Barnes

1
Barnes Noble College Bookstores - Via
Northeastern University Bookstore

Lara Henshaw Yijune Wang Jian Zhang
2
Introduction Company Background

• Barnes Noble College Bookstores are a
  Scholastic sister company of Barnes noble
• Universities, community colleges medical law
  schools hire BN C.B to replace traditional
  campus stores
• Sister web site - textbook.Com selling new
  used textbooks
• Recently introduced the eBookstore
• Started in 1973, by Leonard Riggio who brought a
  small struggling college store
• Success story BN C.S turned around by went
  public in 1993
• The company operates more than 400 campus stores

3
Company Missions

• To create excellent campus bookstore, custom
  designed and operated to contribute to education
  and to support the goals of the colleges and
  universities we serve
• To become and integral part of the schools we
  serve
• To excel and continue to innovate in customer
  service
• To conduct our business in accordance with high
  ethical standards
• To train our employees
• To continue to expand our company

4
Business Strategy

• The primary purpose of every college bookstore is
  to have textbooks on the shelf, in the right
  quantities, at the right time
• Continually enhancing the the user experience of
  our traditional on-line stores
• Continuing to expand the product offering within
  our traditional online stores
• Pursuing advertising as well as
  cross-marketing/promotional activities within BN
  C.S properties

5
Business Strategy (continued)

• Leveraging a strong brand name, retail network
  and expertise
• Strengthening alliances with third party web
  sites and content providers
• Pursuing acquisitions, joint ventures and other
  strategic investments and relationships with
  complementary businesses and companies
• Continuing to invest in technology to further
  develop state of the art products and services

6
Organizational Structure
7
Products

• Textbooks
• Trade books
• Confectionary
• Emblematic Clothing merchandise
• House ware
• Stationary supplies
• Computer hardware and software

8
Marketing Channel

• Traditional brick Mortar campus stores
• On line cyber stores
• Customer Cluster
• Students undergraduate, graduate, alumni and
  university college students (evening classes)
• Faculties
• Authors
• On-line catchment
• Non academic campus staff members

9
MIM 3115 Term project

• PART II Description of I/S Organization

10
IT Organization Mission Goals

• Mission to provide the information technology,
  equipment, resources access to all our campus
  stores
• Goals
• To support new store transitions
• To facilitate training development
• To continually develop innovative systems to
  improve efficiency within its campus stores
• To remain committed to future technologies

11
IS Organizational Structure
12
Stages of Growth Assessment - Application
Portfolio

• Minimal level of data utilization sharing
• Productivity, account maintenance and
  administrative activities managed by fragmented
  applications, none of which are integrated
  frequent data re-entry necessitated
• Bottom level administration procedures not
  standardized throughout campus stores
• Existing inventory ordering system (text aid)
  dated established in 1981. Newer versions
  available in use by competitors. No facility
  for historical data storage. Partial trial of new
  system text master scheduled for June
• Supports business objectives despite disjoined
  approach

13
Management Control

• Stand-alone IS department within BN C.S
  headquarters under direct supervision of the
  steering committee. No local expertise with
  campus stores
• No detailed I/S plan
• Strategies fail to reflect or recognize
  individual stores needs in clear conflict with
  companies mission statement
• Committed to investment in future technologies,
  presently a top priority but at what cost?
• Fully recognize how important, and costly,
  technology can be - inline with mission
  statement committed investment

14
I/S Personnel Technology

• Varying levels of expertise from established
  team members to new graduates
• Difficulties in retaining staff members
• Excellent range of productivity tools available
  to staff
• Hardware, networking and office productivity
  software is up to date, operating close to
  industry standards
• All campus stores connected high volume internet
  connection, enhancing communication links
• Service level agreements in place locally but
  no agreement for campus stores
• No I/S development methodology in place

15
User Awareness

• No technical expertise available locally.
  Knowledge acquired on a need to know basis as
  and when
• Majority of campus staff members familiar with
  bottom level functionality of applications
  beyond basic functions only managers are trained
  despite lack of shop-floor availability
• Text aid not user friendly (green screen with
  command line control) majority of staff members
  are computer literate (e.G windows literate) yet
  unable to navigate this system - literacy
  reduced
• Users frustrated by data input repetition and
  lack of accessible historical data

