SAD Project- Angelique Johnson

PHASE I 3

Strategic Planning Mission/Vision Statement Macy’s mission is to seek out the best possible service to customers. Specializing in not only clothes, Macy’s also expanded its business to bedding, footwear, furniture, and many more in order to become one of the world’s largest retail department store. To elaborate, their mission statement is: " Our goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever before, employing more technology and concentrating our resources on those elements most important to our core customers. " http://www.makingafortune.biz/list-of-companies- m/macys.htm This mission statement is very important, especially toward this project. Not only is Macy’s trying to stretch its ability to be number one in customer service, they are trying to use technology to do so. They are aware of the issues/problems that might occur within the company, but in order to solve those problems they have recognized that implementing more technology and having more resources will be a big help. According to makingafortune.com, their vision is: “ Our vision is to operate Macy's and Bloomingdale's as dynamic national brands while focusing 6

customer’s favorite when it comes to shopping rather that is for clothes, footwear, bedding, etc. “The most exposed to e-commerce are the department stores… t hey’re losing foot traffic, and they’re discounting heavily,” (Rupp). The overall question now is: How can we improve our sales online AND in the store? Clearly, a new marketing strategy should be in place. Another problem is that “Macy’s does not give consumers a reason to visit its stores,” (Peterson). This indicates that they are not marketing themselves enough in order to attract people to their store. Although they do have commercials and billboards Macy’s does not cater to the store, in fact it is more-so to the website. This causes people to automatically shop online instead of shopping in-stores. 9

Current Organizational Environment and Chart 12

System Service Request REQUESTED BY: ___ Angelique Johnson _________ DATE: __ 07/01/2016 ___________ DEPARTMENT: _____ Entire Store _____________________________________ LOCATION: ________ Chicago, IL __________________________________________ CONTACT: _________ John Doe ____________________________________ TYPE OF REQUEST: URGENCY: [ x ] New System [ ] Immediate attention required [ ] System Enhancement [ ] Normal priority sequence [ ] System Error Correction [ x ] Defer until system upgrade PROBLEM STATEMENT: Macy’s current marketing strategy seems to be lacking. This year alone more than 40 stores are closing including one at Regency Mall in Richmond, VA. As time evolves, it gets harder to market to today’s society. There is a new system that will be able to make it easier for Macy’s to develop a new marketing strategy that will increase customer awareness and overall increase sales. SERVICE REQUEST: I request an investigation and analysis of our current marketing processes with the intent to conceptualize, build and implement a new marketing software called Marketing 360  that will will meet Macy’s business needs. SYSTEMS ANALYST: ____Angelique Johnson____________________________________ SPONSOR: ______________ Macy’s Dept. Store __________________ TO BE COMPLETED BY SYSTEMS INVESTMENT COMMITTEE [ x ] Request Approved Assigned to ____Angelique Johnson Start Date ____04/05/2016 ________________________ [ ] Requires Revision [ ] Request Rejected [ ] Reason ____________________________________________ 15

Feasibility Without feasibility, there is no way to determine if the project is worth the continuation of the process. It is made up into four parts: technical, operational, economic, and schedule. Technical This project includes technical feasibility because it will require hardware, software, and networks. The retail company already has a technical team that not only operates the marketing aspects, but also the management, accounting, and information system aspects as well. Operational Customers will be able to be able to shop in-store comfortably when the new marketing strategy is incorporated. It will also support the management team as well because they will be able to further expand their customers with the newly equipped marketing software. Employees will be trained on how to interact with the new customer base and they will also be updated on the new marketing software. Economic There will be a substantial amount of finances needed to complete this project. However, the benefits will outweigh the needed finances because the new 18

PHASE II 21

Business Letter RE: SAD Class Project Sherese Paige Store Manager Dear Sherese Johnson: My name is Angelique Johnson, senior computer information systems major at Virginia State University. I am writing you this business letter regarding a very important project, which I feel will effectively help Macy’s marketing strategy. I’m currently taking a class entitled ‘System Analysis and Design’. This class introduces students to the basic concepts and procedures required in the analysis, design and development of computer-based information systems. For the project, we must select an organization or business, on campus or off, and improve the current information system of that business or implement a new system. I have chosen to improve Macy’s marketing strategies through information systems in order to boost sales in stores and online. Personally, my goal is to develop and implement a new marketing software. This software will help not only Macy’s, but other retailers reassure that customers are motivated to come into stores and shop online. I am creating the software to cater to specific audiences (depending on the 22

item) and to also lure in more customers who have never shopped with Macy’s before. This will definitely benefit the company because it will ultimately generate more revenue. However, in order for me to move forward with this project, it will require your cooperation and support. To effectively conduct this research, I will need to do some data collection. This project is very valuable, not only to me, but it could possibly provide value to your company if you made the decision to follow through with this upgraded marketing system in the future. I want to thank you in advance for letting me take a closer look at your current operations at Macy’s and collecting the data that I need for my project. I am more than willing to share my project with you and your Macy’s team at the end of the semester. Thank you again! Closing: Thanks in Advance Angelique M. Johnson Computer Information Systems, Major Virginia State University (312) 714-3602 ajoh9163@students.vsu.edu 23

