assignment refers to Service Request SR-kf-013, Develop Requirements for Kudler Fine Foods Frequent Shopper Program. Similar to the individual assignment, please ignore the “Expected Results/Impact when completed” section of the service request and focus your answer on addressing the items listed below. A link to the Virtual Organizations can be found on the course Materials page.

The Learning Team will prepare a 12-16 page paper for the complete project which will be turned in on Week 5; assume that the paper is to be delivered to an executive management committee. You will complete a draft section each week and you will receive feedback that you can incorporate into the final paper. Weekly draft papers will not be graded.

Review the Service Request SR-kf-013 for Kudler Fine Foods. Draft the first 3-4 page section of the paper to include the following:

Statement of Scope and Goals: Specify what functions will be included in the project. Identify the goals for the new system (accomplishments you want to meet and not solutions).

Supporting Measures for Success: Specify tangible measures for determining the relative degree of success of the completed project. The measures must correlate with the goals specified in the first section of this deliverable and they are related to the success of the IT solution.

Summary of Project Feasibility: Include specific operational, technical and economic feasibility analysis. Operational and technical issues should specify how each issue will be addressed. The economic analysis must include quantified specific benefit and cost areas (assume you have evaluated specific areas and provide your recommendation based on the results of the evaluation).

Determination of Requirements: Identify the specific analysis methods which will be used to determine user needs.

Copy/Paste the Visio diagrams into your Word paper and also i nclude the original Visio file as part of your assignment and not just the embedded chart.

Continue the draft development paper 4-6 pages to include the following item. Include descriptions to clarify your models:

Proposed System Requirement List: List specific individual system and application requirements in verifiable and objective terms.

List of Confirmed Requirements: Categorize each system and application requirement identified for the Week Two as “mandatory” or “optional.”

Current Business Process Summary: Provide a high-level logical data flow diagram of the current process and explain the process. (Show who does what).

Logical Model of the System: Provide a high-level logical data flow diagram of the proposed system. Explain how this flow is different than the one from the current process discussed on the bullet point above.

Draft the next 4-6 page section of the paper. This should include: Design Trade-off Approach: Specify the tradeoffs among cost, schedule and

performance you evaluated and explain the logic for your final hardware & software solution. For example, a fast, inexpensive solution may not address performance requirements adequately. (chapter 8)

Detailed Design Process and Design Specifications: Specify recommended decisions for software, hardware, network(s), and communications. Include resolution of HCI considerations.

Physical Model of the System: Illustrate and explain the recommended proposed architecture diagram.

When saving this assignment, name it with the team name followed by the letters “wk4”. For example, if your group is Team A, this assignment should be saved as “TeamA wk4.doc”. Copy/Paste the Visio diagrams into your Word paper and also i nclude the original Visio file as part of your assignment and not just the embedded chart.

Service Request SR-kf-013Develop Requirements for Kudler Fine Foods Frequent Shopper Program

Organization:  Kudler Fine Foods

Locations:       All

Requester:     Manager

Description of Request:

Kudler Fine Foods is interested in developing a system to track customer purchases through a Frequent Shopper Program to award loyalty points for redemption.

Background of Request:

The objective of this project request is to track purchases of individual customer’s. The

customer purchases will be tracked and accumulated as loyalty points for redemption by the customer for gift items, specialty foods and other products or services as made available through partnerships with other external companies. The strategic purpose of the Frequent Shopper Program is described on the Sales & Marketing page of the Kudler Fine Foods Intranet site.

Expected Results/Impact when completed: PLEASE IGNORE THIS***********

Create a business/systems requirements document for the development of the Frequent Shopper Program system to meet the objective of this request.

Kudler Fine Foods

Kudler Fine Foods is a local upscale specialty food store located in the San Diego metropolitan area. The company has three locations (La Jolla, Del Mar and Encinitas). Each store has approximately 16,000 s.f. of retail space located in a fashionable shopping center. The stores are stocked with the very best domestic and imported foodstuffs and divided into the following departments:

Fresh Bakery and Pastries Fresh Produce

Fresh Meat & Seafood Condiments and Packaged Foods

Cheese's and Specialty Dairy Products

History

Our founder, Kathy Kudler, was the Vice-President of Marketing for a large defense contractor. Weary of the constant travel and the pressures of corporate life, Kathy was looking for other opportunities. As it happened, Kathy relieved her stress through gourmet cooking and on a shopping trip for ingredients for a gourmet repast, she suddenly realized that there was an opportunity for an upscale epicurean food shop in La Jolla.

