Systems

Executive Summary

In this project we examine a business system; TGIFriday’s and a computer information system; Customer Relationship Management (CRM). We made created an Input- Processing – Output model the help identify components of TGIFriday’s. We found and measured goals and major views. We also found obstacles and measured the complexity of the restaurant through a mathematical formula. We explained and learned a lot about CRM and explained how it supports business activity. We described trends and created a information systems model to explain the structure of the system. We also listed and explained attributes of CRM.

Part 1: Systems Project

Introduction

In this project we will examine TGIFriday’s and breakdown the components of the business and look at it as a whole. A system is a goal-driven set of elements and their purposely-oriented, structured relations that produce measurable results outside the system, despite obstacles. We found by completing this project how TGIFriday’s accurately meets this definition.

Output Model for TGIFriday’s

Goal of TGIFriday’s

The goal of our business system is to allocate our resources in a way to maximize profits and make sure that we satisfy anyone and everyone that comes into our restaurant. If we are able to keep track of our inventory, shipping orders and schedules from the time it enters our system to the time we serve it to the customer, we are sure to maintain a returning and reliable customer base. Also, if we can keep a strong base, we will be able to profit off of all of the resources we have and not let any go to waste. This is critical, especially in the restaurant business because we are dealing with food, which has a tendency to go bad if it isn’t prepared in a timely fashion; if we are able to use it all, we will maximize our profits, thus making our restaurant a very prosperous business. Also, we want to make sure that we please the customers that enter our establishment. We need to make sure that the food is not only prepared well, but displayed to the best of our ability, to ensure that all who come and spend their money at our place enjoys the experience, so they will not only come back, but market our restaurant as they explain to friends of the wonderful time they had. If we can succeed in reaching the goal of this business system we will not vanish in this very competitive industry, but rise to the top!

Business System Result

A measurable result of this business system would be to double our sales revenue. This would be an appropriate goal because if we execute our business system correctly by allocating resources to maximize profits and satisfying everyone that visits our restaurant, we should be able to reach this goal, if not exceed it. If all goes well and those involved stay on top of things, making sure everyone is doing their part to help out, then we undoubtedly be able to reach our goal.

There are many ways we can monitor our progress. One that sticks out more than others however, is periodic systematic checks. This way we will always be absolutely sure that things are running smoothly and if they aren’t, then we will be able to find the source that is causing the problem and deal with it in a timely fashion. These checks will be made throughout the business system, for example, making sure the food that is ordered is accounted for when it is being loaded off the truck. Another checkpoint could be double checking the customers, giving them the option to fill out surveys on how good the service was.

With this business system, this business goal cannot fail. If there is a problem it will be taken care of before it affects any of the operation. T.G.I Friday’s will double, if not triple its sales revenue because of this business plan.

Three Major views of TGIFriday’s

The business system that we have chosen is TGIFriday’s. It is an extremely popular restaurant located on West Main. The prices and food are excellent. There are a couple of views for this business system that can be broken down and examined. We believe the three most important views are the human resource view, the product view, and the legal view. The human resource view is important for this business system because you are constantly dealing with customers. You need to choose employees who are going to treat the customers with respect. They must be able to handle complaints made by the customers as well. Human resource management is the process of hiring the most qualified applicants. You have to have a management system that is going to keep the business organized and clean. Managers must be able to facilitate the immigration process. Another important view for this business system is the product view. The only reason consumers are going to come to this restaurant is for their food products. Without good food, there are no customers. You want to keep an image where your food is satisfactory and you never come across food poisoning incidents. Right now this company is advertising for their three course meal where you get drink, appetizer, meal, and dessert for a set price. You want people to know that your product is good so they will consume there. Many college students also go there to consume alcohol as well as food. The third important view we chose is the legal view. This is important because you are going to be dealing with all sorts of people and foods which can be cooked wrong or contain food poisoning. You need to have a legal view so you can be prepared in case there is a lawsuit followed against you. Some people will do anything to make a buck and that includes lawsuits. All you have to do is think of McDonalds and them getting sued for having hot coffee. You must have a proper legal system to make sure your back is covered.

Relationships of a major view of TGIFriday’s

We believe that the most important view for this business system is the legal view. There are many important characteristics for this view. The first aspect is the customer. When they come to this restaurant, they have rights to complain and/or file a lawsuit against them. They have the power to make or break your company. You must have a legal system to protect you from such incidents. This is a relationship between the owners and customers. It can be a good relationship or it can be a bad relationship. The customers are spending their money and are expected to receive good food and to be treated respectfully in that the owner can make a profit. Sometimes the owner can not control how the food is prepared, therefore must face complaints by the consumer.

Another relationship for the legal view is between the management and employees. The human resource department is responsible for hiring the most qualified applicants and the ones who are going to treat the customers the best. The managers must also treat their employees with the same attitude and respect that they give to their customers. The employees have the same rights as customers so a legal system needs to be in place. They must be able to function according to all state and federal laws.

