it strategy updated

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Machakos Institute of Technology - Machakos *

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J17

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Information Systems

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Nov 24, 2024

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Part 1: develop an IT strategic plan. Introduction : In this project, we selected to conduct a comprehensive examination of a leading organization. We have chosen Starbucks, and we are going to discuss IT strategies that can be used to achieve Starbucks' aims and goals. We will assess Starbucks' current IT capabilities and identify the approaches and technologies that will assist the organization in meeting its goals. It will happen once we examine how technologies improve the consumer experience, innovation, and business operations. Starbucks' IT governance will also be completed, which means processes, policies, and frameworks will be implemented to guarantee that IT investments are aligned with business goals. Operational IT governance will assist this organization in risk management, cost optimization, and operational efficiency. Background of the Company Location: its main location is in Washington, Seattle, It is the world's leading retailer and marketer of specialty coffee. We chose the Fujairah city center branch in the UAE. Size: This organization has roots in 83 countries and over 31,000 locations. The Fujairah branch is around 1780 square feet. Products: Their products include premium coffee (high quality, handcrafted, roasted, and finest priced), tea, beverages, and a wide range of fresh foodstuffs. They also license their trademarks and sell tea and coffee products through various channels, including licensed national food services and grocery stores ( Geereddy, 2013). Starbucks is famous for its first- class coffee, upscale customer experience, and cozy environment. Mission: To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. Vision: strive to establish Starbucks as the worldwide top seller of the highest quality coffee while committing to our unchanging values as we expand Customers: Starbucks's frequent visitors are mostly coffee lovers looking for an original coffee taste. The company serves many populations, including families, professionals, and college students . Main objectives of Starbucks 1. Deliver a first-rate client experience 2. To provide superior coffee and drinks. 3. To grow internationally by establishing additional locations, catering to regional and national preferences, and creating a worldwide brand. 4. To be creative and broaden their offering 5. To encourage moral and sustainable behavior
6. To promote the growth and welfare of staff members 7. To attain monetary expansion and profitability 8. To improve experiences on digital and mobile devices 9. To establish a socially conscious brand 10. To foster a feeling of belonging PART 1 Starbucks' SWOT Analysis Strengths Starbucks continuously enhances its IT skills to simplify operations, improve customer experience, and respond to changing market conditions. C.R.M SYSTEMS To better understand and connect with its consumers, Starbucks employs Customer Relationship Management (CRM) technologies. These tools assist Starbucks in consumer Data gathering by enabling the gathering and centralization of consumer data such as customer names, contact information, purchase history, preferences, and overall engagements with Starbucks.Starbucks may tailor the consumer experience by evaluating data acquired through the CRM system. Marketing campaigns, discounts, and product suggestions may be tailored to particular client preferences. CRM systems also make it easier to communicate with clients via numerous channels, including email, mobile applications, and social media. To keep customers interested, Starbucks may deliver tailored offers, promotions, and updates. The platforms also allow for the collection of feedback and the conduct of consumer surveys. This data is priceless in enhancing products, services, and the entire consumer experience. Customer support tools are frequently included in CRM systems, allowing Starbucks to track customer queries, complaints, and remedies, resulting in enhanced customer service. The technology also gives Starbucks sales performance analytics, assisting the corporation in identifying patterns, analyzing the efficacy of marketing initiatives, and forecasting future sales. In conclusion, Starbucks collects, examines, and makes use of consumer data using CRM systems to sustain customer loyalty, tailor experiences, and make wise business decisions. Starbucks' commercial development and improved customer interactions are facilitated by this strategy.
