System
Analysis and Design for Target
Analysists
use software development methodologies to organize, manage and track the
progress of new information systems. Analysis often follow the systems
development life cycle (SDLC) which outlines the development of an information
system. The SDLC has four phases: planning and selection, analysis, design, and
implementation and operation (Valacich et al., 2015). During the first phase,
planning and selection phase projects are identified and selected. An
organization can use different methods to select a project by comparing
proposed system benefits with its needs. Along with reviewing the new system’s
tangible benefits, an analyst completes a feasibility assessment to justify the
system’s expenses and constructs the baseline project plan (Valacich et al.,
2015). During the analysis stage, the analyst determines system requirements,
data flow diagrams (DFDs), and an entity-relationship (E-R) diagram to assure
that she fully understand the system’s data needs. The design stage involves
designing input forms or output reports that the system or users require. The
final implementation and operation stage involves testing, documentation,
training, support, and maintenance (Valacich et al., 2015). An analyst can create
an upgraded beacon-enable mobile application for Target that is efficient and
precise by thoroughly completing each stage of the SDLC model.
System
Overview
Companies spend
millions of dollars every year on in-store promotions in hopes to attract and
engage consumers (Hendrickson & Ailawadi, 2014). The integration of physical stores with the
digital world is a challenge for companies. However, retailers who successfully
bridge mobile devices to the retail shopping experience have a competitive
market advantage (Thamm, et al., 2016). Smartphones provide a platform
for these connections when paired with beacons. Beacons are devices that are
capable of communicating with smartphones and other Bluetooth-enabled devices. Target can collect location data
such as how many consumers are in a store, their route within the store, and
how long each consumer shops when customers use the beacon-enabled device
(Tsai, et al., 2017). By collecting more insightful analytics Target will
better understand their consumers.
A system is
a set of business components used working together for a purpose (Valacich et
al., 2015). The purpose of the new beacon-enable mobile application is to
market directly to Target’s consumers. In the past, marketing efforts have
focused on products and sales, but the new marketing age focuses on consumer
experience and product differentiation (Tsai, et al., 2017). With a
beacon-enabled mobile application, Target can enhance a shopper’s experience by
sending personalized promotions and product recommendations directly to the user’s
phone while in-store. Currently, Target uses their marketing budget towards
indirect marketing efforts to target consumer segments online and in-stores
with advertisements, selective product and ad positioning, and in-store
displays. Beacon technology targets these customers
directly and may reduce the costs of expensive promotional campaigns that may
not reach the intended consumers.
A beacon-enabled mobile application will help Target reach
consumers directly with precision and personalization. Target promises
“surprises, fun, ease and inspiration at every turn, no matter when, where or
how you shop (Target Corporation, 2020, para. 2). Beacon technology facilitates
this consumer experience through innovation and consumer-specific
communications
Systems
Planning and Selection
Stakeholders
The stakeholders for the new mobile app are the end
users, beneficiaries, direct users, and secondary users. The end users and
beneficiaries are Target’s customers and vendors as this will alter the way a
consumer shops and vendors promote products. Direct users are Target employees
whose workflow will change with the new system (Concepta, 2018). The marketing
team and store managers are direct users. Secondary users depend on the new
system to perform their jobs, for report generation and other secondary
functions (Concepta, 2018). Secondary users for the new system are various
departments within the company such as sales and IT.
Requirements Determination
During the planning stage the analyst gathers information from the
stakeholders and determine the deficiencies within the current Target App and
promotions to establish the needs to the stakeholders and app users. It is
necessary to gather this information thoroughly from different sources to fully
understand the requirements. An
analyst will interview subject experts within an organization for helpful
feedback. A good interviewer is impartial, with a keen attention to detail. The
interviewer should question everything without any preconceived restraints and
view the organization and processes in different ways to gather all the
necessary information (Valacich et al., 2015).
An analyst may ask interviewees about their work, the types of information
they process in performing their duties, or to understand the direction of the
company as shown in Figure 1.
