Information systems within Organizations
Currently there are some limitations as to the number of stores that could participate in this project due to the location issue. At the moment Somerfield is looking to install only in its 330 neighbourhood stores where the location allow this to happen. Thus there will some issues to resolve with the rest of the stores including forecourts. Recommendations To respond even better to the customer demand, the author would recommend developing a personalized catalogue of the favourite products for the customer s every time they log to the system.
Personalization is great tool to maintain the loyalty of the customers. Thus by having the confidence of the customers over the security of the transactions the company could take an advantage of in storing the customers’ card detail into their home delivery card. As the last the things the customer want is to enter sixteen digit card number, date of birth. They want to click on product, chose “purchase now” and have it delivered home within a certain time. Personalisation will help to monitor the customer buying habits.
At the end of the day the only goal of the company is to generate income, increase brand awareness, become number in grocery convenience market, that’s why the company should choose very clever memorable advertising campaign to achieve its targets. Knowledge of what to expect takes the fear out of buying and thus encourages transaction to happen. The company would need to forecast very closely the customer demand especially during busy trading periods I. e. Christmas, Easter.
By using the personalization and home deliver cards as loyalty card, the company will save later on the costs on direct marketing and will be able to use vouchers and coups so popular among the customers of Tesco and Sainsbury’s. The author has expressed earlier her anxiety over the trust in using the innovative e-business technology by the customers. According to Amit (2000), in order to improve and stabilize the trust factor in customers, the company should adopt five primary components to the highest possible standards: Conclusions
This new device will help Somerfield to speed the operations, enhance the productivity, reach new customers, bring to the business new competitive advantage. This e-business project includes does not simply include the new technology but the elements of cooperation of customer relationship marketing ( CRM) , supply management, internal resource planning. The company will partial E- Business with the mix of digital and physical aspects, as Somerfield – is a standard brick-and-mortar organisation with the primary physical business activities but conducting e-business activities.
All companies operate within the environment which is effected by the certain factors. Due to the nature of business Somerfield is influenced by the needs of the customers and how the services are provided to them through competitors and intermediaries and via upstream suppliers. It is worth to mention the great influence provided by local and international economic conditions and legislation, as well as technological innovation are vital in providing superior services to competitors or through changing the shape of the marketplace.
If the project is successful, Somerfield has an opportunity to further improve the sales, increase the share price, maintain the loyalty of its customers, and confirm its leadership position on the British market. This project will also show the standard of the internal operations, cooperation and communication practice internally. The company faces a set of challenges: externally and internally.
The company would need to overcome internal barriers: Internal readiness of the company should facilitate the level of the external influence on the company profitability by such factors I. e. customer resistance to the technology, competitors activities. Supply chain could play a vital role here. The most important three elements in supply chain management system are time, transparency and trust. Where the responsiveness, new information technology, reliability play very important role too. The company has to test fully before any implementation takes place. The company’ willingness to set up such new service will guarantee the future success if the company will follow its strategy goal and set action plan.
The main aim of technology is to achieve customer relationship management (CRM) is a key element. To build long-term relationship with customers is essential. Reicheld and Schefter (2000) say that if you can keep the customers loyal , the profitability of the company accelerates much faster than in traditional business. Korper (2001) states that retails offers three types of customers: the customers who know what they want and go get it , the customers who want to buy something but are undecided, and the potential customers who merely do use e-business technology.
Somerfield should need to concentrate on the customers who are dedicated to shopping, who came for a product and wants to quickly and easily purchase that product. In order to give what they want, Somerfield will consider the following steps: 1. Ease of use of the technology. It involves simplicity in access and in navigation. The customers are used to speedy and user friendly technology. 2. Privacy. The company should provide everything necessary to maintain secure e-transaction. Customer’s confidence is extremely important here. Responsiveness. The customers expect full reliable company’s responsiveness in any matters.
References
1, Somerfield. The company facts. Available at http://www. somerfieldgroup. co. uk/index. asp? sid=201&press_ID=1182 (last accessed 17 August 2008) 2. Somerfeld. The company business profile. Available at http://www. somerfieldgroup. co. uk/download/factpack. pdf ( last accessed 17 August 2008) 3. Coop Society. Annual report 2007. Available at http://www. midlandsco-op. com/annualreport/ ( last accessed 25 August 2008)
