INF 220 Week 5 Final Project

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1 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION Week 5 Final Project - IT System Recommendation Your Name INF 220: IS Principles Instructor Name November 6, 2023

2 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION Introduction In the constantly growing field of retail, its companies are among the largest corporations globally. Retail has become a business that offers many necessary services or goods to consumers. As technology evolves and gives retail an advantage over other fields, it is vital that stores make sure that the purchasing experience is smooth and concentrates on exceptional customer service. Currently, most retail giants such as Walmart and Amazon have become more consumer centric and have begun offering extra services to make the purchasing experience much easier for the customer. Target Brands Inc, has 1,850 stores within the United States. It also has an online customer-friendly website, and a consumer-friendly mobile application which serves many consumers every day, over 39 distributions centers to provide goods and products, and has over 350,000+ team members worldwide (Target Brands, 2018). Target has a massive amount of consumers who go shopping at Target, Super Target stores and their online website everyday. It is eminent that the customer data received during these transactions is appropriately safeguarded by a secure information system. In this paper, the needs of Target based on conducted research of the company and its potential security risk will be identified, and an informed recommendation based on those details will be made. Company Background The company which was selected for the final project is Target Brands, Inc This company has a unique customer base and has been one of the fastest growing retailers alongside major retailers such as Walmart. Target in the retail industry has in the past experienced information system breaches which affected over 70 million of its customers. (Plachkinova & Maurer, 2018).

3 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION Target has existed in some form since 1902, beginning as a Dry Goods company founded by George Draper Dayton. Since the 1900’s, the company has evolved significantly into the retail giant we know today, (Target Brands, Inc., 2018). Currently, Target Brands, Inc has expanded as a retailer which offers many products and services such as; clothing, electronics, and in some locations groceries and an abundance of other items for the customer’s convenience. Target has become a one-stop shop for customers and their daily necessities. Products and Services Target Brands, Inc, like many other large retailers, has their own branded merchandise, and a curated selection of products from third-party sellers. However, for the products to be resold by Target, they must first acquire the products and then they may be resold in their locations based on demographics and prices based on the cost of living in the area. Target currently has over 39 distribution channels that these products are filtered through to reach their final destination. The company employs as many as 350,000 team members at any time to maintain the store’s functionality, (Target Brands, Inc., 2018). Target Brands, Inc sells a plethora of items depending on the stores platform. For example, Super Target carries a more extensive selection of grocery items than what a regular platform location sells. However, there are not as many Super Target locations since the store’s platform is dedicated to those who will do more shopping based on family-oriented consumers who need access to grocery items and options to grab clothing if needed. Target stores currently carry clothing items, home goods, groceries, personal care items, school and office supplies. In most locations they have pharmacies, and healthcare professionals who provide urgent care health needs when necessary. Target currently accepts numerous forms of payment such as Target REDcard™ (Target

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4 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION Debit Card™, Target Credit Card™, Target™ Mastercard®). Third-Party Credit Cards: Visa®, Mastercard®, Discover®/Novus®, American Express®, credit cards form foreign banks (JCB Japanese Credit Bureau), Diner’s Club International they also accept cash, checks and for online purchases, a consumer could also use PayPal to make purchases. (Target Brands, Inc., 2018). Customers have countless methods to obtain goods and services with a varied list of payment methods. The company has assured that all forms of payment, as well as consumer data, will remain secure to prevent data breaches. Information Systems Since Target has become such a large and successful retailer who has steady transactions daily within their locations and also via their online store, the company has a secure system in place to protect its customers. It has become a priority so that they may remain successful retailers. Target has become what is considered a click and mortar organization, a click-and-mortar Organization “conducts some e-commerce activities usually as an additional marketing channel,” (Turban et al., 2011). Target fulfills this role by offering online purchasing via their mobile app or website with the option to ship to or pick up in store, as well as self-checkout options in their Stores. “To date, Target.com is the fourth most-visited retail website in the U.S. with more than 26 million unique visitors each month on average” (Target Brands, Inc., 2018). In the retail Industry, retailers have a vast amount of access to information that is sensitive and confidential. With access to this type of information, it is essential that all the necessary measures are in place To prevent a potential data breach. Target as a company has its internal databases which store information regarding inventory, human resources, and employee records as well. For example, Target would use their