Current System VS. Proposed System Current system Through Macy’s current marketing system, they use Customer Intelligence for Macy’s. This allows for the company to market to all kinds of audiences. The problem lies within this system; because the system doesn’t monitor what audiences specifically shops for what products, it makes it harder to market. They also have easy navigation through their applications as far the app store for iPhone and Google Play for Androids. A bullet form of its current system is shown below:  Apps available through the app store for iPhones and iPads  Apps available through Google Play for Androids  Easy navigation  Uses CMI; Customer Intelligence for Macy’s Proposed system As for the proposed system, with the Marketing 360 installed in the hardware, it’ll search for the specific audiences and match it with the product that they buy. For example, the software might find women between the ages of 30-35 buying cooking appliances. Therefore, Macy’s can take this information and market through their commercials. This would easily boost their sales and also through these commercials, it’ll scope out customers to come to stores and buy 24

their favorite cooking appliances. Catering and motivating more customers are also a part of my prosed system. A bullet form of the proposed system is shown below:  Marketing 360  Caters to more customers through the software  Motivates customers to come into stores and online  Boost sales 25

Major Business Functions and Major External Entities In order for this newly designed system to be implemented, there will be two major business functions associated with this project. All business structure every business function in order for it to run smoothly. Specifically, this project will be using information systems and marketing. These to functions will ultimately help Macy’s with their marketing strategies in order to boost their sales. Marketing Marketing is a common area that most companies have problems with. Some companies assume that their clientele stays the same throughout the duration of the business but that is not the case. Thus being a reason why so many companies start to decline in sales because they are not paying attention to the people they are giving service to. With the new marketing software being implemented, it’ll be easier for Macy’s to collect data simultaneously; instead of heavily weighing out the data through the course of the year it’ll constantly update itself so the company will know what is going on based on their audience. Information Systems Information systems also heavily affects a business. As technology is constantly evolving, it is important to have the latest updates to all software in 26

order to prevent crashing and any security breaches. Thus, it is imperative that the marketing system software needs to be updated. Again, it’ll help increase Macy’s revenue by a substantial amount. 27

Critical Success Factors (CSFs) Within a business you have critical success factors. CSFs are very relevant because it is what makes the organization achieve its mission. Assuring the success of the company, CSFs also determine what companies can use against their competitors. In Macy’s case, they have many CSFs that’ll better their company. These can be found below:  Client Base (People) - This is the most important CSF. Because we are looking to improve their marketing strategy, people are very relevant when achieving this. Macy’s is a customer friendly place where they look to cater to customers rather they are shopping vis online or in stores. Friendly service is always key when working in retail because you want to let the customer know that you are there for them if they need help with anything or service.  In-Store Activities- Since Macy’s is looking to improve the in-store clientele, in-store activities would be imperative. Technology (in formation systems\) will make it easier for customers to find what they are looking for. Also, displays and other presentations help with the visual merchandise and will attract more customers to come inside the store. 28

 Organizational Structure- In order to stay organized, organizational structures are needed. This allows each role within the company to have its own part, and if needed, roles can collaborate. In this case, roles within information systems and marketing are collaborating in order to make Macy’s generate revenue. 29

Interview Questions 1. Q: Monday-Friday, about how busy is your store? A: Through the weekday, things are pretty slow. We may have a lot of people coming in and out of the store but as far as sales, we lack in that area. ON the weekends, we tend to see more people because no one has to work and they have more time to shop around. 2. Q: Besides Christmas, when is your busiest season ? A: Of course, Christmas time is our busiest season. I would say beside that, summer usually is our second busiest because people are trying to swap out there winter clothes for summer clothes. 3. Q: What audience base would you say shops at this particular Macy’s the most? A: I would definitely say women between the ages of 35-50, especially on the weekday. We have customers who come in just on a casual stroll through the mall, but as far as sales again we are lacking in that area. 30

