
openingseachmorning,completingfull loadsinjustfourhours,andensuringservice level agreement
compliance.
Enabledthe companyto loadpoint-of-saleandcustomerloyaltydatadailyfrom10,000 US storesto the
data warehouse andanswermostqueriessuchasinformationoncoffeesales,promotions,andproduct
mixesinindividualstoresinfewerthan10 seconds.
ImplementedOracle HybridColumnarCompressiontooptimize storage areausage andcompress70
terabytesof rawdata to approximately20terabytesinone case condensing2terabytesof table datato
275 gigabytes,analmost 90% footprintreduction.
UtilizedOracle OLAPoption,enabling1-terabyte cubestobe available forfastandsophisticated
analytics.
Developedafront-enddashboardof keybusinessindicatorsthatenables10,000 usersincludingstore
and corporate managersto gainrapidvisibilityintostore-level salesandoperationaldata.
Increasedproductanalysts’insightintocustomerpreferencestofacilitatestrategicdevelopmentand
productlaunches.
Reducedbyhoursthe time that store managersspendonweeklyreports,whilesimultaneously
expandinginsightandimprovingdecision-makingacrossthousandsof stores.
Oracle Product and Services used by Starbucks
Oracle OLAPis a worldclassmultidimensionalanalyticengine embeddedinOracle Database 12c. Oracle
OLAPcubesdeliversophisticatedcalculationsusingsimple SQLqueries - producingresultswithspeedof
thoughtresponse times.Thisoutstandingqueryperformance maybe leveragedtransparentlywhen
deployingOLAPcubesasmaterializedviews –enhancingthe performance of summaryqueriesagainst
detail relationaltables.Because Oracle OLAPisembeddedinOracle Database 12c, it allowscentralized
managementof dataand businessrulesinasecure,scalable andenterprise-readyplatform.
Oracle OLAPmakesit easyto produce analyticmeasures,includingtime-seriescalculations,financial
models,forecasts,allocations,regressions,andmore.Hundredsof analyticfunctionscanbe easily
combinedincustomfunctionstosolve nearlyanyanalyticcalculationrequirement.Oracle OLAPcubes
are representedusingastar schemadesign:dimensionviewsformaconstellationaroundthe cube (or
fact) view.Thisstandardrepresentationof OLAPdatamakesiteasyfor any reportingandanalysistool
or application - includingsophisticatedbusinessintelligence solutions,SQL-baseddevelopmenttools
and MicrosoftExcel - to leverage the powerof Oracle OLAPina simple andproductive way.
With Oracle OLAP you can:
 Easilydefine amultidimensionalmodelwithadvancedanalyticcalculations
 Productivelydeliverrichanalyticstoanyreportingandanalysistool usingsimple SQL
 Transparentlyimprove summaryqueriesagainsttablesusingcube-basedmaterializedviews
 Combine OLAPdatawithanyother data inyourOracle Database - includingspatial,datamining,
XML, documentsandmore
 Leverage yourexistingOracle Database expertiseandsoftware investment
Oracle Exadata Database Machine
The Oracle ExadataDatabase Machine is engineeredtobe the highestperformingandmost available
platformforrunningthe Oracle Database.Exadatais a modernarchitecture featuringscale-outindustry-
standarddatabase servers,scale-outintelligentstorage servers,andanextremelyhighspeedInfiniBand
internal fabricthatconnectsall serversandstorage. Unique software algorithmsinExadataimplement
database intelligence instorage,PCIbasedflash,andInfiniBandnetworkingtodeliverhigher
performance andcapacityat lowercoststhan otherplatforms. Exadatarunsall typesof database
workloadsincludingOnline TransactionProcessing(OLTP),DataWarehousing(DW) andconsolidationof
mixedworkloads.Simple andfasttoimplement,the ExadataDatabase Machine powersandprotects
your mostimportantdatabasesandisthe ideal foundationforaconsolidateddatabase cloud.
Database Machine Benefits
Best Data Warehouse platform:Accelerate datawarehouse queryperformance byuptoa factor of 10x
or more,and run more queriesconcurrentlyforfasteraccessto business-critical information.
