Starbucks

Information Systems at Starbucks

The Aim of This assignments
This aims to deliver how the systems used by Starbucks are integrated to help deliver the perfect cup of coffee every time a customer visits any Starbucks store worldwide.

Introduction
American global coffee company and coffeehouse chain. Started in Seattle in 1971. Grown to the largest coffeehouse in the world. 20,891 stores in 62 countries.

 

Company Background
Began operation in Seattle’s Pike Place Market in year 1982
Starbucks entered Malaysia in 1998 by a joint venture with Berjaya Corporation Berhad. The first Starbucks store in Malaysia opened on 17th December 1998 at KL Plaza Kuala Lumpur
Currently Starbucks has 170 stores in Malaysia, among which there are seven stores in Sarawak; five in the Kuching territory and two in Miri.Nowadays, Starbucks has expanded to more than 18000 stores in 62 countries.

Organizational charts

The Is system used at starbucks
Starbucks mainly uses four IS systems:
• Transaction Processing System.
• Supply Chain Management System.
• Decision Support System.
• Customer Relationship Management system

Information System Used by Starbucks

Decision Support System is used to analyze business data.
DSS is the auxiliary decision makers through the data, models and knowledge, human-computer interaction way for semi-structured or unstructured decision-making computer application system.
Starbucks used Online Analytical Processing (OLAP) to do the large-scale data analysis and statistical analysis that as a references to manage for decision making.

Decision Support System

DSS is a computer program application that analyzes business data and presents it so that user can more easily take their business decisions.Starbucks uses a singular DSS system at the parent company in USA: “oracle”. Oracle generates monthly reports on which important decisions are based.Only the parent company has the authority make decisions about products.

Why Oracle
            Starbucks had built its point-of-sale data warehouse on Oracle technology. This foundation, plus the Oracle OLAP option on Oracle Exadata Database Machine, enabled Starbucks to scale and seamlessly migrate its existing Oracle-based data warehouse to Oracle Exadata to expand insight and facilitate decisions, even with explosive growth in data and the user population.

 
Challenges

Create a robust, 24/7-available enterprise data warehouse containing sales, marketing, store management, point of sale, customer loyalty, and supply chain data to drive more informed business decisions at the corporate, regional, and store levels.Improve ability to rapidly analyze and act on customer loyalty, coffee sales, and supply chain information to continue to drive innovation. Ensure scalability to support rapid growth in data volume

Solutions
            Used Oracle Exadata Database Machine and Oracle Business Intelligence Enterprise Edition to create a high-performance enterprise data warehouse and business intelligence environment that provides analysts and managers at the branch, field, and corporate levels with timely and actionable insight into store and product performance, as well as supply chain operations.

            Gained the ability to load and refresh data from all stores in time for US East Coast store openings each morning, completing full loads in just four hours, and ensuring service level agreement compliance.

Enabled the company to load point-of-sale and customer loyalty data daily from 10,000 US stores to the data warehouse and answer most queries such as information on coffee sales, promotions, and product mixes in individual stores in fewer than 10 seconds.

Implemented Oracle Hybrid Columnar Compression to optimize storage area usage and compress 70 terabytes of raw data to approximately 20 terabytes in one case condensing 2 terabytes of table data to 275 gigabytes, an almost 90% footprint reduction.

Utilized Oracle OLAP option, enabling 1-terabyte cubes to be available for fast and sophisticated analytics.

Developed a front-end dashboard of key business indicators that enables 10,000 users including store and corporate managers to gain rapid visibility into store-level sales and operational data.

Increased product analysts’ insight into customer preferences to facilitate strategic development and product launches.

Reduced by hours the time that store managers spend on weekly reports, while simultaneously expanding insight and improving decision-making across thousands of stores.

            Used Oracle Partitioning to optimize data storage manageability and cost efficiency.

 

Oracle Product and Services by starbucks

Oracle OLAP is a world class multidimensional analytic engine embedded in Oracle Database 12c. Oracle OLAP cubes deliver sophisticated calculations using simple SQL queries - producing results with speed of thought response times. This outstanding query performance may be leveraged transparently when deploying OLAP cubes as materialized views – enhancing the performance of summary queries against detail relational tables. Because Oracle OLAP is embedded in Oracle Database 12c, it allows centralized management of data and business rules in a secure, scalable and enterprise-ready platform. Oracle OLAP makes it easy to produce analytic measures, including time-series calculations, financial models, forecasts, allocations, regressions, and more. Hundreds of analytic functions can be easily combined in custom functions to solve nearly any analytic calculation requirement. Oracle OLAP cubes are represented using a star schema design: dimension views form a constellation around the cube (or fact) view. This standard representation of OLAP data makes it easy for any reporting and analysis tool or application - including sophisticated business intelligence solutions, SQL-based development tools and Microsoft Excel - to leverage the power of Oracle OLAP in a simple and productive way.

