Week 1 - Petrie's

Petrie’s Electronics

Question 1

How do information systems projects get started in organizations?

Information systems project starts in an organization when they have expanded (via aggressive expansion) to a point where they are now competing with the giants of the tech store world such as Best Buy and Fry’s Electronics and big box stores such as Target and Wal-Mart. This is done to ensure the survival and competitive nature of the company, both to attract new customers and maintain the existing ones via strategies such as a loyalty rewards program.

Question 2

How are organizational information systems related to company strategy?

How does strategy affect the information of a company develops and uses?

Organizational information systems are crucial to company strategies in forms of rewards programs (Eg. Frequent flier miles.) Organizational information plays a key role for a company to grow and prosper, at the very least survive.

In tactics or strategies such as developing a closer relationship with the customer, whether maintaining or attracting new ones, a frequent spender system may be developed. This is where customers who spend the most are rewarded much like the mentioned frequent flier program the airlines use.

Question 4

What do you think Jim’s next step would be? Why?

The very first step Jim should take is to develop a database of the top customers considering the factors of purchase frequency and the amount spent per visit/purchase. A strategy of awarding a store credit cash back percentage should be based on the purchasing power of the shopper’s location. If the shopper is from a location where there’s expendable income, then perhaps it is in order to give 3-5% cash back. If a customer is in a location where dispensable income is scarce, then a higher percentage of cash back should be given (perhaps as high as 15%) to inspire the customer to make another purchase soon under the encouragement of a reasonable discount.