Starbucks mobile app and digital innovation The Starbucks mobile app is essential to the organization's IT and overarching business plan. A key component of the business's strategy is supported by the mobile app, which offers several incredible features. These features include mobile ordering and payment, which allows users to purchase and pay straight from their cellphones, increasing ordering ease and speed. Customers may place orders ahead of time and pick them up at a preferred Starbucks location using the "Mobile Order & Pay" function. As a result, wait times were shorter, and in-store productivity increased. Additionally, the smartphone app facilitates the use of the digital wallet by storing payment details and acting as a virtual wallet for purchases made at Starbucks. Furthermore, there is Notifications and Engagement, whereby Starbucks keeps app users updated about new items and promotions by sending them deals, discounts, and notifications straight to their inbox. Another crucial component is customer reviews. Customers use the smartphone app to rate and comment on their in-store experiences, which helps Starbucks to keep improving its services. Customers may also examine the menu, check shop hours, and find neighboring businesses using the app. Because of its ease, it's a useful tool for both frequent and infrequent users. Starbucks' focus on its mobile app indicates its dedication to improving customer satisfaction and maintaining its competitive edge in an increasingly digital landscape. Additionally, it supports their objectives of increasing client loyalty and optimizing processes. Starbucks Data Analysis Starbucks uses analytics to help guide company choices in some areas. The company's operations and strategy are fundamentally based on the use of data analytics, which helps it improve customer satisfaction, streamline operations, and spur corporate development. With proper data analytics, the company is capable of making informed decisions. To estimate client preferences, refine product offers, and predict demand, the organization employs sophisticated analytics. Starbucks and Microsoft had cooperation, and Starbucks was known to use Microsoft Power BI for business intelligence and data visualization (Kumar et al, 2022). With the help of this application, you may visualize data and do interactive reporting to learn more about different company elements. Starbucks can determine which goods are the most popular and which may require modifications or replacements by using data analysis. The menu is improved and new products are introduced that will probably be well-received by customers thanks to this data- driven strategy. Starbucks also forecasts product demand using analytics. This facilitates waste reduction, cost control, inventory level optimization, and ensuring that retailers have the correct items at the right time. Starbucks uses data analytics to evaluate market potential, consumer demographics, and competition when contemplating the opening of additional locations or entering new areas. This helps the company make smart decisions regarding expansion.
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Weaknesses Over-dependence on Technology Technology dependence is undoubtedly a double-edged sword for companies like Starbucks. Although digital systems and IT infrastructure provide many benefits, they also bring vulnerabilities that must be properly controlled. Starbucks may be more susceptible to cybersecurity risks or other disruptions due to its reliance on digital technologies. cybercriminals find a corporation more appealing the more digital assets and client data it controls. Starbucks needs to be on guard against ransomware attacks, data breaches, and other assaults that might compromise company systems and compromise user information. Over-reliance on technology can lead to operational hazards such as hardware malfunctions, software bugs, and technological mistakes. These problems can cause everyday operations to be disrupted, which can result in lost revenue and disgruntled customers. Moreover, technology is essential to Starbucks' supply chain management. A malfunction in the electronic systems managing procurement and inventories might cause interruptions in the supply chain. Data Privacy Concerns Starbucks gathers a variety of consumer data, mostly to improve customer service and customize products, such as personal information, purchase history, location data, and preferences. However, the amount of information being obtained is a matter of worry given how much of it is being gathered. Cybercriminals find a corporation more appealing the more data it gathers. Sensitive consumer information may be revealed via data breaches, which might harm a company's finances and reputation. Starbucks needs to be ready to handle data breaches and safeguard client information. Ultimately, in a time when data security and privacy are more widely understood, people are growing increasingly hesitant to provide personal information. Any apparent misuse of consumer data has the potential to damage Starbucks' reputation and undermine confidence. Difficulty in adopting new technology Since employees are inexperienced with the new systems, they fear change or worry about their job security, and as a result, they may be resistant to the adoption of new technology. The adoption of new technology has also the potential to cause short-term operational difficulties by upsetting established workflows and procedures. New technologies need to be seamlessly integrated with current ones. Data silos and inefficiencies might result from incompatibilities or integration issues. Furthermore, resources and training may be needed to learn how to use new technology. This can take a while, and it can reduce output while you're learning. Additionally, the initial cost of purchasing new technology, which includes hardware, software, and training, can be high and put a strain on finances.