Kathy developed a business plan, obtained financing and six months later, on June 18, 1998, the first Kudler Fine Foods opened. Within nine months the store was at break-even and was profitable for the year.

In 2000, a second store was opened in Del Mar and in 2003 our third shop opened in Encinitas.

Human Resources

              

 Organizational Charts

 Job Classifications

 Job Descriptions

 Policies & Procedures

 HRIS  EEOC Reports  

             Employee Files  OSHA            

HRIS System

Kudler uses Quick Books and has outsourced payroll processing to Intuit (maker of Quick Books). Intuit’s database tracks the following information for each employee.

Personal information, such as name, address, marital status, birth date, etc. Pay rate Personal exemptions for tax purposes Hire date Seniority date (which is sometimes different than the hire date) Organizational information (store for budget purposes, manager’s name, etc.)

Changes to this information are submitted in writing (on special forms) by the employee’s supervisor and are entered into the system by an accounting clerk. The accounting clerk maintains a file with the appropriate tax forms for each employee and keeps the originals of any changes to employee data.

Employees fill out time sheets manually each week, which are approved by the store manager. These time sheets are faxed to accounting, where the data is entered for payroll purposes. Corrections to the

time sheets must be approved by the direct supervisor and the store manager.

Each store manager has all of the employee files for the employees in the store — there is no central file area. These are kept in a locked file and typically include the following information:

Job application/résumé Performance reviews (if there were any) I-9 forms Any disciplinary memos or performance management issues

Managers are responsible for tracking any requests for time off and vacation. There is no automated system for tracking vacation time used.

Store managers handle much of their own hiring, with the help of the HR recruiter. Applications of people not hired are kept in files by the HR department.

Workers’ compensation is managed by a third party provider, which keeps its own records.

The HR manager keeps an Excel spreadsheet with the results of job analyses, salary surveys, and individual compensation decisions.

The HR assistant keeps information about complaints, grievances, harassment complaints, etc. in locked files in the HR office at headquarters.

Web linkhttps://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler/HR/KudlerHRHRIS001.htm

Information Technology

 Home | Databases | NetworksDownload Kudler Fine Foods Access Database

 

Table Description

CustomerThe Customer Table contains demographic data for each of Kudler’s customers. The data in this table is used to access the name and address of customers for order processing and for special mailings for anniversaries and/or birth dates, etc.

Inventory The Inventory Table contains the components that make up an Item. It is used for managing

inventory and determining the availability of ingredients that go into prepared items, such as bakery products, etc.

ItemThe Item Table stores information pertaining to products that may appear on an order. It describes goods that can be purchased from a Store.

OrderThe Order Table is used to record information pertinent to each Order placed with a given store. Each order will have one or more entries in the Order Line Table associated with it.

Order Line

The Order Line table contains detail on items appearing on an order. One or more Order Lines are associated with each order and each Order Line references an item being purchased with its description, quantity, price, etc.

StoreThe Store Table retains data for each store location, such as name, address, phone numbers, emergency contacts, etc.

SupplierThe Supplier Table contains data concerning wholesalers, vendors and other suppliers from whom inventory is procured. These goods are used to prepare saleable items or are simply resold in their acquired form.

Tax Table

The purpose of the Tax Table is to provide tax rates applicable to orders placed at a given store.

TenderThe Tender Table provides a means to record the methods of payment used for an Order. For example an order may be paid for partially in cash and partially by credit card.

Sales & Marketing

Home | Marketing Overview | Sales Plan - 2007 | Market Surveys | Communications

Kudler Fine Foods has experienced significant growth and is now focused on expanding the services, improving the efficiency of its operations and increasing the consumer purchase cycle as a means to increasing the loyalty and profitability of its consumers.