4. Q: What products would you say you sell the most? A: As of now, we are putting out pre-sales for Christmas so clothes for all ages (men, women, teenagers etc.) are our highest selling products now. Because we are a department store, we sell other things like bedding and cooking appliances. However, on a regular basis we mostly sell clothes. 5. Q: How often do you update your displays? A: Our displays are updated on a weekly-biweekly basis. It all depends on the season and how fast we are selling that specific product. 6. Q: Are you familiar with Macy’s marketing strategy plan? A: Macy’s tends to a specific kind of audience. From my experience, these audience members tend to be middle-aged women. I also believe that that’s one of the main reasons why we are losing out in sales via store. There are so many Macy’s closing down because we are not able to make revenue and more people are shopping online instead of coming into the store. We need to give people a reason to come into the stores again, the old fashioned way. 31

7. Q: Are you all meeting your location quota? A: We are as of right now, and again that is because of the Christmas season coming up. However, sales are not the same as they once were because technology is taking the place in lue of actually coming into the store. 8. Q: Do you all use any type of data collection that keeps track of your customer intel? A. We do not. We mostly go off of what we see as far as the type of customers that come in and out every day. 32

1 Server (Marketing 360) Manager Manager Completed Purchase Just browsing Server access Logon Collects data Customer Server access TRANSACTION D Transaction Information Record Data Flow Diagram (DFDs) Context level 33

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1 Server Employee VENDOR Completed Purchase Personal Information Server access Logon Log on to Complete Services Customer Server access TRANSACTION D Transaction Information Record Level 0 Entity Relationship Diagram (ERD) 35

INVENTORY ITEM SUPPLIER CUSTOMER SALES REP ORDER Places Supplied by COMMUNICATES GETS Server The entities that are described to Macy’s set operation are identified. The Entities types are: CUSTOMER, SALES REP, and Server. This is explained more below.  AN SALES REP communicates with CUSTOMER in store  A CUSTOMER purchases an ORDER 36

Planning Matrix1: Business Function to External Entities K EY M=B USINESS FUNCTION M AINTAINS D ATA E NTITY R= B USINESS FUNCTION R EQUIRES D ATA E NTITY 37 Data Entity Types Business Functions Customer Vendor Inventory Item Order IT Staf Supply of product M R Customer needs R Customer Data R Store/Customer Ratio R Pay rates M M Refined information sys. R

Planning Matrix2: Business Function to Critical Success Factors K EY M=B USINESS FUNCTION M AINTAINS D ATA E NTITY R= B USINESS FUNCTION R EQUIRES D ATA E NTITY Data Dictionary 38 Data Entity Types Business Functions Customer Vendor Inventory Item Order IT Staf Supply of product M R Customer needs R Customer Data R Store/Customer Ratio R Pay rates M M Refined information sys. R

TABLE FIELD DESCRIPTION TYPE CONSTRAINTS CUSTOMER CustomerId Identification of the customer Varchar(15) Primary key Username Name of the customer Varchar(14) Not null Email E-mail using Varchar(15) Not null Password Customer password Varchar(15) Not null Phone Phone of customer Varchar(10) Not null Regdate Date of registration Date Null ORDER OrderId Identification of order Varchar(10) Primary Key Ordername Name of order Varchar(15) Not null Orderdescription Description of order Varchar(15) Null Price Price of order Varchar(15) Not null Image Image of order Varchar(15) Null ASSSOCIATE AsscociateId Identification of Associate Varchar(10) Primary Key 39

Password Associate password Varchar(15) Not null Username Name of the Associate Varchar(14) Not null Regdate Date of registration Date Null 40

PHASE III 41

Hardware Configuration Hardware Scoring Model Apple Dell Evaluation Factor Weight POS Hardware A Score POS Hardware A % POS Hardware B Score POS Hardware % Performance 4 4 100 4 100 Cost 5 3 80 4 100 Reliability 5 3 80 4 100 Compatibility 4 2 100 4 100 Technology 4 4 100 3 75 Ergonomics 4 3 75 4 100 Connectivity 5 4 80 4 100 Scalability 4 3 100 3 75 Software 5 3 80 4 100 Technical Support 4 4 100 2 50 Total 795 900 Hardware Layout 42

For this software to be successful, a powerful hardware is needed. With this hardware, the main thing that needs to be taken into consideration is memory and graphics. Since the company is trying to create a new marketing strategy, there will be many documents needed and also many video/pictures made in order to capture the customers eye. To get an idea of how a basic computer system is configured a diagram is below. Ethernet Port Parallel Port USB Port Wifi Monitor Keyboard In Out Hard Disk Optical Disk Monitor Keyboard Bus Disk Controller Audio Controller Video Controller NIC USB interface Parallel Interface Keyboard Controller CPU Memory Clock 43

