Information Technology used in Barnes & Noble
Marco Colon
BIS320
March 18, 2013
Keyaan Williams

Information Technology used in Barnes & Noble
Thesis Statement
Barnes & Noble is the nation’s largest book seller and operates one of the top online bookselling operations controlling a solid 30% of the e-book market. However, because ecommerce markets are highly competitive, Barnes & Noble needs to develop a more effective strategy in order to gain customer’s loyalty and maintain the company’s image. As more people turn to e-books, Barnes & Noble needs new IT tools that access and process information faster and provide internal and external information reports that can help the company track processes with more detail. Because the internet has now surpassed all other communication methods, Barnes & Noble has implemented different platforms and collaboration tools to help improve the way they interact with retailers and customers.

Introduction
Barnes & Noble utilizes information technology to develop and use databases to keep track of the products that it sells as well as to track information related to customer loyalty and customer information. The databases are used to extract customer information to communicate with customers via various means of communication technologies via the internet. Barnes & Noble also uses databases to track internal information and internal processes as they relate to tracking sales statistics and product stocking requirement. Internal communications are also performed through the use of an intranet network that is accessible only to employees. These company functions are all possible through the use of hardware and software technologies to support its operations. Because Amazon is slowly gaining an edge in overall book sales, Barnes and Noble needs to evaluate the use of IT processes to ensure that its use of databases, and the software and hardware systems that it currently uses be up to date with market demands in order to ensure that it keeps it market share.
Barnes and Noble’s Mission and Objectives

A. Mission Statement This mission statement is directly quoted from the Barnes and Noble Website ("BN: Our Mission," 2013) Our mission is to operate the best specialty retail business in America, regardless of the product we sell. Because the product we sell is books, our aspirations must be consistent with the promise and the ideals of the volumes which line our shelves. To say that our mission exists independent of the product we sell is to demean the importance and the distinction of being booksellers. As booksellers we are determined to be the very best in our business, regardless of the size, pedigree or inclinations of our competitors. We will continue to bring our industry nuances of style and approaches to bookselling which are consistent with our evolving aspirations. Above all, we expect to be a credit to the communities we serve, a valuable resource to our customers, and a place where our dedicated booksellers can grow and prosper. Toward this end we will not only listen to our customers and booksellers but embrace the idea that the Company is at their service. * 1. Mission statement highlights: a. Be best retailer in America b. Mission statement is intertwined with the product that they sell c. Be the best business they can be regardless of what others are doing d. Ever changing based on the needs of the book selling climate e. Want to benefit the communities that they serve f. Benefit both customers and employees g. Listen to both the employee and customer to make it the best company possible * Their mission statement reflects a corporate desire to provide a best in class customer experience, tap, click, and mortar platforms second to none
B. Company Objectives * These objectives are directly quoted from the 2012 Annual Report ("Barnes & Noble Annual Report 2012," 2012). 1. continue to invest in the digital business to fuel NOOK and content sales; 2. use its infrastructure to deliver digital content to customers wirelessly and online; 3. utilize the strong Barnes & Noble brand and retail footprint to attract customers to its multi-channel platform; and 4. expand its distribution channels through strategic partnerships with world-class hardware and software companies and retail partners * 2. Important objective highlights: a. Continue to invest in new digital reading technology b. Develop digital content c. Use Barnes and Noble brand to promote their other reading venues d. Deliver a high quality product through partnerships with hardware and software companies

How Barnes and Noble uses Databases and Potential Database Issues Use of Databases
Customer loyalty information is stored in databases, to allow automatic emailing of offers to customers. a. Barnes and Noble rely on current customer’s to continue to shop at their stores. It is important that they provide occasional offers to maintain current customers and attract new customers at the same time. b. Barnes and Noble need to maintain an adequate amount of books on-hand at all times. c. Databases help Barnes and Noble determine which books are selling, and which are not. d. The information includes, but is not limited to; name, address, phone number, and in some cases stored bank account information.
Tracking of how many of each book remains in stock based on location.

Potential Database Issues

* 1. The risk of customer information being compromised or sold. a. After Border’s bookstore filed bankruptcy, their customer loyalty database was sold to Barnes and Noble. b. Personal email account information can be obtained, causing fraudulent emails soliciting money from loyal customers.

Database crashes a. Databases should have a back-up file, in the event that the database crashes, thus losing all of its information, which would be nearly impossible to re-create. b. Periodically run anti-virus software updates in order to keep the integrity of the databases in-tact

Hardware and Software used at Barnes & Noble
IBM Netezza data warehouse appliances * 1. Unique corporate and supplier structure required flexible hardware solution that would accommodate both parties’ business needs. * 2. Web based sales and inventory portal allowing users to take data from pre-optimized data appliance and optimize inventory, avoid returns and costly stock outs (SmarterQuestions, 2012).
Analytical software has it limits with Microsoft SQL Server 1. Their current solution hit a wall and couldn’t be taken further. 2. Ultimately found a better solution which helped publishers big and small see when inventory was sold, returned, and better control costs while providing B&N customers with access to 20 million SKU’s (SmarterQuestions, 2012).
Communication Technology used by Barnes & Noble In today’s technological age Barnes & Noble has had to adopt new communication technologies to maintain contact and a constant flow of information with its customers and within the company. As the nation’s largest bookseller (www.barnesandnoble.com), one way that it can maintain that edge is by keeping up with the newest communications methods that are proving to be the most successful across different industries. Some of those methods include the use of the internet to disseminate their emails and e-newsletter as well as to promote their goods via Facebook and Twitter and the use of intranet systems within the company to manage and share data in company databases and improve intra-company communications and processes.