Strategic Objective: Increase Loyalty and Profitability of Consumers

Expanding Services (Revenue Increase) – Kudler is offering parties in the store to show customers how to prepare specialty foods. The draw for the consumers is to be trained by world-renowned chefs, local celebrities, other food experts, and even Kathy Kudler herself, and to be invited to exclusive, upscale events. The anticipated outcomes will be to increase the customer purchase rate of high margin food and beverage items and to get consumer to make an evening at Kudler Fine Foods part of their social network. This increased time in the store will increase the overall revenue per visit and increase the frequency of visits to the store. Consumers will receive multiple entries in high-ticket item contests by bringing a friend to the parties. While the firm’s preference is to have the events in-store, guests can have Kudler cooking classes at their home for a price premium. Programs such as this encourage consumer loyalty and word-of mouth marketing.

Frequent Shopper Program (Revenue Increase) – Kudler’s new initiative is tracking purchase behavior at the individual customer level and providing high value incentives through a partnership with a loyalty points program. The customer purchase behavior patters will help Kudler refine its processes and offerings to best satisfy their valued customers. Price is not the primary differentiating factor for Kudler consumers; these consumers are focused on quality and finding specialized items. Therefore, rather than providing everyday discounts to the customers for their purchase frequency like lower end markets, Kudler has partnered with a loyalty points program to provide customers with points which can be redeemed for high end gift items, airline first-class upgrades, or other specialty foods.

Increased Efficiency (Cost Reduction) – Kudler's is now in a position to focus on internal (both front line and behind the scenes) processes, and how those can be improved to deliver increased value to the customer. From a service perspective, Kudler is benchmarking Nordstrom department stores. In addition, the firm is developing employee training programs and integrating new software systems to facilitate the effort. Marketing has encouraged the purchasing department to find ways to reduce costs of ordering foods and minimize the amount of food to be stored, while also having a zero stock out policy. In response, purchasing has developed a supplier relations program and has solicited the help of marketing to help roll out the program.

Historical Sales Data and Financials

Historically, Kudler Fine Foods has tracked information such as dollar value and profit margin per transaction, dollar sales and profit levels by day, and dollar sales and profit margins by item. However, in an effort to leverage the information to create a more intimate relationship with their customers, the firm is integrating a system to track customer purchase behavior over time. The firm is in the process of developing this system now.

Marketing Budget

The marketing budget is primarily comprised of new initiatives, marketing communications, and marketing research.

New Initiatives

Research, development, and rollout of new programs Cooking Classes Frequent buyer points program Supplier relations program

Marketing Communications activities include:

Radio, Newspaper and Television advertising Public relations, events, and sponsorships

Marketing Research expenditures include:

Market size / opportunity studies Food marketing trends studies Services benchmarking study

Growth Strategy

Within the next 12 months, Kudler plans to increase customer loyalty by offering added high-margin services, leveraging the firm’s better understanding of customer purchase patterns, and providing more efficient operations. Profitability will also be increased by cost reductions accomplished through supplier partnering programs. New customers will be acquired through social network marketing and word of mouth.

Copyright 2004 © by Apollo Group, Inc.

Introduction

Kudler Fine Foods is a much renowned food store, established at the different locations of

California. The main focus of the store is to have ‘profit maximization’ by providing quality products

at appropriate prices, in comparison of the competitors. The firm also wants to satisfy its clientele.

Through this objective, the store wants to acquire major expansion. It currently wishes to enlarge its

services by attaining perfection in the operational activities. In addition, it also desires to increase the

loyalty and profitability of its consumers by increasing the ‘consumer purchase cycle’. The company’s

latest idea to increase its revenue is to implement a customer rewards program that will track customer

purchases and help identify trends that will allow Kudler Fine Foods to tailor its offerings to better

satisfy their customers. Prior to implementing the customer rewards program, the company will need to

consider development issues while also performing a cost to benefit analysis for implementation of a

successful ecommerce website.

Frequent Shopper Program

In regard to the electronic commerce, the Kudler Fine Foods Sales and Marketing Department

is initiating a Frequent Shopper Program to track customer purchase patterns and offer shopper

incentives through a loyalty point programs. The beginning of this program will assist the Kudler Fine

Food in inspiring customer loyalty and react to customer shopping orientations. For the customers of

Kudler Fine Foods, speciality items are more vital than the price of the items they are intended to

purchase, so in this case rather than offering daily discounts for purchase frequency, the company has

united with a loyalty points program to reward customers with redeemable points for high-value gift

items, airline advances or other specialty foods.

