barrett school store mobile phone application proposal
DESCRIPTION
One of Barrett, the Honors College at ASU's most popular services is its school store, stocked with various Barrett merchandise. Our team noticed a number of ineffiencies in the store's business processes. Our group proposed a phone application that could automate several of these processes, overall increasing the store and the school's profitability.TRANSCRIPT
Fabeeha AhmedJosh Braaten Jake GidneyParth KichlooSharon Wu
BARRETT SCHOOL STORE APP
Barrett School Store- sells Barrett merchandiseFew students know about the store’s existenceNo one knows the dates the store opens Put video here.
INTRODUCTION
Store sets up around the end of every month in an available classroom.
Primary advertising strategies: Word-of-mouth Putting up flyers
Limited to on-campus, Tempe Barrett students Total number of Barrett students at ASU: 3,895 On-campus Tempe Barrett students: 1,558 Number of students who follow through: 342
Limits the store to only 10% of its main customer install base
Lowers profi tability
CURRENT BUSINESS PROCESS
Automated process saves employees time (from having to put up flyers) and money (printing flyers)
Effi cient and more eff ectiveBusiness process of “soliciting customers” involves:
Gaining new customers: the app reaches out to all Barrett students across the four campuses
Retaining current customers: students will be notified about the store’s opening and can order merchandise ahead of time, ensuring their satisfaction Rewards system: Each time a student orders through the app,
they receive a “Barrett Point” Every 5 Barrett Points, the student gets a free item with their
purchase
JUSTIFICATION FOR AUTOMATION
Available for iPhone or Android phones for free
Students register using their ASUrite ID and password
Pulls information from general ASU databases
Sends emails and push notifi cations to let students know the dates the store will be open
Uses the school store’s merchandise database so that students can place orders ahead of time
Once the user completes fi ve orders, an email will be sent giving them a ticket for a free item with their next purchase pickup
BASICS OF THE APP
“AS IS” VS. “TO BE”Barrett Parent Sets up store in a
classroom
Sets up poster (advertisements) Student Do they see the
poster?
Student Goes to the Store
Do they want to go?Yes
Yes
They do not know about the store
NO
They do not want to go
NO
Search for shirt size Do they have it?
Buy the shirt?
Yes
Student pays Yes
Cashier (Barrett Parent)
Handles transaction
Inputs info (sales) to repository
Leave
No
REPOSITORY CHECK
No
• Store employee puts up advertisement• Student does not see, does not go• Student sees, decides whether or not they go• Students goes to the store• Student browses for merchandise• Employee looks for specific item or size• If the store doesn’t have it, student leaves unsatisfied
and may not come back• If the store does have it, student may not buy it, but
come back again, or may buy it and come back again
“AS IS” VS. “TO BE”
STUDENT
CHECK ASURITEID: Allows for updates on times and hours
PLACE MERCHANDISE ORDER
STUDENT/CUSTOMER DATABASE
Message to Solicitation Process: “Email-Notification to customer”
Message to Merchandise Process: “+1 Men’s Shirt”
“+2 Barrett Lanyards etc.”
Barrett School Application
Downloads App
Gets Barrett Point
• Student downloads application and logs on with ASUrite ID
• Student uses app to order ahead of time
• Store receives and knows what items to ship
• Application notifies student of store opening
• Student picks up merchandise from store and pays there
• Application can email back a receipt
• Application emails students and employees letting them know they have received a Barrett Point
Hardware: Mobile phone, LCD display, touchscreen, keyboard, ASU server
Software: iOS/Android OS, MySQL and PHP, HTML, CSS, JavaScript, Apple Push Notification Service
Data: ASUrite ID, name, order, ID number, age/year in school, order history, as well as the store’s merchandise and current stock and availability
Procedures: Students download app and register with ASU ID, order merchandise. Barrett store employees use databases to process order reservations and get right amount of merchandise for next shipment
People: Barrett students, faculty, parents
IS COMPONENTS
COST BENEFIT ANALYSIS
• Application utilizes ASU’s servers and Internet• The benefits over 5 years would be $852,684.49 with a projected
1% increase in revenue each year. • There is an estimated 1% increase in revenue each year because
as more and more students come to ASU and hear about the app, there will be more students who will download the app in order to more efficiently buy clothes from the Barrett store.
• No loss of customers or app users• The discount factor can also be called the real interest rate, thus
with the 10% discount factor (interest rate) in mind the actual cost of the app would be $337,151.62 and the actual benefit (revenue) of the app would be $645,270.80 yielding a net present value (profit) to be $308,270.80 in the first 5 years of using the application.
COST BENEFIT ANALYSIS
• Application uses ASU’s server and internet• Programming app on our own, so actual production of app is a$100
Apple Developer account fee and an annual $30 domain registration fee
• Costs total $70,0000 to manufacture items for one store opening plus $120 shipping
• We estimate that at least 50% of Barrett students, or about 1948 students, will purchase at least one item, resulting in an expected income of $165,537.50.
• Students would not have to pay in order to purchase the app on their smartphones–the app would be free.
Takes physical retail store and puts it online, making it accessible for the general public
Companies like Apple, American Eagle, Gap, and Costco have done similarly
Makes customer experience more effi cient and satisfying
OTHER RELEVANT APPS
Killoren, Lexie. Personal interview. 5 Sept. 2012.
"Barrett Facts and Figures." Barrett, the Honors College at ASU. Arizona State University , n.d. Web. Sept. 2012. <http://barretthonors.asu.edu/about/ facts/>.
"App Maker." Appmakr. N.p., n.d. Web. Oct. 2012. <http://www.appmakr.com>.
REFERENCES