Information System I Assignment I PDF

1/21/2020
Running head: INFORMATION SYSTEM
MYER
Information
Systems

INFORMATION SYSTEM 1
Letter to Sponsor
Mr. John King
Chief Executive Office
Myer
800 Collins St, Docklands VIC 3008,
Australia
Myer is a famous upmarket retailer of Australian department store industry working with the
mission to become the favourable brand of Australians. As it is understandable that Customer
Relationship Management System is helping number of businesses in maintaining
relationship with its customers by analysing their purchasing pattern. Therefore, it is
requested to take into consideration this report and give a thought related to the
implementation of Analytical CRM system within Myer operations as it can improve the
performance of the company by retaining old customers and attracting new ones.
I am presenting this report with immense pleasure related to the Analytical CRM System
implementation in Myer. According to the report analysis, the main function of this system is
to help the top management, support, sales, and marketing personnel in defining a superior
way to serve the consumers. The time that has been projected for the system development is
five months.
I will look forward to your feedback and attaching the report regarding Analytical CRM
System Implementation.
Regards,

INFORMATION SYSTEM 2
Executive Summary
The purpose of the report is to perform the environmental analysis of Myer accordingly
representing the problem that it is dealing with due to the absence of proper information
system in place. The analysis of the market has revealed that the company lacks in suitable
customer relationship management system that can provide support in collecting the customer
related data and then evaluating their purchasing pattern to improve its services. After the
analysis, the system that Myer needs to implement is Analytical CRM system as it will help
the top management, support, sales, and marketing personnel in defining a superior way to
serve the consumers. In order to develop this system, a proper development life cycle has
been presented in the report. In the end, the report has provided has provided the details
related to three aspects of the implementation that are project management, risk management
and change management.

INFORMATION SYSTEM 3
Table of Contents
Letter to Sponsor........................................................................................................................1
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Overview of Myer..................................................................................................................4
Industry Analysis................................................................................................................5
Internal and External operating environment.........................................................................5
SWOT Analysis of Myer....................................................................................................5
PESTLE Analysis...............................................................................................................7
Identifying Problem for IS/IT.................................................................................................8
Justification for the choice of system.....................................................................................9
Cost/Benefit Analysis of implementing CRM System.....................................................11
Cost/Benefit Analysis for Myer........................................................................................11
System Analysis and System Design for Analytical CRM..................................................12
System Development Life Cycle..........................................................................................13
Post implementation activities..............................................................................................14
Project management, risk management and change management associated with the
implementation.....................................................................................................................15
Conclusion................................................................................................................................16
References................................................................................................................................18

INFORMATION SYSTEM 4
Introduction
In the world of business, the substitute for the right information at right time is not available.
It is obvious that in last few decades different trials have been done for the development of
the systems that can make precise information that is readily accessible and easily available
all over the organization. The making and utilization of the information systems is said to be
a modern trend that is mainly focused on the collection, procedure, and dissimilation of
valuable information that guides a business for the better planning, improved decision-
making process and finally for better outcomes. According to Ghasemi, Shafeiepour, Aslani
and Barvayeh, (2011), information system is the collection of procedures, database, people,
software, and hardware that gathers, processes, stores, and transfers the data for the
transaction dispensation at operational level for providing a backing to the decision making to
the management. The motive of this report is to discuss about the Information system issue
that is experienced by Myer one of the well-known upmarket department store of Australia
and presenting the solution in the form of an information system that can improve its
performance in the market along with meeting its organizational goal. This procedure is
comprised of presenting the background of the company and its internal and external
environment analysis. Besides this, identifying the problem and presenting the solution and
highlighting its cost/benefit analysis. In addition to this, the report is also highlighting the
system development life cycle of the suggested solution.
Overview of Myer
Myer is the Australian upmarket department store chain. The company operates its functions
across Australia by offering a range of products like clothing for men, women, babies, and
children, cosmetics, furniture, video games, footwear, fragrance, and accessories. Besides
this, it also deals in bedding, GPS navigation, homewares, books, toys, computers, flooring,
car audio, confectionery and food, travel goods, and stationery (Bloomberg, 2019). The key

INFORMATION SYSTEM 5
competitor of Myer is David Jones. In fact, Myer for long time has been the largest
department store of Australia in terms of number of stores and revenue.
Mission – The mission of Myer is to be the market for people of Australia where they can
explore a variety of exciting local as well as international lifestyle brands, for entertainment
and home. Besides this, to create a user friendly and rick in content destination for shopping
(Paul, 2020).
Vision – The vision of Myer is ensuring that this brand becomes the favourite department
store of Australian customers by offering helpful and friendly services, along with exclusive
and high-quality brands and delivering compelling value to the customers (Myer, 2020a).
Industry Analysis
The retailers in the industry of department stores are struggling from last five years because
of the negative customer behaviour and weak retail environment. In this market, customers
are highly price sensitive and unwilling to invest their disposable income. In its place they
prefer to pay their debts and increase their savings. According to the analysis presented by
IBIS World, it has been revealed that the revenue of this industry will drop at the annual rate
of 0.2% in the coming five years to $18.8 billion (IBIS World, 2019). Undefined economic
situations and increasing competition from the online retailers are anticipated to add to a
0.5% decline in the revenue of the industry in this current year. The industry of department
store is considered to be intensely concentrated, with four top players predictable to comprise
for around 95% of the revenue of the industry.
Internal and External operating environment
SWOT Analysis of Myer
Strength
The major strength of Myer is that it targets the earners with extra income and focus on
delivering different styles as well as entertainment for its customers and the market. The