By using a rewards program, Kudler Fine Foods will be able to track customer purchases and

observe trends in those purchases. Customers will use a rewards membership card to identify

themselves with the purchases they are making. After a few purchases, customers could be entitled to

collect rewards like airline seating upgrades, expensive gift items, or free specialty foods. Currently,

the Kudler database system includes a table for customers, but that database contains only demographic

information. This database could be expanded by adding a table of transactions; this table can use a

member identification number as a foreign key, which could be the primary key in the customer

database.

Program Goals and Supporting Measures

The prominent goals of the Kudler Fine Foods Frequent Shopper program is to encourage

customer loyalty, to better react to customer's buying demands and to augment food governing

skilfulness. A successful implementation of the program should augment revenue over time by

modifying loyalty and meeting customer needs and decrease costs by amending inventory procedures.

The initiative should be implemented within specific time period along with the involvement of

following stakeholder representatives as with their contribution the program will be implemented

successfully:

Each location of Kudler Fine Food: The program needs to be initiated at each location of the

Kudler Fine Food.

Purchasing Department: The Company’s purchasing department is needed to use the data

collected by the new program to forecast food orders.

Sales and Marketing Department: The representatives of sales and marketing department are

needed to include as they will be the elementary customer of the program.

Information Technology Department: The Company’s IT representatives must be concerned in

development of requirements as they will help in ascertaining the feasibility of the requirement.

Loyalty points program: A representative from the loyalty point’s program must be called for to

describe new ideas or the experienced ideas.

Summary of Project Feasibility

Assessing the feasibility of the Frequent Shopper Program enhancement is an important step for

Kudler Fine Foods to determine the chance of success for the project. A “feasibility study focuses on

helping answer the essential question of should we proceed with the proposed project idea?” (Hofstrand

& Holz-Clause, 2009). Three specific types of analysis have been used to determine the project

feasibility: operational, technical, and economic feasibility.

Operationally, the Frequent Shopper Program should integrate into the existing workflow

without any significant problems to operations. The functionality of the new system will require only a

small amount of user training so there is no issue with computer competency. There will also be no

loss of control by the staff or management; in fact the change will bring an added level of customer

interaction which could enhance customer attitude at the point of sale. This change will also not negate

or change any existing workflows that are critical to the mission success of operations.

Though the design of the network infrastructure is aging, the addition of a Frequent Shopper

Program will have little to no impact on existing capabilities. As long as all of the risks involved in

developing the system are identified, the development team should have no problems in designing a

successful program. The program will likely be developed as an enhancement to the current POS

system so that it will easily integrate with existing key components. Kudler also utilized a POS server,

which would be a good staging ground for the Frequent Shopper database.

The economic feasibility has been determined by performing a cost/benefit analysis. The

cost /benefit analysis has helped the project team in determining whether or not the proposed program

will be beneficial to the company. The project team identified the total expenses of the project by

looking at available resources and estimated development costs. An analysis was also performed to

determine the total benefit that the new program would be to the organization. It was determined that if

the development and implementation of the program were a success, the organization would bring in at

least a 16% return on investment.

Expense Amount Project Team Salaries $50,000 Training $4,000 Support $10,000 Implementation $5,000 Total Cost $69,000 Benefit/Cost Saving AmountIncreased Customer Loyalty $75,000 Efficiency in Inventory Controls (Reporting) $5,000 Total Benefits and Savings $80,000

System Requirements for Frequent Shopper Program

There are various types of proposed system requirements, which should be taken in

consideration by the Kudler Fine Foods. A system requires to be developed in two sides or the areas i.e.

hardware and software. Hardware is related to the development of the system; while software is related

for the tracking and the information database. The following are the layers or the requirements to

establish hardware system for the implementation of the ‘Frequent Shopper Program’ –

Centralize the data management system hardware – It is the most important requirement of the

system to design the ‘Frequent Shopper Program’. The centralize system will help to upload

and verify data for all the stores. The centralized management system will also assist to

integrate the data of customers. The centralized system will also enable the Management to

update the data according to the change in the customer requirements and will also cause the

elimination of duplication activity.

Content servers in hardware – The centralized data management system hardware should be

used several servers for database. The content server will help to store the information. It will

also be used for the ‘backup’ purpose. It will help to save the information in case of the failure

of hardware or any other incident.

