Is535 - Managerial Applications of Information Technology

Philly Auction Drop Spot

Applied Research Project

Submitted to:

IS535 - Managerial Applications of

Information Technology

Keller Graduate School of Management

Submitted: Wednesday, November 23, 2011

Table of Contents

EXECUTIVE SUMMARY 2

COMPANY OVERVIEW 2

MODUS OPERANDI 3

CURRENT ISSUES 5

SECURITY CONCERNS 5

INEFFICIENT TIME USAGE 6

BUSINESS CONTINUITY AND DATA RECOVERY 6

MARKETING STRATEGY DEFICITS 7

RECOMMENDED SOLUTIONS 7

SECURITY REMEDIES 7

INTRODUCTION OF MULTI-FACETED SOFTWARE APPLICATION 8

ADDITIONAL ADJUSTMENTS 10

CUSTOMER VIRTUAL KIOSK 10

NETWORK INFRASTRUCTURE 11

MARKETING & ADVERTISING STRATEGY 12

BUDGET IMPACTS 14

POST IMPLEMENTATION IMPACT 15

SUMMARY 18

REFERENCES 19

WOW!!!

Executive Summary

Philly auction Drop Spot (PaDS) is a customer service oriented company that specializes in the complete transaction management for the sale of items on eBay. When evaluating the company, various areas for improvement were found. Using technological advancements, the company can improve their process, sales and overall competence. These enhancements include: upgrading internal hardware, improving business procedures with a variety of software adjustments or additions and several policy changes. The goal of the improvements is to increase revenue, streamline efficiency, and enhance the ability for the company to grow.

Company Overview

Located in an upper class section of Philadelphia, the company targets customers who possess items containing adequate value and are looking for a business to handle their online selling needs. Operating from a storefront location, PaDS provides a forum for customers to bring in items they want to sell. PaDS will "do the work for them" (Clark & Logan, 2006) in preparing, monitoring, brokering, managing and completing the sale process for those items.

Modus Operandi

PaDS provides a very useful service in this modern world of online transactions. Ebay has created a substantially lucrative online auction environment that PaDS has decided to tap into. This process of managing the virtual garage sale begins with customers.

Figure 1 - The PaDS Process

Customers who are not computer savvy enough to sell online, or who prefer to not take the time to process their own items, can have PaDS do the work for them. They bring their items into PaDS and request service. New customers are written into the customer ledger and given a unique Personal Identification Number (ID). The items to be sold are written into the PaDS item ledger (PIL). Each entry is associated with the corresponding customer's ID. After the initial transaction, the customer departs and the items are placed on the PaDS Staging Racks (PSRs) in the rear storage section of the store.

When the opportunity presents itself, company employees will process items from the PSRs, readying them for sale on eBay. This process includes taking photos in the photography area of the store, writing descriptions of the items, adding them to the PaDS eBay account, logging vital information (such as eBay auction number) in the PIL and storing the items on the PaDS Processed Racks (PPRs).

Intermittently, employees must answer a variety of email questions posted by potential buyers regarding any items currently being auctioned. This usually requires the employee to return to the PPRs to gather the item information needed to answer the specific question(s) posted.

Customers who have questions frequently call into the store to ask about the status of the items they have listed. The PaDS employee refers to the PIL, obtains the eBay auction number, finds the auction online, and relays the information to the customer.

For items that have been sold, the PaDS manager is responsible for completing the transaction(s), invoicing the customers (verifying costs and shipping) and completing the sales transaction(s). After payment has been received, employees are tasked with packaging the item(s) in the prepping area of the store, delivering the package to the post office, and completing the shipment process.

Along with paying the general bills, the PaDS manager must also calculate and process payments to customers. This entails working through the PIL to calculate the exact amount (minus PaDS sales commission) due to customers. Once processed, the information is manually logged into Intuit's Quickbooks from which the checks are printed, enveloped, stamped and mailed to corresponding customers.

Current Issues

While analyzing the company, it was discovered that several critical areas of the business process require improvements. These are highlighted below:

Security Concerns

While measuring the effectiveness and efficiency of security for the inventory assets, several problems were discovered. The back door to the store is connected to an alleyway that runs between buildings and leads to an under-lit parking area behind an adjacent apartment building. From an intruder or trespasser standpoint, this creates a risk to the security of the store and the assets inside. Although there is a current alarm system, the dark alley, coupled with the multiple routes of escape, could create a situation where opportunistic criminals