Best OLTP platform: Accelerate performance of OLTPorientedworkloadsthroughacombinationof
large physical flash,ultrahigh-speedflashcompression,andsmartflashcachingalgorithmswhichcan
provide millionsof I/Ospersecond.
Best Consolidationplatform:Replace isolatedspecial-purposesystemwithaconsolidatedplatform
deliveringleadingperformance andscalabilityforall database applications.Exadatahasthe unique
abilitytotransparentlyprioritizerequestsastheyflow fromdatabase servers,throughnetworkadapters
and networkswitches,tostorage,andback.
Oracle Business Intelligence Applications
Oracle BusinessIntelligence (BI) Applicationsare complete,prebuiltBIsolutionsthatdeliverintuitive,
role-basedintelligence foreveryone inanorganizationfromfrontline employeestoseniormanagement
that enable betterdecisions,actions,andbusinessprocesses.Designedforheterogeneous
environments,thesesolutionsenableorganizationstogaininsightfromarange of data sourcesand
applicationsincludingSiebel,Oracle E-BusinessSuite,PeopleSoft,andthirdpartysystemssuchasSAP
Oracle BI Applicationsare builtonthe Oracle BISuite Enterprise Edition,acomprehensive,innovative,
and leadingBIplatform.Thisenablesorganizationstorealizethe value of apackagedBI Application,
such as rapiddeployment,lowerTCO,andbuilt-inbestpractices,while alsobeingable toveryeasily
extendthose solutionstomeettheirspecificneeds,orbuildcompletelycustomBI applications,all on
one commonBI architecture.
 Oracle financial analytics(OFA)
 Oracle HR analytics(OHRA)
 Oracle marketinganalytics(OMA)
 Oracle vertical (industryspecific) analytics
 Oracle salesanalytics(OSA)
 Oracle service analytics(OSEA)
 Oracle supplychainanalytics(OSCA)
A word from Starbucks Coffee Company
"Our Oracle Exadata-based database warehouse and Oracle Business Intelligence environment deliver
detailed insight into point-of-sale data that allows us to innovate and offer our customers better
services." – Mike Manzano, Vice President, Analytics and Insight, Starbucks Coffee Company.
Recommendations
 Usingquickcommunicationsystemslike SlackandFlockforcommunications
 IntegratingAnalyticsandBISystemsfromIBMWatson
 IntegratingCRMslike FreshdeskonMobile Appsandinstores.

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Management Information Systems used by Starbucks

  • 1. Management Information Systems By: Divyae Mohan Sherry (1620313) About Starbucks StarbucksCorporationisan Americancoffee companyandcoffeehouse chain.Starbuckswasfoundedin Seattle,Washingtonin1971. Asof November2016, it operates23,768 locationsworldwide. Starbuckslocationsserve hotandcolddrinks,whole-beancoffee,microgroundinstantcoffee knownas VIA,espresso,caffe latte,full- andloose-leaf teasincludingTeavanateaproducts,EvolutionFreshjuices, Frappuccinobeverages,LaBoulange pastries,andsnacksincludingitemssuchaschipsand crackers; some offerings(includingtheirannual fall launchof the PumpkinSpice Latte) are seasonal orspecificto the localityof the store. Information Systems Used StarbucksmainlyusesfourInformationSystems: • TransactionProcessingSystem. • SupplyChainManagementSystem. • DecisionSupportSystem. • CustomerRelationshipManagementSystem.