Front end web server- There is also a need of the front end web server, as it will help the

customers to redeem their earned points. It will enhance the effectiveness of the point system

(Reynolds, 2004).

Store server – The points of the customer can be added on the basis of the transactions

information. The store server will help to transfer the data and will also help to download the

customer’s information to the stores, when they need.

Loyalty card – Loyalty card with a bar code will help each of the teller in tracking the customer

purchases and points.

The company also necessitates some software to increase the effectiveness of the program. The

software such as tracking software, data storage software can be used to heighten the efficaciousness of

the program. The management of Kudler Fine Foods can also use the ‘Customer Relationship

Management’ (CRM) software for its frequent shopper program because the main objective of the

program is to increase the sales and the profit of the company.

The CRM software will help to reduce the cost of direct marketing and will increase the

revenue for Kudler Fine Foods. With the help of this software, the customers can be identified easily,

which will cause an increase in the profits of the company. It will also help to increase customer

retention. The security software will help to protect the firm from the hacking of information, of the

clientele (Tipton & Krause, 2006).

In this way, Kudler Fine Foods can implement its frequent shopper program in a more effective

and efficient way.

ConclusionIn order to connect with the organizations customer base, Kudler Fine Foods has recognized the

need to integrate a frequent shopper program to increase loyalty. With returning customers, Kudler

will be able to develop long-term relationships that will both benefit the company and the customers

who will receive perks and pricing advantages. The organization is also read to take on the task of

designing and developing the system, the project team has completed the initial task of determining the

requirements and feasibility, and will begin to come together to move the project forward. With a little

bit of careful planning and a good management team, the new frequent shopper program will be a great

success.

ReferencesTipton, H.F. & Krause, M. (2006). Information Security Management Handbook. CRC Press.

Hofstrand, D. & Holz-Clause, M. (2009, October). What is a Feasibility Study? Retrieved January 17,

2009, from http://www.extension.iastate.edu/agdm/wholefarm/html/c5-65.html

Reynolds, J. (2004). The complete E-Commerce Book: Design, Build & Maintain a Successful Web-

Based Business (2nd Ed.). Focal Press.

Week 3

Kudler Fine Foods Frequent Shopper Program

Kudler Fine Foods is a very popular food store located at different parts of California. The main

objective of the store is to have profit maximization by providing quality products at appropriate prices

in comparison to the other competitors. Through this objective, the store wants to have significant

growth. The company now wants to expand its services by improving the efficiency of its operations. It

also wants to increase the loyalty and profitability of its consumers by increasing the consumer

purchase cycle. Now Kudler Fine Foods wants to expand its business through the utilization of a

Frequent Shopper Program. The Frequent Shopper program is currently in design with a working high-

level model up for proposal.

Proposed System Requirements List

The system shall have three tiers of users: Customers, Users, and Managers.

o Users in the “Customers” tier represent customers of Kudler Fine Foods and account

holders. Their visibility into the system will consist of viewing the Frequent Shopper

Points balance on their account and redeeming Frequent Shopper Points for rewards.

o Users in the “Users” tier represent employees of Kudler Fine Foods. Their visibility

into the system will consist of viewing the Frequent Shopper Points balance on an

account, processing credits to an account at the time of sale, and processing debits to an

account at the time of a return.

o Users in the “Managers” tier represent employees of Kudler Fine Foods with a

managerial job title. Their visibility into the system will consist of viewing the Frequent

Shopper Points balance on an account, processing credits to an account at the time of

sale, processing debits to an account at the time of a return, and processing adjustments

to an account as defined by Kudler’s business process.

Each customer shall be assigned one and only one unique account number in the Kudler Fine

Foods Frequent Shopper program.