Figure 1: Interview
questionnaire
1. Which departments use or obtain information from the current mobile app to perform their jobs?
2. How is the data delivered, received, and reported to the employees who use them?
3. Are there any legal issues that require consideration upon the new build?
4. What are the company's guidelines and policies for data-handling?
5. What deficiencies do the current system have?
6. Are there any reoccurring errors with the current system?
7. What do you need or need to prevent from occurring from this new system?
8. What are the most important features of the new or current mobile application?
9. If there were no limits, what do you think a mobile application should do?
10. Will this application improve your job or make it more difficult?
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Next, the analysts can
observe how direct users interact with the current system and perform their job
functions. The marketing team can demonstrate how Target’s proprietary product
recommendation software works and how the team selects promotions. Internal documents
will contain beneficial statistics such as number of current mobile application
users, online and in-store sales, and user-reported errors to help the analyst
understand the number of users and app volume that the system requires. The
analyst can observe how the mobile application is currently used by customers,
conduct an online survey for customers, and interview a consumer focus group
about current application usage and issues. An analyst can obtain internal
documents like marketing reports that will allow the analyst to understand the
type or size of promotions the system needs to receive from the beacons and how
many system users there are at various times from in-store transaction reports.
The
upgraded mobile application needs indoor-mapping capabilities and the ability
to connect with and receive beacon communications via mobile blue tooth
technology. The application will store the user history and demographics to a
secure cloud, which is accessible by the marketing team and other designated
employees. The new system must be able to receive sizable promotional alerts. Target’s
research shows that users want applications that are useful and easy-to-use
(Tsourela & Nerantzaki, 2020). Target already has a current app that users
are familiar with, so the new beacon system needs to work with the current app
to provide a seamless transition for the end and primary users.
Joint Application
Design
Joint
application design (JAD) is a newer requirements determining method that began
in the late 1970s. The primary function of JAD is to gather information from a
group of people simultaneously (Valacich et al., 2015). Researchers Zachariah
and Nonyelum found in their study of various determining requirements that
collaborative techniques are the most used techniques for information gathering
(2020). JAD is an effective method if the analyst is highly-experienced with
the system and the stakeholder has a high level of availability and articulacy
(Zachariah & Nonyelum, 2020). Since there are many stakeholders for
Target’s new mobile app, JAD is a faster approach to collect the information
needed. A JAD session is faster than individual interviews as all the users may
address similar needs, requirements, and current system issues within one group
session. If the analyst schedules a JAD sessions with groups, then each group
may collectively address issues that would not be addressed in a one-on-one
interview.
Scope
and Feasibility
Figure 2: Project Scope statement
Problem/Opportunity Statement
The internet and e-commerce provides consumers various products, e-tailers, and choices, and retailers may find it challenging to reach consumers at the crucial decision-making points. The rise in e-commerce has changed consumer shopping behaviors, which causes a decline in customer loyalty and revenue for retailers (Linzbach et al., 2019). Studies have shown that e-marketing, mobile-marketing, and direct marketing improve consumer retention, equity and customer lifetime value (Kolah, 2013). AI and beacon technology strengthen the relationship between the organization and customers (Yadav & Paylou, 2020). Updating the current Target mobile app with beacon technology will allow the company to connect with consumers at these critical points.
Project Objectives
To enable Target to connect with their consumers though their mobile devices at specific contact points within their retail stores. The application will use historical consumer data to send more personalized targeted ads and promotions directly to users, thus increasing the effectiveness of the organizations marketing efforts. The application will create a unique value proposition for Target’s retail stores by creating a different shopping experience through the integration of the digital world with physical stores.
Project Description
The new mobile application will collect data on the user’s purchase history in-store and online, use that consumer-driven information to make future product recommendations. The system will send selected product suggestions and promotions to the user when the user is near specifically- positioned beacons within the physical store.
Business Benefits
Consumer-driven analytics that create a more complete consumer profile.
Data collected to analyze and create consumer-specific targeted ads.
Improved marketing efforts.
Improved consumer retention and loyalty.
Competitive market advantage through innovative technology.
Project Deliverables
Beacon-enabled mobile application
Integration with current analytics and recommendation software.
