Management Information Systems used by Starbucks
- 1. Management Information Systems By: Divyae Mohan Sherry (1620313) About Starbucks StarbucksCorporationisan Americancoffee companyandcoffeehouse chain.Starbuckswasfoundedin Seattle,Washingtonin1971. Asof November2016, it operates23,768 locationsworldwide. Starbuckslocationsserve hotandcolddrinks,whole-beancoffee,microgroundinstantcoffee knownas VIA,espresso,caffe latte,full- andloose-leaf teasincludingTeavanateaproducts,EvolutionFreshjuices, Frappuccinobeverages,LaBoulange pastries,andsnacksincludingitemssuchaschipsand crackers; some offerings(includingtheirannual fall launchof the PumpkinSpice Latte) are seasonal orspecificto the localityof the store. Information Systems Used StarbucksmainlyusesfourInformationSystems: • TransactionProcessingSystem. • SupplyChainManagementSystem. • DecisionSupportSystem. • CustomerRelationshipManagementSystem.
- 2. Decision Systems Used A decisionsupportsystem(DSS)isasystembasedinformation systemthatsupportsbusinessor organizational decision-makingactivities.DSSsserve the management,operations,andplanninglevels of an organization(usuallymidandhighermanagement) andhelppeople make decisionsabout problemsthatmaybe rapidly changingandnoteasilyspecifiedinadvance—i.e.unstructuredandsemi- structureddecisionproblems.Decisionsupportsystemscanbe eitherfullycomputerized,human- poweredora combinationof both. DSS isa computerprogramapplicationthatanalyzesbusinessdataandpresentsitsothatuser can more easilytake theirbusinessdecisions.StarbucksusesasingularDSSsystematthe parentcompanyin USA: “oracle”.Oracle generatesmonthlyreportsonwhichimportantdecisionsare based.Onlythe parent companyhas the authoritymake decisionsaboutproducts. Starbuckshad builtitspoint-of-sale datawarehouseonOracle technology.Thisfoundation,plusthe Oracle OLAPoptionon Oracle ExadataDatabase Machine,enabledStarbuckstoscale andseamlessly migrate itsexistingOracle-baseddatawarehousetoOracle Exadatato expandinsightandfacilitate decisions,evenwithexplosive growthindataandthe user population. Why Oracle Systems? Starbuckshad builtitspoint-of-sale datawarehouseonOracle technology.Thisfoundation,plusthe Oracle OLAPoptionon Oracle ExadataDatabase Machine,enabledStarbuckstoscale andseamlessly migrate itsexistingOracle-baseddatawarehousetoOracle Exadatato expandinsightandfacilitate decisions,evenwithexplosive growthindataandthe user population. Challenges Create a robust,24/7-available enterprise datawarehouse containingsales,marketing,store management,pointof sale,customerloyalty,andsupplychaindatato drive more informedbusiness decisionsatthe corporate,regional,andstore levels.Improve abilitytorapidlyanalyze andacton customerloyalty,coffeesales,andsupplychaininformationtocontinue todrive innovation.Ensure scalabilitytosupportrapidgrowthindata volume
- 3. Solutions Starbucks usedOracle Exadata Database Machine and Oracle BusinessIntelligence EnterpriseEditionto create a high-performanceenterprisedatawarehouse andbusinessintelligence environmentthat providesanalystsandmanagersatthe branch, field,andcorporate levelswithtimelyandactionable insightintostore andproductperformance,aswell assupplychainoperations. Thishelpedthemgain the abilitytoloadandrefreshdatafromall storesin time forUS East Coaststore openingseachmorning,completingfull loadsinjustfourhours,andensuringservice level agreement compliance. Enabledthe companyto loadpoint-of-saleandcustomerloyaltydatadailyfrom10,000 US storesto the data warehouse andanswermostqueriessuchasinformationoncoffeesales,promotions,andproduct mixesinindividualstoresinfewerthan10 seconds. ImplementedOracle HybridColumnarCompressiontooptimize storage areausage andcompress70 terabytesof rawdata to approximately20terabytesinone case condensing2terabytesof table datato 275 gigabytes,analmost 90% footprintreduction. UtilizedOracle OLAPoption,enabling1-terabyte cubestobe available forfastandsophisticated analytics. Developedafront-enddashboardof keybusinessindicatorsthatenables10,000 usersincludingstore and corporate managersto gainrapidvisibilityintostore-level salesandoperationaldata. Increasedproductanalysts’insightintocustomerpreferencestofacilitatestrategicdevelopmentand productlaunches. Reducedbyhoursthe time that store managersspendonweeklyreports,whilesimultaneously expandinginsightandimprovingdecision-makingacrossthousandsof stores. Oracle Product and Services used by Starbucks Oracle OLAPis a worldclassmultidimensionalanalyticengine embeddedinOracle Database 12c. Oracle OLAPcubesdeliversophisticatedcalculationsusingsimple SQLqueries - producingresultswithspeedof thoughtresponse times.Thisoutstandingqueryperformance maybe leveragedtransparentlywhen deployingOLAPcubesasmaterializedviews –enhancingthe performance of summaryqueriesagainst detail relationaltables.Because Oracle OLAPisembeddedinOracle Database 12c, it allowscentralized managementof dataand businessrulesinasecure,scalable andenterprise-readyplatform.