At the time a purchase is made at a Kudler Fine Foods location, Frequent Shopper Points will

be credited to the account.

o The number of Frequent Shopper Points credited to the account will be equal to the

dollar amount of the purchase, before tax, rounded down to the nearest dollar. For

example, a purchase of $10.00 would yield 10 points. A purchase of $10.01 would yield

10 points. A purchase of $9.99 would yield 9 points.

o Any purchase totaling less than $1.00, before tax, will yield 0 points.

o If an item is returned for which Frequent Shopper Points were originally credited to an

account, a reversal will occur equal to the dollar amount of the returned item, before tax,

rounded up to the nearest dollar unless this reversal would result in the account having a

balance of less than 0 points. In this case, a debit transaction will occur equal to the

total number of points on the account. For example: If an account has 10 points, and a

customer returns an item worth $6.00 for which points were originally credited, a debit

of 6 points will occur, leaving a balance of 4 points. If an account has 10 points, and a

customer returns an item worth $6.01 for which points were originally credit, a debit of

7 points will occur, leaving a balance of 3 points. If an account has 10 points, and a

customer returns an item worth $11.00 for which points were originally credited, a debit

of 10 points will occur (as a debit of 11 points would result in a negative balance).

When Frequent Shopper Points are redeemed, Frequent Shopper Points will be debited from the

account.

o The number of points on an account can never total less than 0.

o If a customer attempts to claim a reward worth more points than are currently available

on the account balance, the system will display a message indicating that there are

insufficient points to process the transaction. No debit will occur.

o When a reward is claimed, a debit to the Frequent Shopper Point balance will occur that

is equal to the point value of the reward. For example, if an account has a balance of 10

points, and a reward worth 3 points is claimed, a debit of 3 points occurs leaving a

balance of 7 points.

The system must provide the ability for users to query an account on demand.

o When querying an account, the user may specify the customer’s first and last name as

search criteria, the customer’s phone number as search criteria, or the account number as

search criteria.

When an account number is used as search criteria, one and only one result will

be returned to the user.

When First and Last name are used as search criteria, all records that match both

criteria shall be returned to the user. The user may then select the appropriate

account record to view.

When Phone Number is used as search criteria, all records that match both

criteria shall be returned to the user. The user may then select the appropriate

account record to view.

o The current Frequent Shopper Point balance will be displayed to the user once an

account record has been selected.

The system must provide the ability for users to apply adjustments to Frequent Shopper Point

balances.

o Only users in the “Managers” tier shall have access to processing adjustments.

o An adjustment may be a credit or a debit to an account balance.

o At the time an adjustment is processed the following input must be provided from the

user:

Debit/Credit

Number of Points

Reason for adjustment

o The reasons for adjustment shall be a set of predetermined values that the user must

select from. These values are:

Customer Retention Award

Reversal of Incorrect Transaction

Over-charged for Purchase

Under-charged for Purchase

o In the event a debit adjustment is applied, the resulting point balance may not be less

than zero.

If a user attempts to process a debit adjustment that would result in the point

balance being less than zero, a message must be displayed, “This adjustment

would result in a negative point balance.” No transactions occur.

Legal Considerations of Frequent Shopper Program

Doing the business through Electronic Commerce, Kudler Fine Foods has to consider several

legal considerations in the development of its Frequent Shopper Program. Electronic contracts for

online business transaction are legally bound all over the world. There are several Legal Considerations

in the E-commerce which are as follow:

According to the Privacy and Electronic Communication Regulations, an opt-in consent

procedure is required for making commercial emails and e-commerce (Develop an e-

marketing Plan).

According to the Information Principle, the business organizations are required to verify

specific information about their business which it wants to provide to the recipient on

the online service to the E-Commerce Regulations.

The business organizations have to make their advertising and promotion strategies

according to the guidelines of the E-Commerce Regulations.

For the approval of an online order, the business organizations are required to have

physical signatures.

For the E-Commerce the business organizations have to consider the taxation laws of

the Native Country.

All the customers who want to make business contracts online should be provided the

facility of printing and storing a copy of all the terms and conditions.

To copy the business processes and the intellectual properties of the business

organizations is also important legal consideration of the E-Commerce (Develop an e-

marketing Plan).

The mentioned Legal Considerations are required to be considered under the Frequent Shopper

Program of Kudler Fine Foods Store.

Ethical Considerations of Frequent Shopper Program

In addition to the legal considerations, the business organizations have to implement several

ethical considerations in their frequent shopper. Some of the important ethical considerations are as

follow:

The customer privacy is the most important ethical consideration in the electronic

commerce (Merryweather, 2000).

The protection of the sensitive and personal data of the corporate as well as the

individuals is also an important ethical consideration of the e-commerce.