  • 2. Decision Systems Used A decisionsupportsystem(DSS)isasystembasedinformation systemthatsupportsbusinessor organizational decision-makingactivities.DSSsserve the management,operations,andplanninglevels of an organization(usuallymidandhighermanagement) andhelppeople make decisionsabout problemsthatmaybe rapidly changingandnoteasilyspecifiedinadvance—i.e.unstructuredandsemi- structureddecisionproblems.Decisionsupportsystemscanbe eitherfullycomputerized,human- poweredora combinationof both. DSS isa computerprogramapplicationthatanalyzesbusinessdataandpresentsitsothatuser can more easilytake theirbusinessdecisions.StarbucksusesasingularDSSsystematthe parentcompanyin USA: “oracle”.Oracle generatesmonthlyreportsonwhichimportantdecisionsare based.Onlythe parent companyhas the authoritymake decisionsaboutproducts. Starbuckshad builtitspoint-of-sale datawarehouseonOracle technology.Thisfoundation,plusthe Oracle OLAPoptionon Oracle ExadataDatabase Machine,enabledStarbuckstoscale andseamlessly migrate itsexistingOracle-baseddatawarehousetoOracle Exadatato expandinsightandfacilitate decisions,evenwithexplosive growthindataandthe user population. Why Oracle Systems? Starbuckshad builtitspoint-of-sale datawarehouseonOracle technology.Thisfoundation,plusthe Oracle OLAPoptionon Oracle ExadataDatabase Machine,enabledStarbuckstoscale andseamlessly migrate itsexistingOracle-baseddatawarehousetoOracle Exadatato expandinsightandfacilitate decisions,evenwithexplosive growthindataandthe user population. Challenges Create a robust,24/7-available enterprise datawarehouse containingsales,marketing,store management,pointof sale,customerloyalty,andsupplychaindatato drive more informedbusiness decisionsatthe corporate,regional,andstore levels.Improve abilitytorapidlyanalyze andacton customerloyalty,coffeesales,andsupplychaininformationtocontinue todrive innovation.Ensure scalabilitytosupportrapidgrowthindata volume
  • 3. Solutions Starbucks usedOracle Exadata Database Machine and Oracle BusinessIntelligence EnterpriseEditionto create a high-performanceenterprisedatawarehouse andbusinessintelligence environmentthat providesanalystsandmanagersatthe branch, field,andcorporate levelswithtimelyandactionable insightintostore andproductperformance,aswell assupplychainoperations. Thishelpedthemgain the abilitytoloadandrefreshdatafromall storesin time forUS East Coaststore openingseachmorning,completingfull loadsinjustfourhours,andensuringservice level agreement compliance. Enabledthe companyto loadpoint-of-saleandcustomerloyaltydatadailyfrom10,000 US storesto the data warehouse andanswermostqueriessuchasinformationoncoffeesales,promotions,andproduct mixesinindividualstoresinfewerthan10 seconds. ImplementedOracle HybridColumnarCompressiontooptimize storage areausage andcompress70 terabytesof rawdata to approximately20terabytesinone case condensing2terabytesof table datato 275 gigabytes,analmost 90% footprintreduction. UtilizedOracle OLAPoption,enabling1-terabyte cubestobe available forfastandsophisticated analytics. Developedafront-enddashboardof keybusinessindicatorsthatenables10,000 usersincludingstore and corporate managersto gainrapidvisibilityintostore-level salesandoperationaldata. Increasedproductanalysts’insightintocustomerpreferencestofacilitatestrategicdevelopmentand productlaunches. Reducedbyhoursthe time that store managersspendonweeklyreports,whilesimultaneously expandinginsightandimprovingdecision-makingacrossthousandsof stores. Oracle Product and Services used by Starbucks Oracle OLAPis a worldclassmultidimensionalanalyticengine embeddedinOracle Database 12c. Oracle OLAPcubesdeliversophisticatedcalculationsusingsimple SQLqueries - producingresultswithspeedof thoughtresponse times.Thisoutstandingqueryperformance maybe leveragedtransparentlywhen deployingOLAPcubesasmaterializedviews –enhancingthe performance of summaryqueriesagainst detail relationaltables.Because Oracle OLAPisembeddedinOracle Database 12c, it allowscentralized managementof dataand businessrulesinasecure,scalable andenterprise-readyplatform.