A. Internet The internet has now surpassed all other communication methods and it is now considered the most the most important communication technology. The primary reason for this is that the internet has a multitude of options for users; a person can communicate one-on-one or with potentially millions of people. This is possible because communications transmissions can be via text, video, images, sound, etc. and it can happen almost instantaneously. A message can be spread within seconds from one part of the world to the other.

1. E-Newsletter Upon becoming a Barnes & Noble customer, either at a brick and mortar location or via their e-store, a customer’s email address can be used to send company newsletters and special promotions. 2. Facebook Customers can become friends or fans of their Facebook page. Through this communications means, Barnes & Noble announces promotions, new products and services, company news that are relevant to consumers, etc. They also use this medium to communicate with its company worldwide. 3. Twitter Sometimes the company has the need to send quick, short messages to different market segments or customer bases. By managing several different Twitter accounts Barnes & Noble can target its followers by sending messages only to the customers that would be receptive to the message. Some of the Twitter accounts that Barnes & Noble has are BNBuzz, BNKids, BNStudio, BNTweetDeals and BNBookClub. B. Intranet The intranet is the network within the company that is accessible only by employees of the company to track information via databases and to communicate efficiently within the company. The use of an intranet system within the company can help gain understanding of what is going on in “real time” in the organization.

1. Database Management and Access Barnes & Noble primarily sells books but it also sells and array of other products. Tracking such products, from the time they are ordered until they ship requires a data management system that allows company employees to understand all the processes involved in the selling and shipping of products. The company database can also be useful to track employee information, work hours, performance, etc. 2. Internal Communications
The overall company management benefits from internal communications that are fast and instantaneous. Having the capacity to communicate without having to attend a multitude of meetings can make a company more efficient and more successful at managing multiple groups and their processes.
How Barnes and Noble uses Internet and Collaborate tools

Barnes & Noble uses both internal and external collaborative tools through the use of the Internet and intranet networks to perform crucial company processes. Through the use of new innovative collaborative technologies, companies are sharing and controlling information to connect and work in partnership with both employees and customers. These collaborative tools not only allow for the collection of information in one useful database but it also allows employees and customers who need information to access such knowledge. The technology used to access intranet and Internet collaborative tools is known as Web 2.0. Web 2.0 is not one specific type of application but rather a collection of multiple new functionalities that allow a user, via the use of a browser, to use the applications. Kroenke (2012) explains: “Vendors can now perform sophisticated operations in a browser, with no program download or installation required” (p. 184).
One example of this is Skype, a collaborative tool that Barnes & Noble uses to collaborate with employees across the country. Through the use of a browser on the Internet, Barnes & Noble employees can launch the Skype application to have live communication sessions with other employees. The employees can communicate either by voice with a use of a microphone, by video by using a webcam or by typing instant messages. New Skype applications like file sharing and video conferencing are also becoming useful tools for company operations and processes.
Another example of a collaborative tool that Barnes & Noble uses through the Internet is e-mail. Although Skype is an efficient way to communicate, the use of e-mail can be essential when communications follow-up is requires and to confirm in writing what transpired during a Skype session. Lastly, Barnes & Noble is using the Internet for mass collaboration, which includes Blogs, Facebook, and Twitter. Even though the jury is still out regarding the effectiveness of these platforms as marketing tools, Barnes & Noble is putting great importance on these type of marketing strategies as part of their business operations.

Barnes and Noble Utilizes Technology to Meet its Objectives

Barnes & Noble relies heavily on different forms of technology to run its day to day operations. Internally they house an intranet site for different working groups which include contact information, Wikis, project information by groups, all stored on shared drives with secure access and a user level rights system in place. Software is homegrown, on the backend and is written in C++ which is a “programming language giving the programmers a way to add object oriented programming to C” (Bolton, 2013) C is a programming language for Microsoft Windows, Unix, and Linux operating systems. Barnes & Noble also uses MySQL (sql= standard query language) for it DBMS (data base management system) According to Inan and Juita (2011) “advantages of using my MySQL are speed, easy to use, support standard SQL query capability, level of connectivity and high security portability, pricing and availability, and code - the code is open source and distribution ” (p. 178-179). The programming and other information technology systems in place are supported by a huge "digital services division" whose customers are other tech teams in the company. In terms of collaboration software they are fervent users of Skype and email across the company to collaborate and work on projects. The use of social media is another big way that Barnes & Noble gets their marcom (marketing message) out. Offering free coupons on Twitter and Facebook is one example. Sending out an “eNewsletter sending you news via your email address when you are registered to their website” ("Telecommunications Technology", 2011) is another form telecommunication technology used by the company. To keep up with the technology of today and stay competitive in an ever changing market, Barnes & Noble engineers came up with the Nook. The Nook is an eReader that allows you to read books electronically in a tablet style device. With the built in WiFI the Nook will also allow you to surf the web and receive emails supporting Microsoft Exchange Active Sync, Gmail, Yahoo!, and Hotmail. These are just some examples of how Barnes & Noble has used technology both internally and with its release of new products to meet the business needs of today.

Conclusion
In closing the use of information technology in business is essential to the success of any company both small and large. In the age of social media and the Internet, the consumer has become more knowledgeable about the products they choose to purchase and the stores they choose to frequent. Barnes & Noble has managed to stay on the forefront utilizing such social media sites like Twitter and Facebook. They realize that they will hit a larger demographic of people with their marketing message by using the social media available. The ability to manage and correctly identify the current database created for Barnes & Noble has helped optimize their business practices boosting sales and customer service. The use of IBM Netezza data warehouse appliances has given Barnes & Noble a flexible hardware solution that has helped create web based portals to accommodate the growing business needs.

References
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