Creative activities related to pornography on the name of e-commerce are not allowed

according to the ethical considerations of the business.

Breaches of any kind of contract on e-commerce are also an important ethical

consideration.

Unwelcome intrusion is also considered unethical in the field of electronic commerce.

Under bricks and mortar model, the business organizations which use electronic

commerce consider the privacy protection of channel of distributions and information

about the customer major ethical considerations.

The information provided on the websites of the business organizations should be

reliable and authentic for the customers.

Thus, these are the major ethical considerations which Kudler Fine Food Store should include

in the development of its frequent shopper program under electronic commerce.

Security Considerations of Frequent Shopper Program

In addition to the Legal and Ethical Considerations, Kudler Fine Foods Stores is required to

implement the most important aspect of E-Commerce in its Frequent Shopper Program which is a

security consideration. These considerations are a requirement to the project. The main Security

Considerations are as follows:

The business organizations operating E-Commerce have to secure their data. The

customers, who do transactions, ask the organizations to secure and save all the

electronically sent information about them, especially related to financial risks.

Protection from the Cyber terrorism is also an important security consideration in E-

Commerce (IP Infringements on the Internet - Some Legal Considerations, 2007).

The technologies used by the different organizations should be protected on their

Websites to be accessed by the invalid people.

The business organizations are required to make registrations legally particularly in

different physical locations on the Internet.

Different unrelated owner can use identical trademarks legitimately in different

locations due to the presence of territoriality of trademark rights. This is a major security

consideration in e-commerce, as on Internet, the trademarks are potentially visible from

anywhere in the world.

The efficient imposition of the intellectual property rights in the business transactions on

E-Commerce is also an important matter under security considerations.

Thus, the given Security Considerations are very important for Kudler Fine Foods Store for the

development of its Frequent Shopper Program.

For the development of the Frequent Shopper Program, the store will have to make

expenditures in different fields. The main expenditure fields will be related to marketing. Under this,

the expenditure on advertising and market research will be major fields of expenditure. The store would

have to make some expenditure on the online registration and website development. Some other

expenditure would be the fulfillment of legal formalities.

The justification of all these expenditures can be done by the financial analysis of all the

expenditures. The Financial Analysis of the expenditure can be done by making the budget of all the

expenditures and revenues of the store. By the analysis of this budget, the store would be able to know

that either the expenditures would increase the revenue of the store by comparing the revenues of the

last years. If the revenues will be higher than the past year, the expenditures will be favorable for the

store. The revenues can also be compared with the sales plan of the store.

Thus, with this Financial Analysis Kudler Fine Foods Store would be able to justify to all its

expenditures for the development of Frequent Shopper Program.

Current Business Process Summary

Logical Model of the System

The inclusion of the Frequent Shopper module into the existing system will provide a few

changes to functionality and workflow. In the new model, the transaction is initiated with the

customer being asked about enrollment in the Frequent Shopper program. If the customer is not

enrolled, they have the option to sign up and obtain a card immediately at the point of sale. If present,

the card is swiped into the system to retrieve any existing Frequent Shopper points that the customer is

able to utilize if they choose. At the end of the transaction, updates to the customers Frequent Shopper

points will be printed on the receipt. The transaction information will eventually be trickled up to the

POS server database which will have new canned reports used to help determine new rewards based

upon customer purchasing habits.

Conclusion

Based upon the requirements, the logical flow of the system has been designed to provide the

most minimal impact to the workflow. The new system will slightly increase the time that the

customer spends at the check-out register, but the majority of this delay will occur only on the

customer’s initial enrollment into the program. The delay to the workflow will eventually even out as

more customers are enrolled in the program and the store staff becomes familiar with the process. The

design will also give a few new reporting tools to management and they will be able to identify trends

and adjust the program around the data collected to maximize the programs efficiency.

Here is the comments from the instructor about our week 2 assignment:

The paper includes very good sections on goal/scope as well as project feasibility.  I do not see the section on measures of success, and the last section needed to identify how you will go about identifying the requirements.  The paper did not have to specify what the requirements are (that is for week 3) but instead you need to explain the process and method you will use - you will need to re-write this section and add the missing section.

Need your help getting week 2 week 3 revision and complete week 4 please APA style and provide

References