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Doggy

Delish
Business
Report

Natasha Fulton

2483 Words
Table of Contents
2 Table of Figures ........................................................................................................ 3

3 Table of Tables ......................................................................................................... 4

1. Business Information System ...................................................................................... 5

3.1 1.1. Business Background ................................................................................. 5

3.2 1.2. Introduction to Computer Based Information Systems ................................ 5

3.2.1 1.2.1. Rationale of Selection of Intra-organisational CBIS ........................... 6

3.2.2 1.2.2. Hardware ........................................................................................... 6

3.2.3 1.2.3. Software ............................................................................................ 7

3.2.4 1.2.4. Project Budget ................................................................................... 9

4 2. Organisational Strategy ........................................................................................ 9

4.1 2.1. Strategies to Obtain Competitive Advantage in Your Business ................... 9

5 3. Data and Knowledge Management..................................................................... 11

5.1 3.1. Entity Relationship Diagram ...................................................................... 11

6 4. Social Computing................................................................................................ 13

6.1 4.1. Marketing .................................................................................................. 13

6.2 4.2. Impact of Social Networking Strategies for Business Expansion .............. 14

7 5. E-business and E-commerce .............................................................................. 15

7.1 5.1. E-business and E-commerce Solutions .................................................... 15

7.2 5.2. B2B Electronic Commerce ........................................................................ 15

7.3 5.3. B2C Electronic Commerce ........................................................................ 15

7.4 5.4. Ethical Issues ............................................................................................ 16

8 6. Information Systems within the Organisations .................................................... 17

8.1 6.1. CBIS Expansion Plan ................................................................................ 17

6.2. Reports ............................................................................................................... 20


Conclusions................................................................................................................... 20

9 Appendix A ............................................................................................................. 21

10 Bibliography......................................................................................................... 23
Table of Figures

Figure 1 Project Budget................................................................................................... 9


Figure 2 Entity Relationship Diagram ............................................................................ 12
Figure 3 Work Breakdown Structure ............................................................................. 18
Figure 4 Expansion Plan ............................................................................................... 19
Figure 5 Reports ........................................................................................................... 20
Figure 6 Example Website page for Doggy Delish ........................................................ 22
Table of Tables

Table 1 Hardware Required by Doggy Delish ................................................................. 7


Table 2 Software Required by Doggy Delish ................................................................... 8
Table 3 Entities and Roles ............................................................................................ 11
1. Business Information System
1.1. Business Background
Doggy Delish is an online pet food business based in Booval, Queensland, Australia.
Doggy Delish provides top quality wet food, kibble and dog treats for your beloved best
friend. Delivered fresh to your door, anywhere Ipswich. Our range includes wet and dry
food for both puppy and adult stages of life and is free from artificial additives,
preservatives, flavors and colours and sugar. Doggy Delish aims to provide food that is
not only healthy for your pet but made from all natural ingredients.

Doggy Delish was started after the owner found her two Staffordshire Terriers behavior
would become almost uncontrollable after eating dog food containing artificial additives
and preservatives, flavors, colours and sugar. Yet were extremely behaved if all artificial
ingredients and sugar were removed from their diet. Those same foods were responsible
for her male Staffordshire terrier becoming ill with pancreatitis. Thus Doggy Delish was
born, providing food with only natural ingredients.

Doggy Delish’s current aims are to expand their all natural dog food to all of Queensland.

1.2. Introduction to Computer Based Information Systems


For Doggy Delish to reach their goals of expanding through all of Queensland they need
computer based information systems (CBIS) to achieve this. These CBIS will allow Doggy
Delish to keep a record of all sales, customer information, inventory, transactions and
transportation of goods (Rainer, et al., 2015).

