Since the club is currently using a dial-up connection, I would suggest an upgrade to a full T1 connection. A T1 connection can upload and download at a rate of 1500Kbps or 1.5 Mbps (Internet Connection Types, 2011). As this will allow for faster system connections, staying updated with the available upgrade for the information system, faster connections to enhance business transactions, such as ordering supplies. Also, I would recommend adding a Wi-Fi connector to the system to enable customers to use their iPhones, blackberries, or droids while in the club.
A Wi-Fi connection would allow consumers to place an order, which would allow the servers to spend less time running back and forth from the same table. By enabling wireless ordering one person can run the system, like an expeditor, while the other servers are seeing to the speedy delivery of the items. This is not only a benefit for the consumer but also the employees. The return on the investment for this will be significant seeing how this will allow a rise in productivity and at the same time lower costs. .
When staff is to be trained on the wireless ordering system, it should be conducted by a person who is experienced in the function of the system. Although, this will cause an expenditure for the trainer and the pay of the employees, it will be minimal compared to the profitability the system will provide. The training should be offered to the employees when the club is closed, such as during the day. The training should begin with an explanation of the system and then hands-on training to allow the employees to better understand how the system will work.
Next, I would recommend installing a transaction processing system (TPS) and an online transaction processing system (OLTP). A TPS is “a system that captures and processes data generated during the day-to-day transactions, such as a deposit, payment, orders, and an employee’s time” (Shelly, Cashman, & Vermaat, 1999). This would allow the management team to process inventory more efficiently; enhance the calculation of hours an employee has worked; which bills have been paid and which ones still need payment. The online transaction processing system would keep track of the all information related to the club done online, such as purchases from the website, or ordering supplies via the internet. By combining a TPS/OLTP with a Digital Dashboard management would only have to access the dashboard to gain the information collected by the TPS/OLTP.
This leads to focus being put toward adding a digital dashboard to the system. A digital dashboard is the known as the executive dashboard and they are designed to allow “rapid access to timely information and direct access to management reports” (Rainer & Turban, 2009). Through the dashboard Lisa and Rueben will be able to conduct all company m-commerce, and B2B transactions, such as ordering beverages and food supplies. Also, this will allow management to see which bands will be playing at the club and when, which will provide them with enough time to advertise the upcoming event.
To the website an Electronic Point of Sale system (EPoS) should be integrated. By using an EPoS, customers will be able to purchase advance tickets for concerts, hats, shirts, and glasses offered by Club IT. This type of system will allow management to focus on processing the order without worrying about processing a payment. An EPoS will let customers pay for their items, offer them the opportunity to print a receipt, and even add in the taxes and shipping costs automatically (Dawson, 2011). Also, an EPoS will track when inventory of items offered on the website needs to be restocked, which items are most popular, and which items should be discontinued.
Although the price of the purchase, installation, and training of the above mentioned systems come at a high upfront cost, the advantages to increase customer satisfaction, profits, and productivity are innumerable. For example, since there is not any indicators the wireless ordering system investment would cause a negative cash flow, meticulous projections should be based on concrete estimates of the expected cost of the system, cost of training employees, cost of maintenance, and the expected rise of income from the upgrade. When an estimated time to the foreseeable increased profits for Club IT is within three months. Lisa and Rueben will be able to plan the expansion of the company to a second Club IT site.
Another advantage to the mentioned systems is the cost of print invoices will be reduced, and the use of an accountant will be reduced. By using these integrated systems, management will be able to track all the investments and expenditures of Club IT. This will allow Lisa and Rueben to keep more accurate financial records, which in turn will lessen the need for an audit. Although, the club will still need to perform an audit, it will not have to be done as frequently unless management would prefer to continue them as usual.
As with any expenditure estimates should be gotten for the systems wanted for the club. Although some systems will have to be bought others can be leased. For example, the EPoS system can be lease through another company, such as Ticketmaster.com. This will allow the owners to try out the system without actually spending the added cost of implementing the system onto the club’s website. However, there will still be a minimal cost for the use of the system through Ticketmaster. Once they have tried the system and if they like how it functions; then they can buy the system and integrate it to the website at that time.
In addition, the owners should look to the return on investment (ROI) of the systems before implementing them. As explained on Investopedia, “To calculate it, you simply take the gain of an investment, subtract the cost of the investment, and divide the total by the cost of the investment (2011). So the owners of Club IT need to calculate the needed investment for the upgrading, purchasing, installation, and training of the systems, before implementation is brought to the foreground.
If their investment in the improvements is $25,000, then they will have to increase their estimated time to foreseeable profits from three months to six months. Since Club IT has seen success without appropriate information system technology, they will see greatly enhanced success with the recommended information systems in place. Through the Wi-Fi system the club will increase productivity and lower operating costs, such as the costs of labor. By using the EPoS ticket sales will increase by at least doubling advanced ticket sales. Finally, by using a digital dashboard management will be able to access and manage all aspects of operating Club IT.
It is in my opinion, Club It would benefit from the upgrading, purchasing, installing, and user training of the TPS/OLTP, digital dashboard, T1 internet connection, and EPoS systems. Not only will they enhance the customers’ experience while at Club IT, but also they will enhance customers’ experience with the Club IT website. When customers are happy and satisfied with a company they will spread the news. Most often they will do this by word of mouth. However, since the demographic of Club IT is of the technology era, they are more likely to share their experiences through email, on social networks, and through blogs. Although, Club IT does have advertising Lisa and Rueben know that the best advertisement is that of a satisfied customer. This will generate increased clientele, which in turn will mean increased profits for the club.