Consumer-tracking capabilities and data collection
Training procedures
Estimated Project Duration
6 months
Figure 3:
Baseline Project Plan report
BASELINE
PROJECT PLAN REPORT
1.0
Introduction
- Project
Overview
Project Scope:
to update the current Target mobile app so it is compatible with and can
communicate with beacons that are installed within retail stores. The company
wants to test pilot the new technology in 20 retail stores, eventually
implementing the new system to all stores and users. Justification:
to innovate and personalize the retail shopper’s experience, improve company
marketing efforts and consumer retention while collecting meaningful analytics
and bridging technology with brick-and-mortar stores. Resource Requirements: 12 beacon lights to be installed per store,
access to the current application, demographic and user data for current app
users and selected stores, and the IT team and code for current app, marketing
analytics including the proprietary product recommendation algorithms, and
physical access at the selected locations for installation. Schedules: The project will upgrade the
new app, install the beacons, and test the system in 6 months. The Problem: Due to digital shopping
and e-tailers, retailers are experiencing a decline in customer retention and
revenue. Brick-and-mortar stores are innovating the concept of the retail
shopping experience by integrating technology. Environment: Target retail stores and mobile platform. Constraints: Target wants to test the
new mobile app in 20 retail stores, and if this test is successful, then
install the beacons and implement the new app to all its locations. Current
beacon-technology only allows mobile apps to communicate simple marketing
messages to users until further technological advancement.
- Recommendation
Keep
the current mobile application functioning and build an upgraded version for
the pilot program. The new system will require monitoring after implementation
to assure the system and updates work effectively and efficiently.
2.0
System Description
- Alternatives:
Purchase available beacon application. Upgrade web-based stores. Continue
using the current application and seek other innovative technology
integration such as Target’s website platform.
- System
Description
The
new mobile app system communicates with the positioned beacons when within 100
feet of each beacon. The user must have the mobile application installed and
blue-tooth activated to receive communications from the beacons. The user’s
shopping history and analytics are stored within a cloud leased by the Target
Corporation.
3.0
Feasibility Assessment
- Economic Analysis
One-time Project Costs:
updated/new system development costs (= $20,000) (Hardware) 12 beacons and
installation for 20 stores ($500 x 12 x 20 = ($120,000). User training
($2,500). Total one-time costs = $142,500.
Recurring Costs:
Application software maintenance for 1 year ($15,000), additional cloud storage
($3,000), beacon maintenance and warranty for 1 year ($25 per beacon x 12 x 20
= $6,000). Total recurring costs = $24,000.
Tangible Benefits:
Decreased annual marketing expenditures annually (= $250,000).
Intangible
Benefits: Increased consumer retention rate, which increases the customer
equity rate (Kolah, 2013). Gained marketing advantage within the retail
industry. Enhanced and personalized user experience. A break-even analysis
reflects the company will break-even within the first year as ($250,000
(benefits) - $166,500 (costs) = $83,500.
- Technical Analysis:
Target has staffing, expertise, and resources to complete the project.
- Operational
Analysis: necessary system upgrades for market competition.
- Legal and
Contractual Analysis: Potential user privacy issues.
- Political Analysis:
Stakeholders welcome innovation and technology integration.
- Schedules,
Timelines, and Resource Analysis: Low risk as all resources and staffing
are available. The timeline is dependent on the availability of the beacon
hardware.
4.0
Management Issues
- Team Configuration
and Management
- Communication Plan
For
the Target project, the IT team will report to the analyst via email and report
their progress bi-weekly. The analyst will send a manual progress report to the
users monthly.
- Project Standards
and Procedures
The
new system will monitored in the selected stores at implementation. Users who
use the new app will be asked to take a survey after the first shopping
experience and at the end of the month to collect feedback. The analyst will
collect revenue and shopping analytic reports from each store for analysis of
noticeable changes. The analyst will present the results and feedback to the
stakeholders.
- Other Project-Specific Topics
Systems Analysis
Data-Flow
Diagrams
A
data-flow diagram is a visual representation of the way that data flows in an
information system (Valacich et al., 2015). (DFDs) allow analysts to view the
flow of information in the current system and understand where and what changes
are needed for the new system to meet the stakeholders’ requirements. DFDs are
an organized visual chart of the information it can be an easier way to
understand the data flow as opposed to notes from the determining requirements
stage as an example.
The context diagram is a simplistic view of the information system’s data flow. The context diagram contains one process box and the primary inputs and outputs (Morad, 2021). In this context diagram (Figure 4), the mobile application system is the only process shown, and the customer, beacon, and organization are all entities that the data flows to and from. A level-0 diagram shows in finer detail how the information flows within the system through entities through several main processes (Drewry, 2015). In Figure 5, the user, warehouse, and beacon are entities. There are five processes, and one data storage. This Level-1 diagram shows in more detail how the information flows through the product recommendation process. The data is pulled from the Consumer Marketing Profile data storage, processed through Target’s proprietary product recommendation algorithm, then delivered to the marketing team to select matching promotions. Those promotions are returned and stored to the Consumer Marketing Profile and appropriate promotions are delivered to the beacon, which communicates those offers to the user.