Customer loyalty is key to business success. Loyal customers often spend more, require
less time and are more likely to spread the word of your business and recommend it to
others (Otim & Grover, 2006). CBIS will allow Doggy Delish to develop this loyalty through
easy, fast and transparent transaction systems, the ability for customers to search for the
items they want to buy and the ability for customers to track their order once purchased
(Otim & Grover, 2006). CBIS will also allow Doggy Delish to keep track of the dog food
that customers purchase, allowing Doggy Delish to build personal relationships with their
customers (Rainer, et al., 2015).
1.2.1. Rationale of Selection of Intra-Organisational CBIS
To be able to provide products to customers Doggy Delish will need to create a supply
chain management system. A supply chain is the process that takes products from raw
materials all the way through production to the consumer. This contains electronic
commerce systems and logistics systems (Rainer, et al., 2015).

A Transaction processing system will be needed to record all transactions from purchases
to sales (Rainer, et al., 2015). Electronic commerce systems will be needed so that
customers have an interface to read about, purchase, pay for products, and track their
purchases. An electronic commerce system will also be used for inventory and
purchasing, allowing Doggy Delish to easily check stock and re- order more stock from
suppliers when needed (Rainer, et al., 2015).

A logistics system will be needed as Doggy Delish is an online business. A well planned
logistics system will allow for products to be tracked and delivered quickly while keeping
delivery costs down (Langevin & Riopel, 2005).

1.2.2. Hardware
Doggy Delish is currently owned and operated by one person and will continue to remain
a sole trader after expansion. This will lead to the following hardware being required. A
computer with a monitor keyboard and mouse will be needed to enter in sales, customer
information and all other business data. This computer will be required to be updated
regularly. An all-in-one printer will be needed for faxes and any printing requirements of
the business. The camera will be used to take photos of products to add to the web page
and social media enabling customers to see the packaging and what the actual dog food
looks like. An office phone will be needed to conduct business and a Mobile phone will
be needed for contact when not in the office. Appendix A explains how the barcode
scanning system and label printer will be used.
Table 1 Hardware Required by Doggy Delish

Hardware Name of Hardware Cost of Hardware


Computer Intel i7 6700 Extreme Pack $1181

Monitor BenQ BL2700HT 27” LED Business $359


Monitor

Keyboard Microsoft Ergonomic 4000 Keyboard $58

Mouse Logitech G700S Gaming Mouse $99

Fax/Printer Canon Maxify MB5360 Multi- $295


Function Printer

Camera Canon IXUS 160BK Digital Camera $139

Mobile Phone IPhone 6 $60 Per Month for 24


months

Bar Code Metrologic Eclipse (HoneyWell) $185


Scanner Barcode Scanner

Label Printer Brother QL-720NW wireless/ $189


networkable high speed label printer

Office Phone Cisco Small Business SPA 504G $246


VoIP

1.2.3. Software
The software Doggy Delish would need is MYOB for all accounting needs. MYOB allows
tax, pays, banking, quotes, invoices and receipts to be organised as well as having the
ability to track jobs, work with the cloud and do stock control (MYOB, AccountRight Power
to manage business, your way, 2015). For customer relationship management Act! Pro
will be used in conjunction with Act! Link for MYOB allowing all software to work
seamlessly together (Act Today, 2015). There will be the operating system of Windows
10 to run the computer. The office suite used will be Office Pro Plus which includes
Microsoft Access. Chrome will be used as the internet browser and Norton anti-virus will
be used to protect the computer from viruses. The software to use with the label printer
is provided by the label printer.