Opportunities Increase Global Market By leveraging data analytics, Starbucks may more successfully enter new areas and maintain a presence there by paying attention to the changing demands and preferences of local customers. With this strategy, Starbucks can provide its consumers in different parts of the world with a customized and culturally appropriate experience. Starbucks can select the ideal sites for its outlets with the use of data analytics. Starbucks can compile and examine information about possible new markets. Demographics, purchasing patterns, income brackets, and coffee consumption patterns are a few examples of this data. Data may also be used to pinpoint areas where there are few competitors or where coffee culture is developing. To make sure their businesses are positioned properly, they may utilize geospatial data to determine high-traffic regions, closeness to rivals, and consumer demographics. Starbucks' supply chain may be made more efficient by using data analytics. This aids in guaranteeing the availability of particular items and substances that are well-liked in any industry. Additionally, data may help with inventory management and demand forecasts. Starbucks may use data to inform the creation of marketing strategies that are in line with local values and culture. Data may be used to determine which advertising messages and channels are most successful in reaching the intended audience. Advanced-Data Analytics Demand may be forecasted more precisely by AI and sophisticated analytics, which improves inventory management. Ensuring that popular items are kept in supply, helps to minimize consumer unhappiness stemming from unavailable products. Customers can receive recommendations from AI-powered recommendation engines based on several factors such as location, weather, time of day, and past orders. The consumer experience may be improved by this customization, which can make it more appealing and convenient. Chatbots with AI capabilities can be used for customer support. They can help, promptly respond to frequently asked questions, and even tailor recommendations based on one-on-one conversations. The firm can provide features like predictive ordering via the Starbucks mobile app by incorporating AI. The software may predict a customer's order using data analytics, which speeds up and improves the efficiency of the process. Advanced App Features Starbucks' app could have capabilities for augmented reality and virtual reality. Consumers might scan menu items with augmented reality to view interactive 3D pictures of the products. Virtual reality might offer virtual tours of coffee plantations, peeks into the roasting process behind the scenes, or even virtual cafés where you could hang out with pals from the comfort of your own home. Starbucks might make improvements to the app so users can interactively personalize their orders. Customers may, for instance, utilize an intuitive interface to visually construct their beverages by choosing from a variety of milk kinds, tastes, toppings, and coffee mixes. By launching coffee subscription services, Starbucks may increase the scope of its online
products. Consumers may sign up for reduced frequent delivery of their preferred beverages or coffee beans, encouraging customer loyalty and recurrent sales. Starbucks may create augmented reality (AR) filters and lenses that let users engage with the company in unique and entertaining ways, including putting virtual coffee cups in pictures or digitally trying on Starbucks goods. Threats Cybersecurity Emerging cybersecurity vulnerabilities put consumer data in danger and might damage Starbucks' reputation. To secure consumer data while it's in transit and at rest, Starbucks should make significant investments in data security measures. This includes frequent security assessments, encryption, and safe data storage. Through proactive cybersecurity measures, Starbucks can reduce the likelihood of data breaches and safeguard the reputation of its brand. Furthermore, exhibiting a resolute dedication to safeguarding consumer data might augment confidence and allegiance among its clientele. Competition Starbucks' capacity to draw in and keep consumers may indeed be impacted by heightened competition in the coffee market. The company ought to support ethical and sustainable procurement methods. Customers are becoming more and more concerned about how their purchases will affect the environment and society. Starbucks may set itself apart by demonstrating its adherence to these ideals. Emergence of new technology Rapid technological change occurs every day, making it difficult to keep up with new developments and consumer trends and causing products to become obsolete. To find and incorporate cutting-edge technology that improves the consumer experience, Starbucks ought to make research and development investments. Updating their in-store tech and app regularly might assist in maintaining the brand's appeal. Work together with tech startups or firms that are leading the way in new technology. Partnerships may help Starbucks remain ahead of the curve by bringing in new ideas and technologies. Starbucks can sustain its position as a major player in the coffee business by deliberately being nimble and reacting to evolving technology and customer trends. Conclusion The Starbucks IT environment is depicted in this SWOT analysis, which highlights opportunities to investigate, dangers to be mitigated, and strengths to be used for long-term