Since Macy’s is a big company it’ll be best to describe the logical design as WAN. That stands for “Wide-Area Network” and makes perfect sense for such a ginormous company. WAN are made to “facilitate communication between users and applications over large geographical distances”. In this case, Marketing 360  will be distributed through the hardware of Macy’s marketing team worldwide. A sample diagram is below The physical design will be a little bit more detailed than the logical. It includes how the WAN will be structured as far as routers, connecters, Ethernet 44

switch, and Ethernet Hub. The picture shown below is an example of how Macy’s network will be set up. It will include the XPS 8900 workstations connected to single-mode fiber optic cables. This will allow signals to travel longer distances as opposed to multi-mode fiber optic cables. It will be connected to 5 routers and two connectors. The completed system will include the memory, bus, computer, clock, keyboard controller etc. The prices for a WAN can range depending on how much data one would like to use. For the Macy’s project, the best deal, according to 45

AT&T would be to get 5000 GB at a monthly rate of $99.99. That way the marketing software is able to work efficiently across all computers without having to “slow down” or run out of data. 46

Hardware Specifications All of these necessities are important when looking for a hardware to support Marketing 360  . This software needs extensive memory to support its every need and also other ports like the parallel, USB, and Ethernet ports. In order to decide the best hardware for Marketing 360  there are two hardware specifications that can be take into consideration. These are located in the two tables on the next page. Apple 27-inch iMac Processor Intel® Pentium® Dual Core Processor i5 (3.3GHz) Operating System OS X El Capitan Memory 32GB of 1867MHz DDR3 memory; four SO-DIMM slots, user accessible Storage 2TB Fusion Drive Optical Drive No Optical Device Monitor Apple 27-inch Retina 5k display™ Energy Smart N/A Floppy No Floppy Drive Speakers Stereo Speakers Keyboard Apple Magic Keyboard Mouse Apple Magic Mouse, White Warranty & Service 1 Year Basic Limited Warranty Shown above are the specifications for the 27-inch iMac. This has the ability to help with the new software in order to develop a new marketing strategy for Macy’s. Since memory and storage are the main concern for the hardware, Apple has developed an impeccable 32GB of 1867MHz DDR3 memory and 2TB fusion 47

drive. According to Apple, fusion drive gives you the best of both worlds. It “combines speedy flash storage with a high-capacity hard drive”. What you frequently use will stay on your flash storage while your infrequently items will move to the hard drive. As far as the processor, it has a sixth-generation Intel Core processor with the latest AMD high-performance graphics. This will allow Macy’s marketing team to develop top-notch images and videos. The keyboard and mouse are rechargeable and it also comes with stereo speakers and a 1-year basic limited warranty. It’s operating system is OS X El Capitan which comes with built-apps like Safari, Photos, iMovie, and Pages. The starting price for the 3.3 GHz is $2,299. Dell XPS 8900 tower (monitor sold separately) Processor 6 th generation Intel  Core  i7 processor Operating System Windows  Professional, 64-bit, English (Includes Windows 10 Pro License) Memory 8GB, 2133MHz, DDR4 up to 64GB Hard Drive 1 TB 7200 rpm Optical Drive DVD-RW Graphic Card NVIDIA  GeForce  GT 730 2GB DDR3 Monitor Dell 17 inch UltraSharp™ 1708FP Flat Panel, Adjustable Stand, VGA/DVI Energy Smart Dell Energy Smart Enable Floppy No Floppy Drive Sound Card Integrated 7.1 with WAVE MAXXAudio Pro Keyboard Dell KB216 Wired Keyboard, English Mouse Dell Laser Mouse Warranty & Service 1 Year Hardware Service with Onsite/ IN-Home Service After Remote Diagnosis 48

Above are the specifications for the Dell XPS 8900. Dell describes it as the fastest XPS mini tower ever. Compared to Apple it has a faster processer and also holds more memory, up to 64 GB. It also has a powerful graphic card which will make it easier for companies to design images based on their marketing strategies. Being energy smart is also imperative because it saves power therefore being able to last longer. On the hard drive, it has 1 TB 7200 which is less than the 27-inch iMac. Its sound card has GRAMMY Award-winning Waves MaxxAudio  software and also integrated 7.1- channel, according to Dell.com. Its operating system is of course Windows  Professional and includes a Microsoft Office 30 day Trial. The price for the XPS 8900 is $899.00. This price however does not include the monitor; it is sold separately. Altogether, the price is $1548.99. Considering the fact that the iMac only has 32 GB storage and i5 processor, it would be more efficient to get the Dell XPS 8900 tower. It is energy efficient and is more affordable for companies to invest into. If Macy’s were to invest in the Apple hardware for the new marketing software and fail, they would have a bigger net loss than if they were to invest in Dell. The XPS 8900 tower is a great investment for the new marketing software for Macy’s. 49