5 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION information system technologies to manage their current inventory on their products to ensure its customer base has access to goods and products in particular locations or online availability. All businesses generally have these databases which store this type of information, and it assists in helping them run smoothly. Target has a significant social media presence, and they are known to be one of the many retailers who ensure that they engage with their customers through various platforms such as Facebook, Snapchat and Twitter. Target currently has a new page named “A Bull’s-eye View”, filled with all things pertinent to its consumers, (Target Brands, Inc., 2018). The access to this page gives consumers the ability to connect with Target as a brand. Target’s social media strategies have given the retailer the ability to build rapport with the company and stay relevant wnnhile building a beneficial relationship between retailer and consumer. Existing Information Systems Upon the research conducted, it was determined that Target has their proprietary software which is used exclusively for its business. This system has given the company the ability to manage all phases of its business successfully. The ability to have this software in house reduces expenses for the retailer, and it has the ability to make the system adaptable to its needs. The company would also have the option to run its business without any outside influences, and it gives them the ability to correct any issues with their information systems technology should a problem be discovered. Target Brands, Inc. (2017) speaks to these benefits specifically regarding their in-store Technology improvements, “Target’s tech team created custom bots—software that runs automatically—to help tackle store IT issues. As soon as the bots detect a glitch, they immediately begin troubleshooting and putting fixes in place, often before anyone at the store even realizes there’s an issue.”

6 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION Target’s existing information systems technology is not accessible to the public, so it is not possible to speak directly regarding the features and accessibility. Likewise, it is evident that the systems that the company currently has in place provide the necessary functions to allow the business to run successfully. While Target has dealt with data breaches in the past, such as the one from 2014. Target has taken all the necessary steps to avert future breaches from affecting their consumer base. The company created a Cyber Fusion Center, provided free credit card monitoring for its customers, and implemented POS terminals with chip readers” (Plachkinova & Maurer, 2018). Like most retailers like Walmart for example, Target has begun offering cutting-edge technology which allows real-time results regarding product availability. This retailer also has technology which allows its employees a system that houses their employee data such as timekeeping and pay related details. Recommendation The recommendation proposed for Target Brands, Inc which would benefit them most would be system automation, end-user computing needs, and various information management technologies. Target Brands, Inc would need to focus on functions that help the retailer based on sales and marketing. Sales and Marketing As with any business, it’s vital that the company ensures it remains ahead of the curve with fresh marketing material and that the customer base has the ability to identify with the services in which it offers. The level at which sales and marketing decisions are made would be

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7 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION at the executive/strategic level. “At the executive level (or strategic level) of the organization, managers focus on long-term strategic questions facing the organization, such as which products to produce, which countries to compete in, and what organizational strategy to follow,” (Valacich & Schneider, 2016). The choices which are made regarding marketing and sales are based on demographic and most importantly, the historical data of the organization. Target has shown that it is successful in marketing their products to their customer base. Although the decisions regarding how marketing is projected are made by senior leadership, it remains to be strategic and innovative. Since sales and marketing may be dependent on different factors, such as holiday season, or in some instances culture based, it would be recommended that Target has a system in place which markets products and services based on demographics, and how current sale trends for products. If this standpoint was assessed from the strategic level, it would surmise that executives would make the conclusions based on historical sales data. “Marketing Intelligence may be defined as knowledge derived from analysis and interpretation of certain Business information necessary for planning strategy and tactical decisions for all of the business Functions,” (Evans & Schlacter, 1985). Target would benefit from a system which allows them to project trends for sales so that they may have higher sales benefits in areas were particular products maybe be more popular due to cultural based beliefs or demographics. A system that provides historical data gives the retailer the ability to be aware of weak sales for specific products based on things such as a current public opinion trend or cultural change. With access to this type of info, Target would have the