Figure 4: Context
diagram
Figure 5: Level 0 diagram
Figure 6:
Level 1 diagram
Entity-Relationship
Diagram
An entity-relationship (E-R) diagram shows the
relationships of entities within a database, representing the logical structure
of a database. An entity is a source or object that data is stored for
(SmartDraw, 2018).
Conceptual data modeling using entity-relationships uses
rectangles, diamonds, and lines to represent different
relationships and occurrences which forms the
entity-relationship (E-R) diagram. The more information that is
compiled about entities and relationships within the database, the better an
analyst is equipped for designing the new system (Valacich et al., 2015). Figure 7 shows the relationship between the
entities within the mobile application, attributes and cardinalities. The entities in the ERD are user,
order, product, consumer profile, beacon, location tracking, and promotion. Order,
product, and promotion are weak entities because they do not have unique
characteristics without other information sourced to it. These entities
characteristics are dependent on other information. For example, the type of
promotions that are sent to the user depend upon the user’s product preferences
and shopping history. User and Consumer Profile have unique attributes which
are indicated on the chart. Important characteristics of a User are purchase
history, ID, and product preferences. The Consumer Profile is also unique
because it contains the consumer’s behavior and preferences.
Cardinality is the number of instances or occurrences
that can occur or is associated with another entity (Morad, 2021). Minimum
cardinality is the minimum number of instances that can occur with another
entity, whereas maximum cardinality is the most instances that can occur
(Morad, 2021). In Figure 8, the interrelationships between these entities are
that the customer may have multiple orders with multiple product and one user
is mandatory for the system as is one consumer profile. There can be many
optional promotions, beacons, products, orders, and location data in regards to
the other entities.
Figure 7:
Entity-Relationship Diagram
Figure 8:
Cardinalities
Systems Implementation and Operation
Training
Training is a
necessary part of system implementation and operation. The new system will
modify how many employees perform their job functions and will need training
and instructions on how to use or interact with the new system. Formal courses
will be available for the IT staff, marketing department, and retail store
staff on how the system works. The retail store staff may need to assist the
customers directly with application issues and provide instruction on how to
use the mobile within the store, so the project manager will arrange training
with real-life app experience. For those who do not work in retail locations, E-learning
will include a video training that demonstrates how the application functions. Customers
will also receive promotional material to their email and an alert on the first
screen of the new app which will provide a simplified how-to on the new
application.
Maintenance
Information system maintenance refers to correcting or
improving the system’s functionality. The four types of information system
maintenance are corrective, adaptive, perfective, and preventative. Corrective
maintenance issues generally require immediate attention such as fixing errors
or defects in areas of design, programming and implementation. Adaptive
maintenance involves updating the system to adapt to external changes.
Perfective maintenance entails adding a feature that will enhance system
performance. Preventative maintenance is done to protect the system from potential
issues in the future (Valacich et al., 2015). The overall purpose of
maintenance is to assure that the system performs as required without
disruption.
Systems with a higher level of maintainability are easier
to support and update, which helps control costs, therefore, the analysist will
aim to upgrade Target’s mobile application with high maintainability. Several
factors determine maintainability: latent defects, number of customers, system
documentation quality, maintenance staff, tools, and program structure. Latent
defects are errors that occur after a system is implemented are responsible for
most maintenance costs (Valacich et al., 2015). Thorough system prototyping and
testing before the system goes live may help decrease these errors. Well- structured
and well-documented programs are easier to understand and correct errors. An
expert maintenance staff will be available to locate and correct errors
quickly. Lastly, using automated tools may lower costs, especially if the tool
is quicker and more efficient than the manual process. The system will automate
as many processed as possible or allowed to improve the new system’s
efficiency.
Conclusion
While Apple, the MLB, and Macy’s currently use beacon-enabled systems, companies have been slow to adopt beacon technology because they do know the capacity and benefits of an information system or how to integrate these into their current information systems (Alert Tech, 2015). Target’s promises “surprises, fun, ease and inspiration at every turn, no matter when, where or how (their customers) shop” (Target Corporation, 2020, para. 2). By following the SLDC methodology, and completing every step thoroughly, analysts can provide a cost-effective, innovative, efficient mobile application system that allows the company to fulfil that promise.
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