There is also a relationship between the customers, the employees, the ownership and the legal system. It completes one giant square. When one of the corners is affected, another corner feels the effect. When a customer is dissatisfied, the owner is going to know about it and may lose them as a customer which in turns hurts the employees because then they lose someone to serve and that creates one less need for another manager. The legal view is very important to this business system because you need to be careful when ever you are dealing with people because you are selling them a product that could harm them.

Obstacles of TGIFriday’s

TGIFriday’s and other similar businesses have many obstacles they have to deal with every day. Some obstacles TGIFridays has to deal with is: making enough profit, satisfying the customers, getting along with co-workers, managers, owners or customers, trying to not to make any mistakes in the food or any other part of a customers dining experience. These obstacles are common and crucial to the success of a business like TGIFriday’s. The restaurant needs to make a profit or of course they wouldn’t be able to function. Co-workers, managers, owners and customers need to get along or nothing could get done, customers wouldn’t come to a place they didn’t feel comfortable at, people seeking jobs wouldn’t want to work in a dysfunctional workplace and managers and owners wouldn’t make a profit or be happy themselves. Mistakes do happen but its an obstacle each and everyday to try to make sure one doesn’t happen. Obstacles are good and bad and can make or break a business.

Complexity of TGIFriday’s

We found that there are 14 elements of our view of TGIFriday’s. They are: customers, the restaurant, complaints/problems, legal system, money, expectations, management, employees, human resource department, hiring new employees, respect, state and federal laws, ownership, dissatisfaction/satisfaction.

The formula for relation ships is:

r = ( ( e – 1 ) e ) / 2

r = the number of relationships

e = the number of elements

We plug in the numbers ( ( 14 – 1 ) 14 ) / 2 = 91

Therefore there are 91 relationships

The formula for the number of states is:

s = 2 ^ e

s = the number of states

e = the number of elements

We plug in the numbers 2 ^ 14 = 16384

Therefore there are 16,384 states.

This data proves how complicated even one single issue can get. We choose a fairly common business and a view every restaurant business has to deal with. We learned how much every business has to deal with on a day to day business.

Part 2: Information Systems

Introduction

In this project we explore and identify the applications of CRM, we studied trends of it, we created a model of the CRM system and we described attributes of it. A system is a goal-driven set of elements and their purposely-oriented, structured relations that produce measurable results outside the system, despite obstacles. We learned many things about CRM and how it is a good example of system.

CRM Computer Information System Applications

A well-performing Customer Relationship Management (CRM) program has become vital for nearly any company that conducts sales. A CRM supports business activities mainly in the sales, collections, marketing, support, PR, business development, and management departments but nearly any branch can benefit form its use.

Usually CRMs are integrated into a company’s email system. Thus, nearly all communication, external or internal, can be done through the CRM just like using email.

CRM systems are mainly used to aid the sales department. Sales departments use these tools to maintain timely and thorough communication with customers, past, present, and future. Normally sales teams will first, initiate correspondence with a potential client. Whether it be by email, phone, post, telegram, or in person, sales representatives are required to record the details of the correspondence in the record program that is included in most CRMs. If the correspondence is done by email then the company, contact, and communication is automatically saved indefinitely in the database. This communication is then viewable by all sales representatives and anyone else with the authority to access that particular thread. This ensures that no two people will send a message on the same topic to the same person. This greatly reduces the amount of repeat enquiries and reduces “junk mail.” Imagine a salesperson receiving an order from a customer in the days before CRM. Now imagine that the order was mailed and addressed to the sales contact personally within the company. Imagine that that particular salesperson just started a two week when the order was received. No on else in the office would be likely to open it. The sales order would sit while the customer became impatient. Now with CRM the correspondence could be received by anyone in the office and processed immediately, saving a lot of frustration for both parties.

This same basic principle can be used by any other department as well. For example, records of complaints could be searched by the development department to help them to determine design changes that should be made. Collections could also use the CRM to ensure that customers receive all relevant data in relation to payments and processing. Support could immediately access all communications with a particular client in need of help to determine past service and the best approach to a new problem.

The main ways CRMs support business activities include:

Saves all records of correspondence
Searchable
Categorizes contacts
Reduces response delay
Automated
Saved at a central location

Trends of CRM

CRM, as we know it today, began in the early 1980s when companies turned to databases in order to conduct their marketing and advertising. They sheer volume of information that needed to be added to keep customer information up to date and the cost of the programs enabled only the companies with the most recourses to implement the software. As the programs became more automated and the price fell, it became possible for smaller companies to purchase the software, and the usage rate has really taken off from there. It proved to be an invaluable tool to monitor and predict ways to better serve customers. Frequent flier programs and credit card bonuses are the children of CRM innovation and customer driven sales. The history of CRM could be summed up by its pivotal role of transforming sales into a customer-driven sales strategy where companies don’t offer products but first ask customers what they want.

