AM953001: Starbucks Information Systems Report and Analysis

This report provides a comprehensive analysis of Starbucks' information systems (IS), examining its evolution from past to present and future implementations. It begins with an introduction to the cafe industry and Starbucks, highlighting the importance of IS in managing operations and enhancing customer service. A literature review explores the role of IS in the cafe industry, citing various studies on topics such as transaction processing, supply chain management, and customer relationship management. The report then delves into Starbucks' past IS, including early adoption of cash registers and order management systems. The present IS section details the use of transaction processing systems, supply chain management, decision support systems, and customer relationship management. Finally, the report speculates on the future of Starbucks' IS, emphasizing the adoption of IoT devices, data analysis, and enhanced data security measures. The report concludes by summarizing the key findings and emphasizing the critical role of IS in Starbucks' continued success and growth in the cafe industry.

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Management Information
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Introduction
Café is one of the best industries for businesses which are the best refreshments in
the world that sell various drinks, snacks, and lightening meals to their consumers. It is
observed that cafes mainly produce a large number of revenues from the coffee which also
accounted for more than 83% of hot beverage sales in the year 2012 (Baskarada, &
Koronios, 2013). In the field of hospitality and other sectors, the cafes industries are
growing very fast where they provide various kinds of coffees to the companies involving,
lattes, cappuccino and many more. However, Starbucks is one of the best and largest
business industries in the area of café which mainly offers various kinds of coffees, meals
and other food-related items to their consumers. For controlling and managing their
performance and products an information system plays a major role that also increases
their businesses. The key objective of this research report is to explore the Starbucks
organization in the café industry and evaluate the role of information system in Starbuck
along with their past, present and future IS system. In which a literature review will be
conducted in order to understand the importance of the information system in the café
industry.
Background
Café is the largest business industry which is now growing very fast and more than
77% of the worldwide are eating fast foods and coffee related products. A recent study
identified that the café industry is a rising star in the area of hospitality and it has the
capability for increasing the rate of revenue because of their better products and services.
For café, Starbucks is one of the largest communities that serve the best coffee to their
consumers and their major aim is to move and support the human soul and provide the
better services to their consumers (Chang, 2013). For controlling and managing their
services Starbucks uses the key idea behind information system that has the capability for
improving the overall performance of the organization. It is observed that the information
system provides a platform to Starbucks for delivering reliable and effective products and

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services to its consumers and also reduce the overall complexity of the management
system.
In this modern era, the use of an information system and café industry is growing
very fast that also increase the rate of consumers which can create a problem for
companies. But, Starbucks uses the features of an information system that has the ability
for monitoring overall infrastructure of their businesses in an effective manner (Cho, Yu,
Oh, Ryoo, Song, & Kim, 2017). Before the development of information system it was very
difficult for Starbucks and other café industries to collect, control, manage a large number
of data sets. But, now the development of information system changed the way of
communication and business and by using such kinds of techniques Starbucks easily
maintains their productivity.
In this research, a literature review will be conducted for understanding the role of
information system in the area of the café industry and Starbucks organization. Moreover,
the literature review will help the researcher for analyzing and evaluating the results and
findings of previous papers on the research topic. There are major three sections will be
explained in this report for example past IS in Starbucks, Present IS in Starbucks and future
IS in Starbucks.
Literature review
The aim of this literature section is to review the key idea related to the information
system and identify the viewpoints of other authors on information system management. It
is observed that the information system in the café industry is one of the common topics
for the research and there are numbers of papers were published in the last five years.
According to Chon, Kim, & Cha, (2013) cafe is the common business industry for
businesses that deliver several kinds of coffee and other meals to their consumers.
Moreover, for controlling and managing the data of consumers in the café industry can be
done with the information system. From this paper, it is observed that the information
system play a crucial character in the information system where it provides a way for

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improving the overall performance of the system and reducing complexities and problems
from businesses.
However, the use of an information system is increasing very fast and there are
numbers of café industries are using the key features of the IS system, for example,
Starbucks and many more. For café industry, it is very complex to manage a large number
of data sets of consumers which directly impact on their performance and revenues such
kinds of issues can be resolved with the help of information system management. A recent
study provided by Fitzgerald, (2013) argued that the productivity of café industry mainly
depends on the communication between the employees and consumers for which
information system helps the industry for effectively communicating with their customers.
After reviewing this paper it has found that the developing information system is a
more effective strategy for the café industry because it is able to control the entire
infrastructure of the industry in an effective manner. Café industry mainly uses the
computer networks and devices for storing and managing the data of consumers and
security is a common issue for which they can develop information systems that help them
for managing their businesses. As compared with the other papers Lin, et al., (2016)
provided in-depth analysis about the research topic and also highlighted the positive and
negative aspects of the information system in the café industry.
Moreover, such kind of process also increases the global supply chain of the café
industry that can help the management team for reducing risks linked with their
businesses. However, it is observed that the information system also provided various
kinds of tools and software that can help the café industry for improving the performance
of both the front and back end systems. Luna-Reyes, et al., (2014) proposed a literature
review on an information system and examined that designing and implementing
information system in the café industry can positively impact on their businesses.
Moreover, there are numerous advantages of information system in café industry, for
example, reduce complexity, manage the huge amount of data sets, improve effectiveness
and performance of developed products, monitor communication between employees and
consumers, and many more.

