Structured Process Analysis
Structured Process Analysis
Structured processes are formally defined, standardized processes that support operational and structured managerial decisions and activities; accepting a return, placing an order, and purchasing raw materials are common examples. The structured process that we are going to be focusing on is Target’s sales process, which includes the management of purchases that are continuously happening online and in-person. The process starts with training your sales team, utilizing a CRM system, aligning goals across the company, and focusing on customer experience by addressing their needs and any questions they might have. The reason this falls under a structured process is that it follows a clear and efficient workflow. Its basic steps leave little to no room for variation. The steps required to complete the process:
1. Advertising and Promotion- To promote products and attract potential customers, Target runs campaigns using digital ads, email marketing, social media, and in-store displays.
2. Customer Browsing & Selection- In order to find products of interest, customers may browse online or visit Target shops.
3. Choosing Products and Adding Them to the Cart- In Store: Customers physically add things to their carts in-store. Online: Customers fill their online shopping carts with products.
4. Customer Checkout- In Store: Customers either use self-checkout terminals or proceed to checkout with cashiers. Online: Customers examine their cart after navigating to the checkout page.
5. Payment Processing- The customer completes the purchase after selecting a payment option. After processing the transaction, payment systems issue a receipt and deduct the proper amount.
6. Order Fulfillment- In-store: After making their purchases, customers exit right away.Online: The order is sent to fulfillment by Target's system, where the items are either sent to the customer's address or made ready for curbside or in-store pickup.
7. Delivery & Receipt (for online purchases)- The customer receives tracking information after the item is sent. The order and a printed or digital receipt are sent to the customer.
The sales process at Target is typically efficient, particularly now that online and in-store buying choices are integrated and customers can select their preferred method of payment. However, there are still some issues with the sales process that affect efficiency and customer satisfaction. One of these issues are order fulfillment delays, when Target’s online orders sometimes experience delays due to major sales events and peak times of the year. Another issue can be the checkout line, since they can get lengthy in busier stores, especially during busy hours which can put a negative impact on the in-store experience. Customers also report issues with the user experience on the Target app and website. They often experience glitches and delayed process times which makes it difficult to navigate the app and website.
An information system that supports this is Target’s Point Of Sale (POS) system. This system helps Target with its sales transactions at the point to which a sale transaction is completed. The system manages checkout processes, the payments and updating the inventory once those items are sold. The system is also responsible for generating receipts. The 5 components of the Target’s POS system are:
Hardware: The IS system uses physical devices in stores (POS terminals, the barcode scanners, and tablets that each employee has access to). Ex: MyCheckout mobile POS devices: Used by store employees to assist customers directly on the sales floor
Software:The POS system software combines everything sales-related activities and modules and by using this it provides more visible and functional services for both - online and in-person transactions. This includes, calculating totals, applying discounts, and lastly updating inventory after finalizing purchases. Ex:Google Cloud: Target uses Google Cloud for storewide design and logistical solutions.
Data: The POS system gathers data from online and in-store purchases, inventory levels, payment information, pricing. The collecting of this data helps with advertising and then of course with the promotion of sales because it is shared with the ERP for more insights.
Procedure: The POS follows a specific procedure for the whole sales process which allows for a better organization of past and current purchases. Scanning items, verifying prices, applying discounts, coupons, processing payments and handling returns or exchanges.
People: The POS system allows employees as well as customers to interact with the system. For customers it is at the self-checkout where the transactions are executed under their own supervision. For employees, it is mainly used by the cashiers who are also responsible for executing the sales transactions.
Silos are a separate, isolated data management system where information is confined within one department or system, unable to easily communicate or share data with other systems within an organization, essentially creating barriers to knowledge sharing and hindering decision-making processesThe process does not have silos because in order to run better, information from across departments need to always be accessible to all. The POS system that Target uses strives to avoid the creation of Silos by trying to continuously update the inventory in real-time.However, while handling transactions since the POS focuses mainly for in-store purchases it sometimes relies on the ERP system to ensure that the data from both online stores as well as the in-person stores are up to date. Therefore, the different systems being used for each shop can lead to silos and lead to inconsistencies for real-time inventory. The issues with the IS system that can affect Target’s sales process can be the maintenance of the app since integrating and maintaining the large POS systems can have its own complexity as well as frequently updating the system. Another issue is data security since the sales data can be breached and this would lead to a customer outrage as well as the payment information to be leaked. Lastly, any downtime for the system could lead to problems with purchases, check-out errors, leading to delays at check-outs and potential customer dissatisfaction.
CRM, ERP, and EAI are better known as Customer Relationship Management, Enterprise Resource Planning, and Enterprise Application Integration. Customer Relationship Management relates to the relationship that a firm has with its customers. Through organizational systems, a business can better recall who a customer is, what they usually order, and how to better assist them.
Enterprise Resource Planning relates to the total organization of a business’s resources. Through ERP, a firm can better manage and track its resources such as inventory, employees, etc.
Lastly, Enterprise Application Integration is the development and implementation of applications that help a company better communicate and share their knowledge. This decreases the chances of information silos forming, as EAI creates a bridge of communication and knowledge between different sections of the company.