- 4. Oracle OLAPmakesit easyto produce analyticmeasures,includingtime-seriescalculations,financial models,forecasts,allocations,regressions,andmore.Hundredsof analyticfunctionscanbe easily combinedincustomfunctionstosolve nearlyanyanalyticcalculationrequirement.Oracle OLAPcubes are representedusingastar schemadesign:dimensionviewsformaconstellationaroundthe cube (or fact) view.Thisstandardrepresentationof OLAPdatamakesiteasyfor any reportingandanalysistool or application - includingsophisticatedbusinessintelligence solutions,SQL-baseddevelopmenttools and MicrosoftExcel - to leverage the powerof Oracle OLAPina simple andproductive way. With Oracle OLAP you can: Easilydefine amultidimensionalmodelwithadvancedanalyticcalculations Productivelydeliverrichanalyticstoanyreportingandanalysistool usingsimple SQL Transparentlyimprove summaryqueriesagainsttablesusingcube-basedmaterializedviews Combine OLAPdatawithanyother data inyourOracle Database - includingspatial,datamining, XML, documentsandmore Leverage yourexistingOracle Database expertiseandsoftware investment Oracle Exadata Database Machine The Oracle ExadataDatabase Machine is engineeredtobe the highestperformingandmost available platformforrunningthe Oracle Database.Exadatais a modernarchitecture featuringscale-outindustry- standarddatabase servers,scale-outintelligentstorage servers,andanextremelyhighspeedInfiniBand internal fabricthatconnectsall serversandstorage. Unique software algorithmsinExadataimplement database intelligence instorage,PCIbasedflash,andInfiniBandnetworkingtodeliverhigher performance andcapacityat lowercoststhan otherplatforms. Exadatarunsall typesof database workloadsincludingOnline TransactionProcessing(OLTP),DataWarehousing(DW) andconsolidationof mixedworkloads.Simple andfasttoimplement,the ExadataDatabase Machine powersandprotects your mostimportantdatabasesandisthe ideal foundationforaconsolidateddatabase cloud. Database Machine Benefits Best Data Warehouse platform:Accelerate datawarehouse queryperformance byuptoa factor of 10x or more,and run more queriesconcurrentlyforfasteraccessto business-critical information.
- 5. Best OLTP platform: Accelerate performance of OLTPorientedworkloadsthroughacombinationof large physical flash,ultrahigh-speedflashcompression,andsmartflashcachingalgorithmswhichcan provide millionsof I/Ospersecond. Best Consolidationplatform:Replace isolatedspecial-purposesystemwithaconsolidatedplatform deliveringleadingperformance andscalabilityforall database applications.Exadatahasthe unique abilitytotransparentlyprioritizerequestsastheyflow fromdatabase servers,throughnetworkadapters and networkswitches,tostorage,andback. Oracle Business Intelligence Applications Oracle BusinessIntelligence (BI) Applicationsare complete,prebuiltBIsolutionsthatdeliverintuitive, role-basedintelligence foreveryone inanorganizationfromfrontline employeestoseniormanagement that enable betterdecisions,actions,andbusinessprocesses.Designedforheterogeneous environments,thesesolutionsenableorganizationstogaininsightfromarange of data sourcesand applicationsincludingSiebel,Oracle E-BusinessSuite,PeopleSoft,andthirdpartysystemssuchasSAP Oracle BI Applicationsare builtonthe Oracle BISuite Enterprise Edition,acomprehensive,innovative, and leadingBIplatform.Thisenablesorganizationstorealizethe value of apackagedBI Application, such as rapiddeployment,lowerTCO,andbuilt-inbestpractices,while alsobeingable toveryeasily extendthose solutionstomeettheirspecificneeds,orbuildcompletelycustomBI applications,all on one commonBI architecture. Oracle financial analytics(OFA) Oracle HR analytics(OHRA) Oracle marketinganalytics(OMA) Oracle vertical (industryspecific) analytics Oracle salesanalytics(OSA) Oracle service analytics(OSEA) Oracle supplychainanalytics(OSCA) A word from Starbucks Coffee Company "Our Oracle Exadata-based database warehouse and Oracle Business Intelligence environment deliver detailed insight into point-of-sale data that allows us to innovate and offer our customers better services." – Mike Manzano, Vice President, Analytics and Insight, Starbucks Coffee Company.
- 6. Recommendations Usingquickcommunicationsystemslike SlackandFlockforcommunications IntegratingAnalyticsandBISystemsfromIBMWatson IntegratingCRMslike FreshdeskonMobile Appsandinstores.