8 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION capability to make the best decisions marketing wise for their company’s continued success. Allowing employees to be able to provide feedback would help also as it gives the standpoint from someone other than a consumer. The current recommendation for Target Brands, Inc would be to for the company to follow the process of system development life cycle. This system would give it the capability to develop a process which ensures all necessary bases regarding sales and marketing. The initial step for developing the system will include system planning and selection, system analysis, system design, systems implementation and operation and finally system maintenance, (Valacich & Schneider, 2016). This process would allow Target Brands, Inc to start the system planning process and follow at a rate which promotes a user-friendly database and the ability to show raw data in a way which is easily understood. Potential Security Threats As with any retail company which has a consumer’s personal information, it is essential that all customer data is secure. Target Brands, Inc has a system that tracks their consumer’s data for some reasons such as for returns or sales statistics. But with access to this type of information, there could be a potential security threat to the consumer data the retailer has access to. Target Brands, Inc in the past, as many other retailers has had security breaches which occurred due to hackers. Since this issue has happened before, it is vital that the company take the proper measures to ensure that consumer data remains private. “Advertisers use online customer data to target their marketing appeals. This has heightened consumers’ privacy concerns, leading governments to pass laws designed to protect consumer privacy by restricting the use of data and by restricting online tracking techniques used by websites” (Avi & Catherine, 2011). To comply with the standards’ necessary to keep the consumer’s data private they must protect any identifiable

9 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION information and make sure that the employees take the proper measures to prevent any unnecessary access to the customer’s data. Target Brands, Inc would also need to ensure that There is an additional layer of security via its point-of-sale systems to prevent access to hackers such as anti-viral softwares and security firewalls as well. Social, Political and Diversity Impacts The social, political and diversity impacts to this system would improve upon the marketing for Target Brands, Inc. The system would give Target the capabilities to provide the consumer with the best shopping experience based on the demographics in the store locations. If a site can be diverse, it would allow the consumers to have a personalized shopping experience. this opportunity would not affect the sales for Target, but it would increase the insight of how the company markets and prevents content which could potentially cause a repercussion for the company. Conclusion Target is one of the larger corporations in retail with 350,000 + employees and will only continue to grow if they continue with new and innovative technology. If they invest in cutting- edge technology and provide consumers with world-class customer service, they will continue to grow as a corporation. It is essential that consumers have a smooth shopping experience provided that personal information would be protected and the services received are seamless during and after a shopping experience. Implementing these technological advances would also ensure they stay ahead of the curve with other retail providers such as Walmart and e-commerce merchant Amazon.

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10 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION References Avi Goldfarb, & Catherine E. Tucker. (2011). Privacy Regulation and Online Advertising. Management Science, 57(1), 57. http://www.jstor.org/stable/41060701 Evans, K. R., & Schlacter, J. L. (1985). The Role of Sales Managers and Salespeople in a Marketing Information System. Journal of Personal Selling & Sales Management, 5(2), 49. DOI: 10.1080/08853134.1985.10754401 PERLROTH, N. (2013, December 19). Target Investigates Breach Involving Credit Card Data. New York Times, p. B2. Retrieved from https://web.s.ebscohost.com/ehost/detail/detail? vid=1&sid=f1073fc4-bce2-445b-8b08-a18c0aaf212d %40redis&bdata=JkF1dGhUeXBlPXNoaWImc2l0ZT1laG9zdC1saXZl#AN=93253052&db=f5 h Plachkinova, M., & Maurer, C. (2018). Teaching Case Security Breach at Target. Journal

11 WEEK 5 FINAL PROJECT – IT SYSTEM RECOMMENDATION of Information Systems Education, (1), 11. Retrieved from https://eds.s.ebscohost.com/eds/detail/detail?vid=1&sid=4433b084-e567-4dbc-81a6- 2d69ab37ba1a %40redis&bdata=JkF1dGhUeXBlPXNoaWImc2l0ZT1lZHMtbGl2ZSZzY29wZT1zaXRl#AN= edsgcl.533695088&db=edsgao Target Brands, Inc. (2019). Corporate Fact Sheet. Retrieved January 18, 2019, from https://corporate.target.com/press/corporate Target Brands, Inc. (2017, October 31). Here’s How Target Is Investing in Store Technology to Make Shopping Even Better. Retrieved January 18, 2019, from https://corporate.target.com/article/2017/10/operational-improvements Valacich, J. A., & Schneider, C. (2016). Information systems today: Managing in the digital world (7 ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

INF 220 Week 5 Final Project

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