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Club It Part 3

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Club IT, Part 3
Student Name
Axia College of University of Phoenix
XBIS 219
Instructor
Date

Opened in 2005, Club IT has enjoyed success in a business, nightclub, where many fail. This is mostly because of the experience of the owners, Ruben Keys and Lisa Tejada. Both Keys and Tejada graduated from college with degrees in Business Administration and during college they both worked in numerous nightclubs as musicians while attending college. Entertainment at Club IT is all music related with live bands on the weekends and a live DJ on the weekdays. Club IT's customers are mostly tech knowledgeable young adults. Smart phones, tablets, and other forms of wireless communications are part of their everyday lives and they are just as likely to shop online as they are to shop at a brick and mortar business. (Appendix D, n.d.) Also, their customers are frequent visitors to social media sites like Facebook and Youtube. Even though the owners have experience their success is impressive because their information systems are either non existent or out of date. The primary goal of information systems is to process data into information and knowledge. Data is raw information that has not been organized or analyzed. Once data has been organized so it has meaning and value it becomes information. Data and knowledge that has been processed to convey understanding, experience, accumulated learning, and expertise as they apply to a business-related problem is considered knowledge. (Rainer & Turban, 2008, p. 6) Club IT needs to make changes to their business so they can better serve the needs of their customers. Their website needs to become more up-to-date, attractive, and useful for Millennials and the Net Generation. Also, Club IT needs to make changes to their business so they can better serve the needs of themselves. They need to develop and use information systems that allow them to conduct business more efficiently. By serving both the needs of their customers and the needs of themselves they can increase the amount of business they conduct and how efficiently they conduct it. By sticking to technologies popular with their customers, they will greatly reduce any chance of customers getting confused or having trouble making adjusting to their new systems on the consumer end. All personnel will play a big role in the development and implementation of the new information systems. By using a joint application system method, or JAD, employees will be able to come together and discuss what the needs are in each area and a user design developed. (Rainer & Turban, 2008, p. 307) This will make training for all much easier and ensure everyone understands all aspects of the new systems. Currently, Club IT is not participating in e-commerce, the process of buying, selling, exchanging, or transferring products, services, or information via computer networks, including the Internet. (Rainer & Turban, 2008, p. 168) They use a dial up internet connection which is slow and their computers are not networked. A high speed Internet connection, or broadband, is needed to make support any changes or developments. According to pcmag.com encyclopedia a broadband connection is one that is considerably faster than an analog connection (dial up). Examples of broadband connections are cable, Wi-Fi, 3G, 4G, and satellite. The addition of a wireless router, which can be picked up at almost any department store, will allow them to provide an internet connection to all of their computers and also network their computers together. With all computers networked together a system can be used that monitors sales at all stations and current inventory levels. To make tickets and merchandise available online Club IT can use an online source that can help them develop a web store. A good source is shopify.com. Adding a link to the online store on the Club IT website will keep the cost of web development low and alleviate many issues that may arise if they were to completely revamp their website. Also, shopify.com has e-commerce marketing tools that can help Club IT reach even more customers. Since many of their customers participate in e-commerce regularly they will make good use of Club IT's web store to purchase tickets. Club IT in turn will be able to better estimate how much business to expect on any particular evening. This estimation will become more accurate with time as they acquire more information. Getting involved with social media is a simple process. Creating accounts with Twitter, Facebook, and Youtube is easy to do and adding links to these pages on their current website is simple. They can use Twitter and Facebook to inform customers of upcoming events and specials or just to interact with customers. Live performances and other events can be recorded and posted on Youtube and used by customers who want to check out the entertainment offered. Youtube can also be used in conjunction with Facebook or Twitter to show customers what they may have missed or what is coming up that they may want to come out and see. Inventory systems range in price and scope. Since Club IT does not have the inventory requirements of a large business or department store, they can get by with a fairly simple inventory system instead of a large system, like SAP. A good choice would be the inventory software that can be purchases through Archom Systems called inFlow. With this software Club IT can keep up with and organize current inventory levels, create orders automatically, and create reports giving them sales information on each item. This information can be used to make sure that the correct amount of stock is kept and time sensitive items, like perishables, are not overstocked. This can greatly cut down on the time they spend managing their inventory and lessons the risk of having too much or too few of any particular item. While the changes may seem vast at first, they are all fairly simple. Since Club IT is closed on Sundays and in the mornings most of these systems can be implemented and learned during those times and everything should be go in just a few weeks, 30 days at most. After the owners acquire a good working knowledge of the system the employees will be trained with the help of the owners. This will ensure everyone is equally knowledgeable of the new information systems. Club IT will need to add at least two more computers to their arsenal. They have one in the office now but need another computer at the front entrance and at the bar area. This way they can process transactions for food and drinks at the bar area or process transactions for merchandise or cover charges at the entrance. All other transactions are done in the office. Each computer will need the ability to print out customer receipts as well. Expensive hardware is not needed to get started so discount hardware purchased from businesses like Tiger.com will suffice. The cost for the additional hardware and software needed will be as follows.
All in one PC = $500 each x 2 = $1000
Receipt printer = $160 each x 3 = $480
Inflow regular edition = $299 per license x 3 = $897
Shopify Web Store = $29 per month
Broadband Internet = $50 per month With a total system cost of less than $2400 this is easily within the reach of Club IT, and the investment should pay for itself within the first few months, if not sooner. The only repetitive costs are the $29 monthly fee for the web store and $50 monthly broadband service, which is minimal considering their importance to modern business. These systems should last Club IT for at least two years, unless there is a drastic change in their business. Progress of the new systems will be monitored weekly for 30 days after implementation, making sure all employees are well versed in the all areas of the systems and also to make sure the system is operating properly. Evaluations of the system will take place 90 and 180 days after it is implemented and annually after that. The evaluations will be analyze how the systems have benefited the business and in what areas the systems need improvement. Overall profit and losses, merchandise sales, customer satisfaction, IT problems, and user friendliness are areas covered during evaluations. Corrective actions, if required, will be based off of this information. Currently, Club IT is enjoying success with only one computer that uses a dial up Internet connection and a website that does not support e-commerce or allow customers to interact with it. Inventory is done the old fashioned way and orders are done by phone as well as off site sales. It is difficult to believe any modern business is successful with such a dated system. Creating and utilizing up-to-date information systems will allow Club IT to continue to be profitable and fuel growth in the future. Their customers are in tune with the modern world, and will respond positively to the changes made and the system will allow Club IT to run leaner, work efficiently, and focus more on the needs of their customers, which will ultimately make them even more successful.

