Institution : Chu Hai College of Higher Education Subject Lecturer Student : BIS110 Introduction to Information System : Ms Karen Leong

: Lo Chun Ho Raphael 201212240H, Chu Chi Fung Francis 201212234H, Chan Hoi Yi 201212210H, Wong Yeung King 201212241H, Chow Sau Man Anna 201212207H, Tam Yuen Ting Jenny 201212213H Date Assignment : 30th May 2013 : Project Group Study of Parknshop

Business Operations Information systems help operations of the company a lot. Take Parknshop as an example. One of the usages of information systems is to record the orders. A supermarket like Parknshop, which contains a lot of goods from different countries and have a lot of branches, needs to handle a lot of orders. Therefore, information systems help a lot because information systems can help to record the orders, which contain the amount of goods that is needed and the types of goods, and this can help to order effectively. Also, information system can help check the orders: When, what and how many goods will arrive or receive. This can help the operation of Parknshop. When the shop knows when or how many goods, it can choose suitable amount of staff to maintain the operation. Besides, information systems can show the information of that company. Nowadays many companies have their own website and the website help the operations a lot.

Form the website, the public can check the company information. Also, from the website, the company can attract the customers. For example, Parknshop shows discount, types of goods, personal accounts, laws and declarations etc.

Take the function of personal accounts on the website as an example. On the website of the Parknshop, it has the function of creating own account. And under this function, the user can check their account information, the record of their past order and their present order and the list of online shopping. The website makes the operation of the supermarket more effective compared with ordering by phone, since the staff can follow the order received from the website which can be checked easily. Online shopping is more convenient to supermarket, because the staffs only need to pick up the goods and deliver to the customers. Therefore, the information systems used in Parknshop can help its company to have a more effectively operation.

Comparative Advantage By using Information System, Parknshop is able to achieve the following competitive advantages: 1. Enabling new service(s) 2. Encouraging customers response(s) 3. Better understanding of customers and establishing a long-term and meaningful relationship with customers. We will examine them one by one.

1. Enabling new service(s) Information system allows parknshop to provide a one-stop, online shopping service to customers because it provides a platform for this service. Customers simply have to register on the parknshops webpage and they can then begin their online shopping. Payment is done through credit cards and the purchased items are delivered to the

customers home.

2. Encouraging customers response(s) Information system provides a new platform through which customers can voice out their opinion on the performance of Parknshop. From the website of Parknshop, we can see that there are suggestion box and service hotline:

The suggestion Box and suggestion hotline enables customers to voice out their opinion while sitting in their home, implying that chances for face-to-face confrontations are minimized. Since face-to-face confrontations often incite emotional responses from both parties, it is not a good way to resolve conflicts. So by minimizing it, the communication between Parknshop and customers become more effective. Thus, it encourages customers to voice out their opinion on Parknshop.

3. Better understanding of customers and establishing a long-term and meaningful relationship with customers Parknshop launched the MoneyBack program () back in 2007. MoneyBack programme is a point-based loyalty card which provides extra savings to members in the form of MoneyBack points. These points can then be

exchanged for cash vouchers, selected products and merchant coupons. MoneyBack programme encourages the customers to shop in Parknshop again since the more frequent they shop in Parknshop, the more MoneyBack points they can earn, which makes them more likely to become repeated customers. Thus it helps to establish a long-term relationship with customers. Furthermore, by analyzing the data from the kiosks (), Parknshop can better understand customers needs.

IT Infrastructure To talk about the IT infrastructure, it is important for Point of Sale system (POS) to manage the shop operation. The IT infrastructure is divided into two parts, hardware and software.

1. Hardware For hardware, there are seven items: Touch Screen, Thermal Receipt Printer, Laser Barcode Scanner, Remote Barcode Collector, Barcode Printer, Cash Drawer, POS Display. First, Touch Screen is well-known as an input device. It is for staffs use only in the POS system. The Touch Screen provides a more convenient way to manage and handle each trading within a short period of time. (a)

(a)

(b)

Second, Thermal Receipt Printer is used to provide records. For each trading, the

receipt printer would print out two receipts; one is for the customer while the other one is for the shop as self-recording. (b) Third, Laser Barcode Scanner helps to scan the barcode of the products in order to retrieve the specific data and shows on the monitor. (c)

(c)

(d)

Fourth, Remote Barcode Collector is used to scan the barcode and help the staffs to make an inventory of products. It is usually used at the end of the day before shop closing. (d) Fifth, Barcode Printer prints the barcode for some of the products on sale as they may need additional barcode to help the staffs to retrieve new data. (e)

(e)

(f)

Sixth, Cash Drawer links to the computer and it provides a higher security level of storing cash. If it opens unusually, the computer will produce an alarm. (f) Seventh, POS Display is to display the name and price to customer as they can also check the validity of the data of products to make sure there are no mistakes for the trading. (g)

(g)

2. Software When it comes to the part of software, Microsoft Office and Microsoft Access are used as the foundation while the platform would usually be Windows XP due to its operational excellence. Microsoft Office helps to cope with the daily data and information in a systematic way so that the staffs can easily check the records and make precise decisions. Microsoft Access resembles the mixture of Microsoft Database Engine and Microsoft Office as it helps to access data in a high-speed way and also capable with Microsoft office files. This software helps the shop to manage data in order to monitor the daily operation and keep clear records. Lastly, Windows XP platform is suggested to use for the shop because of its user friendliness compared with other platforms. Staffs can easily manipulate the computer and other hardware and software with this platform.