Table 2 Software Required by Doggy Delish

Software Name of Software Cost of Software

Accounting Software MYOB Account Right Plus $77 per month

Operating System Microsoft Windows 10 Pro $219

Office Office 365 Pro Plus $19.14 per month on a 12


month contract

Customer Relationship Act! Pro $297


Management

CRM joined to MYOB Act! Link for MYOB $140.80

Anti-virus Norton $89.99 per year

Internet Chrome Free

Blog Plan WordPress $129 per year

Blog domain WordPress $24 per year


1.2.4. Project Budget

Figure 1 Project Budget

2. Organisational Strategy

2.1. Strategies to Obtain Competitive Advantage in Your Business


Doggy Delish’s competitive strategy will be focusing on three key areas; differentiation,
operational effectiveness and customer- orientation. Studies have found that a
differentiation strategy yields better long run performance and higher earnings (Banker,
Mashruwala, & Tripathy, 2014). While cost leadership strategies require the business to
find new innovations that make supply and production costs lower, differentiation
strategies focus on the business setting apart their product to that of their competitors
(Banker, Mashruwala, & Tripathy, 2014). Doggy Delish’s differentiation strategy will focus
on the product being made from all natural ingredient free from artificial preservatives,
colorings and flavors and sugar free at a cheaper cost to the consumer.
Operational effectiveness refers to the business running in a way that increases internal
processes that make it perform faster than competitors (Rainer, et al., 2015). Doggy
Delish will be using Bar code scanners to increase performance and lessen data entry
mistakes. Bar code scanners allow Doggy Delish to scan an order then scan an inventory
item, automatically adding the item to the order and updating inventory systems such as
MYOB and reducing the time by removing the manual effort required to enter this
information (Garg, 2012). By using a barcode scanner system Doggy Delish will be able
to increase packaging and dispatch times significantly (Garg, 2012).

Although an innovation strategy is not something Doggy Delish will be employing, it refers
to introducing new products or features that create an advantage over competitors
(Rainer, et al., 2015). Doggy Delish will however be using a customer- orientation
strategy. This strategy puts a lot of focus on building a relationship with customers putting
their happiness first (Rainer, et al., 2015). Studies have shown that happy customers are
more loyal and likely to be return spenders (Otim & Grover, 2006). Doggy Delish plans to
put this strategy into effect with a database that allows the business to refer to the
customers pet by name, a good website that will include a fast, easy and transparent
transaction system and the ability for all customers to track their orders free of charge.
These systems have been found to increase customer loyalty which will achieve the
customer- orientation strategy (Otim & Grover, 2006).
3. Data and Knowledge Management

3.1. Entity Relationship Diagram

Table 3 Entities and Roles

Entity Role

Purchases products
Customer
The items Doggy Delish sells
Product
The products the customer wants to order
Order
An item on the customer’s order
Order Item
Who Doggy Delish purchases supplies and raw
products from
Supplier
The raw products suppliers have to sell
Supplier Product
An order from Doggy Delish to a supplier for
purchase of raw materials and supplies
Purchase Order
An item on the purchase order
Purchase Order Item
The company that delivers orders and purchase
orders
Courier
The order when being delivered
Shipment
Shipment Details The details of the shipment

Shipment Tracking The tracking of delivery for customer orders

Refer to appendix B for further breakdown


Figure 2 Entity Relationship Diagram
4. Social Computing

4.1. Marketing
Doggy Delish will use three social marketing concepts; Twitter, Facebook and a blog via
WordPress. The website for Doggy Delish will have direct links to each of these, making
them easier to find for customers. Twitter will allow Doggy Delish to foster close
relationships with customers (Rainer, et al., 2015). Twitter allows this by providing users
the ability to interact with customer regularly in the form of tweets. As one of Doggy
Delish’s competitive advantage strategies revolves around customer- orientation,
tweeting regularly with customers will help build the relationships needed to achieve this
goal (Elliott, Rundle-Thiele, & Waller, 2014).

Facebook will allow Doggy Delish to acquire new customers via people on their friends
list linking and/ or liking posts made by Doggy Delish and chatting on Doggy Delish’s
Facebook page, this then shows up on their friend’s pages who can then click links back
through to Doggy Delish’s Facebook page (Elliott, Rundle-Thiele, & Waller, 2014). The
other uses of Facebook for the marketing campaign is the ability to conduct market
research in the form of surveys or by requesting friends to like or comment on posts.
Finally Facebook will allow Doggy Delish to hold competitions and show weekly specials
encouraging customers to buy from Doggy Delish (Elliott, Rundle-Thiele, & Waller, 2014).