With Oracle OLAP you can:

• Easily define a multidimensional model with advanced analytic calculations

• Productively deliver rich analytics to any reporting and analysis tool using simple SQL

• Transparently improve summary queries against tables using cube-based materialized views

• Combine OLAP data with any other data in your Oracle Database - including spatial, data mining, XML, documents and more

• Leverage your existing Oracle Database expertise and software investment    

Oracle Exadata Database Machine
The Oracle Exadata Database Machine is engineered to be the highest performing and most available platform for running the Oracle Database. Exadata is a modern architecture featuring scale-out industry-standard database servers, scale-out intelligent storage servers, and an extremely high speed InfiniBand internal fabric that connects all servers and storage.  Unique software algorithms in Exadata implement database intelligence in storage, PCI based flash, and InfiniBand networking to deliver higher performance and capacity at lower costs than other platforms.  Exadata runs all types of database workloads including Online Transaction Processing (OLTP), Data Warehousing (DW) and consolidation of mixed workloads. Simple and fast to implement, the Exadata Database Machine powers and protects your most important databases and is the ideal foundation for a consolidated database cloud.

• Database Machine Benefits

1. Best Data Warehouse platform: Accelerate data warehouse query performance by up to a factor of 10x or more, and run more queries concurrently for faster access to business-critical information.
2. Best OLTP platform:  Accelerate performance of OLTP oriented workloads through a combination of large physical flash, ultra high-speed flash compression, and smart flash caching algorithms which can provide millions of I/Os per second.
3. Best Consolidation platform: Replace isolated special-purpose system with a consolidated platform delivering leading performance and scalability for all database applications. Exadata has the unique ability to transparently prioritize requests as they flow from database servers, through network adapters and network switches, to storage, and back.

Oracle Business Intelligence Applications

Oracle Business Intelligence (BI) Applications are complete, prebuilt BI solutions that deliver intuitive, role-based intelligence for everyone in an organization from front line employees to senior management that enable better decisions, actions, and business processes. Designed for heterogeneous environments, these solutions enable organizations to gain insight from a range of data sources and applications including Siebel, Oracle E-Business Suite, PeopleSoft, and third party systems such as SAP

      Oracle BI Applications are built on the Oracle BI Suite Enterprise Edition, a comprehensive, innovative, and leading BI platform. This enables organizations to realize the value of a packaged BI Application, such as rapid deployment, lower TCO, and built-in best practices, while also being able to very easily extend those solutions to meet their specific needs, or build completely custom BI applications, all on one common BI architecture.

• Oracle financial analytics (OFA)
• Oracle HR analytics (OHRA)
• Oracle marketing analytics (OMA)
• Oracle vertical (industry specific) analytics
• Oracle sales analytics (OSA)
• Oracle service analytics (OSEA)
• Oracle supply chain analytics (OSCA)

   A word from Starbucks Coffee Company

"    Our Oracle Exadata-based database warehouse and Oracle Business Intelligence environment deliver detailed insight into point-of-sale data that allows us to innovate and offer our customers better services." – Mike Manzano, Vice President, Analytics and Insight, Starbucks Coffee Company.

Recommendations
Improve in decision support system 
-use such as WebEx webOffices - communication driven
-use webFocus - data driven
-use captaris workflow - document driven

Conclusion

In conclusion Starbucks has come a long way from its initial systems that were ineffective and resulted in increased costs. However for Starbucks there is still a long way to go if it wants to exploit the IS technology that is already in the market. Starbucks main problem is its size, but this can be countered through employing a uniform IS System Organization wide.
            Starbucks have achieved their goals successfully to become the top five of fast food industry in the global market. Gain the higher of profit margin. Increase the reputation. Expand highly fast its business by opening retail stores around the worldwide. Decision-making level and quality of Starbucks have been improved. Starbucks' end-users and IS specialists can be easier to take their business decision for the future plan.