Business Information Systems

This report analyzes the business processes and models used by Uber to ensure successful functioning. It includes an analysis of the value chain model, five forces analysis, and constructive suggestions for improvement.

Running head: BUSINESS INFORMATION SYSTEMS
Business Information Systems
Name of student
Name of University
Author note

1BUSINESS INFORMATION SYSTEMS
Table of Contents
Introduction......................................................................................................................................3
Conduct an in-depth research on their business process..............................................................3
Analysis of the company’s value chain model.............................................................................3
Analysis of company’s strategy be providing the five forces analysis........................................4
Draw the company’s main business process model by using BPMN..........................................5
Constructive suggestions to such companies...............................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

2BUSINESS INFORMATION SYSTEMS
Introduction
The Uber app is used to book a cab and a pickup location is entered where the driver
reaches within the minimum time. The company is present in more than 600 cities and has also
received an equity funding of $22.2B, which has also influenced the shareholders or investors to
make investments by making prior assumptions of the amount of revenue that may be generated
after the achievement of liquidity (Uber.com 2018).
Conduct an in-depth research on their business process
The business processes are managed with the use of information technology, which has
facilitated the working together of various business portions as an integrated system for smooth
flow and exchange of information, products and financial attributes. Uber is one of the major
transportation services’ provider company that has transformed the entire taxi industry and with
the management of proper business processes and suitable business models usage (Robson
2015). The business models are responsible for managing the business effectively, which has
created convenience of the clients to use their smart phone and book their ride.
The business processes include managing the network activities in a structured manner
with proper utilization of resources, information and facilities required to ensure successful
business functioning. The business processes of Uber showed that achievement of goals has been
possible and people have been quite accustomed with the use of this smart phone app to book
cabs while the it is a cost effective way to achieve customer satisfaction too. The creation of
value is possible with the source, i.e., the Uber App providing the client with a ride and thus the
service is sold and the services are provided by delivering the client from the source to
destination (Laudon and Laudon 2015).

3BUSINESS INFORMATION SYSTEMS
Analysis of the company’s value chain model
The support activities, as stated in the value chain model are organizational infrastructure,
development of technology, human resource management and procurement strategies while the
primary activities of Uber are operations, inbound logistics, outbound logistics, marketing, sales
and services. The drivers own the vehicle or rent those, considered as contractors and the clients
use their smart phones to utilize the services. The inbound logistics are associated with the use of
hardware components required to sustain business while the outbound logistics for Uber include
the warehousing and distribution activities. For ride hailing, the outbound logistics is not much
related though the wide network and internet based services, it is considered as value addition to
the global taxi technology sector (Rainer et al. 2013). The company has been known for its social
media marketing efforts, which has facilitated word of mouth promotions and the sales
promotion, advertisements and public relations’ management have further contributed to the
implementation of right marketing strategies and ensuring addition of value. Uber has gained
competitive advantage with the high level of customer satisfaction achieved through delivery of
great services integrated into the business model used. The clients provide feedbacks and ratings
on a scale from 1 to 5, due to which, the driver need to maintain a clean car and deliver the best
quality service to gain incentives as well (Kavadias, Ladas and Loch 2016).
Analysis of company’s strategy by providing the five forces analysis
The five forces are assessed to analyze the organization’s strategy implemented and these
include threat of new entrants, threat of substitute products, rivalry among the competitors,
bargaining power of suppliers and finally the buying power of consumers.
Five forces analysis
Threat of new Threat of Bargaining Buying power Rivalry among

4BUSINESS INFORMATION SYSTEMS
entrants substitute
products
power of
suppliers
of consumers the
competitors
The threat of
new entrants is
medium
because the
operating of
Uber does not
require much
effort or cost as
it is based on
how people
bring cars, gain
registration and
work by
driving based
on their
flexibility (Van
Alstyne, Parker
and Choudary
2016).
Nowadays,
clients look for
convenient
options to
travel at lesser
cost and Uber
has redefined
the way of
transportation
and with the
The Threat of
substitute
products is also
considerably
high because of
the similar
business model
used by other
companies,
which delivers
similar
experience and
created
convenience
for the clients.
There are other
types of public
transport that
can also act as
substitutes and
create major
threat for the
company to
obtain
maximum
market share
and increase
sales (Payne,
Frow and
The bargaining
power of
suppliers is low
because Uber,
being a taxi
service
provider has
ensured
obtaining
proper
resources like
the cars that are
rented and then
drove to meet
the services’
criteria. In case
one supplier is
not satisfied
with the
benefits
obtained, then
there are other
suppliers too,
who can
provide the
necessary
resources to
facilitate the
car services.
The buying
power of
purchasers is
high because of
the stiff
competition in
the
marketplace.
The customers
are price
sensitive and
thus they
choose the
value for
money service,
which might be
available by
switching to
some other
service
provider. With
the emergence
of few more
scandals, the
negative
mindset among
the customers
could further
make them
Rivalry among
competitors is
intense with the
presence of
other taxi
service
providers like
Ola, Lyft, etc.
in terms of
market share.
The business
models used by
other
companies are
nearly same,
which can
make Uber face
competition
fiercely and
thus the
industry rivalry
is high.