Finally by providing a blog that can be accessed via the Doggy Delish website will allow
the business to foster relationships with customers and providing a platform for future
customers to read about Doggy Delish and current customer experiences (Elliott, Rundle-
Thiele, & Waller, 2014). A blog allows Doggy Delish to use a pull strategy where by
showing customer what Doggy Delish is about, stands for and believes in invites
customers and future customers to come to the business for a personal shopping
experience (Elliott, Rundle-Thiele, & Waller, 2014).
4.2. Impact of Social Networking Strategies for Business Expansion
Social media provides many benefits for business expansion. Social media gives Doggy
Delish the ability to conduct market research quickly and cheaply by using Facebook,
blogs and Twitter surveys (Rainer, et al., 2015). Social Media allows Doggy Delish to form
close relationships with customers and lets the business learn about their customers
leading to more loyal customers. These relationships also allow Doggy Delish to form
better marketing campaigns aimed at their customers (Otim & Grover, 2006). Finally
social media will allow Doggy Delish to receive feedback quickly enabling the business to
change what is not working for customers (Rainer, et al., 2015).

Social Media also has downsides that can effect business. The main risks for Doggy
Delish would be reputation and information security concerns. Reputation can be ruined
many ways via social media. Customers can leave poor reviews or complaints that can
be seen by other customers, changing their view of the business and its products (Esola,
2010). Though this negative information can be used to better the products the business
sells (Rainer, et al., 2015). Employees of the business can also ruin reputation by posting
updates that customers find offensive or discriminatory (Esola, 2010). Furthermore by not
responding to customer complaints on social media customer relationships can be broken
(Rainer, et al., 2015). Information security concerns are caused by information posted on
social media sites being used to break into business databases gaining access to
customer’s information including credit cards (Esola, 2010). If Doggy Delish were to
employ people there is also the chance that if those employees post false information and
statements online the business itself can be held accountable even if the employee was
not authorised to make the statements, leading to legal costs and issues (Elliott, Rundle-
Thiele, & Waller, 2014).
5. E-business and E-commerce

5.1. E-business and E-commerce Solutions


As Doggy Delish is an online business e-commerce is very important. E-commerce allows
Doggy Delish to build a website that customers can use to browse all products, read about
the products, purchase the products and finally track the delivery of the purchase from
the comfort of their own home at any time of the day or night (Rainer, et al., 2015). Refer
to appendix c for example web page. E-commerce lets customers pay quickly and
securely via electronic payment systems such as PayPal and shopping cart checkouts on
websites (Elliott, Rundle-Thiele, & Waller, 2014). Doggy Delish can use e-commerce to
expand by increasing the reach and pool of potential customers (Elliott, Rundle-Thiele, &
Waller, 2014). The above benefits of E-commerce let Doggy Delish achieve their goals in
expanding by creating and fostering relationships with customers and also allows Doggy
Delish to get direct feedback from customers (Elliott, Rundle-Thiele, & Waller, 2014).

5.2. B2B Electronic Commerce


Doggy Delish will not be selling to other businesses, but will be using B2B methods to
purchase inventory items such as tins, lids, cooking utensils, packaging materials and
food. For inventory items Doggy Delish will use the sell-side marketplace model to search
for and find a seller of the items needed. Doggy Delish can then place the order needed
and have it delivered to the door making purchasing faster (Rainer, et al., 2015). The
meat, rice, vegetables and other ingredients used to make the food will be purchased via
a vertical exchange where by Doggy Delish will be linked with other sellers of food, doggy
Delish can then move to a private trading area for future purchases (Rainer, et al., 2015).

5.3. B2C Electronic Commerce


Doggy Delish will have an electronic storefront where customers can search for, read
about, view and purchase products, and then track their purchases for delivery (Rainer,
et al., 2015). As Doggy Delish is a purely online business electronic banking will be used
for all banking making this the cheaper, faster option to banking in person at a branch
(Rainer, et al., 2015). Electronic banking will allow Doggy Delish to receive all payments
from customers and to pay all supplier bills (Rainer, et al., 2015).

5.4. Ethical Issues


The threat to privacy via online purchasing is high due to the ability that electronic
payment systems have in knowing who customers are (Rainer, et al., 2015). Studies have
found that people feel the number one issue in purchasing items off the internet is the
lack of privacy (Stead & Gilbert, 2001). To prevent this being an issue to customers,
Doggy Delish will incorporate an encryption service to provide privacy (Stead & Gilbert,
2001).