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Martínez-Torres, Rodriguez-Piñero, & Toral, (2015) agreed with the conclusion of
previous papers and stated that information system plays an effective role in the café
industry because they facilitate planning, operations of industry, management and also
handle problems in an appropriate manner. But the security of data is a major concern
linked with the information system which directly impacts on the performance of the café
industry and it can increase data breach related problems.
According to Meharia, (2012), there are various kinds of information systems used
in the café industry, for example, transaction processing system, POS system, management
information system, decisions support systems and many more. From this paper, it is
concluded that the utilization of information system in the café industry can change their
business in an effective way and also manage their products along with their services.
Past information system in Starbucks
It is observed that in the year 1987 Starbucks opened its 17 cafes in the USA and
Canada for improving their businesses. At that, the use of an information system was not
much popular and some of the business industries were used the key features of the
information system. McDonald was the first company that designed and implemented
information system in their businesses. After that Starbucks used some features of
information systems for managing the overall complexity of their systems. In the year
1990, the management team of Starbucks adopted numerous kinds of information systems
for improving their performance (Sharma, Patil, & Tandon, 2012).
At that time they adopted computer servers and networks for storing their data and
private information of their consumers. After that there are major four information
systems were developed by the Starbucks in their businesses, for example, sales and cash
management, order placing process, order delivering system and customer payment
system. For collecting and monitoring the cash related issues the management team of
Starbucks developed an electric cash register and point of sale that helped them for
monitoring issues related to the products and orders (Van den Hurk, 2014). It is observed
that adopted point of sale information systems enabled their consumers for placing an
order request in very less time and print the order request on the computer screen.

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Therefore, it is observed that in the past generation Starbucks used the effective and small
kinds of information system in their businesses that helped them for managing order
related issues and collecting huge data sets.
Present information system in Starbucks
In this generation, the use of an information system is increasing day by day and
Starbuck is the best example that uses the information system and technologies in their
businesses. Today, Starbucks is the largest café industry worldwide because of the
utilization of information systems. It is observed that in last four years Starbucks changed
their infrastructures and adopted the advanced information systems for collecting orders
and delivering effective services to their consumers (Xie, Weinger, Gregg, & Johnson, 2014).
From the previous study, it is observed that currently there are major four kinds of
information systems used in Starbucks. These systems include transaction processing
systems, supply chain management, decision support system, and customer relationship
management system. In which the transaction based information system helps the
company for controlling and managing payment related issues and collect payment from
the consumers.
Moreover, the decision support system is an effective information system used in
Starbucks that provide a platform for analyzing and evaluating the collected data from
various sources. However, it is examined that Starbucks adopted an online analytical
processing system for effectively performing analyzing related steps and help the
management team for producing reliable decisions. A recent study identified that ORACLE
is the best technology which is recently adopted by Starbucks for reducing the issues and
problems linked with their businesses and services (Van den Hurk, 2014).
With the help of this information system, Starbucks developed a point of a sale data
warehouse that enabled them for scaling and evaluating the collected data in an effective
manner. But, security is a major concern faced by Starbucks while using the information
system for which they developed and implemented security-related systems and devices
by using information systems. A recent study identified that the present information

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system function used in Starbucks helped them in controlling and managing problems and
improved the overall performance of their businesses.
Future information system in Starbucks
In the future generation, the use of information system and technologies will be
enhanced by 67% in the café industry. In future Starbucks will be adopted the advanced
information systems and technologies for growing their businesses and also deliver their
services with the help of automation based systems. It is observed that the future of
information system in Starbucks can be depicted in major four sections, for example,
internal process, objectives process, external process and subjective process. However, the
management team of Starbucks will be adopted the IoT based devices for controlling their
services and also change their IT systems by adopting the high-level information
technologies (Chang, 2013). Moreover, in the future Starbucks will be included data
analysis processes in their infrastructure and also improve the security of their data with
the help of cryptography or other advanced techniques. Therefore, in the future, the
information system will help Starbucks for improving their revenues and solving the
communication and privacy-related issues.
Conclusion
From the above evaluation, it is concluded that the information system is a key part
of Starbucks that provide a platform for improving their businesses in the café industry.
This research report critically reviewed the importance of the information system in
Starbucks and café industry and also highlighted the past, present and future of
information system in Starbucks. It is identified that currently, Starbucks is using ORACLE
technology in their system that helps them for analyzing and evaluating the collected data.
But security is a common problem associated with an information system that impacts on
the performance of their businesses. Therefore, it is suggested that while using information
systems Starbucks should focus on the security and privacy-related concerns and also
develop various security policies in the workplace. In future Starbucks will be adopted IoT

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based devices and systems for improving the overall performance of their businesses and
services.

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References
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semiotic theoretical and empirical exploration of the hierarchy and its quality
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Chang, T. K. (2013). A secure cloud-based payment model for m-commerce. In 2013 42nd
International Conference on Parallel Processing, 12(6), 1082-1086.
Cho, J., Yu, J., Oh, S., Ryoo, J., Song, J., & Kim, H. (2017). Wrong siren! A location spoofing
attack on indoor positioning systems: The Starbucks case study. IEEE
Communications Magazine, 55(3), 132-137.
Chon, Y., Kim, Y., & Cha, H. (2013). Autonomous place naming system using opportunistic
crowdsensing and knowledge from crowdsourcing. In 2013 ACM/IEEE International
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Fitzgerald, M. (2013). How Starbucks has gone digital. MIT Sloan Management
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Martínez-Torres, M. D. R., Rodriguez-Piñero, F., & Toral, S. L. (2015). Customer preferences
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Meharia, P. (2012). ASSURANCE ON THE RELIABILITY OF MOBILE PAYMENT SYSTEM AND
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Management Information Systems, 11(1), 97.

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Sharma, R. R. K., Patil, S. M., & Tandon, A. (2012). Customization and best practices model
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Xie, M., Weinger, M. B., Gregg, W. M., & Johnson, K. B. (2014). Presenting multiple drug
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