The future of CRM will be lead by companies like SAP who are taking steps to integrate CRM with other business processes to offer package solutions to customers IT needs. The future will embrace vertically structured solutions focused on particular industries as opposed to generic, across the board programs.

CRM Information Systems Model

CRM System Attributes

In CRM systems the most important system attributes are consistency and accessibility. CRMs must be designed keeping in mind that information must be quickly maintainable. When sellers are contacted by their customers, sellers must be able to immediately identify what products that client has purchased. Customers want to feel special. This façade can be difficult to maintain with large sales departments. CRMs allow any member of the sales team to treat the customer like they are known and appreciated. A sale can easily be lost if a customer must be put on hold because a computer crashed due to a taxing CRM system that couldn’t be supported with the budget cuts to the sales department. CRMs must also have consistent information. If CRM manufacturers want to make their programs more accessible they must understand that every company can not afford to have IT personnel on hand all the time so the system must be easy to fix and troubleshoot. Therefore the systems must consistently provide accurate information.

Katriina Ketola’s project assessment

This project was the longest project we have completed so far into the semester and also the project that we learned the most. It was fun but took a lot of work to complete and research each part. The first part of the project a little more fun than the second part because it was fun to get to know a little bit more about a business such as TGIFriday’s. It’s a place I have been and enjoy and now I appreciate all that goes into each and every task completed. My favorite part of this part was making the business model. The second part of the project was very interesting and was more information oriented since CRM is a information system. I know my group and I learned a lot from this project and are proud of all the time and work we put in to it.

Jordan Hopkin’s project assessment

The first part of the two different projects was really fun because it allowed us to be a lot more creative instead of being all mechanical like some of the other projects we have done in the past. In this project I learned that there are many more aspects to a business system than I originally thought. The hardest part of this was coming up with a measurable result. As a company you have to know that you are going to face many obstacles along the way and have to know how to challenge them so that you can accomplish your goal. I will use the knowledge from this project if I open or manage a small business in the future. I must be able to understand the different views for a business like the production view, the legal view, the product view, and the human resource view, etc. You must have the adequate resources for each view in case a situation comes about you where you need a defense or if you want to improve your sales. I will not use this knowledge from this particular project in my social life. The only way that would happen is if I allow my friends to get involved with my business system. These knowledge and skills are very important to me because I need to know all that I can about the aspects to a small business that I have not already learned in past courses taught in school.

Stephen Bahr project assessment

After completing the assignments, I realized how important and vital business systems were, not only to the companies, but the shareholders as well. The systems used, often will have a great effect on the business and employees at hand as well as those that interact with the business (i.e. the customers). Depending on how well your system works as well as how well you manage your system, you can benefit your business in many ways; making it more profitable being the most beneficial.

It wasn’t until I did these projects that made me realize how many industries must actually have a business system. I would think that any good standing restaurant, or business must have one because of the competition today, and if they didn’t, I wouldn’t expect them to last much longer into the future. Also, I realized how many different business systems there must be. There is a vast majority of different industries, which should make for a vast majority of different business systems.

Like I said earlier, in order for your business to be productive and profitable this day in age, you must have a business system. They can be very beneficial to your business no matter what it is. Business systems, when executed with care, create order and organization, which is vital to business throughout every industry. Without a well maintained business system, your company will fail. This project let me fully understand the true importance of these systems.

Cory Radel’s project assessment

These two projects helped me to recognize systems that are at work both above and below the surface in any business process. There are infinite systems at work all around us and it was helpful to take a step back and analyze two that we otherwise may have taken for granted.

In the first portion of the project we analyzed some key systems that exist in a T.G.I. Friday’s restaurant. We discovered that even in a restaurant there are too many systems at work to even list. Systems that are functioning properly in the restaurant industry help to keep food fresh and customers happy.

In the second portion of the project we took a look at a CRM system. We learned how CRMs have revolutionized sales and switch the market from sellers to buyers. Now sellers are forced to tailor their offer to meet a customers need as opposed to the former, take-it-or-leave-it policy. CRMs are in use in every large company and should be in use in any company that conducts sales. This project was a good opportunity to get a look inside a CRM system. Hopefully we will have a better appreciation of them when we use them.

References

TGIFridays.com

Rienzo Thomas and Targowski Andrew 2004 Enterprise Information Infrastructure

Roberts, Lucy P. "The History of CRM". 2004-2005 Evaluseek Publishing. Accessed 25 Feb. 2006. < http://ezinearticles.com/?The-History-of-CRM----Moving-Beyond- the-Customer-Database&id=6975>.

Sims, David. “The Future of CRM—Same, but Different”. Accessed 25 Feb 2006. <http://www.crmguru.com/content/features/sims06.html>