Resources
Rainer, R.K. & Turban, E. (2008). Overview of E-business and E-commerce. Introduction to information systems (2nd ed.). (pp. 168 – 173). Hoboken, NJ: John Wiley & Sons.
Rainer, R.K. & Turban, E. (2008). Information Systems: Concepts and Definitions. Introduction to information systems (2nd ed.). (pp. 6 – 7). Hoboken, NJ: John Wiley & Sons.
Rainer, R.K. & Turban, E. (2008). Joint Application Design. Introduction to information systems (2nd ed.). (p. 307). Hoboken, NJ: John Wiley & Sons.
Rainer, R.K. & Turban, E. (2008). Student Companion Site. Introduction to information systems (2nd ed.). Hoboken, NJ: John Wiley & Sons.
Appendix D. (n.d.) Club IT, Part 2. Retrieved December 11, 2011 from javascript:MAUI.WebCMS.materials.materialLinks('10', 'xbis219_appendix_d.doc', 'IC-Materials', 'XBIS219R2', 'ST', 'True');customTracker('file', 'Appendix D')
Broadband. (n.d.). In pcmag.com encyclopedia. Retrieved December 11, 2011 from http://www.pcmag.com/encyclopedia_term/0%2C2542%2Ct%3Dbroadband&i%3D38932%2C00.asp
Shopify Software. (2011). Shopify.com. Retreived December 11, 2011 from www.shopify.com/tour
Tigerdirect.com. (n.d.). Retreived December 11, 2011 from www.tigerdirect.com
Archon Systems. (2011). Inflow Inventory Software. Retrieved December 11, 2011 from http://www.inflowinventory.com/

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