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success and growth. Starbucks' IT strategy will depend heavily on ongoing innovation, vigilant cybersecurity, and market trend adaptability. GAP ANALYSIS Cybersecurity Starbucks has cybersecurity procedures in place at the moment, but threats are always changing. To preserve client data and uphold confidence in the future, it is necessary to strengthen cybersecurity through sophisticated threat detection, personnel training, and strong data protection. Mobile App Starbucks now accepts payments and orders via mobile devices, however, efficiency and scalability issues might arise. As a result, in the future, Starbucks will have to enhance the mobile ordering and payment experience by adding practical features like voice commands, quicker processing, and order accuracy. Starbucks also has a website and a smartphone app at the moment, but in the future, it will have to improve digital channels for more personalized and engaging interactions with customers. They will also have to create more sophisticated digital platforms with omni-channel experiences, AI-driven customization, and AR/VR capabilities. Handling of data Although Starbucks already gathers consumer feedback, it cannot completely utilize it to make changes. Moving ahead in the future, they will have to streamline the process of managing client feedback and using data analytics to promote ongoing enhancements in their service and product offerings. Market Adaptation Starbucks presently does business in several foreign regions, each with its IT preferences and requirements. As a result, in the future, they have to improve their capacity to adjust to regional markets by adding more regionally relevant features and digital products. IT strategies that can be used to achieve Starbucks' aims and goals. Cybersecurity Measures
Like any sizable company that deals with private client data and engages in online commerce, Starbucks needs to be concerned about cybersecurity. As cybersecurity threats increase, cybersecurity measures may also change over time. Starbucks must regularly implement and update its policies regarding system and customer data security to fulfill its organizational goals. Regardless of the sector segment, cybersecurity is an ever-changing ecosystem with a broad and extremely complex field of study that involves particular sensitive information, which is the most significant component for any firm. As such, this issue demands ongoing attention ( Elkhannoubi et al, 2015). To preserve trust, secure consumer data, and preserve the integrity of its IT infrastructure, Starbucks has put in place several cybersecurity safeguards. But like any significant company, Starbucks needs to modify its cybersecurity plan to deal with new risks and weaknesses in the online environment. Mobile and Digital Innovation Make constant improvements to the Starbucks mobile app's ordering, payment, and loyalty functionalities. Creating features like precise voice-assisted ordering, chatbots, or customer history-based predictive ordering are some ways to do this. Include popular digital wallets and mobile payment systems into the current system to give clients more alternatives. By adding more integrations, they can accommodate a wider spectrum of customers, which in turn increases revenue. They can also increase their product campaigns and in-app pop-ups to promote more products and offer insights to regular clients or users. This will also increase the interaction between the user and the organization. The pop-ups in the application can also include some short information to educate the users on best practices for cyber-security. This is because security is not all about one individual but it starts with every stakeholder taking part in the utilization of the products. Innovation and the Digital Transformation Starbucks could implement technologies like augmented reality (AR) and virtual reality (VR) for an immersive customer experience to improve the digital store experience. Additionally, they want to make greater use of Internet of Things (IoT) gadgets to track and improve energy efficiency, sustainability, and retail performance. They should also investigate blockchain technology to improve supply chain and product source transparency. Implement advanced analytics and AI to forecast demand more accurately, optimize inventory levels, and minimize waste. Starbucks may further improve its operations, customer experience, and sustainability initiatives by using these strategies and technology. This will eventually help the company stay competitive in the market and in line with its corporate goals.