The major ERP vendors currently are the following as of 2024. These ERP vendors are the largest and most well-known in the industry.
Microsoft. Oracle. SAP
Target knows the value of Enterprise Resource Planning and how it benefits their business, as they use Oracle for their ERP needs. With Oracle, Target is able to better manage their resources and operate their business efficiently.
An inter-enterprise IS is an inter-enterprise information system. With an inter-enterprise information system, a corporation such as Target can effectively collaborate with different companies by sharing data, acquiring knowledge on recent developments between firms, and much more. It is considered wise to have an inter-enterprise information system as it ultimately benefits a corporation. Currently, Target does not publicly disclose whether or not they have an inter-enterprise IS of their own, but it is assumed that they do as they are a large successful corporation that understands how necessary such a system is when it comes to operating their business.
The steps required to complete the process:
1. Advertising and Promotion- To promote products and attract potential customers, Target runs campaigns using digital ads, email marketing, social media, and in-store displays.
2. Customer Browsing & Selection- In order to find products of interest, customers may browse online or visit Target shops.
3. Choosing Products and Adding Them to the Cart- In Store: Customers physically add things to their carts in-store. Online: Customers fill their online shopping carts with products.
4. Customer Checkout- In Store: Customers either use self-checkout terminals or proceed to checkout with cashiers. Online: Customers examine their cart after navigating to the checkout page.
5. Payment Processing- The customer completes the purchase after selecting a payment option. After processing the transaction, payment systems issue a receipt and deduct the proper amount.
6. Order Fulfillment- In-store: After making their purchases, customers exit right away.Online: The order is sent to fulfillment by Target's system, where the items are either sent to the customer's address or made ready for curbside or in-store pickup.
7. Delivery & Receipt (for online purchases)- The customer receives tracking information after the item is sent. The order and a printed or digital receipt are sent to the customer.
The sales process at Target is typically efficient, particularly now that online and in-store buying choices are integrated and customers can select their preferred method of payment. However, there are still some issues with the sales process that affect efficiency and customer satisfaction. One of these issues are order fulfillment delays, when Target’s online orders sometimes experience delays due to major sales events and peak times of the year. Another issue can be the checkout line, since they can get lengthy in busier stores, especially during busy hours which can put a negative impact on the in-store experience. Customers also report issues with the user experience on the Target app and website. They often experience glitches and delayed process times which makes it difficult to navigate the app and website.
An information system that supports this is Target’s Point Of Sale (POS) system. This system helps Target with its sales transactions at the point to which a sale transaction is completed. The system manages checkout processes, the payments and updating the inventory once those items are sold. The system is also responsible for generating receipts. The 5 components of the Target’s POS system are:
Hardware: The IS system uses physical devices in stores (POS terminals, the barcode scanners, and tablets that each employee has access to). Ex: MyCheckout mobile POS devices: Used by store employees to assist customers directly on the sales floor
Software:The POS system software combines everything sales-related activities and modules and by using this it provides more visible and functional services for both - online and in-person transactions. This includes, calculating totals, applying discounts, and lastly updating inventory after finalizing purchases. Ex:Google Cloud: Target uses Google Cloud for storewide design and logistical solutions.
Data: The POS system gathers data from online and in-store purchases, inventory levels, payment information, pricing. The collecting of this data helps with advertising and then of course with the promotion of sales because it is shared with the ERP for more insights.
Procedure: The POS follows a specific procedure for the whole sales process which allows for a better organization of past and current purchases. Scanning items, verifying prices, applying discounts, coupons, processing payments and handling returns or exchanges.
People: The POS system allows employees as well as customers to interact with the system. For customers it is at the self-checkout where the transactions are executed under their own supervision. For employees, it is mainly used by the cashiers who are also responsible for executing the sales transactions.
Customer Relationship Management relates to the relationship that a firm has with its customers. Through organizational systems, a business can better recall who a customer is, what they usually order, and how to better assist them.
Enterprise Resource Planning relates to the total organization of a business’s resources. Through ERP, a firm can better manage and track its resources such as inventory, employees, etc.
Lastly, Enterprise Application Integration is the development and implementation of applications that help a company better communicate and share their knowledge. This decreases the chances of information silos forming, as EAI creates a bridge of communication and knowledge between different sections of the company.
The major ERP vendors currently are the following as of 2024. These ERP vendors are the largest and most well-known in the industry.
Microsoft. Oracle. SAP
Target knows the value of Enterprise Resource Planning and how it benefits their business, as they use Oracle for their ERP needs. With Oracle, Target is able to better manage their resources and operate their business efficiently.
An inter-enterprise IS is an inter-enterprise information system. With an inter-enterprise information system, a corporation such as Target can effectively collaborate with different companies by sharing data, acquiring knowledge on recent developments between firms, and much more. It is considered wise to have an inter-enterprise information system as it ultimately benefits a corporation. Currently, Target does not publicly disclose whether or not they have an inter-enterprise IS of their own, but it is assumed that they do as they are a large successful corporation that understands how necessary such a system is when it comes to operating their business.
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