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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.