PART 2 Requirements 1) Organizations must carry out a systematic risk assessment following ISO 27001 to recognize risks, weaknesses, and their effects on information security. To handle risks that have been identified, the company must create a risk treatment strategy that includes putting in place the necessary security measures. The fundamental procedure of ISO 27001 aids businesses in properly protecting their sensitive data. 2) Establishing an information security policy that offers a top-level structure for information security management is required of organizations. The organization's goals, stakeholder roles and duties, and its commitment to information security should all be outlined in this policy. It directs security operations throughout the whole enterprise and forms the cornerstone of the ISMS. 3) Organizations must identify and categorize their information assets, such as data, systems, and equipment, following ISO 27001. This aids businesses in recognizing the importance and worth of their assets and putting in place the necessary safeguards. To guarantee that resources are distributed efficiently and that sensitive data is suitably safeguarded, asset management is crucial. 4) To prevent illegal access to information assets, the standard requires enterprises to adopt access control methods. This entails establishing user privileges and access rights as well as putting authentication and authorization procedures into place. Access control ensures that sensitive data can only be accessed and changed by those who are allowed. 5) Organizations must set up an incident management procedure following ISO 27001 to identify, record, evaluate, and handle information security issues. This includes creating incident management protocols, outlining roles and duties for incident response, and carrying out post-event evaluations. Organizations may reduce the damage caused by security breaches and stop them from happening again by implementing an efficient incident management procedure. Organizations must cover 11 essential areas, referred to as "clauses," as defined by the ISO27001 standard to create, implement, manage, and continuously enhance an efficient ISMS. The following are these clauses: 1) Clause 4: Organizational Context: Under this clause, companies must ascertain the
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extent of their Information Security Management System (ISMS) and comprehend the internal and external environments in which they function. It entails determining the stakeholders, comprehending the goals of the firm, and evaluating the information security context. 2) Clause 5: Leadership: The commitment of senior management to the ISMS is the main topic of this clause. It entails leadership and governance elements like policy establishment, role and responsibility definition, and making sure the ISMS is in line with the organization's strategic goal. 3) Clause 6: Planning: According to this provision, enterprises must schedule their ISMS. This includes establishing risk treatment programs, doing risk assessments, and creating information security goals. Effectively tackling information security issues requires a planned strategy. 4) Clause 7: Support: The resources, expertise, knowledge, communication, and recorded data needed to support the ISMS are covered in this clause. It guarantees that the company has the tools and resources required to establish and manage information security. 5) Clause 8: Operation: This section deals with the application of information security measures and controls. Effective change management, security control installation, and risk assessment and treatment are all included. 6) Clause 9: Performance Evaluation: It is required of organizations to track, quantify, examine, and assess the effectiveness of their ISMS. This includes evaluating the efficacy of controls, evaluating the ISMS, and carrying out internal audits. 7) Clause 10 - Enhancement: This section addresses non-conformities, remedial measures, and ongoing development. When non-conformities are found, organizations must take corrective action and keep improving the ISMS. 8) Clause A.5- Information Security Policies: This appendix clause focuses on information security rules in particular. It describes the conditions that must be met to create, carry out, preserve, and enhance information security policies inside the ISMS. 9) Clause A.6- Organization of Information Security: This additional annex clause offers instructions on how to set up information security. It covers things like job definition, access restrictions, and task segmentation. 10) Clause A.7- Human Resource Security: The purpose of this appendix clause is to guarantee that staff members are informed about information security rules and their duties. It addresses things like hiring and screening personnel, outlining roles and duties, and offering security awareness and training. 11) Clause A.8 - The Asset Management: The identification, categorization, and safeguarding of information assets are all included in the management of information assets covered by this annex clause.