16
IT Stage Assessment Matrix
systems not integrated and lack crucial
functionality
place a high values of I/S strategies
x
Application Portfolio
x
Management Controls
x
IS Personnel Technology
limited knowledge not involved in development
established department good infrastructure
x
User Awareness
Initiation
Contagion
Control
Integration
17
McFarlands Grid Analysis of I/S

• It uses its I/S to conduct sales
  forecast/analysis, order processing, inventory
  management.
• Employees use extensive Intranet resources and
  email system.
• Company develops its own software applications
  and links to external suppliers like NABANCO.
• Company has a integrated
• blend of AS/400,
• client/server (Intranet) and
• PC systems to accomplish
• business objectives.

High
Low
Turnaround
Strategic
High
Support
Factory
Low
Strategic Impact
Strategic Dependence
18
System Hardware Diagram to HQ
Scanner
Scanner
Scanner
Scanner
Scanner
Scanner
Terminal
Terminal Line
Terminal
Terminal
Terminal
Terminal
Terminal
Terminal
Terminal
AS400 in a store
Terminal
Representative scale 3 out 400 Stores
Terminal
AS400 in a store
AS400 in a store
Leasing Line
Leasing Line
Leasing Line
Terminal
Terminal
AS400 in HQ
Leasing Line
Terminal
Terminal
Terminal
19
System Hardware Diagram for campus Stores
20
Platform Architecture
IT
-
Enabled Process Redesign
Individual/workgroup
Competitive Advantage

Financial reporting,
Productivity Decision Quality

• Product information
• Increase produce variety
• Increase communication between HQ campus stores
  
• Increase company competitiveness

• Promotion Scheduling

• Sales forecasting
• Market forecasting
• Financial planning
• Improves productivity

Decrease operating costs

• Product Delivery
• Increase customer satisfaction
• Increase employee satisfaction

Applications
Structure Controls
Integrate campus to campus business information

Centralized control
Planning Controls System
Policies procedures
At HQ
User Interface
Client Server Systems isolated Administrative
stations
Input Devices scanner, keyboard, mouse,
Output Devices printer, monitor
Tools
Platform
Information Reporting Presenting
Information Analysis Modeling
GroupWare
Personal Productivity
Word processor
Microsoft Office,
E
-
mail,
MS. Office
Information management
Communication management
Computer, printer
Networks, router, server



IBM AS400

E
-
mail file transfer service

Database management systems (ORACLE)

LAN

Document management system
21
Main Server - Application Systems

• Price policy System
• Company level price policing - instructs all
  branches
• Exchange system (Gateway)
• Information exchange between stores and main
  server
• Store retrieves info from main server
• Main server retrieves info from stores
• E-mail system

22
Main Server - Application Systems (Contd)

• General Ledger
• Main server logs the activities of each store
• Backup system
• Each store sends backup data to main server, main
  server stores data to the database
• Main server prompts store to send backup data
• Finance system Accounts Receivable/payable
• Merchandise/General Book Control - Purchase
  policy
• SCM - supply chain management (Warehouse control)

23
System in Store - Application Systems (Contd)

• EASI (electronic approval supply imprint) also
  utilizes the Telxon handheld for ordering
  emblematic supplies
• S.O.S system (store operating supplies) again
  utilizes the Telxon handheld for internal
  supplies
• Electronic matching system for merchandise
  receiving invoice approval

24
System in Store - Application Systems (Contd)

• EMS system proprietary system that computerizes
  product pricing, supplier payment invoice
  reconciliation
• Credit card authorization system
• E-mail system enables staff-staff, store-store
  store-headquarter communication

25
An Example of Operation During the Scenario
Selling
2. Pass the code
3. Reply description and price
4. Send confirmation with payment information
1. Scan code
Bar Code Scanner
5. Reply - Transaction done

• 1. Bar code reader scan the bar code on the goods
• 2. Terminal sends the code to relevant system on
  the server (in store)
• 3. Server sends description and price to the
  terminal screen
• 4. Terminal sends buyer payment information
• 5. The server system check payment information
  (e.g. Credit card authorization), update its
  database (the goods is sold), and etc. Then sends
  reply the to the terminal screen