Tracking customers via cookies is another ethical privacy issue. Tracking cookies track
customer’s time. Links clicked, names, credit card information, address and other details.
Then this information along with information collected from other sights can be used to
build a profile of a person’s internet and purchasing habits (Stead & Gilbert, 2001). Doggy
Delish will provide an easily accessed privacy policy explaining any information collected
will not be shared with any other party (Stead & Gilbert, 2001).

All though currently there are no plans to employ other people, if Doggy Delish were to
do so and then go on to sack that person if an e-commerce method can do the job instead,
then ethical issues can arise (Rainer, et al., 2015). Retraining of the employee to fill
another role within the business or compensation must be considered if this situation were
to happen (Rainer, et al., 2015).
6. Information Systems within the Organisations

6.1. CBIS Expansion Plan


Doggy Delish is a small, local sole trader business where up until this point all information
had been stored in excel only. Doggy Delish plans to expand to all of Queensland and
therefore needs a CBIS. Doggy Delish should begin the expansion plan by researching
the various software for each system needed checking for compatibility, ease of use and
whether each meets the need of Doggy Delish (Rainer, et al., 2015). During this time
Doggy Delish should conduct surveys to find out what customers deem important to
customer service and website information and layout (Elliott, Rundle-Thiele, & Waller,
2014).

As Doggy Delish is a sole trader the expansion time line is spread out over a year to meet
SMART goals to better succeed at implementing the plan (Elliott, Rundle-Thiele, & Waller,
2014). Once each system and its software has been chosen then installation, testing and
joining to existing systems will begin. This will be done to ensure each system works and
works together (Rainer, et al., 2015). The next step will be to learn each system, during
this time data will also be entered. It will be required that once all data has been entered
into all systems a data cleanse be conducted to check for accuracy and discrepancies. A
complete system check will be conducted once all systems are up and running to check
they all work, collect and share the correct data (Rainer, et al., 2015). At the end of the
year each system will be reviewed as well as a complete system review, this will be done
to check for any failing areas so they can then be fixed to better suit Doggy Delish (Rainer,
et al., 2015).
Work Breakdown Structure

Customer
Relationship Supply Chain
Hardware and Transaction Management Management E-Commerce
Basic Software Processing System System System Logistics System System

Research & select Research & select Research & select Research inventory
hardware TPS system Survey market SCM system needs Survey market

Installation & testing Research & select Installation & testing Research & organise Research & select
Install hardware of TPS system CRM system of SCM system suppliers web developers

Install operating Installation & testing Join to existing Installation & testing Liase with web
system Learn TPS system of CRM system systems & testing of logistics system developer

Installation & testing


Join to existing of barcode scanning
Test hardware Enter data systems & testing Learn SCM system software Create & test website

Join to existing
Data cleansing Evaluate TPS system Learn CRM system Enter data systems & testing Learn website

Evaluate SCM Learn logistics &


Complete system test Create TPS reports Enter data system barcode systems Launch website

Complete system Evaluate CRM Implement electronic


review system Create SCM reports Enter data banking

Evaluate logistics Evaluate e-commerce


Create CRM reports system systems

Create logistics Creat e-commerce


reports reports

Figure 3 Work Breakdown Structure


Figure 4 Expansion Plan
6.2. Reports
$134.25 FIRST QUARTER
$467.10
Doggy Delish Quaterly Sales $738.75
SALES BY PRODUCT