OVERVIEW OF ISMS The standard itself is at the top of the figure, followed by the four main clauses (6, 5, 8, 9) that reflect important areas of concentration. This diagram shows the hierarchical structure of ISO 27001. Supplementary clauses that provide particular instructions on different elements of information security management are called Annexes (1, 2, 3, 4). An enterprise must establish and put into place controls, policies, and procedures that meet the standards of ISO 27001 in each of these categories. The company will define goals, evaluate performance, carry out risk assessments and mitigation, and continuously enhance its ISMS. The particulars and extent will change based on the demands, dangers, and circumstances of the company. From the clauses above, the focus will be on clause A.5 and A.6 which covers the security of the organization. One of the major outstanding challenges facing Starbucks from this study and analysis is cybersecurity. This is the biggest challenge that calls for the organization to implement ISO27001. Information security policies are covered by ISO 27001 Clause A.5, and in the context of Starbucks or any other firm, this would entail the creation and application of information security policies. The whole information security management system is built around these policies. This clause requires Starbucks to create a set of information security guidelines
outlining the company's dedication to safeguarding its digital assets. The goals of the company and any applicable laws or regulations should be reflected in these policies. Regarding information security, the policies outline the obligations of several departments and individuals within Starbucks. Regarding the appropriate use of data and information systems by workers, contractors, and other pertinent parties, Starbucks may set policies. This policy, in general, examines how data should be safeguarded to the latter with appropriate regulations in place. How a business organizes and oversees its information security initiatives is the subject of ISO 27001's "Organization of Information Security," clause A.6.Information security should be incorporated into Starbucks' project management procedures. This entails evaluating the security risks associated with new projects and making sure security measures are implemented as necessary. Starbucks should set up rules and processes for the safe use of mobile devices and teleworking arrangements given the current use of mobile apps. Additionally, in order to guarantee that staff members are aware of their responsibilities for protecting confidential data, Starbucks should enhance its information security awareness and training initiatives. There are reasons as to why the organization should implement ISO. 1) Starbucks gathers and keeps track of sensitive data, including payment details and customer information. ISO 27001 offers a methodical and all-encompassing approach to information security, which aids in the security of this data. 2) With its global expansion, Starbucks may use ISO 27001 as a standard security framework to guarantee information security procedures are followed consistently throughout all of its locations and subsidiaries. 3) A framework for recognizing, evaluating, and reducing information security risks is offered by ISO 27001. Starbucks may lessen the possibility of data breaches and other security issues by proactively addressing vulnerabilities and threats. 4) Starbucks' brand reputation may be improved by demonstrating a strong commitment to compliance and information security. It demonstrates Starbucks' concern for safeguarding consumer data and dedication to upholding strict security protocols. From the above reasons, it is still clear that the main objective of having this framework implemented is to improve data security at Starbucks. However, some impacts come with implementing this framework. Starbucks would see a wide range of effects from the adoption of ISO 27001, including improvements in customer interactions, operational efficiency, security, compliance, and brand reputation.
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The framework will also be implemented through various phases that include; initial planning, documentation and development, Implementation and operation, monitoring and evaluation, improvement and certification. Numerous consulting and auditing businesses that assist enterprises in implementing ISO 27001 and obtaining information security certification are present in the United Arab Emirates. Organizations in the UAE may receive assistance with their ISO 27001 journey from Bureau Veritas, a worldwide certification and auditing business that offers ISO 27001 certification services. It is noteworthy that the expenses associated with implementing ISO 27001 might range from a few thousand dollars for small, entry-level businesses to several hundred thousand dollars or more for bigger, more intricate corporations. Furthermore, the initial cost is frequently outweighed in the long run by the advantages of enhanced security, compliance, customer trust, and operational efficiency. References Kumar, D. M., Kumar, M., Govindarajo, N. S., & Nanda, I. (2022). Business Intelligence and Branding. In Business Intelligence and Human Resource Management (pp. 95-121). Productivity Press. Elkhannoubi, H., & Belaissaoui, M. (2015, December). A framework for an effective cybersecurity strategy implementation: Fundamental pillars identification. In 2015 15th International Conference on Intelligent Systems Design and Applications (ISDA) (pp. 1-6). IEEE.