By Michel Potter
BSA/310 BUSINESS SYSTEMS
February 18, 2013
Kudler Fine Foods is a renowned food store, located in different areas of California. The main focus of the store is to maximize profits by providing quality products at appropriate prices. The firm also wants to satisfy its customers. The company’s latest idea to increase its revenue is to implement a customer rewards program that will track customer purchases and help identify trends that will allow Kudler Fine Foods to tailor its offerings to better satisfy their customers.
In regard to the electronic commerce, the Kudler Fine Foods Sales and Marketing Department is ...view middle of the document...
• Purchasing Department: The Company’s purchasing department is needed to use the data collected by the new program to forecast food orders.
• Sales and Marketing Department: The representatives of sales and marketing department are needed to include as they will be the elementary customer of the program.
• Information Technology Department: The Company’s IT representatives must be concerned in development of requirements as they will help in ascertaining the feasibility of the requirement.
• Loyalty points program: A representative from the loyalty point’s program must be called for to describe new ideas or the experienced ideas.
Assessing the feasibility of the Frequent Shopper Program enhancement is an important step for Kudler Fine Foods to determine the chance of success for the project. A “feasibility study focuses on helping answer the essential question of should we proceed with the proposed project idea?” (Hofstrand & Holz-Clause, 2009). Three specific types of analysis have been used to determine the project feasibility: operational, technical, and economic feasibility.
Operationally, the Frequent Shopper Program should integrate into the existing workflow without any significant problems to operations. The functionality of the new system will require only a small amount of user training so there is no issue with computer competency. There will also be no loss of control by the staff or management; in fact the change will bring an added level of customer interaction which could enhance customer attitude at the point of sale. This change will also not negate or change any existing workflows that are critical to the mission success of operations.
Though the design of the network infrastructure is aging, the addition of a Frequent Shopper Program will have little to no impact on existing capabilities. As long as all of the risks involved in developing the system are identified, the development team should have no problems in designing a successful program. The program will likely be developed as an enhancement to the current POS system so that it will easily integrate with existing key components. Kudler also utilized a POS server, which would be a good staging ground for the Frequent Shopper database.
The economic feasibility has been determined by performing a cost/benefit analysis. The cost /benefit analysis has helped the project team in determining whether or not the proposed program will be beneficial to the company. The project team identified the total expenses of the project by looking at available resources and estimated development costs. An analysis was also performed to determine the total benefit that the new program would be to the organization. It was determined that if the development and implementation of the program were a success, the organization would bring in at least a 16% return on investment.
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