  • 4. Oracle OLAPmakesit easyto produce analyticmeasures,includingtime-seriescalculations,financial models,forecasts,allocations,regressions,andmore.Hundredsof analyticfunctionscanbe easily combinedincustomfunctionstosolve nearlyanyanalyticcalculationrequirement.Oracle OLAPcubes are representedusingastar schemadesign:dimensionviewsformaconstellationaroundthe cube (or fact) view.Thisstandardrepresentationof OLAPdatamakesiteasyfor any reportingandanalysistool or application - includingsophisticatedbusinessintelligence solutions,SQL-baseddevelopmenttools and MicrosoftExcel - to leverage the powerof Oracle OLAPina simple andproductive way. With Oracle OLAP you can:  Easilydefine amultidimensionalmodelwithadvancedanalyticcalculations  Productivelydeliverrichanalyticstoanyreportingandanalysistool usingsimple SQL  Transparentlyimprove summaryqueriesagainsttablesusingcube-basedmaterializedviews  Combine OLAPdatawithanyother data inyourOracle Database - includingspatial,datamining, XML, documentsandmore  Leverage yourexistingOracle Database expertiseandsoftware investment Oracle Exadata Database Machine The Oracle ExadataDatabase Machine is engineeredtobe the highestperformingandmost available platformforrunningthe Oracle Database.Exadatais a modernarchitecture featuringscale-outindustry- standarddatabase servers,scale-outintelligentstorage servers,andanextremelyhighspeedInfiniBand internal fabricthatconnectsall serversandstorage. Unique software algorithmsinExadataimplement database intelligence instorage,PCIbasedflash,andInfiniBandnetworkingtodeliverhigher performance andcapacityat lowercoststhan otherplatforms. Exadatarunsall typesof database workloadsincludingOnline TransactionProcessing(OLTP),DataWarehousing(DW) andconsolidationof mixedworkloads.Simple andfasttoimplement,the ExadataDatabase Machine powersandprotects your mostimportantdatabasesandisthe ideal foundationforaconsolidateddatabase cloud. Database Machine Benefits Best Data Warehouse platform:Accelerate datawarehouse queryperformance byuptoa factor of 10x or more,and run more queriesconcurrentlyforfasteraccessto business-critical information.
  • 5. Best OLTP platform: Accelerate performance of OLTPorientedworkloadsthroughacombinationof large physical flash,ultrahigh-speedflashcompression,andsmartflashcachingalgorithmswhichcan provide millionsof I/Ospersecond. Best Consolidationplatform:Replace isolatedspecial-purposesystemwithaconsolidatedplatform deliveringleadingperformance andscalabilityforall database applications.Exadatahasthe unique abilitytotransparentlyprioritizerequestsastheyflow fromdatabase servers,throughnetworkadapters and networkswitches,tostorage,andback. Oracle Business Intelligence Applications Oracle BusinessIntelligence (BI) Applicationsare complete,prebuiltBIsolutionsthatdeliverintuitive, role-basedintelligence foreveryone inanorganizationfromfrontline employeestoseniormanagement that enable betterdecisions,actions,andbusinessprocesses.Designedforheterogeneous environments,thesesolutionsenableorganizationstogaininsightfromarange of data sourcesand applicationsincludingSiebel,Oracle E-BusinessSuite,PeopleSoft,andthirdpartysystemssuchasSAP Oracle BI Applicationsare builtonthe Oracle BISuite Enterprise Edition,acomprehensive,innovative, and leadingBIplatform.Thisenablesorganizationstorealizethe value of apackagedBI Application, such as rapiddeployment,lowerTCO,andbuilt-inbestpractices,while alsobeingable toveryeasily extendthose solutionstomeettheirspecificneeds,orbuildcompletelycustomBI applications,all on one commonBI architecture.  Oracle financial analytics(OFA)  Oracle HR analytics(OHRA)  Oracle marketinganalytics(OMA)  Oracle vertical (industryspecific) analytics  Oracle salesanalytics(OSA)  Oracle service analytics(OSEA)  Oracle supplychainanalytics(OSCA) A word from Starbucks Coffee Company "Our Oracle Exadata-based database warehouse and Oracle Business Intelligence environment deliver detailed insight into point-of-sale data that allows us to innovate and offer our customers better services." – Mike Manzano, Vice President, Analytics and Insight, Starbucks Coffee Company.
  • 6. Recommendations  Usingquickcommunicationsystemslike SlackandFlockforcommunications  IntegratingAnalyticsandBISystemsfromIBMWatson  IntegratingCRMslike FreshdeskonMobile Appsandinstores.