5BUSINESS INFORMATION SYSTEMS
emergence of
new companies
in the sector,
the threat is
medium.
Eggert 2017) Therefore, the
bargaining
power of
suppliers is
low.
select
alternatives for
the ride hailing
providers
(Bashir and
Verma 2017)
Figure: Porter’s five forces analysis (Bashir and Verma 2017)
Threat of new
entrants
Threat of substitute
products
Buying power of
consumers
Bargaining power of
suppliers

6BUSINESS INFORMATION SYSTEMS
Draw the company’s main business process model by using BPMN
Figure: Database interaction layout (Laudon and Laudon 2015)

7BUSINESS INFORMATION SYSTEMS
Constructive suggestions or recommendations
Construction suggestions mean necessary measures that are to be considered for
improving the services delivered by Uber. Just as the other products and services for which the
clients provide feedbacks, the same happens with Uber when the driver pickup and drop the
client at the concerned location (Uber.com 2018). The non-optimal driver utilization could enable
optimization of the speed of pickup and entire route followed to transfer the client from source to
destination. Allowing for scheduled pickups can help in making the Uber services operationally
feasible while the creation of loyalty programs could furthermore enable providing discounts and
create positive mindsets among the clients (Laudon and Laudon 2015). Few constructive
suggestions or recommendations are as follows.
 The performance review process, also known as the T3 B3 process of Uber is
recommended to evaluate the strengths of the employees and identify the few things at
bottom as well for making necessary improvements thereafter.
 The shifting of Uber’s culture is recommended as well for putting the major goals into
the system that can be accessed by the staffs, employers and managers to work while
holding each other accountable.
 The manager should be responsible for letting constructive advice be a part of the
business process through consultation with the employees and obtaining their relevant
views and opinions too.
 Uber should define new way of thinking by putting people at first and allow the
employees to manage changes within the organization both internally and externally.
 The ratings provided on a scale from 1 to 5 and feedbacks regarding the services are used
to make necessary changes and improve the driver experience, furthermore enhance the
quality of services to a large extent
 To customize the experience, Uber could manage the Spotify account for leveraging the
data and information about clients to deliver a new and seamless experience for keeping
the clients satisfied.

8BUSINESS INFORMATION SYSTEMS
Conclusion
The report was prepared to understand the business information systems consisting of the
business processes and model used to ensure successful business functioning. The value chain
model was devised to understanding the primary and support activities, which helped in
maintaining great quality consistent services for the customers. The five forces were analyzed to
implement a right marketing strategy, furthermore transformed the ways of transportation by
overcoming the threats too. The company should leverage the information about customers and
obtain their feedbacks as well for making improvements to the kinds of services delivered to the
customers.

9BUSINESS INFORMATION SYSTEMS
References
Bashir, M. and Verma, R., 2017. Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), p.7.
Kavadias, S., Ladas, K. and Loch, C., 2016. The transformative business model. Harvard
business review, 94(10), pp.91-98.
Laudon, K.C. and Laudon, J.P., 2015. Management information systems (Vol. 8). Prentice Hall.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing Science, 45(4),
pp.467-489.
Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez, C., 2013.
Introduction to information systems. John Wiley & Sons.
Robson, W., 2015. Strategic management and information systems. Pearson Higher Ed.
Uber.com. (2018). Uber - Earn Money by Driving or Get a Ride Now. [online] Available at:
https://www.uber.com [Accessed 5 Oct. 2018].
Van Alstyne, M.W., Parker, G.G. and Choudary, S.P., 2016. Pipelines, platforms, and the new
rules of strategy. Harvard business review, 94(4), pp.54-62.