26
I/S Application Portfolio Coverage
BENCHMARK
BEST OF BREED
EXISTING
OVERALL GOAL SETTING
80
75
60
STRATEGIC PLANNING
SERVICE PLANNING
FINANCIAL PLANNING
OPERATION PLANNING
100
65
70
80
75
80
75
80
50
50
80
80
MANAGEMENT CONTROL
Finance
Human Res..
Marketing
Legal
Business Sales
100
60
65
R D
IT Operations
Customer Service
Inventory Ops
80
20
30
80
80
80
60
80
60
80
30
60
50
50
80
50
80
50
70
80
50
50
30
30
25
OPERATIONAL CONTROL
50
Textbook Ordering
Budget Develop.
Campus Affairs
Sales Incentives
Accounting
Billing/Invoicing
Payroll/Wages
Employee Training
Facilities Maint.
Shipping/Handling
Legal Affairs
Employee Records
Sales Planning
Customer Service
Sales Forecasting
Equipment Maint.
100
65
75
Distribution Schedule
Advertising
Trouble Resolution
Facilities Planning
Vendor Relationship
Ops Management
Marketing Plan
Market Research
Merchandise Ordering
Inventory
300
210
190
27
Benefit/beneficiary Matrix for Perceived
Application Impact

• Financial control

• Evaluation performance
• Broader marketing
• Business planning

• Stock Control
• Order processing
• Marketing Sales Scheduling
• Communication (E-mail)

• Reduce error
• Time save
• Increase job quality
• Increase productivity
• Cost Reduction

• Improve inventory/stock
• control nationwide
• Effective scheduling/time
• management
• Timely accurate
• data collection

• Service enhancement
• Customer satisfaction
• Product enhancement
• Decision making and
• forecasting

• Personnel improvement

• Improve job description

• Product line development
• Enhance competitiveness

28
I/S Application Architecture
29
MIM 3115 Term project

• PART III System Description

30
Users Organizational Structure
Headquarters
Store Manager
Campus Stores
Deputy Store Manager
Company Officers
Text Manager
Mech Manager
Trade Manager
Conf Manager
IS Users
IS Users
Sales Assistants
Chart legend
31
Departmental Application Hardware Software

• Hardware
• 2-50 terminals
• Scanners
• 20 PCs

• Software
• Text-aid
• One-STEP
• EASI
• S.O.S
• EMS
• CCAS
• Email System
• Menu System
• Matching System

Scanner
Scanner
Terminal Line
Terminal
Terminal
Terminal
AS400 in a store
PC
HQ
32
BN Product, Service Delivery Information Flow
Overview
Credit Authorization Accounting

• Main Inventory
• Record product demand inventory stock

Customer
Text Aid - Local Inventory

• Warehouse
• Generate invoice

Availability query
33
Merchandise Inventory Control In Depth
General Merchandise record changes Sales
inventory updates
Database Update
Accounts Payable
General Ledger
Text Aid Database
Duplicate Information
At month end
Invoiced Purchases Incoming stock
Stock Ledger
Text Aid
Local Price Stock Changes
Posted Sales transaction information
Inventory Updates
Daily Sales
POS Controller
Pricing Information End of day Sales
Merchandise Control
Accounts Receivable
Sales Audit
Campus Store
Values, tax, codes sent for reconciliation
Headquarter
34
Application System Problems

• At headquarter level
• Inventory Systems fragmented
• New database updates must wait until close of
  business
• Paper receipts acknowledge orders
• Sales auditing process not automated

• At campus level
• Non GUI interface
• Telxon machines difficult to operate
• Lack of help directories
• Lack of personalization features
• Lack of historical adoptions
• No personalized ordering functionality
• Different barcodes
• No flash reports sales activity

35

• System Problems
• Purchasing a lengthy 6 step process
  store?HQ?publisher?HQ? warehouse?store
• Promotions derived from national statistics as
  opposed to local/customized promotions
• All replenishment systems fragmented
• Financial analysis, and expertise, confined to HQ
  consequently at a national level

• Management Support Training Issues
• Management support appears to be at two levels -
• Very committed to new up coming technologies
  e.g ebooks E commerce
• Existing systems of work seem secondary
  attention deficient in last 1.5 years
• No training information at local level
• Training courses in Missouri - expensive for
  less retentive staff members

