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The STAR organization has only done business locally in Leeds in the United Kingdom, and seeks to expand its business on a global scale. To make this happen, STAR would require developing a competitive strategy which in due course helps the organization in achieving a competitive advantage. This report will touch on how an information system can greatly benefit STAR in terms of global expansion and change the dynamics of running businesses efficiently, as well as the impact of having it. Without a doubt, any new implementations to any organization will have its advantages and disadvantages, but the latter can be kept to the minimum, or even eliminated, ...view middle of the document...
1.1 Changing the way STAR sells
According to eSalesTrack (undated), “the invention of faster internet connectivity and powerful online tools has resulted in a new commerce arena better known as e-commerce”. Most businesses have utilized the World Wide Web in making businesses and performing digitally enabled transactions. The figure below depicts the growth of e-commerce from 1995 to the predicted future:
Fig 1.2 – Growth of e-commerce
As shown in Fig 1.2, retail e-commerce revenues grew from 15% to 25% every year from 1995 to 2008, until the recession which lasted on 2009. In 2010, e-commerce revenues grow again at a projected 12% each year. As a result, it is highly recommended that STAR takes this step as well – to use the Internet to transact business. With e-commerce, it not only benefits the organization, but also the consumers as well. STAR can look forward to reaping these benefits as follows:
* Since the Internet is readily available anywhere, e-commerce provides more reach to customers. Moreover, the shop is considered to be selling 24/7.
* It is easy to set up and manage an e-commerce business, and there is no need of physical company set-ups. It can be accomplished by an in-house team with a web designer and a web developer, or can be outsourced to a third-party company.
* Customer satisfaction: Apart from providing consumers with a high information density, internet technologies will permit STAR to monitor the consumers’ buying habits and interests. Eventually, they can adapt their offer to these consumers’ needs and keep the on-going relationship with them.
* Disintermediation: The most important aspect in e-commerce, as it reduces costs greatly. Fig 1.3 below depicts this:
Fig 1.3 – Benefits of disintermediation
From Fig 1.3, it is significant to remove layers so as to lower the final cost to the consumers. Each middleman will add to the final cost of the shoe, but with e-commerce, STAR is able to reach consumers without these several intermediary layers. With that, STAR will gain a competitive advantage in the market as the product prices are kept as low as possible.
1.2 Pursuit of geographical regions
In this portion, it is a continuation to the e-commerce business as to how STAR could deliver their products to customers after they had placed orders online. The business process of an online order fulfillment is shown in Fig 1.4 below, whereby Sales, Accounting and Manufacturing & Production departments are involved.
Fig 1.4 – Order fulfillment process
With reference to Fig 1.4, to satisfy a customer order involves close coordination of these departments. To execute such business processes across STAR, I will recommend the means of an enterprise application, a system involved in linking the enterprise. It consists of four different applications – Enterprise Systems (ES), Supply Chain Management Systems (SCMS), Customer Relationship Management Systems (CRMS) and...