Units Sold Units Sold Units Sold Units Sold


Hungry Puppy
Product Qtr 1 Qtr1 Qtr 2 Qtr 2 Qtr 3 Qtr 3 Qtr 4 Qtr 4
Hungry Puppy $ 467.10 18 $ 596.85 23 $ 700.65 27 $ 778.50 30 $592.00 Hungry Dog
Hungry Dog $ 592.00 16 $ 814.00 22 $ 1,036.00 28 $ 1,184.00 32 Doggy Delish
Doggy Delish $ 637.00 182 $ 710.50 203 $ 766.50 219 $ 805.00 230
$637.00 Doggy Delish-
Doggy Delish- Puppy $ 738.75 197 $ 780.00 208 $ 832.50 222 $ 888.75 237 Puppy
Treat Me $ 134.25 15 $ 161.10 18 $ 161.10 18 $ 232.70 26
$161.10
YEAR ONE SALES BROKEN DOWN BY QUARTERS $596.85 SECOND QUARTER
SALES BY PRODUCT
$780.00
Treat Me Hungry Puppy

Doggy Delish- Puppy Hungry Dog

$814.00 Doggy Delish


Doggy Delish
Doggy Delish-
$710.50 Puppy
Hungry Dog

Hungry Puppy
$161.10 THIRD QUARTER
$700.65 SALES BY PRODUCT
$- $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00
$832.50
Qtr 4 Qtr 3 Qtr 2 Qtr 1 Hungry Puppy

Hungry Dog
UNITS SOLD PER QUARTER
Doggy Delish

250 $1,036.00 Doggy Delish-


$766.50 Puppy
200
$232.70 FOURTH QUARTER
150 $778.50
Units Units Sold Qtr1 SALES BY PRODUCT
Sold 100 $888.75
Units Sold Qtr 2
50 Hungry Puppy

0 Units Sold Qtr 3 Hungry Dog


Hungry Puppy Hungry Dog Doggy Delish Doggy Delish- Treat Me
Puppy Doggy Delish
Units Sold Qtr 4 $1,184.00
Product Sold Doggy Delish-
$805.00 Puppy

Figure 5 Reports

Conclusions
Doggy Delish is a local sole trader business looking to expand into all of Queensland. To
do this Doggy Delish must upgrade from excel to a full computer based information
system to help ensure a successful expansion. With Doggy Delish’s competitive strategy
focusing on differentiation, operational effectiveness and customer- orientation a CBIS
consisting of a transaction processing system, customer relationship management
system and an e-commerce system will help achieve these goals. Doggy Delish should
also focus on strong customer relationships when using social media to ensure loyal
return customers. It is recommended that Doggy Delish install these systems over the
course of a year making sure each system is installed, tested, joined and learnt
successfully. This will give Doggy Delish the best chance of succeeding at their expansion
goal.
Appendix

Appendix A
When operating as a sole trader all business efforts are the responsibility of the owner
which can lead to the owner becoming time poor (Schermerhorn, et al., 2014). Being time
poor can lead to costly mistakes and little success at achieving business goal
(Schermerhorn, et al., 2014). Doggy Delish will be incorporating a bar code scanning
system to speed up the picking/ packing and data transmission process while also
reducing data entry errors (Garg, 2012). Doggy Delish will use the label printer to print
out bar codes. There will be a corresponding bar code to each product and each order
placed will have a bar code. When picking the order, the order sheet will be scanned and
then each product purchased on that order will be scanned. This will automatically remove
the stock item from inventory, update the inventory and process the required stock items
to orders without the need for manual input (Honeywell, 2015) (Garg, 2012).

Appendix B
Customers are the most important entity as without customers there will be no business
to conduct. All business is started via the customer’s order. The order will show the
products the customer wants to purchase. There can be many orders many products, but
only ever one customer to an order. Once an order has been placed by the customer, the
products will be packaged and an order placed with a courier. The courier will collect the
shipment and provide shipping details and tracking details which Doggy Delish provide to
the customer so they may track the delivery of their order. Once an order has been filled
Doggy Delish will restock shelves by contacting the supplier with a purchase order that
contains the supplier products needed to continue making fresh dog food.

Appendix C
This web page has all the information easily accessible to help customers find and
purchase what they need. Customers can easily find social media links and information
on dogs. There is a direct link to order tracking to streamline this process for customers.
A new question will be asked weekly to receive feedback from customers (Elliott, Rundle-
Thiele, & Waller, 2014).

Figure 6 Example Website page for Doggy Delish


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