36
User Proficiency

• At HQ level
• Proficiency of a high standard
• At local Level
• Users only proficient at bottom level
  functionality
• Training on a need to know basis with no formal
  induction or training program
• Only managers formally trained, despite
  inapplicability due to lack of shop floor
  availability inefficient knowledge pass down

37
Goals for Improvement

• Fully utilize electronic data exchange in place
  of paper invoices
• Make text aid an on-line system complete with
  timely updates and help functionality
• Down size functionality of financial, analytical
  forecasting applications for local level
  intelligence
• Make training accessible for all and more time
  efficient by using on-line tutorials
• Utilize knowledge information with in-campus
  knowledge management intranets
• Integrate inventory functionality purchasing,
  receiving distribution

38
Revised IT Stage Assessment Matrix
integrate update systems
x
Application Portfolio
?
x
place a high values of I/S strategies
Management Controls
increase user awareness encourage development
interaction
x
IS Personnel Technology
established department good infrastructure
x
?
User Awareness
Initiation
Contagion
Control
Integration
39
MIM 3115 Term Project

• PART IV Improvement Proposals
• PART V Recommended Solutions

40
Solutions for Improved On campus Application
Software

• Improved text-aid system with GUI interface
  non-looping menu, and add help for all
  systems.This improvement can reduce error,save
  time and increase efficiency and job quality.
• Integrated one-step , EASI , S.O.S , EMS , CCAS
  systems into into one system called Texlon
  handheld deal system.We can enhance the functions
  of the Texlon handheld. This improvement can save
  time , reduce repeat works and increase
  efficiency.

41
Solutions for Improved on campus Application
Software Hardware

• Improved Scanners so they can scan warehouse
  barcode and campus barcode .This improvement can
  avoid the data confused and conflicts, identify
  the data and correct data error
• Put some financial analysis and expertise in
  local stores. This improvement can increase the
  flexibility for business, supply precise
  information and forecasting to HQ and increase
  the customer satisfaction .HQ can periodically
  revise forecasts

42
Solutions for Improved on campus Data Process

• Enhance the power of the local store , so the
  local store can purchase some products (e.g
  regular textbooks) directly from the regular
  publishers and just send reports (include items
  of books,value,code,number of books etc.) to HQ.
  So this purchase process as follow
• This improvements can reduce the time for
  purchase , increase efficiency and reduce not
  necessary purchase cycle to HQ

Store
Regular Publisher
Store
43
Solutions for Improved HQ On Campus working

• Improving the Communication between stores HQ -
  
• Corporate the data updates system and can update
  data (e.g price change , products in stock etc.)
  in a short time.
• Corporate Inventory system and update inventory
  quickly.
• For regular products , make the sales auditing on
  line and automatically.
• Utilize EDI technology, to eliminate chasing
  paper receipts
• These improvements can all data and information
  is precise and identical nationwide

44
Improved Merchandise Inventory Control- In Depth
Invoiced Purchases Incoming stock
General Ledger
Accounts Payable
Local Price Stock changes,
Duplicate Information


,
Inventory Updates
Stock Ledger
Sales Audit
Values,tax,codes send for reconciliation
Daily Sales
Text Aid Data Base
Text Aid
Accounts Receivable
Database updates
Posted sales transaction information
Merchandise record changes sales
inventory updates
POS Controller
These improvement reduce repeat works for
Inventory updates and make the account
system and sales system complete
Pricing Information End of day sales
45
Benefit Quantitative Analysis For Proposed
Solutions, Weight of Improvement matched with IS
Strategy Goals
IS Strategy Goals
Score
Goal 1
Goal 2
Total
Goal 3
Goal4
8
9
9
32
8
6
Improve Text-aid
Integrate Inventory
29
7
7
6
6
10
Improvement Goals
6
28
6
Merge Barcode
7
6
9
Develop local Financial analysis
8
27
5
8
6
5
Revise purchase cycle
6
5
27
5
9
7
Update HQ system
10
10
50
10
10
10
46
Cost Analysis
47
Cost/Benefit Analysis
48
Conclusion

• From this analysis
• update HQ system
• improve TextAid
• are initial, most beneficial improvements that
  should be made.
• This recommendation is made primarily in
  accordance with the overall IS strategies.
  Secondly in alignment with the company business
  strategies, re-addressing the balance between
  investment in technology whilst reflecting
  individual stores needs.