Handover Letter Angelique M. Johnson 3119 W 83 rd Pl Chicago, IL Sherese Johnson 11 N State St Chicago, IL Dear Ms. Paige, My name is Angelique Johnson, currently a senior at Virginia State University. First and foremost, thank you for allowing me to observe your marketing strategies and information systems for Macy’s. The information I collected along with the information given to me, I have a great understanding of what your company implements on both the marketing aspects and operating systems. The ultimate task was to implement a new marketing strategy to help improve sales, by incorporating marketing software into the operating systems. This can be done by incorporating upgrading the hardware and software specifications. The update will definitely benefit the company as a whole. I appreciate you taking the time out to be part of this process in helping improve the marketing strategy and information systems for Macy’s. I truly believe that if you thoroughly go through this project, you will realize how beneficiary this new hardware/software system will be in order to improve the marketing aspect of 50

Macy’s. Ultimately, this will generate more revenue. If you have any additional questions, please feel free to contact me. Closing: Thanks in Advance Angelique M. Johnson Computer Information Systems, Major Virginia State University (312) 714-3602 ajoh9163@students.vsu.edu 51

Executive Summary Marketing Implementation Through Information Systems is a project designed to improve Macy’s marketing strategies by implanted a new software through their current Information Systems. This will ultimately help Macy’s increase their sales and gain revenue. Within this proposal, I will be researching different marketing software and also different hardware that will fit this specific need. The issue within Macy’s is that sales are plummeting due to less in-store sales. Many people would rather shop online. From this, it has caused many stores to close down forcing many people to lose their jobs. The use of this this new software and hardware will increase in-store sales and also eliminate other stores from closing down. Employees will play a huge role in this process. The marketing software will run itself once employees make a transaction. From here the software is keeping track of the specific person who made the purchase, basically collecting data on the audience. This ensures consistency on the data being taken. It was hard to incorporate a way for the software to run while employees/managers are on duty. But in actuality, it makes it easier for management to keep track of all this data. With some adjustments I feel that this will be a great addition to Macy’s information system. 52

In order to assist Macy’s, I conducted an interview that will help me get a better understanding of where the issue lies within the marketing strategy. I also wanted to get a sense of what a regular business day is like for Macy’s; just to get a feel of who do they consider their regular customers to be. Once I came up with interview questions directed to these issues, I was able to analyze the information given and how I wanted the system to be set up. I also was able to evaluate what specific hardware I would like this new software , Marketing 360  , to go on. I truly believe that once this is implemented, it will reduce the risk of stores closing and increase in-store sales. The data flow diagram mentioned prior will give a representation of how the data will be collected and processed. The entity diagram shows the responsibilities that the system will hold. This is very important because you will have to understand the certain entities that is needed for this project to be implemented. A strong structure is needed from this along with multiple entities and certain attributes. 53

Conclusion Overall the system will be very feasible to configure. In order for Macy’s to improve their sales and prevent more closing for their stores this marketing software is a must. First, they must purchase the Dell XPS 8900 along with the monitor due to its high processor and 64GB memory. Marketing 360  will be able to work to its full capability, including designing graphics for Macy’s that will attract more customers and ultimately increase sales. It will be running on a WAN which will reach out to other locations in Chicago. I would definitely recommend starting this process as soon as possible. Necessitates include training for employees so they will know how to use the software and newly installed hardware. Again, the new system would definitely be feasible in terms of technical, operational, economical, and scheduling. Once implemented, this can increase Macy’s in-store sales and prevent future locations from closing. 54

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"Wireless Wide Area Network (WAN)." - AT&T BusinessDirect® . N.p., n.d. Web. 28 Apr. 2016. <https://www.wireless.att.com/businesscenter/business-programs/mid-large/wireless- network/wireless-wan.jsp>. "XPS 8900 Desktop." Dell.com . N.p., n.d. Web. 28 Apr. 2016. <http://www.dell.com/us/business/p/xps-8900-desktop/pd?ref=PD_OC> 56