Customer Intimacy For customer intimacy, information systems establish close relationships between customers and Parknshop. Parknshop creates a MoneyBack card which provides extra savings to members in the form of MoneyBack points. Presenting MoneyBack card, members earn basic points every time they shop, and earn extra points in special offers. These points can then be exchanged for cash vouchers, selected products and

merchant coupons. MoneyBack has an extensive retail partner network throughout Hong Kong and Macau, and involves over 400 retail outlets including , and , , , , , , ,

.MoneyBack also has points conversion partners including

Asia Miles, Esso Smiles and Standard Chartered Bank Credit Card, so the use of MoneyBack points is not limited to grocery shopping.

This card stored customers personal information, such as name, contact number and address. Every customer may receive one main card and three mini cards that are linked to the same account, allowing them to earn points faster. When customers shop, they look for special items on the shelves. Customers will find Members Price and Extra Points offers exclusively for MoneyBack members that will help customers earn more.

The system

automatically sends promotional mails to the

customs and which match the promotion with the district of the customer and also provide cash coupon. It allows customers to learn the latest discount or special offer. Customs can use MoneyBack kiosks which is a machine to redeem products for free or at a discount and also make points conversion or donate them to charity at MoneyBack kiosks. Customers can also check the points balance via the internet.

Security Parknshop is using some of the most famous security technologies. The first one is the Electronic Article Surveillance system in which special tags are fixed to products or goods. The type of EAS that Parknshop is currently using is a radio-frequency system with RF labels.

According to Wikipedia, the principle of radio-frequency system is Sensing is achieved by sweeping around the resonant frequency and detecting the dip. Those special tags (barcodes) are essentially an LC tank circuit that has a resonance peak anywhere from 1.75 MHz to 9.5 MHz. The most popular frequency is 8.2 MHz. To deactivate the label tags, the circuit would be detuned by partially destroying the capacitor.

Parknshop has many branches, some are only supermarkets, and some are department stores. The technology has been used by both, but more visible in the department stores branches such as International by Parknshop, Gourmet or Taste as they have more expensive products. For those products, those special tags would be removed or

deactivated by the clerks when the item is properly bought or checked out. But for many items, they are detected with the barcode on the package but not RF labels. They are using the electromagnetic-radiation system. This is linked with the

cashier system in which cashier would detect the barcode on the item by electromagnetic waves. Just like those with special tags, the barcode would be deactivated by the clerks when the item is properly bought or successfully checked out, or just like delete the information of the item from the system; therefore the security system would no longer sense the item.

In all branches of Parknshop, they have a detection system at the exits. They are usually covered by advertisement card broads .The detection system sounds an alarm to alerts the staff when it senses active tags. For expensive products such as clothes or wine, according to Wikipedia, which may be manipulated by the patrons, wired alarm clips, instead of tags, would be used.

Another information technology Parknshop is using is the closed-circuit television (CCTV). It works by transmitting a signal on a limited set of monitors to specific place. Video cameras set in different corners of the shop would be linked to a central control room, in Parknshops case, is the staff office; which would be monitored. Unusual situation would be informed by walkie-talkie. Recorded video would be saved in a period for reference or necessary checking; such as when theft occurred, they need the CCTV footage to confirm the theft has occurred or served as an evidence.

Ethical and Social Issues Parknshop has launched a campaign called Money Back(). By becoming a

MoneyBack member, you can earn MoneyBack points to get free gifts. First, you will have to fill out a form requiring you to provide almost all of your personal information. It needs your full name, ID card number, e-mail address, address, phone number, job, income and any pets etc. Why they need to get so much information from you? Maybe they need to confirm your identification when you use the card later. But the answer is no, they will not need to check your information next time when you use it. All you need to do is to show your card. So what will they do with your information? They will sell or give it to other companies for money. This causes privacy problems. Parknshop has no comment on this accusation, and actually in the terms and condition, 9,4-5, it is stated that the information that you provided can be given to its companies.

As for life impacts, Jobs can be lost when computers replace workers or tasks become unnecessary in reengineered business processes. We can now online shopping, order products from internet. Computer errors can cause serious harm to individuals and organizations, and existing laws and social practices are often unable to establish liability and accountability for these problems. Less serious errors can often be attributed to poor data quality, which can lead to disruptions and losses for businesses. Orders may get wrong because of this.